CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2014
Chairman of the Board:
ZENG NAN
October 2014
CSG HOLDING CO., LTD. The Third Quarter Report 2014 Section I. Important Notice
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities jointly and severally, for the truthfulness, accuracy and completeness of the whole contents.
All directors are present the meeting of the Board for deliberating the Third Quarter Report of the Company in person.
Chairman of the Board of the Company Mr. Zeng Nan, CFO Mr. Luo Youming and principle of the financial department Mr. Zhang Guoming hereby confirm the truthfulness, accuracy and completeness of the Financial Report in the Third Quarter Report of 2014.
This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.
CSG HOLDING CO., LTD. The Third Quarter Report 2014 Section II Main accounting data and Changes in Shareholders I. Main accounting data and indices
Whether retrospective adjustment has been carried out on financial reports of previous periods or not
√Yes □ No
||||||
|-|-|-|-|-|
|||||Increase/decrease in|
||The end of current|The end of last year||comparison with the end|
||period|||of last year|
|||Before adjustment|After adjustment|After adjustment|
|Total assets (RMB )|15,267,585,451|15,078,866,777|15,078,866,777|1.25%|
|Net assets attributable to shareholders|8,260,462,180||8,047,894,139||
|||8,047,894,139||2.64%|
|of the Company (RMB )|||||
|||Increase/Decrease in|||
|||||Increase/decrease in|
|||comparison with the|From 1 January to||
||Current period|||comparison with the|
|||same period of last|30 September 2014||
|||||same period of 2013|
|||year|||
|Operating revenues (RMB )|1,886,265,762|-10.80%|5,148,947,434|-8.89%|
|Net profit attributable to shareholders|148,078,202||737,288,641||
|||-45.94%||17.47%|
|of the Company (RMB )|||||
|Net profit attributable to shareholders|||||
|of the Company after deducting|||||
||130,635,155|-45.57%|373,570,080|-33.66%|
|extraordinary gains|||||
|and losses (RMB )|||||
|Net cash flows from operating|||957,778,263||
||--|--||-12.73%|
|activities (RMB )|||||
|Basic earnings per share|0.07||0.36||
|||-46.15%||20%|
|(RMB/Share)|||||
|Diluted earnings per share|0.07||0.36||
|||-46.15%||20%|
|(RMB/Share)|||||
|Weighted average ROE (%)|1.82%|-2.12%|9.05%|0.03%|

 Non-recurring items deducted and amounts
√Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
||Amount from the beginning of year to||
|Items||Note|
||the end of the report period(RMB)||
|Gains/losses on the disposal of non-current assets (including the offset part of|-1,164,566||

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|asset impairment provisions)|||
|Government grants recognized in the current period, except for those|||
|acquired in the ordinary course of business or granted at certain quotas or|63,306,392||
|amounts according to the country’s unified standards|||
|Gains and losses from change of fair values of held-for-transaction financial|||
|assets and financial liabilities except for the effective hedge business related to|||
||2,036,611||
|normal business of the Company, and investment income from disposal of|||
|transactional financial assets and liabilities and financial assets available for sale|||
|Other non-operating income and expenditure except for the aforementioned items|13,526,669||
|Other gain/loss items satisfying the definition of extraordinary gain/loss account|308,895,397||
|Less: Impact on income tax|15,780,085||
|Amount of minority shareholders’ equity (post-tax)|7,101,857||
|Total|363,718,561|--|

 Explain reasons for the extraordinary profit (gain)/loss defined byQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss, and the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss.
√Applicable
□
Not applicable
||||
|-|-|-|
||Amount||
|Item||Reasons|
||involved (RMB)||
|Other gain/loss items satisfying the definition ofextraordinary gain/loss account|308,895,397|It was mainly due to the Company sold 100% equity ofShenzhen CSG Float Glass Co., Ltd.|

II. Total of shareholders at the end of the report period and particulars about the shares held by the top ten shareholders
1. Total of common shareholders and particulars about the common shares held by the top ten shareholders
Unit: Share
|||||||||
|-|-|-|-|-|-|-|-|
|Total of shareholders at the end of the report period||211,751||||||
|Particulars about common shares held by the top ten shareholders||||||||
||||Proportion||Amount of|Number of share||
||Nature of|||Amount of||||
|Name of shareholder|||of shares||restricted|pledged/frozen||
||shareholder|||shares held||||
||||held (%)||shares held|Share status|Amount|
|China Northern Industries Corporation|State-ownedlegal person||3.62%|75,167,934|0|||
|Xin Tong Chan Industrial Development (Shenzhen)Co., Ltd.|Domestic nonstate-owned||2.99%|62,052,845|0|||

