CSG HOLDING CO., LTD.
ANNUAL REPORT 2022
Chairman of the Board:
CHEN LIN
April 2023
Section I. Important Notice, Content and Paraphrase
Board 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 individual and joint legal responsibilities for the facticity, accuracy and completenessof the whole contents.Ms. Chen Lin, Chairman of the Board, 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 this Annual Report 2022 is true, accurate andcomplete.All directors were present at the meeting of the Board for deliberating the annual report of theCompany in person.The future plans, development strategies and other forward-looking statements mentioned in thisreport do not constitute a material commitment of the Company to investors. Investors and relevantparties should pay attention to investment risks, and understand the differences between plans,forecasts and commitments.The Company has described the risk factors and countermeasures of the Company's 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 deliberated and approved plan of profit distribution in the Board Meeting is distributing cashdividend of RMB 1.5 yuan (tax included) for every 10 shares to all shareholders based on3,070,692,107 shares of the total current share capital, 0 bonus shares (including tax) will be given,and no capital stock will be converted from provident fund. The actual amount of the cash dividenddistributed will be determined according to the total share capital on the registration date of theCompany's implementation of the profit distribution plan.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 ............................................................................ 10
Section IV. Corporate Governance .................................................................................................... 49
Section V. Environment and Social Responsibility ............................................................................ 71
Section VI. Important Events ............................................................................................................. 76
Section VII. Changes in Shares and Particulars about Shareholders ................................................. 95
Section VIII. Preferred shares .......................................................................................................... 103
Section IX. Bonds ............................................................................................................................ 104
Section X. Financial Report ............................................................................................................. 105
Documents Available for Reference
I. Text of the financial report carrying the signatures and seals of the legal representative, responsible person in charge of accountingand person in charge of financial institution;
II. Original of the Auditors’ Report carrying the seal of accounting firm and the signatures and seals of the certified publicaccountants;
III. All texts of the Company’s documents and original public notices disclosed in the website and papers appointed by CSRC in thereport period.
Paraphrase
Items
| Items | Refers to | Contents |
| Company, the Company, CSG or the Group | Refers to | CSG Holding Co., Ltd. |
| Foresea Life | Refers to | Foresea Life Insurance Co., Ltd. |
| Flat glass | Refers to | Including float glass, photovoltaic glass |
| Ultra-thin electronic glass | Refers to | The electronic glass with thickness between 0.1~1.1mm |
| AG glass | Refers to | Anti-glare glass |
Section II. Company Profile& Financial HighlightsI. Company information
Short form for A-share
| Short form for A-share | Southern Glass A | Short form for B-share | Southern Glass B |
| Code for A-share | 000012 | Code for B-share | 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 | ||
| Registered Add. | CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | ||
| Post Code | 518067 | ||
| Office Add. | CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. | ||
| Post Code | 518067 | ||
| Internet website | www.csgholding.com | ||
| securities@csgholding.com | |||
II. Person/Way to contact
| Secretary of the Board | Representative of security affairs | |
| Name | Chen Chunyan | Xu Lei |
| Contacts add. | 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. Information disclosure and preparation place
| The website of the stock exchange where the company discloses the annual report | www.szse.cn |
The name and website of the media wherethe company discloses the annual report
| The name and website of the media where the company discloses the annual report | Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and Juchao Website (www.cninfo.com.cn) |
| The place for preparation of the annual report | Office of the Board of Directors of the Company |
IV. Registration changes of the Company
| Unified social credit code: | 914403006188385775 |
| Changes of main business since listing (if applicable) | No changes |
| Previous changes for controlling shareholders (if applicable) | No changes |
V. Other relevant information
CPA firm engaged by the Company
| Name of CPA firm | Asia Pacific (Group) CPAs (special general partnership) |
| Offices add. for CPA firm | 2001, 20th Floor, Building 3, No. 16, Lize Road, Fengtai District, Beijing |
| Signing Accountants | Wang Donglan, Wei Jian |
Sponsor institute engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in the report period
□ Applicable √ Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or restatement on previous accounting data
√Yes □No
Reasons of retroactive adjustment or restatementchanges in accounting policies
| 2022 | 2021 | Changes over the previous year | 2020 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Operating income (RMB) | 15,198,706,998 | 13,629,033,650 | 13,672,372,823 | 11.16% | 10,671,253,445 | 10,671,253,445 |
| Net profit attributable to shareholders of the listed company (RMB) | 2,037,202,500 | 1,529,329,304 | 1,526,392,754 | 33.47% | 779,325,592 | 779,325,592 |
Net profit attributable toshareholders of the listedcompany after deductingnon-recurring gains andlosses (RMB)
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses (RMB) | 1,819,429,258 | 1,439,540,257 | 1,436,603,707 | 26.65% | 539,976,457 | 539,976,457 |
| Net cash flow arising from operating activities (RMB) | 1,957,123,231 | 3,902,084,385 | 3,899,648,030 | -49.81% | 2,730,619,636 | 2,730,619,636 |
| Basic earnings per share (RMB/Share) | 0.66 | 0.50 | 0.50 | 32% | 0.25 | 0.25 |
| Diluted earnings per share (RMB/Share) | 0.66 | 0.50 | 0.50 | 32% | 0.25 | 0.25 |
| Weighted average ROE | 16.78% | 14.13% | 14.11% | 2.67% | 7.91% | 7.91% |
| As at 31 Dec. 2022 | As at 31 Dec. 2021 | Changes over the end of the previous year | As at 31 Dec. 2020 | |||
| Before adjustment | After adjustment | After adjustment | Before adjustment | After adjustment | ||
| Total assets (RMB) | 25,904,013,306 | 19,939,364,510 | 19,935,902,125 | 29.94% | 17,882,914,898 | 17,882,914,898 |
| Net assets attributable to shareholders of the listed company (RMB) | 12,854,883,706 | 11,429,661,046 | 11,426,724,496 | 12.50% | 10,212,989,847 | 10,212,989,847 |
Reasons for changes in accounting policies and correction of accounting errorsThe Ministry of Finance issued a notice in December 2021 on the issuance of "Interpretation of Accounting Standards for BusinessEnterprises No. 15" (Finance and Accounting [2021] No. 35), which was implemented by the Company from January 1, 2022. Fortrial sales that occurred between the beginning of the financial statement presentation period and the date of implementation of thisinterpretation for the first time, the Company has made retrospective adjustments in accordance with the provisions of theinterpretation, and retroactively adjusted comparable period information.The lower of the Company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years isnegative, and the auditor's report of the previous year shows that the Company’s going concern ability is uncertain
□ Yes √ No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative
□ Yes √ No
VII. Accounting Data Differences under and Foreign Accounting Standards
1. Net Income and Equity Differences under CAS and IFRS
□ Applicable √ Not applicable
No such differences for the Report Period.
2. Net Income and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Report Period.
VIII. Main financial indexes by quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating income | 2,785,709,687 | 3,733,506,989 | 4,284,558,670 | 4,394,931,652 |
| Net profit attributable to shareholders of the listed company | 383,682,831 | 617,491,567 | 649,353,658 | 386,674,444 |
| Net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses | 336,240,261 | 551,354,559 | 593,590,206 | 338,244,232 |
| Net cash flow arising from operating activities | 102,057,062 | 800,746,059 | 715,807,686 | 338,512,424 |
Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financialindex disclosed in the Company’s quarterly report and semi-annual report or not
□Yes √ No
IX. Items and amounts of non-recurring gains and losses
√Applicable □ Not applicable
Unit: RMB
| Item | 2022 | 2021 | 2020 | Note |
| Gains/losses from the disposal of non-current asset (including the write-off that accrued for impairment of assets) | 15,213,059 | -1,493,248 | -1,158,984 | |
| 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) | 188,756,525 | 104,507,242 | 99,660,400 | |
| Profit and loss from debt restructuring | -285,025 | |||
| In addition to the effective hedging business related to the normal business of the company, the profit and loss from changes in fair value arising from holding trading financial assets and trading financial liabilities, as well as the investment income obtained from the disposal of trading financial assets, trading financial liabilities and available for sale financial assets | 31,567,854 | 17,132,672 | 2,654,504 | |
| Reversal of provision for impairment of receivables that have been individually tested for impairment | 6,389,385 | 1,429,653 | ||
| Loss and profit from external entrusted loan | 5,546,384 |
Profits and losses arising from changes in the fair value of investmentreal estate that are subsequently measured using the fair value model
| 179,911,200 | ||||
| Other non-operating income and expenditure except for the aforementioned items | 14,743,778 | -13,526,210 | -6,284,556 | |
| Less: Impact on income tax | 34,242,061 | 14,201,899 | 38,334,180 | |
| Impact on minority shareholders’ equity (post-tax) | 4,655,298 | 3,774,138 | 2,645,633 | |
| Total | 217,773,242 | 89,789,047 | 239,349,135 | -- |
Particulars about other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
It did not exist that other profit and loss items met the definition of non-recurring gains and losses.
Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for
Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses
□ Applicable √ Not applicable
It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure ofCompanies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring profit and loss items in thereport period.
Section III. Management Discussion and Analysis
I. Particulars about the industry the Company engages in during the report periodFlat glass industryFloat glass industry: In 2022, the float glass industry saw a decline in production capacity due to a weaker market. According to thestatistics of third-party industry information institutions, by the end of 2022, there were 241 float glass production lines in productionin China, with a total daily melting capacity of about 162,000 tons, a year-on-year decrease of 7.37%.The traditional application direction of float glass is mainly building materials, and its market demand change is positively related toinfrastructure investment and the prosperity of the real estate industry. According to the data from the National Bureau of Statistics,in 2022, the new construction area of domestic housing and the completed area declined by 39.4% and 15% year-on-yearrespectively. The adjustment of the real estate market resulted in a cyclical adjustment in the float glass market. However, with theprogressive implementation of the national “double carbon policy” over recent years, the proportion of green buildings has beencontinuously increasing, and that of energy-saving glass will demonstrate a significant rise. It can be expected that the deepprocessing rate of flat glass in the building materials field will further increase during the “14th Five-Year Plan” period, which willdrive the structural demand for deep-processing high-end float products to increase. With the development of the economy and thepromotion of people’s living standards, the need for improvement has been booming, and the demand for high-quality products suchas ultra-white float glass will see a sharp increase. The above-mentioned adjustment of product demand structure and the incrementaldemand for high-quality products will benefit the leading enterprises in the industry’s high-end market.Photovoltaic glass industry: With the booming development of the global new energy industry, the photovoltaic industry isstepping into a phase of rapid development. In 2022, due to the imbalance between supply and demand, the price of the photovoltaicindustrial chain has kept rising. However, at the end of the year, the release of the production capacity of silicon materials and slackseason of the industry led to a considerable drop in the prices of silicon materials, silicon wafers, and cells. The price fluctuation ofthe photovoltaic industrial chain has made a certain influence on the installation demand in the downstream photovoltaic market. In2022, multiple photovoltaic glass production lines were put into production, seeing a significant increase in the supply of glass,increasingly fierce competitions in the photovoltaic glass market, and an imbalanced supply-demand relationship in the market in ashort term. In 2022, the domestic price of photovoltaic glass remained at a middle or low level, with little fluctuation in general. Inaddition, the rise of natural gas saw a dramatic increase and that of dense soda ash maintained at a high level, leading to a constantrise in the production costs of photovoltaic glass.In 2022, the demand in the global photovoltaic industry was still powerful. According to the data from the China PhotovoltaicIndustry Association (“CPIA”), the global photovoltaic installed capacity was approximately 230GW in 2022, a year-on-yearincrease of 35.3%. With the orderly implementation of the domestic distributed photovoltaic policy of “whole-county promotion”and a large-scale wind power photovoltaic bases, the photovoltaic installed capacity in China has kept increasing. According to thestatistics of the National Energy Administration, the domestic photovoltaic installed capacity was approximately 87.41GW in 2022, ayear-on-year increase of 59.3%. In particular, the centralized photovoltaic installed capacity was approximately 36.29GW,accounting for around 41.5% of the installed capacity in China. The distributed photovoltaic installed capacity was approximately
51.11GW, consuming about 58.5% of the installed capacity in China. In 2022, the demand in overseas market has increased as well.Chinese total export of photovoltaic products (silicon wafers, cells, and modules) saw a year-on-year growth of 80.3%, and European
market showed the largest increase. The Russia-Ukraine conflict in 2022 resulted in a surge in European electricity prices. MajorEuropean countries have made an increase adjustment in the photovoltaic installation plan. According to the statistics of the SolarPower Europe, in 2022, the photovoltaic installed capacity of the 27 countries in the EU was 41.4GW, a year-on-year growth of 47%.With the constant advancement of photovoltaic module technologies, the photovoltaic glass will embrace a new development trend.The production of photovoltaic rolled glass has demonstrated the development trend of larger kilns, wider plates, thinner thickness,and larger glass size. Besides, the utilization rate of double-glass modules has seen a constant increase. At present, the kiln scale ofphotovoltaic glass has been sharply increased, most of which is 1000t/d and above; each proposed kiln is mainly with at least fivelines; the plate of photovoltaic glass has been widened with a width of 1.3m; the double-glass modules mainly adopt glass with athickness of 2.0mm in the cover plates and back panels, and some enterprises have started to use ultra-thin glass with a thickness of
1.6mm; in 2022, the demand for large-size modules of 182mm and 210mm was rapidly increased. According to the statistics of CPIA（CHINA PHOTOVOLTAIC INDUSTRY ASSOCIATION）, the proportion of silicon wafers with the size of 182mm and 210mmhas reached 82.8% in 2022, and the glass with a plate width of 1,128mm and 1,297mm emerged as the mainstream in the market.Architectural glass industryThe architectural glass business is to further process the original float glass sheet to manufacture energy-saving building glassproducts with both safety and aesthetic effects in order to improve the energy-saving and safety performance of buildings, as well asthe visual aesthetic effects. Building energy-saving glass has made a significant contribution to energy saving in the process ofbuilding use. The penetration rate in developed countries in Europe and the United States has already exceeded 80%, but the overallpenetration rate in China is still low. The total number of buildings in China is huge. In order to cope with the pressure of globalwarming, to achieve the goals of “Carbon Peaking in 2030 and Carbon Neutrality in 2060”, and to reduce building energyconsumption and carbon emissions, it is imperative to reduce the energy consumption and carbon emissions of buildings, tovigorously develop green buildings, and to carry out energy-saving renovation of existing buildings. According to the Action Plan forPromoting the Establishment of Green Buildings issued by the Ministry of Housing and Urban-Rural Development and the Ministryof Industry and Information Technology, as well as the national Action Plan for Carbon Peaking Before 2030, Comprehensive WorkPlan for Energy Conservation and Emission Reduction during the 14th Five-Year Plan, and other guidance documents’ requirements,100% of the newly-built urban building should meet the green building standards in 2025 (about 50% in 2020). It is expected that thearchitectural glass business will gain significant development opportunities during the “14th Five-Year Plan” period. In addition,with the gradual improvement of domestic social consumption level in recent years, building energy conservation, safety standards,and quality requirements have been continuously improved. In practice, the bad practice of winning the bid by the lowest price forconstruction projects has been initially reversed, and the quality and influence of “Made in China” have been increasingly recognizedaround the world, which will bring broader development space to advantageous enterprises that attach importance to product qualityand technological innovation, as well as stable industrial chain and supply chain.Electronic glass and display industryElectronic glassElectronic glass, with its unique performance advantages such as high transmittance, high strength in ultra-thin state, reliable andstable weather resistance, and processing convenience, is an indispensable material for cover glass and touch control plate ofintelligent display interactive application terminals such as smartphones, tablets, and computers. And it is developing rapidly with theintelligent interactive display industry. With the popularization of information and communication technologies such as 5G and the
development of the mobile Internet, the production and lifestyle of human society are gradually developing into a new form of highintegration of people, machines, things, and information, in which everything is interconnected, driving the demand for intelligentequipment to increase rapidly and significantly. In recent years, in addition to the rapid popularization of mobile Internet terminalssuch as smartphones, tablets, and computers, the vigorous development of smart homes, new energy vehicles, smart factories, smartbusiness displays, advanced education, medical care, conferences, self-service, and other industries has brought about the incrementaldemand for human-computer interaction equipment, which provides a broader market prospect and market space for the electronicglass industry, and also provides a market opportunity for leapfrogging development to upstream material manufacturers with leadingtechnological innovation capability and benign operation.DisplayWith the rapid development of new energy vehicles and intelligent vehicles, the demand for vehicle display panels has becomepowerful. According to the latest research report from the industrial research data on 8 February 2023, the demand for vehicle displaypanels will keep increasing in 2023. The total shipment volume is estimated to exceed 200 million, with an average of over twovehicle display panels per car. According to the data from Omdia, the shipment volume of vehicle display panels is expected toachieve 253 million in 2026, with a compound growth rate of 6.7% from 2021 to 2026. The intelligent vehicle industry has a gooddevelopment prospect.Solar energy industry
At present, the new development ideology centred on “Green Development” has gradually become the consensus of all countries inthe world. Major economies in the world have successively proposed “Carbon Neutrality” timetables. China has also made a solemncommitment of “Carbon Peaking in 2030 and Carbon Neutrality in 2060” to the world. The transformation of the global energystructure has begun to accelerate, and photovoltaic energy has become an important engine to undertake energy transformation withits significant advantages such as cleanliness, safety, and economy. Driven by favourable factors such as the continuous decline inthe cost of photovoltaic power generation and the global green recovery, the photovoltaic installed capacity around the world willcontinue to grow rapidly, and the solar photovoltaic industry will have huge development potential and industry prospects in thefuture.The photovoltaic new energy industry is a strategic emerging industry in China, acting as an essential guarantee for the country torealize energy safety and green development. After over twenty years of development, the industrial position has developed fromclean energy to “the most economical” energy today. Driven by the global climate environment requirements of “carbon peaking andcarbon neutrality”, photovoltaic power generation will progressively become the mainstay of the energy structure. With the ever-changing innovation of photovoltaic industrial technologies, photovoltaic power generation will comprehensively move towards anera of parity price. Most areas in China have achieved parity or even lower than the coal-fired benchmark electricity price. Under thiscircumstance, the market share of the photovoltaic industry will further concentrate on the enterprises with core advantages,including technologies, scales, and supply chain management. Due to the significant advantages such as cleanliness, safety, andinexhaustibility, solar energy sees a limitless and promising development prospect. In 2022, according to the statistics of InfoLinkConsulting’s supply and demand database, the global photovoltaic supply volume was 278GW, with an annual growth rate of 56%.The total demand in 2023 is estimated to be 338-398GW. According to the relevant information from the National EnergyAdministration, the domestic photovoltaic industry has made considerable achievements with new breakthroughs. First, the annualinstalled capacity of photovoltaic power generation reached 87.41GW, a year-on-year increase of 60%, which hit another record highand emerged as the type of power source with the largest scale of installation and the fastest growth rate. Second, the annual installed
capacity of distributed photovoltaics reached 51.11GW, a year-on-year increase of 75%, consuming 60% of the total installationscale of photovoltaic power generation, emerging as the primary force for new photovoltaic installation, and demonstrating a newpattern that divided the domain into three, referring to the centralized power stations, commercial and industrial distributedphotovoltaics, and household photovoltaics. Third, the overall installed capacity of photovoltaic power generation surpassed 390GW,becoming the power with the third largest installation scale after the thermal power and the hydroelectricity. Fourth, the annualamount of photovoltaic power generation reached 425 billion kWh, having increased by approximately 100 billion kWh, taking up30% of the total new power generation capacity. The effect of renewable energy substitution has become increasingly obvious, actingas a strong support for green and low-carbon transformation of energy. Fifth, the export of photovoltaic products exceeded USD50billion for the first time and the year-on-year increase was over 80%, emerging as a major highlight of China’s foreign trade exportsand playing a significant role in stabilizing investment, growth, employment, and foreign trade. The huge incremental demand in themarket will spur and drive the constant and rapid increase in all respects of the photovoltaic industry.II. Main business of the Company during the report periodCSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its productsand technologies are well-known at home and abroad. Its main business includes R&D, manufacturing and sales of high-quality floatglass, architectural glass, photovoltaic glass, new materials and information display products such as ultra-thin electronic glass anddisplay devices, as well as renewable energy products such as silicon materials, photovoltaic cells and modules, and it provides one-stop services for photovoltaic power station project development, construction, operation and maintenance, etc.Flat glass businessThe flat glass business of CSG includes float glass and photovoltaic glass. The production mode, business strategy, technicalrequirements and development direction of the two businesses have similarities and considerable differences due to the difference ofindustrial chain environment, industry development stage and policy environment.In the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang andXianning, and has quartz sand raw material processing and production bases in Jiangyou, Sichuan Province, Qingyuan, GuangdongProvince and Fengyang, Anhui Province. Its products that cover high-quality float glass and ultra-white float glass with variousthicknesses and specifications of 1.6-25 mm are trusted by customers because of their quality. CSG float glass products are all high-end products that can be directly used for downstream deep processing, and the proportion of differentiated glass products withspecial specifications and special application scenarios such as ultra-white, ultra-thin, and ultra-thick is large, which are widely usedin high-end building curtain walls, decoration and furniture, mirrors, car windshields, scanners and copiers, home appliance panels,display protection and other application fields with high requirements on glass quality. CSG has established long-term and stablebusiness cooperation with many well-known processing enterprises.The profit level of the float glass business is generally positively correlated with the level of real estate new construction andcompletion data, and is also affected by multiple factors such as current energy, raw material prices, product structure, and enterprisemanagement level. Differentiated glass products have higher added value due to specific application scenarios, higher productionprocess difficulties, stable demand, and relatively proactive pricing by manufacturers. To cope with the downward pressure of themarket, the Company focuses on improving management efficiency, improving the level of lean production of conventional products,firmly implementing the differentiated competition strategy, carefully cultivating and developing differentiated product markets, and
continuously increasing the proportion of high-value-added product sales, such as ultra-white products, so as to continuouslyconsolidate and enhance the industry competitiveness of the Company’s float glass business.In 2022, the new construction and completion of the real estate industry dropped significantly compared with the same period inrecent years, the domestic downstream architectural glass market demand slowed down in stages, and the price of float glass declined.Meanwhile, affected by external environment, Russia Ukraine conflict, inflation and other factors, the prices of raw materials andfuels rose sharply, and the profit level of float glass dropped significantly compared with the previous year. However, under themacro background of “Steady Growth” of the national economy and the realization of “dual carbon” goals, the demand for high-quality differentiated products and energy-saving products remains comparatively stable.In the field of photovoltaic glass, CSG has taken the lead in entering the field of photovoltaic glass manufacturing in China since2005. Based on independent research and development, the Company has formed a full closed-loop production capacity fromphotovoltaic glass original sheet production to deep processing. As at the end of 2022, the Company has six photovoltaic rolled glassoriginal sheet production lines and complementary photovoltaic glass deep processing production lines in Dongguan, Wujiang,Fengyang and Xianning, with an annual output of about 2 million tons of photovoltaic rolled glass original sheets, and its productscover deep-processing products with a variety of thicknesses of 1.6-4mm. The accumulation of more than ten years of photovoltaicglass production experience has enabled CSG to accumulate a solid foundation in key equipment and technologies such as kilns,calendering, and deep processing. These accumulated technologies and experience have been released in this round of theCompany’s photovoltaic glass production capacity enhancement.The Company is firmly optimistic about the long-term development of the photovoltaic new energy industry, seizes the goldenopportunity of industrial development, aims at the first echelon of the industry, and makes up for the shortcomings of the Group’sphotovoltaic glass business production capacity and large-scale layout. The Company is building four photovoltaic glass productionkilns and complementary processing lines with a daily melting capacity of 1,200 tons in Fengyang and one photovoltaic glassproduction line and complementary processing line with a daily melting capacity of 1,200 tons in Xianning. Among them, FengyangNo. 1 kiln has been ignited in May 2022, Fengyang No. 2 kiln has been ignited in August 2022, Fengyang No. 3 kiln has been ignitedin December 2022, the Xianning kiln has been ignited in October 2022, the Dongguan photovoltaic glass kiln was upgraded asplanned in the first quarter of 2022 and was resumed for ignition in August 2022, and the construction of the remaining productionlines is progressing in an orderly manner as planned. Moreover, the Company plans to ignite Fengyang No.4 kiln and put it intooperation in 2023. As at the end of 2022, the production capacity scale of the Company had successfully ranked among the top threein the industry. Under the background of carbon peaking and carbon neutrality, the photovoltaic glass business will become the newchampion business of CSG.The current photovoltaic industry is in rapid development. From the analysis of the current policy environment and marketdevelopment trend, photovoltaic power generation has a broad space for development in the future, and the development of theglobal market may accelerate. Although the concentrated release of new capacity of photovoltaic glass in recent years may lead to aphased mismatch of supply and demand in the market and cause market price fluctuations, with the rapid development of the globalmarket and the optimization and adjustment of the domestic industrial structure, the industry will still return to the track of healthydevelopment. The Company will make every effort to promote project construction, improve the production capacity of ultra-thinphotovoltaic glass and photovoltaic glazed back glass, and consolidate its competitive advantage in the industry. Besides, theCompany will strengthen long-term strategic cooperation with industry-leading companies to further enhance the marketcompetitiveness of CSG.
Architectural glass businessAs one of the largest high-end building energy-saving glass suppliers in China, CSG integrates R&D and design, technical consulting,production and manufacturing, and marketing and service in the architectural glass business. It always aims to “build green energy-saving products and create quality life” and forms a CSG brand image with quality, service and continuous R&D as its corecompetitiveness, which is strongly competitive in foreign markets as well.The Company has already built six deep processing bases of energy-saving glass in Tianjin, Dongguan, Xianning, Wujiang, Chengduand Zhaoqing. Up to now, the Company has formed an annual production capacity of over 20 million square meters for coatedinsulating glass and over 60 million square meters for coated glass. As the new bases are completed and put into production step bystep and the expansion capacity of existing bases is gradually released in the future, the product diversification and capacity scale ofcoated insulating glass and coated glass will see continuous and steady growth, which will serve as an adequate guarantee for thecomprehensive and steady improvement of product competitiveness, market share and service.CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service, marketing, R&D andmanufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and service network formed domesticand overseas offices, to meet the personalized needs of domestic and foreign customers and construction projects. In 2017, CSG’slow-E coated glass was awarded the title of Single Champion Product by the Ministry of Industry and Information Technology, and itpassed the review again in 2020, which fully proves the leading position of CSG’s architectural glass in the industry. The Companyhas the world’s leading glass deep processing equipment and testing equipment, and its products cover all kinds of architectural andconstruction glass. The R&D and application level of the Company’s coating technology keeps pace with the world, and its high-endproduct technology is internationally leading. Following the double silver coated glass products, the Company has successivelydeveloped multi-silver high-performance energy-saving glass and multi-function energy-saving glass products featuring furtherimproved sunshade and heat insulation performance and energy-saving contribution. All deep processing bases of the Company areable to produce and process multi-silver high-performance energy-saving glass. Under the background of the “dual carbon” goals andthe national green and energy-saving building requirements, the market demand for multi-silver has further expanded. After years ofmarket testing and relying on the Company’s advanced coating technology, its high performance and stability have been wellreceived by the market, CSG’s multi-silver products have become the benchmark in the domestic multi-silver product market, andhigh-quality, energy-saving, environmentally friendly LOW-E insulating glass continues to lead the domestic high-end market share.The Company has always adhered to the intelligent transformation and digital transformation as the key increment of thedevelopment 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.The Company’s quality management system for engineering and architectural glass has been respectively approved by organizationsof UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enablesCSG has an advantage in the international tendering and bidding. Since 1988, CSG’s engineers and technicians have beencontinuously participating in the formulation and compilation of various national standards and industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widely used in landmark buildings such as major city CBDs andtransportation hubs at home and abroad, which are too numerous to mention. With safe, energy-saving and high-end quality, CSGglass is shortlisted for several landmark projects, including some representative projects such as the National Information and
Finance Building, CZBank Head Office Building, Zhangjiang Gate Of Science, JD.COM Headquarters Phase III, and Linyi OlympicSports Centre, as well as some early projects using CSG products (Beijing Capital International Airport, Beijing Daxing InternationalAirport, China National Convention Centre and the capital CBD area).Electronic glass and display businessElectronic glassAfter more than a decade of hard work, CSG’s electronic glass business has always focused on increasing investment in R&D,breaking through high-end market barriers with independent intellectual property rights and independent innovation, and firmlyfollowing the development route of product upgrades and iterations to accelerate import substitution. In 2022, the Company’selectronic glass business continued to develop. Its four subsidiaries, Hebei Panel, Yichang Photoelectric, Qingyuan New Energy-Saving Materials and Xianning Photoelectric, continued to actively implement product upgrading and market upgrading in theapplication fields of intelligent electronic terminals, touch components, vehicle window glass, vehicle-mounted display, industrialcontrol and commercial display, safeguard facility and smart home. Therefore, the market share and brand influence of theCompany’s medium-alumina and high-alumina electronic glass products were improved greatly. Rich product structure, reliabledelivery guarantee and strong technical innovation help the Company’s electronic glass business maintain its dominant position inthe fierce market competition. In 2022, the Company’s high aluminium second generation (KK6-P) lithium aluminosilicate electronicglass products continued to expand the market of new customers, and successfully equipped OLED screens to achieve abreakthrough in high-end screen applications, marking that CSG’s electronic glass business has firmly established the supply chainsystem of domestic high-end customers. At the same time, the Company continued to promote product technology upgrading,developed new products for window glass of new energy vehicles, and successfully passed customer certification. The future marketis worth looking forward to. The Company continued to strengthen the research and development of the third generation of high-aluminium and glass ceramics, and achieved good results in end-customer verification. In addition, the Qingyuan CSG Phase II “OneKiln and Two Lines” project is operating well, which has enhanced the overall profitability of electronic glass and furtherconsolidated and strengthened CSG’s competitive strength in the domestic electronic glass field. The ultra-thin electronic glassproduction line with a daily melting capacity of 110 tons invested by Hebei Panel Glass was ignited in October 2022, and thecomplementary R&D centre has been put into use. At present, CSG electronic glass has fully covered electronic glass products inhigh, medium and low-end application scenarios and formed a more solid market competition foundation. CSG has long beencommitted to becoming the industry’s leading electronic glass material solution provider, and it will continue to develop glass-basedprotective materials with higher strength and competitiveness in the field of touch display, develop human-computer interactioninterface materials meeting the requirements of material interconnection in the fields of smart home, vehicle display and advancedmedical, and develop revolutionary alternative materials in the fields of new-energy vehicles and security.DisplayIn the touch display field, CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating, 3A coverplate processing and fine pattern lithography processing, to touch display modules. The main business includes optical coatingmaterials, vehicle-mounted 3A cover plates and vehicle-mounted touch panels. Among them, the optical coating material segmentincludes the two business types of ITO conductive glass and ITO conductive film, and the products are positioned at middle andhigh-end customers at home and abroad and are concentrated in differentiated high-value-added ones. The Company placed emphasison the development of new products in new application fields in 2022. Currently, many products are in the stage of small-batchproduction. CSG continues to be optimistic about the development prospect of the intelligent vehicle industry. At present, CSG has
mastered the production technology of core products such as vehicle-mounted AG glass, vehicle-mounted multi-functional 3A coverplate and vehicle-mounted touch sensor supporting the vehicle display screen. The Company will continue to increase the investmentlayout in the field of automotive electronics in the future. In the second half of 2022, the Company’s vehicle-mounted 3A cover plateentered the world’s leading customer supply chain of vehicle display panels, and the production and sales volume continued to climband hit a record high.Solar energy and other businessesCSG is one of the enterprises that firstly enter the field of photovoltaic product manufacturing in China. After more than ten years ofconstruction, operation, technological transformation and upgrading, CSG has created a complete industrial chain covering theoperation of high-purity crystalline silicon materials, silicon wafers, cells, modules and photovoltaic power stations. The businessstructure of the entire industry chain enables the Company to have a certain ability to resist risks, be sensitive to the industry, and beable to respond quickly to market changes in the industry. After years of technological accumulation in the photovoltaic sector, CSGhas built three national-level scientific research and technology platforms (the “National and Local Joint Engineering Laboratory forSemiconductor Silicon Material Preparation Technology” recognized by the National Development and Reform Commission,“National Enterprise Technology Centre” and “CNAS Accredited Laboratory”, seven provincial-level scientific research andtechnology platforms (“Hubei Semiconductor Silicon Preparation Technology Project Laboratory” and “Hubei EnterpriseTechnology Centre”; “Hubei Silicon Material Engineering Technology Research Centre” recognized by the Provincial Department ofScience and Technology, “Hubei Semiconductor Silicon Material Technology International Cooperation Base”, “Hubei SiliconMaterial Enterprise-School Joint Innovation Centre”, “Guangdong Solar Photovoltaic Cell and Component Engineering TechnologyResearch Centre” and “Guangdong Enterprise Technology Centre”).In 2022, the global terminal installation demand exceeded expectations, while the upstream production capacity of high-puritycrystalline silicon was limited, and the severe reality of insufficient supply ran through the whole year of 2022. Yichang CSGPolysilicon Co., Ltd., a subsidiary of the Solar Energy Business Department of CSG, fully implemented the strategic decisions andarrangements of the Group’s management, unswervingly carried out the technical transformation and resumption of high-puritycrystalline silicon production lines and the transformation and upgrading of the silicon wafer business, and achieved good economicbenefits. To further enhance competitiveness and increase market share, the Company launched the 50,000-ton high-purity crystallinesilicon project in Haixi Prefecture, Qinghai Province on the basis of the development of the existing photovoltaic industry in 2022.As a public listed company with extensive social influence and sense of social responsibility, CSG has always adhered to theconcepts of energy conservation, environmental protection and people-oriented, and contributed to the construction of anenvironment-friendly, resource-saving and sustainable human future.III. Core competitiveness analysisCSG, one of the most competitive and influential large-scale enterprises in China’s glass industry and new energy industry, iscommitted to the development of energy conservation, renewable energy, and the new material industry. After nearly 40 years ofdevelopment and accumulation, the Company has gradually formed a comprehensive competitive advantage in terms of products andbrands, technological R&D, industrial chains and layout, talent teams, and green development.
1. Product and brand advantages
“CSG” is a famous domestic brand of energy-saving glass, ultra-thin electronic glass & displays, and solar photovoltaic products.CSG’s products and technology are well-known at home and abroad. The trademarks “南玻” and “SG” held by the Company areboth “Famous Trademark of China”. The Company has been listed in the “Top 50 Building Materials Enterprises in China” and the“Preferred Brand of Architectural Glass” in the door, window and curtain wall industry for many consecutive years. In 2018, "CSG"brand was recognized by the United Nations Industrial Development Organization as the fourth batch of "International ReputationBrand". Moreover, CSG’s low-E coated glass and ultra-thin electronic glass were recognized by the Ministry of Industry andInformation Technology as Single Champion Products in the Manufacturing Industry, which made CSG the only manufacturer in thedomestic glass industry having two Single Champion Products at one time. In 2022, the Company was awarded the titles of “Top 10National Leading Enterprise in the Construction Material Industry with Technological Breakthroughs” and “Shenzhen Top 500Enterprises for 2022” (ranking No. 96).
2. Technology research and development advantages
The Company has always valued technological R&D and adopted independent R&D as its foundation since its establishment. As of31 December 2022, the Company has had a total of 19 national high-tech enterprises, 2 national-level single champion products inthe manufacturing industry, 1 national-level engineering laboratory, 1 national-level enterprise technology centre, 4 nationalenterprises with intellectual property advantages, 6 national-level specialized, sophisticated, distinctive, and innovative enterprises(“Little Giants”), 1 provincial-level academician workstation, 1 provincial-level doctoral workstation, 12 provincial-level enterprisetechnology centres, 5 provincial-level engineering technology research centres, 4 provincial-level demonstration enterprises forintellectual property construction, 7 provincial-level “Little Giants”, 1 provincial-level government quality award, 9 provincial-levelscientific and technological progress awards and 3 provincial-level patent awards. As of 31 December 2022, the Company hasapplied for a total of 2,718 patents, including 1,101 invention patents, 1,607 utility model patents, and 10 design patents. Moreover,the Company has had a total of 1,972 authorized patents, including 374 invention patents, 1,588 utility model patents, and 10 designpatents.
3. Industrial chain and layout advantages
The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar photovoltaic glass.With the continuous improvement of the technological level of each process of the industrial chains, the Company’s industrialadvantage becomes obvious; meanwhile, the Company possesses a complete industry layout, with production bases located in thePearl River Delta in South China, Beijing-Tianjin-Hebei region in North China, the Yangtze River Delta in East China, the Chengdu-Chongqing region in Southwest China, the Hubei region in Central China, and the Shaanxi-Qinghai region in Northwest China.
4. Talent team advantages
The Company’s advantage in talent teams is mainly reflected in two aspects: On the one hand, the Company has established a strongR&D team and a powerful R&D system. Through the construction of the core technical team, continuous R&D investment, andabundant 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, and tostrengthen basic research; on the other hand, an excellent and stable management team is one of the most fundamental guarantees forthe Company’s rapid and stable development. The Company has formed a good echelon training mechanism for professionalmanagers. At present, the Company’s senior management team has comparative advantages in multiple aspects, such as academicbackground, 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 of relevantpersonnel to better cope with carbon-related affairs. Meanwhile, the Company has promoted product carbon footprint certification asa preparation for downstream market expansion of green and low-carbon products. Furthermore, Hebei CSG Glass Co., Ltd., asubsidiary of the Company and an outstanding and benchmark enterprise in the flat glass industry, recognized as a pilot enterprise forcarbon peaking in the construction material industry, has made efforts to explore and implement the action plans and effective routesof carbon peaking in the industry. Relevant subsidiaries of the Company have actively gotten involved in the regional pilot market ofcarbon transactions to strive for a calculation method of carbon quota matching the real situation of the Company’s production. In2022, the Company was included in the list of enterprises subject to carbon emission control and the overall quota quantity surpassedthe actual emissions. As a pioneer of green development in the industry, the Company has won itself abundant room for development.IV. Main business business analysis
1. Overview
In 2022, in the face of increasing uncertainties in the global economy, continuous increases of the domestic “triple pressure”, impactsof multiple factors beyond expectations, and other complicated situations, the Chinese people made concerted effort to enable thesteady progress of the domestic economy, while the 20th National Congress of the Communist Party of China was successfullyconvened.According to the data released by the National Bureau of statistics, in 2022, China’s national economy made steady progress. TheGDP totalled RMB 121.02 trillion, increasing by 3% year-on-year, the investment in fixed assets (excluding farmers) totalled RMB
57.21 trillion, increasing by 5.1% year-on-year, the investment in real estate development totalled RMB 13.29 trillion, decreasing by10% year-on-year, and the floor space of buildings completed was 862 million square meters, decreasing by 15.0% year-on-year.Facing the complicated political and economic environments at home and abroad, as well as the increasing pressure of marketcompetition, CSG, under the correct leadership of the Board of Directors, adopts the goal of becoming a world-class enterprise, andfirmly takes the road of high-quality development. By comprehensively improving its capacity of lean production, activelypromoting project construction, optimizing its industrial layout, consolidating resource reserves, continuously implementingdifferentiated operation, and improving the strength in intelligent manufacturing, the Company strengthens its core competitivenessboth internally and externally. In 2022, the Company withstood the test of cyclical fluctuations in the industry, and seized the marketopportunity of high-purity crystalline silicon. As a result, its annual operating results achieved a relatively large year-on-year growth.In 2022, the Company’s revenue totalled RMB 15.199 billion, increasing by 11 % year-on-year, and its net profit reached RMB
2.043 billion, increasing by 31% year-on-year; meanwhile, the Company’s net profit attributable to shareholders of the listedcompany was RMB 2.037 billion, increasing by 33% year-on-year.I. Operation of each industry of the GroupIn recent years, CSG has made a forward-looking layout, firmly promoted the adjustment of its business structure duringdevelopment, strengthened its competitive advantage in traditional energy-saving construction materials, further adjusted its productstructure, increased the percentage of differentiated products, and accelerated the development of its new energy and new materialindustrial sectors. The Company’s advantage in the diversified industry layout became prominent in 2022, the strong support of itssolar energy business and architectural glass business effectively diluting the impact of cyclical fluctuations in traditional businesses
such as float business. In 2022, the Company’s revenue and net profit in the glass business (float glass, photovoltaic glass andarchitectural glass) totalled RMB 10.057 billion and RMB 1.04 billion, respectively.Float glass: Facing the severe market situation, the Company has laid out arrangements ahead of schedule and firmly followed theroute of high-end differentiated products. As the sales and the market share of its ultra-white glass have further increased, and thehigh-end brand of CSG’s ultra-white “Blue Diamond” series becomes mature, the Company has become a leading enterprise in thisindustrial segment; moreover, the proportion of the Company’s high-value-added differentiated products continues to increase, andthe market share of the Company in the segment of high-grade float glass stays among the top. Furthermore, the Company enhancedthe engagement of new suppliers and coordinated and organized strategic reserve procurement of bulk raw materials to effectivelyhedge against rising procurement costs; it has established a mineral resource management centre to comprehensively implement thestrategic task of expanding mineral resources reserves; and it strengthened the lean control of the entire production process, as theyield continued to rise steadily. In 2022, the Company’s revenue and net profit from the business of float glass decreased by 22% and76% year-on-year, respectively.Photovoltaic glass: The Company maintained the industry-leading role in terms of production capacity, quality and comprehensivemanufacturing yield of ultra-thin photovoltaic glass products below 2mm. In 2022, the global photovoltaic market was generallyon the up. The growth of domestic and overseas demand for photovoltaic modules stimulated the demand in the photovoltaic glassmarket. However, due to the centralized release of the incremental capacity of glass production, signs of supply and demandmismatches in the short term were spotted, limiting the domestic prices of photovoltaic glass to a middle or low level in 2022.Currently, policies have been introduced worldwide to encourage the development of the photovoltaic industry. With the release ofthe production capacity of silicon materials, the installed photovoltaic capacity is expected to increase continuously in the future.With the gradual achievement of the supply-demand balance of photovoltaic glass, the prices of photovoltaic glass are expected toreturn to a normal and reasonable level. The Company firmly takes an optimistic attitude toward the long-term development of thephotovoltaic new energy industry, and takes multiple measures to increase the market competitiveness of its products. Along with theprogress in the new photovoltaic glass projects in Fengyang of Anhui and Beihai of Guangxi, the market share of the Company’sphotovoltaic glass business is expected to achieve further increases; the Company also tightly follows the latest trends of the marketto facilitate the R&D and promotion of new products.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 of domesticand foreign customers and construction projects. As the Company’s share in the domestic high-end construction market continues torise, it also maintains a leading position in market scale and profitability in the field of deep processing within the same industry.In 2022, influenced by domestic and international environments, the pressure on sales and delivery of the Company increased year-on-year, and the pressure on financing and payment collection of domestic real estate companies also increased. These factors, incombination with the strengthened requirements of the Company for risk control and management, resulted in only a slight year-on-year increase in revenue of the architectural glass business. However, by refining the market layout, the Company continued toincrease the signing of high-quality projects, which resulted in the drastic year-on-year increase of the order compounding degree. Italso increased the proportion of high-quality small and medium-sized orders, such as short-flat-fast orders, and enhanced cooperationin support projects for people’s livelihood. Relying on the continuous strategy to “Reduce Costs and Increase Efficiency”, leanoperation, and the Group’s advantage in industrial chains, the architectural glass business achieved a steady growth in its operating
profit. In 2022, The revenue of the architectural glass business was at the same level as that of the previous year and its net profitincreased by 408% year-on-year.Meanwhile, focusing on the future, the Company seizes the historic opportunity of the acceleration of green building construction,accelerates the completion of the layout of production capacity optimization and production expansion for all bases of architecturalglass, as well as the construction of new bases, and improves the automation and informatization level of its production lines,continuously improving the efficiency of equipment production. In 2022, the Company’s Dongguan Base successfully completed theoptimization and restructuring of its production lines and achieved the diversification of its product structure. Meanwhile, relying onthe geographical advantage of the Greater Bay Area and the repositioned market goal of high-quality energy-saving glass products, itfocused its business on the Guangdong-Hong Kong-Macao region and overseas markets. As CSG’s first factory of intelligentproduction of architectural glass, Zhaoqing Base achieved a steady growth in production capacity in 2022 after two years ofinfrastructure construction and human-machine running-in. After the synergistic effect between the base and the Dongguan Base wasformed, the goal of production capacity expansion and product complementation was achieved. Taking the advantage of the marketdemand in the Beijing-Tianjin-Hebei region and Northeast China, the Company’s Tianjin Base successfully released the productioncapacity of its production expansion projects in 2022, so as to make up for its insufficient production capacity. Additionally, theproject of Xi’an Architectural Glass Base is expected to achieve general completion in 2023. As the projects of new construction andproduction expansion are gradually completed and put into operation, CSG’s production capacity for architectural glass will befurther released. This, in combination with the Company’s product diversification to conform with the market demand, can lead tothe continuous improvement of the market competitiveness and service capability of CSG regarding architectural glass, so as toincrease the market share of its architectural glass business.As the “14th Five-Year Plan” has proposed higher requirements for building energy conservation, CSG actively responded to therequirements of the policy on building energy conservation and building emission reduction by taking the lead in the R&D of energy-saving products. A series of energy-saving products that could meet higher standards for energy conservation were developed, suchas the multiple-silver low-E glass series and the thermal insulation products. The Company also actively participated in theformulation and revision of a series of industry or group standards to promote the advancement of the construction industry towardthe “dual carbon” goals. Furthermore, these products were widely applied to many buildings at home and abroad, such as in theMiddle East, America, Europe, Australia and the Southeast Asia. The applications were seen in venues for Beijing 2022 WinterOlympics, China National Convention Centre, the venue for Canton Fair, the Hong Kong University of Science and Technology(Guangzhou), the Galaxy Albemarle Twin Towers (Shenzhen), Taiping Financial Industry Port (Sanya), One Bangkok (Thailand),New Alamein (Egypt) and Victoria Cross Tower. In the face of the promising development prospects and the current fierce marketcompetition, CSG implemented multiple measures, such as optimizing customer service, improving product quality, enhancing brandpromotion and expanding sales channels, for its multi-silver low-E glass business and hit a record high in both the quantity of signedorders and sales in 2022. The development and production of the Company’s multi-silver low-E glass series is an innovative andworld-leading undertaking, which is of great significance to the facilitation of building energy conservation and the achievement ofthe “dual carbon” goals. Improving the energy efficiency of buildings is an important route to achieve the “dual carbon” goals. As thenational standard General Code for Energy Conservation and Renewable Energy Application in Buildings (GB55015-2021) releasedby the Ministry of Housing and Urban-Rural Development stipulates that the average design level of energy consumption in newlyconstructed residential buildings and public buildings shall be further reduced by 30% and 20% respectively, and the requirementsfor the heat transfer coefficient of energy-saving glass shall be further enhanced, the applications of low-E coated glass are expectedto draw more attention and broader market demand for CSG’s multi-silver low-E coated glass is expected to be seen. The innovation
and R&D of energy-saving products with higher energy efficiency is important to the energy conservation and emission reduction ofnewly constructed buildings and vital to the energy-conservation-oriented transformation of existing buildings. In order to reducecarbon emissions of buildings, CSG has developed a series of energy-saving products, building heat insulation products and BIPVproducts with higher energy efficiency. More than 20% of the architectural glass business comes from its new products. In order tomeet the market demand for product innovation, CSG will continue to conduct innovation, so as to provide products with higherenergy efficiency for the market.Electronic glass and display: CSG always recognizes R&D as the core of its electronic glass business and unremittingly adopts thedevelopment route of product upgrading with the aim of replacing imported products with homemade products. In 2022, foursubsidiaries of the Company, namely, Hebei Panel, Yichang Photoelectric, Qingyuan New Energy-Saving Materials and XianningPhotoelectric, continued to actively implement product upgrading and market upgrading in various application fields, such asintelligent electronic terminals, touch control modules, vehicle window glass, vehicle-mounted displays, industrial automatic controldisplays & commercial displays, security & protection, and smart home. As a result, the brand influence of the Company’s medium-and high-alumina electronic glass products greatly improved and their market share continued to increase. In October 2022, HebeiPanel Glass’s production line of ultra-thin electronic glass with a daily melting capacity of 110 tons was ignited. Moreover, thesynchronously constructed complementary R&D centre is expected to further bring the Company’s strength in the R&D of electronicglass to a higher level.Committed to building an industrial chain of electronic components for high-end automobiles, the Company continued to increaseR&D expenses in the display business and maintained the differentiated strategy of “product quality & technology first” for marketcompetition. In the business field of high-grade AG glass, in 2022, the Company held a leading position in the industry in terms of allproduct performance indicators. The Company’s products were mainly used in high-end vehicle-mounted displays and were mass-produced and supplied to international renowned customers. In the business fields of vehicle-mounted multi-functional 3A coverplates and vehicle-mounted TP sensors, the Company has indirectly supplied to the terminal manufacturers for domestic andinternational renowned automobile brands through downstream customers. In 2022, the Company’s vehicle-mounted cover platebusiness saw a rapid growth as the production and sales volume drastically increased. As a result, the business became a new growthpoint of the Company.In 2022, electronic glass and display business achieved a revenue of RMB 1.643 billion, a year-on-year decrease of 14%; andrealized a net profit of RMB 170 million, a year-on-year decrease of 28%.Solar energy and other businessesThe macroscopic background of the global consensus for “Green Development” and the domestic timetable of the “dual carbon”goals jointly promote a new high-speed development period of the photovoltaic industry after the affordable Internet access iscomprehensively achieved. On the basis of objective analysis of its own industrial advantages and disadvantages, overallconsideration of the market environment, industrial development trend and the Group’s overall industrial development plan, theCompany plans to implement the project of 50,000 ton high-purity crystalline silicon in Haixi Prefecture, Qinghai Province, tofurther expand the solar energy business and enhance the Group’s overall competitiveness.At present, the Company’s high-purity crystalline silicon adopts two paths of strategic cooperation with downstream cooperators inthe industry chain, signing long-term orders and flexible sales to reduce operating risks and ensure stable and sustainable businessdevelopment. With continuous technique optimization, cost reduction and efficiency increase in production, the Company greatlyreduced alkali consumption and waste residue discharge. After a series of technical measure combinations were adopted andproduction management was upgraded, the production capacity hit a record high. Specifically, Level 3 electronic-grade crystalline
silicon meeting the national standard accounted for nearly 95% of the production capacity, while the unit silicon consumption, theunit comprehensive electricity consumption, and the unit steam consumption all hit a record low. The Company has rapidlydeveloped into a first-tier manufacturer of high-purity crystalline silicon material with its product quality and market reputation. Asits high-purity crystalline silicon products have met the requirements of customers for the application to N-type batteries, theirmarket competitiveness became prominent, which brought great confidence to the construction of the Company’s project of Qinghai50,000-ton high-purity crystalline silicon material. In 2022, the project of Qinghai 50,000-ton high-purity crystalline silicon wasinitiated and other tasks were steadily implemented. Also in 2022, the Company unwaveringly conducted technologicaltransformation of production lines for its high-purity crystalline silicon business in the production recovery. By steadily increasingproduction capacity and rapidly grasping market trends and demand, the Company recorded a drastic year-on-year increase in theperformance of its high-purity crystalline silicon business.As for the silicon wafer business, on the basis of consolidating the customer base of polycrystalline silicon wafer products, theCompany has adopted the strategy of diversified operations to actively switch to the mono-crystalline route and get in line with themainstream market, as well as give full play to its own advantages and enhance the ability of asset-based benefit creation. In 2022,while ensuring the continuous production of traditional polycrystalline silicon wafers, the Company firmly seized the opportunity ofthe rapid development of the mono-crystalline industry for its silicon wafer business and rapidly made arrangements to switch to theproduction of mono-crystalline wafers, which formed a solid foundation for the transformation of its silicon wafer products.Benefited from the successful occupation of the Indian market with its polycrystalline silicon wafer products and the effectivepreliminary transformation into the production of mono-crystalline wafers and purified mono-crystalline ingots, the Company’ssilicon wafer business was successfully transformed and was in line with the mainstream market, which was an action in conformitywith the Company’s long-term development strategy. In terms of market strategy, the Company was successfully recognized as oneof the TOP 5 battery manufacturers based on its mono-crystalline silicon wafer business. As for the module business, the Companyhas completed the construction of a 500MW, high-power, large-size module production line and successfully put it into operation,which has greatly improved its capability of order acquisition. In 2022, the power station business recorded newly added grid-connected power of 7.2MW and cumulative power capacity of 139MW of photovoltaic power stations.In 2022, the revenue of the Company's solar energy and other businesses totalled RMB 3.889 billion, a year-on-year increase of257%; and realized a net profit of RMB 974 million.II. Other management workIn 2022, with the focus on the work guideline of “emphasizing operation, enhancing management and seeking development”, theCompany opened up a new path in the uncertain environment, so as to vigorously promote the Group’s development strategies andensure the steady implementation of all operation and management tasks. In order to ensure the rapid and healthy development of allits industrial sectors, the Company spared no effort to ensure production safety, continued to promote differentiated operations andthe capability of intelligent production, and tightly grasped opportunities in the market. The multiple measures it took were listedbelow.
