CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2014 Chairman of the Board:
ZENG NAN
August 2014
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section I Important Notice, Contents and Paraphrase
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 reality, accuracy and completion of the whole contents.
Except for the follow directors, others are present the meeting of the Board for deliberating the semi-annual report of the Company in person.
|||||
|-|-|-|-|
|Name of director absent|Position|Reason for absence|Name of authorized director|
|Yan Ganggang|Director|On business|Chen Chao|

The Company has no plans of cash dividend distribution, bonus shares being sent and converting capital reserve into share capital.
Mr. Zeng Nan, Chairman of the Board, CFO Mr. Luo Youming and principle of the financial department Mr. Zhang Guoming confirm that the Financial Report enclosed in this Semi-annual Report is true and complete.
Regarding to the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors. Investors are advised to exercise caution of investment risks.
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. SEMI-ANNUAL REPORT 2014 Contents
Section I Important Notice, Contents and Paraphrase .............................................. 1 Section II Company profile ..................................................................................... 4 Section III Accounting data and summary of financial indexes ............................... 6 Section IV Report of the Board of Directors ............................................................ 8 Section V Important Events ................................................................................... 19 Section VI. Changes in Shares and Particulars about Shareholders ....................... 25 Section VII. Particulars about Directors, Supervisors and Senior Executives ........ 29 Section VIII . Financial Report ................................................................................. 30 Section IX. Documents available for Reference ..................................................... 110
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Paraphrase
||||
|-|-|-|
|Items|Refers to|Contents|
|Company, the Company, SG or the Group|Refers to|CSG Holding Co., Ltd.|
|Ultra-thin electronic glass|Refers to|The electronic glass with thickness between 0.1~1.1mm|
|Second-generation energy-saving glass|Refers to|Double silver coated glass|
|Third-generation energy-saving glass|Refers to|Triple Silver coated glass|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section II Company profile
I. Company information
|||||
|-|-|-|-|
|Short form for share|Southern Glass A、Southern Glass B|Code for share|000012、200012|
|Listing stock exchange|Shenzhen Stock Exchange|||
|Legal Chinese name of the Company|中国南玻集团股份有限公司|||
|Abbr. of legal Chinese name of the Company|南玻集团|||
|Legal English name of the Company|CSG Holding Co., Ltd.|||
|Abbr. of legal English name of the Company|CSG|||
|Legal Representative|Zeng Nan|||

II. Person/Way to contact
||||
|-|-|-|
||Secretary of the Board|Rep. of security affairs|
|||Li Tao|
|Name|Zhou Hong||
|||CSG Building, No.1 of the 6th Industrial Road,|
||CSG Building, No.1 of the 6th Industrial Road,||
|Contacts add.|||
||Shekou, Shenzhen, P. R.C.|Shekou, Shenzhen, P. R.C.|
|||(86)755-26860666|
|Tel.|(86)755-26860666||
|||(86)755-26692755|
|Fax.|(86)755-26692755||
|||securities@csgholding.com|
|E-mail|securities@csgholding.com||

III. Other information
1. Way of contact
Whether registrations address, offices address and post code as well as website and email of the Company changed in reporting period or not
□ Applicable√Not applicable
Registrations address, offices address and post code as well as website and email of the Company have no change in reporting period, found more details in Annual Report 2013.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in reporting period or not
□ Applicable√ Not applicable
The newspaper appointed for information disclosure, website for semi-annual report publish appointed by CSRC and preparation
place for semi-annual report have no change in reporting period, found more details in Annual Report 2013.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 3. Registration changes of the Company
Whether registration has changed in reporting period or not
□ Applicable√ Not applicable
Date/place for registration of the Company, registration number for enterprise legal license, number of taxation registration and organization code have no change in reporting period, found more details in Annual Report 2013.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section III Accounting data and summary of financial indexes I. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not
□Yes
√ No
|||||
|-|-|-|-|
||The report period|The same period|Increase/decrease in this|
||(Jan. to Jun.2014)|of last year|report period year-on-year (%)|
|Operating income (RMB)|3,262,681,672|3,536,965,783|-7.75%|
|Net profit attributable to shareholders of the listed|589,210,439|353,719,746||
||||66.58%|
|company(RMB)||||
|Net profit attributable to shareholders of the listed company||||
||242,934,925|323,142,979|-24.82%|
|after deducting non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating activities(RMB)|580,928,207|707,258,712|-17.86%|
|Basic earnings per share (RMB/Share)|0.28|0.17|64.71%|
|Diluted earnings per share (RMB/Share)|0.28|0.17|64.71%|
|Weighted average ROE (%)|7.38%|5.10%|2.28%|
||||Increase/decrease in this|
||End of this period|End of last year|period-end over same period of|
||||last year-end (%)|
|Total assets (RMB)|14,796,960,553|15,078,866,777|-1.87%|
|Net assets attributable to shareholder of listed company|8,019,143,515|8,047,894,139||
||||-0.36%|
|(RMB)||||

II. Items and amounts of extraordinary profit (gains)/loss
√Applicable
□
Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the write-off that|-826,437||
|accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the subsidy|44,447,997||
|enjoyed in quota or ration according to national standards, which are closely|||
|relevant to enterprise’s business)|||
|Gains on disposal of available-for-sale financial assets, gains and losses from|108,000||
|change of fair values of held-for-transaction financial assets and financial liabilities|||
|except for the effective hedge business related to normal business of the Company,|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|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|12,061,958||
|Other item that satisfied the definition of non-recurring gains and losses|308,895,397||
|Less:Impact on income tax|12,081,899||
|Impact on minority shareholders’ equity (post-tax)|6,329,502||
|Total|346,275,514|--|

 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 involved||
|Item||Reasons|
||(RMB)||
|Other item that satisfied the||It was mainly due to the Company sold 100% equity of Shenzhen CSG|
|definition of non-recurring gains|308,895,397|Float Glass Co., Ltd. and the added value amortization of remaining|
|and losses||equity of Shenzhen CSG Display Technology Co., Ltd.|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section IV Report of the Board of Directors
I. Introduction
In the first half year of 2014, the global economies still moved forward slowly. The economic recovery was still rough due to lots of uncertain factors, though the economy of advanced economies headed by America showed a sign of slow recovery. Being influenced by many factors, such as real estate industry adjustment, structural transformation of economy, insufficient demand as well as over capacity, relevant industries in China moved downward obviously, and the market environment for entity economies became extremely severe. Confronting the ups and downs of economic environment, the Company made full use of its own advantages, responded actively to the adverse impact from market environment. Meanwhile, the Company continued to optimize mechanism ofR&D innovation, enhance construction ofR&D system and ability, increase input forR&D, further deepen differentiation strategies with technological innovation and management innovation, and consolidate the foundation of fine management. In the first half year of 2014, CSG implemented operating income of RMB 3,263 million and net profit of RMB 589 million (already deducted minority shareholders profit and loss), a year-on-year growth of66.58%. After deducting non-recurring gains/losses, CSG gained net profit of RMB 243 million, among which RMB 64.96 million decreased due to shares of the fine glass held by CSG reduced and the profit of fine glass industry declined as well.
Affected by adjustment of real estate and over capacity in the first half year of 2014, float glass industry suffered a greater impact. As the price of float glass keeping downside and the cost of soda ash and gas retaining upside, the pressure on float industry became more and more intensified and the whole industry was in the state of poor performance. To cope with unfavorable market environment, flat glass division of the Company continued to reinforce cost control, energy-saving and consumption-reducing, and greatly promote the manufacture and sales of differentiated goods and high-grade products. In the first half year, flat glass division achieved revenue of RMB 1,847 million with a year-on-year growth of3.1%, and profit of RMB 150 million with a slight decline year-on-year.
In the first half year of 2014, there was a slowdown in market demand of architectural glass due to adjustment of real estate market, meanwhile, as homogeneous competition intensified, sales and profit of conventional products were affected. Architectural glass division of the Company maintained stable through strengthening management and proactively promoting the sales of differentiate goods, such as double-silver and triple-silver products. In the first half year, architectural glass division gained revenue of RMB 1,420 million with a year-on-year growth of15.64% and net profit of RMB 237 million with a year-on-year growth of25.95%. In the first half year of 2014, PV market was still in its slump under double pressure of over capacity and trade protection from Europe& America. In order to cope with severe market surrounding, the Company conducted a comprehensive transformation of polysilicon production line in order to greatly lower the production cost and improve the competitiveness of products. Polysilicon production line has entered the commercial operation so far, and achieved earnings already. In the first half year, PV industry realized revenue of RMB 405 million with deficit of RMB 2.92 million, and reduced losses of RMB 6.50 million compared with the same period of last year.
II. Main business analysis
Year-on-year changes of main financial data
Unit: RMB
|||||
|-|-|-|-|
|The current|The same term|Increase /decrease|Reasons of change|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||
|-|-|-|-|-|
||term|of last year|year-on-year（%）||
||3,262,681,672|3,536,965,783||Mainly because Shenzhen CSG Display was excluded|
|Business income|||-7.75%|in the consolidation scope of the Group due to part of|
|||||the equity was sold at the end of last year|
||2,438,593,004|2,514,678,053||Mainly because Shenzhen CSG Display was excluded|
|Business cost|||-3.03%|in the consolidation scope of the Group due to part of|
|||||the equity was sold at the end of last year|
||114,315,080|127,942,744||Mainly because Shenzhen CSG Display was excluded|
|||||in the consolidation scope of the Group due to part of|
|||||the equity was sold at the end of last year, more water|
|Sales expense|||-10.65%||
|||||transport with lower rates adopted by Dongguan Solar|
|||||Energy and travelling expenses from architectural|
|||||business division decreased|
||280,194,020|264,014,052||Mainly because expenses of R&D as well as the|
|||||performance reward fund increased y-o-y and the|
|Administrative expense|||6.13%|amount of depreciation increased resulted from|
|||||accounting estimation changes for fixed assets in the|
|||||fourth quarter of last year.|
||109,025,628|119,638,263||Mainly because Shenzhen CSG Display was excluded|
|||||in the consolidation scope of the Group due to part of|
|Financial expense|||-8.87%|the equity was sold at the end of last year and interest|
|||||expenditure declined due to the decreasing borrowing|
|||||balance.|
||60,997,406|113,728,215||Mainly because Shenzhen CSG Display was excluded|
|||||in the consolidation scope of the Group due to part of|
|Income tax expense|||-46.37%|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.|
||94,805,902|78,002,898||Increase of R&D expenditure was mainly due to more|
|R&D expenditure|||21.54%||
|||||investment in R&D in this year.|
||580,928,207|707,258,712||Mainly because Shenzhen CSG Display was excluded|
|Net cash flow from|||||
||||-17.86%|in the consolidation scope of the Group due to part of|
|operating activities|||||
|||||the equity was sold at the end of last year.|
|Net cash flows from|-487,610,199|-903,620,816||Mainly because payment for equity transfer of|
||||--||
|investing activities||||Shenzhen Float was received in the report period.|
|Net cash flows from|-83,633,764|124,518,002||Mainly because the dividends paid increased|
||||--||
|financing activities||||year-on-year.|
|Net increase of cash and|10,084,575|-74,605,106||Mainly because the net cash out-flow arising from|
||||--||
|cash equivalents||||investment activities decreased|