CSG HOLDING CO., LTD. The Third Quarter Report 2014
|||||||||
|-|-|-|-|-|-|-|-|
|||legal person||||||
|Shenzhen International Holdings (Shenzhen) Co.,Ltd.||Domestic nonstate-ownedlegal person|2.88%|59,778,813|0|||
|BBH A/C VANGUARD EMERGING MARKETSSTOCK INDEX FUND||Overseas legalperson|0.75%|15,656,152|0|||
|China Minsheng Banking Corp. Ltd.- YinhuaShenzhen Stock 100 Index Classification SecuritiesInvestment Fund||Domestic nonstate-ownedlegal person|0.67%|13,907,750|0|||
|CMS (HK)||State-ownedlegal person|0.58%|12,099,601|0|||
|ICBC- Rongtong Shenzhen Stock 100 IndexSecurities Investment Funds||Domestic nonstate-ownedlegal person|0.41%|8,497,374|0|||
|GIC PRIVATE LIMITED||Overseas legalperson|0.40%|8,329,614|0|||
|GUOTAI JUNAN SECURITIES(HONGKONG)LIMITED||Overseas legalperson|0.40%|8,268,926|0|||
|Bank of China Limited – E-fund Shenzhen Stock100 ETF portfolio fund||Domestic nonstate-ownedlegal person|0.33%|6,781,262|0|||
|Particulars about unrestricted common shares held by the top ten shareholders||||||||
|||||Amount of||Type of shares||
|Shareholders||||un-restrict||||
|||||||Type|Amount|
|||||shares held||||
|China Northern Industries Corporation||||75,167,934||A-share|75,167,934|
|Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd.||||62,052,845||A-share|62,052,845|
|Shenzhen International Holdings (Shenzhen) Co., Ltd.||||59,778,813||A-share|59,778,813|
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEX FUND||||15,656,152||B-share|15,656,152|
|China Minsheng Banking Corp. Ltd.- Yinhua Shenzhen Stock 100 IndexClassification Securities Investment Fund||||13,907,750||||
|||||||A-share|13,907,750|
|CMS (HK)||||12,099,601||B-share|12,099,601|
|ICBC- Rongtong Shenzhen Stock 100 Index Securities Investment Funds||||8,497,374||A-share|8,497,374|
|GIC PRIVATE LIMITED||||8,329,614||B-share|8,329,614|
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||||8,268,926||B-share|8,268,926|
|Bank of China Limited – E-fund Shenzhen Stock 100 ETF portfolio fund||||6,781,262||A-share|6,781,262|
|Statement on associated relationship or|Among shareholders as listed above, Shenzhen International Holdings (Shenzhen) Co.,Ltd. and Xin Tong Chan Development (Shenzhen) Co., Ltd. are holding enterprises and|||||||
|consistent action among the above||||||||

CSG HOLDING CO., LTD. The Third Quarter Report 2014
|||
|-|-|
|shareholders:|belong to controlling enterprise of Shenzhen International Holdings Co., Ltd. Except forthis, It is unknown whether other shareholders belong to related party or have associatedrelationship regulated by the Management Regulation of Information Disclosure onChange of Shareholding for Listed Companies.|
|Explanation on shareholders involving||
||N/A|
|margin business (if applicable)||

Whether there was a buy-back agreement dealing in the report period or not for top 10 common shareholders and top 10 un-restricted common shareholders
□Yes √ No
CSG HOLDING CO., LTD. The Third Quarter Report 2014 Section III. Important events
I. Particulars and explanations about significant changes in main accounting statements and financial indexes
√Applicable
□
Not applicable
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Increased/Decreased||
|Items of balance sheet|Note|30 September 2014|31 December 2013||Rate|
|||||amount||
|Account receivable|(1)|408,906,094|136,430,683|272,475,411|200%|
|Other account receivable|(2)|22,539,756|109,366,023|-86,826,267|-79%|
|Other current assets|(3)|170,723,700|1,021,464,095|-850,740,395|-83%|
|Fixed assets|(4)|9,494,430,133|7,979,937,683|1,514,492,450|19%|
|Construction in progress|(5)|2,052,336,638|2,762,418,100|-710,081,462|-26%|
|Intangible assets|(6)|946,038,722|933,329,528|12,709,194|1%|
|Deferred income tax assets|(7)|101,412,275|164,787,158|-63,374,883|-38%|
|Interest payable|(8)|132,275,505|60,767,534|71,507,971|118%|
|Other account payable|(9)|141,958,526|557,130,583|-415,172,057|-75%|
|Non-current liability duewithin one year|(10)|141,395,245|399,849,715|-258,454,470|-65%|
|||From 1 January to 30|From 1 January to 30|Increased/Decreased||
|Items of profit statement|Note||||Rate|
|||September 2014|September 2013|amount||
|Operating revenue|(11)|5,148,947,434|5,651,645,278|-502,697,844|-9%|
|Investment income|(12)|324,518,883|432,000|324,086,883|75,020%|
|Income tax expenses|(13)|87,445,381|198,115,399|-110,670,018|-56%|
|Other comprehensiveincome|(14)|101,663,642|-3,482,748|105,146,390|—|