1. The Company enhanced efforts to improve management-based benefit creation as the Company’s integral system under the dualcycle of “Internal Improvement and External Expansion” with solid foundations could effectively support its operation. Furthermore,the Company continuously conducted cost management in multiple aspects, such as cost reduction and efficiency increase,centralized procurement and engineering construction, enhanced the coordination and co-development of its teams, improvedefficiency in service, regulation and decision-making, promoted the Group’s informatized management and construction of digital
factories, gave play to the leading role of information innovation in the improvement of the capabilities of management and operation,continued to promote management based on the optimized basic standards, and promoted the construction of the five-star factories.Moreover, the Company made efforts to improve the performance in safety management. Through the implementation of a series ofprograms, methods and means for internal control, the Company facilitated the achievement of the Company’s operation objectivesand the response to and remediation of risk incidents in the business processes. Guided by risk control and efficiency/effectimprovement and focusing on the Group’s strategies of the operation objectives of the current period, the Company promoted theimprovement of its management mechanisms and comprehensively improved its capabilities of risk control and businessmanagement.
2. The ability to conduct R&D and iteration of technologies, techniques and products is always the key guarantee for the sustainableand healthy development of an enterprise. As the core element of CSG for forming the industrial barrier of high-value-addedbusiness lines, the ability helps the Company maintain its industry-leading position. The Company has made its comprehensivelayout from six perspectives, namely the organizational structure of its R&D system, intellectual property rights, top-level productdesign, high-level R&D platforms, senior talent echelons and the demand for the supporting talent resources. Based on the layout, theCompany has formulated the Group’s R&D strategic plan to guide the Company’s technological innovation and its sustainabledevelopment of product R&D. The Company has also made continued efforts to promote R&D and innovation, as it has facilitatedthe industrialization of its new products and the cross-industry application of its products. For example, it has applied its low-E glassand high-alumina silicon electronic glass to automobiles. In 2022, the Company submitted 276 patent applications, including 121 forinventions, and obtained 346 new authorized patents, including 69 authorized invention patents (with two PCT patents).
3. Energy conservation and environmental protection are the lifeline to the survival and development of a glass company and thecore features of the social responsibilities of an enterprise in an industry with high energy consumption. The Company has alwaysbeen at the leading level in the industry in terms of the control of energy consumption and emissions. CSG takes the lead in theindustry to realize comprehensive utilization of energy by means of waste heat power generation and distributed photovoltaic powergeneration. Through comprehensive exhaust gas treatment such as desulfurization, denitrification and dust removal, it achievesultra-low emission, which is far lower than the national pollutant emission permission value. Under the condition of the sametonnage and the same kiln age, the control of energy consumption and the control of emission per unit of production capacity havealways been at the leading level in the industry. Six subsidiaries of CSG, including Wujiang CSG Glass Co., Ltd., Tianjin CSGEnergy-Saving Glass Co., Ltd., Xianning CSG Energy-Saving Glass Co., Ltd., Xianning CSG Photovoltaic Glass Co., Ltd.,Xianning CSG Glass Co., Ltd. and Yichang CSG Photovoltaic Glass Co., Ltd., were successfully included in the list of “GreenFactory” announced by the Ministry of Industry and Information Technology. Meanwhile, Xianning CSG Glass Co., Ltd. wasshortlisted as the “Leader” of energy efficiency in key energy consumption industries in 2022.
4. The Company further improved its organisational structure to safeguard the implementation of its strategic projects. Specifically,the Company vigorously promoted organisational talent development, optimized the organisational structure and the correspondingstaffing and improved the construction of the human resource system. Moreover, the Company optimized and adjusted the functionalorganisation of the headquarters to enhance business support, as it specified the functions, posts, and staffing of the three-levelstructure of the Group’s R&D management and continuously promoted the implementation of organisational optimization of R&D ateach level. In doing so, the Company encouraged all subsidiaries of the Group to establish their own R&D department in a gradualmanner, so as to further improve the R&D system of the Group.
5. The Company promoted brand construction and cultural development and used culture to facilitate ideological unification, bringits teams together and safeguarding CSG’s development. By setting up a special office for brand promotion, the Company made its
brand management professional, systematic and continuous. Moreover, the Company established the CSG Group Brand InnovationShowroom to display CSG’s unique thinking of “Made in China”, the existing industries and its future development with the focuson the exhibition of its corporate philosophy, achievements, layout and influence.
2. Revenue and cost
(1) Constitution of operation revenue
Unit: RMB
| 2022 | 2021 | ncrease/decrease y-o-y | |||
| Amount | Ratio in operation revenue | Amount | Ratio in operation revenue | ||
| Total of operating income | 15,198,706,998 | 100% | 13,672,372,823 | 100% | 11.16% |
| According to industry | |||||
| Glass industry | 10,056,739,256 | 66.18% | 11,100,541,798 | 81.18% | -9.40% |
| Electronic glass & Display industry | 1,643,083,831 | 10.81% | 1,901,651,626 | 13.91% | -13.60% |
| Solar energy and other industries | 3,888,582,762 | 25.58% | 1,087,852,336 | 7.96% | 257.46% |
| Undistributed | 374,349,561 | 2.46% | 294,865,012 | 2.16% | 26.96% |
| Inter-segment offsets | -764,048,412 | -5.03% | -712,537,949 | -5.21% | 7.23% |
| According to product | |||||
| Glass products | 10,056,739,256 | 66.18% | 11,100,541,798 | 81.18% | -9.40% |
| Electronic glass & Display products | 1,643,083,831 | 10.81% | 1,901,651,626 | 13.91% | -13.60% |
| Solar energy and other products | 3,888,582,762 | 25.58% | 1,087,852,336 | 7.96% | 257.46% |
| Undistributed | 374,349,561 | 2.46% | 294,865,012 | 2.16% | 26.96% |
| Inter-segment offsets | -764,048,412 | -5.03% | -712,537,949 | -5.21% | 7.23% |
| According to region | |||||
| Mainland China | 14,031,154,824 | 92.32% | 12,398,831,195 | 90.69% | 13.17% |
| Overseas | 1,167,552,174 | 7.68% | 1,273,541,628 | 9.31% | -8.32% |
| According to sales model | |||||
| Direct sales | 15,198,706,998 | 100% | 13,672,372,823 | 100% | 11.16% |
(2) List of the industries, products, regions or sales model exceed 10% of the operating income or operatingprofits of the Company
√Applicable □ Not applicable
Unit: RMB
| Operating revenue | Operating cost | Gross profit ratio | Increase/decrease of operating revenue 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 | 10,056,739,256 | 7,649,392,465 | 23.94% | -9.40% | 7.75% | -12.11% |
| Electronic glass & Display industry | 1,643,083,831 | 1,245,581,644 | 24.19% | -13.60% | 0.74% | -10.79% |
| Solar energy and other industries | 3,888,582,762 | 2,504,032,458 | 35.61% | 257.46% | 155.95% | 25.54% |
| According to product | ||||||
| Glass products | 10,056,739,256 | 7,649,392,465 | 23.94% | -9.40% | 7.75% | -12.11% |
| Electronic glass & Display products | 1,643,083,831 | 1,245,581,644 | 24.19% | -13.60% | 0.74% | -10.79% |
| Solar energy and other products | 3,888,582,762 | 2,504,032,458 | 35.61% | 257.46% | 155.95% | 25.54% |
| According to region | ||||||
| Mainland China | 14,031,154,824 | 10,079,593,782 | 28.16% | 13.17% | 26.63% | -7.64% |
| According to sales model | ||||||
| Direct sales | 15,198,706,998 | 11,006,795,373 | 27.58% | 11.16% | 23.73% | -7.35% |
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
(3) Whether the Company’s goods selling revenue higher than the service revenue
√Yes □ No
| Industry | Item | Unit | 2022 | 2021 | Increase/decrease y-o-y (%) |
| Flat glass | Sales volume | 10,000-ton | 291 | 295 | -1.36% |
| Output | 10,000-ton | 303 | 299 | 1.34% | |
| Inventory | 10,000-ton | 23 | 11 | 109.09% | |
| Architectural glass | Sales volume | 10,000-M2 | 3,770 | 3,950 | -4.56% |
| Output | 10,000-M2 | 3,811 | 3,946 | -3.42% | |
| Inventory | 10,000-M2 | 153 | 114 | 34.21% | |
| Electronic glass | Sales volume | ton | 268,874 | 273,195 | -1.58% |
| Output | ton | 277,954 | 271,871 | 2.24% | |
| Inventory | ton | 26,538 | 18,166 | 46.09% | |
| High-purity crystalline silicon | Sales volume | ton | 8,454 | - | - |
| Output | ton | 8,957 | - | - | |
| Inventory | ton | 254 | - | - |
Silicon wafer
| Silicon wafer | Sales volume | 10,000-piece | 23,946 | 24,712 | -3.10% |
| Output | 10,000-piece | 23,020 | 24,316 | -5.33% | |
| Inventory | 10,000-piece | 372 | 424 | -12.26% | |
| Solar cell | Sales volume | MW | 540 | 422 | 27.96% |
| Output | MW | 536 | 457 | 17.29% | |
| Inventory | MW | 7 | 15 | -53.33% |
Reasons for major changes (over 30% year-on-year) in relevant data
√ Applicable □ Not applicable
1. Flat glass: The increase in inventory was mainly due to the establishment of new production lines in some subsidiaries.
2. Architectural glass: The increase in inventory was mainly because the newly established production lines were put into operationand the production and sales rhythm of some subsidiaries were adjusted.
3. Electronic glass: The increase in inventory was mainly because the production and sales rhythm of some subsidiaries wereadjusted.
4. High-purity crystalline silicon: The increases in production volume, sales volume and inventory were due to the resumption of thesilicon material business.
5. Solar Cells: The decrease in inventory was mainly because the production and sales rhythm of some subsidiaries were adjusted.
(4) Fulfilment of significant sales contracts and procurement contracts signed by the Company up to thereport period
√ Applicable □ Not applicable
Fulfilment of significant sales contracts signed by the Company up to the report period
√ Applicable □ Not applicable
Unit: RMB 0,000
| Subject matter | Name of the other party | Total contract amount | Total amount fulfilled | Amount performed during the report period | Amount to be performed | Normally performed or not | Description of the contract not being performed normally |
| Photovoltaic glass | 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. | 650,000 （Including tax） | 66,311 | 21,222 | 583,689 | Yes | Not applicable |
High-puritysilicon materials
| High-purity silicon materials | Trina Solar Co., Ltd. | 2,121,000 （Including tax） | 2,121,000 | Yes | Not applicable | ||
| Solar-grade raw polycrystalline silicon materials | Customer 1 and Customer 2 | 999,900 （Including tax） | 999,900 | Yes | Not applicable |
Fulfilment of significant procurement contracts signed by the Company up to the report period
□ Applicable ? Not applicable
(5) Constitution of operation cost
Industry and product classification
Unit: RMB
| Industry | Item | 2022 | 2021 | Increase/decrease y-o-y | ||
| Amount | Ratio in operating costs | Amount | Ratio in operating costs | |||
| Glass industry | Materials, Labor wages, Costs | 7,649,392,465 | 69.49% | 7,099,324,243 | 79.80% | 7.75% |
| Electronic glass & Display industry | Materials, Labor wages, Costs | 1,245,581,644 | 11.32% | 1,236,483,704 | 13.90% | 0.74% |
| Solar energy and other industries | Materials, Labor wages, Costs | 2,504,032,458 | 22.75% | 978,314,345 | 11.00% | 155.95% |
| undistributed | Materials, Labor wages, Costs | 371,837,218 | 3.38% | 294,564,451 | 3.31% | 26.23% |
| Inter-segment offsets | Materials, Labor wages, Costs | -764,048,412 | -6.94% | -712,537,949 | -8.01% | 7.23% |
Unit: RMB
| Product | Item | 2022 | 2021 | Increase/decrease y-o-y | ||
| Amount | Ratio in operating costs | Amount | Ratio in operating costs | |||
| Glass products | Materials, Labor wages, Costs | 7,649,392,465 | 69.49% | 7,099,324,243 | 79.80% | 7.75% |
| Electronic glass & Display products | Materials, Labor wages, Costs | 1,245,581,644 | 11.32% | 1,236,483,704 | 13.90% | 0.74% |
| Solar energy and other products | Materials, Labor wages, Costs | 2,504,032,458 | 22.75% | 978,314,345 | 11.00% | 155.95% |
| undistributed | Materials, Labor wages, Costs | 371,837,218 | 3.38% | 294,564,451 | 3.31% | 26.23% |
| Inter-segment offsets | Materials, Labor wages, Costs | -764,048,412 | -6.94% | -712,537,949 | -8.01% | 7.23% |
Note: The main components of operating costs include materials, labor, depreciation, etc. In order to avoid the disclosure of businesssecrets and damage the interests of the listed company and investors, the operating costs are only separated and disclosed accordingto the business sector and product classification of the Company.
(6) Whether the consolidated scope has changed during the report period
√ Yes □ No
On 14 February 2022, the Group set up a subsidiary, Yichang CSG New Energy Materials Technology Co., Ltd. (referred to as“Yichang New Energy Materials Company”). As of 31 December 2022, the Group has invested RMB 1.2 million. The Group owns100% of its equity.On 1 July 2022, the Group set up a subsidiary, Dongguan CSG Intelligent Equipment Manufacturing Co., Ltd. (referred to as“Dongguan Intelligent Equipment Company”). As of 31 December 2022, the Group has invested RMB 2.5 million. The Group owns100% of its equity.On 14 July 2022, the Group set up a subsidiary, Anhui CSG Photovoltaic Energy Co., Ltd. (referred to as “Anhui PhotovoltaicEnergy Company”). As of 31 December 2022, the Group has not invested yet. The Group owns 100% of its equity.On 14 July 2022, the Group set up a subsidiary, Shenzhen CSG Quartz Material Industry Co., Ltd. (referred to as “Shenzhen QuartzCompany”). As of 31 December 2022, the Group has invested RMB 3 million. The Group owns 100% of its equity.On 4 August 2022, the Group set up a subsidiary, Guangxi CSG Quartz Material Co., Ltd. (referred to as “Guangxi QuartzCompany”). As of 31 December 2022, the Group has invested RMB 2.995 million. The Group owns 100% of its equity.
(7) Major changes or adjustment in business, product or service of the Company in the report period
□ Applicable √ Not applicable
(8) Major customers and major suppliers
Major customers of the Company
Total sales to the top five customers (RMB)
| Total sales to the top five customers (RMB) | 2,391,061,740 |
| Proportion in total annual sales volume for top five customers | 15.73% |
| Proportion of related party sales in total annual sales volume for top five customers | 0% |
Information of the top five customers of the Company
| Serial | Name of customer | Sales volume (RMB) | Proportion in total annual sales |
| 1 | Customer A | 764,668,195 | 5.03% |
| 2 | Customer B | 466,423,328 | 3.07% |
| 3 | Customer C | 431,898,750 | 2.84% |
| 4 | Customer D | 421,862,056 | 2.78% |
| 5 | Customer E | 306,209,411 | 2.01% |
| Total | -- | 2,391,061,740 | 15.73% |
Other statement of main customers
□ Applicable √ Not applicable
Major suppliers of the Company
| Total purchase amount from the top five suppliers (RMB) | 2,666,850,370 |
| Proportion in total annual purchase amount from the top five suppliers | 19.41% |
| Proportion of related party sales in total purchase amount from the top five suppliers | 0% |
Information of the top five suppliers of the Company
Serial
| Serial | Name of supplier | Purchase amount (RMB) | Proportion in total annual purchase |
| 1 | Supplier A | 820,026,198 | 5.97% |
| 2 | Supplier B | 619,819,922 | 4.51% |
| 3 | Supplier C | 435,623,605 | 3.17% |
| 4 | Supplier D | 410,955,135 | 2.99% |
| 5 | Supplier E | 380,425,510 | 2.77% |
| Total | -- | 2,666,850,370 | 19.41% |
Other statement of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
| 2022 | 2021 | Increase/decrease y-o-y | Note of major changes | |
| Sales expense | 313,754,976 | 270,695,433 | 15.91% | |
| Management expense | 718,938,905 | 752,605,507 | -4.47% | |
| Financial expense | 148,212,982 | 151,182,191 | -1.96% | |
| R&D expenses | 644,146,614 | 511,738,848 | 25.87% |
4. R&D expenses
? Applicable □ Not applicable
| Name of the major R&D project | Purpose | Progress | Target | Expected impact on the Company’s future development |
| R&D of the multi-silver-layer low-E series | The project is aimed at responding to the national strategic guidelines for the “dual carbon” goals and conducting R&D of high-performance building energy-saving materials, so as to meet higher standards for building energy conservation and building emission reduction as well as improving building energy conservation. | A series of the multi-silver-layer low-E products have been developed and introduced to the market. The serial products can meet higher standards for carbon emission reduction in buildings. | The Company aims to provide products with higher energy efficiency for the market. After the products are applied to newly constructed buildings and the renovation of existing buildings, carbon emissions in the operating phase can be further reduced. | In view of the enormous carbon emissions in the field of construction, energy conservation and emission reduction in the construction industry is an important approach to the achievement of the “dual carbon” goals. In terms of the architectural glass business, CSG will focus on the development of low-carbon and energy-saving glass products for the operating phase of buildings. Moreover, it will make efforts to develop a series of energy-saving products and building heat insulation products |
with higher energyefficiency and supplythem to the market.
| with higher energy efficiency and supply them to the market. | ||||
| Development of transparent glass-ceramic cover plates | This project is aimed at developing a low-cost transparent glass-ceramic product with no or less lithium that can be applied to the field of cover plates, so as to enrich CSG’s inventory of electronic glass products, promote CSG’s upgrading of glass-ceramic products, improve customer stickiness and open up a path to the field of high-end applications. | The interim target formula has been developed and subject to material validation by customers in the field of mobile communication terminals. The performance of the formulated product in scratch resistance, hardness and transmittance has been recognized by customers. | The formulated product not only has a lower cost but also excels in scratch resistance and impact resistance. Meanwhile, the product can be mass-produced and applied to the customer side. | Breakthroughs can be achieved in the field of glass-ceramic cover plates through independent R&D for CSG, so as to promote the upgrading of CSG’s electronic glass products and endow CSG with world-leading technological strength in high-end glass for cover plates. |
| R&D and industrialization of high-alumina electronic glass | To develop AEC-qualified automobile-grade glass products with independent intellectual property rights through the optimization of the composition of KK3 glass and achieving product industrialization through the float process. | The R&D of the AEC-qualified automobile-grade glass formula has been completed, the formulated product has passed customer validation and the applications of the relevant invention patents have been submitted. Currently, the formulated product has been mass-produced with a relative high level of comprehensive yield after the industrialization. | The Company expects to obtain authorized patents of the AEC-qualified automobile-grade glass product (as a demonstration of the possession of the relevant intellectual property rights), see that the formulated product can pass required customer validation tests and continuously improve the monthly yield after the industrialization. | With the completion of the project, the Company is expected to be able to respond to the market demand by conducting product upgrading through independent R&D, so as to break the technological monopoly of foreign peers in the field of vehicle-mounted and windshield glass, expand the applicable scope of high-alumina glass, and increase product competitiveness. |
R&D staff of the Company
| 2022 | 2021 | Ratio of change | |
| Number of R&D staff (person) | 216 | 173 | 24.86% |
| The proportion of the number of R&D staff | 1.51% | 1.45% | 0.06% |
| Educational structure of R&D staff | |||
| Below undergraduate | 19 | 14 | 35.71% |
| Undergraduate | 146 | 115 | 26.96% |
| Master | 44 | 39 | 12.82% |
| Doctor | 7 | 5 | 40.00% |
| Age composition of R&D staff | |||
| Under 30 years old | 52 | 30 | 73.33% |
30~40 years old
| 30~40 years old | 110 | 104 | 5.77% |
| Over 40 years old | 54 | 39 | 38.46% |
R&D investment of the Company
| 2022 | 2021 | Ratio of change | |
| Amount of R&D investment (RMB) | 691,969,726 | 551,196,983 | 25.54% |
| Ratio of the R&D investment to the operating income | 4.55% | 4.03% | 0.52% |
| Amount of the capitalized R&D investment (RMB) | 47,823,112 | 39,458,135 | 21.20% |
| Ratio of the capitalized R&D investment to the R&D investment | 6.91% | 7.16% | -0.25% |
Reasons and effects of major changes in the composition of the company's R&D staff
□ Applicable √ Not applicable
Reason of remarkable changes over the previous year of the ratio of the total R&D investment amount to the operating income
□ Applicable √ Not applicable
Reason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB
| Item | 2022 | 2021 | Increase/decrease y-o-y |
| Subtotal of cash inflow from operating activities | 15,830,876,858 | 15,500,896,330 | 2.13% |
| Subtotal of cash outflow from operating activities | 13,873,753,627 | 11,601,248,300 | 19.59% |
| Net cash flow from operating activities (1) | 1,957,123,231 | 3,899,648,030 | -49.81% |
| Subtotal of cash inflow from investment activities | 3,808,707,836 | 4,466,761,504 | -14.73% |
| Subtotal of cash outflow from investment activities | 6,115,102,337 | 7,369,401,243 | -17.02% |
| Net cash flow from investment activity | -2,306,394,501 | -2,902,639,739 | -20.54% |
| Subtotal of cash inflow from financing activity( (2) | 4,401,690,981 | 1,839,354,868 | 139.31% |
| Subtotal of cash outflow from financing activity | 2,222,287,291 | 2,202,107,070 | 0.92% |
| Net cash flow from financing activity (3) | 2,179,403,690 | -362,752,202 | |
| Net increased amount of cash and cash equivalent (4) | 1,837,540,679 | 632,449,376 | 190.54% |
Statement on the main factors in the major changes of relevant data
√ Applicable □ Not applicable
(1) It was mainly due to the increase in cash paid for purchasing goods and accepting labour services.
(2) It was mainly due to the increase in cash received from loan acquisition.
(3) It was mainly due to the increase in cash received from loan acquisition.
(4) It was mainly due to the increase in cash inflow from financing activities.
Statement of the reasons for significant differences between the net cash flow from operating activities and the net profit of the yearduring the report period
□ Applicable √ Not applicable
V. Non-main business analysis
√ Applicable □ Not applicable
Unit: RMB
| Amount | Percentage to total profits | Explanation of the reason | Whether sustainable or not | |
| Income from investment | 31,567,854 | 1.39% | Mainly income from structured deposits and fixed deposits | No |
| Impairment of assets | 155,563,090 | 6.83% | Mainly impairment loss of goodwill | No |
| Non-operating income | 22,692,272 | 1% | Mainly payments that cannot be made, insurance compensation, etc. | No |
| Non-operating expenditure | 7,067,178 | 0.31% | Mainly compensation expenditure, etc. | No |
VI. Asset and liability analysis
1. Significant changes in asset composition
Unit: RMB
| End of 2022 | Beginning of 2022 | Increase or decrease in proportion | Explanation of significant changes | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary funds | 4,604,607,779 | 17.78% | 2,765,925,906 | 13.87% | 3.91% | Mainly due to the increase in deposits and maturity of structural deposits |
| Tradable financial assets | 999,600,000 | 5.01% | -5.01% | Mainly due to the maturity of structural deposits | ||
| Notes receivable | 156,943,437 | 0.61% | 19,220,984 | 0.10% | 0.51% | Mainly due to the pledge of notes receivable |
| Accounts receivable | 1,179,992,784 | 4.56% | 730,525,687 | 3.66% | 0.90% | Mainly due to the increase in sales revenue from photovoltaic glass |
| Receivables financing | 1,095,412,643 | 4.23% | 297,046,123 | 1.49% | 2.74% | Mainly due to the increase in sales revenue from the silicon material business and from photovoltaic glass |
| Prepayments | 183,629,823 | 0.71% | 76,097,276 | 0.38% | 0.33% | Mainly due to the increase in prepayments for materials by some subsidiaries |
| Inventory | 1,783,941,982 | 6.89% | 1,093,805,525 | 5.49% | 1.40% | Mainly due to the operation of new production lines and resumption of the silicon material business |
| Investment real estate | 290,368,105 | 1.12% | 383,084,500 | 1.92% | -0.80% | |
| Non-current assets due within one year | 20,000,000 | 0.08% | 0.08% | Mainly due to the maturity of large-amount certificate of deposit | ||
| Fixed assets | 11,243,236,175 | 43.40% | 8,566,299,970 | 42.97% | 0.43% | Mainly due to the increase in the transfer of projects under construction of some subsidiaries into fixed assets upon completion |
| Construction in process | 2,520,362,291 | 9.73% | 2,457,982,178 | 12.33% | -2.60% | |
| Right of use assets | 9,908,413 | 0.04% | 9,911,935 | 0.05% | -0.01% | |
Developmentexpenditure
| Development expenditure | 46,755,816 | 0.18% | 72,019,362 | 0.36% | -0.18% | Mainly due to the increase in the carry-over of R&D projects of some subsidiaries into intangible assets upon completion |
| Goodwill | 7,897,352 | 0.03% | 130,147,859 | 0.65% | -0.62% | Mainly due to the accrual of provision for goodwill impairment |
| Deferred tax assets | 161,489,749 | 0.62% | 255,045,066 | 1.28% | -0.66% | Mainly due to the recovery of losses in the prior year by some subsidiaries |
| Other non-current assets | 856,620,485 | 3.31% | 584,162,622 | 2.93% | 0.38% | Mainly due to the prepayment for mining concession for the current period |
| Short-term loans | 345,000,000 | 1.33% | 180,770,000 | 0.91% | 0.42% | Mainly due to the increase in borrowings of the Company and some subsidiaries |
| Contract liabilities | 418,051,975 | 1.61% | 335,188,642 | 1.68% | -0.07% | |
| Notes payable | 994,557,496 | 3.84% | 400,662,713 | 2.01% | 1.83% | Mainly due to the increase in business entailing self-issued notes of some subsidiaries |
| Accounts payable | 2,033,542,627 | 7.85% | 1,428,851,312 | 7.17% | 0.68% | Mainly due to the increase in engineering and equipment payables |
| Other payables | 537,065,184 | 2.07% | 289,440,477 | 1.45% | 0.62% | Mainly due to the increase in deposits collected |
| Non-current liabilities due within one year | 2,481,433,006 | 9.58% | 503,820,548 | 2.53% | 7.05% | Mainly due to the transfer of bonds payable to non-current liabilities due within one year |
| Long-term loans | 4,353,589,980 | 16.81% | 1,469,059,824 | 7.37% | 9.44% | Mainly due to the increase in loans for the projects |
| Bonds payable | 1,996,587,330 | 10.02% | -10.02% | Mainly due to the transfer of bonds payable to non-current liabilities due within one year | ||
| Lease liabilities | 3,564,330 | 0.01% | 220,138 | 0.00% | 0.01% | Mainly due to the leasing business of subsidiaries |
| Special reserve | 731,580 | 0.00% | 7,296,397 | 0.04% | -0.04% | Mainly due to the change(s) in special reserves |
The proportion of overseas assets was relatively high
□Applicable √ Not applicable
2. Assets and liabilities measured 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 | ||||||||
| 1. Trading financial assets (excluding derivative financial assets) | 999,600,000 | 2,698,160,000 | 3,697,760,000 | |||||
2. Receivables
financing
| 2. Receivables financing | 297,046,123 | 798,366,520 | 1,095,412,643 | |||||
| 3. Investment real estate | 383,084,500 | -92,716,395 | 290,368,105 | |||||
| Total of the above | 1,679,730,623 | 2,698,160,000 | 3,697,760,000 | 705,650,125 | 1,385,780,748 |
Other changes: nilDuring the report period, whether the company’s main asset measurement attributes changed significantly or not
□Yes √No
3. Limited asset rights as of the end of the report period
Unit: RMB
| Item | Limited amount | Limited reason |
| Monetary funds | 10,589,528 | Restricted circulation of deposits, freezes, etc |
| Notes receivable | 156,943,437 | Restricted pledge |
| Fix assets | 132,370,370 | Limited finance lease |
| Total | 299,903,335 |
VII. Investment
1. Overall situation
√Applicable □ Not applicable
| Investment in the report period (RMB) | Investment in the same period of the previous year ( RMB) | Changes |
| 6,115,102,337 | 7,369,401,243 | -17.02% |
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
| 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 Energy-Saving Glass Production Line Project | Self-built | Yes | Manufacturing industry | 37,410,296 | 350,760,329 | Own funds and loans from financial institutions | CSG plans to invest in the construction of energy-saving glass production project in Zhaoqing. After the project is put into operation, the Company will be able to produce 2.5 million square meters of energy-saving insulating glass and 3.5 million square meters of coated energy-saving products annually. The project has been put into operation. | 69,880,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 13 December 2019 | Notice number: 2019-077 | |
| Zhaoqing CSG High-grade Automotive Glass Production Line Project | Self-built | Yes | Manufacturing industry | 64,633,762 | 92,575,690 | Own funds and loans from financial institutions | CSG plans to invest in the construction of high-grade automotive glass production line in Zhaoqing. The plant of the project is under capital construction. | 58,000,000 | No revenue as the project is still in the construction period. | 13 December 2019 | Notice number: 2019-077 | |
| Anhui Fengyang Quartz Sand Project | Self-built | Yes | Manufacturing industry | 83,482,656 | 140,139,139 | Own funds and loans from financial institutions | CSG plans to build a new production base of low iron (ultra-white) quartz sand with an annual output of 600,000 tons in Fengyang, Anhui Province, and obtain the mining concession of the raw ore of quartz sand. The processing plant of the project has been put into operation. | 82,380,000 | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 6 March 2020 | Notice number: 2020-010 |
AnhuiFengyangLightweight &High-permeabilityPanel for SolarEnergyEquipmentManufacturingBase Project
| Anhui Fengyang Lightweight & High-permeability Panel for Solar Energy Equipment Manufacturing Base Project | Self-built | Yes | Manufacturing industry | 1,819,630,548 | 2,584,801,075 | Own funds and loans from financial institutions | CSG plans to invest in the lightweight & high-permeability panel for solar energy equipment manufacturing base project in Anhui. Part of the project has been put into operation. | 435,660,000 | Part of the project has been completed, and the revenue thereof has been reflected in profits. | 6 March 2020 | Notice number: 2020-010 | |
| Tianjin Energy-saving Coating Production Line Purchase and Upgrade Project | Self-built | Yes | Manufacturing industry | 5,636,400 | 100,861,437 | Own funds and loans from financial institutions | CSG intends to invest in a new coating production line in Tianjin CSG, and at the same time upgrade and transform the existing coating lines B and C. The project plans to increase the annual production capacity by 2.76 million square meters through the purchase of coating lines and the upgrading and transformation of existing production lines. The project has been put into operation. | 16,400,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 30 April 2020 | Notice number: 2020-023 | |
| Wujiang CSG Architectural New Architectural Glass Intelligent Manufacturing Plant Construction Project | Self-built | Yes | Manufacturing industry | 27,404,705 | 79,170,687 | Own funds and loans from financial institutions | CSG plans to build a full-process flexible automated production line covering cutting, edging, tempering, insulating and other processes in Wujiang CSG East China Architectural Glass Co., Ltd., using the reserved industrial land in the factory area. The new factory building area is 31,968 square meters, and the new intelligent manufacturing production line has an annual output of 1.2 million square meters of Low-E energy-saving insulating glass. The project is under construction. | 50,490,000 | No revenue as the project is still in the construction period. | 24 June 2020 | Notice number: 2020-051 |
Wujiang FloatLightweightand High-efficiencyDouble-glassProcessingProductionLineConstructionProject
| Wujiang Float Lightweight and High-efficiency Double-glass Processing Production Line Construction Project | Self-built | Yes | Manufacturing industry | 91,603,119 | 132,005,367 | Own funds and loans from financial institutions | CSG plans to build two lightweight and high-efficiency double-glass processing production lines in Wujiang Float. After the production line is completed, it is expected to increase the monthly double-glass production capacity by 2 million square meters, bringing the annual production capacity to 24 million square meters. After the project is completed, it will give full play to Wujiang Float’s technical advantages of double-glass, enhance market competitiveness, and expand the scale of the Company’s benefits. The project was put into commercial operation in 2022 after completion. | 47,850,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 24 August 2020 | Notice number:2020-061 | |
| Xi’an CSG Energy-saving Glass Production Line Project | Self-built | Yes | Manufacturing industry | 41,356,682 | 41,694,021 | Own funds and loans from financial institutions | CSG plans to invest in Xi’an, Shanxi Province for building a high-grade energy-saving glass production line with an annual output of 2.1 million square meters of insulating energy-saving glass, and 3.5 million square meters of coated energy-saving glass. The project is under construction. | 42,220,000 | No revenue as the project is still in the construction period. | 7 November 2020 | Notice number: 2020-070 | |
| Hebei Panel Glass Ultra-thin Electronic Glass Line Construction Project | Self-built | Yes | Manufacturing industry | 232,913,263 | 257,317,613 | Own funds and loans from financial institutions | CSG plans to build an ultra-thin electronic glass production line with a daily melting capacity of 110 tons and a complementary R&D centre in Hebei Panel Glass. The project is under debugging. | 46,710,000 | No revenue as the project is still under debugging. | 27 March 2021 | Notice number:2021-008 |
Xianning CSG1200T/DPhotovoltaicPackagingMaterialProductionLine Project
| Xianning CSG 1200T/D Photovoltaic Packaging Material Production Line Project | Self-built | Yes | Manufacturing industry | 660,547,276 | 726,996,365 | Own funds and loans from financial institutions | CSG plans to build a photovoltaic kiln with a daily melting capacity of 1,200 tons and supporting deep processing lines in Xianning CSG. The project is under debugging. | 128,350,000 | No revenue as the project is still under debugging. | 27 March 2021 | Notice number:2021-008 | |
| Dongguan CSG Solar Double-glass Calendering Line Technical Transformation and Upgrade Project | Self-built | Yes | Manufacturing industry | 155,171,204 | 157,561,075 | Own funds and loans from financial institutions | CSG plans to carry out cold repair and technical transformation of the 650T/D line ultra-white solar kiln in Dongguan Solar Phase III, and start the technical transformation and upgrade project of double-glass calendering line. After the project is completed, it will ensure that the product quality, output efficiency, energy consumption level and cost advantage are at the leading level in China. The project was put into commercial operation in 2022 after completion. | 60,670,000 | The project has been completed, and the revenue thereof has been reflected in profits. | 8 June 2021 | Notice number: 2021-025 | |
| CSG East China Headquarters Building | Self-built | Yes | Manufacturing industry | 2,736,181 | 2,736,181 | Own funds and loans from financial institutions | CSG plans to invest in the construction of CSG East China Headquarters Building in Wujiang District, Suzhou City, Jiangsu Province, as the R&D, marketing, exhibition, office and cooperation centre of upstream and downstream enterprises in the industry chain in East China, so as to meet the needs of CSG’s expanding business scale and increasing personnel in East China in the future. | The project is in the construction period. | 27 August 2021 | Notice number: 2021-039 |
CSG GuangxiBeihaiPhotovoltaicGreen EnergyIndustrial ParkProject (PhaseI)
| CSG Guangxi Beihai Photovoltaic Green Energy Industrial Park Project (Phase I) | Self-built | Yes | Manufacturing industry | 32,830,756 | 33,213,753 | Own funds and loans from financial institutions | CSG plans to invest in the construction of CSG Guangxi Beihai Photovoltaic Green Energy Industrial Park project in Beihai Tieshan Donggang Industrial Park, Longgang New District, Guangxi Zhuang Autonomous Region. Phase I of the project includes two 1,200t/d one-kiln five-line photovoltaic rolled glass production lines and complementary photovoltaic glass processing and production line, as well as complementary R&D centre, 2.5GW photovoltaic module production line, one 700 t/d one-kiln two-line production line for electronic glass and photoelectric glass, and complementary quartz sand ore and silica sand purification processing line. The project is under construction. | 557,640,000 | No revenue as the project is still in the construction period. | 10 September 2021 | Notice number: 2021-041 | |
| Hefei CSG Energy-saving Glass Intelligent Manufacturing Industry Base Project | Self-built | Yes | Manufacturing industry | 2,008,238 | 2,008,238 | Own funds and loans from financial institutions | CSG plans to invest in the construction of a CSG energy-saving glass intelligent manufacturing industrial base in Hefei City, Anhui Province, and adopts the new generation of intelligent manufacturing technologies and processes to build an energy-saving glass processing centre, and to further expand the market layout of CSG in central China, thus better serving the market and customers, and serving the national “dual carbon” goal. The project is in the preparatory | 46,660,000 | No revenue as the project is still in the preparatory period. | 15 October 2021 | Notice number: 2021-043 |
stage.
| stage. | ||||||||||||
| Xianning CSG Energy-saving Glass Co., Ltd. Production Line Reconstruction and Expansion Construction Project | Self-built | Yes | Manufacturing industry | 5,539,915 | 5,686,498 | Own funds and loans from financial institutions | CSG plans to use the surplus land in the park to implement the production line reconstruction and expansion project in Xianning CSG Energy-Saving Glass Co., Ltd., mainly for purpose of technical transformation and upgrade for existing coating equipment, expansion of workshop, supplement of complementary processing equipment, and synchronous implementation of full intelligent connection. After the completion of the project, it is expected that the Company’s annual production capacity of insulating glass will increase by 1.2 million square meters, and that of coated glass will increase by 2.42 million square meters. The project is under construction. | 27,130,000 | No revenue as the project is still in the construction period. | 3 December 2021 | Notice number: 2021-051 | |
| Qingyuan CSG Energy-saving New Materials Co., Ltd. Phase I Upgrading and Technical Transformation Project | Self-built | Yes | Manufacturing industry | 8,683,859 | 24,294,968 | Own funds and loans from financial institutions | CSG plans to carry out technical transformation of phase I production line of Qingyuan CSG Energy-saving New Material Co., Ltd., and achieves furnace and hardware upgrade through technological innovation, to further promote the Group’s technical innovation in the field of electronic glass. The project is under construction. | 60,210,000 | No revenue as the project is still in the construction period. | 25 December 2021 | Notice number: 2021-053 |
DongguanSolar G6/G7Line Processand EquipmentUpgradingProject
| Dongguan Solar G6/G7 Line Process and Equipment Upgrading Project | Self-built | Yes | Manufacturing industry | 18,765,600 | 18,765,600 | Own funds and loans from financial institutions | CSG plans to upgrade the process and equipment of the two existing glass deep-processing production lines (G6/G7 lines) of Dongguan CSG Solar Glass Co., Ltd. to meet the production needs of large-size glass and double-plated products. After the project is completed, it will give full play to the double glass technical advantages of Dongguan CSG Solar to improve the Company’s market competitiveness and expand its benefit scale. The project is under construction. | 41,560,000 | No revenue as the project is still in the construction period. | 29 March 2022 | Notice number: 2022-006 | |
| High-purity crystalline silicon project with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province | Self-built | Yes | Manufacturing industry | 10,319,009 | 10,319,009 | Convertible bonds, own funds and loans from financial institutions | CSG plans to build a new high-purity crystalline silicon production line with an annual output of 50,000 tons in Haixi Prefecture, Qinghai Province. Qinghai is not only rich in green power resources, but also one of the regions with the greatest development potential for clean energy, especially photovoltaic power generation in the future. Therefore, the deployment of high-purity crystalline silicon production lines in Qinghai Province is of great strategic significance to the development of CSG’s new energy industry. The project is under construction. | 863,280,000 | No revenue as the project is still in the construction period. | 23 June 2022 | Notice number: 2022-024 | |
| Xianning Float No. 2 Production Line (700 | Self-built | Yes | Manufacturing industry | Own funds and loans from financial | CSG plans to upgrade the No. 2 production line of Xianning Float with a production capacity of 700 | 38,350,000 | The project is in the preparatory stage. | 9 November 2022 | Notice number: 2022-061 |
tons/day)TechnologyUpgrade andTransformationProject
| tons/day) Technology Upgrade and Transformation Project | institutions | tons/day into a professional and high-quality ultra-white float glass production line that can produce 4 - 22mm thick ultra-white float glass, so as to increase the thickness coverage of products, reduce the operation cost and energy consumption, and improve the product quality, thus further consolidating the market position of the Company’s ultra-white float glass in central China. | ||||||||||
| Anhui Fengyang 37.6MW Distributed Photovoltaic Power Generation Project | Self-built | Yes | Manufacturing industry | Own funds and loans from financial institutions | CSG plans to build a new 37.6MW distributed photovoltaic power generation project using the plant roof of Anhui CSG New Energy Material Technology Co., Ltd. The project is sited in Fengyang, Anhui Province, a place with abundant sunlight and an average annual irradiation amount of 1,296kWh/m2. Meanwhile, considering the large annual consumption of new energy power in Anhui Province, photovoltaic power generation for self-use can bring great economic benefits. In addition to providing obvious economic benefits, the distributed photovoltaic power generation also conforms to the carbon reduction policy advocated by the state. | 11,000,000 | The project is in the preparatory stage. | 9 November 2022 | Notice number: 2022-061 | |||
| Chengdu Float Three Sets of Standby Environmental | Self-built | Yes | Manufacturing industry | 608,993 | 608,993 | Own funds and loans from financial | CSG plans to build three sets of standby environmental protection facilities for flue gas | The project is in the construction period. | 9 November 2022 | Notice number: 2022-061 |
ProtectionFacilities forFlue GasTreatmentConstructionProject
| Protection Facilities for Flue Gas Treatment Construction Project | institutions | treatment in Chengdu CSG Glass Co., Ltd., to further improve and optimize the environmental treatment performance of the three production lines of Chengdu Float, and thus improve treatment efficiency and reduce operating cost. The project is under construction. | ||||||||||
| Total | -- | -- | -- | 3,301,282,462 | 4,761,516,038 | -- | -- | 2,684,440,000 | -- | -- | -- | -- |
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
There was no securities investment during the report period.
