CSG HOLDING CO., LTD.
THE FIRST QUARTER REPORT 2018
Chairman of the Board:
CHEN LIN
April 2018
CSG HOLDING CO., LTD. The First Quarter Report 2018 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, individual and/or joint, for the facticity, accuracy and completeness of the whole contents.
All directors were present the meeting of the Board for deliberating the First Quarter Report of the Company in person.
Ms. Chen Lin, Chairman of the Board, Mr. Pan Yonghong, responsible person in charge of the accounting and Ms. Wang Wenxin principal of the financial department (accounting officer) confirm that the Financial Report enclosed in the First Quarter Report 2018 is true, accurate and complete.
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 First Quarter Report 2018 Section II The basic situation of the Company
I. Main accounting data and indices
Whether the company need to retroactively adjust or restate the previous year's accounting data or not
□Yes
√ No
||||||
|-|-|-|-|-|
||The 1st quarter of 2018|The 1st quarter of 2017||Percentage of change (%)|
|Operating income (RMB)|2,629,471,994|2,284,820,940||15.08%|
|Net profit attributable to shareholders of the|159,382,821|170,130,942|||
|||||-6.32%|
|listed company(RMB) [Note (1)]|||||
|Net profit attributable to shareholders of the|||||
|listed company after deducting non-recurring|152,948,714|149,271,133||2.46%|
|gains and losses(RMB) [Note (2)]|||||
|Net cash flow arising from operating|60,223,706|435,937,189|||
|||||-86.19%|
|activities(RMB) [Note (3)]|||||
|Basic earnings per share (RMB/Share)|0.07|0.07||-|
|Diluted earnings per share (RMB/Share)|0.07|0.07||-|
|Weighted average ROE (%)|1.86%|2.15%||-0.29%|
||31 March 2018|31 December 2017||Percentage of change (%)|
|Total assets (RMB)|19,632,309,748|19,535,002,368||0.50%|
|Net assets attributable to shareholder of listed|8,663,648,838|8,458,587,873|||
|||||2.42%|
|company(RMB)|||||
|The total share capital of the company as of the previous trading day of disclosure ( share )|||2,484,147,547||
|Fully diluted earnings per share calculated with latest equity ( RMB/share )|||0.06||

 Note (1): The data in the above table has included equity incentive cost of RMB 47.82 million for the first quarter, which affected the net profit attributable to shareholders of listed companies by RMB 41.17 million. The net profit attributable to the shareholders of the listed company in the first quarter was RMB 200.55 million, with a year-on-year increase of RMB 30.42 million and growth rate of17.88%, without considering the impact of equity incentive cost sharing on the Company's profit of the current period.
Note (2): The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in the first quarter was RMB 194.12 million, with a year-on-year increase of RMB 44.85 million and growth rate of30.05%, without considering the impact of equity incentive cost sharing on the Company's profit of the current period.
Note (3): The net cash flow from operating activities decreased significantly in the first quarter, which was mainly due to the
Company's control of discounted bills to reduce financial expenses, and due to appropriate increase of inventory reserve for the
prices of raw materials and finished product increased.
CSG HOLDING CO., LTD. The First Quarter Report 2018 Items and amounts of extraordinary profit (gains)/losses
√Applicable
□
Not applicable
Unit: RMB
||||
|-|-|-|
||Amount from beginning of the year||
|Item||Note|
||to the end of the report period||
|Gains/losses from the disposal of non-current asset (including the write-off|||
||-1,023,284||
|that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the|||
|subsidy enjoyed in quota or ration according to national standards, which are|8,417,619||
|closely relevant to enterprise’s business)|||
|Other non-operating income and expenditure except for the aforementioned|||
||501,151||
|items|||
|Other gains/losses satisfied definition of extraordinary profit (gains)/loss|-||
|Less: Impact on income tax|1,205,311||
|Impact on minority shareholders’ equity (post-tax)|256,068||
|Total|6,434,107|--|