Major changes on profit composition or profit resources in the report period
√Applicable□ Not applicable
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Mainly because the transfer procedure of100% equity of Shenzhen CSG Float Glass Co., Ltd. had completed, and earnings of RMB 311.25 million was included in the report period.
Future development and planning extended to the report period which was published in disclosure documents such as prospectus, placement instructions and assets reorganization report
□ Applicable√ Not applicable
There was no future development or planning extended to the report period which was published in disclosure documents such as prospectus, placement instructions and assets reorganization report.
Review on the previous business plan and its progress during the report period
During the report period, the Company launched the business plan smoothly:
① In the first half year, both sales and profit of architectural glass business achieved a year-on-year growth, and PV business also made progress in reducing deficit. In aspect of flat glass business, ultra-thin glass and solar glass earned a certain growth. However, influenced by over capacity and insufficient demand in float industry, profit from flat glass business declined year-on-year. In aspect of construction, Chengdu architectural glass expansion project advanced as planned, Dongguan online coating project officially started, and Qingyuan high-performance ultra-thin glass project started full swing. At the same time, Yichang ultra-thin glass project was completed and ignited in February 2014 and entered into trial production, and Wujiang solar glass project had entered into the stage of trial production. Technical transformation of polysilicon had been completed and entered into commercial operation.②The Company constantly took the route of differential operation and industry upgrading relying onR&D and technology innovation, and continued to strengthenR&D system and construction ofR&D ability. Totally 40 patent applications were submitted by the Company in the first half year, and 21 new patent applications were granted. As a breakthrough of traditional industry, product quality and Yield of ultra-thin glass have reached the domestic advanced level. Meanwhile, solar glass successfully trial-produced glass sheet of 2mm, and it will enhance anti-risk capability of the Company. The Company continued to promote the sales of wide flat coated glass, second-generation and third- generation energy-saving glass. The sales of second-generation energy-saving glass were over60% in theCompany’s coated insulating glass. In the field of PV, production costs of polysilicon dropped significantly after technical transformation and upgrading, and therefore comprehensive anti-risk ability of PV industry improved.
③ In the first half year, the Company fully tapped the potentials of energy saving in the production process while effectively improved capacity utilization, and further strengthened integrated management of energy. PV power generation and waste heat power generation amounted to approximately 97 million degrees, reducing cost of electricity of nearly RMB 55 million.
④The Company insisted on steady financial policy and improved the efficiency of funds use. The financial risk prevention capacity in the first half year had been further consolidated. TheCompany’s accounts receivable turnover period was 11 days, less 8 days year-on-year, and inventory turnover period was 30 days, flat year-on-year.
⑤The Company has obtained certain achievement in human resources management and internal control construction. In human resources management, the Company attached great importance to the stability of staff team, and opened channels for promoting professional and technical personnel. Meanwhile, the Company reduced human cost, improved management efficiency and work efficiency via employee downsizing. In the aspect of internal control construction, the Company constantly strengthened the implementation of internal control system through strict appraisal, and constantly perfected internal control system via analyzing and solving problems encountered during the implementation.
III. Composition of main business
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Operating|Operating cost|Gross profit ratio|Increase/decrease|Increase/decrease|Increase/decrease|
|revenue||(%)|of operating|of operating cost|of gross profit|
||||revenue y-o-y|y-o-y (%)|ratio y-o-y (%)|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||
|-|-|-|-|-|-|-|
|||||(%)|||
|According to industries|||||||
|Flat glass|1,825,845,072|1,525,918,567|16.43%|2.31%|8.39%|-4.69%|
|Architectural|||||||
||1,407,038,222|964,415,998|31.46%|15.27%|16.50%|-0.72%|
|glass|||||||
|Solar energy|397,771,248|339,993,538|14.53%|-14.23%|-15.60%|1.39%|
|Off-setting||||--|--|--|
||||--||||
|between divisions|-408,942,973|-411,376,355|||||
|According to products|||||||
|Flat glass|1,825,845,072|1,525,918,567|16.43%|2.31%|8.39%|-4.69%|
|Architectural|||||||
||1,407,038,222|964,415,998|31.46%|15.27%|16.50%|-0.72%|
|glass|||||||
|Solar energy|397,771,248|339,993,538|14.53%|-14.23%|-15.60%|1.39%|
|Off-setting|||||||
||||--|--|--|--|
|between divisions|-408,942,973|-411,376,355|||||
|According to regions|||||||
|Mainland China|2,899,041,165|2,193,112,046|24.35%|-2.25%|3.32%|-4.08%|
|H.K. China|34,873,594|21,621,628|38%|-77.04%|-76.49%|-1.45%|
|Europe|87,392,381|68,040,061|22.14%|-55.44%|-57.80%|4.35%|
|Asia (excluding|||||||
|Mainland China|117,272,638|80,049,856|31.74%|-4.50%|-7.32%|2.08%|
|and H.K.)|||||||
|North America|33,917,410|21,659,532|36.14%|58.07%|42.09%|7.18%|
|Australia|46,764,284|32,558,267|30.38%|38.06%|46.64%|-4.07%|
|Other region|2,450,097|1,910,358|22.03%|-58.46%|-54.57%|-6.68%|

 IV. Core Competitiveness Analysis
① The Company currently has created complete industrial chains in every industry with the advantage of industrial supplement. In glass industry, the Company has built the industry chain as quartz sand→ high quality float glass→ architectural energy-saving glass. In the solar energy industry, the Company has finished the comprehensive construction of industry chain from high purity polycrystalline silicon materials, silicon wafer processing to cell and modules, photovoltaic rolled glass, etc. With the improvement of technology in the chains, the industrial advantages emerged.
② The Company possesses a complete industry layout. At present, the Company has established large production bases in China located in North, East, West, South and Central region, which help the Company be better close to the market and serve the market.③ The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of
high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The
Company also keeps itsR&D and production of energy-saving glass in line with the world advanced level, and makes its technique and
technology in the field of solar energy leading domestic market.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014④The Company possesses high anti-risk capability. It has a perfect internal control system with sound performance carried out. Meanwhile, the management and control ability of account receivable and inventory stands in a high level within the industry.⑤ CSG's core competitiveness also comes from the aggressive, innovative, professional, experienced management team and technical backbone team. Based on the perfect corporate governance structure, standardized management system and business philosophy of high-end product line and quality consciousness, the Company constantly formulates mechanism and strictly controls the operating risk, laying a solid foundation forcompany’s rapid sustainable development.
During the reporting period, the Company's core competitiveness remains strong
V. Investment analysis
1. External equity investment
1. External investment
√ Applicable□Not applicable
||||
|-|-|-|
|external investment|||
||Amount invested in the same period of last||
|Amount invested in the report period (RMB)||Changes|
||year (RMB)||
|23,000,000|23,000,000|0|
|Invested company|||
|||Equity proportion of listed company|
|Name|Main business||
|||in invested company (%)|
|Guangdong Golden Glass Technologies Limited|R & D, production and sales of special glass|8.33%|

 2. Main subsidiaries and joint-stock companies
√ Applicable□Not applicable
Particular about main subsidiaries and joint-stock companies
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company|Type|Industries|Main products or|Register|Total assets|Net Assets|Operating|Operating|Net profit|
|name|||service|capital|(RMB)|(RMB)|revenue|profit|(RMB)|
||||||||(RMB)|(RMB)||
|Chengdu CSG|Subsidiary|Manufacturing|Development,|||||||
|Glass Co., Ltd.|||manufacture and sales|166,660,000|946,503,940|327,763,928|481,361,347|42,714,333|35,165,742|
||||of vary special glass|||||||
|Hebei CSG|Subsidiary|Manufacturing|Manufacture and sales|||||||
|||||USD||||||
|Glass Co., Ltd.|||of vary special float||770,232,634|398,584,865|280,358,459|10,848,770|8,834,765|
|||||48,060,000||||||
||||glass|||||||
|Wujiang CSG|Subsidiary|Manufacturing|Manufacture and sales|||||||
|Glass Co., Ltd.|||of vary special float|465,040,000|1,648,857,828|561,335,087|326,459,576|18,552,621|16,749,134|
||||glass|||||||
|Xianning CSG|Subsidiary|Manufacturing|Development,|235,000,000|752,225,465|256,255,352|343,520,520|-1,782,225|12,610,252|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Glass Co., Ltd.|||manufacture and sales|||||||
||||of special float glass|||||||
|Qingyuan CSG|Subsidiary|Manufacturing|R&D, manufacture|||||||
|Energy|||and sales of non-metal|||||||
|Conservation|||mineral products and|300,000,000|291,633,074|284,870,305|0|-4,901,598|-3,676,198|
|New-materials|||materials|||||||
|Co., Ltd.||||||||||
|Hebei Panel|Subsidiary|Manufacturing|Manufacture and sales|||||||
|Glass Co., Ltd.|||of varied ultra-thin|243,000,000|377,676,627|273,146,098|76,972,021|26,355,700|26,472,054|
||||electronic glass|||||||
|Yichang|Subsidiary|Manufacturing|R&D, manufacture|||||||
|Nanbo|||and sales of varied|||||||
|||||200,000,000|411,361,553|220,442,245|1,608,439|-2,591,732|-1,941,673|
|Photoelectric|||ultra-thin electronic|||||||
|Glass Co., Ltd.|||glass|||||||
|Dongguan|Subsidiary|Manufacturing|Dongguan CSG Solar|||||||
|CSG Solar|||Glass Co., Ltd.|416,000,000|1,037,106,701|440,003,521|322,803,468|68,636,171|59,280,470|
|Glass Co., Ltd.||||||||||
|Jiangyou CSG|Subsidiary|Manufacturing|Manufacture and sales|||||||
|Mining|||of silica sand and|||||||
|||||40,000,000|179,681,500|15,327,860|34,767,309|-3,300,070|-2,475,052|
|Development|||co-product|||||||
|Co., Ltd.||||||||||
|Tianjin CSG|Subsidiary|Manufacturing|Deep processing of|||||||
|Architectural|||glass|178,000,000|438,568,294|283,238,684|215,138,163|19,886,415|20,699,075|
|Glass Co., Ltd.||||||||||
|Tianjin CSG|Subsidiary|Manufacturing|Development,|||||||
|Energy|||producing and sales of|||||||
|||||128,000,000|355,460,534|220,266,316|243,776,316|37,081,033|35,376,671|
|Conservation|||energy-saving special|||||||
|Glass Co., Ltd|||glass|||||||
|Dongguan|Subsidiary|Manufacturing|Deep processing of|||||||
|CSG|||glass|||||||
|||||240,000,000|938,876,187|374,246,524|406,260,292|66,465,306|58,378,262|
|Architectural||||||||||
|Glass Co., Ltd.||||||||||
|Wujiang CSG|Subsidiary|Manufacturing|Deep processing of|||||||
|East China|||glass|||||||
|||||320,000,000|727,622,305|441,285,190|346,649,654|66,353,718|57,376,376|
|Architectural||||||||||
|Glass Co., Ltd.||||||||||
|Xianning CSG|Subsidiary|Manufacturing|Deep processing of|||||||
|Energy|||glass|||||||
|||||165,000,000|655,209,856|204,267,350|113,942,677|17,052,791|19,926,235|
|Conservation||||||||||
|Glass Co., Ltd||||||||||
|Xianning CSG|Subsidiary|Manufacturing|Deep processing of|80,000,000|583,164,133|147,609,326|230,935,562|46,993,524|39,679,134|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Energy-Saving|||glass|||||||
|Glass Co., Ltd||||||||||
|CSG (Hong|Subsidiary|Trading|Glass trading and|HKD||||||
||||||943,452,402|834,541,334|99,635,739|90,426,779|84,288,952|
|Kong) Limited|||investment holding|86,440,000||||||
|CSG|Subsidiary|Trading|Glass trading|||||||
|(Australia)||||AUD 500,000|18,129,670|5,243,766|26,764,284|3,310,900|2,317,630|
|Limited||||||||||
|Yichang CSG|Subsidiary|Manufacturing|Manufacture and sales|||||||
|Polysilicon|||of high purity silicon|1,467,980,000|2,969,180,756|888,232,303|236,373,886|-14,582,799|-9,696,357|
|Co., Ltd.|||material products|||||||
|Dongguan|Subsidiary|Manufacturing|Manufacture and sales|||||||
|CSG PV-tech|||of solar cells|516,000,000|827,988,452|317,431,504|178,972,083|1,511,592|6,776,733|
|Co., Ltd.||||||||||
|Shenzhen CSG||||||||||
||||Manufacture and sales|||||||
|Display|Joint-stock|||||||||
|||Manufacturing|of display device|143,000,000|1,540,983,231|846,536,524|302,446,982|191,905,216|154,510,001|
|Technology|company|||||||||
||||products|||||||
|Co., Ltd.||||||||||