Notes:
(1) The increase of account receivable was mainly because operating revenue increased (excluding fine glass industry) in the report period, Wujiang Solar Energy project came into commercial operation and the effort to collect receivable payment was intensified at the end of last year while it was normal in the report period.
(2) The decrease of other account receivable was mainly because fire indemnity of Dongguan CSG PV, which was receivable at the end of last period, was received in the report period.
(3) The decrease of other current assets was mainly due to the long-term assets possessed by Shenzhen CSG at the end of last year transferred into held-for-sale, and equity transfer procedure of Shenzhen CSG was completed in the report period.
(4) The increase of fixed assets was mainly because construction in process of some subsidiaries was transferred into fixed assets.
(5) The decrease of construction in process was mainly because construction in process of some subsidiaries was transferred into
fixed assets.
(6) The increase of intangible assets increase was mainly due to outsourcing of intangible assets in some subsidiaries andR&D of
CSG HOLDING CO., LTD. The Third Quarter Report 2014 some subsidiaries changed into patents.
(7) The decrease of deferred income tax assets was mainly because consolidation scope changed due to equity of Shenzhen CSG transferred in the report period.
(8) The increase of interest payable was mainly because the provision for bond interest payable in the report period has not been paid yet.
(9) The decrease of other account payable was mainly because the advance of Shenzhen CSG equity transfer was counted in this item, while the equity transfer procedures was completed in the report period.
(10) The decrease of non-current liabilities due within one year was mainly because part of bank loan was due for payment. (11) The decrease of operating revenue was mainly because CSG Shenzhen Display was excluded in the consolidation scope of the Group due to part of the equity was sold at the end of last year.
(12) The increase of investment income was mainly due to the transfer of Shenzhen CSG in the report period.
(13) The decrease of income tax expenses was mainly because CSG Shenzhen Display was excluded in the consolidation scope of the Group due to part of the equity was sold at the end of last year. In addition, part of the subsidiaries obtained high-tech enterprise certification with preferential tax rate this year.
(14) The increase of other comprehensive income was mainly because the fair value of financial asset available for sale of the Company increased.
II. The progress of material events and the impact and the analysis of solutions
√Applicable
□
Not applicable
1. Sales of stock odd lots
The Company has 139,745 stock odd lots arising from implementation of dividend distribution, and the shares are recorded in specific account of Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. (“CSDC” for short). In order to solve the stock odd lots matter left over by history, according to the requirement of China Securities Regulatory Commission, the Company signed an agreement of Listed Companies Entrust Shenzhen Branch of CSDC to sell Odd Lots and authorized CSDC to sell Odd Lots. In August 2014, net income of RMB 1,045,450 was received and classified into capital reserve account in accordance with the provisions.
2.Details of other events as follow:
||||
|-|-|-|
|Overview|Disclosure date|Indexes of website for interim Notice|
|The CSG planned to transfer 100% equityof Shenzhen CSG Float Glass Co., Ltd. toJinshidai Investment Consultant(Shenzhen) Co., Ltd.|2013-09-28|The Notice (Notice No.: 2013-028) was published on ChinaSecurities Journal, Securities Times, Hong KongCommercial Daily and Juchao Website(www.cninfo.com.cn)|
|Rescind the Incentive Plan of RestrictedA-share (Draft)|2014-8-5|The Notice (Notice No.: 2014-027) was published on ChinaSecurities Journal, Securities Times, Hong KongCommercial Daily and Juchao Website(www.cninfo.com.cn)|

III. Commitments made by the Company or shareholders holding above5% shares of the Company in the report period or made in previous period and extending to the report period.
√Applicable
□
Not applicable
|||||||
|-|-|-|-|-|-|
|Commitments|Promisee|Content of commitments|Commit-me|Com|Imple|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
|||||||
|-|-|-|-|-|-|
||||nt date|mit-|ment-|
|||||ment|ation|
|||||term||
|||The Company has implemented share merger|||By|
|||reform in May 2006. Till June 2008, the share|||the|
||The|of the original non-tradable shareholders|||end|
||original|which holding over 5% total shares of the|||of the|
||non-tradab|Company had all released. Therein, the|||report|
||le|original non-tradable shareholder Shenzhen|||perio|
||shareholde|International Holdings (SZ) Limited and Xin|||d, the|
||r|Tong Chan Industrial Development|||above|
||Shenzhen|(Shenzhen) Co., Ltd. both are wholly-funded|||share|
||Internation|subsidiaries to Shenzhen International|||holde|
||al|Holdings Limited (hereinafter Shenzhen|||rs of|
|Commitments for||||||
||Holdings|International for short) listed in Hong Kong|2006-5-22|N/A|the|
|Share Merger Reform||||||
||(SZ)|united stock exchange main board. Shenzhen|||Com|
||Limited|International made commitment that it would|||pany|
||and Xin|strictly carry out related regulations of|||had|
||Tong Chan|Securities Law, Administration of the|||strictl|
||Industrial|Takeover of Listed Companies Procedures|||y|
||Developm|and Guiding Opinions on the Listed|||carrie|
||ent|Companies’ Transfer of Original Shares|||d out|
||(Shenzhen|Released from Trading Restrictions issued by|||their|
||) Co., Ltd.|CSRC during implementing share|||promi|
|||decreasingly-held plan and take information|||ses.|
|||disclosure responsibility timely.||||
|Commitments in report of acquisition or||||||
|equity change||||||
|Commitments in assets reorganization||||||
|Commitments in initial public offering or||||||
|re-financing||||||
|Other commitments for medium and small||||||
|shareholders||||||
|Completed on time or not|Yes|||||
|Detail reasons for un-complement and further||||||
||Not applicable|||||
|plan||||||