 During the report period, the Companydidn’t have the case of extraordinary profit (gains)/loss defined as a regular profit and loss project, which was defined and enumerated 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.
II. Total of shareholders at the end of the report period and particulars about the shares held by the top ten shareholders
1. The total number of common shareholders and the number of preference shareholders with voting rights recovered as well as the top ten shareholders
Unit: Share
||||||||||
|-|-|-|-|-|-|-|-|-|
|The total number of common shareholders|||The total number of preference shareholders with voting||||||
|||157,660||||||N/A|
|at the end of the report period|||rights recovered at end of report period (if applicable)||||||
|Particulars about shares held by the top ten shareholders|||||||||
|||||||Amount of|Number of share||
|||||Proportion|||||
||||||Amount of|restricted|pledged/frozen||
|Name of shareholder|Nature of shareholder|||of shares|||||
||||||shares held|shares|Share||
|||||held (%)||||Amount|
|||||||held|status||
|Foresea Life Insurance Co., Ltd. – HailiNiannian|Domestic non state-ownedlegal person|||14.84%|368,685,276|0|||
|Foresea Life Insurance Co., Ltd. –Universal Insurance Products|Domestic non state-ownedlegal person|||3.77%|93,616,606|0|||
|Shenzhen Jushenghua Co., Ltd.|Domestic non state-ownedlegal person|||2.76%|68,484,938|0|||
||||||||Pledged|68,484,915|

CSG HOLDING CO., LTD. The First Quarter Report 2018
|||||||||
|-|-|-|-|-|-|-|-|
|Foresea Life Insurance Co., Ltd. – OwnFund|Domestic non state-ownedlegal person||2.06%||51,197,756|0||
|Central Huijin Asset Management Ltd.|State-owned legal person||1.84%||45,782,995|0||
|China Galaxy International Securities(Hong Kong) Co., Limited|Foreign legal person||1.31%||32,446,143|0||
|China Merchants Securities (HK) Co.,Limited|State-owned legal person||1.05%||26,014,638|0||
|Shenzhen International Holdings (SZ)Limited|Domestic non state-ownedlegal person||0.93%||23,000,000|0||
|VANGUARD EMERGING MARKETSSTOCK INDEX FUND|Foreign legal person||0.61%||15,272,911|0||
|Wang Heng|Domestic natural person||0.61%||15,074,541|0||
|Particulars about the top ten shareholders holding unrestricted shares||||||||
|||Amount of||Type of shares||||
|||unrestricted shares||||||
|Shareholders’ name||||||||
|||held at the end of||Type|||Amount|
|||the period||||||
|Foresea Life Insurance Co., Ltd. – Haili Niannian||368,685,276||RMB ordinary shares|||368,685,276|
|Foresea Life Insurance Co., Ltd. – Universal InsuranceProducts||93,616,606||||||
|||||RMB ordinary shares|||93,616,606|
|Shenzhen Jushenghua Co., Ltd.||68,484,938||RMB ordinary shares|||68,484,938|
|Foresea Life Insurance Co., Ltd. – Own Fund||51,197,756||RMB ordinary shares|||51,197,756|
|Central Huijin Asset Management Ltd.||45,782,995||RMB ordinary shares|||45,782,995|
|China Galaxy International Securities (Hong Kong) Co.,Limited||32,446,143||Domestically listed||||
||||||||32,446,143|
|||||foreign shares||||
|China Merchants Securities (HK) Co., Limited||26,014,638||Domestically listed||||
||||||||26,014,638|
|||||foreign shares||||
|Shenzhen International Holdings (SZ) Limited||23,000,000||RMB ordinary shares|||23,000,000|
|VANGUARD EMERGING MARKETS STOCK INDEXFUND||15,272,911||Domestically listed||||
||||||||15,272,911|
|||||foreign shares||||
|Wang Heng||15,074,541||RMB ordinary shares|||15,074,541|
|||Among shareholders as listed above, Foresea Life Insurance Co.,||||||
|||Ltd.-Haili Niannian, Foresea Life Insurance Co., Ltd.-Universal||||||
|||Insurance Products, Foresea Life Insurance Co., Ltd.-Own Fund are all||||||
|Statement on associated relationship or consistent action||||||||
|||held by Foresea Life Insurance Co., Ltd. Shenzhen Jushenghua Co.,||||||
|among the above shareholders:||||||||
|||Ltd. is a related legal person of Foresea Life Insurance Co., Ltd. and||||||
|||Chengtai Group Co., Ltd., another related legal person of Foresea Life||||||
|||Insurance Co., Ltd, which held 31,769,094 shares via China Galaxy||||||