3. Major investment with non-raised proceeds
√ Applicable□Not applicable
Unit:RMB’0,000
|||||||
|-|-|-|-|-|-|
|Project|Planned|Amount|Accumulativ|Progress of project(expected to finished from 2013-2015)|Returns|
||investment|invested in|e amount||from|
||amount|the report|actually||project|
|||period|invested|||
||||ended as|||
||||period-end|||
|||||Planning to build production lines for 1.2 million square|In the|
|||||meters of coated insulating glass, 3 million square meters of|report|
|||||wide flat coated glass and energy-saving glass substrate|period, part|
|||||production line in Changjiang Industry Park of Xianning|of the|
|||||Economic Development Zone, Hubei. At present, line-1 and|project has|
|Xianning CSG||||||
||108,670|12,829|100,356|line 2 of energy-saving glass substrate ignited respectively|been|
|project||||||
|||||in April and June, 2013. 1.2 million square meters of coated|completed,|
|||||insulating glass production line has been put into operation|and the net|
|||||at the end of the first quarter. 3 million square meters of|profit was|
|||||wide flat coated glass production line has been in process of|32.54|
|||||debugging of equipment.|million.|
|||||Planning to increase two coating glass production lines and|In the|
|Expansion on|47,913|0|21,239|||
|||||support insulating glass capacity. When the project|report|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||
|-|-|-|-|-|-|
|energy-saving glass||||completed, the capacities of wide flat coated products will|period, part|
|capacity of Wujiang||||add 3 million square meters, and capacity of coated|of the|
|Projects||||insulating glass will add 1.2 million square meters every|project has|
|||||year. Among this, the wide flat coated glass line of 3|been|
|||||million square meters has been completed, and the others|completed|
|||||will be invested according to market situations.|and the|
||||||revenue|
||||||was not|
||||||calculated|
||||||individually|
||||||.|
|||||Planning to build a wide flat coated glass production line.|In the|
|||||When the project is completed, the annual deep-processing|report|
|Expansion on||||||
|||||capacities of the wide flat coated products will reach|period, the|
|energy-saving glass||||||
||19,835|15,383|16,631|3million square meters. It is estimated that the project will|project is|
|capacity of Chengdu||||||
|||||be completed and put into operation in the end of 2014.|still in|
|project||||||
||||||constructio|
||||||n.|
|||||Planning to implement cold hydrogenation and distillation|The project|
|||||system on production line of polysilicon, technological|entered into|
|Polysilicon cold||||||
|||||transformation on giant energy-saving reduction furnace|commercial|
|hydrogenation,||||and new-type CDI tail recovery treatment system, reduce|operation|
|technological||||material consumption, power consumption and steam|with profit|
|transformation||||consumption substantially so that the cost will be reduced|of RMB|
||59,616|4,710|58,027|||
|project of||||with more capacity obtained. This project has completed|4.24|
|distillation system,||||basically and will be put into operation in the third quarter.|million|
|reduction furnace||||The project had been completed and entered into|earned in|
|and CDI system||||commercial operation.|the|
||||||operation|
||||||month.|
|||||Planning to build a ultra-thin electronic glass production||
||||||At present,|
|Yichang CSG||||||
|||||line with capacity of 240T/D, the production line uses||
||||||there’s no|
|ultra-thin electronic|32,000|9,046|30,151|natural gas as fuel and adopts float process to produce||
||||||profit from|
|glass project||||0.7~1.1mm ultra-thin glass. The project was ignited in||
||||||the project.|
|||||February 2014 .It is in trial production currently.||
|||||Planning to build a high-performance ultra-thin electronic|Project still|
|Qingyuan||||glass production line with monthly capacity of|in|
|high-performance||||approximately one million square meters in Qingyuan. The|constructio|
||47,166|8,737|11,630|||
|ultra-thin electronic||||production line adopts CSG’s unique technology to produce|n in the|
|glass project||||0.55mm~1.1mm higher performance ultra-thin electronic|report|
|||||glass. The project will be completed at the end of 2014.|period.|
|||||Being considered all factors and matching the terminal|At present,|
|Wujiang CSG PV|57,980|10,410|49,403|||
|||||market, removed Heyuan CSG PV glass project to Wujiang|there’s no|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||
|-|-|-|-|-|-|
|Glass project||||to build a production line for PV rolled glass with capacity|profit from|
|||||of 650 tons per day and a tempering deep processing|the project.|
|||||production line with annual capacity of 16.2 million square||
|||||meters.The production line used clear natural gas as the||
|||||fuel. Approximately RMB 580 million has been invested to||
|||||the project and the line ignited in March 2014. It is in trial||
|||||production currently.||
|||||Planning to establish an on-line coated production line in||
|||||green energy industrial park of Dongguan CSG, achieving||
||||||Project still|
|||||resource sharing through making use of production line||
||||||in|
|Dongguan CSG||||processing facilities of Shenzhen CSG Float and||
||||||constructio|
|solar on-line coated|39,000|1,012|1,012|invigorating idle assets such as plant of Dongguan solar||
||||||n in the|
|project||||energy rolled glass project and its public facilities. The||
||||||report|
|||||Company planned to invest approximately RMB 390||
||||||period.|
|||||million, including RMB 252 million newly increased. The||
|||||project plans to complete in early 2015.||
|||||Planning to build the wafer expanding project in Yichang|Project still|
|||||CSG. Among these, 300MW project has started to construct|in|
|700MW wafer||||||
|||||and planned to complete in the end of 2014. At that time,|constructio|
|expanding project in|198,000|13,087|21,393|||
|||||CSG will own the wafer productivity of 500MW in total.|n in the|
|Yichang CSG||||||
|||||The balance 400MW project will be invested according to|report|
|||||industry situations.|period.|
|Subtotal|610,180|75,214|309,842|--|--|
|Project|Planned|Amount|Accumulativ|Progress of project(projects suspension)|Returns|
||investment|invested in|e amount||from|
||amount|the report|actually||project|
|||period|invested|||
||||ended as|||
||||period-end|||
|Yichang CSG||||Planning to build the solar cell production line with annual||
|700MW solar cell|169,330|0|0|capacity of 700MW. The project was suspended and further|--|
|project||||investment will be based on actual industry situations.||
|||||Planning to expand the solar module production line with||
|Expanding 500MW||||||
|||||annual capacity of 500MW. The project was suspended due||
|solar module project|63,600|0|0||--|
|||||to industry situations and further investment will be based||
|in Dongguan||||||
|||||on actual industry situations||
|Subtotal|232,930|0|0|--|--|
|Total|843,110|75,214|309,842|--|--|
|Explanation on major investment with non-raised proceeds||||||
|1. Xianning CSG projects (including energy-saving glass), Wujiang energy-saving project and Chengdu energy-saving project||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||
|-|
|have been approved in 18th meeting of the 5th board of directors on 23 December 2010.|
|2. Yichang CSG technological transformation projects included polysilicon cold hydrogenation, technological transformation|
|project of distillation system, reduction furnace and CDI system. These projects have been approved in 18th meeting of the 5th|
|the board on 23 December 2010, 2nd meeting of the 6th board of directors on 21 April 2011 and the extraordinary meeting of the|
|6th board of directors on 27 September 2011 respectively.|
|3. Yichang CSG Ultra-thin glass project has been deliberated and approved by extraordinary meeting of the 6th board of directors|
|on 14 December 2013.|
|4. Qingyuan high-performance ultra-thin electronic glass project has been deliberated and approved by extraordinary meeting of|
|the 6th board of directors on 2 August 2013.|
|5. Wujiang CSG PV Glass project has been deliberated and approved by extraordinary meeting of 6th board of directors on 30|
|April 2013.|

VI. Prediction of business performance from January to September 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
VII. Implementation of profit distribution in the report period
Implementation or adjustment of profit distribution plan in reporting period, cash dividend plan and converting capital reserve into share capital in particular
√ Applicable□Not applicable
The profit distribution plan for 2013 was approved by AnnualShareholders’ General Meeting 2013 held on 14 April 2014 which distributed RMB 3 (tax included) in cash for every 10 shares to all shareholders. Notice of the distribution has been published on China Securities Journal, Securities Times and Hong Kong Commercial Daily on 28 April 2014, and the profit has been distributed. No profit distribution and capital reserve capitalizing of the Company exercised in the first half year of 2014.
|||
|-|-|
|Special explanation on cash dividend policy||
|Satisfy regulations of General Meeting or requirement of Article of Association||
||Y|
|(Y/N)||
|Well-defined and clearly dividend standards and proportion (Y/N)|Y|
|Completed relevant decision-making process and mechanism (Y/N)|Y|
|Independent directors perform duties completely and play a proper role (Y/N)|Y|
|Minority shareholders have opportunity to express opinions and demands totally||
||Y|
|and their legal rights are fully protected (Y/N)||
|Condition and procedures are compliance and transparent while the cash bonus||
||Cash bonus policy has not changed or adjusted|
|policy adjusted or changed (Y/N)||

VIII. Plan of profit distribution and share converted from capital reserve in the report period
□ Applicable√ Not applicable
The Company has no plans of cash dividend distribution, bonus shares distribution or share converted from capital reserve in the first
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 half of the year.
IX. Reception of research, communication and interview in the report period
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||||Contents discussed and material|
|Time|Place|Way|Type|Reception||
||||||provided|
|||||HSBC Global Assets Management (H.K.)|Introduced the operation condition|
|2014-5-28|The Company|Field research|Institute|||
|||||Co., Ltd., Macquarie Bank Limited|of the Company disclosed|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section V Important Events
I. Corporate governance of the Company
In strict compliance with the requirements of the relevant laws and regulation including The Company Law, Securities Law and Rule 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 perfect, operation is regulated, corporate governance is consummated, which accord with the requirements of relevant document on corporate governance of listed company issued by CSRS. During the report period, it does not exist that the company provides the undisclosed information to the largest shareholder and actual controller. And it does not exist that non-operating fund of listed company is occupied by the largest shareholder and its affiliated enterprises. II. Assets transaction
1. Assets sold
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||The||||||||
|||||The net profits||||||||||
|||||||proportion||||||||
|||||contributed to|The|||||Whether|Whether|||
|||||||of the net|||The|||||
|||||the listed|profit|||||the|the|||
||||Transa|||profits that||Wheth|association|||||
|||||company by|and loss||Pricing|||ownership|involved||Index|
|||The|ction|||the assets for||er it is|with the|||Date of||
||Assets for|||the asset from|generate||principle|||of|creditor's||of|
|Counterparty||date of|price|||sale||related|counterparty|||disclosu||
||sale|||the beginning|d by||of assets|||involved|rights and||disclos|
|||sale|(RMB|||contributed||transa|(Applicable|||re||
|||||of current|sale||for sale|||property|debts are||ure|
||||0,000)|||to the listed||ction|for related|||||
|||||period to the|(RMB|||||rights is|all|||
|||||||company in|||transaction)|||||
|||||date of sale|0,000)|||||transferred|transferred|||
|||||||total profits||||||||
|||||(RMB 0,000)||||||||||
|||||||(%)||||||||
|GoldenTimeInvestmentConsultant(Shenzhen)Co., Ltd.|100 equityofShenzhenCSG FloatGlass Co.,Ltd.|2014-4-30|91,800|-323|ApproximatelyRMB311.25millioninvestmentearningsexpected|52%|Pricingrefer tothe netassets ofthe targetcompany|N|Not applicable|Y|Y|2013-9-28|2013-028|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 III. Implementation of stock option incentive and its impact
√ Applicable□ Not applicable
The 15th meeting of 6th session of the Board held on 22 March 2014 deliberated and approved the “Proposal of Incentive Plan for Restricted Stock of A-share (Draft) and Summary” (hereinafter referred to Incentive Plan).
The incentive plan will issue no more than 90 million restricted A shares to grant plan participants in one time. The participants who can be awarded with restricted shares should correspond to award requirements regulated in restrict shares incentive plan. The Plan is valid for 48 months. The first 12 months since granted date was the lockup period and the later 36 months was the unlocked period. During the unlocked period, plan participants can apply unlocking the restricted shares in three phases if achieved the release condition, and the unlocked ratio shall be no more than40%、30%、30% of the total restricted shares respectively. The incentive plan has been put on file without objection by China Securities Regulatory Commission and should be submitted to the general meeting of shareholders for deliberation.
Details of the incentive plan can be found in the relevant notices released in the China Securities Journal, Securities Times, Hong Kong Commercial Daily and Juchao Website (www.cninfo.com.cn) on 25 March 2014.
IV. Major related transaction
1. Related transaction with routine operation concerned
√ Applicable□ Not applicable
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Trading|Proportion in|||Market price|||
|Related||Related|Related|Pricing|||||||||
||Related||||Dealing|amount|the amount of|Means of||of similar|Date of|Index of|
|transaction||transaction|transactio|principl|||||||||
||relationship||||price|(RMB|the same|payments||transaction|disclosure|disclosure|
|parties||type|n content|e|||||||||
|||||||0,000)|transaction (%)|||available|||
|Shenzhen CSGDisplayTechnologyCo., Ltd.|Associatedenterprise|Sales productsandcommodities torelated person|Salesutra-thinglass|Referstomarketprice|Notapplicable|455.32|0.14%|Monthlycost||Notapplicable|Notapplicable|Notapplicable|
|Total||||--|--|455.32|--|--||--|--|--|
|Details of major sold-out order sent back|||||||||N/A||||
|The actual implementation of routine related transactions that is about to occurred in the Period with total|||||||||||||
||||||||||N/A||||
|amount estimated by category (if any)|||||||||||||
|Reason for the great difference between trade price and market reference price (if any)|||||||||Not applicable||||