(2) Derivative investment
□ Applicable √ Not applicable
There was no derivative investment during the report period.
5. Use of raised fund
□ Applicable √ Not applicable
There was no use of raised fund during the report period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company did not sell major assets during the report period.
2. Sales of major equity
□ Applicable √ Not applicable
IX. Analysis of main holding companies and joint -stock companies
√Applicable □ Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit byover 10%
Unit: RMB
Name of company
| Name of company | Type | Main business | Registered capital | Total assets | Net Assets | Operating revenue | Operating profit | Net profit |
| Yichang CSG Polysilicon Co., Ltd. | Subsidiary | Production and sales of high-purity silicon material products | 1,467.98 million | 2,626,557,526 | 1,061,166,090 | 3,005,985,683 | 1,042,010,116 | 946,379,491 |
| Qingyuan CSG Energy Saving New Materials Co., Ltd | Subsidiary | Production and sales of various ultra-thin electronic glass | 1,055 million | 1,551,310,104 | 1,063,882,240 | 687,274,158 | 192,771,867 | 180,298,561 |
| Chengdu CSG Glass Co., Ltd. | Subsidiary | Development,manufacture and sales of various special glass | 260 million | 1,041,796,806 | 575,022,400 | 1,331,592,907 | 186,383,612 | 167,500,971 |
Hebei CSG GlassCo., Ltd.
| Hebei CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | USD 48.06 million | 1,211,996,608 | 993,353,729 | 1,090,740,721 | 161,787,654 | 141,584,355 |
| Wujiang CSG Glass Co., Ltd. | Subsidiary | Manufacture and sales of various special glass | 565.04 million | 2,344,122,487 | 1,630,512,073 | 1,779,767,345 | 127,145,403 | 114,572,068 |
| Dongguan CSG Architectural Glass Co., Ltd | Subsidiary | Deep processing of glass | 240 million | 920,805,811 | 483,890,399 | 1,155,213,039 | 115,803,010 | 102,114,453 |
Particulars about subsidiaries obtained or disposed in report period
□ Applicable √ Not applicable
Description of main holding and shareholding companies:
In 2022, the performance of Yichang CSG Polysilicon Co., Ltd. greatly increased under the driving by the resumption of thesilicon production line; the performance of Qingyuan CSG Energy-Saving New Materials Co., Ltd. increased year on year mainlydue to the accrual of provision for asset impairment in the previous period; the performance Chengdu CSG Glass Co., Ltd., HebeiCSG Glass Co., Ltd. and Wujiang CSG Glass Co., Ltd. decreased year on year mainly due to the decline of product price and therise of raw fuel price; the performance of Dongguan CSG Architectural Glass Co., Ltd. increased greatly year on year thanks to theimprovement of operation management level and the decline of the price of main raw materials.
X. Structured main bodies controlled by the Company
□ Applicable √ Not applicable
XI. Outlook of the Company’s future development
1. Tendency of development of the industries the Company engages
Please refer to the relevant content of "I. Particulars about the industry the Company engages in during the report period".
2. The Company’s development strategy
The Group will formulate strategic development goals and implement strategic development plans under the guidance the nationalstrategic goals of “dual carbon”, with a focus on “low carbon and energy saving, green and environmental protection, scientificand technological innovation, and intelligent manufacturing”. The Company plans to form the three industrial clusters of energy-saving glass, electronic glass and photovoltaic materials, and create the three high-grade products of multi-silver Low-E glass,high-grade electronic glass and “Blue Diamond” ultra-white glass. The Company will continue to enhance its core competitiveness,occupy a dominant position in the industry, strengthen the advantage of raw material resources, improve technology and R&Dstrength, expand market share and market influence, integrate industrial resources, comprehensively improve the credibility andinfluence of the CSG brand, plan the layout of the CSG industry from a global and macro perspective, accelerate the developmentof new industries and consolidate the Company’s capability to resist cyclical risks, and build CSG into an internationallyinfluential enterprise group that is related to both the upstream and downstream portions of the glass industry and the energyindustry.
3. Business plan of the Company in 2023
① Strengthen the capability of group operation and management, improve the level of fine management and professionalmanagement, and promote the implementation of such measures as cost reduction and efficiency increase management, supply
chain management and lean management to ensure the completion of the Company’s operation and construction objectives in2023;
② Build an informatization platform for R&D management, and improve the qualification of the R&D innovation platform ofCSG;
③ Enhance talent management, establish a remuneration incentive system that links remuneration with performance, improve theCompany’s incentive mechanism, strengthen employee training, select and cultivate reserve cadres, introduce high-quality talents,and intensify the building of talents echelon.
④ Rationally plan the level of asset-liability ratio, and ensure the control over financial risks;
⑤ Comprehensively boost cost management to improve market competitiveness;
⑥ Steadily promote the safe construction and operation of projects under construction, and prepare and reserve new projectscentring around the Group’s core industries and new development opportunities;
⑦ Build a safety, environmental protection and duty performance capability management platform, inspire all employees toproactively perform their duties, and establish an informatization management platform for safety and environmental protection toimprove the Company’s safety management.
4. Fund demand, use plan and fund source
In 2023, the Company’s capital expenditure is expected to be approximately RMB 7,661 million, which is mainly used forconstruction of the project of lightweight & high-permeability panel for solar energy equipment and complementary sand oreprojects, construction of the Qinghai high-purity crystalline silicon project, technical upgrade and transformation in all relevantindustries, capacity expansion, etc. The main sources of funds are own funds and loans from financial institutions.
5. Risk factors and countermeasures
In 2023, 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. In2023, 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 faces fierce competition among similar products, and pressure from rising price of raw materials and fuels suchas heavy alkali and natural gas and increasingly high labour cost; the float glass industry faces the risk of declining demand in thedownstream architectural glass market; the photovoltaic glass industry faces the risk that the price game between the upstream siliconmaterials, silicon wafers and cells of photovoltaic modules may affect the market demand for photovoltaic glass, and the excessivelyrapid capacity expansion may lead to phased overcapacity; the electronic glass and display industry faces the risk of acceleratedmaterial technology upgrade due to the continuous rapid iterative upgrade of technology requirements in downstream applicationscenarios; the solar energy industry faces the challenge of an imbalance in the supply chain that leads to rapid price increase in someproduction processes; with the continuous release of the production capacity of high-purity crystalline silicon, the price of high-purity crystalline silicon fluctuates downward, which may aggravate the risk of price decline, leading to a sharp decline in the priceof upstream business and a general price reduction in downstream business. To cope with aforesaid risks, the Company will take thefollowing measures:
A. In the float glass sector, the Company will continue to promote differentiated operation, optimize product structure, and increase
the sales proportion of high value-added products to strengthen its competitiveness.B. In the photovoltaic glass sector, the Company will quickly respond to market changes in combination with industry characteristics;pay close attention to the trend of raw material price, and timely and strategically prepare materials as demanded to reduce the impactof the price fluctuation of raw materials on the Company’s business performance; optimize product structure in alignment of marketdemand, and continuously promote lean management and differentiated operation to improve profitability and enhance industrycompetitiveness.C. In the architectural glass sector, the Company will accelerate the pace of digital, networked and intelligent transformation of themanufacturing industry to reduce the consumption of manpower, materials and energy. The Company will strengthen thedevelopment of high-end market and overseas market, actively respond to market changes, continuously deepen market exploitation,refine market layout, increase the application of new products and new technologies, improve service capability, give full play toquality, technology and brand advantages, and at the same time, maintain the advantageous position of the Company through market-oriented extension of industrial chain.D. In the electronic glass and display sector, the Company will further strengthen the R&D of new technologies, new products andnew applications, constantly narrow the gap from international peers, maintain technical leading advantage in China, and at the sametime, further intensify efforts to explore new market applications, broaden industry development direction and expand market space.E. In the solar energy sector, the Company will strengthen the integration of resources across the industry chain, pay attention to theprice trend, supply-demand relationship and terminal demands in upstream and downstream procurement and sales, increase R&Dinvestment, strengthen operation management, and maintain corporate competitiveness in market segments; keep an eye on marketchanges, vigorously carry out cost reduction and efficiency increase activities, implement energy saving and consumption reductionmeasures, and timely upgrade and replace the equipment to improve production efficiency and ensure the Company’s benefits;expand industry scale and increase market share by investing in new production lines.
③ Risk of fluctuation of foreign exchange rate: At present, nearly 7.81% of the sales revenue of the Company is from overseas, andin the future, the Company will further develop overseas business. Therefore, the fluctuation of exchange rate will bring certain riskto the operation of the Company. To cope with such risk, the Company will settle exchange in a timely manner, and use safe andeffective risk evading instrument and product to relatively lock exchange rate, thus reducing the risk caused by fluctuation ofexchange rate.
XII. Reception of research, communication and interview
√Applicable □ Not applicable
Receptiontime
| Reception time | Reception location | Reception method | Reception object type | Reception object | The main content of the discussion and the information provided | Index of the basic situation of the survey |
| April 29, 2022 | CSG Headquarters conference room and other telephone conference parties are located in different locations | Telephone communication | institution | Shenwan Hongyuan Research，Changjiang Securities，China Asset Management, China Merchants Fund and other institutions | The Company communicated with investors on the Company's periodical reports, the Company's performance and the operation and development of businesses, etc.; no material was provided. | For details, please refer to the Record of Investor Relations Activities disclosed on Juchao website (www.cninfo.com.cn) on April 29, 2022 |
Section IV. Corporate Governance
1.Basic Situation of Corporate Governance
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, Securities Law andRule of Governance for Listed Company, the Company has been putting efforts in improving the corporate governance,strengthening management of information disclosure, regulating operation activities and establishing a modern corporate system.At present, the system for corporate governance of the Company is basically sound, operation is regulated, corporate governance isconsummated, which accord with the requirements of relevant documents on corporate governance of listed company issued byCSRC.According to the "Company Law" and other relevant laws and regulations and the "Articles of Association", the Company hasestablished and improved a relatively standardized corporate governance structure, and formed a decision-making and operationmanagement system with the shareholders' meeting, the board of directors, the board of supervisors and the Company'smanagement as the main structure. The power organs, decision-making bodies, supervision bodies and managers have clear rightsand responsibilities, perform their respective duties and effectively monitor and balance, and perform various duties stipulated inthe "Company Law" and "Articles of Association" in accordance with the law. According to the "Articles of Association" and otherrelevant corporate governance regulations, the Company has formulated the "Procedure Rules for Shareholders' Meeting","Procedure Rules for the Board of Directors", "Procedure Rules for the Supervisory Committee", "General Manager's Work Rules"and other relevant systems, which provides an institutional guarantee for the standardized operation of the corporate governancestructure of the Company.The Company's "Three Committees" (General Meeting of Shareholders, Board of Directors and Board of Supervisors) operate in astandardized manner, and the procedures for convening and convening meetings comply with relevant regulations. The currentdirectors, supervisors, and senior management are able to actively and effectively fulfill relevant responsibilities and obligations.Independent directors have put forward opinions or suggestions on the company's development decisions. The company respectsand listens to the opinions and suggestions of independent directors, and implements them in accordance with the final resolutionsof the board of directors and the shareholders' meeting, playing a positive role in safeguarding the interests of the company andsmall and medium-sized shareholders, At the same time, the company also provides sufficient protection for the performance ofindependent directors and supervisors. The Board of Directors has established four special committees, namely, the StrategyCommittee, the Audit Committee, the Nomination Committee, and the Remuneration and Evaluation Committee, to assist theBoard of Directors in performing relevant functions and provide professional suggestions and opinions for the Board of Directors'decision-making. The Board of Directors and the Board of Supervisors of the Company report to the General Meeting ofShareholders on the performance of their duties by directors and supervisors, and the independent directors make a debriefingreport to the General Meeting of Shareholders. The senior management personnel have a clear division of labor, clearresponsibilities and authorities, and operate in compliance with laws and regulations.In strict accordance with the requirements of the Listing Rules of Shenzhen Stock Exchange and other relevant laws andregulations, the company earnestly performs the obligation of information disclosure to ensure the authenticity, accuracy, integrityand timeliness of information disclosure. The company earnestly fulfills its information disclosure obligations in strict accordancewith the requirements of the Shenzhen Stock Exchange Listing Rules and other relevant laws and regulations to ensure thetruthfulness, accuracy, completeness and timeliness of information disclosure. Shanghai Securities News, Securities Daily, HongKong Commercial Daily and Juchao Website (www.cninfo.com.cn) are designated media for the Company's informationdisclosure to ensure that all shareholders of the Company have equal access to the Company's business information. The Company
has established the Information Disclosure Management System and promptly improved it in accordance with newly issued lawsand regulations, clarified the standards of insider information, and established inside information insider registration system andrecord management system. In order to further strengthen the Company's internal information disclosure control, enhance thedisclosure consciousness of relevant personnel, and improve the quality of corporate information disclosure, in 2016, the Companyset up information Disclosure Committee, and formulate Rules for the implementation of the information disclosure Committee.During the report period, the Company disclosed information with facticity, completeness, timeliness and fairness, strictly fulfilledthe responsibilities and obligations of information disclosure of listed companies to ensure that investors are able to keep abreastof the Company's operation and development strategies. There was no regulatory punishment caused by information disclosure inthe report period. Meanwhile, the Company delivered the Inside Information Insider Table to Shenzhen Stock Exchange whensubmitting periodic reports.The Company has seriously implemented the requirements of the relevant regulatory to cash dividends. The Company formulatedthe Return plan for Shareholders of CSG Holding Co., Ltd. in the Next Three Years (2022-2024) according to relevant regulationsof the Notice of Further Implementation of Cash Dividends of the Listed Companies (ZJF No.: [2012] 37) and the RegulatoryGuidelines of Listed Companies No. 3-Cash Dividends of Listed Companies(Revised in 2022) issued by China SecuritiesRegulatory Commission, further improved the Company’s decision-making and supervision mechanism for distribution of profits,and protected the interests of investors.During the report period, it did not exist that the Company provided the undisclosed information to the largest shareholder. And itdid not exist that non-operating fund of listed Company was occupied by the largest shareholder and its affiliated enterprises.Whether the actual condition of corporate governance is materially different from the laws, administrative regulations and theprovisions on the governance of listed companies issued by the CSRC□Yes √ No
II. Independency of the Company relative to the largest shareholder in aspect of businesses,personnel, assets, organization and financeDuring the report period, the Company has been absolutely independent in business, personnel, assets, organization and financefrom its largest shareholder. The Company has an independent and complete business system and independent managementcapability.
1. In terms of business: The Company owns independent purchase and supply system of the raw resources, complete productionsystems, independent sale system and customers. The Company is completely independent from the largest shareholder in business.The largest shareholder and its subsidiaries do not engage any identical business or similar business as the Company.
2. In terms of personnel: The Company established integrated management system of labor, personnel, salaries and the socialsecurity, which were absolutely independent from its holding shareholder’s. Personnel of the managers, person in charge of thefinancial and other executive managers are obtained remuneration from the Company since on duty in the Company, and neverreceived remuneration or take part-time jobs in the largest shareholder’ company and other enterprises controlled by the largestshareholder. The recruitment and dismissal of Directors are conducted through legal procedure since the Company was listed andthe manager has been appointed or dismissed by Board of Directors. The Board of Directors and the Shareholders’ GeneralMeeting have not received any interference of decisions on personnel appointment and removal from the largest shareholder.
3. In terms of asset: the Company is able to operate business independently and enjoys full control over the production system,auxiliary production system and facilities, land use right, industry property and non-patent technology owned or used by theCompany. The investments to the Company from largest shareholder are monetary assets, and the largest shareholder has neveroccupied, damaged or intervened to operation on these assets.
4. In terms of organization: The Company possessed sound corporate governance structure, established Shareholders’ GeneralMeeting, Board of Directors, Supervisory Board, appointed general manager, and fixed related function departments. TheCompany had been totally independent from its largest shareholder in organization structure. The Company has its own office and
production sites that are different from those of the largest shareholder. The largest shareholder have not in any way affected theindependence of the Company's operations and management.
5. In terms of finance: The Company has set up independent financial department, established independent accounting calculationsystem and financial management system (included management system of its subsidiaries). The financial personnel of theCompany didn’t take part-time jobs in units of largest shareholder or its subordinate units. The Company had independent bankaccounts, separated from the largest shareholder. The Company is independent taxpayer, paid taxes independently according thelaws and didn’t pay mixed taxes with the largest shareholder. The financial decision-making of the Company was independent, andthe use and management of funds were independent. The Company never offered guarantee to their largest shareholder and itssubordinate units and other related party. The largest shareholder and its related have never occupied or disguisedly occupied thecapital of the Company.III. Horizontal competition
□ Applicable √ Not applicable
IV. Information on the annual general meeting and extraordinary general meeting heldduring the report period
1. The General Meeting of Shareholders during the report period
Session of meeting
| Session of meeting | Type | Ratio of investor participation | Meeting date | Date of disclosure | Meeting resolution |
| The First Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 29.04% | 16 February 2022 | 17 February 2022 | Announcement on Resolutions of the First Extraordinary General Meeting of 2022 (Announcement No.: 2022-004) |
| Annual General Meeting of 2021 | Annual General Meeting | 27.69% | 16 May 2022 | 17 May 2022 | Announcement on Resolutions of Annual General Meeting of 2021 (Announcement No.: 2022-020) |
| The Second Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 28.44% | 11 July 2022 | 12 July 2022 | Announcement on Resolutions of the Second Extraordinary General Meeting of 2022 (Announcement No.: 2022-034) |
| The Third Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 28.34% | 3 August 2022 | 4 August 2022 | Announcement on Resolutions of the Third Extraordinary General Meeting of 2022 (Announcement No.: 2022-048) |
| The Fourth Extraordinary General Meeting of 2022 | Extraordinary General Meeting | 25.75% | 25 November 2022 | 26 November 2022 | Announcement on Resolutions of the Fourth Extraordinary General Meeting of 2022 (Announcement No.: 2022-065) |
2. The preference shareholders whose voting rights have been restored request the convening of an extraordinarygeneral meeting
□ Applicable √ Not applicable
V. Directors, supervisors and senior executives
1. Basic information
Name
| Name | Title | Working status | Sex | Age | Start dated of office term | End date of office term | Shares held at period-begin (Share) | Amount of shares increased in this period (Share) | Amount of shares decreased in this period (Share) | Other changes (share) | Shares held at period-end (Share) | Reason for increase or decrease of shares |
| Chen Lin | Chairman of the Board | Currently in office | Female | 51 | 2016/11/19 | 2023/05/21 | 1,623,065 | 1,623,065 | ||||
| Shen Chengfang | Director | Currently in office | Male | 57 | 2022/08/03 | 2023/05/21 | ||||||
| Zhu Qianyu | Independent Director | Currently in office | Female | 48 | 2019/04/10 | 2023/05/21 | ||||||
| Zhang Min | Independent Director | Currently in office | Male | 46 | 2022/11/25 | 2023/05/21 | ||||||
| Shen Yunqiao | Independent Director | Currently in office | Male | 47 | 2023/03/16 | 2023/05/21 | ||||||
| Cheng Jinggang | Director | Currently in office | Male | 42 | 2020/05/21 | 2023/05/21 | ||||||
| Yao Zhuanghe | Director | Currently in office | Male | 64 | 2020/05/21 | 2023/05/21 | ||||||
| Cheng Xibao | Director | Currently in office | Female | 41 | 2016/01/21 | 2023/05/21 | ||||||
| Li Jianghua | Chairman of the Supervisory Board, Employee Supervisor | Currently in office | Male | 46 | 2019/03/27 | 2023/05/21 | ||||||
| Meng Lili | Supervisor | Currently in office | Female | 45 | 2020/05/21 | 2023/05/21 | ||||||
| Dai Pingsheng | Employee Supervisor | Currently in office | Male | 41 | 2021/07/08 | 2023/05/21 | ||||||
| He Jin | Secretary of the Party Committee,Executive Vice President | Currently in office | Male | 51 | 2022/05/16 | 2023/05/21 | 897,600 | 897,600 | ||||
| Acting CEO | 2022/08/15 | 2023/05/21 | ||||||||||
| Wang Wenxin | Vice President, Chief | Currently in office | Female | 45 | 2022/05/16 | 2023/05/21 | 154,600 | 154,600 |
FinancialOfficer
| Financial Officer | ||||||||||||
| Acting Secretary of the Board of Directors | Leaving office | 2022/07/08 | 2022/09/26 | |||||||||
| Chen Chunyan | Secretary of the Board | Currently in office | Female | 41 | 2022/09/26 | 20230/5/21 | 49,271 | 49,271 | ||||
| Zhang Jinshun | Director | Leaving office | Male | 58 | 2017/05/02 | 2022/06/28 | ||||||
| Wang Jian | Director | Leaving office | Male | 59 | 2016/01/21 | 2022/08/03 | 1,012,000 | 1,012,000 | ||||
| CEO | Leaving office | 2016/01/21 | 2022/08/15 | |||||||||
| Xu Nianhang | Independent Director | Leaving office | Male | 45 | 2020/05/21 | 2022/11/25 | ||||||
| Zhu Guilong | Independent Director | Leaving office | Male | 59 | 2017/05/02 | 2023/03/16 | ||||||
| Yang Xinyu | Secretary of the Board | Leaving office | Male | 43 | 2017/05/02 | 2022/07/02 | 1,159,332 | 1,159,332 | ||||
| Total | -- | -- | -- | -- | -- | -- | 4,895,868 | 0 | 0 | 0 | 4,895,868 | -- |
During the report period, whether there was any resignation of directors and supervisors and dismissal of senior executives duringtheir terms of office? Yes □ NoThe Board of Directors of the Company received a written resignation report submitted by Director Mr. Zhang Jinshun on 28 June2022. Mr. Zhang Jinshun resigned as the Company’s Director due to personal reasons.The Board of Directors of the Company received a written resignation report submitted by Mr. Yang Xinyu, Secretary of theBoard of Directors, on 2 July 2022. Mr. Yang Xinyu resigned as the Secretary of the Board of Directors due to personal reasons.The Company convened the Third Extraordinary General Meeting of 2022 on 3 August 2022, at which Proposal to Remove Mr.Wang Jian from His Office as Director of the Ninth Board of Directors of CSG was deliberated on and approved. Therefore, Mr.Wang Jian was removed from his office as Director.The Company convened an interim meeting of the Ninth Board of Directors on 15 August 2022, at which Proposal to Remove Mr.Wang Jian from His Office as Chief Executive Officer and Authorize Mr. He Jin, Executive Vice President, to Act as ChiefExecutive Officer was reviewed and approved. Therefore, Mr. Wang Jian was removed from his office as Chief Executive Officer.The Board of Directors of the Company received a written resignation report submitted by Independent Director Mr. Xu Nianhangon 5 September 2022. Mr. Xu Nianhang resigned as the Company’s Independent Director due to relevant regulations of his unitand personal career reasons. Mr. Xu Nianhang’s resignation report took effect on 25 November 2022.The Board of Directors of the Company received a written resignation report submitted by Independent Director Mr. Zhu Guilongon 23 December 2022. Mr. Zhu Guilong resigned as the Company’s Independent Director due to personal career reasons. Mr. ZhuGuilong’s resignation report took effect on 16 March 2023.
Changes in directors, supervisors and senior executives of the company
√Applicable □ Not applicable
Name
| Name | Position | Type | Date | Reason |
| Shen Chengfang | Director | Be elected | 2022-08-03 | By election of Director |
| Zhang Min | Independent Director | Be elected | 2022-11-25 | By election of Independent Director |
| Shen Yunqiao | Independent Director | Be elected | 2023-03-16 | By election of Independent Director |
| He Jin | Executive Vice President | Appointment | 2022-05-16 | Appointment of Executive Vice President |
| Acting CEO | Appointment | 2022-08-15 | The Chief Executive Officer is vacant, and Mr. He Jin, Executive Vice President, temporarily acts as the Chief Executive Officer | |
| Wang Wenxin | Vice President and Chief Financial Officer | Appointment | 2022-05-16 | Appointment of Vice President and Chief Financial Officer |
| Acting Secretary of the Board of Directors | Appointment | 2022-07-08 | During the vacancy of the Secretary of the Board of Directors, Ms. Wang Wenxin, Vice President and Chief Financial Officer, temporarily acted as the Secretary of the Board of Directors | |
| Acting Secretary of the Board of Directors | Resignation upon expiration of term | 2022-09-26 | Expiration of the term for acting as the Secretary of the Board of Directors | |
| Chen Chunyan | Secretary of the Board | Appointment | 2022-09-26 | Appointment of Secretary of the Board of Directors |
| Zhang Jinshun | Director | Post leaving | 2022-06-28 | Resignation voluntarily |
| Wang Jian | Director | Post leaving | 2022-08-03 | Be dismissed |
| CEO | Dismissed | 2022-08-15 | Be dismissed | |
| Xu Nianhang | Independent Director | Post leaving | 2022-11-25 | Resignation voluntarily |
| Zhu Guilong | Independent Director | Post leaving | 2023-03-16 | Resignation voluntarily |
| Yang Xinyu | Secretary of the Board | Dismissed | 2022-07-02 | Resignation voluntarily |
2. Post-holding
Major professional backgrounds and working experience of directors, supervisors and senior executives and their majorresponsibilities in the Company at presentChen Lin: At present, she is Chairman of the Supervisory Committee of Foresea Life Insurance Co., Ltd. and Chairman of theBoard of the Company.Shen Chengfang: He took the posts of Chief Actuary of Ping An Life Insurance Company of China, Ltd. and Chief Actuary andDeputy General Manager of Foresea Life Insurance Co., Ltd. He is now General Manager and Executive Director of Foresea LifeInsurance Co., Ltd. Concurrently, he is Director of the Company.Zhu Qianyu: She is now an associate professor and a supervisor of masters at the Renmin University of China and a researcher at
the Institute for Rural Economy and Finance, Institute for National Development and Strategies, and Institute for Carbon Peak andNeutrality of the Renmin University of China. She has undertaken more than ten research projects funded by the National NaturalScience Foundation of China, the National Social Science Fund of China, the Social Science Fund of Beijing, the NationalDevelopment and Reform Commission, the Ministry of Science and Technology of the People’s Republic of China, and theMinistry of Industry and Information Technology of the People’s Republic of China, and had over 50 papers published by foreignSSCI and SCI journals and domestic journals. Additionally, her scientific research achievements won the first, second, and thirdprizes for social science research achievements from the National Ethnic Affairs Commission of the People’s Republic of China,the third prize for excellent results from the National Bureau of Statistics, the second prize in the 13th Beijing OutstandingAchievement Award in Philosophy and Social Science, and the third prize in the Award for Excellent Achievements in ScientificResearch in Institutes of Higher Education of the Ministry of Education (Humanities and Social Science). She is serving as aproject training and evaluation expert at the World Bank, the National Rural Revitalization Administration, and the Head Office ofAgricultural Bank of China, and a reviewer of the National Natural Science Foundation of China. She is also Independent Directorof Kingfa SCI.&TECH. Co., Ltd., Chongqing Brewery Co., Ltd., and the Company.Zhang Min: He served as a lecturer, an associate professor, a supervisor of doctors, and Deputy Director of the Department ofAccounting of Renmin Business School at the Renmin University of China. He is now a professor, a supervisor of doctors, andDirector of the Department of Accounting of Renmin Business School at the Renmin University of China. Concurrently, he isIndependent Director of SDIC Capital Co., Ltd., Beijing SPC Environment Protection Tech Co., Ltd., BYD Co., Ltd., and theCompany.Shen Yunqiao: He served as an assistant professor at the Faculty of Law, Macau University of Science and Technology, and a legaladviser for Guangzhou Nansha New Zone and the China (Guangdong) Pilot Free Trade Zone Nansha Area. He is now an associateprofessor and a supervisor of doctors at the Faculty of Law and Director of the Research Centre for Arbitration and DisputeResolution, Macau University of Science and Technology. He is also Independent Director of the Company. Concurrently, he isIndependent Director of Guangdong Delian Group Co., Ltd. and Shenzhen Utimes Automation Equipment Company Limited,Director of the Commercial Law Institute of China Law Society and Legislative Council Institute of China Law Society, an off-campus supervisor of postgraduates and a researcher of the Asia-Pacific Institute of Law, Renmin University of China, DeputyDirector of the Asia-Pacific Arbitration Research Committee of the Asia-Pacific Institute of Law, Renmin University of China, anoverseas expert of Benchmark Chambers International & Benchmark International Mediation Centre, Deputy Secretary General ofthe Law Committee of the Council for the Promotion of Guangdong-Hong Kong-Macao Cooperation, a member of the 100-Member Group of the Shandong Foreign Arbitration Service of the Department of Justice, Shandong, Executive Director andDeputy Secretary General of Macau Association for Legal Professionals, an arbitrator of the Consumer Mediation and ArbitrationCentre, Macao SAR Government Consumer Council, and Vice Chairman of Renmin University of China Alumni Association ofMacao. Moreover, he is an arbitrator of more than 20 arbitration institutions, including the China International Economic andTrade Arbitration Commission, Beijing Arbitration Commission, Shanghai International Arbitration Centre, Shanghai ArbitrationCommission, Shenzhen Court of International Arbitration, Guangzhou Arbitration Commission, Zhuhai Court of InternationalArbitration, Foshan Arbitration Commission, Hainan International Arbitration Court, Nanjing Arbitration Commission, QingdaoArbitration Commission, and Xi’an Arbitration Commission.Cheng Jinggang: He took the posts of Senior Credit Analyst of the Fixed Income Department of Funde Sino Life Insurance Co.,Ltd. and Senior Manager of the Credit Evaluation Department of Sino Life Asset Management Co., Ltd. At present, he is DeputyDirector of the Asset Management Centre of Foresea Life Insurance Co., Ltd. and Director of the Company.
Yao Zhuanghe: He took the posts of Deputy Director of the Department of Food Science and Engineering at South ChinaUniversity of Technology, Deputy General Manager and General Manager of Guangdong United Food Enterprise Centre, Directorof Guangdong Yuehua International Trade Group, Deputy General Manager of Guangdong Guangye Economic DevelopmentGroup, Director and General Manager of Guangdong Guangye Investment Consulting Co., Ltd., Director and Deputy PartyCommittee Secretary of Guangdong Guangye Environmental Construction Group (former Guangdong Guangye Real EstateGroup). He is now Director of the Company.Cheng Xibao: She took the posts of Manager, Vice President, and Executive Vice President of the Financial Department andPresident Assistant, Vice President, and Senior Vice President of Shenzhen Baoneng Investment Group Co., Ltd., Director ofForesea Life Insurance Co., Ltd., Supervisor of Guizhou Baoneng Automobile Co., Ltd., and Executive Vice President of BaonengCity Development and Construction Group Co., Ltd. At present, she is Senior Vice President of Shenzhen Baoneng InvestmentGroup Co., Ltd., Vice President of Baoneng Motor Group Co., Ltd., Supervisor of Xinjiang Qianhai United Property & CasualtyInsurance Co., Ltd., and Director of Baoneng Motor Group Co., Ltd., Qoros Automobile Co., Ltd., Shenzhen Baoneng Travel Co.,Ltd., and the Company.Li Jianghua: He took the posts of Assistant General Manager of the Operation Service Department and Deputy General Managerof the Public Development Department of the Information Management Centre of Foresea Life Insurance Co., Ltd., DeputyGeneral Manager of the IT Department of Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd., and General Managerof the Integrated Financial Development Department of the Information Management Centre of Foresea Life Insurance Co., Ltd.At present, he is Chairman of the Supervisory Committee and Director of the Information Management Department of theCompany.Meng Lili: At present, she is Deputy Director of the Human Resources Centre, General Manager of the Office of the Board ofDirectors and Employee Supervisor of Foresea Life Insurance Co., Ltd., and Supervisor of the Company.Dai Pingsheng: He took the posts of Financial Manager of Dongguan CSG Solar Glass Co., Ltd., Deputy Manager, AssistantDirector and Deputy Director of the Financial Management Department of CSG, and Vice President of the Architectural GlassDivision of CSG. At present, he is Assistant President, Director of the Strategic Investment Department, and Employee Supervisorof the Company.He Jin: He took the posts of General Manager of Shenzhen CSG Float Glass Co., Ltd., Vice President of Float Glass Division,General Manager of Dongguan CSG Solar Glass Co., Ltd., General Manager of Chengdu CSG Glass Co., Ltd., General Managerof Qingyuan CSG Energy Saving New Materials Co., Ltd., Assistant President of the Company and President of Flat GlassDivision, and Vice President of the Company. He is Secretary of the Party Committee, Acting Chief Executive Officer, ExecutiveVice President, and Chairman of the Management Committee of the Company.Wang Wenxin: She took the posts of Assistant President, Director of the Financial Management Department, and Executive VicePresident of CSG. She is Vice President and Chief Financial Officer of the Company.Chen Chunyan: She took the posts of Director of the Stock Affairs Department, Stock Affairs Manager, and Assistant Director ofthe Office of the Board of Directors of CSG. She is Secretary of the Board of Directors and Director of the Office of the Board ofDirectors of the Company.Post-holding in shareholder’s unit
√Applicable □ Not applicable
Name
| Name | Name of shareholder’s unit | Position in shareholder’s unit | Start dated of | End date of | Received remuneration from |
office term
| office term | office term | shareholder’s unit or not | |||
| Chen Lin | Foresea Life Insurance Co., Ltd. | Chairman of Supervisory Board | April 2012 | Yes | |
| Shen Chengfang | Foresea Life Insurance Co., Ltd. | General Manager | August 2018 | Yes | |
| Executive Director | July 2019 | ||||
| Cheng Jinggang | Foresea Life Insurance Co., Ltd. | Deputy Director of the Asset Management Center | April 2012 | Yes | |
| Meng Lili | Foresea Life Insurance Co., Ltd. | Deputy Director of Human Resources Center, General Manager of the Office of the Board of Directors, Employee Supervisor | June 2013 | Yes | |
| Note of post-holding in shareholder’s unit | N/A | ||||
Post-holding in other units? Applicable □ Not applicable
| Name | Unit name | Positions in other units | Date of commencement of office term | Date of termination of office term | Receive remuneration from other units or not |
| Zhu Qianyu | Renmin University of China | Associate Professor | March 2010 | Yes | |
| Kingfa SCI.&TECH. Co., Ltd. | Independent Director | January 2021 | Yes | ||
| Chongqing Brewery Co., Ltd. | Independent Director | May 2022 | Yes | ||
| Zhang Min | Renmin University of China | Professor | June 2010 | Yes | |
| BYD Co., Ltd. | Independent Director | September 2020 | Yes | ||
| SDIC Capital Co., Ltd. | Independent Director | September 2019 | Yes | ||
| Beijing SPC Environment Protection Tech Co., Ltd. | Independent Director | October 2019 | Yes | ||
| Shen Yunqiao | Macau University of Science and Technology | Associate Professor | July 2015 | Yes | |
| Guangdong Delian Group Co., Ltd. | Independent Director | May 2021 | Yes | ||
| Shenzhen Utimes Automation Equipment Company Limited | Independent Director | January 2022 | Yes | ||
| Cheng Xibao | Shenzhen Baoneng Investment Group Co., Ltd. | Senior Vice President | November 2020 | Yes | |
| Baoneng Motor Group Co., Ltd. | Director | March 2017 | No | ||
| Vice President | September 2022 | No | |||
| Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd. | Supervisor | September 2016 | No | ||
| Qoros Automobile Co., Ltd. | Director | December 2017 | No | ||
| Shenzhen Baoneng Travel Co., LTD. | Director | September 2019 | No |
Baoneng City Development andConstruction Group Co., Ltd.
| Baoneng City Development and Construction Group Co., Ltd. | Executive Vice President | October 2018 | August 2022 | No | |
| Note of post-holding in other units | N/A | ||||
Punishment of securities regulatory authority in the last three years to the Company’s current and retired directors, supervisors andsenior management during the report period
□ Applicable √ Not applicable
3. Remuneration of directors, supervisors and senior executives
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
1. Decision-making procedures: The allowances for independent directors, external directors from non-shareholder’s unit areplanned and proposed by the Remuneration &Assessment Committee of the Board and approved by the Shareholders’ GeneralMeeting after deliberation of the Board. Remuneration for senior executives is proposed by the Remuneration &AssessmentCommittee of the Board and decided by the Board after discussion.
2. Confirmation basis of remuneration: The allowances for independent directors and external directors are confirmed based onindustry standards and real situation of the Company. The remuneration for senior executives implements floating reward mechanismwith reference to basic salary and business performance. Bonus for performance rewards is withdrawal by proportion quarterlyaccording to return on equity and based on the total net profit after taxation.
3. Actual remuneration payment: The allowances for each of the Company’s independent directors, external director from non-shareholder’s unit are RMB 0.3 million per year, paid by actual month of service. The total remuneration for directors, supervisorand senior executives in the report period was RMB 25.7764 million.Remuneration of directors, supervisors and senior executives of the company during the report period
Unit: RMB 0,000
| Name | Title | Sex | Age | Post-holding status | Total remuneration obtained from the Company before taxation | Received remuneration from related party of the Company or not |
| Chen Lin | Chairman of the Board | Female | 51 | Currently in office | Yes | |
| Shen Chengfang | Director | Male | 57 | Currently in office | Yes | |
| Zhu Qianyu | Independent Director | Female | 48 | Currently in office | 30 | No |
| Zhang Min | Independent Director | Male | 46 | Currently in office | 2.5 | No |
| Shen Yunqiao | Independent Director | Male | 47 | Currently in office | No | |
| Cheng Jinggang | Director | Male | 42 | Currently in office | Yes | |
| Yao Zhuanghe | Director | Male | 64 | Currently in office | 30 | No |
| Cheng Xibao | Director | Female | 41 | Currently in office | Yes | |
| Li Jianghua | Chairman of the Supervisory Board, Employee Supervisor | Male | 46 | Currently in office | 166.12 | No |
| Meng Lili | Supervisor | Female | 45 | Currently in office | Yes | |
| Dai Pingsheng | Employee Supervisor | Male | 41 | Currently in office | 132.44 | No |
He Jin
| He Jin | Secretary of the Party Committee,Vice president，executive vice president | Male | 51 | Currently in office | 864.82 | No |
| Wang Wenxin | Vice President, Chief Financial Officer | Female | 45 | Currently in office | 563.68 | No |
| Chen Chunyan | Secretary of the Board | Female | 41 | Currently in office | 44.7 | No |
| Zhang Jinshun | Director | Male | 58 | Leaving office | ||
| Wang Jian | Director, CEO | Male | 59 | Leaving office | 419.7 | No |
| Xu Nianhang | Independent Director | Male | 45 | Leaving office | 27.5 | No |
| Zhu Guilong | Independent Director | Male | 59 | Leaving office | 30 | No |
| Yang Xinyu | Secretary of the Board | Male | 43 | Leaving office | 266.18 | No |
| Total | -- | -- | -- | -- | 2,577.64 | -- |
VI. Directors’ performance of duties during the report period
1. Board of directors in the report period
| Session | Meeting date | Date of disclosure | Resolution of the meeting |
| The Interim Meeting of the Ninth Board of Directors | January 28, 2022 | January 29, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-001) |
| The Interim Meeting of the Ninth Board of Directors | March 28, 2022 | March 29, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-006) |
| The Eighth Meeting of the Ninth Board of Directors | April 21, 2022 | April 25, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of The Eighth Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-008) |
| The Ninth Meeting of the Ninth Board of Directors | April 28, 2022 | April 29, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of The Ninth Meeting of the Ninth Board of Directors” (Announcement No.: 2022-016) |
| The Interim Meeting of the Ninth Board of Directors | May 16, 2022 | May 18, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-021) |
| The Interim Meeting of the Ninth Board of Directors | June 22, 2022 | June 23, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-024) |
| The Interim Meeting of the Ninth Board of Directors | June 28, 2022 | -- | The Proposal on Adjusting the Investment Quota of Anhui Fengyang Low iron (Ultra white) quartz sand Production Base Project was reviewed and passed |
| The Interim Meeting of the Ninth Board of Directors | July 8, 2022 | July 12, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of |
Directors"”(Announcement No.: 2022-033)
| Directors"”(Announcement No.: 2022-033) | |||
| The Interim Meeting of the Ninth Board of Directors | July 16, 2022 | July 18, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-038) |
| The Interim Meeting of the Ninth Board of Directors | August 15, 2022 | August 16, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-049) |
| The tenth Meeting of the Ninth Board of Directors | August 29, 2022 | August 31, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of The tenth Meeting of the Ninth Board of Directors” (Announcement No.: 2022-050) |
| The Interim Meeting of the Ninth Board of Directors | September 1, 2022 | -- | The Proposal on Donation Matters was reviewed and approved |
| The Interim Meeting of the Ninth Board of Directors | September 9, 2022 | September 14, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-053) |
| The Interim Meeting of the Ninth Board of Directors | September 26, 2022 | September 27, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-055) |
| The Interim Meeting of the Ninth Board of Directors | October 23, 2022 | October 25, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-057) |
| The Interim Meeting of the Ninth Board of Directors | November 8, 2022 | November 9, 2022 | For details, please refer to Juchao Website (www.cninfo.com.cn): “Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors"”(Announcement No.: 2022-061) |
2. Attendance of directors at the board of directors and shareholders’meeting
| Attendance of directors at the board of directors and shareholders' meeting | |||||||
| Name of director | Number of board meetings that should be attended in this report period | Number of Spot Attendances | Number of Meetings Attended by Communication | Number of attendances of board meeting by proxy | Number of absence | Failure to personally attend board meetings successively twice | Number of attendance of General Meeting |
| Chen Lin | 16 | 1 | 15 | 0 | 0 | No | 5 |
| Shen Chengfang | 7 | 0 | 7 | 0 | 0 | No | 1 |
| Zhu Qianyu | 16 | 0 | 16 | 0 | 0 | No | 5 |
| Zhang Min | 0 | 0 | 0 | 0 | 0 | No | 1 |
| Zhu Guilong | 16 | 0 | 16 | 0 | 0 | No | 4 |
Cheng Jinggang
| Cheng Jinggang | 16 | 1 | 15 | 0 | 0 | No | 5 |
| Yao Zhuanghe | 16 | 0 | 16 | 0 | 0 | No | 5 |
| Cheng Xibao | 16 | 0 | 16 | 0 | 0 | No | 5 |
| Zhang Jinshun | 7 | 0 | 7 | 0 | 0 | No | 1 |
| Wang Jian | 9 | 1 | 8 | 0 | 0 | No | 3 |
| Xu Nianhang | 16 | 0 | 16 | 0 | 0 | No | 5 |
Note to failure to attend the board meeting successively twiceNot applicable
3. Objections raised by directors on matters related to the Company
Whether directors raised any objection to the relevant matters of the Company? Yes □ No
| Name of the director | Matter to which the director objected | Details of the objection |
| Cheng Xibao | Proposal for the By-election of Director(s) for the Ninth Board of Directors of the Company, Proposal to Convene the Third Extraordinary General Meeting of 2022, and Proposal to Authorize Wang Wenxin, Vice President and Financial Director of the Company, to Act as the Secretary of the Board of Directors reviewed at the interim meeting of the Ninth Board of Directors on 8 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-033) dated 12 July 2022 at http://www.cninfo.com.cn. |
| Yao Zhuanghe | Proposal for the By-election of Director(s) for the Ninth Board of Directors of the Company and Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 8 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-033) dated 12 July 2022 at http://www.cninfo.com.cn. |
| Wang Jian | Proposal for the By-election of Director(s) for the Ninth Board of Directors of the Company and Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 8 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-033) dated 12 July 2022 at http://www.cninfo.com.cn. |
| Zhu Guilong | Proposal for the By-election of Director(s) for the Ninth Board of Directors of the Company and Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 8 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-033) dated 12 July 2022 at http://www.cninfo.com.cn. |
| Cheng Xibao | Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 16 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-038) dated 18 July 2022 at http://www.cninfo.com.cn. |
| Yao Zhuanghe | Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 16 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-038) dated 18 July 2022 at http://www.cninfo.com.cn. |
Wang Jian
| Wang Jian | Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 16 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-038) dated 18 July 2022 at http://www.cninfo.com.cn. |
| Zhu Guilong | Proposal to Convene the Third Extraordinary General Meeting of 2022 reviewed at the interim meeting of the Ninth Board of Directors on 16 July 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-038) dated 18 July 2022 at http://www.cninfo.com.cn. |
| Cheng Xibao | Proposal to Remove Mr. Wang Jian from His Office as Chief Executive Officer and Authorize Mr. He Jin, Executive Vice President, to Act as Chief Executive Officer reviewed at the interim meeting of the Ninth Board of Directors on 15 August 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-049) dated 16 August 2022 at http://www.cninfo.com.cn. |
| Cheng Xibao | Proposal for the By-election of Member(s) of the Special Committees under the Ninth Board of Directors reviewed at the interim meeting of the Ninth Board of Directors on 9 September 2022. | A negative vote was cast. For reasons, please refer to the Announcement on Resolution of the Interim Meeting of the Ninth Board of Directors (Announcement No.: 2022-053) dated 14 September 2022 at http://www.cninfo.com.cn. |
| Explanations of the directors for their objections | For details, please refer to the announcements disclosed by the Company at http://www.cninfo.com.cn. | |
4. Other notes to duty performance of directors
Whether the directors’ suggestions on the Company have been adopted? Yes □ NoNotes to the adoption of or a failure to adopt directors’ suggestions on the CompanyDuring the report period, the current directors of the Company strictly followed the Company Law, Securities Law, ShenzhenStock Exchange Listing Rules, Guidelines for Self-discipline and Supervision of Listed Companies No. 1-Standardized Operationof Listed Companies on the Main Board, Rules for the Independent Directors of Listed Companies and other laws and regulations,as well as the Articles of Association and other relevant systems, to attend the Board of Directors and General Meeting ofShareholders of the Company, conscientiously perform duties, and provide comments or suggestions on decisions for theCompany’s development. The Company respected and listened to directors’ comments and suggestions and implemented themaccording to the final resolutions of the Board of Directors and the General Meeting of Shareholders.VII. Duty performance of special committees under the Board of Directors in the reportperiod
| Name of the Committee | About the members | Number of meetings held | Meeting date | Meeting content | Important comments and suggestions proposed | Other duty performance | Specific objections (if any) |
| Strategy Committee | Chairman of the Committee: Chen Lin. Committee | 5 | 25 March 2022 | The proposal Matters on the Dongguan Solar G6/G7 Line Process and Equipment Upgrading | Approved. |
members: WangJian, ChengJinggang, ZhuGuilong, and ZhuQianyu.
| members: Wang Jian, Cheng Jinggang, Zhu Guilong, and Zhu Qianyu. | Project was reviewed and approved. | ||||||
| 11 April 2022 | The proposals Proposal on Withdrawing Provisions for Asset Impairment, Proposal on Profit Distribution for 2021, Proposal on the Development of Asset Pool Business in 2022, and Proposal for the 2022 Guarantee Plan were reviewed and approved. | Approved. | |||||
| 13 May 2022 | The proposal Matters on Using Self-owned Funds for Investment and Wealth Management was reviewed and approved. | Approved. | |||||
| 19 June 2022 | The proposal Matters on Build a New High-purity Crystalline Silicon Project with an Annual Output of 50,000 Tons in Haixi Prefecture, Qinghai Province was reviewed and approved. | Approved. | |||||
| Chairman of the Committee: Chen Lin. Committee members: Shen Chengfang, Cheng Jinggang, Zhu Guilong, and Zhu Qianyu. | 7 November 2022 | The proposals Matters on the Xianning Float No. 2 Production Line (700 tons/day) Technology Upgrade and Transformation Project, Matters on the Anhui Fengyang 37.6MW Distributed Photovoltaic Power Generation Project, Matters on the Chengdu Float Three Sets of Standby Environmental Protection Facilities for Flue Gas Treatment Construction Project, and Matters on Increasing Capital Injected to Wholly-Owned Subsidiaries were reviewed and approved. | Approved. | ||||
| Audit Committee | Chairman of the committee: Xu Nianhang. Committee members: Zhu Guilong, Zhu Qianyu, Chen Lin, and Cheng Xibao. | 4 | 11 April 2022 | The reports Financial Final Report 2021 and Internal Control Evaluation Report 2021 were reviewed and approved. | Approved. | ||
| 18 April 2022 | Matters on the Changes in Accounting Policies and Matters on the First Quarter Report 2022 were reviewed and approved. | Approved. |
22 August2022
| 22 August 2022 | Matters on the Semi-annual Financial Report 2022 was reviewed and approved. | Approved. | |||||
| 22 October 2022 | Matters on the Third Quarter Report 2022 and Matters on the Renewal of the Appointment of the Audit Institution of 2022 were reviewed and approved. | Approved. | |||||
| Remuneration and Assessment Committee | Chairman of the committee: Zhu Guilong. Committee members: Xu Nianhang, Zhu Qianyu, Chen Lin, and Cheng Jinggang. | 2 | 25 January 2022 | The proposal Proposal for Allowances for External Directors (except for Those Serving in Shareholders’ Units) was reviewed and approved. | Approved. | ||
| 11 April 2022 | The Matters on Auditing the Remuneration of Directors, Supervisors and Senior Executives of CSG in 2021 was reviewed and approved. | Approved. | |||||
| Nomination Committee | Chairman of the committee: Zhu Qianyu Committee members: Zhu Guilong, Xu Nianhang, Chen Li, and Wang Jian | 3 | 11 April 2022 | Work of Directors in 2021 was reviewed and approved. | Approved. | ||
| 5 July 2022 | Matters on the By-election of Director(s) for the Ninth Board of Directors of the Company was reviewed and approved. | Approved. | |||||
| Chairman of the committee: Zhu Qianyu Committee members: Zhu Guilong, Xu Nianhang, Chen Lin, and Shen Chengfang. | 7 November 2022 | Matters on the By-election of Independent Director(s) for the Ninth Board of Directors of the Company was reviewed and approved. | Approved. |
VIII. Work Summary of the Supervisory Committee
Did the Supervisory Committee find any risk involved in performing the supervision activities in the report period
□ Yes √ No
The Supervisory Committee had no objection to the supervision matters during the report period.IX. Employees
1. Number, Professional Composition and Education Background of Employees
| Number of employees in the parent company (person) | 487（Note） |
| Number of employees in major subsidiaries of the Company | 13,772 |
(person)
| (person) | |
| Total number of employees (person) | 14,259 |
| Total number of employees received salaries in the period (person) | 14,259 |
| Number of retired employees whose costs borne by the parent company and its main subsidiaries (person) | 0 |
| Professional composition | |
| Category of profession composition | Number of profession composition (person) |
| Production personnel | 9,879 |
| Salesman | 826 |
| Technician | 2,284 |
| Financial personnel | 150 |
| Administrative personnel | 1,120 |
| Total | 14,259 |
| Education background | |
| Category of education background | Number (person) |
| Doctor | 8 |
| Master | 168 |
| Undergraduate | 3,138 |
| Junior college | 2,717 |
| Degree below junior college | 8,228 |
| Doctor | 14,259 |
Note: Among them, there are 304 employees sent by the headquarters to the subsidiaries.