CSG HOLDING CO., LTD. The First Quarter Report 2018
|||
|-|-|
||International Securities (Hong Kong) Co., Limited.|
||Except for the above-mentioned shareholders, It is unknown whether|
||other shareholders belong to related party or have associated|
||relationship regulated by the Management Regulation of Information|
||Disclosure on Change of Shareholding for Listed Companies.|
|Explanation on shareholders involving margin business (if||
||N/A|
|applicable)||

Whether the top ten common shareholders or the top ten common shareholders holding unrestricted shares had a buy-back agreement dealing in the report period or not
□ Yes√ No
The top ten common shareholders or the top ten common shareholders holding unrestricted shares of the Company had no buy-back agreement dealing in the report period.
2. The total number of preferred shareholders of the company and particulars about the top ten preferred shareholders
□ Applicable√ Not applicable
CSG HOLDING CO., LTD. The First Quarter Report 2018 Section III. Important events
I. Particulars and explanations about significant changes in main accounting statements and financial indices
√Applicable
□
Not applicable
Unit: RMB 0,000
|||||||
|-|-|-|-|-|-|
||Note|31 March 2018|31 December 2017|Amount ofchange|Percentage ofchange|
|Accounts receivable|(1)|85,886|63,824|22,062|35%|
|Long-term prepaid expenses|(2)|1,265|222|1,043|470%|
|Employee compensationpayable|(3)|14,303|27,217|-12,914|-47%|
|Interest payable|(4)|5,325|3,403|1,922|56%|
||Note|Jan.-Mar.2018|Jan.-Mar.2017|Amount ofchange|Percentage ofchange|
|Taxes and surcharges|(5)|3,709|2,724|985|36%|
|Administrative expenses|(6)|25,297|18,838|6,459|34%|
|Financial expenses|(7)|9,215|6,731|2,484|37%|
|Income from disposal ofassets|(8)|-102|-2|-100|5000%|
|Other income|(9)|758|0|758|100%|
|Non-operating income|(10)|220|2,541|-2,321|-91%|
|Non-operating expenses|(11)|86|10|76|760%|
|profit or loss of minorityshareholders|(12)|-36|611|-647|-106%|
|Other comprehensiveincome|(13)|-203|-18|-185|1028%|