V. Particular about non-operating fund of listed company is occupied by controlling shareholder and its affiliated enterprises
□Applicable√Not applicable
It does not exist that non-operating fund of listed company is occupied by controlling shareholder and its affiliated enterprises in the report period.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 VI. Significant contract and implementations
1. Guarantees
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)||||||||||||
|||||Actual date||||||||
|||||of|||||Complete|||
||Related|||||Actual||||Guarantee||
|Name of the Company|||Guarantee|happening|||Guarantee|Guarantee|implement|||
||Announcement|||||guarantee||||for related||
|guaranteed|||limit|(Date of|||type|term|ation or|||
||disclosure date|||||limit||||party (Y/N)||
|||||signing|||||not|||
|||||agreement)||||||||
|Guarantee of the Company for the subsidiaries||||||||||||
|||||Actual date||||||||
||||||||||||Guarante|
|||||of||||||||
||Related|||||Actual|||Complete||e for|
|Name of the Company|||Guarantee|happening|||Guarantee|Guarantee||||
||Announcement|||||guarantee|||implementat||related|
|guaranteed|||limit|(Date of|||type|term||||
||disclosure date|||||limit|||ion or not||party|
|||||signing||||||||
||||||||||||(Y/N)|
|||||agreement)||||||||
|Chengdu CSG Glass|2014-1-14||15,000||||General|||||
|||||||||5-year|N||N|
|Co., Ltd.|||||||assurance|||||
|Chengdu CSG Glass|2014-1-14||10,000||||General|1-year||||
||||||||||N||N|
|Co., Ltd.|||||||assurance|||||
|Chengdu CSG Glass|2014-1-14||10,000||||General|1-year||||
||||||||||N||N|
|Co., Ltd.|||||||assurance|||||
|Chengdu CSG Glass|2014-3-25||12,500||||General|1-year||||
||||||||||N||N|
|Co., Ltd.|||||||assurance|||||
|Yichang CSG|2014-3-25||8,000|2014-5-20||1,220|General|3-year||||
|Photoelectric Glass Co.,|||||||assurance||N||N|
|Ltd.||||||||||||
|Yichang CSG|2014-3-25||30,000||||General|1-year||||
||||||||||N||N|
|Polysilicon Co., Ltd.|||||||assurance|||||
|Qingyuan CSG Energy|2014-3-25||30,000||||General|3-year||||
|Conservation|||||||assurance||N||N|
|New-materials Co., Ltd.||||||||||||
|Qingyuan CSG Energy|2014-4-22||30,000||||General|3-year||||
|Conservation|||||||assurance||N||N|
|New-materials Co., Ltd.||||||||||||
|||145,500|||Total amount of actual occurred|||||||
|Total amount of approving guarantee||||||||||||
||||||guarantee for subsidiaries in report||||63,688|||
|for subsidiaries in report period (B1)||||||||||||
||||||period (B2)|||||||
|Total amount of approved guarantee for||623,506|||Total balance of actual guarantee for|||||||
|subsidiaries at the end of reporting|||||subsidiaries at the end of reporting||||72,131|||
|period (B3)|||||period (B4)|||||||
|Total amount of guarantee of the Company( total of two abovementioned guarantee)||||||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||
|-|-|-|-|
|Total amount of approving guarantee in||Total amount of actual occurred||
||145,500||63,688|
|report period (A1+B1)||guarantee in report period (A2+B2)||
|Total amount of approved guarantee at||Total balance of actual guarantee at the||
||623,506||72,131|
|the end of report period (A3+B3)||end of report period (A4+B4)||
|The proportion of the total amount of actually guarantee in the net||||
|||8.99%||
|assets of the Company(that is A4+ B4)||||
|Including:||||
|Amount of guarantee for shareholders, actual controller and its||||
|||0||
|related parties(C)||||
|The debts guarantee amount provided for the guaranteed parties||||
|||0||
|whose assets-liability ratio exceed 70% directly or indirectly(D)||||
|Proportion of total amount of guarantee in net assets of the||||
|||0||
|Company exceed 50%(E)||||
|Total amount of the aforesaid three guarantees(C+D+E)||0||
|Explanations on possibly bearing joint and several liquidating||The Company bearing jointly responsibility in guarantee range if||
|responsibilities for undue guarantees||the subsidiaries end up in default.||
|Explanations on external guarantee against regulated procedures||N/A||

Explanation on guarantee with way of complex
Nil
VII. Commitments from the Company or shareholder with over5% share held in the report period or continues to the report period
√ Applicable□ Not applicable
|||||||
|-|-|-|-|-|-|
||||Commit-|Commit-||
||||||Implement-|
|Commitments|Promisee|Content of commitments|ment|ment||
||||||ation|
||||date|term||
|Commitments forShare Merger Reform||The Company has implemented share||||
|||merger reform in May 2006. Till June||||
|||2008, the share of the original||||
||The original|||||
|||non-tradable shareholders which holding||||
||non-tradable||||By the end of|
|||over 5% total shares of the Company had||||
||shareholder||||the report|
|||all released. Therein, the original||||
||Shenzhen||||period, the|
|||non-tradable shareholder Shenzhen||||
||International||||above|
|||International Holdings (SZ) Limited and||||
||Holdings (SZ)||2006-5-||shareholders of|
|||Xin Tong Chan Industrial Development||N/A||
||Limited and Xin||22||the Company|
|||(Shenzhen) Co., Ltd. both are||||
||Tong Chan||||had strictly|
|||wholly-funded subsidiaries to Shenzhen||||
||Industrial||||carried out|
|||International Holdings Limited||||
||Development||||their promises.|
|||(hereinafter Shenzhen International for||||
||(Shenzhen) Co.,|||||
|||short) listed in Hong Kong united stock||||
||Ltd.|||||
|||exchange main board. Shenzhen||||
|||International made commitment that it||||
|||would strictly carry out related||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|||regulations of Securities Law,|
|||Administration of the Takeover of Listed|
|||Companies Procedures and Guiding|
|||Opinions on the Listed Companies’|
|||Transfer of Original Shares Released from|
|||Trading Restrictions issued by CSRC|
|||during implementing share|
|||decreasingly-held plan and take|
|||information disclosure responsibility|
|||timely.|
|Commitments in report ofacquisition or equity change|||
|Commitments in assetsreorganization|||
|Commitments in initial publicoffering or re-financing|||
|Other commitments formedium and smallshareholders|||
|Completed on time or not|Yes||
|Detail reasons for|||
|un-complement and further|Not applicable||
|plan|||

VIII. Engaging and dismissing of CPA
Whether the semi-annual report was audited or not
□ Yes√ No
IX. Statement on other important matters
√ Applicable□ Not applicable
1. Short-term Financing Bonds
On 6 August 2012, the First ExtraordinaryShareholders’ General Meeting 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-term financing bills offering with application of short-term financing bill within RMB 2.2 billion limit. On 11 January 2013, National Association of Financial market Institutional Investors held its 1st registration meeting of 2013, in which NAFMII decided to accept theCompany’s short-term financing bills registration, amounting to RMB 1.1 billion, valid until January 25, 2015. China Merchants Bank Co., Ltd, and Shanghai Pudong Development Bank Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued by stages within the validity period of registration. On 7 March 2013, the Company issued the 1st batch of short-term financing bills with a total amount of RMB 1.1 billion and deadline of one year, and cashed completed on 6 March 2014. On 27 June 2014, the Company continued to issue the 2nd batch of short-term financing bills for the
year with a total amount of RMB 700 million and annual interest rate of5.10%, and the expiry date is 27 June 2015.
On 23 April 2013, annual general meeting of 2012 of CSG Holding Co., Ltd deliberated and approved the proposal of short-term
financing bills offering with application of short-term financing bills with a total amount of no more than 40 percent of the
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014Company’s net assets (the issued short-term financing bills included). On 20 December 2013, National Association of Financial market Institutional Investors held its 74th registration meeting of 2013, in which NAFMII decided to accept theCompany’s short-term financing bills registration, amounting to RMB 1.1 billion, valid for two years. China CITIC Bank Corporation Limited and Agricultural Bank of China Co., Ltd were joint lead underwriters of these short-term financing bills, which could be issued by stages within the validity period of registration. On 14 March 2014, the Company issued short-term financing bills with a total amount of RMB 0.5 billion and deadline of one year. As for the remaining RMB 0.6 billion and one-year term short-term financing bonds, the issuance date is undetermined.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
2. Corporate bonds
As approved by the Company in the second extraordinary general meeting for 2009, the Company issued corporate bonds amounting to RMB2 billion on 20 October 2010. This batch of bonds was divided into two groups, with maturity terms being 5 years and 7 years respectively. For the bonds with maturity term of 5 years, the issuance amount was RMB1 billion; and for those of 7 years, the issuance amount was RMB1 billion also. Besides, the bonds were attached with the option of issuer to raise additional coupon rate and the put option of investor. The corporate bonds were listed for trading on Shenzhen Stock Exchange on 10 November 2010, with annual interest rate of5.33% which remained constant for the first 5 years during the duration period. The abbreviation of the bonds with 5 years term was‘10CSG01’, with stock code of 112021; and the abbreviation of the bonds with 7 years term was‘10CSG02’, with stock code of 112022. The trading termination dates were 20 October 2015 and 20 October 2017 respectively (the final announcement issued by the Company shall prevail). For details, please refer to the Result Announcement Concerning Issuance of Corporate Bonds in 2010 disclosed at China Securities Journal, Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn on 26 October 2010.
According to the tracking rating conducted by CCXR in 2013, the credit rating of theCompany’s main body wasAA+, with outlook of stable. The credit rating of the aforementioned bonds wasAA+. The Company has paid the interests of the bonds for the three interest accrual periods on 20 October 2011, 22 October 2012 and 21 October 2013. In future, the Company will continue to provide assurance for payment of principal and interests of corporate bonds by solidly development of own business in the future.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital
Unit: Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||||Capitalizat|||||
|||Proportion|New shares|Bonus|ion of||||Proportion|
||Amount|||||Others|Subtotal|Amount||
|||(%)|issued|shares|public||||(%)|
||||||reserve|||||
||10,284,197|0.50%||||-301,200|-301,200|9,982,997|0.48%|
|I. Restricted shares||||||||||
||0|0%|||||0|0|0%|
|1. State-owned shares||||||||||
|2. State-owned legal person’s|0|0%|||||0|0|0%|
|shares||||||||||
||10,284,197|0.50%||||-301,200|-301,200|9,982,997|0.48%|
|3. Other domestic shares||||||||||
|Including: Domestic legal|0|0%|||||0|0|0%|
|person’s shares||||||||||
|Domestic natural|10,284,197|0.50%||||-301,200|-301,200|9,982,997|0.48%|
|person’s shares||||||||||
|4. Foreign shares|0|0%|||||0|0|0%|
|Including: Foreign legal|0|0%|||||0|0|0%|
|person’s shares||||||||||
|Foreign natural person’s|0|0%|||||0|0|0%|
|shares||||||||||
||2,065,051,363|99.50%||||301,200|301,200|2,065,352,563|99.52%|
|II. Unrestricted shares||||||||||
||1,302,467,371|62.76%||||301,200|301,200|1,302,768,571|62.77%|
|1. RMB Ordinary shares||||||||||
|2. Domestically listed foreign|762,583,992|36.75%|||||0|762,583,992|36.75%|
|shares||||||||||
|3. Overseas listed foreign|0|0%|||||0|0|0%|
|shares||||||||||
||0|0%|||||0|0|0%|
|4. Others||||||||||
|III.Total shares|2,075,335,560|100%|||||0|2,075,335,560|100%|