2. Staff remuneration policy
In 2022, the Company continue to emphasize the principle of “Performance Orientation” in compensation management,through strengthening the concept of organizational performance and strengthening the application of performanceresults, we advocate that salary incentives should be inclined to high-performing organizations and high-performingindividuals, to improve the work enthusiasm of employees, and then improve the overall performance of theorganization, to achieve the business objectives.
3. Staff training plan
The Company has always attached great importance to the talent team construction and staff training and development.Every year, the Company sets up a special fund for the employees’ skills training, capacity development and qualityimprovement. The Company has established a comprehensive training and development system for all kinds ofemployees, and developed personalized training and development systems for senior, middle and grass-roots employees,so as to stimulate the drive of employees, enhance the competitiveness of the enterprise, and provide a strong guaranteefor the development of CSG Group. Based on the strategy of sustainable development of human resources, theCompany will continue to deepen the scientific and systematic operation of training and development, so as to energize,
promote management and increase benefits, and achieve a win-win situation for the growth of employees and thedevelopment of the enterprise.
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit Distribution and Reserve CapitalizationPreparation, implementation or adjustment of the policy for profit distribution, especially the policy for cash dividenddistribution in the report period
√Applicable □ Not applicable
The profit distribution plan for 2021 was approved by Annual General Shareholders’ Meeting of 2021 held on 16 May2022 which distributed distributing cash dividend of RMB 2 (tax included) for every 10 shares to all shareholders.Notice of the distribution was published on China Securities Journal, Securities Times, Shanghai Securities News andHong Kong Commercial Daily on 16 June 2022, and the profit had been distributed.
Special explanation on cash dividend policy
| Special explanation on cash dividend policy | |
| Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) | Satisfy regulations of General Meeting or requirement of Article of Association (Yes/No) |
| Well-defined and clearly dividend standards and proportion (Yes/No) | Well-defined and clearly dividend standards and proportion (Yes/No) |
| Completed relevant decision-making process and mechanism (Yes/No) | Completed relevant decision-making process and mechanism (Yes/No) |
| Independent directors perform duties completely and play a proper role (Yes/No) | Independent directors perform duties completely and play a proper role (Yes/No) |
| Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protected (Yes/No) | Minority shareholders have ample opportunities and their legitimate rights and interests are effectively protected (Yes/No) |
| Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Yes/No) | Condition and procedures are compliance and transparent while the cash bonus policy adjusted or changed (Yes/No) |
The Company gains profits in the report period and the retained profit of parent company is positive but no plan ofcash dividend proposed
□ Applicable √ Not applicable
Proposal of profit distribution preplan or share conversion from capital public reserve in the report period
√Applicable □ Not applicable
| Distributing bonus shares for every 10 shares (share) | 0 |
| Distributing cash dividend for every 10 shares (tax included) (RMB) | 1.5 |
| Shares added for every 10-share base (Share) | 0 |
| Equity base for distribution preplan (share) | 3,070,692,107 |
| Total amount distribution in cash (RMB) (tax included) | 460,603,816 |
| Cash dividend amount in other ways (such as repurchasing shares) (RMB) | 0 |
| Total cash dividends (including other methods) (RMB) | 460,603,816 |
| Profit available for distribution (RMB) | 1,904,753,271 |
| Cash distributing accounted for the proportion of the total amount of profit distribution (including other methods) | 100% |
Particular about cash dividend in the period
| Particular about cash dividend in the period |
| If the Company’s development stage is not easy to distinguish but there are major capital expenditure arrangements, when the profit is distributed, the proportion of cash dividends in this profit distribution should be at least 20%. |
| Details of proposal of profit distribution preplan or share conversion from capital public reserve |
| According to the financial report audited by Asia Pacific (Group) CPAs (special general partnership), the net profit attributable to equity holders of the Company in consolidated statement was RMB 2,037,202,500 in 2022, and the net profit of the parent company’s financial statements was RMB 837,464,913. Since cash dividend distribution bases on the distributable profit of parent company, the Company took 10% of the net profit as stationary surplus reserve which was RMB 83,746,491 based on the net profit RMB837,464,913 of parent company statement 2022. The allocation for Shareholders in 2022was RMB 1,904,753,271. The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash dividend of RMB 1.5 yuan (tax included) for every 10 shares to all shareholders based on 3,070,692,107 shares of the total currently share capital, and the total amount distribution is RMB 460,603,816 (including tax).The actual amount of the cash dividend distributed will be determined according to the total share capital on the registration date of the Company’s implementation of the profit distribution plan. The profit distribution plan complies with the “Company Law”, “Listed Company Supervision Guidelines No. 3-Cash Dividends for Listed Companies”(Revised in 2022), the “Articles of Association"”and the Company’s shareholder return plan, and other relevant regulations. It is in line with the Company’s actual situation and future development plans, as well as taking into account the interests of shareholders. The above profit distribution proposal must be submitted to the 2022 Annual General Meeting of Shareholders. |
XI. Implementation of the Company’s Equity Incentive Plan, Employee Stock OwnershipPlan or Other Employee Incentive Measures
□ Applicable √ Not applicable
During the report period, the Company had no equity incentive plan, employee stock ownership plan or otheremployee incentive measures and the implementation.XII. Construction and Implementation of the Internal Control System during the ReportingPeriod
1. Construction and Implementation of the Internal Control System
During the report period, the Company established a sound and complete internal control management system inaccordance with the requirements of the Company Law, the Securities Law, the Basic Norms for Enterprise InternalControl and other internal control regulatory rules, oriented by risk management, and operated it effectively. Itstrengthened and standardized its internal control which ensured the standardized operation of the Company andimproved the management level and efficiency of the Company, promoting the sustainable development of theCompany and protecting the legitimate rights and interests of investors.
2. Particular case found involving material defects in the internal control during the reporting period
□Yes √No
XIII. Management and Control of the Subsidiaries during the Report PeriodDuring the report period, by establishing an effective internal control mechanism and implementing the internalcontrol management plan, the internal operation supervision of subsidiaries was strengthened; by establishing a soundinternal control system of subsidiaries, the implementation and continuous improvement was promoted; by carryingout process monitoring and special evaluation, the process risk management of subsidiaries was strengthened; byorganizing the internal control publicity and training of subsidiaries, a good internal control environment was created;by supervising the key businesses of subsidiaries, the legal compliance, reliability of financial reports, asset safetyand operation efficiency of subsidiaries was reasonable guaranteed.XIV. Internal Control Self-assessment Report or Internal Control Audit Report1.Particulars about significant defects found in the internal control during the report period
1. Self-assessment Report of the Internal Control
Disclosure date of full text of self-appraisal report of internal control
| Disclosure date of full text of self-appraisal report of internal control | April 26, 2023 | |
| Disclosure index of full text of self-appraisal report of internal control | More details found in “Report of Internal Control of CSG for year of 2022” published on Juchao Website (www.cninfo.com.cn) | |
| The ratio of the total assets of the units included in the scope of evaluation to the total assets of the Company’s consolidated financial statements | 93% | |
| The ratio of the operating income of the units included in the scope of evaluation to the operating income of the Company’s consolidated financial statements | 97% | |
| Standards of Defects Evaluation | ||
| Category | Financial Reports | Non-financial Reports |
| Qualitative criteria | Major defects: A. Fraud of directors, supervisors and senior management; B. Ineffective control environment; C. Invalid internal supervision; D. Major internal control defects found and reported to the management but haven’t been corrected after a reasonable time; E. Material misstatements are found by the external audit but haven’t been found in the process of internal control; F. Financial reports submitted during the reporting period completely cannot meet the needs and are severely punished by regulatory agencies; G. Other major defects that may affect | Major defects: A. Major decision-making mistakes caused by decision-making process of key business; B. Serious violation of state laws and regulations; C. Serious brain drain of senior and middle management and or personnel at key technological posts; D. Major or significant defects found in the internal control evaluation have not been rectified and reformed; E. The company’s major negative news frequently appears on media; Significant defects: A. Big deviation of execution caused by executive routine of key business; |
the report users’ correct judgment.Significant defects:
A. Defects or invalidation of importantfinancial control procedures;B. Significant misstatements are foundby the external audit but haven’t beenfound in the process of internal control;C. Financial reports submitted duringthe reporting period have mistakesfrequently;D. Other significant defects that mayaffect the report users’ correctjudgment.Common defects: Other controldefects except for major defects andsignificant defects.
| the report users’ correct judgment. Significant defects: A. Defects or invalidation of important financial control procedures; B. Significant misstatements are found by the external audit but haven’t been found in the process of internal control; C. Financial reports submitted during the reporting period have mistakes frequently; D. Other significant defects that may affect the report users’ correct judgment. Common defects: Other control defects except for major defects and significant defects. | B. Regulatory authorities impose large amount of fines because the violation of laws and regulations; C. Defects or invalidation of important business’ internal control procedures; Common defects: Other control defects except for major defects and significant defects. | |
| Quantitative standard | Major defects: A. Amount of net profit affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 3% of net profit and the absolute amount is no less than 30 million yuan; B. Amount of assets and liabilities affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 1% of total assets. Significant defects: A. Amount of net profit affected by misstatements (based on consolidated statements): not belong to major defects and amount affected by misstatements is equal to or greater than 2% of net profit and the absolute amount is no less than 20 million yuan; B. Amount of assets and liabilities affected by misstatements (based on consolidated statements): amount affected by misstatements is equal to or greater than 0.5% of total assets but less than 1% of total assets. Common defects: Defects except for major and significant defects. | Major defects: A. Amount of direct property loss: the direct loss amount is equal to or greater than 30 million yuan; B. Group’s reputation: major negative news spreads in numerous business areas or is widely reported by national media and causes significant damages to the corporate reputation which takes more than six months to be restored. Significant defects: A. Amount of direct property loss: the direct loss amount is equal to or greater than 20 million yuan but less than 30 million yuan; B. Group's reputation: negative news spreads inside the industry or is reported or focused by local media and causes certain damages to the corporate reputation which takes more than three months but less than six months to be restored. Common defects: A. Amount of direct property loss: defects except for major and significant defects. B. Group’s reputation: negative news spreads within the group and causes minor damages to the corporate reputation which takes less than three months to be restored. |
| Amount of significant defects in financial reports | 0 | |
| Amount of significant defects in non-financial reports | 0 | |
| Amount of important defects in financial reports | 0 | |
| Amount of important defects in non-financial reports | 0 | |
2. Audit report of internal control
√Applicable □ Not applicable
Deliberations in Internal Control Audit Report
| Deliberations in Internal Control Audit Report | |
| According to Guidelines of Enterprise Internal Control Audit and the relevant requirements of CICPA auditing standards, Asia Pacific (Group) CPAs (special general partnership) (hereinafter referred to as AP) audited the effectiveness of internal control over financial statements of the Company up to 31 December 2022, issued AP Ya-Kuai- A-Zhuan-Zi （2023）01110007 Internal Control Audit Report and made the following opinions: AP thought that CSG Holding Co., Ltd. maintained effective internal control over financial statements in all major aspects according to the Fundamental Norms of Enterprise Internal Control and relevant rules on December 31, 2022. | |
| Disclosure of internal control audit report | Disclosure |
| Date of disclosing the internal control audit reports | April 26, 2023 |
| Disclosure index of internal control audit report | More details can be found in 2022 Internal Control Audit Report of CSG released on Juchao Website (www.cninfo.com.cn) |
| Type of the auditor’s opinion | Standard unqualified opinion |
| Whether there are major flaws in the non-financial report or not | No |
Whether the CPAs firm issued an Audit Report on Internal Control with non-standard opinion or not
□Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal Report fromthe Board or not
√ Yes □ No
XV. Rectification of the Problems Found in the Self-inspection during the Special Campaignto Improve the Governance of Listed Companies
Not Applicable
Section V. Environment and Social Responsibility
I. Major environmental issuesWhether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmentalprotection department? Yes □ NoEnvironmental 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, the Electronic Glass Working AirPollutant Emission Standard, the Integrated Emission Standard of Air Pollutants, the Sewage Integrated Emission Standards, theEnvironmental Noise Emission Standards at the Boundary of Industrial Enterprises and other national, industry and local pollutantdischarge 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 ofcompany orsubsidiary
| 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 | 16 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | Particulates: 20.49t | Particulates: 96.82t/a | N/A |
| Soot | ≤25mg/m? | Particulates: 20.49t | Particulates: 96.82t/a | |||||||
| SO2 | ≤200mg/m? | 181.61t | 636.5t/a | |||||||
| NOx | ≤350mg/m? | 403.36t | 1113.89t/a | |||||||
| Chengdu | Air | Dust | Contin | 15 | Production | ≤20mg/m? | Emission Standard of Air | Particulates | Particulates: | N/A |
CSG GlassCo., Ltd.
| CSG Glass Co., Ltd. | pollutants | uous/intermittent | plant area | Pollutants for Flat Glass Industry (GB26453-2011) | : 14.69t | 142.114t/a | ||||
| Soot | ≤20mg/m? | Particulates: 14.69t | Particulates: 142.114t/a | |||||||
| SO2 | ≤200mg/m? | 117.79t | 1136.917t/a | |||||||
| NOx | ≤350mg/m? | 464.58t | 1989.609t/a | |||||||
| Hebei CSG Glass Co., Ltd. | Air pollutants | Dust | Continuous/intermittent | 16 | Production plant area | ≤10mg/m? | Ultra Low Emission Standard of Air Pollutants for Flat Glass Industry (DB13/2168-2020) | Particulates: 4.23t | Particulates: 19.92t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 4.23t | Particulates: 19.92t/a | |||||||
| SO2 | ≤50mg/m? | 32.470t | 99.63t/a | |||||||
| NOx | ≤200mg/m? | 148.671t | 398.55t/a | |||||||
| Wujiang CSG Glass Co., Ltd. | Air pollutants | Dust | Continuous/intermittent | 39 | Production plant area | ≤15mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (GB26453-2011) | Particulates: 10.15t | Particulates: 76.91t/a | N/A |
| Soot | ≤15mg/m? | Particulates: 10.15t | Particulates: 76.91t/a | |||||||
| SO2 | ≤50mg/m? | 30.60t | 238.28t/a | |||||||
| NOx | ≤150mg/m? | 296.60t | 818.04t/a | |||||||
| Dongguan CSG Solar Glass Co., Ltd. | Air pollutants | Dust | Continuous/intermittent | 22 | Production plant area | ≤20mg/m? | Emission Standard of Air Pollutants for Flat Glass Industry (DB44-2159-2019) | Particulates: 3.38t | Particulates: 34.85t/a | N/A |
| Soot | ≤30mg/m? | Particulates: 3.38t | Particulates: 34.85t/a | |||||||
| SO2 | ≤400mg/m? | 90.81t | 300.99t/a | |||||||
| NOx | ≤550mg/m? | 140.43t | 535.67t/a | |||||||
| Hebei Panel Glass Co., Ltd. | Air pollutants | Dust | Continuous/intermittent | 5 | Production plant area | ≤30mg/m? | Emission Standard of Air Pollutants for Electronic Glass Industry (GB29495-2013) | Particulates: 0.206t | Particulates: 16.4225t/a | N/A |
| Soot | ≤10mg/m? | Particulates: 0.206t | Particulates: 16.4225t/a | |||||||
| SO2 | ≤50mg/m? | 1.66t | 87.7t/a | |||||||
| NOx | ≤200mg/m? | 6.53t | 105.1t/a | |||||||
| Xianning CSG Photovoltaic 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: 2.014t | Particulates: 17.656t/a | N/A |
| Soot | ≤15mg/m? | Particulates: 2.014t | Particulates: 17.656t/a | |||||||
| SO2 | ≤10mg/m? | 0.121t | 65.6t/a | |||||||
| NOx | ≤330mg/m? | 55.145t | 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 | 5.4t | 5.4t/a | |||||||
| Ammonia nitrogen | 0.244mg/L | 0.24t | 0.6t/a | |||||||
| Tianjin CSG Energy-Saving Glass Co., Ltd. | Water pollutants | pH | Intermittent | 2 | Sewage vent | 6~9 | Sewage Integrated Emission Standards (Level 3 Standard DB12/356-2018) | / | / | N/A |
| COD | 24mg/L | 1.882t | 500t/a | |||||||
| Ammonia nitrogen | 0.293mg/L | 0.023t | 45t/a | |||||||
| Wujiang CSG East China | Water pollutants | pH | Intermittent | 1 | Sewage vent | 6~9 | Sewage Integrated Emission Standards (GB8978-1996) | / | / | N/A |
| COD | ≤500mg/L | 23.138t | 40.59t/a |
ArchitecturalGlass Co.,Ltd.
| Architectural Glass Co., Ltd. | Ammonia nitrogen | ≤45mg/L | 0.889t | 0.1444t/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) | 1.021t | 2.44t/a | N/A |
| NOx | ≤30mg/m? | Pollutant Emission Standard for Battery Industry (GB30484-2013) | 4.46t | 33.15t/a | ||||||
| Air pollutants | VOCs | VOCs≤30mg/m? | VOC Emission Standard for Furniture Manufacturing Industry (DB44/814-2010) | 1.231t | 1.93t/a | |||||
| Yichang CSG Polysilicon Co., Ltd. | Water pollutants | COD | Intermittent | 8 | Sewage vent: Production plant area | ≤70mg/L | Sewage Integrated Emission Standards (GB8978-1996), Integrated Emission Standard of Air Pollutants (GB16297-1996) | 28.63t | 375.17t/a | N/A |
| pH | 6~9 | / | / | |||||||
| Air pollutants | NOx | ≤240mg/m? | 0.813t | 38.28t/a | ||||||
| Particulates | ≤240mg/m? | 8.604t | 32.724t/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 2022,the pollution control facilities were in good operation and the pollutants were discharged stably up to the standard. The airpollutant emission concentrations of most of the subsidiaries were lower than 50% of the emission standard and enjoyed thepreferential 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 2022.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.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 timein accordance with the requirements of the Environmental Protection Tax Law.Measures taken to reduce carbon emissions during the report period and their effects? Applicable □Not 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 “Carbon Peaking” and “Carbon Neutrality”. The Group’s Operation Department has speciallyestablished an energy management team, which was responsible for supervising the energy consumption management of varioussubsidiaries, and promoted 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 inthe flat glass business of CSG has reached the advanced level stipulated by the national standard. At the same time, CSG hasalways paid attention to the utilization of waste heat in flat glass factories, and each production base has built waste heat boilersand waste heat power stations; CSG has also been actively developing photovoltaic power plants, most of which have photovoltaicpower stations on the roofs of factories. In 2022, CSG Group’s waste heat power generation and photovoltaic power generationtotalled about 390 million kWh, equivalent to reducing carbon dioxide emissions by more than 220,000 tons.Administrative penalties caused by environmental protection issues during the report periodNilOther environmental information that should be disclosedNilOther relevant environmental protection informationNilEnvironmental incidents in the listed companyIn 2022, no environmental incidents occurred.
II. Social responsibility
The 2022 Annual Social Responsibilities Report of CSG is the 15
th
social responsibility report released by the Companyconsecutively. Focusing on the year of 2022, the report systemically described the concrete actions of the Company to activelyperform its social responsibilities and its efforts to implement the “Scientific Development Perspective”, build up a harmonioussociety, and advance the sustainable development of economy and society. See the full report on www.cninfo.com.cn.
III. Consolidate and expand the achievements of poverty alleviation and rural revitalizationDuring the report period, the Company and its subsidiaries actively carried out social welfare and poverty alleviation activities. Fordetails, see the 2022 Annual Social Responsibilities Report of CSG disclosed on www.cninfo.com.cn.
Section VI. Important EventsI. Implementation of commitment
1. Commitments completed by the actual controllers, the shareholders, the related parties, the purchasers,the Company or the other related parties during the report period and those hadn’t been completedexecution by the end of the report period
√Applicable □ Not applicable
Commitments
| Commitments | Promisee | Type of commitments | Content of commitments | Commitment date | Commitment term | Implementation |
| Commitments for Share Merger Reform | Not Applicable | |||||
| Commitments in report of acquisition or equity change | Foresea Life Insurance Co., Ltd, Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. | Commitment of horizontal competition, affiliate Transaction and capital occupation | Foresea Life Insurance Co., Ltd., Shenzhen Jushenghua Co., Ltd. and Chengtai Group Co., Ltd. issued detailed report of equity change on 29 June 2015, in which, they undertook to keep independent from CSG in aspects of personnel, assets, finance, organization set-up and business as long as Foresea Life Insurance remained the largest shareholder of CSG. Meanwhile, they made commitment on regularizing related transaction and avoiding industry competition. | 2015-6-29 | During the period when Foresea Life remains the largest shareholder of the Company | By the end of the report period, the above shareholders of the Company had strictly carried out their promises. |
| Commitments in assets reorganization | Not Applicable | |||||
| Commitments in initial public offering or re-financing | Not Applicable | |||||
| Equity incentive commitment | Not Applicable | |||||
| Other commitments for medium and small shareholders | Not Applicable | |||||
| Other commitments | Not Applicable | |||||
| Completed on time(Yes/No) | Yes | |||||
| If the commitments is not fulfilled on time, explain the reasons and the next work plan | Not applicable | |||||
Note : Shenzhen Jushenghua Co., Ltd. transferred its 86,633,447 unrestricted tradable A shares of CSG Group to its wholly-owned
sub-subsidiary Zhongshan Runtian Investment Co., Ltd. through agreement transfer on March 16, 2020. Zhongshan RuntianInvestment Co., Ltd. is obliged to continue to fulfill the commitments made by Shenzhen Jushenghua Co., Ltd. As of the end of thereport period, the above-mentioned shareholders had strictly fulfilled the relevant commitments.
2. If there are assets or projects of the Company, which has profit forecast and the report period is still inforecasting period, the Company should explain reasons why they reach the original profit forecast
□ Applicable √ Not applicable
II. Particulars about non-operating fund of listed company which is occupied by controllingshareholder and its affiliated enterprises
□ Applicable √ Not applicable
III. Illegal external guarantee
□ Applicable √ Not applicable
The Company had no illegal external guarantee during the report period.
IV. Explanation from the Board of Directors for the latest “Non-standard audit report”
□ Applicable √ Not applicable
V. Explanation from Board of Directors, Supervisory Committee and IndependentDirectors (if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable √ Not applicable
VI. Explanation of changes in accounting policies, accounting estimates or correction ofsignificant accounting errors compared with the financial report of the previous year
? Applicable □ Not applicable
The content and reason of accounting policy change
| The content and reason of accounting policy change | Approval procedures |
| On 31 December 2021, the Ministry of Finance issued the Notice by the Ministry of Finance of Issuing the Interpretation No. 15 of the Accounting Standards for Business Enterprises (C.K. [2021] No. 35) (hereinafter referred to as “Standard Interpretation No. 15”), which clarified the accounting treatment of external sales of products or by-product produced by the enterprise before the fixed assets reach the intended usable state or during the research and development process and judgement on loss-making contracts. Contents of “accounting treatment of external sales of products or by-product produced by the enterprise before the fixed assets reach the intended usable state or during the research and development process” and “judgment on loss-making contracts” of Standard Interpretation No. 15 came into force on 1 January 2022. The change has no material impact on the Company’s financial condition and operation results during the report period. | On 28 April 2022, the Board of Directors of the Company reviewed and passed the Proposal on Accounting Policy Changes. |
On 30 November 2022, the Ministry of Finance issued the Notice by the Ministry of Financeof Issuing the Interpretation No. 16 of Accounting Standards for Business Enterprises (C.K.[2022] No. 31) (hereinafter referred to as “Standard Interpretation No. 16”). The contents of“accounting treatment of the income tax effect of financial instrument related dividendwhose issuer is classified as equity instrument” and “accounting treatment of share-basedpayment in cash settlement modified into share-based payment in equity settlement by theenterprise” were required to came into force on the issuance date. And the regulations of“accounting treatment for deferred income tax relating to assets and liabilities arising from asingle transaction that is not subject to the initial recognition exemption” came into force on1 January 2023. The change has no material impact on the Company’s financial conditionand operation results during the report period.
| On 30 November 2022, the Ministry of Finance issued the Notice by the Ministry of Finance of Issuing the Interpretation No. 16 of Accounting Standards for Business Enterprises (C.K. [2022] No. 31) (hereinafter referred to as “Standard Interpretation No. 16”). The contents of “accounting treatment of the income tax effect of financial instrument related dividend whose issuer is classified as equity instrument” and “accounting treatment of share-based payment in cash settlement modified into share-based payment in equity settlement by the enterprise” were required to came into force on the issuance date. And the regulations of “accounting treatment for deferred income tax relating to assets and liabilities arising from a single transaction that is not subject to the initial recognition exemption” came into force on 1 January 2023. The change has no material impact on the Company’s financial condition and operation results during the report period. | On 24 April 2023, the Board of Directors of the Company reviewed and passed the Proposal on Accounting Policy Changes. |
VII. Description of changes in consolidation statement’s scope compared with the financialreport of the previous year
? Applicable □Not applicableOn 14 February 2022, the Group set up a subsidiary, Yichang CSG New Energy Materials Technology Co., Ltd. (referred to as“Yichang New Energy Materials Company”). As of 31 December 2022, the Group has invested RMB 1,200,000. The Group owns100% of its equity.On 1 July 2022, the Group set up a subsidiary, Dongguan CSG Intelligent Equipment Manufacturing Co., Ltd. (referred to as“Dongguan Intelligent Equipment Company”). As of 31 December 2022, the Group has invested RMB 2.5 million. The Groupowns 100% of its equity.On 14 July 2022, the Group set up a subsidiary, Anhui CSG Photovoltaic Energy Co., Ltd. (referred to as “Anhui PhotovoltaicEnergy Company”). As of 31 December 2022, the Group has not invested yet. The Group owns 100% of its equity.On 14 July 2022, the Group set up a subsidiary, Shenzhen CSG Quartz Material Industry Co., Ltd. (referred to as “ShenzhenQuartz Company”). As of 31 December 2022, the Group has invested RMB 3 million. The Group owns 100% of its equity.On 4 August 2022, the Group set up a subsidiary, Guangxi CSG Quartz Material Co., Ltd. (referred to as “Guangxi QuartzCompany”). As of 31 December 2022, the Group has invested RMB 2,995,000. The Group owns 100% of its equity.VIII. Engaging and dismissing of CPA firmCPA firm engaged
| Name of domestic CPA firm | Asia Pacific (Group) CPAs (special general partnership) |
| Remuneration for domestic CPA firm (RMB 0,000) | 270 |
| Continuous life of auditing service for domestic CPA firm | 5 |
| Name of domestic CPA | Wang Donglan, Wei Jian |
| Continuous life of auditing service for domestic CPA | Wang Donglan (1 year), Wei Jian (1 year) |
Whether changed accounting firms in this period or not
□ Yes √No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
√Applicable □ Not applicable
Asia Pacific (Group) CPAs (special general partnership) was engaged as audit institute of internal control for the Company in thereport period, and contracted charges was RMB 0.30 million (cost of business trips and accommodation at its own expense).
IX. Delisting after the disclosure of the annual report
□ Applicable √ Not applicable
X. Issues related to bankruptcy and reorganization
□ Applicable √ Not applicable
There were no bankruptcy or restructuring related matters during the reporting period of the company.XI. Significant lawsuits and arbitrations
√ Applicable □ Not applicable
Basic information
| 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: China South Glass Group 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 | First instance | On 10 February 2023, Shenzhen Nanshan District People’s Court had opened a court session for the case, and the Group is waiting for judgement. | Nil | 1 October 2022 | Announcements on Company Involved Lawsuits on http://www.cninfo.com.cn (Announcement No.: 2022-056) |
XII. Penalty and rectification
□ Applicable √ Not applicable
There were no penalties or rectifications during the report period of the Company.
XIII. Integrity of the Company and its controlling shareholders and actual controllers? Applicable □ Not applicableThe 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. and shareholderChengtai Group Co., Ltd. shall disclose the corresponding information. The details are 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 31 December 2022, 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 31 December 2022, 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 RMB164 million, Zhongshan Runtian was jointlyand severally liable for the debt, and its 5.57 million shares of Jonjee High-tech were used as collateral. At present, Great WallGuoxing Financial Leasing Co., Ltd. has applied for compulsory execution and has frozen 5.57 million shares of Jonjee High-tech.
(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 29 June 2022, it has disposed of55,628,900 A shares of CSG, with a total amount of RMB319,999,300.
(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 13 September 2022, and the amount credited into the account wasRMB793,755,369.22, which was approximately RMB90 million different from the debt amount of RMB882,199,570.79 submittedto 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 RMB1.05 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 16 November 2022, it has disposed of 8,056,410 shares of Jonjee High-tech, with 20.87 million sharesremaining.
(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 RMB541 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 2 February 2023, it has disposed of 21,025,100 shares of Jonjee High-tech, with a totalamount of RMB617,383,579.06.As of 31 December 2022, the details of Zhongshan Runtian’s comparatively large amount of debt which was overdue are asfollows:
Serialnumber
| 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 | 32,923.86 | Guarantee+Pledge | 2018/12/27 | 2021/12/26 |
| 2 | Zhongshan Runtian Investment Co., Ltd. | AVIC Trust | 91,633.71 | Guarantee+Pledge | 2019/9/25 | 2021/10/31 |
| 3 | Zhongshan Runtian Investment Co., Ltd. | Baotai Honghua Investment | 90,500 | Guarantee | 2021/3/15 | 2021/12/31 |
| Total | 215,057.57 |
As of 31 December 2022, 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 RMB420 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 RMB290 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 RMB1048 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 RMB1.31 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 RMB600 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 RMB2.16 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 RMB720 million.
(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 RMB2,063 million.
(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 RMB836 million.
(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 RMB925 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 RMB1,117 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 was jointly and severally liable for the debt of RMB4,207 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 RMB417 million.
(14) Due to the dispute over the loan contract with Baoneng Automobile Group Co., Ltd., Chongqing International Trust appliedto the court for compulsory execution, and Mr. Yao Zhenhua, as the guarantor of the debt, was jointly and severally liable for thedebt of RMB2,186 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 RMB496 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 ofRMB2,238 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 RMB984 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 Wuhu
Baoneng Real Estate Co., Ltd., Baoneng City Co., Ltd., Tengchong Beihai Wetland Eco-Tourism Investment Co., Ltd., and Mr.Yao Zhenhua, AVIC Trust applied to the court for execution. Mr. Yao Zhenhua, as the guarantor of the debt, was jointly andseverally liable for the debt of RMB563 million.
(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 ofRMB3,433 million.
(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 RMB13,920,800 arising from the loan contract dispute.
(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 RMB5,562 million.
(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 RMB541 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 RMB4,186,700 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’sCourt of the Tibet Autonomous Region. Mr. Yao Zhenhua, as the guarantor of the loan contract dispute, was jointly and severallyliable for the debt of RMB829 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 RMB2,121 million. Mr. Yao Zhenhua had no debt with comparatively largeamount that had not been paid when due.
3. According to the reply of the shareholder Chengtai Group Co., Ltd.: As of 31 December 2022, Chengtai Group Co., Ltd. has notreceived relevant information on share freezing and lawsuit, and it had no debt with comparatively large amount that had not beenpaid when due.
XIV. Major related transaction
1. Related transaction with routine operation concerned
□ Applicable √ Not applicable
There were no related transactions related to daily operations during the report period of the Company.
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable √ Not applicable
There were no related party transactions related to asset or equity acquisitions or sales during the report period of theCompany.
3. Related transaction with jointly external investment concerned
□ Applicable √ Not applicable
During the report period, the Company did not engage in any related party transactions related to joint externalinvestment.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
There were no related debt or debt transactions during the report period of the Company.
5. Transactions with related financial companies
□ Applicable √ Not applicable
There was no deposit, loan, credit or other financial business between the Company and its affiliated financialcompanies and related parties.
6. Transactions between financial companies controlled by the company and related parties
□ Applicable √ Not applicable
There was no deposit, loan, credit or other financial business between the financial company controlled by theCompany and its affiliated parties.
7. Other major related transaction
□ Applicable √ Not applicable
There were no other significant related party transactions during the report period of the Company.
XV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
There was no custody situation during the report period of the Company.
(2) Contract
□ Applicable √ Not applicable
There was no contracting situation during the Company's report period.
(3) Leasing
□ Applicable √ Not applicable
There was no leasing situation during the report period of the Company.
2. Major guarantees
? Applicable □ Not applicable
Unit: RMB 0,000
External guarantees of the Company and its subsidiaries (excluding the guarantees for subsidiaries)
| 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 | 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 |
guarantee
amount
| guarantee amount | ||||||||||
| Xianning CSG Photovoltaic Glass Co., Ltd. | 25 April 2022 | 6,000 | 26 May 2022 | 2,946 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Photovoltaic Glass Co., Ltd. | 25 April 2022 | 5,000 | 25 November 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 5,000 | 27 May 2022 | 3,480 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 5,000 | 25 May 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photovoltaic Glass Co., Ltd. | 19 February 2021 | 1,824 | 19 March 2021 | 1,200 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Yichang CSG Photovoltaic Glass Co., Ltd. | 25 April 2022 | 608 | 4 July 2022 | 600 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Photovoltaic Glass Co., Ltd. | 10 August 2021 | 1,824 | 17 December 2021 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG PV-tech Co., Ltd. | 10 August 2021 | 3,000 | 29 November 2021 | 2,957 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG PV-tech Co., Ltd. | 10 August 2021 | 10,000 | 13 August 2021 | 923 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Hebei Panel Glass Co., Ltd. | 19 February 2021 | 3,000 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No | |
| Hebei Panel Glass Co., Ltd. | 25 April 2022 | 5,000 | 8 June 2022 | 512 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei Panel Glass Co., Ltd. | 25 April 2022 | 2,500 | 16 May 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Hebei Panel Glass Co., Ltd. | 30 October 2021 | 16,500 | 17 December 2021 | 11,118 | Joint liability guarantee | None | None | 5 years | No | No |
| Hebei CSG Glass Co., Ltd. | 19 February 2021 | 5,000 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No | |
| Hebei CSG Glass Co., Ltd. | 25 April 2022 | 16,000 | 8 June 2022 | 6,801 | Joint liability guarantee | None | None | 1 year | No | No |
| Hebei CSG Glass Co., Ltd. | 25 April 2022 | 2,500 | 16 May 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 29 June 2021 | 5,000 | 13 September 2021 | 196 | Joint liability guarantee | None | None | 2 years | No | No |
| Dongguan CSG Architectural Glass Co., Ltd. | 25 April 2022 | 10,000 | 17 May 2022 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
Dongguan CSGArchitectural GlassCo., Ltd.
| Dongguan CSG Architectural Glass Co., Ltd. | 30 October 2021 | 10,000 | 18 May 2021 | 1,631 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Xianning CSG Glass Co., Ltd. | 25 April 2022 | 7,000 | 27 May 2022 | 4,455 | Joint liability guarantee | None | None | 1 year | No | No |
| Xianning CSG Glass Co., Ltd. | 25 December 2021 | 15,000 | 1 March 2022 | 9,000 | Joint liability guarantee | None | None | 7 years | No | No |
| Xianning CSG Glass Co., Ltd. | 25 December 2021 | 50,000 | 9 March 2022 | 27,476 | Joint liability guarantee | None | None | 7 years | No | No |
| Xianning CSG Glass Co., Ltd. | 29 June 2021 | 20,000 | 7 July 2021 | 16,814 | Joint liability guarantee | None | None | 5 years | No | No |
| Chengdu CSG Glass Co., Ltd. | 25 December 2021 | 5,000 | 17 February 2022 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | 25 April 2022 | 10,000 | 16 November 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | 25 April 2022 | 5,000 | 25 November 2022 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Chengdu CSG Glass Co., Ltd. | 25 April 2022 | 5,000 | 25 November 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Chengdu CSG Glass Co., Ltd. | 19 February 2021 | 5,000 | 8 March 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 25 December 2021 | 8,000 | 15 April 2022 | 4,200 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 25 April 2022 | 10,000 | 6 June 2022 | 5,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 8 June 2021 | 5,000 | 24 August 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Wujiang CSG Glass Co., Ltd. | 19 February 2021 | 10,000 | 12 March 2021 | 8,634 | Joint liability guarantee | None | None | 4 years | No | No |
| Wujiang CSG Glass Co., Ltd. | 25 April 2022 | 10,000 | 18 May 2022 | 8,166 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 25 December 2021 | 10,000 | 17 February 2022 | 747 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Wujiang CSG Glass Co., Ltd. | 19 February 2021 | 5,000 | 8 March 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Wujiang CSG Glass Co., Ltd. | 8 June 2021 | 5,000 | 26 September 2021 | 1,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG Glass Co., Ltd. | 19 February 2021 | 10,000 | 26 March 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
Wujiang CSG EastChina ArchitecturalGlass Co., Ltd.
| Wujiang CSG East China Architectural Glass Co., Ltd. | 5 December 2020 | 10,000 | 9 December 2020 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 25 April 2022 | 7,000 | 18 May 2022 | 807 | Joint liability guarantee | None | None | 1 year | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 19 February 2021 | 12,400 | 19 May 2021 | 2,572 | Joint liability guarantee | None | None | 5 years | Yes | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 25 April 2022 | 12,400 | 26 May 2022 | 3,369 | Joint liability guarantee | None | None | 5 years | No | No |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 25 December 2021 | 3,000 | 0 | Joint liability guarantee | None | None | 2 years | No | No | |
| Dongguan CSG Solar Glass Co., Ltd. | 10 August 2021 | 10,000 | 13 September 2021 | 3,460 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 5,000 | 21 July 2022 | 4,986 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 4,000 | 21 July 2022 | 523 | Joint liability guarantee | None | None | 5 years | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 10,000 | 17 May 2022 | 5,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 30 October 2021 | 20,000 | 25 December 2020 | 2,000 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 8,000 | 7 June 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 9,000 | 31 May 2022 | 2,371 | Joint liability guarantee | None | None | 4 years | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 6,000 | 11 August 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 25 April 2022 | 6,330 | 18 October 2022 | 230 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 10 August 2021 | 4,500 | 7 September 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 25 April 2022 | 10,000 | 17 May 2022 | 3,000 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 25 December 2021 | 5,000 | 2 December 2022 | 0 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 25 April 2022 | 37,400 | 04 August 2022 | 0 | Joint liability guarantee | None | None | 5 years | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 10 December 2019 | 5,000 | 26 April 2020 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No |
Qingyuan CSGEnergy-Saving NewMaterials Co., Ltd.
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 25 April 2022 | 5,000 | 14 September 2022 | 4,400 | Joint liability guarantee | None | None | 1 year | No | No |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 10 December 2019 | 50,000 | 26 April 2020 | 10,524 | Joint liability guarantee | None | None | 5 years | Yes | No |
| Yichang CSG Display Co., Ltd. | 30 October 2021 | 3,000 | 1 December 2021 | 2,943 | Joint liability guarantee | None | None | 1 year | No | No |
| Yichang CSG Display Co., Ltd. | 25 April 2022 | 3,000 | 24 June 2022 | 2,750 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 3,000 | 31 May 2022 | 2,990 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 5,000 | 21 June 2022 | 3,317 | Joint liability guarantee | None | None | 1 year | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 19 February 2021 | 7,000 | 23 March 2021 | 5,817 | Joint liability guarantee | None | None | 4 years | No | No |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 29 June 2021 | 2,000 | 26 November 2021 | 1,124 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | 10 August 2021 | 70,000 | 19 October 2021 | 37,822 | Joint liability guarantee | None | None | 6 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | 10 August 2021 | 180,000 | 28 August 2021 | 101,639 | Joint liability guarantee | None | None | 7 years | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | 25 April 2022 | 35,000 | 26 July 2022 | 15,536 | Joint liability guarantee | None | None | 1 year | No | No |
| Anhui CSG New Energy Material Technology Co., Ltd. | 25 December 2021 | 50,000 | 30 March 2022 | 23,752 | Joint liability guarantee | None | None | 9 years | No | No |
| Anhui CSG Silicon Valley Mingdu Mining Development Co., Ltd. | 25 April 2022 | 24,000 | 21 July 2022 | 24,000 | Joint liability guarantee | None | None | 10 years | No | No |
| Anhui CSG Quartz Materials Co., Ltd. | 29 June 2021 | 9,000 | 13 September 2021 | 7,196 | Joint liability guarantee | None | None | 5 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | 25 April 2022 | 30,000 | 11 June 2022 | 0 | Joint liability guarantee | None | None | 3 years | No | No |
| Guangxi CSG New Energy Materials Tech Co., Ltd. | 25 April 2022 | 80,000 | 26 July 2022 | 5,748 | Joint liability guarantee | None | None | 7 years | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 5,000 | 30 May 2022 | 1,000 | Joint liability guarantee | None | None | 3 years | No | No |
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 22 September 2020 | 34,000 | 25 September 2020 | 24,059 | Joint liability guarantee | None | None | 5 years | No | No |
Dongguan CSGArchitectural GlassCo., Ltd.
| Dongguan CSG Architectural Glass Co., Ltd. | 25 April 2022 | 48,000 | 22 June 2022 | 2,256 | Joint liability guarantee | None | None | 1 year | No | No |
| Dongguan CSG Solar Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 2,073 | Joint liability guarantee | None | None | 1 year | No | No | |
| Dongguan CSG PV-tech Co., Ltd. | 25 April 2022 | 22 June 2022 | 1,121 | Joint liability guarantee | None | None | 1 year | No | No | |
| Qingyuan CSG Energy-Saving New Materials Co., Ltd. | 29 June 2021 | 1 July 2021 | 0 | Joint liability guarantee | None | None | 1 year | Yes | No | |
| Anhui CSG New Energy Material Technology Co., Ltd. | 25 April 2022 | 22 June 2022 | 2,595 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 426 | Joint liability guarantee | None | None | 1 year | No | No | |
| Chengdu CSG Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 900 | Joint liability guarantee | None | None | 1 year | No | No | |
| Sichuan CSG Energy Conservation Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 309 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 2,424 | Joint liability guarantee | None | None | 1 year | No | No | |
| Xianning CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 197 | Joint liability guarantee | None | None | 1 year | No | No | |
| Wujiang CSG East China Architectural Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 1,668 | Joint liability guarantee | None | None | 1 year | No | No | |
| Tianjin CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 22 June 2022 | 462 | Joint liability guarantee | None | None | 1 year | No | No | |
| Hebei Panel Glass Co., Ltd. | 24 June 2020 | Joint liability guarantee | None | None | 1 year | Yes | No | |||
| Dongguan CSG Jingyu New Materials Co., Ltd. | 25 February 2020 | Joint liability guarantee | None | None | 1 year | Yes | No | |||
| Zhaoqing CSG Energy-Saving Glass Co., Ltd. | 25 April 2022 | 22 August 2022 | 305 | Joint liability guarantee | None | None | 1 year | No | No | |
| Total amount of approved guarantees for subsidiaries during the report period (B1) | 457,738 | Total actual amount of guarantees for subsidiaries during the report period (B2) | 198,151 | |||||||
| Total amount of approved guarantees for subsidiaries at the end of the report period (B3) | 960,062 | Total balance of actual guarantees for subsidiaries at the end of the report period (B4) | 420,470 | |||||||
Guarantees of subsidiaries for their subsidiaries
| 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) | 457,738 | Total actual amount of guarantees during the report period (A2+B2+C2) | 198,151 | |||||||
| Total amount of approved guarantees at the end of the report period (A3+B3+C3) | 960,062 | Total actual balance of guarantees at the end of the report period (A4+B4+C4) | 420,470 | |||||||
| The proportion of total actual amount of guarantees ((i.e., A4+B4+C4) in the net assets of the Company | 32.71% | |||||||||
| 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) | 29,442 | |||||||||
| The amount of guarantees exceeding 50% of the net assets (F) | 0 | |||||||||
| Total guarantee amount of the above three items (D+E+F) | 29,442 | |||||||||
| 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: The 2021 Annual General Meeting of the Company reviewed and passed the Proposal for the 2022 Guarantee Plan, andagreed to provide a total amount of not exceeding RMB16,268 million (including the effective and unexpired amount) for the 2022credit line from financial institutions to subsidiaries at all levels within the scope of consolidated statements (hereinafter referred toas “all subsidiaries”). Among them, the total amount of guarantee for all subsidiaries with an asset-liability ratio below 70% shallnot exceed the equivalent amount of RMB15,018 million (including the effective and unexpired amount), and the total amount ofguarantee for all subsidiaries with an asset-liability ratio of 70% or above shall not exceed the equivalent amount of RMB1,250million (including the effective and unexpired amount).The Company’s external guarantees are all provided for subsidiaries within the scope of consolidated statement. As of 31December 2022, the actual guarantee balance was RMB4,204.70 million (of which the actual guarantee balance with an assetliability ratio of 70% or above was RMB294.42 million), accounting for 32.71% of the parent company’s net assets ofRMB12,854.88 million at the end of 2022, and 16.23% of the net assets of RMB25,904.01 million. The Company has no overdueguarantee.The Company’s 2021 Annual General Meeting reviewed and passed the Proposal on the Development of Asset Pool Business in2022. 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 RMB800 million.Under the premise of controllable risks, various guarantee methods such as maximum pledge, general pledge, deposit certificatepledge, bill pledge, and margin pledge can be adopted for business development. As of 30 December 2022, the actual pledgeamount of the asset pool business was RMB157,569,200, and the financial balance was RMB156,276,000.Explanation on compound guaranteesNil
3. Entrust others to manage cash assets
(1)Entrusted Financing
√ Applicable □ Not applicable
Overview of entrusted financing during the report period
Unit: RMB 0,000
Type
| Type | Source of funds for entrusted financing | Amount of entrusted financing | Outstanding balance | Amount not collected after the due date | Amount of impairment accrued for overdue uncollected entrusted financing |
| Structured deposit | Own funds | 132,816 | 0 | 0 | 0 |
| Total | 0 | 0 | 0 | ||
Details of high-risk entrusted financing with significant single amount or low security and poor liquidity
□Applicable √ Not applicable
Entrusted financing expected to be unable to recover the principal or other circumstances that may lead to impairment
□Applicable √ Not applicable
(2) Entrusted loans
□Applicable √ Not applicable
The Company had no entrusted loans in the report period.