Note:
(1) The increase in accounts receivable was mainly due to the increase in accounts receivable of the glass industry and solar energy industry.
(2) The increase in long-term prepaid expenses was mainly due to the increase in land rent for photovoltaic power plant companies. (3) The decrease in employee compensation payable was mainly due to the payment of employee year-end bonuses at the end of last year that had been paid during the report period.
(4) The increase in interest payable was mainly due to the fact that the outstanding interest payment period for the medium-term notes had not been paid.
(5) The increase in taxes and surcharges was mainly due to the increase in sales revenue.
(6) The increase in administrative expenses was mainly due to the increase in the share of equity incentive expenses during the
period.
CSG HOLDING CO., LTD. The First Quarter Report 2018 (7) The increase in financial expenses was mainly due to the increase in interest expenses.
(8) The decrease in income from disposal of assets was mainly due to the loss of non-current assets and the relatively small amount in the previous period.
(9) The increase in other income was mainly due to the reclassification of non-operating income according to the requirements of the accounting standards.
(10) The decrease in non-operating income was mainly due to the reclassification of non-operating income according to the requirements of the accounting standards and the decrease in subsidies received during the current period.
(11) The increase in non-operating expenses was mainly due to a slight increase in the report period and a lower amount in the previous period.
(12) The decrease in profit or loss of minority shareholders was mainly due to the fact that individual subsidiaries were in the process of technological transformation.
(13) The decrease in other comprehensive income was mainly due to the change in the translation difference in foreign currency statements during the report period.
II. The progress of material events and the impact and the analysis of solutions
√Applicable
□
Not applicable
1. Short-term Financing Bills
On December 14, 2016, the second extraordinaryshareholders’ general meeting of 2016 of CSG deliberated and approved the proposal of the offering and registration of short-term financing bills, and agreed theCompany’s registration and issuance of short-term financing bills with a total amount of RMB 2.7 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. However, the term of each issue shall not be longer than one year and the registered quota shall not exceed 40 percent of theCompany’s net assets.
2. Ultra-short-term financing bills
On April 8, 2018, the interim meeting of the eighth session of the Board of Directors of the Company deliberated and approved the proposal of application for registration and issuance of ultra-short-term financing bills with registered capital of RMB 4 billion at most (unlimited on quotas of40% of net assets) and validity within 2 years, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. The issuance interest rate would be determined by the interest rate of the inter-bank bond market at the time of issuance. This proposal needs to be submitted to the shareholders meeting for deliberation.
3. Perpetual bonds
On April 15, 2016, theShareholders’ General Meeting 2015 of CSG deliberated and approved the proposal of application for registration and issuance of perpetual bonds, and agreed the Company to register and issue perpetual bonds with total amount of RMB 3.1 billion which could be issued by stages within period of validity of the registration according to theCompany’s actual demand for funds and the capital status of inter-bank market.
4. Medium-term notes
On 10 December 2014, the First ExtraordinaryShareholders’ General Meeting of 2014 of CSG Holding Co., Ltd deliberated and approved the proposal of application for registration and issuance of medium-term notes with total amount of RMB 1.2 billion at most. On 21 May 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32nd registration
CSG HOLDING CO., LTD. The First Quarter Report 2018 meeting of 2015, in which NAFMII decided to accept the registration of theCompany’s medium term notes, amounting to RMB 1.2 billion and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint lead underwriters of these medium term notes which could be issued by stages within period of validity of the registration. On 10 July 2015, the Company issued the first batch of medium-term notes with total amount of RMB 1.2 billion and valid term of 5 years at the issuance rate of4.94%, which will be redeemed on 14 July 2020.
On April 15, 2016, theShareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for registration and issuance of medium-term notes with total amount of RMB 0.8 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. On 2 March 2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018, in which NAFMII decided to accept the registration of theCompany’s medium-term notes, amounting to RMB 0.8 billion and valid for two years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwriters of these medium-term notes which could be issued by stages within period of validity of the registration.
On May 22, 2017, theShareholders’ General Meeting of 2016 of CSG deliberated and approved the proposal of application for registration and issuance of medium-term notes with total amount of RMB 1 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
III. Failure in due fulfillment of commitments of the actual controllers, shareholders, affiliates, and acquirers of listed company as well as the listed company during the report period
□Applicable√Not applicable
It did not exist that commitments of the actual controllers, shareholders, affiliates, and acquirers of listed company as well as the listed company failed to be fulfilled on time during the report period.
IV. Predict of the business performance from January to June 2018
Warnings and reasons of the predict that the cumulative net profit from the begin of the year to the end of next report period may be loss or have great changes comparing with the same period of last year
□Applicable√ Not applicable
V. Securities Investment
□ Applicable√ Not applicable
There was no securities investment in the report period.
VI. Derivative investment
□ Applicable√ Not applicable
There was no derivative investment in the report period.
VII. Registration form for receiving research, communication and interview in the report period
√Applicable
□
Not applicable
CSG HOLDING CO., LTD. The First Quarter Report 2018
|||||
|-|-|-|-|
|Time|Way|Type|Basic information index of investigation|
||||Details can be found in the Record Chart of the Investor Relation Activity disclosed on|
|2018-1-16|Field research|Institute||
||||Juchao website (www.cninfo.com.cn) on 18 January 2018.|