 Reasons for share changed
√ Applicable□ Not applicable
Removal& engagement for senior executives
Approval of share changed
□ Applicable√ Not applicable
Ownership transfer for changed shares
√ Applicable□ Not applicable
On 29 November 2013, Mr. Lu Wenhui was no longer in office of the Company as senior executive, shares held by Mr. Lu Wenhui
which had been locked up for six months by regulation released in May 2014. Therefore, 573,750 shares were decreased in restricted
seniorexecutives’ share. Mr. Zhang Bozhong was appointed as vice president of the Company on 14 April 2014. Therefore, the75%
shares held by Mr. Zhang Bozhong, that was 272,550 shares were classified into the seniorexecutives’ restricted shares.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to common shareholders of Company in 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
Explanation on changes in aspects of total shares, shareholder structure, assets of the Company and liability structure
□Applicable√ Not applicable
II. Particulars about shareholder and actual controller of the Company
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total shareholders in the report||||Total preference shareholders with voting rights|||||||
||217,800||||||||0||
|period||||recovered at end of the report period (if applicable)|||||||
|Shareholder with above 5% shares hold or top 10 shareholders|||||||||||
|Full name of Shareholders|Nature of|Proportion|Total shares||Changes in|Amount of|Amount of|Number of share|||
||shareholder|of shares|held at the||report period|restricted|un-restricted|pledged/frozen|||
|||held (%)|end of report|||shares|shares held|Share||Amo|
||||period|||held||status||unt|
|China Northern IndustriesCorporation|State-ownedlegal person|3.62%|75,167,934||0|0|75,167,934||||
|Xin Tong Chan IndustrialDevelopment (Shenzhen) Co.,Ltd.|Domestic nonstate-ownedlegal person|2.99%|62,052,845||0|0|62,052,845||||
|Shenzhen InternationalHoldings (Shenzhen) Co., Ltd.|Domestic nonstate-ownedlegal person|2.88%|59,778,813||0|0|59,778,813||||
|BBH A/C VANGUARDEMERGING MARKETSSTOCK INDEX FUND|Foreign legalperson|0.72%|15,003,364||-366,800|0|15,003,364||||
|ICBC—Lion Value GrowthStock Investment Fund|Domestic nonstate-ownedlegal person|0.67%|14,000,000||-6,000,000|0|14,000,000||||
|CMBC—Yinhua 100 GradingStock Investment Fund|Domestic nonstate-ownedlegal person|0.64%|13,301,406||13,301,406|0|13,301,406||||
|PICC Life – Dividend –Personal insurance|Domestic nonstate-ownedlegal person|0.51%|10,653,131||3,849,929|0|10,653,131||||
|CMS (H.K.)|Foreign legalperson|0.51%|10,542,928||3,920,526|0|10,542,928||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign legalperson||0.48%|9,928,203||-510,845|0||9,928,203||
|ICBC—Rongtong 100 IndexStock Investment Fund|Domestic nonstate-ownedlegal person||0.44%|9,204,358||-1,046,600|0||9,204,358||
|Strategic investors or general legal||N/A|||||||||
|person becomes top 10 shareholders due|||||||||||
|to shares issued (if applicable)|||||||||||
|Explanation on associated relationship||Among shareholders as listed above, Shenzhen International Holdings (Shenzhen) Co., Ltd.and Xin Tong Chan Development (Shenzhen) Co., Ltd. are holding enterprises and belongto controlling enterprise of Shenzhen International Holdings Co., Ltd.. Except for this, It isunknown whether other shareholders belong to related party or have associated relationshipregulated by the Management Regulation of Information Disclosure on Change ofShareholding for Listed Companies.|||||||||
|among the aforesaid shareholders|||||||||||
|Particular about top ten shareholders with un-restrict shares held|||||||||||
|Shareholders’ name|||||Amount of un-restrict|||Type of shares|||
||||||shares held at year-end|||Type||Amount|
|China Northern Industries Corporation|||||75,167,934|||RMB ordinary shares||75,167,934|
|Xin Tong Chan Industrial Development (Shenzhen) Co., Ltd.|||||62,052,845|||RMB ordinary shares||62,052,845|
|Shenzhen International Holdings (Shenzhen) Co., Ltd.|||||59,778,813|||RMB ordinary shares||59,778,813|
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEXFUND|||||15,003,364|||Domestically listed|||
|||||||||||15,003,364|
|||||||||foreign shares|||
|ICBC—Lion Value Growth Stock Investment Fund|||||14,000,000|||RMB ordinary shares||14,000,000|
|CMBC—Yinhua 100 Grading Stock Investment Fund|||||13,301,406|||RMB ordinary shares||13,301,406|
|PICC Life – Dividend – Personal insurance|||||10,653,131|||RMB ordinary shares||10,653,131|
|CMS (H.K.)|||||10,542,928|||Domestically listed|||
|||||||||||10,542,928|
|||||||||foreign shares|||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED|||||9,928,203|||Domestically listed|||
|||||||||||9,928,203|
|||||||||foreign shares|||
|ICBC—Rongtong 100 Index Stock Investment Fund|||||9,204,358|||RMB ordinary shares||9,204,358|
|||Among shareholders as listed above, Shenzhen International Holdings (Shenzhen) Co., Ltd.and Xin Tong Chan Development (Shenzhen) Co., Ltd. are holding enterprises and belongto controlling enterprise of Shenzhen International Holdings Co., Ltd.. Except for this, It isunknown whether other shareholders belong to related party or have associated relationshipregulated by the Management Regulation of Information Disclosure on Change ofShareholding for Listed Companies.|||||||||
|Statement on associated relationship or|||||||||||
|consistent action among the above|||||||||||
|shareholders:|||||||||||
|Explanation on shareholders involving||N/A|||||||||
|margin business (if applicable)|||||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Agreed to buy back deals occurred in Period from shareholders
□Yes√ No
III. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the report period
□Applicable√ Not applicable
Controlling shareholders have no changed in the report period.
Changes of actual controller in the report period
□Applicable√ Not applicable
Actual controller has no changed in the report period.
IV. Share holding increasing plan proposed or implemented in the report period from shareholder of the Company and its concerted action person
□ Applicable√Not applicable
As far as the Company knows, there is no share holding increasing plan proposed or implemented in the report period from shareholder of the Company and its concerted action person.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section VII. Particulars about Directors, Supervisors and Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
□ Applicable√ Not applicable
Shares held by directors, super visors and senior executives have no change in the report period, more details can be found in Annual Report 2013.
II. Changes of the directors, supervisors and senior executives
√Applicable□Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reasons|
||Independent||||
|Du Wenjun||Elected|2014-04-14|At expiration of office term|
||Director||||
|Chen Chao|Director|Elected|2014-04-14|At expiration of office term|
|Yan Wendou|Supervisor|Elected|2014-03-14|Elected on workers congress|
|||||Board of the Company agrees to nominate Mr. Zhang|
|Zhang Bozhong|Deputy President|Appointed|2014-04-14|Bozhong servers as Deputy President of the Company|
|||||due to business development requirement|
|||Leave office|||
||Independent||||
|Chen Chao||while terms|2014-04-14|Leave office upon term expiration|
||Director||||
|||expired|||
|Ke Hanqi|Director|Leave office|2014-04-14|At expiration of office term|
|||||Submitted resignation to Supervisory Committee due|
|Sun Jingyun|Supervisor|Leave office|2014-03-13||
|||||to career moves|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section VIII . Financial Report
(I)Auditors’ Report
Whether the Semi-annual Report is audited or not
□ Yes√ No
The Semi-annual Report of the Company is not audited.
(II) 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|287,736,235|279,672,523|
|Settlement provision|||
|Outgoing call loan|||
|Transactional financial assets|||
|Notes receivable|307,341,178|323,889,490|
|Account receivable|245,616,313|136,430,683|
|Prepayment|119,246,734|73,378,329|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|26,343,365||
|Other account receivable|41,390,951|109,366,023|
|Repurchasing of financial assets|||
|Inventories|443,158,547|378,684,712|
|Non-current asset due in 1 year|||
|Other current asset|187,292,116|1,021,464,095|
|Total of current asset|1,658,125,439|2,322,885,855|
|Non-current assets|||
|Disburse of consigned loans|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Available-for-sale financial asset|135,900,000|122,760,000|
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|751,594,586|770,037,176|
|Investment real estates|||
|Fixed assets|9,208,002,553|7,979,937,683|
|Construction in process|1,964,018,775|2,762,418,100|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|948,567,405|933,329,528|
|R&D expense|10,450,066|9,881,310|
|Goodwill|3,039,946|3,039,946|
|Long-term amortizable expenses|2,896,704|3,280,021|
|Differed income tax asset|107,855,079|164,787,158|
|Other non-current asset|6,510,000|6,510,000|
|Total of non-current assets|13,138,835,114|12,755,980,922|
|Total of assets|14,796,960,553|15,078,866,777|
|Current liabilities|||
|Short-term loans|1,958,295,208|1,424,743,800|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Trade off financial liabilities|||
|Notes payable|8,221,924|4,429,188|
|Account payable|1,000,862,699|981,616,449|
|Prepayment received|149,764,555|160,689,070|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|112,079,096|166,377,238|
|Tax payable|99,596,206|160,754,703|
|Interest payable|86,785,042|60,767,534|
|Dividend payable|687,627|687,627|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Other account payable|231,749,754|557,130,583|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Non-current liability due in 1 year|182,026,370|399,849,715|
|Other current liability|300,000|300,000|
|Total of current liability|3,830,368,481|3,917,345,907|
|Non-current liabilities|||
|Long-term borrowings|275,992,783|302,904,204|
|Bond payable|1,993,347,401|1,991,041,175|
|Long-term payable|||
|Special payable|||
|Anticipated liabilities|||
|Differed income tax liability|34,118,278|34,298,029|
|Other non-recurring liabilities|414,180,279|432,364,880|
|Total of non-current liabilities|2,717,638,741|2,760,608,288|
|Total of liability|6,548,007,222|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|1,394,184,448|1,391,366,888|
|Less: Shares in stock|||
|Special reserves|15,335,600|14,503,860|
|Surplus reserves|765,048,720|765,048,720|
|Common risk provision|||
|Retained profit|3,770,184,613|3,803,574,842|
|Different of foreign currency translation|-945,426|-1,935,731|
|Total of owner’s equity belong to the parent|||
||8,019,143,515|8,047,894,139|
|company|||
|Minor shareholders’ equity|229,809,816|353,018,443|
|Total of owners’ equity (or shareholders’ equity)|8,248,953,331|8,400,912,582|
|Total of liability and shareholders’ equity (or|||
||14,796,960,553|15,078,866,777|
|owners’ equity)|||

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. SEMI-ANNUAL 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|144,593,055|129,337,516|
|Transactional financial assets|||
|Notes receivable|||
|Account receivable|||
|Prepayment|||
|Interest receivable|||
|Dividend receivable|26,318,201||
|Other account receivable|3,670,966,095|3,082,240,537|
|Inventories|||
|Non-current asset due in 1 year|||
|Other current asset|||
|Total of current asset|3,841,877,351|3,211,578,053|
|Non-current assets|||
|Available-for-sale financial asset|104,235,300|94,156,920|
|Expired investment in possess|||
|Long-term receivable|1,701,290,000|1,953,745,783|
|Long-term share equity investment|4,409,380,323|4,966,621,199|
|Investment real estates|||
|Fixed assets|35,762,338|38,163,267|
|Construction in process|||
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|2,427,736|2,649,635|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|2,127,526|2,424,621|
|Differed income tax asset|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Other non-current asset|||
|Total of non-current assets|6,255,223,223|7,057,761,425|
|Total of assets|10,097,100,574|10,269,339,478|
|Current liabilities|||
|Short-term loans|1,695,000,000|1,255,000,000|
|Trade off financial liabilities|||
|Notes payable|||
|Account payable|591,642|923,245|
|Prepayment received|||
|Employees’ wage payable|29,329,693|55,932,331|
|Tax payable|1,752,051|26,978,661|
|Interest payable|30,763,327|18,800,998|
|Dividend payable|687,627|687,627|
|Other account payable|333,500,125|829,844,788|
|Non-current liability due in 1 year||150,000,000|
|Other current liability|||
|Total of current liability|2,091,624,465|2,338,167,650|
|Non-current liabilities|||
|Long-term borrowings|||
|Bond payable|1,993,347,401|1,991,041,175|
|Long-term payable|||
|Special payable|||
|Anticipated liabilities|||
|Differed income tax liability|21,648,575|19,128,980|
|Other non-recurring liabilities|11,792,800|11,792,800|
|Total of non-current liabilities|2,026,788,776|2,021,962,955|
|Total of liability|4,118,413,241|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|1,442,362,965|1,434,441,128|
|Less: Shares in stock|||
|Special reserves|||
|Surplus reserves|779,594,080|779,594,080|
|Common risk provision|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Retained profit|1,681,394,728|1,619,838,105|
|Different of foreign currency translation|||
|Total of owners’ equity (or shareholders’ equity)|5,978,687,333|5,909,208,873|
|Total of liability and shareholders’ equity (or|||
||10,097,100,574|10,269,339,478|
|owners’ equity)|||