4. Other material contracts
□ Applicable √ Not applicable
There were no other significant contracts during the reporting period of the company.
XVI. Statement on other important matters
√Applicable □ Not applicable
1. Ultra-short-term financing bills
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved theproposal on application for registration and issuance of ultra-short-term financing bills and medium-term notes, whichagreed that the Company should register and issue ultra-short-term financing bills with a registered amount notexceeding 1.5 billion yuan (the limit is not subject to the limit of 40% of net assets).With the period of validity of thequota not longer than two years, such ultra-short-term financing bills will be issued by installments in accordance withthe actual capital needs of the Company and the situation of inter-bank market funds. On September 4, 2020, theNAFMII held its 102nd registration meeting in 2020 and decided to accept the registration of ultra-short-term financingbills with a total of 1.5 billion yuan and a validity period of two years. On May 16, 2022, the Company's 2021 annualgeneral meeting reviewed and approved the "Proposal on Application for Registration and Issuance of Medium-TermNotes and Ultra-short-term Financing Bills", which agreed that the Company would register and issue ultra-short-termfinancing bills with a registered amount of not more than 1 billion yuan, The Company can issue one or more timeswithin the validity period of the registration according to the actual capital needs and the capital situation of the inter-bank market.
2. Medium-term notes
On June 15, 2020, the Third Extraordinary Shareholders’ General Meeting 2020 of CSG deliberated and approved theproposal on application for registration and issuance of ultra-short-term financing bills and medium-term notes, whichagreed that the Company should register and issue medium-term notes with a registered amount not exceeding 1.5billion yuan. With the period of validity of the quota not longer than two years, such ultra-short-term financing bills willbe issued by installments in accordance with the actual capital needs of the Company and the situation of inter-bankmarket funds. On September 4, 2020, the NAFMII held the 102nd registration meeting in 2020 and decided to acceptthe company's registration of medium-term notes with a total of 1.5 billion yuan and a validity period of two years. OnMay 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 theCompany would register and issue medium-term notes with a registered amount of not more than 2 billion yuan. Actualcapital needs and inter-bank market capital status, can be issued one or more times within the validity period ofregistration.
3.Public issuance of corporate bonds
On March 2, 2017, the 2nd Extraordinary General Meeting of Shareholders in 2017 reviewed and approved “theProposal on the Public Issuance of Corporate Bonds for Qualified Investors". On February 27, 2019, the FirstExtraordinary General Meeting of Shareholders in 2019 The “Proposal on Extending the Validity Period of the
Shareholders' Meeting for the Public Offering of Corporate Bonds to Qualified Investors” agreed to issue corporatebonds with a total issue of no more than RMB 2 billion and a term of no more than 10 years. On June 26, 2019, theCompany 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 March25, 2020, the Company issued the first batch of corporate bonds with total amount of RMB 2 billion and valid term of 3years at the issuance rate of 6%, and completed the redemption and delisting on March 27, 2023 (the originalredemption date for this bond was March 25, 2023, but due to a statutory rest day, it was postponed to the first tradingday thereafter).
4. Public issuance of A-share convertible corporate bonds
On July 11, 2022, the Company's 2nd Extraordinary General Meeting of Shareholders in 2022 reviewed and approvedrelevant proposals on the Company's public issuance of A-share convertible corporate bonds, and agreed to issue A-share convertible corporate bonds. The total amount of funds raised would not exceed RMB 2,800,000,000 (includingRMB 2,800,000,000), with a term of 6 years from the date of issuance.
5.Passive reduction of Southern Glass A shares held by Zhongshan Runtian Investment Co., Ltd.On July 12, 2022, the Company received the "Notice Letter" from Chongqing Xinyu Financial Leasing Co., Ltd.(hereinafter referred to as "Chongqing Xinyu"). According to the "Notice Letter", the Shenzhen Intermediate Courtruled to sell 67.65 million "Southern Glass A" shares (stock code: 000012) held by Zhongshan Runtian Investment Co.,Ltd. (hereinafter referred to as "Zhongshan Runtian"). On July 27 and July 28, 2022, Chongqing Xinyu forcibly sold
36.5289 million shares of Southern Glass A held by Zhongshan Runtian through block trade, accounting for 1.19% ofthe Company's total share capital. On December 8, 2022, the Company received a letter from shareholder ZhongshanRuntian regarding the reduction of shares. It was learned that Zhongshan Runtian's "Southern Glass A" shares hadaccumulated a reduction of 31.1211 million shares from July 29, 2022 to December 7, 2022, accounting for 1.01% ofthe Company's total share capital. After the passive reduction of the aforementioned shares, the number of shares heldby Zhongshan Runtian decreased from 86,633,447 shares to 18,983,447 shares, and the shareholding ratio decreasedfrom 2.82% to 0.62%.
6. Lawsuits
(1) Regarding the special fund of RMB 171 million for talent introduction, the Company filed an infringementcompensation lawsuit against Zeng Nan and others and Yichang Hongtai Real Estate Co., Ltd. on December 15, 2021,and Shenzhen Intermediate People's Court officially accepted it on January 28, 2022. The first trial of the case wascompleted in Shenzhen Intermediate People's Court on June 21, 2022, and is currently awaiting judgment.
(2) In September 2022, the Company received a civil lawsuit from the Nanshan District People's Court in Shenzhen. ZhongshanRuntian Investment Co., Ltd. filed a lawsuit with the court regarding the dispute over the effectiveness of the resolution of theCompany's Second Extraordinary Shareholders' Meeting in 2022. For specific details, please refer to the "Announcement on LawsuitInvolved by the Company" (Announcement No. 2022-056) disclosed by the Company on CNINFO. The first trial of the case washeld on February 10, 2023 in the Nanshan District Court of Shenzhen and is awaiting judgment.XVII. 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 | 4,736,796 | 0.15% | 101,453 | 101,453 | 4,838,249 | 0.16% | |||
| 1. State-owned shares | |||||||||
| 2. State-owned legal person’s shares | |||||||||
| 3. Other domestic shares | 4,736,796 | 0.15% | 101,453 | 101,453 | 4,838,249 | 0.16% | |||
| Including: Domestic legal person’s shares | |||||||||
| Domestic natural person’s shares | 4,736,796 | 0.15% | 101,453 | 101,453 | 4,838,249 | 0.16% | |||
| 4. Foreign shares | |||||||||
| Including: Foreign legal person’s shares | |||||||||
| Foreign natural person’s shares | |||||||||
| II. Unrestricted shares | 3,065,955,311 | 99.85% | -101,453 | -101,453 | 3,065,853,858 | 99.84% | |||
| 1. RMB Ordinary shares | 1,956,586,251 | 63.72% | -101,453 | -101,453 | 1,956,484,798 | 63.71% | |||
| 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% | 0 | 0 | 3,070,692,107 | 100% | |||
Reason for equity changes
√Applicable □Not applicable
During the report period, China Securities Depository and Clearing Corporation Limited adjusted the locked-up sharesof senior management in accordance with regulations, and the Company’s restricted shares and unrestricted shareschanged accordingly.Approval on equity changes
□Applicable √Not applicable
Transfer of ownership of changes in shares
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable tocommon shareholders of Company in the latest year and period
□Applicable √Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable √ Not applicable
2. Changes of restricted shares
√Applicable □ Not applicable
Unit: Share
Shareholders’name
| Shareholders’ name | Number of restricted shares at the beginning of the period | Number of shares increased in the Period | Number of restricted shares released in the Period | Number of shares restricted at the end of the Period | Reason for restriction | Released date |
| Chen Lin | 1,217,299 | 1,217,299 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| He Jin | 673,200 | 673,200 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | ||
| Wang Wenxin | 0 | 115,950 | 115,950 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | |
| Chen Chunyan | 0 | 36,953 | 36,953 | Executive lockup stocks shares | Releasing of executive lockup stocks will be implemented according to relevant policies. | |
| Wang Jian | 759,000 | 253,000 | 1,012,000 | Locked in shares after the departure of directors and executives | Releasing of director and executive lockup stocks will be implemented according to relevant policies. | |
| Gao Changkun | 500 | 125 | 375 | Locked in shares after the departure of supervisors | Releasing of supervisor lockup stocks will be implemented according to relevant policies. | |
| Lu Wenhui | 1,217,298 | 304,325 | 912,973 | Locked in shares after the departure of executives | Releasing of executive lockup stocks will be implemented according to relevant policies. | |
| Yang Xinyu | 869,499 | 869,499 | Locked in shares after the departure of executives | Releasing of executive lockup stocks will be implemented according to relevant policies. |
total
| total | 4,736,796 | 405,903 | 304,450 | 4,838,249 | -- | -- |
II. Issuance and listing of Securities
1. Security issued (excluding preferred stock) in the report period
□Applicable √Not applicable
2. Particulars about changes of total shares and shareholder structure as well as changes of assets andliability structure
□ Applicable √ Not applicable
3. Existing internal staff shares
□ Applicable √ Not applicable
III. Particulars about shareholder and actual controller of the Company
1. Amount of shareholders of the Company and particulars about shares holding
Unit: Share
| Total shareholders at the end of the report period | 164,489 | Total shareholders at the end of the month before this annual report disclosed | 164,653 | Total preference shareholders with voting rights recovered at end of report period (if applicable) | 0 | Total preference shareholders with voting rights recovered at end of the month before this annual report disclosed (if applicable) | 0 | ||||||
| Shareholder with above 5% shares hold or top 10 shareholders | |||||||||||||
| 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 unrestricted shares held | Number of share pledged, marked or frozen | ||||||
| Share status | Amount | ||||||||||||
| Foresea Life Insurance Co., Ltd. – HailiNiannian | Domestic non state-owned legal person | 15.19% | 466,386,874 | 466,386,874 | |||||||||
| Foresea Life Insurance Co., Ltd. – Universal Insurance Products | Domestic non state-owned legal person | 3.86% | 118,425,007 | 118,425,007 | |||||||||
| Foresea Life Insurance Co., Ltd. – Own Fund | Domestic non state-owned legal person | 2.11% | 64,765,161 | 64,765,161 | |||||||||
China GalaxyInternationalSecurities (HongKong) Co.,Limited
| China Galaxy International Securities (Hong Kong) Co., Limited | Foreign legal person | 1.34% | 41,209,978 | -9,800 | 41,209,978 | ||||
| China Merchants Securities (Hong Kong) Limited | Foreign legal person | 1.21% | 37,303,991 | -5,064,997 | 37,303,991 | ||||
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products - 005l-ct001 Shen | Other | 1.01% | 31,084,559 | 1,248,291 | 31,084,559 | ||||
| Hong Kong Securities Clearing Co., Ltd. | Foreign legal person | 0.70% | 21,634,045 | -35,042,250 | 21,634,045 | ||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.63% | 19,365,573 | -1,965,024 | 19,365,573 | ||||
| Zhongshan Runtian Investment Co., Ltd. | Domestic non state-owned legal person | 0.62% | 18,983,447 | -67,650,000 | 18,983,447 | Pledged | 18,980,000 | ||
| Marked | 18,980,000 | ||||||||
| Frozen | 3,447 | ||||||||
| #He Xinhai | Domestic natural person | 0.59% | 17,971,302 | 17,971,302 | 17,971,302 | ||||
| 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 | ||||||||
| Particular about top ten shareholders with unrestricted shares held | |||||||||
| Shareholders’ name | Amount of unrestricted shares held at | Type of shares | |||||||
Special note: On July 11, 2022, at the Company's Second Extraordinary General Meeting in 2022, Foresea LifeInsurance Co., Ltd. voted in favor of all proposals, and Zhongshan Runtian Investment Co., Ltd. voted against allproposals, Chengtai Group Co., Ltd. voted against all the proposals with the shares held by China GalaxyInternational Securities (Hong Kong) Co., Limited; on August 3, 2022, at the Company's Third Extraordinary GeneralMeeting in 2022, Foresea Life Insurance Co., Ltd. voted in favor of all proposals, and Zhongshan Runtian InvestmentCo., Ltd. voted against all proposals.Whether the company’s top 10 common shareholders and the top 10 shareholders of ordinary shares subject tounlimited sales have agreed to buy back transactions during the report period
□Yes √ No
The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares with unrestricted salesconditions did not engage in any agreed repurchase transactions during the reporting period.
year-end
| year-end | 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 |
| Foresea Life Insurance Co., Ltd. – Own Fund | 64,765,161 | RMB ordinary shares | 64,765,161 |
| China Galaxy International Securities (Hong Kong) Co., Limited | 41,209,978 | Domestically listed foreign shares | 41,209,978 |
| China Merchants Securities (Hong Kong) Limited | 37,303,991 | Domestically listed foreign shares | 37,303,991 |
| China Life Insurance Co., Ltd. - Traditional - General Insurance Products - 005l-ct001 Shen | 31,084,559 | RMB ordinary shares | 31,084,559 |
| Hong Kong Securities Clearing Co., Ltd. | 21,634,045 | RMB ordinary shares | 21,634,045 |
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 19,365,573 | Domestically listed foreign shares | 19,365,573 |
| Zhongshan Runtian Investment Co., Ltd. | 18,983,447 | RMB ordinary shares | 18,983,447 |
| #He Xinhai | 17,971,302 | RMB ordinary shares | 17,971,302 |
| 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) | Shareholder He Xinhai holds 0 shares of the Company through an ordinary account, and 17,971,302 shares of the Company through the customer credit transaction guarantee securities account of Guangfa Securities Co., Ltd., totaling 17,971,302 shares of the Company. | ||
2. Controlling shareholder of the Company
The nature of controlling shareholders: No holding bodyThe type of controlling shareholder: Not existExplanation on the Company without controlling shareholderCurrently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd.is the Company's largestshareholder that has totally held 657,577,954shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian, Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–ownfund, Foresea Life Insurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the reportperiod, which accounts for 21.41% of the Company’s total shares; its person acting in concert Zhongshan RuntianInvestment Co., Ltd. held 18,983,447 shares, which accounts for 0.62% of the Company’s total shares; its personacting in concert Chengtai Group Co., Ltd. held 51,709,088 shares of B-share via China Galaxy InternationalSecurities (Hong Kong) Co., Ltd and Guosen Securities (Hong Kong) Brokerage Co., Limited, which accounts for
1.68% of the Company’s total shares. Foresea Life Insurance and its persons acting in concert totally held 23.72% ofthe Company’s total shares, which is less than 30%, meanwhile, the number of directors recommended by ForeseaLife Insurance and its persons acting in concert was no more than half of total number of the Company’s Board ofDirectors.Other shareholders of the Company hold less than 5% of the shares.Changes of controlling shareholders in the report period
□ Applicable √ Not applicable
3. Actual controller of the Company and its concerted actors
The nature of actual controller: no actual controllerThe type of actual controller: Not existExplanation on the Company without actual controllerCurrently the Company has no controlling shareholder. Foresea Life Insurance Co., Ltd. is the Company's largestshareholder that has totally held 657,577,954shares of the Company via Foresea Life Insurance Co., Ltd.–HailiNiannian, Foresea Life Insurance Co., Ltd.–universal insurance products, Foresea Life Insurance Co., Ltd.–ownfund, Foresea Life Insurance Co., Ltd.–a combination of its own funds together with Huatai till the end of the reportperiod, which accounts for 21.41% of the Company’s total shares; its person acting in concert Zhongshan RuntianInvestment Co., Ltd. held 18,983,447 shares, which accounts for 0.62% of the Company’s total shares; its personacting in concert Chengtai Group Co., Ltd. held 51,709,088 shares of B-share via China Galaxy InternationalSecurities (Hong Kong) Co., Ltd and Guosen Securities (Hong Kong) Brokerage Co., Limited, which accounts for
1.68% of the Company’s total shares. Foresea Life Insurance and its persons acting in concert totally held 23.72% ofthe Company’s total shares, which is less than 30%, meanwhile, the number of directors recommended by ForeseaLife Insurance and its persons acting in concert was no more than half of total number of the Company’s Board ofDirectors.Shareholders with over 10% shares held in ultimate controlling level
√Yes □No
□ Legal person √ Natural person
Shares held in ultimate controlling level
Shareholders
| Shareholders | Nationality | Whether to obtain the right of abode in other countries or regions |
| Yao Zhenhua | China | No |
| Major occupations and duties | Chairman of Shenzhen Baoneng Investment Group Co., Ltd. | |
| Situation of holding domestic and abroad listed companies over the past 10 years | N/A | |
Changes of actual controller in the report period
□ Applicable √ Not applicable
Property right and controlling relationship between the largest shareholder and the Company is as follow:
Actual controller controlling of the Company by entrust or other assets management
□Applicable √Not applicable
4. The company's controlling shareholder or the largest shareholder and its concerted actor’s cumulativepledged shares account for 80% of the company's shares held by them
□ Applicable √ Not applicable
5. Particulars about other legal person shareholders holding over 10% of the company's shares
□ Applicable √ Not applicable
6. Limitation on share reduction of controlling shareholders, actual controllers, recombination party andother commitment subjects
□ Applicable √ Not applicable
IV. Specific implementation of share repurchase in the report periodImplementation progress of share repurchase
□ Applicable √ Not applicable
Implementation progress of reducing share repurchased by centralized bidding
□ 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 Report
I. Report of the Auditors
Type of Auditor’s Opinion
| Type of Auditor’s Opinion | Standard and unqualified |
| Issue date of Report of the Auditors | April 24, 2023 |
| Name of Auditor’s organization | Asia Pacific (Group) CPAs (special general partnership) |
| Reference number of Report of the Auditors | Ya-Kuai-Shen-Zi（2023）No. 01110174号 |
| Name of CPA | Wang Donglan、Wei Jian |
Auditor’s Report
Ya-Kuai- Shen-Zi (2023) No. 01110174To the shareholders of CSG Holding Co., Ltd.：
I、 OPINIONWe have audited the accompanying financial statements of CSG Holding Co., Ltd. (hereinafter“theCompany”), which comprise the Separate/Consolidated Statements of Financial Position as at 31 December2022, and the Separate/Consolidated Statements of profit or loss, the Separate/Consolidated Statements ofchanges in equity and the Separate/Consolidated Statements of cash flows for the year then ended, and the notesto the financial statements.In our opinion, the financial statements attached were prepared in line with the regulations of AccountingStandards for Business Enterprises in all significant aspects which gave a true and fair view of the consolidatedand parent financial position of the Company as at Dec. 31, 2022 and the consolidated and parent businessperformance and cash flow of the Company for 2022.II、 BASIS OF OPINIONWe conducted our audit in accordance with Standards on Auditing for Certified Public Accountants. Ourresponsibility is to express an opinion on these financial statements based on our audit. Those standards requirethat we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement. we are independent of CSG and fulfillother responsibilities in professional ethicsWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.
III、 KEY AUDIT MATTERSKey audit matters are those matters that, in our professional judgement, were of most significance in ouraudit of the financial statements of the current period. These matters were addressed in the context of our audit
of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separateopinion on these matters. We determine the followings are key audit matters in need of communication in ourreportRecognition of Operating income
1、Matter description
As disclosed in the income statements, during 2022, operating income of CSG mainly comes fromproviding flat glass, engineering glass, solar energy related products, electronic glass and displays to customers.Operating income is recognized when control of the related goods is transferred to customers. In theconsolidated financial statements of CSG for the year ended December 31, 2022, sales revenue was RMB15,198.71 million.According to the notes to the financial statements, for domestic sales, CSG delivers products to the agreeddelivery location based on the contract and recognizes revenue after confirmation of acceptance by the buyer.For export sales, revenue is recognized after export customs clearance procedures are completed according tothe terms specified in the sales contract, and the goods are loaded onto the ship or delivered to the designateddelivery location.As revenue is one of the key performance indicators of CSG, revenue recognition has a significant impacton the financial statements. Therefore, we have identified the recognition of revenue as a key audit matter.
2、Countermeasures of Audit
①Understand and evaluate the key internal controls related to the recognition of revenue. Assess theeffectiveness of the design of these controls by performing walkthrough and control testing, and determinewhether relevant internal controls are executed and effective.
② Examine significant sales contracts with key customer for sampling, identified contract terms andconditions related to the control transfer point of the products, and assessed whether the company's revenuerecognition policies comply with the accounting standards for business enterprises.
③Select samples and performed substantive testing on sales revenue for the current year. Reviewe salescontracts and checked supporting documents (including orders, receipts, customs declarations, invoices, etc.)related to revenue recognition and confirm the authenticity and accuracy of revenue in conjunction with thecustomer's sales receipts.
④Implement substantive analytical procedures on revenue and gross profit margin by month, product,customer, etc.,and identify significant or abnormal fluctuations, and analyzed the reasons for the fluctuations.
⑤Perform cutoff tests for revenue recognized before and after the balance sheet date, obtain relevantsupporting documents, check the key timing points of revenue recognition, and evaluat whether revenue wasrecognized in the appropriate period and whether there was any cross-period recognition.
⑥Select customers for the annual transaction volume and accounts receivable balance through samplingand performed strict control measures on the confirmation procedures to confirm the authenticity and accuracyof the transactions.
⑦Check whether CSG's accounting treatment, presentation and disclosure of the matter were appropriate.
We have determined that there are no other key audit matters that require communication in our auditreport.
IV、 OTHER INFORMATIONThe management layer of the Company shall be responsible for other information, but excludes financialstatements and our audit report.Our audit opinion on financial statements does not include other information; we will not make theauthentication conclusion on other information in any form.In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
V、 RESPONSIBILITIES OF MANAGEMENT GOVERNANCE FOR FINANCIALSTATEMENTS
Management of the Company is responsible for the preparation and fair presentation of these financialstatements in accordance with the requirements of the Accounting Standards for Business Enterprises, and forsuch internal control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.
In preparing financial statements, the management layer is responsible for assessing the company'ssustained business capability, disclosing matters related to continue operating，using the going-concernassumption unless management either intends to liquidate the Company or to cease operations, or has norealistic alternative but to do so.
The governance layer is responsible for supervising the financial reporting process of the company.VI、 AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTSOur objectives are to obtain reasonable assurance as to whether there are no major misstatements due tofraud or errors in the overall financial statements, and to issue an audit report containing audit opinions.Reasonable assurance is the high-level assurance, but it can’t assure that a certain major misstatement can bealways found when auditing according to the audit standard. The misstatement may be caused by malpracticesor error. If the misstatements within the rational expectations may affect the economic decision of the financialstatement user according to the financial statement, it shall be deemed that the misstatement is significant.
During the process of conducting the audit work according to audit standards, we apply professionaljudgment and keep professional skepticism. Meanwhile, we also perform the following tasks:
（1）Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or the override of internal control.
（2）Understand the internal control related to audit, so as to design appropriate audit procedures.
（3）Estimate the appropriateness of the accounting policies selected by the management layer, and therationality of making accounting estimate and relevant disclosures.
（4）Draw a conclusion on the appropriateness of the going concern assumption used by the managementlayer. Meanwhile, according to the obtained audit evidence,it may cause to come to the conclusion that there aresubstantial doubtable events or major uncertainty for the sustainable operation ability of the Company. In casethat we come to the conclusion that there is a significant uncertainty, the audit standards require us to remindthe users of the statements to pay attention to relevant disclosures in the financial statements in the audit report;In case of any insufficient disclosure, we shall give modified opinions. Our conclusion is based on the availableinformation up to the audit report day. However, the future events or circumstances may cause the Companycannot continue to operate.
（5）Estimate the overall presentation, structure and content (disclosure included) of the financialstatements, and Estimate whether the financial statements fairly reflect relevant transactions and matters.
（6）Acquire adequate and appropriate audit evidences on the financial information of the entity orbusiness activities of the Company, and give audit opinions on the consolidated financial statements. We areresponsible for guiding, supervising and executing the audit of the Group, and take all responsibilities for theaudit opinions.
We communicate with the governance layer about the audit scope, schedule, significant audit findings andother matters within the plan, including the noteworthy internal control defects recognized by us during theaudit.
We also provide statements to the governance layer on the compliance with the professional ethicsrequirement related to the independence, and communicate with the governance layer on all relationships andother matters that may reasonably be considered to affect our independence, as well as relevant preventivemeasures.
From the matters that we have communicated with the governance layer, we confirm the most importantmatters for the audit of the current financial statements, and thus constitute the key audit matters. We describethese matters in our audit report, unless laws and regulations prohibit the public disclosure of these matters, orin rare cases, if it is reasonably expected that the negative consequences of communicating a matter in the auditreport will surpass the benefits in the public interests, we confirm that the matter shall not be communicated inthe audit report.
Asia-Pacific (Group) CertifiedPublic Accountants（ specialgeneral partnership ）
| Asia-Pacific (Group) Certified Public Accountants（ special general partnership ） | Certified Public Accountant of China： （ Engagement Partner ） Certified Public Accountant of China： | |
| Beijing, China | 24 April 2023 | |
Financial statements
1、Consolidated balance sheet
Prepared by:CSG Holding Co.,LTD
31 December 2022
Unit: Yuan
Items
| Items | Notes（Ⅴ） | 31 December 2022 | 1 January 2022 |
| Current assets： | |||
| Cash at bank and on hand | 1 | 4,604,607,779 | 2,765,925,906 |
| Financial assets held for trading | 2 | 999,600,000 | |
| Notes receivable | 3 | 156,943,437 | 19,220,984 |
| Accounts receivable | 4 | 1,179,992,784 | 730,525,687 |
| Receivables Financing | 5 | 1,095,412,643 | 297,046,123 |
| Advances to suppliers | 6 | 183,629,823 | 76,097,276 |
| Other receivables | 7 | 193,847,322 | 183,696,711 |
| Inventories | 8 | 1,783,941,982 | 1,093,805,525 |
| Non-current assets due within one year | 9 | 20,000,000 | |
| Other current assets | 10 | 108,248,545 | 140,705,298 |
| Total current assets | 9,326,624,315 | 6,306,623,510 | |
| Non-current assets： | |||
| Investment properties | 11 | 290,368,105 | 383,084,500 |
| Fixed assets | 12 | 11,243,236,175 | 8,566,299,970 |
| Construction in progress | 13 | 2,520,362,291 | 2,457,982,178 |
| Right-of-use assets | 14 | 9,908,413 | 9,911,935 |
| Intangible assets | 15 | 1,438,102,666 | 1,167,611,402 |
| Development expenditure | 16 | 46,755,816 | 72,019,362 |
| Goodwill | 17 | 7,897,352 | 130,147,859 |
| Long-term prepaid expenses | 18 | 2,647,939 | 3,013,721 |
| Deferred tax assets | 19 | 161,489,749 | 255,045,066 |
| Other non-current assets | 20 | 856,620,485 | 584,162,622 |
| Total non-current assets | 16,577,388,991 | 13,629,278,615 | |
| TOTAL ASSETS | 25,904,013,306 | 19,935,902,125 | |
| Current liabilities： | |||
| Short-term borrowings | 21 | 345,000,000 | 180,770,000 |
| Notes payable | 22 | 994,557,496 | 400,662,713 |
| Accounts payable | 23 | 2,033,542,627 | 1,428,851,312 |
| Contract liabilities | 24 | 418,051,975 | 335,188,642 |
| Employee benefits payable | 25 | 473,616,428 | 426,212,979 |
| Taxes payable | 26 | 161,134,638 | 184,868,824 |
| Other payables | 27 | 537,065,184 | 289,440,477 |
| Including: interest payable | 27 | 99,945,325 | 95,001,362 |
1、Consolidated balance sheet（Continued）
Prepared by:CSG Holding Co.,LTD
31 December 2022
Unit: Yuan
Items
| Items | Notes（V） | 31 December 2022 | 1 January 2022 |
| Current portion of non-current liabilities | 28 | 2,481,433,006 | 503,820,548 |
| Other current liabilities | 29 | 50,407,240 | 40,099,309 |
| Total current liabilities | 7,494,808,594 | 3,789,914,804 | |
| Non-current liabilities： | |||
| Long-term borrowings | 30 | 4,353,589,980 | 1,469,059,824 |
| Debentures payable | 31 | 1,996,587,330 | |
| Lease liabilities | 32 | 3,564,330 | 220,138 |
| Long-term payables | 33 | 129,236,878 | 168,258,062 |
| Deferred income | 34 | 449,875,380 | 564,129,128 |
| Deferred tax liabilities | 19 | 97,266,841 | 84,405,434 |
| Total non-current liabilities | 5,033,533,409 | 4,282,659,916 | |
| Total liabilities | 12,528,342,003 | 8,072,574,720 | |
| Shareholders’ equity： | |||
| Share capital | 35 | 3,070,692,107 | 3,070,692,107 |
| Capital surplus | 36 | 596,997,085 | 596,997,085 |
| Other comprehensive income | 37 | 170,860,478 | 159,200,530 |
| Special reserve | 38 | 731,580 | 7,296,397 |
| Surplus reserve | 39 | 1,228,634,001 | 1,144,887,510 |
| Undistributed profits | 40 | 7,786,968,455 | 6,447,650,867 |
| Total equity attributable to shareholders of parent company | 12,854,883,706 | 11,426,724,496 | |
| Minority interests | 520,787,597 | 436,602,909 | |
| Total shareholders' equity | 13,375,671,303 | 11,863,327,405 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 25,904,013,306 | 19,935,902,125 |
Legal representative：Chen Lin Principal in charge of accounting：Wang Wenxin Head of accountingdepartment：Wang Wenxin
2、Balance sheet of the parent company
Prepared by:CSG Holding Co.,LTD
31 December 2022
Unit: Yuan
Items
| Items | Notes（XV） | 31 December 2022 | 1 January 2022 |
| Current assets： | |||
| Cash at bank and on hand | 2,598,503,883 | 1,961,406,035 | |
| Financial assets held for trading | 999,600,000 | ||
| Notes receivable | 49,194,385 | ||
| Accounts receivable | 1 | 23,994,936 | |
| Receivables Financing | 123,469,960 | ||
| Advances to suppliers | 1,571,283 | 639,164 | |
| Other receivables | 2 | 2,369,431,782 | 2,899,091,405 |
| Including: Dividends receivable | 2 | 375,057,800 | 250,000,000 |
| Non-current assets due within one year | 20,000,000 | ||
| Total current assets | 5,186,166,229 | 5,860,736,604 | |
| Non-current assets： | |||
| Long-term equity investments | 3 | 7,838,487,027 | 6,262,391,694 |
| Fixed assets | 7,876,626 | 11,509,029 | |
| Intangible assets | 5,946,174 | 2,102,548 | |
| Long-term prepaid expenses | 189,806 | ||
| Other non-current assets | 83,297,124 | 104,109,111 | |
| Total non-current assets | 7,935,796,757 | 6,380,112,382 | |
| TOTAL ASSETS | 13,121,962,986 | 12,240,848,986 | |
| Current liabilities： | |||
| Short-term borrowings | 200,000,000 | 100,000,000 | |
| Notes payable | 19,496,400 | ||
| Accounts payable | 661,058 | 315,684 | |
| Contract liabilities | 3,097 | ||
| Employee benefits payable | 63,906,834 | 68,534,315 | |
| Taxes payable | 15,374,554 | 8,316,132 | |
| Other payables | 2,126,409,980 | 2,067,472,879 | |
| Including: interest payable | 95,445,534 | 93,596,328 | |
| Current portion of non-current liabilities | 2,332,402,522 | 400,000,000 | |
| Other current liabilities | 403 | ||
| Total current liabilities | 4,758,254,848 | 2,644,639,010 | |
| Non-current liabilities： | |||
| Long-term borrowings | 1,231,134,000 | 690,000,000 | |
| Debentures payable | 1,996,587,330 | ||
| Deferred income | 172,125,000 | 172,500,000 | |
| Total non-current liabilities | 1,403,259,000 | 2,859,087,330 | |
| Total liabilities | 6,161,513,848 | 5,503,726,340 |
2、Balance sheet of the parent company（Continued）
Prepared by:CSG Holding Co.,LTD
31 December 2022
Unit: Yuan
Items
| Items | Notes（XV） | 31 December 2022 | 1 January 2022 |
| Shareholders’ equity： | |||
| Share capital | 3,070,692,107 | 3,070,692,107 | |
| Capital surplus | 741,824,399 | 741,824,399 | |
| Surplus reserve | 1,243,179,361 | 1,159,432,870 | |
| Undistributed profits | 1,904,753,271 | 1,765,173,270 | |
| Total shareholders' equity | 6,960,449,138 | 6,737,122,646 | |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 13,121,962,986 | 12,240,848,986 |
3、Consolidated income statement
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | Notes（V） | 2022 | 2021 |
| I.Total business income | 41 | 15,198,706,998 | 13,672,372,823 |
| Including: operating income | 41 | 15,198,706,998 | 13,672,372,823 |
| II.Total operating costs | 12,967,322,642 | 10,731,026,191 | |
| Including: operating costs | 41 | 11,006,795,373 | 8,896,148,794 |
| Taxes and surcharges | 42 | 135,473,792 | 148,655,418 |
| Selling and distribution expenses | 43 | 313,754,976 | 270,695,433 |
| General and administrative expenses | 44 | 718,938,905 | 752,605,507 |
| Research and development expenses | 45 | 644,146,614 | 511,738,848 |
| Financial expenses | 46 | 148,212,982 | 151,182,191 |
| Including: interest expenses | 46 | 212,724,263 | 188,858,163 |
| Interest income | 46 | 71,751,429 | 42,702,029 |
| Add：Other Income | 47 | 188,367,781 | 106,465,817 |
| Investment income（Loss is listed with “-”） | 48 | 31,567,854 | 16,847,647 |
| Credit impairment loss（Loss is listed with “-”） | 49 | -47,720,107 | -153,894,437 |
| Asset impairment loss（Loss is listed with “-”） | 50 | -155,563,090 | -981,665,546 |
| Income on disposal assets（Loss is listed with “-”） | 51 | 15,213,059 | -1,493,248 |
| III.Operating profit（Loss is listed with “-”） | 2,263,249,853 | 1,927,606,865 | |
| Add: Non-operating revenue | 52 | 22,692,272 | 12,604,534 |
| Less: Non-operating expenses | 53 | 7,067,178 | 26,130,744 |
| IV.Total profit（Loss is listed with “-”） | 2,278,874,947 | 1,914,080,655 | |
| Less: Income tax expenses | 54 | 235,487,759 | 355,979,031 |
| V.Net profit (Net loss is listed with “-”) | 2,043,387,188 | 1,558,101,624 | |
| （1）Classified by continuous operation: | |||
| 1. Net income from continuing operations (Net loss is listed with “-”) | 2,043,387,188 | 1,558,101,624 | |
| （2）Classified by equity ownership: | |||
| 1. Attributable to shareholders of parent company | 2,037,202,500 | 1,526,392,754 | |
| 2. Minority interests | 6,184,688 | 31,708,870 | |
| VI.Other comprehensive income net after tax | 37 | 11,659,948 | -2,616,289 |
| Other comprehensive income net after tax attributable to shareholders of parent company | 37 | 11,659,948 | -2,616,289 |
| （1）Other comprehensive income to be reclassified into profit and loss | 37 | 11,659,948 | -2,616,289 |
| 1. Translation differences arising on translation of foreign currency financial statement | 37 | 11,659,948 | -2,616,289 |
| VII.Total comprehensive income | 2,055,047,136 | 1,555,485,335 | |
| Total comprehensive income attributable to shareholders of the parent company shareholders of parent company | 2,048,862,448 | 1,523,776,465 | |
| Total comprehensive income attributable to minority shareholders minority interests | 6,184,688 | 31,708,870 | |
| VIII.Earnings per share | |||
| （1）Basic earnings per share | 0.66 | 0.50 | |
| （2）Diluted earnings per share | 0.66 | 0.50 |
Legal representative：Chen Lin Principal in charge of accounting：Wang Wenxin Head of accountingdepartment：Wang Wenxin
4、Profit Statement of Parent Company
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | Notes（XV） | 2022 | 2021 |
| I.Operating income | 4 | 373,707,646 | 294,247,989 |
| Less: operating costs | |||
| Taxes and surcharges | 2,586,831 | 2,560,152 | |
| Selling and distribution expenses | 6,568,389 | ||
| General and administrative expenses | 298,654,806 | 297,252,293 | |
| Research and development expenses | 519,153 | 2,631,501 | |
| Financial expenses | 109,425,364 | 138,319,862 | |
| Including: interest expenses | 178,327,937 | 177,942,376 | |
| Interest income | 66,711,595 | 39,200,530 | |
| Add：Other Income | 8,621,910 | 3,162,514 | |
| Investment income（Loss is listed with “-”） | 5 | 872,638,711 | 1,279,006,799 |
| Credit impairment loss（Loss is listed with “-”） | -530,945 | -48,513,009 | |
| Income on disposal assets（Loss is listed with “-”） | 2,485,755 | 6,893,580 | |
| II.Operating profit（Loss is listed with “-”） | 839,168,534 | 1,094,034,065 | |
| Add: Non-operating revenue | 11,000 | 383,646 | |
| Less: Non-operating expenses | 1,714,621 | 15,026,836 | |
| III.Total profit（Loss is listed with “-”） | 837,464,913 | 1,079,390,875 | |
| Less: Income tax expenses | |||
| IV.Net profit (Net loss is listed with “-”) | 837,464,913 | 1,079,390,875 | |
| （1）Net income from continuing operations (Net loss is listed with “-”) | 837,464,913 | 1,079,390,875 | |
| （2）Net income from discontinued operations (Net loss is listed with “-”) | |||
| V.Total comprehensive income | 837,464,913 | 1,079,390,875 | |
| VI.Earnings per share |
5、Consolidated statement of cash flows
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | Notes（V） | 2022 | 2021 |
| I.Cash flows from operating activities： | |||
| Cash received from sales of goods or rendering of services | 15,302,707,449 | 15,186,533,367 | |
| Refund of taxes and surcharges | 342,195,840 | 53,331,689 | |
| Cash received relating to other operating activities | 56（1） | 185,973,569 | 261,031,274 |
| Sub-total of cash inflows | 15,830,876,858 | 15,500,896,330 | |
| Cash paid for goods and services | 10,747,860,256 | 8,300,217,465 | |
| Cash paid to and on behalf of employees | 1,859,857,713 | 1,645,581,548 | |
| Payments of taxes and surcharges | 897,972,107 | 1,214,512,667 | |
| Cash paid relating to other operating activities | 56（2） | 368,063,551 | 440,936,620 |
| Sub-total of cash outflows | 13,873,753,627 | 11,601,248,300 | |
| Net cash flows from/(used in) operating activities | 1,957,123,231 | 3,899,648,030 | |
| II.Cash flows from investing activities： | |||
| Cash received from returns on investments | 3,697,760,000 | 4,424,000,000 | |
| Cash received from returns on invest income | 29,929,395 | 16,163,055 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 51,091,120 | 4,916,078 | |
| Cash received relating to other investing activities | 56（3） | 29,927,321 | 21,682,371 |
| Sub-total of cash inflows | 3,808,707,836 | 4,466,761,504 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term asset | 3,416,942,337 | 1,821,801,243 | |
| Cash paid to acquire investments | 2,698,160,000 | 5,523,600,000 | |
| Cash paid relating to other investing activities | 56（4） | 24,000,000 | |
| Sub-total of cash outflows | 6,115,102,337 | 7,369,401,243 | |
| Net cash flows (used in)/from investing activities | -2,306,394,501 | -2,902,639,739 | |
| III.Cash flows from financing activities： | |||
| Cash received from investors | 78,000,000 | 2,000,000 | |
| Including: Cash received from absorbing minority shareholders’ investment by subsidiaries | 78,000,000 | 2,000,000 | |
| Cash received from borrowings | 4,323,690,981 | 1,637,354,868 | |
| Cash received relating to other financing activities | 56（5） | 200,000,000 | |
| Sub-total of cash inflows | 4,401,690,981 | 1,839,354,868 | |
| Cash repayments of borrowings | 1,297,812,888 | 1,655,022,054 | |
| Cash payments for interest expenses and distribution of dividends or profits | 878,428,889 | 547,085,016 | |
| Cash payments relating to other financing activities | 56（6） | 46,045,514 | |
| Sub-total of cash outflows | 2,222,287,291 | 2,202,107,070 | |
| Net cash flows (used in)/from financing activities | 2,179,403,690 | -362,752,202 | |
| IV.Effect of foreign exchange rate changes on cash | 7,408,259 | -1,806,713 | |
| V.Net increase/(decrease) in cash and cash equivalents | 1,837,540,679 | 632,449,376 | |
| Add: Cash and cash equivalents at beginning of year | 2,756,477,572 | 2,124,028,196 | |
| VI.Cash and cash equivalents at end of year | 4,594,018,251 | 2,756,477,572 |
Legal representative：Chen Lin Principal in charge of accounting：Wang Wenxin Head ofaccounting department：Wang Wenxin
6、Statement of cash flows of the parent company
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | 2022 | 2021 |
| I.Cash flows from operating activities： | ||
| Cash received from sales of goods or rendering of services | 459,100,809 | 312,321,151 |
| Cash received relating to other operating activities | 74,072,939 | 44,045,856 |
| Sub-total of cash inflows | 533,173,748 | 356,367,007 |
| Cash paid for goods and services | 64,147,484 | |
| Cash paid to and on behalf of employees | 259,934,484 | 232,793,262 |
| Payments of taxes and surcharges | 17,212,621 | 20,131,229 |
| Cash paid relating to other operating activities | 38,421,982 | 51,990,613 |
| Sub-total of cash outflows | 379,716,571 | 304,915,104 |
| Net cash flows from/(used in) operating activities | 153,457,177 | 51,451,903 |
| II.Cash flows from investing activities： | ||
| Cash received from returns on investments | 3,697,760,000 | 4,360,335,176 |
| Cash received from returns on invest income | 745,942,452 | 1,277,124,439 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 2,488,521 | 2,663,907 |
| Sub-total of cash inflows | 4,446,190,973 | 5,640,123,522 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 7,649,720 | 5,406,991 |
| Cash paid to acquire investments | 4,274,255,333 | 5,877,819,000 |
| Sub-total of cash outflows | 4,281,905,053 | 5,883,225,991 |
| Net cash flows (used in)/from investing activities | 164,285,920 | -243,102,469 |
| III.Cash flows from financing activities： | ||
| Cash received from borrowings | 1,571,720,000 | 814,000,000 |
| Cash received relating to other financing activities | 528,709,901 | 1,960,258,923 |
| Sub-total of cash inflows | 2,100,429,901 | 2,774,258,923 |
| Cash repayments of borrowings | 997,500,000 | 1,173,800,000 |
| Cash payments for interest expenses and distribution of dividends or profits | 787,887,961 | 520,361,295 |
| Sub-total of cash outflows | 1,785,387,961 | 1,694,161,295 |
| Net cash flows (used in)/from financing activities | 315,041,940 | 1,080,097,628 |
| IV.Effect of foreign exchange rate changes on cash | 1,823,319 | 748,101 |
| V.Net increase/(decrease) in cash and cash equivalents | 634,608,356 | 889,195,163 |
| Add: Cash and cash equivalents at beginning of year | 1,960,395,527 | 1,071,200,364 |
| VI.Cash and cash equivalents at end of year | 2,595,003,883 | 1,960,395,527 |
7、Consolidated statement of changes in owner's equity
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | 2022 | ||||||||
| 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（Restated） | 3,070,692,107 | 596,997,085 | 159,200,530 | 7,296,397 | 1,144,887,510 | 6,447,650,867 | 11,426,724,496 | 436,602,909 | 11,863,327,405 |
| II.Balance at 1 January 2022 | 3,070,692,107 | 596,997,085 | 159,200,530 | 7,296,397 | 1,144,887,510 | 6,447,650,867 | 11,426,724,496 | 436,602,909 | 11,863,327,405 |
| III.Movements for the year ended 31 December 2022 (Decrease is listed with “-”) | 11,659,948 | -6,564,817 | 83,746,491 | 1,339,317,588 | 1,428,159,210 | 84,184,688 | 1,512,343,898 | ||
| （1）Total comprehensive income | 11,659,948 | 2,037,202,500 | 2,048,862,448 | 6,184,688 | 2,055,047,136 | ||||
| （2）Capital increase or decrease from shareholder | 78,000,000 | 78,000,000 | |||||||
| 1． Ordinary shares contributed by the owner | 78,000,000 | 78,000,000 | |||||||
| （3）Profit distribution | 83,746,491 | -697,884,912 | -614,138,421 | -614,138,421 | |||||
| 1、Appropriation to surplus reserve | 83,746,491 | -83,746,491 | |||||||
| 2．Distribution to the shareholders | -614,138,421 | -614,138,421 | -614,138,421 | ||||||
| （4）Special reserve | -6,564,817 | -6,564,817 | -6,564,817 | ||||||
| 1．Special reserve appropriate | 8,605,776 | 8,605,776 | 8,605,776 | ||||||
2．Special reserve used
| 2．Special reserve used | 15,170,593 | 15,170,593 | 15,170,593 | ||||||
| IV.Balance at 31 December 2022 | 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 |
7、Consolidated statement of changes in owner's equity（Continued）
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | 2021 | ||||||||
| 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 | 161,816,819 | 10,269,002 | 1,036,948,422 | 5,336,266,412 | 10,212,989,847 | 402,894,039 | 10,615,883,886 |
| II.Balance at 1 January 2021 | 3,070,692,107 | 596,997,085 | 161,816,819 | 10,269,002 | 1,036,948,422 | 5,336,266,412 | 10,212,989,847 | 402,894,039 | 10,615,883,886 |
| III.Movements for the year ended 31 December 2021 (Decrease is listed with “-”) | -2,616,289 | -2,972,605 | 107,939,088 | 1,111,384,455 | 1,213,734,649 | 33,708,870 | 1,247,443,519 | ||
| （1）Total comprehensive income | -2,616,289 | 1,526,392,754 | 1,523,776,465 | 31,708,870 | 1,555,485,335 | ||||
| （2）Capital increase or decrease from shareholder | 2,000,000 | 2,000,000 | |||||||
| 1．Ordinary shares contributed by the owner | 2,000,000 | 2,000,000 | |||||||
| （3）Profit distribution | 107,939,088 | -415,008,299 | -307,069,211 | -307,069,211 | |||||
| 1．Appropriation to surplus reserve | 107,939,088 | -107,939,088 | |||||||
| 2．Distribution to the shareholders | -307,069,211 | -307,069,211 | -307,069,211 | ||||||
| （4）Special reserve | -2,972,605 | -2,972,605 | -2,972,605 | ||||||
| 1．Special reserve used | 2,972,605 | 2,972,605 | 2,972,605 | ||||||
| IV.Balance at 31 December 2021 | 3,070,692,107 | 596,997,085 | 159,200,530 | 7,296,397 | 1,144,887,510 | 6,447,650,867 | 11,426,724,496 | 436,602,909 | 11,863,327,405 |
Legal representative：Chen Lin Principal in charge of accounting：Wang Wenxin Head of accounting department：Wang Wenxin
8、Statement of changes in owners' equity of the parent company
Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | 2022 | ||||
| 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 | 1,159,432,870 | 1,765,173,270 | 6,737,122,646 |
| II.Balance at 1 January 2022 | 3,070,692,107 | 741,824,399 | 1,159,432,870 | 1,765,173,270 | 6,737,122,646 |
| III.Movements for the year ended 31 December 2022 (Decrease is listed with “-”) | 83,746,491 | 139,580,001 | 223,326,492 | ||
| （1）Total comprehensive income | 837,464,913 | 837,464,913 | |||
| （2）Capital increase or decrease from shareholder | |||||
| （3）Profit distribution | 83,746,491 | -697,884,912 | -614,138,421 | ||
| 1．Appropriation to surplus reserve | 83,746,491 | -83,746,491 | |||
| 2．Distribution to the shareholders | -614,138,421 | -614,138,421 | |||
| （4）Internal carry-forward of owners' equity | |||||
| （5）Special reserve | |||||
| （6）Others | |||||
| IV.Balance at 31 December 2022 | 3,070,692,107 | 741,824,399 | 1,243,179,361 | 1,904,753,271 | 6,960,449,138 |
8、Statement of changes in owners' equity of the parent company（Continued）Prepared by:CSG Holding Co.,LTD
Unit: Yuan
Items
| Items | 2021 | ||||
| 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 | 1,051,493,782 | 1,100,790,694 | 5,964,800,982 |
| II、Balance at 1 January 2021 | 3,070,692,107 | 741,824,399 | 1,051,493,782 | 1,100,790,694 | 5,964,800,982 |
| III、Movements for the year ended 31 December 2021 (Decrease is listed with “-”) | 107,939,088 | 664,382,576 | 772,321,664 | ||
| （1）Total comprehensive income | 1,079,390,875 | 1,079,390,875 | |||
| （2）Capital increase or decrease from shareholder | |||||
| （3）Profit distribution | 107,939,088 | -415,008,299 | -307,069,211 | ||
| 1．Appropriation to surplus reserve | 107,939,088 | -107,939,088 | |||
| 2．Distribution to the shareholders | -307,069,211 | -307,069,211 | |||
| （4）Internal carry-forward of owners' equity | |||||
| （5）Special reserve | |||||
| （6）Others | |||||
| IV、Balance at 31 December 2021 | 3,070,692,107 | 741,824,399 | 1,159,432,870 | 1,765,173,270 | 6,737,122,646 |
CSG HOLDING CO.,LTDNOTES TO FINANCIAL STATEMENTS
（Unless otherwise specified, the monetary unit shall be RMB）
I、GENERAL INFORMATION
CSG Holding Co.,LTD (the “Company”) was incorporated in September 1984, known as China South GlassCompany, 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 Company was registered in Shenzhen, Guangdong Province of the People's Republic of China andits headquarters is located in Shenzhen, Guangdong Province of the People's Republic of China. The Company 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 31 December 2022, theregistered capital was RMB3,070,692,107, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufactureand sales of flat glass, specialised glass, engineering glass, energy saving glass, silicon related materials,polycrystalline silicon and solar components and electronic-grade display device glass and the construction andoperation of photovoltaic plant etc.