VIII. Particulars about illegal external guarantee
□ Applicable√Not applicable
The Company had no illegal external guarantee in the report period.
IX. Particulars about non-operating fund of listed company which is occupied by controlling shareholder and its affiliated enterprises
□ Applicable√ Not applicable
CSG HOLDING CO., LTD. The First Quarter Report 2018 Section IV Financial Report
I. Financial Statements
1. Consolidated balance sheet
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|2,417,226,296|2,462,605,764|
|Notes receivable|529,337,608|552,232,420|
|Account receivable|858,861,137|638,238,290|
|Prepayment|150,412,387|143,848,023|
|Other receivables|210,820,896|205,939,019|
|Inventories|788,065,698|685,895,317|
|Assets held for sale|45,983,520|45,983,520|
|Other current asset|191,469,585|200,847,989|
|Total of current asset|5,192,177,127|4,935,590,342|
|Non-current assets|||
|Fixed assets|11,632,606,064|11,540,769,697|
|Construction in process|1,140,876,720|1,417,624,618|
|Intangible assets|1,041,873,932|1,047,222,407|
|R&D expense|65,343,821|61,365,537|
|Goodwill|397,392,156|397,392,156|
|Long-term amortizable expenses|12,648,981|2,223,397|
|Differed income tax asset|88,351,801|80,872,862|
|Other non-current asset|61,039,146|51,941,352|
|Total of non-current assets|14,440,132,621|14,599,412,026|
|Total of assets|19,632,309,748|19,535,002,368|
|Current liabilities|||
|Short-term loans|3,930,709,346|3,704,630,909|
|Notes payable|223,401,622|213,401,622|
|Account payable|1,277,343,644|1,400,166,042|

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|Prepayment received|199,630,879|195,563,465|
|Employees’ wage payable|143,025,625|272,170,660|
|Tax payable|134,423,345|111,996,764|
|Interest payable|53,246,011|34,032,740|
|Other account payable|613,471,404|619,324,354|
|Non-current liability due in 1 year|910,151,548|904,261,397|
|Other current liability|300,000|300,000|
|Total of current liability|7,485,703,424|7,455,847,953|
|Non-current liabilities|||
|Long-term borrowings|1,603,120,000|1,554,120,000|
|Deferred income|982,843,262|1,161,794,247|
|Differed income tax liability|556,131,443|562,701,103|
|Total of non-current liabilities|20,185,848|20,915,954|
|Total of liability|3,162,280,553|3,299,531,304|
|Owners’ equity (or shareholders’ equity)|10,647,983,977|10,755,379,257|
|Long-term borrowings|||
|Capital paid in (or share capital)|2,484,147,547|2,484,147,547|
|Capital reserves|1,354,199,514|1,306,381,765|
|Less: treasury stock|417,349,879|417,349,879|
|Other comprehensive income|-80,064|1,948,943|
|Special reserves|3,114,340|3,224,938|
|Surplus reserves|920,592,332|920,592,332|
|Retained profit|4,319,025,048|4,159,642,227|
|Total of owner’s equity belong to the parent company|8,663,648,838|8,458,587,873|
|Minor shareholders’ equity|320,676,933|321,035,238|
|Total of owners’ equity (or shareholders’ equity)|8,984,325,771|8,779,623,111|
|Total of liability and shareholders’ equity (or owners’|||
||19,632,309,748|19,535,002,368|
|equity)|||