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 3.Consolidated Income Statement
Prepared by CSG Holding Co., Ltd.
Unit: RMB
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Total revenue|3,262,681,672|3,536,965,783|
|Incl. Business income|3,262,681,672|3,536,965,783|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|2,960,932,907|3,051,735,433|
|Incl. Business cost|2,438,593,004|2,514,678,053|
|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|16,421,798|23,235,766|
|Sales expense|114,315,080|127,942,744|
|Administrative expense|280,194,020|264,014,052|
|Financial expenses|109,025,628|119,638,263|
|Asset impairment loss|2,383,377|2,226,555|
|Plus: gains from change of fair value (“-“for loss)|||
|Investment gains (“-“ for loss)|320,762,071|432,000|
|Incl. Investment gains from affiliates|9,407,007||
|Exchange gains (“-“ for loss)|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|III. Operational profit (“-“ for loss)|622,510,836|485,662,350|
|Plus: non-operational income|57,283,254|48,291,577|
|Less: non-operational expenditure|1,599,736|8,395,202|
|Incl. Loss from disposal of non-current assets|1,446,174|288,211|
|IV. Gross profit (“-“ for loss)|678,194,354|525,558,725|
|Less: Income tax expenses|60,997,406|113,728,215|
|V. Net profit (“-“ for net loss)|617,196,948|411,830,510|
|Including: Net profit realized by the entity taken over|||
|before the takeover|||
|Net profit attributable to the owners of parent company|589,210,439|353,719,746|
|Minor shareholders’ equity|27,986,509|58,110,764|
|VI. Earnings per share:|--|--|
|(I) Basic earnings per share|0.28|0.17|
|(II) Diluted earnings per share|0.28|0.17|
|VII. Other misc. incomes|11,104,135|-10,269,219|
|VIII. Total of misc. incomes|628,301,083|401,561,291|
|Total of misc. incomes attributable to the owners of the|||
||600,315,982|343,450,704|
|parent company|||
|Total misc gains attributable to the minor shareholders|27,985,101|58,110,587|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 4. Income Statement of the Parent Co.
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|42,738,239|22,794,486|
|Financial expenses|54,974,113|17,523,341|
|Asset impairment loss|1,209|-774,291|
|Plus: gains from change of fair value (“-“ for loss)|||
|Investment gains (“-“ for loss)|771,542,246|537,075,800|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Incl. Investment gains from affiliates|69,828,686||
|II. Operational profit (“-“ for loss)|673,828,685|498,231,768|
|Plus: Non business income|866,216|6,327,040|
|Less: Non-business expenses||3,741|
|Incl. Loss from disposal of non-current assets||3,741|
|III. Total profit (“-“ for loss)|674,694,901|504,555,067|
|Less: Income tax expenses|-9,462,390||
|IV.Net profit (“-“ for net loss)|684,157,291|504,555,067|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other misc gains|7,558,785|-6,787,827|
|VII. Total of integrated income|691,716,076|497,767,240|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 5. Consolidated Cash Flow Statement
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|3,730,356,839|4,001,904,415|
|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|20,278,992|24,255,403|
|Other cash received from business operation|34,582,138|54,346,067|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Sub-total of cash inflow from business activities|3,785,217,969|4,080,505,885|
|Cash paid for purchasing of merchandise and services|2,279,746,228|2,333,926,761|
|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|411,035,715|395,628,362|
|Taxes paid|309,660,571|449,961,157|
|Other cash paid for business activities|203,847,248|193,730,893|
|Sub-total of cash outflow from business activities|3,204,289,762|3,373,247,173|
|Cash flow generated by business operation, net|580,928,207|707,258,712|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit|444,816||
|Net cash retrieved from disposal of fixed assets, intangible assets,|||
||10,631,070|15,201,967|
|and other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational|||
||463,160,123|20,000,000|
|units|||
|Other investment-related cash received|99,101,310|46,277,135|
|Sub-total of cash inflow due to investment activities|573,337,319|81,479,102|
|Cash paid for construction of fixed assets, intangible assets and|||
||998,359,544|939,098,718|
|other long-term assets|||
|Cash paid as investment|55,971,894||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units||39,001,200|
|Other cash paid for investment activities|6,616,080|7,000,000|
|Sub-total of cash outflow due to investment activities|1,060,947,518|985,099,918|
|Net cash flow generated by investment|-487,610,199|-903,620,816|
|III. Cash flow generated by financing|||
|Cash received as investment|21,136,000|21,085,757|
|Incl. Cash received as investment from minor shareholders|21,136,000|21,085,757|
|Cash received as loans|3,206,640,372|2,107,803,785|
|Cash received from bond placing|||
|Other financing-related cash received|353,460,920|21,469,628|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Subtotal of cash inflow from financing activities|3,581,237,292|2,150,359,170|
|Cash to repay debts|2,917,823,729|1,552,112,829|
|Cash paid as dividend, profit, or interests|747,047,327|473,728,339|
|Incl. Dividend and profit paid by subsidiaries to minor shareholders|56,362,791|108,861,756|
|Other cash paid for financing activities|||
|Subtotal of cash outflow due to financing activities|3,664,871,056|2,025,841,168|
|Net cash flow generated by financing|-83,633,764|124,518,002|
|IV. Influence of exchange rate alternation on cash and cash|||
||400,331|-2,761,004|
|equivalents|||
|V. Net increase of cash and cash equivalents|10,084,575|-74,605,106|
|Plus: Balance of cash and cash equivalents at the beginning of term|276,450,869|447,736,536|
|VI. Balance of cash and cash equivalents at the end of term|286,535,444|373,131,430|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming 6. Cash Flow Statement of the Parent Co.
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|1,181,264|1,613,696|
|Sub-total of cash inflow from business activities|1,181,264|1,613,696|
|Cash paid for purchasing of merchandise and services|1,500|2,446,575|
|Cash paid to staffs or paid for staffs|51,858,713|7,608,975|
|Taxes paid|16,935,417|240,332|
|Other cash paid for business activities|10,024,290|8,868,114|
|Sub-total of cash outflow from business activities|78,819,920|19,163,996|
|Cash flow generated by business operation, net|-77,638,656|-17,550,300|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit|526,558,273|265,909,173|
|Net cash retrieved from disposal of fixed assets, intangible assets,|||
||294||
|and other long-term assets|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Net cash received from disposal of subsidiaries or other operational|||
||468,000,000|15,000,000|
|units|||
|Other investment-related cash received||6,317,040|
|Sub-total of cash inflow due to investment activities|994,558,567|287,226,213|
|Cash paid for construction of fixed assets, intangible assets and|||
||471,676|14,240,016|
|other long-term assets|||
|Cash paid as investment|114,778,929|313,112,426|
|Net cash received from subsidiaries and other operational units||39,001,200|
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|115,250,605|366,353,642|
|Net cash flow generated by investment|879,307,962|-79,127,429|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|3,369,164,069|1,747,853,336|
|Cash received from bond placing|||
|Other financing-related cash received|||
|Subtotal of cash inflow from financing activities|3,369,164,069|1,747,853,336|
|Cash to repay debts|3,079,164,069|405,158,284|
|Cash paid as dividend, profit, or interests|667,937,522|315,302,985|
|Other cash paid for financing activities|409,586,399|954,506,592|
|Subtotal of cash outflow due to financing activities|4,156,687,990|1,674,967,861|
|Net cash flow generated by financing|-787,523,921|72,885,475|
|IV. Influence of exchange rate alternation on cash and cash|||
||-81,486|2,232,963|
|equivalents|||
|V. Net increase of cash and cash equivalents|14,063,899|-21,559,291|
|Plus: Balance of cash and cash equivalents at the beginning of term|129,337,516|139,915,851|
|VI. Balance of cash and cash equivalents at the end of term|143,401,415|118,356,560|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 7. Statement of Change inOwners’ Equity (Consolidated)
Prepared by CSG Holding Co., Ltd.
Amount of the Current Term
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term||||||||||
||Owners’ Equity Attributable to the Parent Company||||||||Minor||
|Items|Capital paid in||Less: Shares||||||shareholders’|Total of|
|||Capital||Special|Surplus|Common risk|Retained||||
||(or share||Special in|||||Others|Total of owners’|owners’ equity|
|||reserves||reserves|reserves|provision|profit||||
||capital)||reserves stock||||||equity||
|I. Balance at the end of last year|2,075,335,560|1,391,366,888||14,503,860|765,048,720||3,803,574,842|-1,935,731|353,018,443|8,400,912,582|
|Plus: Change of accounting policy|||||||||||
|Correcting of previous errors|||||||||||
|Others|||||||||||
|II. Balance at the beginning of|2,075,335,560|1,391,366,888||14,503,860|765,048,720||3,803,574,842|-1,935,731|353,018,443|8,400,912,582|
|current year|||||||||||
|III. Amount of change in current|||||||||||
|||2,817,560||831,740|||-33,390,229|990,305|-123,208,627|-151,959,251|
|term|||||||||||
|(“-“ for decrease)|||||||||||
|(I) Net profit|||||||589,210,439||27,986,509|617,196,948|
|(II) Other misc. income||10,115,238||||||990,305|-1,408|11,104,135|
|Total of (I) and (II)||10,115,238|||||589,210,439|990,305|27,985,101|628,301,083|
|(III)Investment|||||||||||
||||||||||21,136,000|21,136,000|
|or decreasing of capital by|||||||||||
|owners|||||||||||
|1. Capital inputted by owners|||||||||21,136,000|21,136,000|
|2. Amount of shares paid and|||||||||||
|accounted as owners’ equity|||||||||||
|3. Others|||||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|(IV) Profit allotment|||||-622,600,668||-56,362,791|-678,963,459|
|1. Providing of surplus reserves|||||||||
|2. Common risk provision|||||||||
|3. Allotment to the owners (or|||||-622,600,668||-56,362,791|-678,963,459|
|shareholders)|||||||||
|4. Others|||||||||
|(V) Internal transferring of owners’|||||||||
|equity|||||||||
|1.Capitalizing of capital reserves (or|||||||||
|to capital shares)|||||||||
|2.Capitalizing of surplus reserves|||||||||
|(or|||||||||
|to capital shares)|||||||||
|3. Making up losses by surplus|||||||||
|reserves|||||||||
|4. Others|||||||||
|(VI)Special reserves|||831,740|||||831,740|
|1. Provided this year|||1,503,887|||||1,503,887|
|2. Used this term|||-672,147|||||-672,147|
|(VII) Others||-7,297,678|||||-115,966,937|-123,264,615|
|IV. Balance at the end of this term|2,075,335,560|1,394,184,448|15,335,600|765,048,720|3,770,184,613|-945,426|229,809,816|8,248,953,331|

 Amount of Last Year
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of Last Year||||||||||
||Owners’ Equity Attributable to the Parent Company||||||||Minor||
|Items|Capital paid in||Less: Shares||||||shareholders’|Total of|
|||Capital||Special|Surplus|Common risk|Retained||||
||(or share||Special in|||||Others|Total of owners’|owners’ equity|
|||reserves||reserves|reserves|provision|profit||||
||capital)||reserves stock||||||equity||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|I. Balance at the end of last year|2,075,335,560|1,381,031,988|14,831,266|678,216,577|2,665,777,580|1,017,782|451,984,007|7,268,194,760|
|Plus: Retrospective adjustment|||||||||
|caused by merger of entities under|||||||||
|common control|||||||||
|Plus:Change of accounting policy|||||||||
|Correcting of previous errors|||||||||
|Others|||||||||
|II. Balance at the beginning of|2,075,335,560|1,381,031,988|14,831,266|678,216,577|2,665,777,580|1,017,782|451,984,007|7,268,194,760|
|current year|||||||||
|III. Amount of change in current|||||||||
|||10,334,900|-327,406|86,832,143|1,137,797,262|-2,953,513|-98,965,564|1,132,717,822|
|term|||||||||
|(“-“ for decrease)|||||||||
|(I) Net profit|||||1,535,929,739||139,384,658|1,675,314,397|
|(II) Other misc. income||9,857,002||||-2,953,513||6,903,489|
|Total of (I) and (II)||9,857,002|||1,535,929,739|-2,953,513|139,384,658|1,682,217,886|
|(III)Investment or decreasing of||450,851|||||13,451,793|13,902,644|
|capital by owners|||||||||
|1. Capital inputted by owners|||||||13,210,000|13,210,000|
|2. Amount of shares paid and||450,851|||||241,793|692,644|
|accounted as owners’equity|||||||||
|3. Others|||||||||
|(IV) Profit allotment||||86,832,143|-398,132,477||-145,358,190|-456,658,524|
|1. Providing of surplus reserves||||86,832,143|-86,832,143||||
|2. Common risk provision|||||||||
|3. Allotment to the owners (or|||||-311,300,334||-145,358,190|-456,658,524|
|shareholders)|||||||||
|4. Others|||||||||
|(V) Internal transferring of owners’|||||||||
|equity|||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|1.Capitalizing of capital reserves (or|||||||||
|to capital shares)|||||||||
|2.Capitalizing of surplus reserves|||||||||
|(or to capital shares)|||||||||
|3. Making up losses by surplus|||||||||
|reserves|||||||||
|4. Others|||||||||
|(VI) Special reserves|||-327,406||||-21,009|-348,415|
|1. Provided this year|||3,195,497||||205,053|3,400,550|
|2. Used this term|||-3,522,903||||-226,062|-3,748,965|
|(VII) Others||27,047|||||-106,422,816|-106,395,769|
|IV. Balance at the end of this term|2,075,335,560|1,391,366,888|14,503,860|765,048,720|3,803,574,842|-1,935,731|353,018,443|8,400,912,582|

 LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 8. Statement of Change inOwners’ Equity (Parent Co.)
Prepared by CSG Holding Co., Ltd.
Amount of the Current Term
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term||||||||
||||Less:||||||
|Items|Capital paid in|Capital|Shares|Special|Surplus|Common|Retained|Total of|
||(or share|||||risk||owners’|
|||reserves|in|reserves|reserves||profit||
||capital)|||||provision||equity|
||||stock||||||
|I. Balance at the end of last|||||||||
||2,075,335,560|1,434,441,128|||779,594,080||1,619,838,105|5,909,208,873|
|year|||||||||
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous errors|||||||||
|Other|||||||||
|II. Balance at the beginning|||||||||
||2,075,335,560|1,434,441,128|||779,594,080||1,619,838,105|5,909,208,873|
|of current year|||||||||
|III. Changed in the current|||||||||
|||7,921,837|||||61,556,623|69,478,460|
|year|||||||||
|（I）Net profit|||||||684,157,291|684,157,291|
|（II）Other misc. income||7,558,785||||||7,558,785|
|Total of (I) and (II)||7,558,785|||||684,157,291|691,716,076|
|(III) Investment or decreasing|||||||||
|of capital by owners|||||||||
|1. Capital inputted by owners|||||||||
|2．Amount of shares|||||||||
|paid and accounted as|||||||||
|owners‘ equity|||||||||
|3. Other|||||||||
|（IV）Profit allotment|||||||-622,600,668|-622,600,668|
|1.Providing of surplus|||||||||
|reserves|||||||||
|2.Providing of common risk|||||||||
|provisions|||||||||
|3．Allotment to the owners (or|||||||||
||||||||-622,600,668|-622,600,668|
|shareholders)|||||||||
|4．Other|||||||||
|(V) Internal transferring of|||||||||
|owners‘ equity|||||||||
|1. Capitalizing of capital|||||||||
|reserves (or to capital shares)|||||||||
|2. Capitalizing of surplus|||||||||
|reserves (or to capital shares)|||||||||
|3．Making up losses by|||||||||
|surplus reserves.|||||||||
|4. Other|||||||||
|(VI) Special reserves|||||||||
|1. Provided this year|||||||||
|2．Used this term|||||||||
|(VII) Other||363,052||||||363,052|
|IV. Balance at the end of this||||||||5,978,687,333|
||2,075,335,560|1,442,362,965|||779,594,080||1,681,394,728||
|term|||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Amount of Last Year
Uniit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of last year||||||||
||||Less:|||Commo|||
|Items|Capital paid|Capital|Shares|Special|Surplus|n risk|Retained|Total of|
||in (or share|||||||owners’|
|||reserves|in|reserves|reserves|provisio|profit||
||capital)|||||||equity|
||||stock|||n|||
|I.Balance at the end of last|||||||||
||2,075,335,560|1,426,899,328|||692,761,937||1,149,649,152|5,344,645,977|
|year|||||||||
|Add: Change of accounting|||||||||
|policy|||||||||
|Correcting of previous errors|||||||||
|Other|||||||||
|II.Balance at the beginning of|||||||||
||2,075,335,560|1,426,899,328|||692,761,937||1,149,649,152|5,344,645,977|
|current year|||||||||
|III.Changed in the current|||||||||
|||7,541,800|||86,832,143||470,188,953|564,562,896|
|year|||||||||
|（I） Net profit|||||||868,321,430|868,321,430|
|（II）Other misc.income||7,365,795||||||7,365,795|
|Total of (I) and (II)||7,365,795|||||868,321,430|875,687,225|
|(III) Investment or decreasing|||||||||
|||176,005||||||176,005|
|of capital by owners|||||||||
|1. Capital inputted by owners|||||||||
|2．Amount of shares|||||||||
|paid and accounted as||176,005||||||176,005|
|owners‘ equity|||||||||
|3. Other|||||||||
|（IV）Profit allotment|||||86,832,143||-398,132,477|-311,300,334|
|1.Providing of surplus|||||||||
||||||86,832,143||-86,832,143||
|reserves|||||||||
|2.Providing of common risk|||||||||
|provisions|||||||||
|3．Allotment to the owners (or|||||||||
||||||||-311,300,334|-311,300,334|
|shareholders)|||||||||
|4．Other|||||||||
|(V) Internal transferring of|||||||||
|owners‘ equity|||||||||
|1. Capitalizing of capital|||||||||
|reserves (or to capital shares)|||||||||
|2. Capitalizing of surplus|||||||||
|reserves (or to capital shares)|||||||||
|3．Making up losses by|||||||||
|surplus reserves.|||||||||
|4. Other|||||||||
|(VI) Special reserves|||||||||
|1. Provided this year|||||||||
|2．Used this term|||||||||
|（VII）Other|||||||||
|IV. Balance at the end of this|||||||||
||2,075,335,560|1,434,441,128|||779,594,080||1,619,838,105|5,909,208,873|
|term|||||||||

LegalRepresentative：Zeng Nan CFO：Luo Youming Manager of the financialdepartment：Zhang Guoming
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984 in Shenzhen, thePeople’s Republic of China (the “PRC”), previously known as China South Glass Company, as a joint venture enterprise by Hong Kong China merchants shipping Co., LTD(香港招商局轮船股份有限公司)、Shenzhen building materials industrycorporation(深圳建筑材料工业集团公司)、China North Industries Corporation(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), with a registered capital of US dollar 500,000. In October 1991, as approved by the Shenzhen municipal government with document SFBF (1991) 828, China South Glass Company was reorganized as joint stock limited company, the registered capital was RMB71,232,550, with nominal value of RMB1 per share.
As approved byPeople’s Bank of China Shenzhen Branch with document No. SRYFZ (1991)087 and SRYFZ (1992) 010, the Company issued, by public offering, the domestic shares (“A shares”) of 20,300,000 shares and domestically listed foreign shares (“B shares”) of 16,000,000, in October 1991 and January 1992, respectively. Both shares were listed in Shenzhen Stock Exchange in February 1992. The registered capital of the Company increased to RMB107,532,550.
As approved by China Securities Regulatory Committee with document (1995) No.16, State Planning Committee with document JWZ (1994) No. 1748 and State Administrative of Foreign Exchange with document HZF (95) No. 191, the Company issued USD 45 million convertible bonds on Swiss between June and July 1995, of which convertible bonds amounting to USD 44 million had been converted into 75,411,268 B shares, the remaining balances were repaid upon maturity.
The Company issued new capital of RMB832,519,306 during the period from 1993 to 2005 by the means of warrants, bonus issue and capitalisation of capital reserve.
As approved by China Security Regulatory Committee with document ZJFX (2007) No. 231, the Company issued, by private placement, 172,500,000 A shares during the period from 20 September to 27 September 2007, at subscription price of RMB8 per share. The registered capital of the Company increased to 1,187,963,124 upon the completion of the placement.
According to theCompany’s restricted A share stock incentive scheme, the Company granted 49,140,000 A shares to employees through a non-public placement on 16 June 2008, at price of RMB8.58 per share. The registered capital of the Company increased to 1,237,103,124 upon the completion of the issuance.
As 2008 performance of the Group failed to meet the vesting conditions of the A share stock incentive scheme and certain employees left the Group, the Company repurchased and cancelled 13,365,000 A shares in 2009. The company's registered capital was reduced to 1,223,738,124.
As some certain employees left the Group in 2009, the Company repurchased and cancelled 1,042,500 A shares on January 2010. Thecompany’s registered capital was reduced to 1,222,695,624.
Pursuant to the resolutions ofshareholder’s meeting on 20 April 2010, the Company paid scrip dividend of 855,886,936 shares, on the basis of total equity 1,22,695,624 issuing 7 shares for each 10 shares by capitalisation of capital surplus. TheCompany’s registered capital was increased to 2,078,582,560 thereafter.
As certain employees left the Group in 2010, the Company repurchased and cancelled 1,861,500 A shares in July 2010. The company's registered capital was reduced to 2,076,721,060.
As certain employees left the Group in 2011, the Company repurchased and cancelled 578,000 A shares in January 2011 and 306,000 A shares in October. Thecompany’s registered capital was reduced to 2,075,837,060.
As certain employees left the Group in 2012, the Company repurchased and cancelled 501,500 A shares in June 2012. Thecompany’s registered capital was reduced to 2,075,335,560.
The Company and its subsidiaries (collectively referred to the “Group”) are mainly engaged in the manufacturing and selling of floating glass, specialized glass, engineering glass, energy saving glass, silicon related materials and solar panels.
The financial statements were authorized for issue by the board of directors on 1 August 2014.
IV. Principal accounting policies, accounting estimates and early errors
1. Basis for the preparation of financial statements
The financial statements have been prepared in accordance with the Basic Standards and 38 Specific Standards of the Accounting
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 standards for Business Enterprises issued by the Ministry of Finance on 15 February 2006, and the Application Guidance for Accounting Standards for Business Enterprises, Interpretation of Accounting Standards for Business Enterprises and other relevant regulations issued thereafter (hereafter referred to as “the Accounting Standards for Business enterprises” or “CAS”), and “Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision”(2010 Amendment) issued by China Security Regulatory Commission.
As at 30 June 2014, the Group had net current liabilities of about RMB 2.17 billion and committed capital expenditure of RMB 721 million. The directors of the Company has assessed the following facts and conditions: a) the Group has been able to generate positive operating cash flows in prior years and expect to do so during the coming year; b) the Group has maintained good relationship with banks so the Group has been able to successfully get adequate financing credit; As at 30 June 2013, the Group had unutilised internal banking facilities of approximately RMB 9.6 billion, including the long-term banking facilities of approximately RMB 2.8 billion. In addition, the Group also has other available financing channels, such as short-term financing bills. The directors are of view that the above banking facilities can meet the funding requirements of theGroup’s debt servicing and capital commitment. Accordingly, the directors of the Company had adopted the going concern basis in the preparation of this financial statement of the Company and the Group.
2. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2014 truly and completely present the financial position as of 30 June 2014 and the operating results, cash flows and other information for January to June of 2014 of the Group and the Company in compliance with the Accounting Standards for Business Enterprises.
3. Accounting period
TheCompany’s accounting year starts on 1 January and ends on 31 December.
4. Recording currency
The recording currency is Renminbi (RMB).
5. Accounting process method of Business combinations under common and different controlling.
(1)Business combinations involving entities under common control
The assets and liabilities that the combining party obtains in a business combination shall be measured on the basis of their carrying amount in the combined party. As for the balance between the carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If the additional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted. Costs directly attributable to business combination are recorded into the profits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recorded into initial recognition amounts of equity securities or debt securities.
(2) Business combinations involving entities not under common control
The cost of combination and identifiable net assets obtained by the acquirer in a business combination are measured at the fair value at the acquisition date. The excess of the cost of acquisition over theGroup’s share of the fair value of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than theGroup’s share of fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the income statement. Costs directly attributable to business combination are included in the profits and losses once incurred. Transaction costs attributed to issue equity securities or debt securities for business combination are recorded into initial recognition amounts of equity securities or debt securities.
6. Basis of preparation of consolidated financial statements
(1) Basis of preparation of consolidated financial statements
The scope of consolidation includes the Company and all of its subsidiaries.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de-consolidated from the date that control ceases. For the subsidiary being acquired under common control, it is included in the scope of consolidation from the date it first came under the common control with the Company, the net profit or loss of such subsidiary before the acquisition date should
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 also be separately disclosed in the consolidated income statement.
Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group. For subsidiaries acquired in a business combination involving entities not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable assets and liabilities at the acquisition date.
All significant inter-group balances, transactions and unrealized profits are eliminated in the consolidated financial statements. The portion of equity and net profits or losses of a subsidiary not belonging to the Company is recognized as minority interests and separately presented in equity and net profits respectively.
If the Company do not loss control of the subsidiary, the differences between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary at the transaction date are recorded in capitalization reserve for purchase from minority interests. If the capital surplus is not sufficient to be deducted, retained earnings should be adjusted.
In consolidated financial statements, the remaining equity shall be revalued on the basis of its fair value on the date on which control was lost. The sum of the consideration received on the disposal of equities and the fair value of the remaining equities less the net assets of the subsidiary company calculated on the basis of the original ownership percentage and consecutively from the purchase date shall be accounted for as investment income for the period in which control was lost. Other overall gains relevant to the equity investment in the subsidiary company originally owned shall be included in investment income for the period in which control was lost. The enterprise shall disclose in a note the fair value of the remaining equity on the date on which control was lost and the amount of any relevant gain or loss recalculated on a fair value basis.
7. Confirmation standard of cash and cash equivalent
Cash and cash equivalents comprise cash in hand, deposits held at call with bank and short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translating of foreign currency operations and foreign currency report form
(1)Foreign currency transactions
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the dates of the transactions.
At the balance sheet date, monetary items denominated in foreign currency are translated into RMB using the spot exchange rate on the balance sheet date. Exchange differences arising from these translations are recognised in profit or loss for the current period, except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition, construction or production of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currency that are measured in terms of historical cost are translated at the balance sheet date using the spot exchange rate at the date of the transaction. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for foreign operation are translated at the spot exchange rate on the balance sheet date. Among theowner’s equity items, the items other than “undistributed profits” are translated at the spot exchange rate of the transaction date. The income and expense items in the income statements of overseas businesses are translated at the spot exchange rate of the transaction date. The differences arising from the above translation are presented separately in theowner’s equities. The cash flows of overseas businesses are translated at the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instruments
(1) Categorizing of financial instruments
Classification of financial assets
Financial assets are classified into the following categories at initial recognition: at fair value through profit or loss, loans and receivables and financial assets available-for-sale. The classification of financial assets depends on theGroup’s intention and ability to hold the financial assets. The Group has no financial assets at fair value through profit or loss and financial assets held to maturity.
Receivables
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets includes notes receivable , accounts receivable and other receivable
Available for sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category or not classified in any of the other categories at initial recognition. Available-for-sale financial assets are included in other current assets on the balance sheet if management intends to dispose of them within 12 months after the balance sheet date.
Classification of financial liabilities
Financial liabilities are classified into the following categories at initial recognition: the financial liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities in the Group mainly comprise of other financial liabilities, including payables, borrowings and corporate bonds.
Payables comprise accounts payable and other payables, which are recognised initially at fair value and measured subsequently at amortised cost using the effective interest method
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently carried at amortised costs using the effective interest method.
Other financial liabilities within one year (including one year) is presented as current liabilities, while non-current financial liabilities due with one year (including one year) is reclassified as non-current liabilities due within one year. Others are presented as non-current liabilities.
(2) Recognition basis and measurement of financial instruments
Financial assets are recognised at fair value on the balance sheet when the Group becomes a party to the contractual provisions of the financial instrument. Transaction costs of financial assets carried at the fair value through profit or loss are expensed in the income statement; Transaction costs of other financial assets are included in financial assets at initial recognition.
Available-for-sale financial assets are subsequently measured at fair value. Investments in equity instruments are measured at cost when they do not have a quoted market price in an active market and whose fair value cannot be reliably measured. Loans and receivables are measured at amortised cost using the effective interest method.
A gain or loss arising from change in fair value of an available-for-sale financial asset is recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from the translation of monetary financial assets. When such financial asset is derecognised, the cumulative gain or loss previously recognised in equity is recognised in income statement. Interest on available for sale debt instrument, calculated using effective interest method, and cash dividends declared by the investee on available-for-sale equity instruments are recognised as investment income in income statement.
(3) Derecognition of financial assets
Financial assets are derecognized when: i) the contractual rights to receive the cash flows from the financial assets have expired; or ii) all substantial risks and rewards of ownership of the financial assets have been transferred; or iii) the control over the financial asset has been waived even if the Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the aggregate of consideration received and the accumulative amount of changes of fair value originally recorded in theowner’s equity is recognised in the income statement. (4) Derecognition of financial liabilities
A financial liability (or a part of financial liability) is derecognised when and only when the obligation specified in the contract is discharged or cancelled. The difference between the carrying amount of a financial liability (or a part of financial liability) extinguished and the consideration paid is recognised in the income statement.
(5) Determination of the fair value of the financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of a financial instrument for which the market is not active is determined by using a valuation technique. Valuation techniques include using prices of recent market transactions between knowledgeable, willing parties, reference to the current fair value of another
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 financial asset that is substantially the same with this instrument, and discounted cash flow analysis. When a valuation technique is used to establish the fair value of a financial instrument, management uses observable market data as much as possible and relies as little as possible on the Group-specific inputs.
(6) Impairment of financial assets
The Group assesses the carrying amount of financial assets at each balance sheet date. If there is objective evidence that the financial asset is impaired, the Group shall determine the amount of any impairment loss accounts.
Objective evidence which indicates the occurrence of impairment for available-for-sale equity instruments includes significant or non-temporary decrease of fair value of equity instruments investment. The Group conducts individual inspection on each available-for-sale equity instruments investment at balance sheet date, if the fair value of the available-for-sale equity instrument is less than its initial investment cost for more than50% (including50%) or less than its initial investment cost continually for more than 1 year, that means impairment incurred; if the fair value of the available-for-sale equity instrument is less than its initial investment cost for more than20% (including20%) but has not reached50%, the Group will comprehensively consider other factors such as price volatility to determine whether the equity instrument investment has been impaired.
If an impairment loss on a financial asset carried at amortized cost has been incurred, the amount of loss is measured at the difference between theasset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred). If there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the amount of reversal is recognized in income statement.
If the impairment for available-for-sale financial assets occurs, the cumulative loss arising from the decline in fair value that had been recognized directly in equity is removed from equity and recognized as impairment loss. For an available for sale debt instrument, if there is objective evidence that the value of the financial asset recovered and the recovery can be related objectively to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed and the amount of reversal is recognized in income statement. For an available for sale equity instrument, if there is objective evidence that the value recovered and the recovery can be objectively related to an event occurring after the impairment loss recognized, the previously recognized impairment loss is reversed and directly recognized in equity.
10. Recognition standard impairment and receivables
Receivables comprise accounts receivable and other receivables. Accounts receivable arising from sale of goods or rendering of services are initially recognized at fair value of the contractual payments from the buyer.
(1) Bad debt provision on receivable accounts with major amount individually
|||
|-|-|
||The basis or amount for individually significant receivables|
|Basis of recognition or standard amount of Receivables that are||
||is individually greater than 20 million.|
|individually significant||
||Receivables that are individually significant are subject to|
||separate impairment assessment. A provision for impairment|
||of the receivable is recognized if there is objective evidence|
|Basis of bad debt provision||
||that the Group will not be able to collect the full amounts|
||according to the original terms.|