The financial statements were authorised for issue by the Board of Directors on 24 April 2023.
Details on the majors subsidiaries included in the consolidated scope in current year were stated in Note .II、BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1、Basis of preparation of financial statements
The financial statements are prepared in accordance with the Accounting Standards for Business Enterprises - BasicStandard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standard forBusiness Enterprises” or “CAS”), and Information Disclosure Rule No. 15 for Companies with Public TradedSecurities - Financial Reporting General Provision issued by China Security Regulatory Commission.
2、Going concern
The present financial report has been prepared on the basis of going concern assumptions.
III、SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATESThe Group determines its specific accounting policies and accounting estimates to manufacturing and operationfeature. It mainly reflected in expected credit impairment losses of receivables was measured, inventory costingmethod, Depreciation of fixed assets and amortization of intangible assets, criteria for determining capitaliseddevelopment expenditure, and timing for revenue recognition.Please see the key judgements adopted by the Group in applying important accounting policies.
1、Statement of compliance with the Accounting Standards for Business EnterprisesThe financial statements of the Company for the year ended 31 December 2022 are in compliance with theAccounting Standards for Business Enterprises, and truly and completely present the financial position of theconsolidated and the Company as at 31 December 2022 and their financial performance, cash flows for the year thenended.
2、Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
3、Operating cycle
The Company’s operating cycle starts on 1 January and ends on 31 December.
4、Recording currency
The recording currency is Renminbi (RMB).
5、Accounting treatment of business combinations under the common control and under non- commoncontrol(a) Business combinations involving enterprises under common controlThe consideration paid and net assets obtained by the absorbing party in a business combination are measured at bookvalue.If the merged party was acquired by the ultimate controlling party from a third party in the previous year, theassets and liabilities of the merged party (including the goodwill formed by the ultimate controlling party’sacquisition of the merged party). The difference between book value of the net assets obtained from the combinationand book value of the consideration paid for the combination is treated as an adjustment to capital surplus (sharepremium). If the capital surplus (share premium) is not sufficient to absorb the difference, the remaining balance isadjusted against retained earnings. Costs directly attributable to the combination are included in profit or loss in theperiod in which they are incurred. Transaction costs associated with the issue of equity or debt securities for thebusiness combination are included in the initially recognised amounts of the equity or debt securities.
(b) Business combinations involving enterprises under non-common controlThe cost of combination and identifiable net assets obtained by the acquirer in a business combination are measuredat fair value at the acquisition date. Where the cost of the combination exceeds the acquirer’s interest in the fair value
of the acquiree’s identifiable net assets, the difference is recognised as goodwill; where the cost of combination islower than the acquirer’s interest in the fair value of the acquiree’s identifiable net assets, the difference is recognisedin profit or loss for the current period. Costs directly attributable to the combination are included in profit or loss inthe period in which they are incurred. Transaction costs associated with the issue of equity or debt securities for thebusiness combination are included in the initially recognised amounts of the equity or debt securities.
6、Methodology for the preparation of consolidated financial statement
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date on which the Group obtains control and are de-consolidated from the datethat such control ceases. For a subsidiary that is acquired in a business combination involving enterprises undercommon control, it is included in the consolidated financial statements from the date when it, together with theCompany, comes under common control of the ultimate controlling party. The portion of the net profits realisedbefore the combination date is presented separately in the consolidated income statement.
In preparing the consolidated financial statements, where the accounting policies and the accounting periods of theCompany and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordancewith the accounting policies and the accounting period of the Company. For subsidiaries acquired from businesscombinations involving enterprises not under common control, the individual financial statements of the subsidiariesare adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financialstatements. The portion of subsidiaries’ equity and the portion of a subsidiaries’ net profits and losses andcomprehensive incomes for the period not attributable to Company are recognised as minority interests and presentedseparately in the consolidated financial statements under equity, net profits and total comprehensive incomerespectively. Unrealised profits and losses resulting from the sales of assets by the Company to its subsidiaries arefully eliminated against net profit attributable to shareholders of the parent company. Unrealised profits and lossesresulting from the sales of assets by a subsidiary to the Company are eliminated and allocated between net profitattributable to shareholders of the parent company and non-controlling interests in accordance with the allocationproportion of the parent company in the subsidiary. Unrealised profits and losses resulting from the sales of assets byone subsidiary to another are eliminated and allocated between net profit attributable to shareholders of the parentcompany and non-controlling interests in accordance with the allocation proportion of the parent in the subsidiary.
After the control over the subsidiary has been gained, whole or partial minority equities of the subsidiary owned byminority shareholders are acquired from the subsidiary’s minority shareholders. In the consolidated financialstatements, the subsidiary's assets and liabilities are reflected with amount based on continuous calculation startingfrom the acquisition date or consolidation date. Capital surplus is adjusted according to the difference between newlyincreased long-term equity investment arising from acquisition of minority equity and the share of net assetscalculated based on current shareholding ratio that the parent company is entitled to. The share is subject tocontinuous calculation starting from the acquisition date or consolidation date. If the capital surplus (capital premiumor share capital premium) is not sufficient to absorb the difference, the remaining balance is adjusted against retainedearnings.If the accounting treatment of a transaction which considers the Group as an accounting entity is different from thatconsiders the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7、Standards for determining cash and cash equivalents
Cash and cash equivalents refer to cash in hand, deposits that can be used for payment at any time, and investmentswith short holding periods, strong liquidity, easy conversion into known amounts of cash, and low risk of valuechanges.
8、Foreign currency transactions and translation of foreign currency statement
(a) Foreign currency transactionForeign currency transactions are translated into RMB using the exchange rates prevailing at the dates of thetransactions.On the balance sheet date, monetary items denominated in foreign currencies are translated into RMB using the spotexchange rates on the balance sheet date. Exchange differences arising from these translations are recognised in profitor loss or other comprehensive income for the current period, except for those attributable to foreign currencyborrowings that have been taken out specifically for the acquisition or construction of qualifying assets, which arecapitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that aremeasured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of thetransactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statementsThe asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates onthe balance sheet date. Among the shareholders’ equity items, the items other than “undistributed profits” aretranslated at the spot exchange rates of the transaction dates. The income and expense items in the income statementsof overseas operations are translated at the spot exchange rates of the transaction dates. The differences arising fromthe above translation are presented separately in other comprehensive income items in the shareholders’ equity. Thecash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effectof exchange rate changes on cash is presented separately in the cash flow statement.
9、Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity. A financial asset or a financial liability is recognised whenthe Group becomes a party to the contractual provisions of the instrument.
(a) Financial assets
(i) Classification and measurement
Based on the business model for managing the financial assets and the contractual cash flow characteristicsof the financial assets, financial assets are classified as: (1) financial assets at amortised cost; (2) financial assets atfair value through other comprehensive income; (3) financial assets at fair value through profit or loss.
The financial assets are measured at fair value at initial recognition. Related transaction costs that areattributable to the acquisition of the financial assets are included in the initially recognised amounts, except for thefinancial assets at fair value through profit or loss, the related transaction costs of which are recognised directly
in profit or loss for the current period. Accounts receivable or notes receivable arising from sales ofproducts or rendering of services (excluding or without regard to significant financing components) areinitially recognised at the consideration that is entitled to be charged by the Group as expected.
Debt instruments
The debt instruments held by the Group refer to the instruments that meet the definition of financial liabilitiesfrom the perspective of the issuer, and are measured in the following ways.
Measured at amortised cost
The objective of the Group's business model is to hold the financial assets to collect the contractual cashflows, and the contractual cash flow characteristics are consistent with a basic lending arrangement, whichgives rise on specified dates to the contractual cash flows that are solely payments of principal and interest on theprincipal amount outstanding. The interest income of such financial assets is recognised using the effective interestmethod.Such financial assets mainly include cash at bank and on hand, accounts receivable, other receivables, debtinvestments and long-term receivables. The Group presents debt investments and long-term receivables maturingwithin one year (inclusive) from the balance sheet date as non-current assets maturing within one year; Debtinvestments with a maturity of one year (inclusive) at the time of acquisition are listed as other current assets.
Financial assets at fair value through other comprehensive income:
The objective of the Group's business model is to hold the financial assets to collect the contractual cash flows andselling as target, and the contractual cash flow characteristics are consistent with a basic lendingarrangement.Such financial assets are measured at fair value and their changes are included in other comprehensiveincome, but impairment losses or gains, exchange gains and losses, and interest income calculated by the effectiveinterest rate method are all included in the current profit and loss.Such financial assets mainly comprise receivablefinancing and other financial debt investment.Other financial debt investment that are due within one year (inclusive)as from the balance sheet date are included in the current portion as other current assets.
Measured at fair value through profit or loss:
Debt instruments held by the Group that are not divided into those at amortised cost, or those measured at fair valuethrough other comprehensive income, are measured at fair value through profit or loss and included infinancial assets held for trading. At initial recognition, the Group designates a portion of financial assets asat fair value through profit or loss to eliminate or significantly reduce an accounting mismatch. Financial assetsthat are due within one year (inclusive) as from the balance sheet date and are expected to be held over one yearare included in other non-current financial assets.
Equity instruments
Investments in equity instruments, over which the Group has no control, joint control or significant influence,are measured at fair value through profit or loss under financial assets held for trading; investments in equity
instruments expected to be held over one year as from the balance sheet date are included in other non-current financial assets.In addition, a portion of certain investments in equity instruments not held for trading are designated as financialassets at fair value through other comprehensive income under other investments in equity instruments. Therelevant dividend income of such financial assets is recognised in profit or loss for the current period.
(ii) Impairment
The Group confirms the loss provision based on expected credit losses for financial assets measured at amortisedcost,debt instrument investments at fair value through other comprehensive income, and financial guarantee contracts,based on expected credit losses (ECL) and recognizes allowances for losses .
Giving consideration to reasonable and supportable information on past events, current conditions andforecasts of future economic conditions, as well as the default risk weight , the expected credit loss was confirmed.
On each balance sheet date, the expected credit losses of financial instruments at different stages aremeasured respectively. 12-month ECL provision is recognised for financial instruments in Stage 1 that havenot had a significant increase in credit risk since initial recognition; lifetime ECL provision is recognisedfor financial instruments in Stage 2 that have had a significant increase in credit risk yet without creditimpairment since initial recognition; and lifetime ECL provision is recognised for financial instruments in Stage3 that have had credit impairment since initial recognition.
For the financial instruments with lower credit risk on the balance sheet date, the Group assumes there isno significant increase in credit risk since initial recognition and recognises the 12-month ECL provision.
For the financial instruments in Stage 1, Stage 2 and with lower credit risk, the Group calculates the interest incomeby applying the effective interest rate to the gross carrying amount (before deduction of the impairmentprovision). For the financial instrument in Stage 3, the interest income is calculated by applying the effectiveinterest rate to the amortised cost (after deduction of the impairment provision from the gross carrying amount).
For notes and accounts receivables and factoring receivables arising from daily business activities such as sellingcommodities and providing labor services, the Group recognises the lifetime expected credit loss provisionregardless of whether there exists a significant financing component.
In case the expected credit losses of an individually assessed financial asset cannot be evaluated with reasonable cost,the Group divides the receivables into certain groupings based on credit risk characteristics, and calculates theexpected credit losses for the groupings. Basis for determined groupings and method for provision are as follows:
Class
| Class | Item | Method |
| Notes receivables Portfolio 1 | Bank acceptance Notes | Expected credit loss method |
| Notes receivables Portfolio 2 | Trade acceptance Notes | Expected credit loss method |
| Accounts receivables Portfolio 1 | Receivables non-related third party | Expected credit loss method |
| Accounts receivables Portfolio 2 | Receivables related party | Expected credit loss method |
| Receivables Financing Portfolio 1 | Bank acceptance Notes | Expected credit loss method |
Other receivables Portfolio 1
| Other receivables Portfolio 1 | Receivables non-related third party | Expected credit loss method |
| Other receivables Portfolio 2 | Receivables related party | Expected credit loss method |
For notes and accounts receivables and receivable financing arising from daily business activities such as sellingcommodities and providing labor services, the Group refers to historical credit loss experience, combined withcurrent conditions and predictions of future economic conditions . In addition to notes receivable, factoringreceivables and other receivables classified as a combination, the Group refers to historical credit loss experience,combines current conditions and predictions of future economic conditions, and passes default risk exposure andfuture 12 The expected credit loss rate within a month or the entire duration is calculated as the expected credit loss.
The Group recognises the loss provision made or reversed into profit or loss for the current period. For debtinstruments that are held at fair value and whose changes are included in other comprehensive income, the Groupadjusts other comprehensive income while accounting for impairment losses or gains in the current profit or loss.
(iii) Derecognition
A financial asset is derecognised when any of the below criteria is met: (1) the contractual rights to receive thecash flows from the financial asset expire; (2) the financial asset has been transferred and the Group transferssubstantially all the risks and rewards of ownership of the financial asset to the transferee; or (3) thefinancial asset has been transferred and the Group has not retained control of the financial asset, althoughthe Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset.
(b) Financial liabilitiesFinancial liabilities are classified as financial liabilities at amortised cost and financial liabilities at fair valuethrough profit or loss at initial recognition.。The Group's financial liabilities are mainly comprise financial liabilities at amortised cost, including bills payable,accounts payable, and other payables. This type of financial liability is initially measured at its fair value afterdeducting transaction costs, and is subsequently measured using the actual interest rate method. If the maturity is lessthan one year (including one year), it is listed as current liabilities; Those with a maturity of less than one year(including one year) are listed as current liabilities; those with a maturity of more than one year but due within oneyear (including one year) from the balance sheet date are listed as non-current liabilities due within one year. The restare listed as non-current liabilities.A financial liability is derecognised or partly derecognised when the underlying present obligation isdischarged or partly discharged. The difference between the carrying amount of the derecognised part of thefinancial liability and the consideration paid is recognised in profit or loss for the current period.(c) Determination of fair value of financial instrumentsThe fair value of a financial instrument that is traded in an active market is determined at the quoted price inthe active market. The fair value of a financial instrument that is not traded in an active market is determinedby using a valuation technique. In valuation, the Group adopts valuation techniques applicable in the currentsituation and supported by adequate available data and other information, selects inputs with the samecharacteristics as those of assets or liabilities considered in relevant transactions of assets or liabilities bymarket participants, and gives priority to the use of relevant observable inputs. When relevant observableinputs are not available or feasible, unobservable inputs are adopted.
10、Inventories
(a) ClassificationInventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnovermaterials, and are measured at the lower of cost and net realisable value.
(b) Issued Inventory costing methodCost is determined using the weighted average method. The cost of finished goods and work in progress compriseraw materials, direct labour and systematically allocated production overhead based on the normal productioncapacity.
(c) Amortisation methods of low value consumables and packaging materialsTurnover materials include low value consumables and packaging materials, which are expensed when issued.
(d) The determination of net realisable value and the method of provision for decline in the value of inventoriesProvision for decline in the value of inventories is determined at the excess amount of book values of the inventoriesover their net realisable value. Net realisable value is determined based on the estimated selling price in the ordinarycourse of business, less the estimated costs to completion and estimated costs necessary to make the sale and relatedtaxes.
(e) The Group adopts the perpetual inventory system.
11、Assets classified as held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied:
(1) the non-current asset or the disposal group is available for immediate sale in its present condition subject to termsthat are traditionally and customary for sales; (2) the Group has made a resolution and obtained appropriate approvalfor disposal of the non-current asset or the disposal group, and the transfer is to be completed within one year.
Non-current assets (except for financial assets, investment properties at fair value and deferred tax assets) that meetthe recognition criteria for held for sale are recognised at the amount equal to the lower of the fair value less costs tosell and book value. The difference between fair value less costs to sell and carrying amount, should be presented asimpairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for ascurrent assets; while liabilities included in disposal groups classified as held for sale are accounted for as currentliabilities, and are presented separately in the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale,and is separately identifiable operationally and for financial reporting purposes, and satisfies one of the followingconditions: (1) represents a separate major line of business or geographical area of operations; (2) is part of a singlecoordinated plan to dispose of a separate major line of business or geographical area of operations; and (3) is asubsidiary acquired exclusively with a view to resale.
The discontinued operation profits on income statement presentation have included the profits and loss of operationand disposal.
12、Long-term equity investments
Long-term equity investments comprise the Company’s long-term equity investments in its subsidiaries, and theGroup’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees thatthe Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial statements, and adjustedby using the equity method when preparing the consolidated financial statements. Investments in associates areaccounted for using the equity method.
(a) Initial recognition of investment costFor long-term equity investments formed in business combination: when obtained from business combinationsinvolving entities under common control, the long-term equity investment is stated at carrying amount of equity forthe combined parties at the time of merger; when the long-term equity investment obtained from businesscombinations involving entities not under common control, the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured atactual purchase price; the long-term investment obtained by issuing equity securities is stated at fair value of equitysecurities as initial investment cost.
(b)Subsequent measurement and recognition of related profit or lossFor long-term equity investments accounted for using the cost method, they are measured at the initial investmentcosts, and cash dividends or profit distribution declared by the investees are recognised as investment income inprofit or loss.For long-term equity investments accounted for using the equity method, where the initial investment cost of a long-term equity investment exceeds the Group’s share of the fair value of the investee’s identifiable net assets at theacquisition date, the long-term equity investment is measured at the initial investment cost; where the initialinvestment cost is less than the Group’s share of the fair value of the investee’s identifiable net assets at theacquisition date, the difference is included in profit or loss and the cost of the long-term equity investment is adjustedupwards accordingly.Under the equity method, the Group recognises the investment income according to its share of net profit or loss ofthe investee. The Group discontinues recognising its share of the net losses of an investee after book values of thelong-term equity investment together with any long-term interests that in substance form part of the investor’s netinvestment in the investee are reduced to zero. However, if the Group has obligations for additional losses and thecriteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, theGroup continues recognising the investment losses and the provisions. For changes in owners’ equity of the investeeother than those arising from its net profit or loss, its proportionate share is directly recorded into capital surplus,provided that the proportion of the shareholding of the Group in the investee remains unchanged. Book value of the
investment is reduced by the Group’s share of the profit distribution or cash dividends declared by an investee. Theunrealised profits or losses arising from the intra-group transactions amongst the Group and its investees areeliminated in proportion to the Group’s equity interest in the investees, and then based on which the investment gainsor losses are recognised. Any losses resulting from transactions between the Group and its investees attributable toasset impairment losses are not eliminated.(c) Basis for determining existence of control, jointly control or significant influence over investeesThe term "control" refers to the power in the investees, to obtain variable returns by participating in the relatedbusiness activities of the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operatingpolicies of an enterprise, but not the power to control, or jointly control, the formulation of such policies with otherparties.
(d)Impairment of long-term equity investmentsBook value of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount whenthe recoverable amount is less than book value.
13、Investment property
Investment property includes leased land use rights, land use rights held and provided for to transfer afterappreciation and leased building and construction.
Investment properties are initially measured at acquisition cost. The cost of outsourcing Investment property includesthe purchase price, relevant taxes and other expenditures that can be directly attributable to the asset; the cost of self-built Investment property is determined by the construction of the asset. The composition of the necessaryexpenditures incurred before the usable state.
Investment property adopts the fair value model for subsequent measurement without depreciation or amortization.On the balance sheet date, the book value of the investment properties are initially measured at acquisition cost isadjusted based on the fair value of the investment properties are initially measured at acquisition cost. The differencebetween the fair value and the original book value will be calculated into the current profit and loss.
When the use of an Investment property is changed to self-use, the investment property is converted into fixed assetsor intangible assets from the date of change, and the book value and fair value of the fixed assets and intangible assetsare determined based on the fair value of the investment property on the conversion date. The difference with theoriginal book value of the investment property is included in the current profit and loss. When the purpose of self-usereal estate is changed to earning rent or capital appreciation, from the date of change, the fixed assets or intangibleassets are converted into investment properties are initially measured at acquisition cost, and the fair value on theday of conversion is used as the book value of the investment properties are initially measured at acquisition cost, andthe fair value on the day of conversion If the value is less than the original book value of fixed assets and intangibleassets, the difference is included in the current profit and loss. If the fair value on the day of conversion is greaterthan the original book value of fixed assets and intangible assets, the difference is included in other comprehensiveincome.
When an investment property is disposed of or permanently withdrawn from use and it is expected that no economicbenefits can be obtained from its disposal, the confirmation of the investment real estate shall be terminated. Thedisposal income from the sale, transfer, scrapping or destruction of investment real estate shall deduct its book valueand relevant taxes and shall be included in the current profits and losses. If there is an amount included in othercomprehensive income on the original conversion date, it will also be carried forward and included in the currentprofit and loss.
14、Fixed assets
（1）Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others.Fixed assets are recognised when it is probable that the related economic benefits will probably flow to the Group andthe costs can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at costat the acquisition date.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable thatthe associated economic benefits will flow to the Group and the related cost can be reliably measured. Book value ofthe replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the periodin which they are incurred.
（2）Depreciation methods
Fixed assets are depreciated using the life average method to allocate the cost of the assets to their estimated residualvalues over their estimated useful lives. For the fixed assets that have been provided for impairment loss, the relateddepreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaininguseful lives.
The estimated useful lives, the estimated net residual values expressed as a percentage of cost and the annualdepreciation rates of fixed assets are as follows:
Type
| Type | Depreciation methods | Estimated useful lives | Estimated net residual value | Annual depreciation rate |
| Buildings | the life average method | 20 to 35 years | 5% | 2.71% to 4.75% |
| Machinery and equipment | the life average method | 8 to 20 years | 5% | 4.75% to 11.88% |
| Transportation and others | the life average method | 5 to 8 years | 0% | 12.50% to 20% |
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation method applied to theasset are reviewed, and adjusted as appropriate at each year-end.
（3）Book value of a fixed asset is reduced to the recoverable amount when the recoverable amount isbelow book value.
（4）Disposal
A fixed asset is derecognised on disposal or when no future economic benefits are expected from its use or disposal.The amount of proceeds from disposals on sale, transfer, retirement or damage of a fixed asset net of its carryingamount and related taxes and expenses is recognised in profit or loss for the current period.
15、Construction in progress
Construction in progress is recorded at actual cost. Actual cost comprises construction cost, installation cost,borrowing costs eligible for capitalised condition and necessary expenditures incurred for its intended use. Actualcost also includes net of trial production cost and trial production income before construction in progress is put intoproduction.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, anddepreciation begins from the following month.
Book value of construction in progress is reduced to the recoverable amount when the recoverable amount is belowbook value.
16、Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of an asset that needs asubstantially long period of time for its intended use commence to be capitalised and recorded as part of the cost ofthe asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to theacquisition and construction that are necessary to prepare the asset for its intended use have commenced. Thecapitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for itsintended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed assetis interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction isresumed.
For the specific borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, theamount of borrowing costs eligible for capitalisation is determined by deducting any interest income earned fromdepositing the unused specific borrowings in the banks or any investment income arising on the temporaryinvestment of those borrowings during the capitalisation period.
For the general borrowings obtained for the acquisition or construction of an asset qualifying for capitalisation, theamount of borrowing costs eligible for capitalisation is determined by applying the weighted average effectiveinterest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on theasset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cashflows during the period of expected duration of the borrowings or applicable shorter period are discounted to theinitial amount of the borrowings.
17、Intangible assets
（1）Valuation method, service life, impairment test
Intangible assets, mainly including land use rights, patents and proprietary technologies, exploitation rights and others,are measured at cost.
(a) Land use rightsLand use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If theacquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between theland use rights and the buildings, all of the acquisition costs are recognised as fixed assets.(b) Patents and proprietary technologiesPatents are amortised on a straight-line basis over the estimated use life.
(c) Exploitation rightsExploitation rights are amortised on a straight-line basis over permitted exploitation periods on the exploitationcertificate.
(d) Periodical review of useful life and amortisation methodFor an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at eachyear-end, with adjustment made as appropriate.
(e) Impairment of intangible assetsBook value of intangible assets is reduced to the recoverable amount when the recoverable amount is below bookvalue.
（2）Internal Research and development expenditure accounting policy
The expenditure on an internal research and development project is classified into expenditure on the research phaseand expenditure on the development phase based on its nature and whether there is material uncertainty that theresearch and development activities can form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturingtechnique is recognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure onthe development phase related to the design and testing phase in regards to the final application of manufacturingtechnique is capitalised only if all of the following conditions are satisfied:
·the development of manufacturing technique has been fully demonstrated by technical team;·management has approved the budget for the development of manufacturing technique;·there are research and analysis of pre-market research explaining that products manufactured with such technique arecapable of marketing;·There is sufficient technique and capital to support the development of manufacturing technology and subsequentmass production; and the expenditure on manufacturing technology development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period inwhich they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a
subsequent period. Capitalised expenditure on the development phase is presented as development costs in thebalance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.
18、Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments injoint ventures and associates are tested for impairment if there is any indication that the assets may be impaired on thebalance sheet date; intangible assets not ready for their intended use are tested at least annually for impairment,irrespective of whether there is any indication that they may be impaired. If the result of the impairment test indicatesthat the recoverable amount of an asset is less than its carrying amount, a provision for impairment and animpairment loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an asset’s fair value less costs to sell and the present value of the future cashflows expected to be derived from the asset. Provision for asset impairment is determined and recognised on theindividual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverableamount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assetsthat is able to generate independent cash inflows.
Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespectiveof whether there is any indication that it may be impaired. In conducting the test, book value of goodwill is allocatedto the related asset groups or groups of asset groups which are expected to benefit from the synergies of the businesscombination. If the result of the test indicates that the recoverable amount of an asset group or group of asset groups,including the allocated goodwill, is lower than its book value, the corresponding impairment loss is recognised. Theimpairment loss is first deducted from book value of goodwill that is allocated to the asset group or group of assetgroups, and then deducted from book values of other assets within the asset groups or groups of asset groups inproportion to book values of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequentperiods.
19、Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expensesover more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on thestraight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulatedamortisation.
20、Employee benefitsEmployee benefits include short-term employee benefits, post-employment benefits, termination benefits and otherlong-term employee benefits provided in various forms of consideration in exchange for service rendered byemployees or compensations for the termination of employment relationship.
（1）Short-term employee benefits
Short-term employee benefits include wages or salaries, bonuses, allowances and subsidies, staff welfare, medicalcare, work injury insurance, maternity insurance, housing funds, labour union funds, employee education funds andpaid short-term leave, etc. The employee benefit liabilities are recognised in the accounting period in which theservice is rendered by the employees, with a corresponding charge to the profit or loss for the current period or thecost of relevant assets. Employee benefits which are non-monetary benefits shall be measured at fair value.
（2）Post-employment benefits
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans.Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into aseparate fund and will have no obligation to pay further contributions; and defined benefit plans are post-employmentbenefit plans other than defined contribution plans. During the reporting period, the Group's post-employmentbenefits mainly include basic pensions and unemployment insurance, both of which belong to the definedcontribution plans.
（3）Basic pensions
The Group’s employees participate in the basic pension plan set up and administered by local authorities of Ministryof Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculatedaccording to prescribed bases and percentage by the relevant local authorities. When employees retire, local labourand social security institutions have a duty to pay the basic pension insurance to them. The amounts based on theabove calculations are recognised as liabilities in the accounting period in which the service has been rendered by theemployees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets.
（4）Termination benefits
The Group provides compensation for terminating the employment relationship with employees before the end of theemployment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of theemployment contracts. The Group recognises a liability arising from compensation for termination of theemployment relationship with employees, with a corresponding charge to profit or loss at the earlier of the followingdates: 1) when the Group cannot unilaterally withdraw the offer of termination benefits because of an employmenttermination plan or a curtailment proposal; 2) when the Group recognises costs or expenses related to therestructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as currentliabilities.
21、Provisions
Business restructuring, provisions for product warranties, loss contracts etc. are recognised when the Group has apresent obligation, it is probable that an outflow of economic benefits will be required to settle the obligation, and theamount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related presentobligation. Factors surrounding a contingency, such as the risks, uncertainties and the time value of money, are takeninto account as a whole in reaching the best estimate of a provision. Where the effect of the time value of money ismaterial, the best estimate is determined by discounting the related future cash outflows. The increase in thediscounted amount of the provision arising from passage of time is recognised as interest expense.
Book value of provision is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provisions expected to be paid within one year since the balance sheet date are classified as current liabilities.
22、Share-based payments
Share-based payments are divided into equity-settled and cash-settled payments. The term "equity-settled share-basedpayment" refers to a transaction in which an enterprise grants shares or other equity instruments as a consideration inreturn for services.
Equity-settled share-based payment The Group‘s stock optionstock option plan is the equity-settled share-basedpayment in exchange of employees' services and is measured at the fair value of the equity instruments at grant date.The equity instruments are exercisable after services in vesting period are completed or specified performanceconditions are met. In the vesting period, the services obtained in current period are included in relevant cost andexpenses at the fair value of the equity instruments at grant date based on the best estimate of the number ofexercisable equity instruments, and capital surplus is increased accordingly. The Group makes the best estimate of thenumber of vesting equity instruments based on the latest obtained changes in the number of vested employees,whether the required performance conditions are met, and other follow-up information.If the subsequent informationindicates the number of exercisable equity instruments differs from the previous estimate, an adjustment is made and,on the exercise date, the estimate is revised to equal the number of actual vested equity instruments.
In the period at which performance conditions and term of service are met, the relevant cost and expenses of equity-settled payment should be recognized, and capital surplus is increased accordingly. Before the exercise date, theaccruing amounts of equity-settled payments on balance sheet date reflect the part of expired waiting period andoptimal estimation for the number of the Company final vested equity instruments.
If the non-market conditions and term of service are not met so that share-based payment fail to exercise, the costsand expenses on this portion should not be recognized. If the share-based payment agreement sets out the marketconditions and term of non-vesting, as long as performance conditions and term of service are met, it is should beregard as exercisable right, no matter the market conditions and non-vesting conditions are meet or not.
If the terms of equity-settled payment are modified, at least the service is confirmed in accordance with theunmodified terms. In addition, the increase of the fair value of the authorized equity instruments, or the beneficialchanges to the employees on the modification date, the increase of service are confirmed. If the equity-settledpayment is cancelled, the cancellation date shall be deemed as an expedited exercise, and the unconfirmed amountshall be confirmed immediately. If the employee or other party is able to choose to meet the non-vesting conditionsbut not satisfied in the waiting period, equity-settled payment should be cancelled. But if a new equity instrument isgranted, and the new equity instrument is confirm to replace the old equity instrument which is canceled in the
authorization date of the new equity instrument, the new equity instrument should be disposed by using the sameconditions and terms of the old equity instrument for modifications.
23、Revenue
The Group recognises revenue at the consideration that the Group is entitled to charge as expected when the Grouphas fulfilled the performance obligations in the contract, that is, the customer obtains control over relevant goods orservices.
a. Sales of goodsThe Group mainly sells flat and engineering glass, products related to solar energy, and electronic glass and displays.For domestic sales, the Group delivers the products to a certain place specified in the contract. When the buyer takesover the goods, the Group recognises revenue. For export sales, the Group recognises the revenue when it finishedclearing goods for export and deliver the goods on board the vessel, or when the goods are delivered to a certain placespecified in the contract. The credit period granted by the Group to customers is determined based on the customer'scredit risk characteristics, consistent with industry practices, and there is no major financing component. The Group’sobligation to transfer goods to customers for consideration received or receivable from customers is listed as contractliabilities.
Revenue is presented as the net amount after deducting sales discounts and sales returns.b. Rendering of servicesThe Group provides external consulting, loading, unloading, transportation and processing labor services, andrecognizes revenue within a period of time based on the progress of the completed labor. The progress of thecompleted labor is determined according to the proportion of the cost incurred to the estimated total cost. On thebalance sheet date, the Group re-estimates the progress of completed labor services so that it can reflect changes incontract performance.
When the Group recognizes revenue based on the performance progress of the completed labor services, the portionfor which the Group has obtained the unconditional right to receive payments is recognized as accounts receivable,and the remaining portion is recognized as contract assets, and the Company measures the loss reserve of accountsreceivable and contract assets. according to the expected credit loss; If the contract price received or receivable by theGroup exceeds the completed progress, the excess is recognized as contract liabilities. The Group presents thecontract assets and contract liabilities under the same contract as a net amount.
24、Government grants
Government grants are transfers of monetary or non-monetary assets from the government to the Group at nilconsideration, including tax refund and financial subsidies, etc.A government grant is recognised when there is a reasonable assurance that the grants will be received and the Groupwill comply with all attached conditions. Monetary government grants are measured at the amounts received orreceivable. Non-monetary government grant are measured at fair value, if the fair value cannot be reliably obtained, itis measured at nominal amount.
The government grants related to assets refer to government grant obtained by enterprises and used for purchase andconstruction of long-term assets or formation of long-term asset in other ways. The government grants related toincome refer to grants other than those related to assets.
For government grants related to income, where the grant is a compensation for related expenses or losses to beincurred by the Group in the subsequent periods, the grant is recognised as deferred income, and included in profit orloss over the periods in which the related costs are recognised; where the grant is a compensation for related expensesor losses already incurred by the Group, the grant is recognised immediately in profit or loss for the currentperiod.The company use the same method of presentation for similar government grants.
The ordinary activitiy government grants should be counted into operating profits; the government grants which not belongordinary activities should be counted inton non-operationg income.
25、Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising betweenthe tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset isrecognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profitin accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from theinitial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporarydifferences resulting from the initial recognition of assets or liabilities due to a transaction other than a businesscombination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date,deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the periodwhen the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to theextent that it is probable that taxable profit will be available in the future against which the deductible temporarydifferences, deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries andassociates, except where the Group is able to control the timing of reversal of the temporary difference, and it isprobable that the temporary difference will not reverse in the foreseeable future. When it is probable that thetemporary differences arising from investments in subsidiaries and associates will be reversed in the foreseeablefuture and that the taxable profit will be available in the future against which the temporary differences can be utilised,the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities that meet the following conditions at the same time are listed as the net amountafter offset:
·Deferred income tax assets and deferred income tax liabilities are related to the same tax payer within the Group andthe same taxation authority; and,·That tax entity within the Group has a legally enforceable right to offset current tax assets against current taxliabilities.
26、Leases
A leasing is a contract in which the lessor cedes the right to use an asset to the lessee for a certain period of time inreturn for consideration.
(a) The Group acts as the lessee
The Company recognizes the right-of-use assets on the commencement date of the lease term and recognizes thelease liabilities at the present value of the outstanding lease payments. The lease payments include fixed payments, aswell as payments where there is reasonable certainty that a purchase option will be exercised or a lease option will beterminated. The variable rent determined based on a certain percentage of sales is not included in the lease payment,and is included in the current profit and loss when it actually occurs. The Group will list the lease liabilities paidwithin one year (inclusive) from the balance sheet date as non-current liabilities due within one year
On the commencement date, the Company shall initially measure the right-of-use asset at cost. The cost of the right-of-use asset shall comprise the amount of the initial measurement of the lease liability and any lease payments madeat or before the commencement date, and any initial direct costs incurred by the lessee etc, less any lease incentivesreceived, If ownership of the leased asset transfers to the Group at the end of the lease term, depreciation is calculatedusing the estimated useful life of the asset. Otherwise, the right-of-use assets are depreciated over the shorter of thelease term and the estimated useful lives of the assets. Where the carrying amount of an asset or a cash generatingunit exceeds its recoverable amount, the asset or cash generating unit is considered impaired and is written down toits recoverable amount.
A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less, and has a low-value asset leases. The Group does not recognize the right-of-use assets and lease liabilities. The Group recognizeslease payments on short-term leases and leases of low-value assets in the related asset costs or profit or loss on astraight-line basis over the lease term.
The Group accounts for a lease modification as a separate lease if both:(1) the modification increases the scope of thelease by adding the right to use one or more underlying assets; (2) the consideration for the lease increases by anamount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to thatstand-alone price to reflect the circumstances of the particular contract.
For a lease modification that is not accounted for as a separate lease, at the effective date of the lease modification theGroup remeasures the lease liability by discounting the revised lease payments using a revised discount rate.Decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease for leasemodifications that decrease the scope of the lease. The Group recognizes in profit or loss any gain or loss relating tothe partial or full termination of the lease. Other lease modifications will remeasure lease liabilities, and the groupwill make a corresponding adjustment to the right-of-use asset book value.
(b) The Group acts as the lessor
A lease that transfers substantially all the risks and rewards associated with the ownership of the leased asset is afinance lease. Other leases are operating leases.
(i) Operating lease
When the Company operates leased buildings, machinery and equipment, and means of transport, the rental incomefrom operating leases shall be recognized in accordance with the straight-line method during the lease term. TheCompany will include variable rent determined based on a percentage of sales in rental income when it actuallyincurs. For any modification to an operating lease, the Group treats it as a new lease from the effective date of themodification, and the received or receivable lease payments related to the lease prior to the modification are treated aslease payments of the new lease.
(ii) Finance lease
On the beginning date of the lease term, the Company recognizes the finance lease receivables for finance leases andderecognizes related assets. The Company presents the finance lease receivables as long-term receivables, and thefinance lease receivables received within one year (including one year) from the balance sheet date are presented asnon-current assets due within one year.
27、Critical accounting policies and accounting estimates
The Group continually Estimates the critical accounting estimates and key assumptions applied based on historicalexperience and other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of possibly causing a materialadjustment to book values of assets and liabilities within the next accounting year are outlined below:
(a)Income taxThe Group is subject to Income tax in numerous jurisdictions. There are some transactions and events for which theultimate tax determination is uncertain during the ordinary course of business. Significant judgement is required fromthe Group in determining the provision for Income tax in each of these jurisdictions. Where the final identifiedoutcome of these tax matters is different from the initially-recorded amount, such difference will impact the incometax expenses and deferred income tax in the period in which such determination is finally made.
(b) Deferred income taxEstimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for everyyear. Realisation of deferred income tax are subject to sufficient taxable income that are possible to be obtained bythe Group in the future. Change of the future tax rate as well as the reversed time of temporary difference might haveeffects on tax expense (income) and the balance of deferred tax assets or liabilities. Those estimates may also causesignificant adjustment on deferred tax.
(c) Impairment of long-term assets (excluding goodwill)Long-term assets on the balance sheet date should be subject to impairment testing if there are any indications ofimpairment. Management determines whether the long-term assets impaired or not by evaluating and analysingfollowing aspects: (1) whether the event affecting assets impairment occurs; (2) whether the expected obtainablepresent value of future cash flows is lower than the asset’s carrying amount by continually using the assets or disposal;and (3) whether the assumptions used in expected obtainable present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of futurecash flow, are required in evaluating the recoverable amount of assets. If these assumptions cannot be conformed, therecoverable amount should be modified, and the long-term assets may be impaired accordingly.
(d) The useful life of fixed assetsManagement estimates the useful life of fixed assets, based on historical experiences on using fixed assets that havesimilar properties and functions. When there are differences between actually useful life and previously estimation,management will adjust estimation to useful life of fixed assets. The fixed assets would be written off or writtendown when fixed assets been disposed or became redundant. Thus, the estimated result based on existing experiencemay be different from the actual result of the next accounting period, which may cause major adjustment to bookvalue of fixed assets on balance sheet.
(e) Goodwill impairmentGoodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstancesindicate a potential impairment. For the purpose of impairment testing, goodwill acquired in a business combinationis allocated to each of the cash-generating units (“CGUs”), or groups of CGUs, and future cash flow from each CGUor CGUs is forcasted and discounted with appropriate discount rate.