LegalRepresentative：Chen Lin Person in charge of the accountingwork：Pan Yonghong Manager of the financialdepartment： Wang Wenxin
2. Balance Sheet of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|Current asset:|||
|Monetary capital|2,030,239,699|1,681,877,320|
|Prepayment|123,926|146,132|
|Other account receivable|2,561,564,899|2,400,334,816|
|Total of current asset|4,591,928,524|4,082,358,268|
|Non-current assets:|||
|Long-term receivable|1,200,000,000|1,200,000,000|
|Long-term share equity investment|4,827,677,615|4,795,987,652|
|Fixed asset|20,769,982|22,182,246|
|Intangible assets|1,410,968|1,742,109|
|Other non-current assets|2,324,997|2,132,041|
|Total of non-current assets|6,052,183,562|6,022,044,048|
|Total of assets|10,644,112,086|10,104,402,316|
|Current liabilities:|||
|Short-term loans|2,850,000,000|2,600,000,000|
|Account payable|261,024|261,024|
|Employees’ wage payable|16,810,189|40,856,313|
|Tax payable|3,038,359|1,762,580|
|Interest payable|3,957,645|3,090,735|
|Other account payable|1,203,985,265|909,432,991|
|Non-current liability due in 1 year|180,000,000|180,000,000|
|Total of current liability|4,258,052,482|3,735,403,643|
|Non-current liabilities:|||
|Long-term borrowings|1,200,000,000|1,200,000,000|
|Deferred income|186,055,340|186,526,280|
|Total of non-current liabilities|1,386,055,340|1,386,526,280|
|Total of liability|5,644,107,822|5,121,929,923|
|Owners’ equity (or shareholders’ equity):|||
|Capital paid in (or share capital)|2,484,147,547|2,484,147,547|
|Capital reserves|1,499,026,828|1,451,209,079|
|Less: treasury stock|417,349,879|417,349,879|
|Surplus reserves|935,137,692|935,137,692|
|Retained profit|499,042,076|529,327,954|
|Total of owners’ equity (or shareholders’ equity)|5,000,004,264|4,982,472,393|

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|Total of liability and shareholders’ equity (or owners’|||
||10,644,112,086|10,104,402,316|
|equity)|||

3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Total revenue|2,629,471,994|2,284,820,940|
|Incl. Business income|2,629,471,994|2,284,820,940|
|II. Total business cost|2,449,790,563|2,101,721,182|
|Incl. Business cost|1,983,212,565|1,743,968,864|
|Taxes and surcharges|37,091,336|27,235,740|
|Sales expense|79,742,352|70,248,936|
|Administrative expense|252,969,833|188,384,691|
|Financial expenses|92,147,066|67,305,652|
|Asset impairment loss|4,627,411|4,577,299|
|Plus: fair value change income (loss is listed as "-")|-|-|
|Investment gains (“-“ for loss)|-|-|
|Incl. Investment gains from affiliates|-||
|Exchange gains (“-“ for loss)|-|-|
|Gains on disposal of assets (“-“ for loss)|-1,023,284|-20,445|
|Other income|7,579,659|-|
|III. Operational profit (“-“ for loss)|186,237,806|183,079,313|
|Plus: non-operational income|2,200,396|25,412,291|
|Less: non-operational expenses|861,285|100,081|
|IV. Gross profit (“-“ for loss)|187,576,917|208,391,523|
|Less: Income tax expenses|28,552,401|32,150,613|
|V. Net profit (“-“ for net loss)|159,024,516|176,240,910|
|(1) Net profit from continuous operation(“-“ for net loss)|159,024,516|176,240,910|
|(II) Discontinued operating net profit(“-“ for net loss)|-|-|
|Net profit attributable to the owners of parent company|159,382,821|170,130,942|
|Minor shareholders’ equity|-358,305|6,109,968|
|VI. After-tax net amount of other comprehensive incomes|-2,029,007|-178,730|
|After-tax net amount of other comprehensive incomes|||
||-2,029,007|-178,730|
|attributable to owners of the Company|||

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|(I) Other comprehensive incomes that will be reclassified|||
||-2,029,007|-178,730|
|into gains and losses|||
|1. Foreign-currency financial statement translation|||
||-2,029,007|-178,730|
|difference|||
|VII. Total comprehensive incomes|156,995,509|176,062,180|
|Attributable to owners of the Company|157,353,814|169,952,212|
|Attributable to minority shareholders|-358,305|6,109,968|
|VIII. Earnings per share|||
|(I) Basic earnings per share|0.07|0.07|
|(II) Diluted earnings per share|0.07|0.07|