IV. Prediction of business performance of the year 2014
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of next report period or compared with the same period of last year, and statement of causations.
□ Applicable√Not applicable
V. Reception of research, communication and interview in the report period
√Applicable
□
Not applicable
CSG HOLDING CO., LTD. The Third Quarter Report 2014
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and|
|Time|Place|Way|Type|Reception||
||||||material provided|
||||||Introduced the operation|
||The|Field||HSBC Global Assets Management (H.K.) Co., Ltd.,||
|2014-5-28|||Institution||condition of the Company|
||Company|research||Macquarie Bank Limited||
||||||disclosed|
|||||Rongtong Fund Management Co., Ltd., Essence||
|||||Securities Co., Ltd., Shenzhen Jingjiantou Holding||
|||||Limited, Founder Securities Co., Ltd., Minsheng||
||||||Introduced the operation|
||The|Field||Tonghui Asset Management Co., Ltd., First State||
|2014-8-19|||Institution||condition of the Company|
||Company|research||Cinda Fund Management Co., Ltd., Beijing Xingshi||
||||||disclosed|
|||||Investment Management Co., Ltd., Guangzhou Shize||
|||||Investment Management Co., Ltd., and Houde||
|||||Investment (China) Limited||

VI. The impacts of new or revised accounting standards on the consolidated financial
statements of the company
The impacts of the change in accounting policy on the company are as follows:
1. The relevant circumstances of implementation of "Enterprise Accounting Standards No. 2 - Long-term equity investment" The revised standards adjust or clarify the accounting methods of the consolidated financial statements for the following transaction, and require retroactive adjustment:
(1) due to the factors such as added additional investment which can exert significant influence or implement joint control on the investee but does not constitute control;
(2) partly loss of joint control or significant influence on the investee due to the disposal of investment
The company holds stocks of Guangdong Golden Glass Technologies Limited (the "Golden Glass"). On April 23, 2011 the Company no longer had a significant impact on Golden Glass due to the change of directors. Hence the company's accounting methods changed from “long-term equity investment - equity method of accounting” to “ financial instruments - recognition and measurement of financial assets available for sale”. By April 23, 2011 the difference between the fair value of the shares held by the company and the book value of the original long-term equity investments has included in capital surplus, while the changes in accounting standards in 2014, this difference should be recognized as return on investment.
Impacts on consolidated balance sheet in previous periods based on the change in accounting policy by retroactively adjusted are as follows:
||||||
|-|-|-|-|-|
|Invested entity|Impact dated 1 January 2013||Impact dated 31 December 2013||
||Capital reserve|Retained profit|Capital reserve|Retained profit|
|Golden Glass|-112,417,641|112,417,641|-112,417,641|112,417,641|

 Consolidated net profit from January to September 2014 before and after the change in accounting policy are as follows:
|||||
|-|-|-|-|
|Invested entity|Net investment income|||
||After change (Jan.-Sept. 2014)|Before change (Jan.-Sept. 2014)|Impact before and after the change|
|Golden Glass|2,036,611|17,029,935|-14,993,324|

2. Relevant circumstances of implementation of "Enterprise Accounting Standards No. 30 - Presentation of Financial Statements"
According to the new standards, other comprehensive income in the income statement should be itemized, deferred income and other
CSG HOLDING CO., LTD. The Third Quarter Report 2014 comprehensive income in balance sheet shall be presented separately. The company's current financial statements have implemented and the financial data in comparable financial period have been restated.
3. the relevant circumstances of implementation of "Enterprise Accounting Standards No. 33 - Consolidated Financial Statements", "Enterprise Accounting Standards No. 9 - Employee Benefits," "Enterprise Accounting Standards No. 39 - Fair Value Measurements", "Enterprise Accounting Standards No. 40 - JV arrangement "," Enterprise Accounting Standards No. 41 - Disclosure of interests in other entities”
Consolidated financial statements on employee benefits, measured at fair value, joint venture arrangements and the related business and other matters disclosed of the interests in other entities in 2013 annual financial statements and current financial statements of the Company have been conducted in accordance with above new standards. The implementation of new standards has no impacts on the company's 2013 annual shareholders' equity and net income and current financial statements.
4. Due to the change in accounting policy, in accordance with "Enterprise Accounting Standards No. 28 - Accounting policies, changes in accounting estimates and correction of errors" and other provisions, the 2014 annual report of the Company will report 3 terms of balance sheets which are 2014 period, beginning in 2013, the end of 2013 and 2 terms for the year 2013, 2014 of other statements (income statement, cash flow statement and changes in equity) and the related notes.
CSG HOLDING CO., LTD. The Third Quarter Report 2014 Section IV. Financial Report
I .Financial Statements
All figures in the Notes to the Financial Statements are in RMB.
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|289,230,580|279,672,523|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value and of which|||
|changes are recorded into current gains and losses|||
|Notes receivable|258,828,902|323,889,490|
|Account receivable|408,906,094|136,430,683|
|Prepayment|96,177,919|73,378,329|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|22,539,756|109,366,023|
|Repurchasing of financial assets|||
|Inventories|422,538,287|378,684,712|
|Liabilities held for sale|||
|Non-current asset due in 1 year|||
|Other current asset|170,723,700|1,021,464,095|
|Total of current asset|1,668,945,238|2,322,885,855|
|Non-current assets|||
|Disburse of consigned loans|||
|Available-for-sale financial asset|224,960,400|122,760,000|
|Expired investment in possess|||