28、Significant changes in accounting policies and accounting estimates
（1）Significant changes in accounting policies
Contents and reasons of changes in
accounting estimates
| Contents and reasons of changes in accounting estimates | Approval procedure | Remark |
| On December 30, 2021, the Ministry of Finance issued " Interpretation No. 15 of the Accounting Standards for Business Enterprises " (Finance and Accounting [2021] No. 35) (hereinafter referred to as "Interpretation No. 15"), which regulates the accounting treatment for external sales of products or by-products produced by enterprises before their fixed assets reach their intended usable state or during the research and development process, and t and "judgment on loss-making contracts". Interpretation No. 15 stipulates that if an enterprise sells products or by-products produced before the fixed assets reach their intended usable status or during the research and development process, as well as the judgment on loss contracts, | It was reviewed and approved the "Proposal on Changes in Accounting Policies" by the board of directors on April 28, 2022. | The adoption of Interpretation No. 15 did not have a significant impact on the financial condition and operating results of the company. |
was adopted from January 1, 2022
| was adopted from January 1, 2022 | ||
| On November 30, 2022, the Ministry of Finance issued issued " Interpretation No. 16 of the Accounting Standards for Business Enterprises " (Finance and Accounting [2021] No. 31) (hereinafter referred to as "Interpretation No. 16"), which regulates the accounting treatment for the income tax impact of dividends related to financial instruments classified as equity instruments by the issuer and the accounting treatment for the modification of cash settled share-based payments to equity settled share-based payments by enterprises shall be implemented from the date of promulgation; The accounting treatment for deferred income tax related to assets and liabilities arising from individual transactions that are not exempt from initial recognition will be implemented from January 1, 2023. | It was reviewed and approved the "Proposal on Changes in Accounting Policies" by the board of directors on April 24, 2023. | The adoption of Interpretation No. 16 did not have a significant impact on the financial condition and operating results of the company. |
The impact of Interpretation No. 15 of the Company's Executive Standards on various items of the consolidatedbalance sheet, income statement, and cash flow statement is summarized as follows:
Unit: Yuan
| Consolidated balance sheet items | 31 December 2021 | The amounts of adjustments | 1 January 2022 |
| Fixed assets | 8,566,515,026 | -215,056 | 8,566,299,970 |
| Construction in progress | 2,461,088,650 | -3,106,472 | 2,457,982,178 |
| Deferred tax assets | 255,185,923 | -140,857 | 255,045,066 |
| Taxes payable | 185,009,681 | -140,857 | 184,868,824 |
| Deferred tax liabilities | 84,580,132 | -174,698 | 84,405,434 |
| Undistributed profits | 6,450,587,417 | -2,936,550 | 6,447,650,867 |
| Minority interests | 436,813,189 | -210,280 | 436,602,909 |
Unit: Yuan
| Consolidated income statement items | Before adjustments in 2021 | The amounts of adjustments | After adjustments in 2021 |
| Total business income | 13,629,033,650 | 43,339,173 | 13,672,372,823 |
| Total operating costs | 8,849,488,093 | 46,660,701 | 8,896,148,794 |
| Income tax expenses | 356,153,729 | -174,698 | 355,979,031 |
| Net profit | 1,561,248,454 | -3,146,830 | 1,558,101,624 |
| Attributable to shareholders of parent company | 1,529,329,304 | -2,936,550 | 1,526,392,754 |
| Minority interests | 31,919,150 | -210,280 | 31,708,870 |
Unit: Yuan
| Consolidated cash flow statement Items | Before adjustments in 2021 | The amounts of adjustments | After adjustments in 2021 |
| Cash received from sales of goods or rendering of services | 15,127,773,082 | 58,760,285 | 15,186,533,367 |
Cash paid for goods and services
| Cash paid for goods and services | 8,246,043,888 | 54,173,577 | 8,300,217,465 |
| Cash paid to and on behalf of employees | 1,638,657,553 | 6,923,995 | 1,645,581,548 |
| Cash paid relating to other operating activities | 440,837,552 | 99,068 | 440,936,620 |
| Cash received relating to other investing activities | 80,944,683 | -59,262,312 | 21,682,371 |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 1,827,187,640 | -5,386,397 | 1,821,801,243 |
| Cash paid relating to other investing activities | 80,312,270 | -56,312,270 | 24,000,000 |
（2）Significant changes in accounting estimates
None
29、Others
（1）Safety production costs
According 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 is 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 recognised. The fixed assets are nolonger be depreciated in future.
（2）Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements andinternal reporting system, and discloses segment information of reportable segments which is determined on the basisof operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component isable to earn revenue and incur expenses from its ordinary activities; (2) whose operating results are regularlyreviewed by the Group’s management to make decisions about resources to be allocated to the segment and to assessits performance, and (3) for which the information on financial position, operating results and cash flows is available
to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions,they are aggregated into one single operating segment.
IV、TAXATION
1、The main categories and rates of taxes applicable to the Group are set out below:
Category
| Category | Taxable basis | Tax rate |
| Enterprise income tax | Taxable income | 0%-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% |
| City maintenance and construction tax | VAT paid | 1%-7% |
| Educational surcharge | VAT paid | 5% |
2、Tax incentives
The main tax incentives the Group is entitled to are as follows:
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.
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 2020 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 2020.
Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in2020 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 2020.
Yichang CSG Polysilicon Co., Ltd. (“Yichang CSG Polysilicon”) passed review on a high and new tech enterprise in2020 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 2020.
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 2020, 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 2020.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) passed review on a high and new tech enterprise in 2020, 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 2020.
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.
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.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) passed review on a high and new tech enterprisein 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.
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.
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.
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.
Dongguan CSG Crystal Yuxin Materials Co., Ltd. ("Dongguan Jing Yu Company") passed review on a high and newtech enterprise in 2021 and obtained the Certificate of High and New Tech Enterprise, the period of validity is threeyears. It applies to 15% tax rate for three years since 2021.
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 Risheng New Energy Technology Co., Ltd. (hereinafter referred to as "Qinghai New Energy Company")obtains enterprise income tax preferential treatment for Western Development, and temporarily calculates enterpriseincome tax at a tax rate of 15% for current year.
Zhaoqing CSG New Energy Technology Co., Ltd. (hereinafter referred to as "Zhaoqing New Energy Company"),Zhangzhou CSG Kibing PV Energy Co., Ltd. (“Zhangzhou CSG PV Energy”), Heyuang CSG Kibing PV Energy Co.,Ltd. (“Heyang CSG”), and Shaoxing CSG Kibing New Energy Co., Ltd. (“Shaoxing CSG New Energy”), XianningCSG PV Energy Co., Ltd. (“Xianning PV Energy”), Zhanjiang CSG New Energy Co., Ltd. (“Zhanjiang PVEnergy”), ,are public infrastructure project specially supported by the state in accordance with the Article 87 inImplementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can enjoy thetax preferential policy of “three-year exemptions and three-year halves”, that is, starting from the tax year when thefirst revenue from production and operation occurs, the enterprise income tax is exempted from the first to the thirdyear, while half of the enterprise income tax is collected for the following three years.
3、Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is 0%-13%.V、NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1、Cash at bank and on hand
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 |
| Cash at bank | 3,242,318,251 | 2,453,477,573 |
| Other Currency Funds | 1,362,289,528 | 312,448,333 |
| Total | 4,604,607,779 | 2,765,925,906 |
| Including: Total overseas deposits | 52,079,105 | 8,906,359 |
| The total amount of cash and cash | 10,589,528 | 9,448,334 |
equivalents that are restricted to use dueto mortgage, pledge or freezing etc.
2、Financial assets held for trading
Unit: Yuan
equivalents that are restricted to use dueto mortgage, pledge or freezing etc.Item
| Item | 31 December 2022 | 1 January 2022 |
| Financial assets at fair value through profit or loss- Structural deposits | 999,600,000 | |
| Total | 999,600,000 |
3、Notes receivable
（1）Notes receivable listed by category
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Bank acceptance | 156,943,437 | |
| Commercial acceptance | 19,220,984 | |
| Total | 156,943,437 | 19,220,984 |
Unit: Yuan
| Category | 31 December 2022 | 1 January 2022 | ||||||||
| Carrying amount | Provision for bad debts | Book value | Carrying amount | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Proportion | Amount | Proportion | Amount | Proportion | |||
| Credit loss provision accrued by item | 28,438,249 | 71% | 20,778,806 | 73% | 7,659,443 | |||||
| Credit loss provision accrued by portfolio | 156,943,437 | 100% | 156,943,437 | 11,561,541 | 29% | 11,561,541 | ||||
| Total | 156,943,437 | 100% | 156,943,437 | 39,999,790 | 100% | 20,778,806 | 52% | 19,220,984 | ||
（2）Bad debt provision made, returned or recovered in the period
Provision for bad debts in current year：
Unit: Yuan
| Category | 1 January 2022 | Amount of change this year | 31 December 2022 | |||
| Accrual | Recovery or reversal | Write-off | Transfer to accounts receivable | |||
| Credit loss provision accrued by item | 20,778,806 | 20,778,806 | ||||
Total
| Total | 20,778,806 | 20,778,806 |
（3）Notes receivables that the Company has pledged at the end of the period
Unit: Yuan
| Item | Pledged amount |
| Bank acceptance | 156,943,437 |
| Total | 156,943,437 |
（4）Endorsed or discounted notes receivable have not yet matured on the balance sheet
None
（5）Notes transferred to accounts receivable due to default of the issue at the end of period
Unit: Yuan
| Item | Amount transferred to accounts receivable at the end of the period |
| Commercial acceptance | 29,811,343 |
| Total | 29,811,343 |
4、Accounts receivable
（1）Details on categories
Unit: Yuan
| Category | 31 December 2022 | 1 January 2022 | ||||||||
| 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 | |||
| Separate provision for bad debts | 196,468,864 | 14% | 157,019,809 | 80% | 39,449,055 | 159,936,493 | 19% | 103,566,693 | 65% | 56,369,800 |
| Portfolio provision for bad debts | 1,163,820,132 | 86% | 23,276,403 | 2% | 1,140,543,729 | 687,914,171 | 81% | 13,758,284 | 2% | 674,155,887 |
| Total | 1,360,288,996 | 100% | 180,296,212 | 13% | 1,179,992,784 | 847,850,664 | 100% | 117,324,977 | 14% | 730,525,687 |
Provision for bad debts made on an individual basis:
Unit: Yuan
| Name | 31 December 2022 | |||
| Carrying amount | Provision for | Provision | Reason for provision | |
bad debts
| bad debts | Proportion | |||
| Separate provision for bad debts | 196,468,864 | 157,019,809 | 80% | 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 | 196,468,864 | 157,019,809 | 80% |
Provision for bad debts made on the basis of portfolio:
Unit: Yuan
| Type(s) | 31 December 2022 | ||
| Carrying amount | Provision for bad debts | Proportion (%) | |
| Portfolio 1 | 1,163,820,132 | 23,276,403 | 2% |
| Total | 1,163,820,132 | 23,276,403 | 2% |
Disclosure by ages
Unit: Yuan
| Aging | 31 December 2022 |
| Within 1 year (including 1 year) | 1,092,590,056 |
| 1 to 2 years | 167,876,479 |
| 2 to 3 years | 51,281,059 |
| Over 3 years | 48,541,402 |
| Total | 1,360,288,996 |
（2）Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: Yuan
| Type(s) | 1 January 2022 | Amount of change this year | 31 December 2022 | |||
| Accrual | Transfer from notes receivable | Recovery or reversal | Write-off | |||
| Provision for bad debts for accounts receivable | 117,324,977 | 57,816,645 | 20,778,806 | 13,315,052 | 2,309,164 | 180,296,212 |
| Total | 117,324,977 | 57,816,645 | 20,778,806 | 13,315,052 | 2,309,164 | 180,296,212 |
（3）Accounts receivable actually written off in current period
Unit: Yuan
| Item | Written-off amount |
| Accounts receivable | 2,309,164 |
（4）Accounts receivable details of the top 5 closing balances by debtors
Unit: Yuan
Name
| 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 | 465,461,318 | 34% | 9,309,226 |
| Total | 465,461,318 | 34% | 9,309,226 |
5、Receivables Financing
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Bank acceptance measured at fair value | 1,095,412,643 | 297,046,123 |
| Total | 1,095,412,643 | 297,046,123 |
6、Advances to suppliers
（1）Listing by ages
Unit: Yuan
| Aging | 31 December 2022 | 1 January 2022 | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year (including 1 year) | 182,578,314 | 100% | 74,971,763 | 98% |
| 1 to 2 years | 377,211 | 486,849 | 1% | |
| 2 to 3 years | 153,800 | 520,498 | 1% | |
| Over 3 years | 520,498 | 118,166 | ||
| Total | 183,629,823 | 100% | 76,097,276 | 100% |
（2）Advance payment of the top 5 closing balances by prepayment objects
Unit: Yuan
| Item | Advance payment closing balance | Percentage in total advances to suppliers balance |
Total balances for the five largest advances tosuppliers
| Total balances for the five largest advances to suppliers | 100,453,656 | 55% |
7、Other receivables
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Other receivables | 193,847,322 | 183,696,711 |
| Total | 193,847,322 | 183,696,711 |
（1）Other receivables
1）Other receivables categorized by nature
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 |
| Receivables from special fund for talent | 171,000,000 | 171,000,000 |
| Payments made on behalf of other parties | 49,075,321 | 47,686,819 |
| Advances to suppliers(i) | 10,366,164 | 10,366,164 |
| Refundable deposits | 16,456,690 | 9,191,412 |
| Petty cash | 963,222 | 497,273 |
| Others | 12,091,519 | 8,110,638 |
| Total | 259,952,916 | 246,852,306 |
(i) The subsidiaries of Yingde CBM Mining Co., Ltd. mainly prepaid to supplier for materials and the prepayments accounts aretransferred to other receivables.
2）Provision for bad debts
Unit: Yuan
| 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 1st January 2022 | 1,166,526 | 61,989,069 | 63,155,595 | |
| Carrying amount on 1st January 2022 that in this period: | ||||
| Provision for the period | 666,124 | 2,785,170 | 3,451,294 | |
| Reverse for the period | 232,780 | 232,780 | ||
| Write off for the period | 268,515 | 268,515 | ||
| Amount on 31st December 2022 | 1,331,355 | 64,774,239 | 66,105,594 |
3）Disclosure by ages
Unit: Yuan
| Aging | 31 December 2022 |
| Within 1 year (including 1 year) | 27,945,528 |
| 1 to 2 years | 31,332,255 |
| 2 to 3 years | 1,421,606 |
| Over 3 years | 199,253,527 |
| 3 to 4 years | 563,830 |
| 4 to 5 years | 2,066,855 |
Over 5 years
| Over 5 years | 196,622,842 |
| Total | 259,952,916 |
4）Provisions made, collected or reversed in current periodProvision for bad debts made in current period:
Unit: Yuan
| Type | 1 January 2022 | Movement in current year | 31 December 2022 | |||
| Accrual | Withdrawal or reversal | Write-off | Others | |||
| Bad debt provision | 63,155,595 | 3,451,294 | 232,780 | 268,515 | 66,105,594 | |
| Total | 63,155,595 | 3,451,294 | 232,780 | 268,515 | 66,105,594 | |
5）Other receivable actually written off in current period
Unit: Yuan
| Item | Write-off amount |
| Other receivables | 268,515 |
6）Other receivables details of the top 5 closing balances by debtors
Unit: Yuan
| Name | Nature of business | 31 December 2022 | Ageing | Percentage in total other receivables balance | Provision for bad debts |
| Company A | Independent third party | 171,000,000 | Over 5 years | 66% | 51,300,000 |
| Governmental department B | Independent third party | 24,000,000 | 1 to 2 years | 9% | 480,000 |
| Governmental department C | Independent third party | 11,556,004 | Over 5 years | 4% | 231,120 |
| Company D | Independent third party | 10,366,164 | Over 5 years | 4% | 10,366,164 |
| Governmental department E | Independent third party | 10,000,000 | Within 1 year | 4% | 200,000 |
| Total | 226,922,168 | 87% | 62,577,284 |
8、Inventories
（1）Inventory classification
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||||
| 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
| Raw materials | 646,622,778 | 9,065,792 | 637,556,986 | 389,937,319 | 1,002,085 | 388,935,234 |
| Work in progress | 31,745,770 | 31,745,770 | 22,801,437 | 22,801,437 | ||
| Finished goods | 1,067,004,894 | 20,645,880 | 1,046,359,014 | 632,814,981 | 5,829,059 | 626,985,922 |
| Turnover materials | 68,702,610 | 422,398 | 68,280,212 | 55,480,764 | 397,832 | 55,082,932 |
| Total | 1,814,076,052 | 30,134,070 | 1,783,941,982 | 1,101,034,501 | 7,228,976 | 1,093,805,525 |
（2）Provision for inventories
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 | ||
| Provision | Others | Reversal or write-off | Others | |||
| Raw materials | 1,002,085 | 8,114,149 | 50,442 | 9,065,792 | ||
| Finished goods | 5,829,059 | 19,939,274 | 5,122,453 | 20,645,880 | ||
| Turnover materials | 397,832 | 262,068 | 237,502 | 422,398 | ||
| Total | 7,228,976 | 28,315,491 | 5,410,397 | 30,134,070 | ||
9、Non-current assets due within one year
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Fixed-term deposit in bank due within one year | 20,000,000 | |
| Total | 20,000,000 |
10、Other current assets
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| VAT to be offset | 45,198,116 | 128,033,622 |
| Enterprise income tax prepaid | 30,407,477 | 3,771,709 |
| VAT input to be recognised | 32,642,483 | 8,888,295 |
| Others | 469 | 11,672 |
| Total | 108,248,545 | 140,705,298 |
11、Investment properties
（1）Investment properties measured using the Fair value model
Unit: Yuan
| Item | House, building and related land use rights |
| I.1 January 2022 | 383,084,500 |
II.Movemnet in the Current Period
| II.Movemnet in the Current Period | -92,716,395 |
| III.31 December 2022 | 290,368,105 |
Notes： In 2022, the investment real estate held by the group was transferred out to fixed assets of RMB 49,199,084 yuan andintangible assets of RMB 43,517,311 yuan, mainly due to the transfer of this part of investment real estate from external leasing toself use. From the date of change of purpose, the group converted this investment real estate into fixed assets and intangible assets,and determined the book value of fixed assets and intangible assets based on the fair value of the investment real estate on the dateof conversion.
12、Fixed assets
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Fixed assets | 11,243,236,175 | 8,566,299,970 |
| Total | 11,243,236,175 | 8,566,299,970 |
（1）List of fixed assets
Unit: Yuan
| Item | Buildings | Machinery and equipment | Motor vehicles and others | Total |
| I. Original book value： | ||||
| 1. 31 December 2021 | 4,175,491,233 | 12,040,091,415 | 257,186,014 | 16,472,768,662 |
| 2. Increase in current year | 1,345,509,099 | 3,450,230,394 | 52,792,356 | 4,848,531,849 |
| （1）Acquisition | 5,066,207 | 39,448,097 | 22,342,388 | 66,856,692 |
| （2）Transfers from construction in progress | 1,290,236,878 | 3,407,521,111 | 28,793,157 | 4,726,551,146 |
| （3）Others | 50,206,014 | 3,261,186 | 1,656,811 | 55,124,011 |
| 3. Decrease in current year | 215,294,604 | 1,207,222,532 | 15,953,817 | 1,438,470,953 |
| （1）Disposal or retirement | 27,750,045 | 693,463,962 | 15,018,347 | 736,232,354 |
| （2）Transfer to construction in progress | 183,920,987 | 504,217,090 | 600,382 | 688,738,459 |
| （3）Others | 3,623,572 | 9,541,480 | 335,088 | 13,500,140 |
| 4. 31 December 2022 | 5,305,705,728 | 14,283,099,277 | 294,024,553 | 19,882,829,558 |
| II.Accumulative depreciation | ||||
| 1. 31 December 2021 | 1,129,349,070 | 5,532,791,435 | 230,711,343 | 6,892,851,848 |
| 2. Increase in current year | 139,437,453 | 765,058,714 | 28,661,275 | 933,157,442 |
| （1）Provision | 139,295,939 | 764,183,928 | 28,028,195 | 931,508,062 |
| （2）Others | 141,514 | 874,786 | 633,080 | 1,649,380 |
| 3. Decrease in current year | 54,006,016 | 312,643,023 | 14,043,321 | 380,692,360 |
| （1）Disposal or retirement | 5,653,306 | 26,332,381 | 13,678,033 | 45,663,720 |
| （2）Transfer to construction in progress | 47,589,170 | 285,671,695 | 358,735 | 333,619,600 |
| （3）Others | 763,540 | 638,947 | 6,553 | 1,409,040 |
| 4. 31 December 2022 | 1,214,780,507 | 5,985,207,126 | 245,329,297 | 7,445,316,930 |
| III.Impairment provision |
Item
| Item | Buildings | Machinery and equipment | Motor vehicles and others | Total |
| 1. 31 December 2021 | 59,901,148 | 953,451,046 | 264,650 | 1,013,616,844 |
| 2. Increase in current year | 113,127,910 | 758,083,952 | 528,767 | 871,740,629 |
| （1）Provision | 4,997,092 | 4,997,092 | ||
| （2）Transfers from construction in progress | 113,127,910 | 753,086,860 | 528,767 | 866,743,537 |
| 3. Decrease in current year | 20,189,071 | 670,890,456 | 1,493 | 691,081,020 |
| （1）Disposal or retirement | 20,189,071 | 636,021,100 | 1,493 | 656,211,664 |
| （2）Transfer to construction in progress | 34,869,356 | 34,869,356 | ||
| 4. 31 December 2022 | 152,839,987 | 1,040,644,542 | 791,924 | 1,194,276,453 |
| IV. Book value | ||||
| 1. 31 December 2022 | 3,938,085,234 | 7,257,247,609 | 47,903,332 | 11,243,236,175 |
| 2. 31 December 2021 | 2,986,241,015 | 5,553,848,934 | 26,210,021 | 8,566,299,970 |
（2）Fixed assets without ownership certificate
Unit: Yuan
| Item | Carrying amount | Reasons for not yet obtaining certificates of title |
| Buildings | 1,375,506,149 | Have submitted the required documents and are in the process of application, or the related land use right certificate pending |
13、Construction in progress
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Construction in progress | 2,520,362,291 | 2,457,982,178 |
| Total | 2,520,362,291 | 2,457,982,178 |
（1）Details of construction in progress
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||||
| Carrying amount | Provision for impairment loss | Book value | Carrying amount | Provision for impairment loss | Book value | |
| Anhui Fengyang Solar Equipment Lightweight High Tongue Plate Manufacturing Base Project | 917,798,737 | 917,798,737 | 765,170,527 | 765,170,527 | ||
| Xianning Nanblass | 721,820,302 | 721,820,302 | 66,449,089 | 66,449,089 | ||
Item
| Item | 31 December 2022 | 1 January 2022 | ||||
| Carrying amount | Provision for impairment loss | Book value | Carrying amount | Provision for impairment loss | Book value | |
| 1200T / D Ton Photovoltaic Packaging Material Production Line Project | ||||||
| Hebei window ultra-thin electronic glass second line construction project | 256,034,845 | 256,034,845 | 24,393,421 | 24,393,421 | ||
| Qingyuan South Blass Technology Reform Project | 225,748,578 | 94,897,536 | 130,851,042 | 297,932,280 | 174,675,600 | 123,256,680 |
| 450MWPERC Battery Technology Upgrade Project | 186,866,743 | 184,998,076 | 1,868,667 | 186,866,743 | 184,998,076 | 1,868,667 |
| Wujiang Project New Engineering Glass Intelligent Manufacturing Factory Construction Project | 72,885,336 | 72,885,336 | 51,766,295 | 51,766,295 | ||
| Xi'an South Glass Energy Saving Glass Production Line Project | 41,694,021 | 41,694,021 | 337,339 | 337,339 | ||
| Zhaoqing CSG high-end automobile glass production line project | 40,439,362 | 40,439,362 | 27,941,928 | 27,941,928 | ||
| Dongguan Solar G6/G7 Line Process and Equipment Upgrading and Renovation Project | 37,794,114 | 37,794,114 | ||||
（1）Details of construction in progress（Continued）
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 | ||||
| Carrying amount | Provision for impairment loss | Book value | Carrying amount | Provision for impairment loss | Book value | |
| Guangxi beihai Photovoltaic Green Energy Industry Park (Phase I) Project | 33,213,753 | 33,213,753 | 382,997 | 382,997 | ||
| Zhaoqing CSG high-end energy-saving glass production line project | 14,799,352 | 14,799,352 | 279,138,811 | 279,138,811 | ||
| New 50000 ton/year high-purity crystalline silicon project in Haixi Prefecture, Qinghai Province | 10,319,009 | 10,319,009 | ||||
| Anhui Fengyang Shiying Sand Construction Project | 403,753 | 403,753 | 56,656,483 | 56,656,483 | ||
| Wujiang float light-quality high-efficiency double glass processing production line construction project | 53,098 | 53,098 | 39,032,912 | 39,032,912 | ||
| Yichang South Glass Crystalline Silicon Reform Project | 1,535,368,156 | 857,890,185 | 677,477,971 | |||
| Dongguan Solar Double Glass Calendering Line Technical Transformation and Upgrading Project | 2,389,871 | 2,389,871 | ||||
| Others | 307,676,667 | 67,289,767 | 240,386,900 | 400,433,199 | 58,714,012 | 341,719,187 |
| Total | 2,867,547,670 | 347,185,379 | 2,520,362,291 | 3,734,260,051 | 1,276,277,873 | 2,457,982,178 |
（2）Movement of significant projects of construction in progress
Unit: Yuan
Project name
| Project name | Budget | 1 January 2022 | Increase in current year | Transfer to fixed assets in current year | Other decreases in current year | 31 December 2022 | Proportion between engineering input and budget | Engineering progress | Amount of borrowing costs capitalised | Including: Amount of borrowing costs capitalised in 2022 | Capitalisation rate for in current year | Source of fund |
| Anhui Fengyang Solar Energy Equipment Manufacturing Base Project | 3,739,020,000 | 765,170,527 | 1,819,630,548 | 1,667,002,338 | 917,798,737 | 69% | 88% | 33,884,513 | 31,439,015 | 3.64% | Internal fund and bank loan | |
| Xianning Nanblass 1200T / D Ton Photovoltaic Packaging Material Production Line Project | 858,090,000 | 66,449,089 | 660,547,276 | 5,176,063 | 721,820,302 | 85% | 85% | 20,450,743 | 15,327,576 | 4.08% | Internal fund and bank loan | |
| Hebei window ultra-thin electronic glass second line construction project | 284,964,800 | 24,393,421 | 232,913,263 | 1,271,839 | 256,034,845 | 90% | 90% | 2,480,896 | 2,480,517 | 4.20% | Internal fund and bank loan | |
| Qingyuan CSG Phase I Technological Transformation Project | 534,870,000 | 297,932,280 | 8,683,859 | 363,834 | 80,503,727 | 225,748,578 | 4% | 4% | Internal fund and bank loan | |||
| Dongguan Photovoltaic | 100,990,000 | 186,866,743 | 186,866,743 | 1% | 3% | Internal fund and |
Project name
| Project name | Budget | 1 January 2022 | Increase in current year | Transfer to fixed assets in current year | Other decreases in current year | 31 December 2022 | Proportion between engineering input and budget | Engineering progress | Amount of borrowing costs capitalised | Including: Amount of borrowing costs capitalised in 2022 | Capitalisation rate for in current year | Source of fund |
| Building B 450MWPERC Battery Technology Upgrade Project | bank loan | |||||||||||
| Wujiang Project New Engineering Glass Intelligent Manufacturing Factory Construction Project | 179,140,610 | 51,766,295 | 27,404,705 | 6,285,664 | 72,885,336 | 44% | 57% | 1,455,152 | 1,134,058 | 3.85% | Internal fund and bank loan | |
| Xi'an South Glass Energy Saving Glass Production Line Project | 494,000,000 | 337,339 | 41,356,682 | 41,694,021 | 8% | 8% | Internal fund and bank loan | |||||
| Zhaoqing CSG High-end Automobile Glass Production Line Project | 609,830,000 | 27,941,928 | 64,633,762 | 52,136,328 | 40,439,362 | 15% | 15% | Internal fund and bank loan | ||||
| Dongguan Solar G6/G7 Line Process and Equipment Upgrading and Renovation Project | 61,330,000 | 37,794,114 | 37,794,114 | 32% | 32% | 59,828 | 59,828 | 3.90% | Internal fund and bank loan | |||
| Guangxi beihai Photovoltaic | 4,942,051,800 | 382,997 | 32,830,756 | 33,213,753 | 1% | 2% | 52,366 | 52,366 | 1.98% | Internal fund and |
Project name
| Project name | Budget | 1 January 2022 | Increase in current year | Transfer to fixed assets in current year | Other decreases in current year | 31 December 2022 | Proportion between engineering input and budget | Engineering progress | Amount of borrowing costs capitalised | Including: Amount of borrowing costs capitalised in 2022 | Capitalisation rate for in current year | Source of fund |
| Green Energy Industry Park (Phase I) Project | bank loan | |||||||||||
| Zhaoqing CSG high-end energy-saving glass production line project | 500,000,000 | 279,138,811 | 37,410,296 | 301,749,755 | 14,799,352 | 86% | 100% | 5,728,195 | 1,573,270 | 3.80% | Internal fund and bank loan | |
| New 50000 ton/year high-purity crystalline silicon project in Haixi Prefecture, Qinghai Province | 4,490,920,000 | 10,319,009 | 10,319,009 | Convertible bonds、Internal fund and bank loan | ||||||||
| Anhui Fengyangnian Quartz Sand Construction Project | 1,029,300,000 | 56,656,483 | 83,482,656 | 139,735,386 | 403,753 | 14% | 56% | 1,144,949 | 1,026,584 | 4.55% | Internal fund and bank loan | |
| Wujiang Float Processing Production Line Project | 158,850,000 | 39,032,912 | 91,603,119 | 130,582,933 | 53,098 | 82% | 82% | 1,360,214 | 972,258 | 4.00% | Internal fund and bank loan | |
| Yichang CSG Polysilicon Technical Transformation Project | 49,520,000 | 1,535,368,156 | 1,511,107,324 | 24,260,832 | 100% | 100% | Internal fund | |||||
| Dongguan Solar Double Glass | 143,490,000 | 2,389,871 | 357,427,025 | 359,816,896 | 100% | 100% | 1,016,458 | 1,016,458 | 3.80% | Internal fund and |
Project name
| Project name | Budget | 1 January 2022 | Increase in current year | Transfer to fixed assets in current year | Other decreases in current year | 31 December 2022 | Proportion between engineering input and budget | Engineering progress | Amount of borrowing costs capitalised | Including: Amount of borrowing costs capitalised in 2022 | Capitalisation rate for in current year | Source of fund |
| Calendering Line Technical Transformation and Upgrading Project | bank loan | |||||||||||
| Others | 1,701,362,682 | 400,433,199 | 466,819,098 | 551,322,786 | 8,252,844 | 307,676,667 | 7,648,177 | 1,428,238 | Internal fund and bank loan | |||
| Total | 19,877,729,892 | 3,734,260,051 | 3,972,856,168 | 4,726,551,146 | 113,017,403 | 2,867,547,670 | 75,281,491 | 56,510,168 |
14、Right-use of assets
Unit: Yuan
Item
| Item | Land | Buildings | Total |
| I.Original book value: | |||
| 1. 1 January 2021 | 9,770,358 | 1,897,983 | 11,668,341 |
| 2. Increased in current year | 2,493,686 | 2,493,686 | |
| 3. Decreased in current year | 473,610 | 1,897,983 | 2,371,593 |
| 4. 31 December 2022 | 11,790,434 | 11,790,434 | |
| II.Accumulative depreciation | |||
| 1. 1 January 2021 | 942,985 | 813,421 | 1,756,406 |
| 2. Increased in current year | 1,412,646 | 610,066 | 2,022,712 |
| 3. Decreased in current year | 473,610 | 1,423,487 | 1,897,097 |
| 4. 31 December 2022 | 1,882,021 | 1,882,021 | |
| III.Impairment Provisions | |||
| IV.Carrying amount | |||
| 1. 31 December 2022 | 9,908,413 | 9,908,413 | |
| 2. 1 January 2021 | 8,827,373 | 1,084,562 | 9,911,935 |
15、Intangible assets
（1）Details of intangible assets
Unit: Yuan
| Item | Land use rights | Patents and proprietary technologies | Exploitation rights | Others | Total |
| I. Original book value： | |||||
| 1. 1 January 2021 | 1,169,898,169 | 428,988,220 | 5,651,751 | 46,713,240 | 1,651,251,380 |
| 2. Increased in current year | 255,533,473 | 73,086,658 | 8,125,815 | 336,745,946 | |
| （1）Acquisition in current year | 212,016,162 | 7,293,468 | 219,309,630 | ||
| （2）Transfers from development expenditure in current year | 73,086,658 | 73,086,658 | |||
| （3）Others | 43,517,311 | 832,347 | 44,349,658 | ||
| 3. Decreased in current year | 300,000 | 259,999 | 559,999 | ||
| （1）Others | 300,000 | 259,999 | 559,999 | ||
| 4. 31 December 2022 | 1,425,431,642 | 502,074,878 | 5,351,751 | 54,579,056 | 1,987,437,327 |
| II.、Accumulative amortization |
Item
| Item | Land use rights | Patents and proprietary technologies | Exploitation rights | Others | Total |
| 1. 1 January 2021 | 230,710,042 | 194,971,917 | 4,591,610 | 40,155,929 | 470,429,498 |
| 2. Increased in current year | 27,483,295 | 32,356,789 | 183,457 | 5,762,143 | 65,785,684 |
| （1）Provision in current year | 27,483,295 | 32,356,789 | 183,457 | 5,762,143 | 65,785,684 |
| 3. Decreased in current year | 91,001 | 91,001 | |||
| （1）Others | 91,001 | 91,001 | |||
| 4. 31 December 2022 | 258,193,337 | 227,328,706 | 4,775,067 | 45,827,071 | 536,124,181 |
| III.Provision for impairment | |||||
| 1. 1 January 2021 | 13,201,347 | 9,133 | 13,210,480 | ||
| 2. Increased in current year | |||||
| 3. Decreased in current year | |||||
| 4. 31 December 2022 | 13,201,347 | 9,133 | 13,210,480 | ||
| IV.Book value | |||||
| 1. 31 December 2022 | 1,167,238,305 | 261,544,825 | 576,684 | 8,742,852 | 1,438,102,666 |
| 2. 1 January 2021 | 939,188,127 | 220,814,956 | 1,060,141 | 6,548,178 | 1,167,611,402 |
At the end of this period, the proportion of intangible assets formed through internal research and development of the company tothe balance of intangible assets is 20.69%.
（2）Land use rights without ownership certificate
Unit: Yuan
| Item | Carrying amount | Reasons for not yet obtaining certificates of title |
| Land use rights | 4,190,693 | The management of our 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 our group. |
16、Development expenditure
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decreased in current year | 31 December 2022 | |
| Internal development expenditure | Recognised as intangible assets | Recognised as expenses | |||
| Development expenditure | 72,019,362 | 57,620,265 | 73,086,658 | 9,797,153 | 46,755,816 |
| Total | 72,019,362 | 57,620,265 | 73,086,658 | 9,797,153 | 46,755,816 |
17、Goodwill
（1）Original carrying amount of goodwil
Unit: Yuan
Name of Invested
Unit or ItemsForming Goodwill
| Name of Invested Unit or Items Forming Goodwill | 1 January 2022 | Increased in current year | Decreased in current year | 31 December 2022 |
| 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 | ||
| Total | 397,392,156 | 397,392,156 |
（2）Provision for impairment of goodwill
Unit: Yuan
| Name of invested unit or matters forming goodwill | 1 January 2022 | Increased in current year | Decreased in current year | 31 December 2022 |
| Shenzhen CSG Display(i) | 267,244,297 | 122,250,507 | 389,494,804 | |
| Total | 267,244,297 | 122,250,507 | 389,494,804 |
(i) The calculation of the impairment used the higher conclusions of the two future measurement methods of the present value ofthe expected future cash flow and the fair value minus the disposal expenses. The methods, assumptions, asset groups, etc. of thegoodwill impairment test this year was consistented with the date of purchase and the previous year.Shenzhen CSG Display adopting the method of discounting future cashflow is with the following main hypothesizes:
| Item | 2022 | 2021 |
| Income growth for the predicted period | 2%-24% | 1%-15% |
| Income growth for the stabilized period | 0% | 0% |
| Gross profit margin | 17%-18% | 20%-24% |
| Discount rate | 12% | 13% |
18、Long-term prepaid expenses
Unit: Yuan
| Item | 1 January 2022 | Increased amounts in the current Period | Amortized amounts in the current period | Other decreased amounts | 31 December 2022 |
| Various prepaid expenses | 3,013,721 | 1,470,002 | 1,835,784 | 2,647,939 | |
| Total | 3,013,721 | 1,470,002 | 1,835,784 | 2,647,939 |
19、Deferred tax assets and liabilities
（1）Deferred income tax assets before offsetting
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 | ||
| Deductible temporary differences | Deferred tax assets | Deductible temporary differences | Deferred tax assets | |
| Provision for asset impairments | 740,627,003 | 112,511,365 | 1,005,602,209 | 152,036,386 |
| Deductible losses | 362,029,963 | 65,461,019 | 621,359,522 | 106,718,563 |
| Government grants | 160,233,122 | 25,185,546 | 165,972,475 | 25,755,549 |
| Accrued expenses | 8,584,847 | 1,287,727 | 7,908,397 | 1,186,260 |
| Depreciation of fixed assets ,etc | 100,859,773 | 15,955,296 | 115,414,875 | 21,061,453 |
| Total | 1,372,334,708 | 220,400,953 | 1,916,257,478 | 306,758,211 |
（2）Deferred income tax liabilities before offsetting
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||
| Taxable temporary differences | Deferred tax liabilities | Taxable temporary differences | Deferred tax liabilities | |
| Depreciation of fixed assets | 663,136,097 | 100,893,303 | 526,051,177 | 80,581,722 |
| Changes in the fair value of investment real estate | 368,564,944 | 55,284,742 | 370,245,713 | 55,536,857 |
| Total | 1,031,701,041 | 156,178,045 | 896,296,890 | 136,118,579 |
（3）Deferred income tax assets or liabilities presented with net amount after offsetting
Unit: Yuan
| Item | Offset amount of deferred tax assets and liabilities | Carrying amount after offsetting between deferred tax assets and liabilities | offset amount of deferred tax assets and liabilities at the end of last period | Carrying amount after offsetting between deferred tax assets and liabilitie at the end of last period |
| Deferred tax assets | 58,911,204 | 161,489,749 | 51,713,145 | 255,045,066 |
| Deferred tax liabilities | 58,911,204 | 97,266,841 | 51,713,145 | 84,405,434 |
（4）Detail about unrecognized deferred income tax assets
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Deductible losses etc | 1,713,248,298 | 2,045,391,888 |
| Total | 1,713,248,298 | 2,045,391,888 |
（5）Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: Yuan
Year
| Year | 31 December 2022 | 1 January 2022 | Notes |
| 2022 | 83,303,539 | ||
| 2023 | 146,238,837 | 146,238,837 | |
| 2024 | 178,208,832 | 178,208,832 | |
| 2025 | 745,942,821 | 939,085,536 | |
| 2026 | 642,332,904 | 698,555,144 | |
| 2027 | 524,904 | ||
| Total | 1,713,248,298 | 2,045,391,888 |
20、Other non-current assets
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||||
| Carrying amount | Impairment provision | Book value | Carrying amount | Impairment provision | Book value | |
| Prepayment for equipment and project | 194,410,485 | 194,410,485 | 469,352,622 | 469,352,622 | ||
| Prepayment for lease of land use rights | 24,210,000 | 24,210,000 | 14,810,000 | 14,810,000 | ||
| Fixed deposits | 80,000,000 | 80,000,000 | 100,000,000 | 100,000,000 | ||
| Prepaid mining rights | 558,000,000 | 558,000,000 | ||||
| Total | 856,620,485 | 856,620,485 | 584,162,622 | 584,162,622 | ||
21、Short-term borrowings
（1）Classification of short-term borrowings
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Guaranteed loan | 144,000,000 | 80,770,000 |
| Credit loan | 201,000,000 | 100,000,000 |
| Total | 345,000,000 | 180,770,000 |
22、Notes payable
Unit: Yuan
| Type | 31 December 2022 | 1 January 2022 |
| Trade acceptance | 290,779,095 | 107,571,279 |
| Bank acceptance | 703,778,401 | 293,091,434 |
| Total | 994,557,496 | 400,662,713 |
23、Accounts payable
（1）Accounts Payable Listed
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 |
| Materials payable | 813,677,642 | 665,770,883 |
| Equipment payable | 483,253,256 | 268,623,795 |
| Construction expenses payable | 576,821,441 | 372,802,783 |
| Freight payable | 88,104,366 | 68,894,843 |
| Utilities payable | 64,738,721 | 47,260,003 |
| Others | 6,947,201 | 5,499,005 |
| Total | 2,033,542,627 | 1,428,851,312 |
（2）Significant accounts payable aged more than one year
Unit: Yuan
| Item | 31 December 2022 | Reasons |
| Engineering and equipment payments, etc | 173,226,228 | Due to the unfinished final accounts of related projects, they have not been settled yet |
| Total | 173,226,228 |
24、Contract liabilities
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Contract liabilities | 418,051,975 | 335,188,642 |
| Total | 418,051,975 | 335,188,642 |
25、Employee benefits payable
（1）Presentation of employee benefits payable
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| I.Short-term employee benefits payable | 426,027,259 | 1,963,114,264 | 1,924,210,584 | 464,930,939 |
| II.Defined contribution plans payable | 11,722 | 158,660,060 | 149,986,293 | 8,685,489 |
| III.Termination benefits | 173,998 | 3,724,287 | 3,898,285 | |
| Total | 426,212,979 | 2,125,498,611 | 2,078,095,162 | 473,616,428 |
（2）Presentation of short-term benefits
Unit: Yuan
Item
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| 1、Wages and salaries, bonus, allowances and subsidies | 402,716,350 | 1,827,308,377 | 1,791,601,399 | 438,423,328 |
| 2、Social security contributions | 5,808 | 68,176,447 | 66,598,983 | 1,583,272 |
| Including: Medical insurance | 5,097 | 59,967,180 | 59,014,656 | 957,621 |
| Work injury insurance | 291 | 5,939,525 | 5,380,386 | 559,430 |
| Maternity insurance | 420 | 2,269,742 | 2,203,941 | 66,221 |
| 3、Housing funds | 958,798 | 48,106,589 | 48,174,108 | 891,279 |
| 4、Labour union funds and employee education funds | 22,346,303 | 19,522,851 | 17,836,094 | 24,033,060 |
| Total | 426,027,259 | 1,963,114,264 | 1,924,210,584 | 464,930,939 |
（3）Defined benefit plans
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| 1、Basic pensions | 11,644 | 153,308,409 | 144,916,151 | 8,403,902 |
| 2、Unemployment insurance | 78 | 5,351,651 | 5,070,142 | 281,587 |
| Total | 11,722 | 158,660,060 | 149,986,293 | 8,685,489 |
26、Taxes payable
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| VAT payable | 91,809,300 | 77,539,743 |
| Enterprise income tax payable | 38,330,878 | 81,329,008 |
| Individual income tax payable | 7,688,833 | 4,947,559 |
| City maintenance and construction tax payable | 6,755,889 | 5,853,393 |
| Educational surcharge payable | 4,953,777 | 4,662,534 |
| Housing property tax payable | 4,877,079 | 4,126,693 |
| Environmental tax payable | 1,252,845 | 1,674,797 |
| Others | 5,466,037 | 4,735,097 |
| Total | 161,134,638 | 184,868,824 |
27、Other payables
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Interest payable | 99,945,325 | 95,001,362 |
Other payables
| Other payables | 437,119,859 | 194,439,115 |
| Total | 537,065,184 | 289,440,477 |
（1）Interest payable
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Interest of long-term borrowings with periodic payments of interest and return of principal at maturity | 5,754,599 | 2,558,374 |
| Interest of corporate bonds | 92,258,065 | 92,258,065 |
| Interest of short-term borrowings | 1,932,661 | 184,923 |
| Total | 99,945,325 | 95,001,362 |
（2）Other payables
1）Disclosure of other payables by nature
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Guarantee deposits received from construction contractors | 331,974,002 | 101,467,608 |
| Accrued cost of sales (i) | 62,936,670 | 51,592,989 |
| Payable for contracted labour costs | 28,696,828 | 21,273,645 |
| Temporary receipts for third parties | 2,318,135 | 6,033,599 |
| Others | 11,194,224 | 14,071,274 |
| Total | 437,119,859 | 194,439,115 |
（i）It represented the payment made to external third parties arising from undertaking the rights of debtor and creditor,comprising water and electricity, professional service fee and travelling expenses etc.
28、Current portion of non-current liabilities
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Current portion of long-term borrowings | 443,216,290 | 466,098,352 |
| Current portion of debentures payable | 1,999,316,522 | |
| Current portion of long-term account payable | 38,900,194 | 36,865,104 |
| Leases liabilities due within one year | 857,092 | |
| Total | 2,481,433,006 | 503,820,548 |
29、Other current liabilities
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Output VAT to be transferred | 50,107,240 | 39,799,309 |
Others
| Others | 300,000 | 300,000 |
| Total | 50,407,240 | 40,099,309 |
30、Long-term borrowings
（1）Types of long-term borrowings
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Guaranteed loan | 3,122,455,980 | 779,059,824 |
| Credit loan | 1,231,134,000 | 690,000,000 |
| Total | 4,353,589,980 | 1,469,059,824 |
31、Debentures payable
（1）List of Debentures payable
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Corporate bonds | 1,996,587,330 | |
| Total | 1,996,587,330 |
（2）Increase/decrease in bonds payable (excluding other financial instruments such as preferenceshares and Perpetual Bonds classified as financial liabilities)
Unit: Yuan
| Debentures name | Par value | Date of issue | Term | Issue amount | 1 January 2022 | Issue in current year | Interest accrued at par value | Amortisation of premium/ discount | Payment in current year | Reclassified to current portion of non-current liabilities | 31 December 2022 |
| 20 CSG 01 | 100 | 2020-3-24 to 2020-3-25 | 3 years | 2,000,000,000 | 1,996,587,330 | 120,000,000 | 2,729,192 | 1,999,316,522 | |||
| Total | —— | 2,000,000,000 | 1,996,587,330 | 120,000,000 | 2,729,192 | 1,999,316,522 | |||||
In March 2020, after approved by the China Securities Regulatory Commission, the company was approved to publicly issue 2020corporate bonds (first tranche) to qualified investors, with a face value of RMB 100, an issuance amount of RMB 2 billion, and aperiod of 3 years (annual interest payment, principal repayment at maturity), the coupon rate is 6%; the issuance date is March 24,2020 to March 25, 2020, and the value date is March 25, 2020. As of the issuance date of this report, the bond has been fullyredeemed.