 LegalRepresentative：Chen Lin Person in charge of the accountingwork：Pan Yonghong Manager of the financialdepartment： Wang Wenxin
4. Income Statement of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Revenue|14,497,732|12,712,938|
|Less: Operation cost|-|-|
|Taxes and surcharges|125,403|66,196|
|Sales expense|-|-|
|Administrative expense|36,644,195|29,590,097|
|Financial expenses|8,614,081|2,681,455|
|Asset impairment loss|761|6,418|
|Plus: fair value change income (loss is listed as "-")|-|-|
|Investment gains (“-“ for loss)|-|-|
|Incl. Investment gains from affiliates|-|-|
|Gains on disposal of assets (“-“ for loss)|2,440|-|
|Other income|470,940|-|
|II. Operational profit (“-“ for loss)|-30,413,328|-19,631,228|
|Plus: non-operational income|127,450|382,190|
|Less: non-operational expenses|-|-|
|III. Total profit (“-“ for loss)|-30,285,878|-19,249,038|
|Less: Income tax expenses|-|-|
|IV. Net profit (“-“ for net loss)|-30,285,878|-19,249,038|

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|(I) Net profit from continuous operation(“-“ for net loss)|-30,285,878|-19,249,038|
|(II) Discontinued operating net profit(“-“ for net loss)|-|-|
|V. After-tax net of other comprehensive income|-|-|
|(I) Other comprehensive income that cannot be reclassified||-|
||-||
|into profit or loss in the future|||
|1. The changes in net liabilities or net assets for||-|
||-||
|re-measuring the defined benefit plan|||
|2. Shares in other comprehensive income that cannot be||-|
|reclassified into profit or loss by the investee under the|-||
|equity method|||
|(II) Other comprehensive income that will be reclassified|||
||-|-|
|into profit or loss in the future|||
|1. Shares in other comprehensive income that will be|||
|reclassified into profit or loss after the investee in the equity|-|-|
|method|||
|2. Changes in fair value of available-for-sale financial|||
||-|-|
|assets|||
|3. Held-to-maturity investments reclassified as|||
||-|-|
|available-for-sale financial assets gains and losses|||
|4. The effective part of the cash flow hedge profit and loss|-|-|
|5. Translation differences in foreign currency financial|||
||-|-|
|statements|||
|6. Others|-|-|
|VI. Total comprehensive incomes|-30,285,878|-19,249,038|
|VII. Earnings per share|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
||2,585,745,573|2,374,403,974|
|services|||
|Tax returned|8,714,717|2,699,605|
|Other cash received from business operation|19,321,411|62,798,493|