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Long-term receivable|||
|Long-term share equity investment|755,771,768|770,037,176|
|Investment real estates|||
|Fixed assets|9,494,430,133|7,979,937,683|
|Construction in process|2,052,336,638|2,762,418,100|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|946,038,722|933,329,528|
|R&D expense|11,506,665|9,881,310|
|Goodwill|3,039,946|3,039,946|
|Long-term amortizable expenses|2,633,666|3,280,021|
|Differed income tax asset|101,412,275|164,787,158|
|Other non-current asset|6,510,000|6,510,000|
|Total of non-current assets|13,598,640,213|12,755,980,922|
|Total of assets|15,267,585,451|15,078,866,777|
|Current liabilities|||
|Short-term loans|1,933,693,229|1,424,743,800|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value and of which|||
|changes are recorded into current gains and losses|||
|Notes payable|11,500,000|4,429,188|
|Account payable|1,080,701,558|981,616,449|
|Prepayment received|157,067,978|160,689,070|
|Selling of repurchased financial assets|||
|Fees and commissions payable|||
|Employees’ wage payable|136,787,310|166,377,238|
|Tax payable|94,061,175|160,754,703|
|Interest payable|132,275,505|60,767,534|
|Dividend payable||687,627|
|Other account payable|141,958,526|557,130,583|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sale|||
|Non-current liability due in 1 year|141,395,245|399,849,715|
|Other current liability|955,661|300,000|
|Total of current liability|3,830,396,187|3,917,345,907|
|Non-current liabilities|||
|Long-term borrowings|416,734,123|302,904,204|
|Bond payable|1,994,500,514|1,991,041,175|
|Long-term payable|||
|Special payable|||
|Anticipated liabilities|||
|Differed income tax liability|55,467,243|34,298,029|
|Other non-recurring liabilities|453,127,585|432,364,880|
|Total of non-current liabilities|2,919,829,465|2,760,608,288|
|Total of liability|6,750,225,652|6,677,954,195|
|Owners’ equity (or shareholders’ equity)|||
|Capital paid in (or share capital)|2,075,335,560|2,075,335,560|
|Capital reserves|1,340,891,080|1,345,450,916|
|Less: Shares in stock|||
|Special reserves|15,280,122|14,503,860|
|Other comprehensive income|33,226,242|-68,437,400|
|Surplus reserves|765,048,720|765,048,720|
|Common risk provision|||
|Retained profit|4,030,680,456|3,915,992,483|
|Total of owner’s equity belong to the parent company|8,260,462,180|8,047,894,139|
|Minor shareholders’ equity|256,897,619|353,018,443|
|Total of owners’ equity (or shareholders’ equity)|8,517,359,799|8,400,912,582|
|Total of liability and shareholders’ equity (or owners’|||
||15,267,585,451|15,078,866,777|
|equity)|||

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. The Third Quarter Report 2014 2. Balance Sheet of the Parent Company
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|112,827,203|129,337,516|
|Financial assets measured at fair value and of which|||
|changes are recorded into current gains and losses|||
|Notes receivable|||
|Account receivable|||
|Prepayment|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|3,714,938,370|3,082,240,537|
|Inventories|||
|Liabilities held for sale|||
|Non-current asset due in 1 year|||
|Other current asset|||
|Total of current asset|3,827,765,573|3,211,578,053|
|Non-current assets|||
|Available-for-sale financial asset|196,321,320|94,156,920|
|Expired investment in possess|||
|Long-term receivable|1,701,290,000|1,953,745,783|
|Long-term share equity investment|4,511,057,504|4,966,621,199|
|Investment real estates|||
|Fixed assets|34,121,016|38,163,267|
|Construction in process|||
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|2,316,786|2,649,635|
|R&D expense|||
|Goodwill|||