32、Lease liabilities
Unit: Yuan
Item
| Item | 31 December 2022 | 1 January 2022 |
| Lease liabilities | 3,564,330 | 220,138 |
| Total | 3,564,330 | 220,138 |
33、Long-term account payable
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Long-term account payable | 129,236,878 | 168,258,062 |
| Total | 129,236,878 | 168,258,062 |
（1）Long-term payable listed by nature of the
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Finance lease payable | 129,236,878 | 168,258,062 |
34、Deferred income
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| Government grants | 564,129,128 | 3,306,000 | 117,559,748 | 449,875,380 |
| Total | 564,129,128 | 3,306,000 | 117,559,748 | 449,875,380 |
Details of government:
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Other income in current year | Other decrease in current year | 31 December 2022 | Assets/Income related |
| Tianjin energy saving gold solar project | 40,217,551 | 3,374,891 | 36,842,660 | Assets related | ||
| Dongguan project gold solar project | 32,324,250 | 2,751,000 | 29,573,250 | Assets related | ||
| Hebei South Bolk Sun Project | 33,000,000 | 2,750,000 | 30,250,000 | Assets related | ||
| Xianning South Bolt Solar Engineering Project | 35,860,917 | 3,030,500 | 32,830,417 | Assets related | ||
| Wu Jiangnan infrastructure compensation | 23,462,746 | 4,041,538 | 19,421,208 | Assets related | ||
| Qingyuan energy-saving project | 10,909,167 | 2,470,000 | 8,439,167 | Assets related | ||
| Yichang polysilicon project | 10,546,875 | 2,812,500 | 7,734,375 | Assets related | ||
| Yichang Nanolate Silicon Molding Project | 19,100,966 | 2,500,000 | 2,105,290 | 19,495,676 | Assets related | |
| Sichuan energy-saving glass project | 3,859,380 | 1,654,020 | 2,205,360 | Assets related | ||
| Group coating laboratory project | 1,500,000 | 375,000 | 1,125,000 | Assets related | ||
| Yichang high-purity silicon material project | 2,417,619 | 303,178 | 2,114,441 | Assets related |
Item
| Item | 1 January 2022 | Increase in current year | Other income in current year | Other decrease in current year | 31 December 2022 | Assets/Income related |
| Yichang semiconductor silicon material project | 2,866,666 | 200,000 | 2,666,666 | Assets related | ||
| Yichang Display Company Project | 40,565,357 | 2,667,812 | 37,897,545 | Assets related | ||
| Xianning Optoelectronics Project | 6,240,000 | 520,000 | 5,720,000 | Assets related | ||
| Shenzhen medical equipment subsidy project | 7,178,000 | 1,164,000 | 6,014,000 | Assets related | ||
| Hebei float emission reward | 9,355,414 | 733,758 | 8,621,656 | Assets related | ||
| Group Talent Fund Project | 171,000,000 | 171,000,000 | Income related | |||
| Zhaoqing energy-saving industry to build financial support funds | 87,255,711 | 82,441,384 | 433,800 | 4,380,527 | Income related | |
| Others | 26,468,509 | 806,000 | 3,731,077 | 23,543,432 | Assets related | |
| Total | 564,129,128 | 3,306,000 | 117,125,948 | 433,800 | 449,875,380 |
35、Share capital
Unit: Yuan
| Item | 1 January 2022 | Movement for the year ended 31 December 2022 | 31 December 2022 | ||||
| New issues during the year | Bonus issue | Transfer fron capital surplus | Others | Sub-total | |||
| Total number of ordinary shares | 3,070,692,107 | 3,070,692,107 | |||||
36、Capital surplus
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| Share premium | 655,424,260 | 655,424,260 | ||
| Other capital surplus | -58,427,175 | -58,427,175 | ||
| Total | 596,997,085 | 596,997,085 |
37、Other comprehensive income
Unit: Yuan
| Item | 1 January 2022 | Other comprehensive income in Income Statement for the year ended 31 December 2022 | 31 December 2022 | |||
| Actual amount before tax for current year | 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 | 159,200,530 | 11,659,948 | 11,659,948 | 170,860,478 | ||
subsequently toprofit or loss
| subsequently to profit or loss | ||||||
| Difference on translation of foreign currency financial statements | -4,501,267 | 11,659,948 | 11,659,948 | 7,158,681 | ||
| 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 | 159,200,530 | 11,659,948 | 11,659,948 | 170,860,478 |
38、Special reserve
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| Safety production costs | 7,296,397 | 8,605,776 | 15,170,593 | 731,580 |
| Total | 7,296,397 | 8,605,776 | 15,170,593 | 731,580 |
39、Surplus reserve
Unit: Yuan
| Item | 1 January 2022 | Increase in current year | Decrease in current year | 31 December 2022 |
| Statutory surplus reserve | 1,017,034,942 | 83,746,491 | 1,100,781,433 | |
| Discretionary surplus reserve | 127,852,568 | 127,852,568 | ||
| Total | 1,144,887,510 | 83,746,491 | 1,228,634,001 |
40、Undistributed profits
Unit: Yuan
| Item | 2022 | 2021（recapitulation） |
| Adjustment on undistributed profit at end of last year | 6,447,650,867 | 5,336,266,412 |
| Adjusted undistributed profit at beginning of period | 6,447,650,867 | 5,336,266,412 |
| Add: Net profits attributable to shareholders of | 2,037,202,500 | 1,526,392,754 |
parent company
| parent company | ||
| Less: Appropriation for statutory surplus reserve | 83,746,491 | 107,939,088 |
| Ordinary share dividends payable | 614,138,421 | 307,069,211 |
| Undistributed profits at end of year | 7,786,968,455 | 6,447,650,867 |
Details of undistributed profits at the beginning of the adjustment period:
1)、Due to the retrospective adjustment of the Accounting Standards for Business Enterprises and related new regulations, theundistributed profit at the beginning of the period was affected by RMB -2,936,550 .
41、Operating income and operating costs
Unit: Yuan
| Item | 2022 | 2021 | ||
| Revenue | Cost | Revenue | Cost | |
| Principal operation | 14,944,821,360 | 10,882,072,965 | 13,539,130,112 | 8,874,190,659 |
| Other operations | 253,885,638 | 124,722,408 | 133,242,711 | 21,958,135 |
| Total | 15,198,706,998 | 11,006,795,373 | 13,672,372,823 | 8,896,148,794 |
42、Taxes and surcharges
Unit: Yuan
| Item | 2022 | 2021 |
| City maintenance and construction tax | 38,620,656 | 40,516,097 |
| Educational surcharge | 31,008,119 | 35,188,375 |
| Housing property tax | 31,807,938 | 32,643,067 |
| Land use rights | 17,451,373 | 23,513,848 |
| Stamp tax | 8,844,793 | 8,559,125 |
| Environmental tax | 4,814,077 | 6,836,101 |
| Others | 2,926,836 | 1,398,805 |
| Total | 135,473,792 | 148,655,418 |
43、Selling and distribution expenses
Unit: Yuan
| Item | 2022 | 2021 |
| Employee benefits | 209,351,728 | 183,925,526 |
| Entertainment fees | 19,052,349 | 20,359,285 |
| Insurance fees | 17,698,899 | 3,509,247 |
| Rental expenses | 9,418,713 | 7,422,419 |
| Vehicle use fees | 9,244,459 | 8,505,855 |
| Business travel expenses | 8,234,864 | 8,791,046 |
| Freight expenses | 5,632,947 | 8,738,363 |
Others
| Others | 35,121,017 | 29,443,692 |
| Total | 313,754,976 | 270,695,433 |
44、General and administrative expenses
Unit: Yuan
| Item | 2022 | 2021 |
| Employee benefits | 434,953,745 | 441,265,481 |
| Depreciation and amortization | 114,878,297 | 129,485,655 |
| General office expenses | 34,156,691 | 30,570,337 |
| Entertainment fees | 19,657,929 | 19,772,396 |
| Labour union funds | 19,320,629 | 19,409,807 |
| Consulting advisers | 12,931,584 | 21,279,093 |
| Canteen costs | 10,448,596 | 8,389,711 |
| Vehicle use fees | 7,592,501 | 6,399,995 |
| Water and electricity fees | 6,987,706 | 5,551,260 |
| Business travel expenses | 6,123,944 | 7,657,160 |
| Others | 51,887,283 | 62,824,612 |
| Total | 718,938,905 | 752,605,507 |
45、Reseach and development expenses
Unit: Yuan
| Item | 2022 | 2021 |
| Research and development expenses | 644,146,614 | 511,738,848 |
| Total | 644,146,614 | 511,738,848 |
46、Financial expenses
Unit: Yuan
| Item | 2022 | 2021 |
| Interest on borrowings | 269,234,431 | 202,905,070 |
| Less: Capitalised interest | 56,510,168 | 14,046,907 |
| Interest expenses | 212,724,263 | 188,858,163 |
| Less: Interest income | 71,751,429 | 42,702,029 |
| Exchange losses | 3,466,699 | 2,721,960 |
| Others | 3,773,449 | 2,304,097 |
| Total | 148,212,982 | 151,182,191 |
47、Other Income
Unit: Yuan
| Item | 2022 | 2021 |
Government subsidy amortization
| Government subsidy amortization | 117,125,948 | 40,387,953 |
| Industry support funds | 4,843,800 | 4,315,700 |
| Government incentive funds | 45,036,841 | 31,591,282 |
| Research grants | 6,629,170 | 11,171,171 |
| Others | 14,732,022 | 18,999,711 |
| Total | 188,367,781 | 106,465,817 |
48、Investment income
Unit: Yuan
| Item | 2022 | 2021 |
| Income from structural deposits | 27,665,396 | 14,685,772 |
| Fixed deposit and others | 3,902,458 | 2,161,875 |
| Total | 31,567,854 | 16,847,647 |
49、Credit impairment loss
Unit: Yuan
| Item | 2022 | 2021 |
| Losses on bad debts of notes receivables | -20,778,806 | |
| Losses on bad debts of accounts receivable | -44,501,593 | -84,095,771 |
| Losses on bad debts of other receivables | -3,218,514 | -49,019,860 |
| Total | -47,720,107 | -153,894,437 |
50、Asset impairment loss
Unit: Yuan
| Item | 2022 | 2021 |
| Decline in the value of inventories | -28,315,491 | -4,444,583 |
| Impairment loss of fixed assets | -4,997,092 | -223,891,270 |
| Impairment loss in construction in progress | -650,101,859 | |
| Impairment loss in goodwill | -122,250,507 | -103,227,834 |
| Total | -155,563,090 | -981,665,546 |
51、Income on disposal assets
Unit: Yuan
| Item | 2022 | 2021 |
| Gains on disposal of non-current assets | 15,213,059 | -1,493,248 |
| Total | 15,213,059 | -1,493,248 |
52、Non-operating revenue
Unit: Yuan
Item
| Item | 2022 | 2021 | Amount of non-recurring gains and losses included in 2022 |
| Compensation income | 305,439 | 2,945,158 | 305,439 |
| Insurance claims | 9,054,400 | 532,984 | 9,054,400 |
| Amounts unable to pay | 9,954,737 | 5,229,842 | 9,954,737 |
| Others | 3,377,696 | 3,896,550 | 2,496,380 |
| Total | 22,692,272 | 12,604,534 | 21,810,956 |
53、Non-operating expenses
Unit: Yuan
| Item | 2022 | 2021 | Amount booked into current non-recurring profits and losses |
| Donation | 488,577 | 319,746 | 488,577 |
| Government subsidy return back | 77,171 | 15,028,336 | 77,171 |
| Compensation | 655,574 | 256,750 | 655,574 |
| Others | 5,845,856 | 10,525,912 | 5,845,856 |
| Total | 7,067,178 | 26,130,744 | 7,067,178 |
54、Income tax expenses
（1）Income tax expense details
Unit: Yuan
| Item | 2022 | 2021 |
| Current income tax | 129,071,035 | 434,400,038 |
| Deferred income tax | 106,416,724 | -78,421,007 |
| Total | 235,487,759 | 355,979,031 |
（2）Adjustment process of accounting profit and income tax expenses
Unit: Yuan
| Item | 2022 |
| Total profit | 2,278,874,947 |
| Income tax expenses calculated at applicable tax rates by company | 391,337,658 |
| Effect in the balance of deferred income tax assets/liabilities at the beginning of the period due to tax rate adjustments | 3,912,386 |
| Adjustment on effect of income tax in the prior period | -7,776,520 |
| Costs, expenses and losses not deductible for tax purposes | 8,735,749 |
| Effect of deductible loss on usage of unconfirmed deferred income tax assets in the prior period | -69,079,756 |
| Effect of deductible temporary difference or deductible loss on unconfirmed deferred income tax in the current perio | 131,226 |
Effect of obtaining tax incentives
| Effect of obtaining tax incentives | -91,772,984 |
| Income tax expenses | 235,487,759 |
55、Other comprehensive income
See Note 37 for details
56、Notes to the cash flow statement
（1）Cash received relating to other operating activities
Unit: Yuan
| Item | 2022 | 2021 |
| Government grants | 77,146,968 | 172,538,864 |
| Interest income | 71,751,429 | 42,702,029 |
| Others | 37,075,172 | 45,790,381 |
| Total | 185,973,569 | 261,031,274 |
（2）Cash paid relating to other operating activities
Unit: Yuan
| Item | 2022 | 2021 |
| General office expenses | 45,107,807 | 42,874,346 |
| Canteen costs | 40,379,269 | 38,269,921 |
| Entertainment fees | 38,066,795 | 40,958,494 |
| Insurance fees | 28,837,239 | 14,037,127 |
| Maintenance fee | 28,584,497 | 25,907,924 |
| Business travel expenses | 19,865,565 | 21,292,700 |
| Rental expenses | 19,010,554 | 23,997,442 |
| Vehicle use fee | 18,761,308 | 15,575,367 |
| Consulting advisers | 15,645,923 | 23,166,436 |
| Bank fees | 3,773,449 | 2,304,097 |
| Government subsidy return back | 77,171 | 15,028,336 |
| Others | 109,953,974 | 177,524,430 |
| Total | 368,063,551 | 440,936,620 |
（3）Cash received relating to other investing activities
Unit: Yuan
| Item | 2022 | 2021 |
| Deposit | 29,927,321 | 21,682,371 |
| Total | 29,927,321 | 21,682,371 |
（4）Cash paid relating to other investing activities
Unit: Yuan
Item
| Item | 2022 | 2021 |
| Advance payment for others | 24,000,000 | |
| Total | 24,000,000 |
（5）Cash received relating to other financing activities
Unit: Yuan
| Item | 2022 | 2021 |
| Income from finance lease | 200,000,000 | |
| Total | 200,000,000 |
（6）Cash payments relating to other financing activities
Unit: Yuan
| Item | 2022 | 2021 |
| Repay financing leases | 46,045,514 | |
| Total | 46,045,514 |
57、Supplementary information to the cash flow statement
（1）Supplement information to the cash flow statement
Unit: Yuan
| Supplement information | 2022 | 2021 |
| 1．Reconciliation from net profit to cash flows from operating activities | ||
| Net profit | 2,043,387,188 | 1,558,101,624 |
| Add: Provision for asset impairment | 155,563,090 | 981,665,546 |
| Provision for credit impairment | 47,720,107 | 153,894,437 |
| Depreciation of fixed assets | 931,508,062 | 893,319,936 |
| Depreciation of right-of-use assets | 2,022,712 | 1,756,406 |
| Amortisation of intangible assets | 65,785,684 | 60,490,281 |
| Amortisation of long-term prepaid expenses | 1,835,784 | 430,438 |
| Losses (gains) on disposal of fixed assets, intangible assets and other long-term asset ("-" for gains) | -15,213,059 | 1,493,248 |
| Financial expenses ("-" for gains) | 212,724,263 | 188,858,163 |
| Investment loss ("-" for gains) | -31,567,854 | -16,847,647 |
| Decrease in deferred tax assets ("-" for increase) | 93,555,317 | -60,065,652 |
| Increase in deferred tax liabilities ("-" for decrease) | 12,861,407 | -18,214,498 |
| Decrease in inventories ("-" for increase) | -713,041,551 | -273,932,796 |
| Decrease/(increase) in operating receivables ("-" for increase) | -1,508,659,625 | 104,211,540 |
| Increase in operating payables ("-" for decrease) | 650,035,930 | 324,487,004 |
| Others | 8,605,776 | |
| Net cash flows from operating activities | 1,957,123,231 | 3,899,648,030 |
| 2． Net changes in cash and cash equivalents: |
Cash and cash equivalents at end of year
| Cash and cash equivalents at end of year | 4,594,018,251 | 2,756,477,572 |
| Less: Cash and cash equivalents at beginning of year | 2,756,477,572 | 2,124,028,196 |
| Net increase in cash and cash equivalents | 1,837,540,679 | 632,449,376 |
（2）Cash and cash equivalents composition
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| I.Cash and cash equivalents | 4,594,018,251 | 2,756,477,572 |
| Bank deposits that can be readily drawn on demand | 3,242,318,251 | 2,453,477,573 |
| Other cash balances that can be readily drawn on demand | 1,351,700,000 | 302,999,999 |
| II.Cash and cash equivalents at end of year | 4,594,018,251 | 2,756,477,572 |
58、The assets with the ownership or use right restricted
Unit: Yuan
| Item | Book value at the end of reporting period | Cause of restriction |
| Monetary funds | 10,589,528 | Restricted circulation of deposits, freezes, etc |
| Note receivable | 156,943,437 | Restricted pledge |
| Fixed assets | 132,370,370 | Restricted financing lease |
| Total | 299,903,335 |
59、Monetary items denominated in foreign currencies
（1）Foreign currency monetary items
Unit: Yuan
| Item | Balances denominated in foreign currencies | Exchange rates | Balances denominated in RMB |
| Cash at bank and on hand | 38,329,755 | ||
| Including：USD | 4,476,030 | 6.9646 | 31,173,757 |
| EUR | 27,186 | 7.4229 | 201,796 |
| HKD | 7,772,276 | 0.8933 | 6,942,974 |
| SGD | 1,265 | 5.1831 | 6,556 |
| AUD | 797 | 4.7138 | 3,759 |
| JPY | 17,424 | 0.0524 | 913 |
| Accounts receivable | 136,364,845 | ||
| Including：USD | 18,502,593 | 6.9646 | 128,863,157 |
| EUR | 834,785 | 7.4229 | 6,196,529 |
| HKD | 1,461,053 | 0.8933 | 1,305,159 |
| Accounts payable | 32,908,539 | ||
| Including：USD | 4,047,582 | 6.9646 | 28,189,789 |
EUR
| EUR | 554,741 | 7.4229 | 4,117,790 |
| HKD | 263,031 | 0.8933 | 234,966 |
| JPY | 4,661,832 | 0.0524 | 244,280 |
| GBP | 14,500 | 8.3941 | 121,714 |
60、Government grants
（1）Basic conditions of government grants
Unit: Yuan
| Type | Amount | Presentation account | Amount included in profit or loss for the year |
| Amortization of government subsidies | 117,125,948 | Other income | 117,125,948 |
| Other government subsidies | 77,667,748 | Other income、Financial expenses、Construction in progress | 73,367,748 |
（2）General information of government subsidies return
Unit: Yuan
| Item | Amount | Cause of return |
| Subsidy for the industrialization research project of Shenzhen float high-strength ultra-thin glass | 77,171 | |
| Zhaoqing Energy Conservation Industry Co construction Financial Support Fund | 433,800 |
VI、THE CHANGES OF CONSOLIDATION SCOPE
1、Changes in scope of consolidation due to other reasons
（1）On February 14, 2022, the Group set up a subsidiary, Yichang Nanbo New Energy Materials Technology Co., Ltd. (referredto as "Yichang New Energy Materials Company") and the Group has invested RMB 1,200,000.The Group owns 100% of itsequity.
（2）On July 1, 2022,, the Group set up a subsidiary, Dongguan Nanbo Intelligent Equipment Manufacturing Co., Ltd. (referredto as "Dongguan Intelligent Equipment Company") and the Group has invested RMB 2,500,000.The Group owns 100% of itsequity.
（3）On July 14, 2022, the Group set up a subsidiary, Anhui Nanbo Photovoltaic Energy Co., Ltd. (referred to as "AnhuiPhotovoltaic Energy Company")and the Group has not invested . The Group owns 100% of its equity.
（4）On July 14, 2022, the Group set up a subsidiary, Shenzhen Nanbo Quartz Material Industrial Co., Ltd. (referred to as"Shenzhen Quartz Company") and the Group has invested RMB 3,000,000.The Group owns 100% of its equity.
（5）On August 4, 2022, the Group set up a subsidiary, Guangxi Nanbo Quartz Materials Co., Ltd. (referred to as "GuangxiQuartz Company") and the Group has invested RMB 2,995,000.The Group owns 100% of its equity.
VII、EQUIRTY IN OTHER ENTITIES
1、Interest in subsidiaries
（1）Constitution of the Group
Name ofSubsidiary
| Name of Subsidiary | Major business location | Place of registration | Scope of business | Shareholding | Method of acquisition | |
| Direct | Indirect | |||||
| Chengdu CSG | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Sichuan CSG Energy Conservation | Chengdu, PRC | Chengdu, PRC | Development, production and sales of special glass and processing of glass | 75% | 25% | Separation |
| Tianjin Energy Conservation | Tianjin, PRC | Tianjin, PRC | Development, production and sales of special glass | 75% | 25% | Establishment |
| Dongguan CSG Engineering | Dongguan, PRC | Dongguan, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Dongguan CSG Solar | 中Dongguan, PRC | Dongguan, PRC | Production and sales of solar glass | 75% | 25% | Establishment |
| Dongguan CSG PV-tech | Dongguan, PRC | Dongguan, PRC | Production and sales of hi-tech green battery and components | 100% | Establishment | |
| Yichang CSG PolysSilicon | Yichang, PRC | Yichang, PRC | Production and sales of high-purity silicon materials | 75% | 25% | Establishment |
| WujiangCSG Engineering | Wujiang, PRC | Wujiang, PRC | Intensive processing of glass | 75% | 25% | Establishment |
| Hebei CSG | Yongqing, PRC | Yongqing, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Wujiang CSG | Wujiang, PRC | Wujiang, PRC | Production and sales of special glass | 100% | Establishment | |
| China Southern Glass (Hong Kong) Limited | Hong Kong, PRC | Hong Kong, PRC | Investment holding | 100% | Establishment | |
| Xianning CSG | Xianning, PRC | Xianning, PRC | Production and sales of special glass | 75% | 25% | Establishment |
| Xianning CSG Energy-Saving | Xianning, PRC | Xianning, PRC | Intensive processing of glass | 75% | 25% | Separation |
| Qingyuan CSG Energy-Saving | Qingyuan, PRC | Qingyuan, PRC | Production and sales of ultra-thin electronic glass | 100% | Establishment | |
| Shenzhen CSG Financial Leasing Co., Ltd. | Shenzhen, PRC | Shenzhen, PRC | Finance leasing, etc. | 75% | 25% | Establishment |
| Jiangyou CSG Mining Development Co. Ltd. | Jiangyou, PRC | Jiangyou, PRC | Production and sales of silica and its by-products | 100% | Establishment | |
| Shenzhen CSG Display: | Shenzhen, PRC | Shenzhen, PRC | Production and sales of display component products | 60.8% | Acquisition | |
| Zhaoqing Energy Saving Company | Zhaoqing PRC | Zhaoqing PRC | Production and sales of various special glasses | 100% | Establishment | |
| Zhaoqing Automobile Company | Zhaoqing PRC | Zhaoqing PRC | Production and sales of various special glasses | 100% | Establishment | |
| Anhui Energy Company | Fengyang, PRC | Fengyang, PRC | Production and sales of solar glass products | 100% | Establishment | |
| Anhui Quartz Company | Fengyang, PRC | Fengyang, PRC | Production and sales of solar glass products | 100% | Establishment | |
| Anhui Silicon Valley | Fengyang, | Fengyang, | Mineral resources | 60% | Establish | |
Mingdu Mining Company
| Mingdu Mining Company | PRC | PRC | exploitation | ment | ||
| Xi'an energy conservation company | Xi’an, , PRC | Xi’an, , PRC | Production and sales of various special glasses | 55% | 45% | Establishment |
| Guangxi New Energy Materials Company | Longgang, , PRC | Longgang, , PRC | Production and sales of various special glasses | 75% | 25% | Establishment |
（2）Major non-wholly owned subsidiaries
Unit: Yuan
| Name of Subsidiary | Shareholding of minority shareholders | Profit or loss attributable to minority shareholders for the year ended 31 December 2022 | Dividends distributed to minority shareholders for the year ended 31 December 2022 | Minority interests as at 31 December 2022 |
| Shenzhen CSG Display | 39.20% | 6,409,988 | 410,609,194 |
（3）Key financial information of major non-wholly owned subsidiaries
Unit: Yuan
| Name of Subsidiary | 31 December 2022 | |||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Shenzhen CSG Display | 200,627,791 | 1,323,084,986 | 1,523,712,777 | 333,428,174 | 79,596,855 | 413,025,029 |
| 1 January 2022 | ||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| 210,979,056 | 1,378,117,087 | 1,589,096,143 | 448,244,735 | 54,477,833 | 502,722,568 | |
Unit: Yuan
| Name of Subsidiary | 2022 | 2021 | ||||||
| Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Shenzhen CSG Display | 542,893,990 | 24,314,174 | 24,314,174 | 131,961,156 | 750,177,561 | 88,336,632 | 88,336,632 | 196,307,039 |
VIII、RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTSThe Group's activities expose it to a variety of financial risks: market risk (primarily foreign exchange risk and interest rate risk),credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial market andseeks to reduce potential adverse effects on the Group's financial performance.
1、Market risk
（1）Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated inRMB. Some export business, however, is denominated in foreign currencies. In addition, the Group is exposed to foreign
exchange risk arising from the recognized assets and liabilities, and future transactions denominated in foreign currencies,primarily with respect to US dollars and Hong Kong dollar. The Group monitors the scale of foreign currency transactions, foreigncurrency assets and liabilities, and adjust settlement currency of export business, to furthest reduce the currency risk.On 31 December 2022, book values in RMB equivalent of the Group’s assets and liabilities denominated in foreign currencies aresummarized below:
Unit: Yuan
| 31 December 2022 | ||||
| USD | HKD | Others | Total | |
Financial assetsdenominated in foreigncurrency
| Financial assets denominated in foreign currency | ||||
| Cash at bank and on hand | 31,173,757 | 6,942,974 | 213,024 | 38,329,755 |
| Receivables | 128,863,157 | 1,305,159 | 6,196,529 | 136,364,845 |
| Total | 160,036,914 | 8,248,133 | 6,409,553 | 174,694,600 |
| Financial liabilities denominated in foreign currency | ||||
| Payables | 28,189,789 | 234,966 | 4,483,784 | 32,908,539 |
| Total | 28,189,789 | 234,966 | 4,483,784 | 32,908,539 |
（1）Foreign exchange risk（continued）
Unit: Yuan
| Item | 1 January 2022 | |||
| USD | HKD | Others | Total | |
Financial assetsdenominated in foreigncurrency
| Financial assets denominated in foreign currency | ||||
| Cash at bank and on hand | 26,509,188 | 2,379,817 | 115,374 | 29,004,379 |
| Receivables | 111,133,429 | 1,732,573 | 6,026,900 | 118,892,902 |
| Total | 137,642,617 | 4,112,390 | 6,142,274 | 147,897,281 |
| Financial liabilities denominated in foreign currency | ||||
| Payables | 40,306,973 | 201,921 | 2,416,770 | 42,925,664 |
| Total | 40,306,973 | 201,921 | 2,416,770 | 42,925,664 |
On 31 December 2022, if the currency had strengthened/weakened by 10% against the USD while all other variables had beenheld constant, the Group’s net profit for the year would have been approximately RMB 11,207,006 lower/higher (31 December2021: approximately RMB 8,273,530 lower/higher) for various financial assets and liabilities denominated in USD.
Other changes in exchange rate had no significant impact on the Group's operating activities except USD dollar.
（2）Interest rate risk
The Group's interest rate risk arises from long-term interest bearing debts including long-term borrowings and bonds payable.Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed ratesexpose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate
contracts depending on the prevailing market conditions. As at 31 December 2022, the Group’s long-term interest-bearing debts atand fixed rates and floating rates are illustrated below:
Unit: Yuan
Type
| Type | 31 December 2022 | 1 January 2022 |
Contracts at fixed rates
| Contracts at fixed rates | 487,260,925 | 2,404,372,257 |
| Contracts at floating rates | 3,866,329,055 | 1,061,274,897 |
| Total | 4,353,589,980 | 3,465,647,154 |
The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of newborrowing and the interest expenses with respect to the Group’s outstanding floating rate borrowings, and therefore could have amaterial adverse effect on the Group’s financial position. The Group makes adjustments timely with reference to the latest marketconditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interestrate.
2、Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable,other receivables.
The Group expects that there is no significant credit risk associated with cash at bank since they are mainly deposited at state-owned banks and other medium or large size listed banks. Management does not expect that there will be any significant lossesfrom non-performance by these counterparties. Furthermore, as the Group’s bank acceptance notes receivable are generallyaccepted by the state-owned banks and other large and medium listed banks, management believes the credit risk should be limited.
In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notesreceivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financialposition, the availability of guarantee from third parties, their credit history and other factors such as current market conditions.The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, theGroup will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group islimited to a controllable extent.
3、Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s finance department in itsheadquarters. The Group’s finance department at its headquarters monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it has sufficient cash reserve, while maintaining sufficient headroom on its undrawncommitted borrowing facilities from major financial institutions so that the Group does not breach borrowing limits or covenantson any of its borrowing facilities to meet the short-term and long-term liquidity requirements.Management will implement the following measures to ensure the liquidation risk limited to a controllable extent:
(a) The Group will have steady cash inflows from operating activities;(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities;
(c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.The financial liabilities of the Group at the balance sheet date are analyzed by their maturity date below at their undiscountedcontractual cash flows:
Unit: Yuan
Item
| Item | 31 December 2022 | ||||
| Within 1 year | 1 to 2 years | 2 to 5years | Over 5 years | Total | |
| Short-term borrowings | 350,149,308 | 350,149,308 | |||
| Notes payable | 994,557,496 | 994,557,496 | |||
| Accounts payable | 2,033,542,627 | 2,033,542,627 | |||
| Other payables | 537,065,184 | 537,065,184 | |||
| Other current liabilities | 50,407,240 | 50,407,240 | |||
| Non-current liabilities due within one year | 2,493,836,975 | 2,493,836,975 | |||
Long-term payables
| Long-term payables | 40,906,147 | 88,330,731 | 129,236,878 | ||
| Long-term borrowings | 159,922,694 | 1,158,108,565 | 2,569,845,854 | 1,040,196,665 | 4,928,073,778 |
| Total | 6,619,481,524 | 1,199,014,712 | 2,658,176,585 | 1,040,196,665 | 11,516,869,486 |
Unit: Yuan
| Item | 1 January 2022 | ||||
| Within 1 year | 1 to 2 years | 2 to 5years | Over 5 years | Total | |
| Short-term borrowings | 182,299,506 | 182,299,506 | |||
Notes payable
| Notes payable | 400,662,713 | 400,662,713 | |||
| Accounts payable | 1,428,851,312 | 1,428,851,312 | |||
| Other payables | 289,440,477 | 289,440,477 | |||
| Other current liabilities | 40,099,309 | 40,099,309 | |||
| Non-current liabilities due within one year | 514,569,537 | 514,569,537 | |||
| Long-term payables | 38,900,194 | 129,357,868 | 168,258,062 | ||
| Long-term borrowings | 60,580,998 | 374,241,583 | 889,057,539 | 363,125,181 | 1,687,005,301 |
| Bonds payable | 120,000,000 | 2,120,000,000 | 2,240,000,000 | ||
| Total | 3,036,503,852 | 2,533,141,777 | 1,018,415,407 | 363,125,181 | 6,951,186,217 |
IX、DISCLOSURE OF FAIR VALUE
1、Closing balance of assets and liabilities measured at fair value
Unit: Yuan
| Item | 31 December 2022 | |||
| Level 1 | Level 2 | Level 3 | Total | |
| Measured at fair value through other comprehensive income | -- | -- | -- | -- |
| Receivables Financing | 1,095,412,643 | 1,095,412,643 | ||
| Investment property | 290,368,105 | 290,368,105 | ||
Total
| Total | 290,368,105 | 1,095,412,643 | 1,385,780,748 |
2、Fair value of financial assets and financial liabilities not measured at fair valueThe group’s financial assets and financial liabilities measured at amortized cost mainly include: notes receivable, accountsreceivable, other receivable, short-term borrowings, accounts payable, lease liabilities, ong term borrowings, bonds payable ect.Except for financial liabilities listed below, book value of the other financial assets and liabilities not measured at fair value is areasonable approximation of their fair value.
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||
| Carrying amount | Fair value | Carrying amount | Fair value | |
Corporate bonds
| Corporate bonds | 1,999,316,522 | 2,001,520,000 | 1,996,587,330 | 2,014,330,000 |
| Total | 1,999,316,522 | 2,001,520,000 | 1,996,587,330 | 2,014,330,000 |
X、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 VII(1).
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 |
| Suzhou Baoqi Logistics Co., Ltd. | Related parties of the company's largest shareholder of taking concerted action |
| Shenzhen Baoneng Auto Sales & Service Co., Ltd. | Related parties of the company's largest shareholder of taking concerted action |
| Xinjiang Qianhai United Property & Casualty Insurance Co., Ltd. | Related parties of the company's largest shareholder of taking concerted action |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | Related parties of the company's largest shareholder of taking concerted action |
5、Related party transactions
（1）Purchase and sales of goods and rendering and receiving services
Table on purchase of goods/receiving of services
Unit: Yuan
Related parties
| Related parties | Related transaction | 2022 | 2021 |
| Qianhai Life Insurance Co., Ltd | Receive service | 7,272,709 | 5,541,857 |
| Suzhou Baoqi Logistics Co., Ltd | Receive service | 6,851,844 | |
| Shenzhen Baoneng Automobile Sales and Service Co., Ltd | Purchase of goods | 1,171,470 | |
| Xinjiang Qianhai United Property Insurance Co., Ltd | Receive service | 761,693 | |
| Other related parties | Purchase of goods、Receive service | 194,206 | 620,812 |
| Total | 7,466,915 | 14,947,676 |
Table on sales of goods/providing of services
Unit: Yuan
| Related parties | Related transaction | 2022 | 2021 |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | Sales of goods | 1,397,807 | |
| Other related parties | Sales of goods | 60,280 | 659,685 |
| Total | 1,458,087 | 659,685 |
Notes： A large number of companies with scattered amounts are consolidated and presented for other related parties
（2）Related party leases
The Company as lessee:
Unit: Yuan
| Name of lessor | Type of leased asset | Rent costs of short-term leases and low-value asset leases with simplified treatment (if applicable) | Variable lease payments not included in the measurement of lease obligation (if applicable) | Rentals | Interest expenses on lease liabilities in the current year | Increase of right-of-use assets | |||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||
| Other related parties | Building | 665,196 | 886,928 | 25,871 | 66,174 | ||||||
（3）Remuneration of key management staff
Unit: Yuan
| Item | 2022 | 2021 |
| Remuneration | 25,776,400 | 25,749,501 |
6、Receivables from and payables to related parties
（1）Receivables from related parties
Unit: Yuan
Related parties
| Related parties | 31 December 2022 | 1 January 2022 | ||
| Carrying amount | Provision for bad debts | Carrying amount | Provision for bad debts | |
| Qianhai Life Insurance Co., Ltd | 572,995 | |||
| Other related parties | 36,000 | 720 | 242,620 | 4,819 |
| Total | 608,995 | 720 | 242,620 | 4,819 |
（2）Payables to related parties
Unit: Yuan
| Related parties | 31 December 2022 | 1 January 2022 |
| Suzhou Baoqi Logistics Co., Ltd | 314,667 | 2,731,013 |
| Shantou Chaoshang Urban Comprehensive Management Co., Ltd | 200,881 | |
| Other related parties | 125,408 | 133,408 |
| Total | 640,956 | 2,864,421 |
XI、SHARE-BASED PAYMENTS
1、Overall share-based payments
None
2、Equity-settled share-based payments
None
3、Cash-settled share-based payments
NoneXII、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: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Buildings, machinery and equipment | 3,060,099,197 | 2,994,615,272 |
XIII、EVENTS AFTER THE BALANCE SHEET
1、Profit distribution information
Unit: Yuan
| Proposed distribution of cash dividends | 460,603,816 |
According to the resolution of the board of directors on April 24, 2023, the board of directors proposed that the company distributea cash dividend of RMB 460,603,816 to all shareholders. This proposal is approving by the general meeting of shareholders. Thecash dividend proposed after the balance sheet date has not been confirmed in this financial statement as a liability.XIV、OTHER SIGNIFICANT EVENTS
1、Segment reporting
（1）Determination basis and accounting policy of report segment
The Group's business activities are classifcated by product and service as follows:
Glass segment, engaged in production and sales of float glass and engineering glass and the silica for the production thereof, etc.Solar energy segment, engaged in manufacturing and sales of polycrystalline silicon and solar battery and applications, etc.Solar and other segment divisions, responsible for the production and sales of polysilicon and solar cell module products,photovoltaic energy development and other products, etc.
The reportable segments of the Group are the business units that provide different products or service. Different businesses requiredifferent technologies and marketing strategies. The Group, therefore, separately manages the production and operation of eachreportable segment and Estimates their operating results respectively, in order to make decisions about resources to be allocated tothese segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocatedbased on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on theproportion of each segment’s revenue.
（2）Financial information of reporting segments
Unit: Yuan
Item
| Item | Flat glass | Electronic glass and displays | Solar and other industries | Unallocated | Elimination | Total |
| Revenue from external customers | 9,894,002,863 | 1,470,587,932 | 3,831,603,860 | 2,512,343 | 15,198,706,998 | |
| Inter-segment revenue | 162,736,393 | 172,495,899 | 56,978,902 | 371,837,218 | -764,048,412 | |
| Interest income | 3,862,088 | 595,151 | 578,167 | 66,716,023 | 71,751,429 | |
| Interest expenses | 26,741,659 | 7,271,418 | 383,249 | 178,327,937 | 212,724,263 | |
| Asset impairment losses | 17,229,501 | 16,083,082 | 122,250,507 | 155,563,090 | ||
| Credit impairment loss | 35,368,484 | -33,329 | 11,927,635 | 457,317 | 47,720,107 | |
| Depreciation and amortisation expenses | 613,677,200 | 230,804,196 | 150,003,099 | 6,667,747 | 1,001,152,242 | |
| Total profit/(loss) | 1,162,517,806 | 185,946,481 | 1,072,267,930 | -141,857,270 | 2,278,874,947 |
Income tax(expenses)/income
| Income tax (expenses)/income | 122,509,910 | 16,248,533 | 98,356,847 | -1,627,531 | 235,487,759 | |
| Net profit/(loss) | 1,040,007,896 | 169,697,948 | 973,911,083 | -140,229,739 | 2,043,387,188 | |
| Total assets | 14,816,107,672 | 3,657,683,773 | 3,839,214,143 | 3,591,007,718 | 25,904,013,306 | |
| Total liabilities | 6,870,531,882 | 700,657,854 | 554,483,116 | 4,402,669,151 | 12,528,342,003 | |
| Increase in non-current assets | 3,377,508,584 | 309,339,498 | 307,531,029 | 8,374,505 | 4,002,753,616 |
XV、NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1、Accounts receivable
（1）Details on categories
Unit: Yuan
| Type | 31 December 2022 | 1 January 2022 | ||||||||
| Carrying Amount | Provision for bad debts | Book value | Carrying Amount | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Accrual proportion | Amount | Proportion | Amount | Accrual proportion | |||
| Credit loss provision accrued by portfolio | 24,484,628 | 100% | 489,692 | 2% | 23,994,936 | |||||
| Total | 24,484,628 | 100% | 489,692 | 2% | 23,994,936 | |||||
Provision for bad debts made on the basis of portfolio:
Unit: Yuan
| Name | 31 December 2022 | ||
| Carrying Amount | Provision for bad debts | Accrual proportion | |
| Portfolio 1 | 24,484,628 | 489,692 | 2% |
| Total | 24,484,628 | 489,692 | 2% |
Disclosure by ages
Unit: Yuan
| Aging | 31 December 2022 |
| Within 1 year (including 1 year) | 24,484,628 |
| Total | 24,484,628 |
（2）Provisions made, collected or reversed in current period
Provision for bad debts made in current period:
Unit: Yuan
Type
| Type | 1 January 2022 | Movement in current year | 31 December 2022 | |||
| Accrual | Withdrawal or reversal | Write-off | Others | |||
| Provision for bad debts for accounts receivable | 489,692 | 489,692 | ||||
| Total | 489,692 | 489,692 | ||||
（3）Accounts receivable details of the top 5 closing balances by debtors
Unit: Yuan
| Name | Accounts receivable closing balance | % of total balance | Provision for bad debts |
| Total balance of the five larhest accounts receivables | 24,484,628 | 100% | 489,692 |
| Total | 24,484,628 | 100% | 489,692 |
2、Other receivables
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Dividend receivable | 375,057,800 | 250,000,000 |
| Other receivables | 1,994,373,982 | 2,649,091,405 |
| Total | 2,369,431,782 | 2,899,091,405 |
（1）Dividends receivable
1）Disclosed by categories
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 |
| Dividends receivable from subsidiaries | 375,057,800 | 250,000,000 |
| Total | 375,057,800 | 250,000,000 |
（2）Other receivables
1）Other receivables categorized by nature
Unit: Yuan
| Nature of receivables | 31 December 2022 | 1 January 2022 |
| Due from Related parties | 1,870,622,635 | 2,526,427,812 |
| Others | 175,134,028 | 174,005,021 |
| Total | 2,045,756,663 | 2,700,432,833 |
2）Provision for bad debts
Unit: Yuan
3）Disclosure by ages
Unit: Yuan
Ages
| Ages | 31 December 2022 |
| Within 1 year (including 1 year) | 1,874,539,007 |
| Over 1year | 171,217,656 |
| Total | 2,045,756,663 |
4）Provisions made, collected or reversed in current periodProvision for bad debts made in current period:
Unit: Yuan
| Type | 1 January 2022 | Movement in current year | 31 December 2022 | |||
| Accrual | Withdrawal or reversal | Write-off | Others | |||
| Provision for bad debts of other receivables | 51,341,428 | 41,253 | 51,382,681 | |||
| Total | 51,341,428 | 41,253 | 51,382,681 | |||
5）Other receivables details of the top 5 closing balances by debtors
Unit: Yuan
| Name of entity | Relationship with the Group | Amount | Ageing | % of total balance | Provision for bad debts |
| Company 1 | Subsidiary | 562,974,714 | Within 1 year | 28% | |
| Company 2 | Subsidiary | 291,609,908 | Within 1 year | 14% | |
| Company 3 | Subsidiary | 226,938,085 | Within 1 year | 11% | |
| Company 4 | Subsidiary | 218,229,101 | Within 1 year | 11% |
Bad debts
| Bad debts | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit losses in the following 12 months (grouping) | Lifetime expected credit losses (credit unimpaired) | Lifetime expected credit losses (credit impaired)） | ||
| Amount on 1st January 2022 | 41,428 | 51,300,000 | 51,341,428 | |
| Carrying amount on 1st January 2022 that in this period: | ||||
| Increase in the current year | 41,253 | 41,253 | ||
| Amount on 31st December 2022 | 82,681 | 51,300,000 | 51,382,681 |
Company 5
| Company 5 | Third party | 171,000,000 | Over 5 years | 8% | 51,300,000 |
| Total | 1,470,751,808 | 72% | 51,300,000 |
3、Long-term equity investments
Unit: Yuan
| Item | 31 December 2022 | 1 January 2022 | ||||
| Carrying amount | Provision for impairment | Book value | Carrying amount | Provision for impairment | Book value | |
| Investment in subsidiaries | 7,853,487,027 | 15,000,000 | 7,838,487,027 | 6,277,391,694 | 15,000,000 | 6,262,391,694 |
| Total | 7,853,487,027 | 15,000,000 | 7,838,487,027 | 6,277,391,694 | 15,000,000 | 6,262,391,694 |
3、Long-term equity investments（Continued）
（1）Investments in subsidiaries
Unit: Yuan
Investee
| Investee | 1 January 2022 | Movement in current year | 31 December 2022 | Closing balance of impairm ent provision | |||
| Increase in investment | Decrease in investment | Provision for impairment loss | Others | ||||
| Chengdu CSG | 151,397,763 | 151,397,763 | |||||
| Sichuan Energy Conservation Company | 119,256,949 | 119,256,949 | |||||
| Tianjin Energy Conservation Company | 247,833,327 | 247,833,327 | |||||
| Dongguan Engineering Company | 198,276,242 | 198,276,242 | |||||
| Dongguan Solar Energy Company | 355,120,247 | 355,120,247 | |||||
| Dongguan Photovoltaic Company | 382,112,183 | 382,112,183 | |||||
| Yichang Silicon Material Company | 640,856,170 | 269,104,000 | 909,960,170 | ||||
| Wujiang Engineering Company | 254,401,190 | 254,401,190 | |||||
| Hebei CSG | 266,189,705 | 266,189,705 | |||||
| CSG (Hong Kong) Co., Ltd. | 87,767,304 | 87,767,304 | |||||
| Wujiang CSG | 567,645,430 | 567,645,430 | |||||
| Jiangyou Sands Company | 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 Company | 550,765,474 | 550,765,474 | |||||
| Zhaoqing Energy Saving Company | 150,000,000 | 150,000,000 | |||||
| Zhaoqing CSG Automotive Glass Co., Ltd. | 58,121,000 | 57,926,333 | 116,047,333 | ||||
| Anhui Energy Company | 455,000,000 | 845,000,000 | 1,300,000,000 | ||||
| Anhui Quartz Company | 37,000,000 | 38,000,000 | 75,000,000 | ||||
Anhui Silicon ValleyMingdu MiningCompany
| Anhui Silicon Valley Mingdu Mining Company | 3,000,000 | 117,000,000 | 120,000,000 | ||||
| Shenzhen CSG Medical Company | 20,000,000 | 20,000,000 | |||||
| Xi'an energy conservation company | 1,000,000 | 40,365,000 | 41,365,000 | ||||
| Guangxi New Energy Materials Company | 1,000,000 | 56,000,000 | 57,000,000 | ||||
| Nanba (Suzhou) Corporate Headquarters Management Co., Ltd. | 9,000,000 | 21,000,000 | 30,000,000 | ||||
| Shenzhen South Glass New Energy Industry Development Co., Ltd | 120,000,000 | 120,000,000 | |||||
| Others | 238,892,197 | 11,700,000 | 250,592,197 | 15,000,000 | |||
| Total | 6,262,391,694 | 1,576,095,333 | 7,838,487,027 | 15,000,000 |
4、Operating income and operating costs
Unit: Yuan
| Item | 2022 | 2021 | ||
| Income | Cost | Income | Cost | |
| Principal operation | 2,232,800 | |||
| Other operations | 371,474,846 | 294,247,989 | ||
| Total | 373,707,646 | 294,247,989 | ||
5、Investment income
Unit: Yuan
| Item | 2022 | 2021 |
| Investment income from long-term equity investment under cost method | 841,070,857 | 1,065,649,376 |
| Proceeds from long-term equity transfer | 196,665,194 | |
| Income from structural deposits | 27,665,396 | 14,245,329 |
| Fixed deposit and others | 3,902,458 | 2,446,900 |
| Total | 872,638,711 | 1,279,006,799 |
XVI、SUPPLEMENT INFORMATION
1、Statement of non-recurring gains and losses
Unit: Yuan
Item
| Item | Amount | Notes |
| Gains or losses on disposal of non-current assets | 15,213,059 | |
| Government grants recognized in profit or loss (except for grants that are closely related to the Company's business and are in amounts and quantities fixed in accordance with the national standard) | 188,756,525 | |
| Losses/gains from changes of fair values occurred in holding trading financial assets and trading financial liabilities, and investment income obtaining from the disposal of trading financial assets, trading financial liability and financial assets available-for-sale, excluded effective hedging business relevant with normal operations of the Company | 31,567,854 | |
| Reversal of provision for accounts receivable that are tested for credit loss individually | 6,389,385 | |
| Other non-operating income or expenses other than above | 14,743,778 | |
| Less :Influenced amount of income tax | 34,242,061 | |
| Influenced amount of minor shareholders’ equity | 4,655,298 | |
| Total | 217,773,242 | -- |
The specific situation of other profit and loss items that meet the definition of non recurring profit and loss:
The company does not have specific circumstances for other profit and loss items that meet the definition of non recurring profitand loss.
2、Return on net assets and earnings per share
| The profit of reporting period | Weighted average return on net assets | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to ordinary shareholders of the Company | 16.78% | 0.66 | 0.66 |
| Net profit attributable to ordinary shareholders of the Company after deducting non-recurring gains and losses | 14.99% | 0.59 | 0.59 |
Board of Directors ofCSG Holding Co., Ltd.26 April 2023