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|Sub-total of cash inflow from business activities|2,613,781,701|2,439,902,072|
|Cash paid for purchasing of merchandise and services|1,794,681,827|1,378,088,648|
|Cash paid to staffs or paid for staffs|421,471,968|342,138,239|
|Taxes paid|182,508,067|153,306,069|
|Other cash paid for business activities|154,896,133|130,431,927|
|Sub-total of cash outflow from business activities|2,553,557,995|2,003,964,883|
|Cash flow generated by business operation, net|60,223,706|435,937,189|
|II. Cash flow generated by investing|||
|Net cash retrieved from disposal of fixed assets, intangible|||
||1,772,886|24,000|
|assets, and other long-term assets|||
|Other investment-related cash received|3,249,483|11,233,893|
|Sub-total of cash inflow due to investment activities|5,022,369|11,257,893|
|Cash paid for construction of fixed assets, intangible assets|||
||112,300,336|352,700,579|
|and other long-term assets|||
|Other cash paid for investment activities|14,102,400|22,216,688|
|Sub-total of cash outflow due to investment activities|126,402,736|374,917,267|
|Net cash flow generated by investment|-121,380,367|-363,659,374|
|III. Cash flow generated by financing|||
|Cash received as investment|-|-|
|Incl. Cash received as investment from minor shareholders|-|-|
|Cash received as loans|850,600,000|1,001,419,750|
|Other financing-related cash received|303,833|705,538,631|
|Subtotal of cash inflow from financing activities|850,903,833|1,706,958,381|
|Cash to repay debts|545,750,000|1,532,500,773|
|Cash paid as dividend, profit, or interests|81,914,082|59,613,453|
|Incl. Dividend and profit paid by subsidiaries to minor|||
||-|-|
|shareholders|||
|Other cash paid for financing activities|213,115,386|2,438,868|
|Subtotal of cash outflow due to financing activities|840,779,468|1,594,553,094|
|Net cash flow generated by financing|10,124,365|112,405,287|
|IV. Influence of exchange rate alternation on cash and cash|||
||-4,370,245|-200,416|
|equivalents|||
|V. Net increase of cash and cash equivalents|-55,402,541|184,482,686|
|Plus: Balance of cash and cash equivalents at the beginning|||
||2,459,753,165|584,566,990|
|of term|||

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|VI. Balance of cash and cash equivalents at the end of term|2,404,350,624|769,049,676|

 6. Cash Flow Statement of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
||-|-|
|services|||
|Tax returned|-|-|
|Other cash received from business operation|10,761,525|7,356,851|
|Sub-total of cash inflow from business activities|10,761,525|7,356,851|
|Cash paid for purchasing of merchandise and services|-|-|
|Cash paid to staffs or paid for staffs|38,812,139|21,682,567|
|Taxes paid|701,230|549,105|
|Other cash paid for business activities|4,822,289|5,134,287|
|Sub-total of cash outflow from business activities|44,335,658|27,365,959|
|Cash flow generated by business operation, net|-33,574,133|-20,009,108|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|-|-|
|Cash received as investment profit|-|-|
|Net cash retrieved from disposal of fixed assets, intangible|||
||2,440|-|
|assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or other|||
||-|-|
|operational units|||
|Other investment-related cash received|-|-|
|Sub-total of cash inflow due to investment activities|2,440||
|Cash paid for construction of fixed assets, intangible assets|||
||262,260|84,773|
|and other long-term assets|||
|Cash paid as investment|-|-|
|Net cash received from subsidiaries and other operational|||
||-|-|
|units|||
|Other cash paid for investment activities|-|-|
|Sub-total of cash outflow due to investment activities|262,260|84,773|
|Net cash flow generated by investment|-259,820|-84,773|
|III. Cash flow generated by financing|||

CSG HOLDING CO., LTD. The First Quarter Report 2018
||||
|-|-|-|
|Cash received as investment|-|-|
|Cash received as loans|500,000,000|500,693,638|
|Cash received from bond placing|-|-|
|Other financing-related cash received|152,171,097|1,025,642,490|
|Subtotal of cash inflow from financing activities|652,171,097|1,526,336,128|
|Cash to repay debts|250,000,000|1,396,723,365|
|Cash paid as dividend, profit, or interests|19,945,850|2,213,425|
|Other cash paid for financing activities|-|-|
|Subtotal of cash outflow due to financing activities|269,945,850|1,398,936,790|
|Net cash flow generated by financing|382,225,247|127,399,338|
|IV. Influence of exchange rate alternation on cash and cash|||
||-33,040|863,120|
|equivalents|||
|V. Net increase of cash and cash equivalents|348,358,254|108,168,577|
|Plus: Balance of cash and cash equivalents at the beginning|||
||1,680,672,390|301,637,933|
|of term|||
|VI. Balance of cash and cash equivalents at the end of term|2,029,030,644|409,806,510|

 II. Report of the Auditors
Whether the First Quarter Report has been audited or not
□ Yes√ No
The First Quarter Reporthasn’t been audited.
Board of Directors of
CSG Holding Co., Ltd.
28 April 2018