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Long-term amortizable expenses|1,907,600|2,424,621|
|Differed income tax asset|||
|Other non-current asset|||
|Total of non-current assets|6,447,014,226|7,057,761,425|
|Total of assets|10,274,779,799|10,269,339,478|
|Current liabilities|||
|Short-term loans|1,681,000,000|1,255,000,000|
|Financial liabilities measured at fair value and of which|||
|changes are recorded into current gains and losses|||
|Notes payable|||
|Account payable|537,318|923,245|
|Prepayment received|||
|Employees’ wage payable|42,858,182|55,932,331|
|Tax payable|1,291,574|26,978,661|
|Interest payable|55,934,121|18,800,998|
|Dividend payable||687,627|
|Other account payable|290,359,891|829,844,788|
|Liabilities held for sale|||
|Non-current liability due in 1 year||150,000,000|
|Other current liability|||
|Total of current liability|2,071,981,086|2,338,167,650|
|Non-current liabilities|||
|Long-term borrowings|156,000,000||
|Bond payable|1,994,500,514|1,991,041,175|
|Long-term payable|||
|Special payable|||
|Anticipated liabilities|||
|Differed income tax liability|44,670,080|19,128,980|
|Other non-current liabilities|11,792,800|11,792,800|
|Total of non-current liabilities|2,206,963,394|2,021,962,955|
|Total of liability|4,278,944,480|4,360,130,605|
|Owners’ equity (or shareholders’ equity)|||
|Capital paid in (or share capital)|2,075,335,560|2,075,335,560|
|Capital reserves|1,403,625,019|1,402,034,992|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Less: Shares in stock|||
|Special reserves|||
|Other comprehensive income|27,126,050|-49,497,250|
|Surplus reserves|779,594,080|779,594,080|
|Common risk provision|||
|Retained profit|1,710,154,610|1,701,741,491|
|Total of owners’ equity (or shareholders’ equity)|5,995,835,319|5,909,208,873|
|Total of liability and shareholders’ equity (or owners’|||
||10,274,779,799|10,269,339,478|
|equity)|||

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 3. Consolidated income statement for the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Total revenue|1,886,265,762|2,114,679,495|
|Incl. Business income|1,886,265,762|2,114,679,495|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,720,630,421|1,761,346,267|
|Incl. Business cost|1,417,163,510|1,470,567,648|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy reserves provided|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|8,535,114|12,161,293|
|Sales expense|75,627,822|66,187,447|
|Administrative expense|153,083,654|151,273,988|
|Financial expenses|63,563,101|63,215,026|
|Asset impairment loss|2,657,220|-2,059,135|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Plus: gains from change of fair value (“-“for loss)|||
|Investment gains (“-“ for loss)|3,756,812||
|Incl. Investment gains from affiliates|||
|Exchange gains (“-“ for loss)|||
|III. Operational profit (“-“ for loss)|169,392,153|353,333,228|
|Plus: non-operational income|24,144,928|48,209,438|
|Less: non-operational expenditure|4,159,950|335,950|
|Incl. Loss from disposal of non-current assets|385,390|211,620|
|IV. Total profit (“-“ for loss)|189,377,131|401,206,716|
|Less: Income tax expenses|26,447,975|84,387,184|
|V. Net profit (“-“ for net loss)|162,929,156|316,819,532|
|Including: Net profit realized by the entity taken over|||
|before the takeover|||
|Net profit attributable to the owners of parent company|148,078,202|273,932,669|
|Minor shareholders’ equity|14,850,954|42,886,863|
|VI. Earnings per share:|--|--|
|(I) Basic earnings per share|0.07|0.13|
|(II) Diluted earnings per share|0.07|0.13|
|VII. Other misc. incomes|90,559,507|6,786,471|
|Including: Other comprehensive incomes items that cannot|||
|be reclassified as gains and losses in the subsequent|||
|accounting periods|||
|Other comprehensive incomes items that will be|||
|reclassified as gains and losses in the subsequent|90,559,507|6,786,471|
|accounting periods as relevant requirements are met|||
|VIII. Total of misc. incomes|253,488,663|323,606,003|
|Total of misc. incomes attributable to the owners of the|||
||238,637,709|280,719,084|
|parent company|||
|Total misc gains attributable to the minor shareholders|14,850,954|42,886,919|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 4. Income statement of the Company for the report period
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|I. Turnover|0|0|
|Less: Operation cost|0|0|
|Business tax and surcharge|||
|Sales expense|||
|Administrative expense|20,510,715|18,694,888|
|Financial expenses|34,643,127|11,269,214|
|Asset impairment loss|1,270|4,078|
|Plus: gains from change of fair value (“-“ for loss)|||
|Investment gains (“-“ for loss)|3,995,656|75,685,182|
|Incl. Investment gains from affiliates|||
|II. Operational profit (“-“ for loss)|-51,159,456|45,717,002|
|Plus: Non business income|717,752|12,285|
|Less: Non-business expenses|2,701,800|2,839|
|Incl. Loss from disposal of non-current assets||2,839|
|III. Total profit (“-“ for loss)|-53,143,504|45,726,448|
|Less: Income tax expenses|||
|IV.Net profit (“-“ for net loss)|-53,143,504|45,726,448|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other misc gains|69,064,515|5,145,207|
|Including: Other comprehensive incomes items that cannot|||
|be reclassified as gains and losses in the subsequent|||
|accounting periods|||
|Other comprehensive incomes items that will be|||
|reclassified as gains and losses in the subsequent|69,064,515|5,145,207|
|accounting periods as relevant requirements are met|||
|VII. Total of integrated income|15,921,011|50,871,655|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 5. Consolidated income statement for Jan.-Sept. 2014
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|I. Total revenue|5,148,947,434|5,651,645,278|
|Incl. Business income|5,148,947,434|5,651,645,278|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|4,681,563,328|4,813,081,700|
|Incl. Business cost|3,855,756,514|3,985,245,701|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy reserves provided|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|24,956,912|35,397,059|
|Sales expense|189,942,902|194,130,191|
|Administrative expense|433,277,674|415,288,040|
|Financial expenses|172,588,729|182,853,289|
|Asset impairment loss|5,040,597|167,420|
|Plus: gains from change of fair value (“-“for loss)|||
|Investment gains (“-“ for loss)|324,518,883|432,000|
|Incl. Investment gains from affiliates|||
|Exchange gains (“-“ for loss)|||
|III. Operational profit (“-“ for loss)|791,902,989|838,995,578|
|Plus: non-operational income|81,428,182|96,501,015|
|Less: non-operational expenditure|5,759,686|8,731,152|
|Incl. Loss from disposal of non-current assets|1,831,564|499,831|
|IV. Total profit (“-“ for loss)|867,571,485|926,765,441|
|Less: Income tax expenses|87,445,381|198,115,399|
|V. Net profit (“-“ for net loss)|780,126,104|728,650,042|
|Including: Net profit realized by the entity taken over|||
|before the takeover|||
|Net profit attributable to the owners of parent company|737,288,641|627,652,415|
|Minor shareholders’ equity|42,837,463|100,997,627|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|VI. Earnings per share:|--|--|
|(I) Basic earnings per share|0.36|0.30|
|(II) Diluted earnings per share|0.36|0.30|
|VII. Other misc. incomes|101,663,642|-3,482,748|
|Including: Other comprehensive incomes items that cannot|||
|be reclassified as gains and losses in the subsequent|||
|accounting periods|||
|Other comprehensive incomes items that will be|||
|reclassified as gains and losses in the subsequent|101,663,642|-3,482,748|
|accounting periods as relevant requirements are met|||
|VIII. Total of misc. incomes|881,789,746|725,167,294|
|Total of misc. incomes attributable to the owners of the|||
||838,952,283|624,169,788|
|parent company|||
|Total misc gains attributable to the minor shareholders|42,837,463|100,997,506|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 6. Income statement of the Company for Jan.-Sept. 2014
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Turnover|0|741,079|
|Less: Operation cost|0|41,575|
|Business tax and surcharge|||
|Sales expense|||
|Administrative expense|63,248,954|41,489,374|
|Financial expenses|89,617,240|28,792,555|
|Asset impairment loss|2,479|-770,213|
|Plus: gains from change of fair value (“-“ for loss)|||
|Investment gains (“-“ for loss)|775,537,902|612,760,982|
|Incl. Investment gains from affiliates|||
|II. Operational profit (“-“ for loss)|622,669,229|543,948,770|
|Plus: Non business income|1,583,968|6,339,325|
|Less: Non-business expenses|2,701,800|6,580|
|Incl. Loss from disposal of non-current assets||6,580|
|III. Total profit (“-“ for loss)|621,551,397|550,281,515|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Less: Income tax expenses|-9,462,390|0|
|IV.Net profit (“-“ for net loss)|631,013,787|550,281,515|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other misc gains|76,623,300|-1,642,620|
|Including: Other comprehensive incomes items that cannot|||
|be reclassified as gains and losses in the subsequent|||
|accounting periods|||
|Other comprehensive incomes items that will be|||
|reclassified as gains and losses in the subsequent|76,623,300|-1,642,620|
|accounting periods as relevant requirements are met|||
|VII. Total of integrated income|707,637,087|548,638,895|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 7. Consolidated cash flow statement for Jan.-Sept. 2014
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
||5,825,485,483|6,441,452,937|
|services|||
|Net increase of customer deposits and capital kept for|||
|brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of trade financial asset disposal|||
|Cash received as interest, processing fee, and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|31,533,095|36,380,170|
|Other cash received from business operation|42,980,209|127,597,354|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Sub-total of cash inflow from business activities|5,899,998,787|6,605,430,461|
|Cash paid for purchasing of merchandise and services|3,578,307,591|3,908,509,052|
|Net increase of client trade and advance|||
|Net increase of savings in central bank and brother|||
|company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|590,090,786|624,712,597|
|Taxes paid|447,023,632|630,278,495|
|Other cash paid for business activities|326,798,515|344,426,757|
|Sub-total of cash outflow from business activities|4,942,220,524|5,507,926,901|
|Cash flow generated by business operation, net|957,778,263|1,097,503,560|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|27,551,490|424,980,000|
|Cash received as investment profit|26,778,821|432,000|
|Net cash retrieved from disposal of fixed assets, intangible|||
||26,296,167|15,845,601|
|assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
||463,160,123|210,000,000|
|operational units|||
|Other investment-related cash received|152,244,310|223,410,169|
|Sub-total of cash inflow due to investment activities|696,030,911|874,667,770|
|Cash paid for construction of fixed assets, intangible assets|||
||1,481,073,373|1,523,354,361|
|and other long-term assets|||
|Cash paid as investment|125,001,894||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational|||
|||39,001,200|
|units|||
|Other cash paid for investment activities|19,223,163|7,000,000|
|Sub-total of cash outflow due to investment activities|1,625,298,430|1,569,355,561|
|Net cash flow generated by investment|-929,267,519|-694,687,791|
|III. Cash flow generated by financing|||
|Cash received as investment|33,636,000|29,011,757|
|Incl. Cash received as investment from minor shareholders|33,636,000|29,011,757|
|Cash received as loans|4,232,426,249|2,420,546,594|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|Cash received from bond placing|||
|Other financing-related cash received|355,928,909|21,963,065|
|Subtotal of cash inflow from financing activities|4,621,991,158|2,471,521,416|
|Cash to repay debts|3,868,101,383|2,119,935,939|
|Cash paid as dividend, profit, or interests|769,783,652|535,919,793|
|Incl. Dividend and profit paid by subsidiaries to minor|||
||55,550,039|145,358,190|
|shareholders|||
|Other cash paid for financing activities|5,095,674|3,227,747|
|Subtotal of cash outflow due to financing activities|4,642,980,709|2,659,083,479|
|Net cash flow generated by financing|-20,989,551|-187,562,063|
|IV. Influence of exchange rate alternation on cash and cash|||
||-811,459|-2,777,444|
|equivalents|||
|V. Net increase of cash and cash equivalents|6,709,734|212,476,262|
|Plus: Balance of cash and cash equivalents at the beginning|||
||276,450,869|447,736,537|
|of term|||
|VI. Balance of cash and cash equivalents at the end of term|283,160,603|660,212,799|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 8. Cash flow statement of the Company for Jan.-Sept. 2014
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
|services|||
|Tax returned|||
|Other cash received from business operation|1,516,991|4,802,370|
|Sub-total of cash inflow from business activities|1,516,991|4,802,370|
|Cash paid for purchasing of merchandise and services|1,500|2,615,637|
|Cash paid to staffs or paid for staffs|55,401,137|14,523,157|
|Taxes paid|17,013,717|277,732|
|Other cash paid for business activities|15,909,895|11,509,008|
|Sub-total of cash outflow from business activities|88,326,249|28,925,534|
|Cash flow generated by business operation, net|-86,809,258|-24,123,164|

CSG HOLDING CO., LTD. The Third Quarter Report 2014
||||
|-|-|-|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving||424,980,000|
|Cash received as investment profit|552,876,473|583,797,208|
|Net cash retrieved from disposal of fixed assets, intangible|||
||294||
|assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
||468,000,000|115,000,000|
|operational units|||
|Other investment-related cash received|240,000|6,317,040|
|Sub-total of cash inflow due to investment activities|1,021,116,767|1,130,094,248|
|Cash paid for construction of fixed assets, intangible assets|||
||544,801|15,321,209|
|and other long-term assets|||
|Cash paid as investment|212,278,929|335,178,626|
|Net cash received from subsidiaries and other operational|||
|||39,001,200|
|units|||
|Other cash paid for investment activities||21,807,800|
|Sub-total of cash outflow due to investment activities|212,823,730|411,308,835|
|Net cash flow generated by investment|808,293,037|718,785,413|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|4,338,944,491|2,314,288,442|
|Cash received from bond placing|||
|Other financing-related cash received|||
|Subtotal of cash inflow from financing activities|4,338,944,491|2,314,288,442|
|Cash to repay debts|3,906,944,491|957,288,442|
|Cash paid as dividend, profit, or interests|676,247,501|316,114,952|
|Other cash paid for financing activities|494,855,576|1,523,064,787|
|Subtotal of cash outflow due to financing activities|5,078,047,568|2,796,468,181|
|Net cash flow generated by financing|-739,103,077|-482,179,739|
|IV. Influence of exchange rate alternation on cash and cash|||
||-82,654|2,218,660|
|equivalents|||
|V. Net increase of cash and cash equivalents|-17,701,952|214,701,170|
|Plus: Balance of cash and cash equivalents at the beginning|||
||129,337,516|139,915,851|
|of term|||
|VI. Balance of cash and cash equivalents at the end of term|111,635,564|354,617,021|

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. The Third Quarter Report 2014 II.Auditor’s Report
Whether the third quarter report was audited or not
□Yes √No
The third quarter report of the Company has not been audited.
Board of Directors of
CSG Holding Co., Ltd.
29 October 2014