(2) Receivables that are provided for provision on a basis of group
||||
|-|-|-|
|Name of the portfolio|Basis of bad debt provision|Basis of recognition for groups|
||according to percentage of|Receivables from third parties not impaired after separate|
|Portfolio 1|||
||balance method|assessment|
||according to percentage of||
|Portfolio 2||Receivables from related parties|
||balance method||

Accounts on age basis in the portfolio:
□Applicable√Non-applicable
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Accounts on percentage basis in the portfolio:
√Applicable□Non-applicable
||||
|-|-|-|
||Percentage of provision for|Percentage of provision for other|
|Name of the portfolio|||
||accounts receivable(%)|receivables(%)|
|Portfolio 1|2%|2%|
|Portfolio 2|0%|0%|

Accounts on other basis in the portfolio:
□Applicable√Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
|||
|-|-|
||A provision for impairment of the receivable is recognized if there is objective|
|Reason for providing bad debt individually:|evidence that the Group will not be able to collect the full amounts according to the|
||original terms.|
||The provision for impairment of the receivable is established at the difference|
|Basis of bad debt provision:|between the carrying amount of the receivable and the present value of estimated|
||future cash flows.|

11. Inventories
(1) Inventory classification
Inventories include manufacturing sector, presented at the lower of cost and net realisable value.
(2) Pricing of inventory to be delivered
Pricing method: weighted average
Manufacturing sector inventories include raw materials, work in progress, finished goods and turnover materials. Cost is determined using the weighted average method. The cost of finished goods and work in progress comprises raw materials, direct labour and an allocation of all production overhead expenditures incurred based on normal operating capacity.
(3) The determination of net realisable value and the method of provision for impairment of inventories Provisions for declines in the value of inventories are determined at the carrying value of the inventories net of their net realizable value. Net realizable value is determined based on the estimated selling price in the ordinary course of business, less the estimated costs to completion and estimated costs necessary to make the sale and relevant taxes.
(4) Inventory system
Inventory system: Perpetual inventory
(5) Low-value consumption goods and package material amortisation method
Low-value consumption goods
Amortization method: one-off amortization method
Package materials
Amortization method: one-off amortization method
12. Long-term equity investments
(1) Recognition of investment costs
For long-term equity investments acquired through a business combination: for long-term equity investments acquired through a
business combination involving enterprises under common control, the investment cost shall be the absorbingparty’s share of the
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 carrying amount ofowners’ equity of the party being absorbed at the combination date; for long-term equity investment acquired through a business combination involving enterprises not under common control, the investment cost shall be the combination cost. For long-term equity investments acquired not through a business combination: for long-term equity investment acquired by payment in cash, the initial investment cost shall be the purchase price actually paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost shall be the fair value of the equity securities issued. If the shares granted to the employee of subsidiaries are settled in equity instruments of the Company, the expenses, being determined at the fair value of the equity instruments on grant date, related to theemployees’ service in current period are recognized as part of the cost of investments in subsidiaries.
(2) Subsequent measurement and recognition of related profit and loss
For long-term equity investments accounted for using the cost method, they are measured at the initial investment costs, and cash dividends or profit distribution declared by the investees are recognized as investment income in profit 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 theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the long-term equity investment is measured at the initial investment cost; where the initial investment cost is less than theGroup’s share of the fair value of theinvestee’s identifiable net assets at the acquisition date, the difference is included in profit or loss and the cost of the long-term equity investment is adjusted upwards accordingly. For long-term equity investments accounted for using the equity method, the Group recognises the investment income according to its share of net profit or loss of the investee. The Group discontinues recognising its share of net losses of an investee after the carrying amount of the long-term equity investment together with any long-term interests that, in substance, form part of theinvestor’s net investment in the investee are reduced to zero. However, if the Group has obligations for additional losses and the criteria with respect to recognition of provisions under the accounting standards on contingencies are satisfied, the Group continues recognising the investment losses and the provisions. For changes inowners’ equity of the investee other than those arising from its net profit or loss, the Group records its proportionate share directly into capital surplus, provided that theGroup’s proportion of shareholding in the investee remains unchanged. The carrying amount of the investment is reduced by theGroup’s share of the profit distribution or cash dividends declared by an investee. The unrealised profits or losses arising from the intra-group transactions amongst the Group and its investees are eliminated in proportion to theGroup’s equity interest in the investees, and then based on which the investment gains or losses are recognised. For the loss on the intra-group transaction amongst the Group and its investees attributable to asset impairment, any unrealised loss is not eliminated.
(3) Basis for determining existence of control, jointly control or significant influence over investees
Control is the power to govern the financial and operating policies of the investee so as to obtain benefits from its operating activities. In determining whether the Company is able to exercise control over the investee, the effect of potential voting rights over the investee is considered, such as convertible debts and warrants currently exercisable, etc. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.
(4) Impairment test and providing of impairment provisions
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to the recoverable amount when the recoverable amount is less than the carrying amount. Once the impairment loss is recognized, it is not allowed to be reversed for any value recovered in the subsequent periods.
13. Fixed assets
(1) Recognition of fixed assets
Fixed assets comprise buildings, machinery and equipment, motor vehicles, computer and electronic equipment and office equipment. Fixed asset is recognized when it is probable that the economic benefits associated with the fixed asset will flow to the Group and its cost can be reliably measured. Fixed assets purchased or constructed by the Group are initially measured at cost at the time of acquisition. Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when it is probable that the
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 economic benefits associated with the fixed asset will flow to the Group and its cost can be reliably measured. The carrying amount of those parts that are replaced is derecognized and all the other subsequent expenditures are recognized in income statement when they are incurred.
(2) Depreciation of different fixed assets
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to their estimated residual values over their estimated useful lives. For the fixed assets being provided for impairment loss, the related depreciation charge is prospectively determined based upon the adjusted carrying amounts over their remaining useful lives.
The estimated useful life of fixed assets, net salvage value rate and annual depreciation rates are as follows:
|||||
|-|-|-|-|
|Categories|Depreciation age (year)|Salvage Value Rate (%)|Annual depreciation rate (%)|
|Houses & buildings|20-35|5%|2.71%~4.75%|
|Equipment & machinery|8-15|5%|6.33%~11.88%|
|Transportation equipment|5-8|0%|12.5%~20%|

(3) Impairment test and providing of impairment provisions on fixed assets
The carrying amount of fix assets is reduced to the recoverable amount when the recoverable amount is less than the carrying amount.
(4) Other remarks
A fixed asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The amount of proceeds on sale, transfer, retirement or damage of a fixed asset net of its carrying amount and related taxes and expenses is recognized in income statement.
14 Construction in process
(1) Categories of construction in process
Construction in progress is measured at actual cost. Actual cost comprises construction costs, Installation costs, borrowing costs that are eligible for capitalization incurred before the assets are ready for their intended use and other costs necessary to bring the fixed assets ready for their intended use.
(2) Standard and timing for transferring of construction in process to fixed assets
Construction in progress is transferred to fixed assets when the assets are ready for their intended use and are depreciate from the next month.
(3) Impairment test and providing of impairment provisions on construction-in-process
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is less than the carrying amount.
15. Borrowing costs
(1) Principle of the recognition of capitalized borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset that needs a substantially long
period of time of acquisition and construction for its intended use commence to be capitalized. The borrowing costs recorded as part
of the cost of the asset when expenditures for the asset and borrowing costs have been incurred, and the activities relating to the
acquisition and construction that are necessary to prepare the asset for its intended use have commenced.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (2) Capitalizing period of borrowing costs
The capitalization of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use, the borrowing costs incurred thereafter are recognized in income statement.
(3) Temporarily suspension of capitalizing period
Capitalization of borrowing costs is suspended when the acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
(4) Calculating of borrowing costs capitalizing
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalization, the amount of borrowing costs eligible for capitalization is determined by deducting any interest income earned from depositing the unused specific borrowings in the banks or any investment income arising on the temporary investment of those borrowings during the capitalization period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalization, the amount of borrowing costs eligible for capitalization is determined by applying the weighted average effective interest rate of general borrowings, to the weighted average of the excess amount of cumulative expenditures on the asset over the amount of specific borrowings. The effective interest rate is the rate at which the estimated future cash flows during the period of expected duration of the borrowings or applicable shorter period are discounted to the initial amount of the borrowings.
16. Intangible assets
(1) Pricing of intangible assets
Intangible assets including land use rights and, patents and exploitation rights, intangible assets are measured at cost.
(2) Estimation of service life of intangible assets with limited useful life
(a) Land use rights
Land use rights are amortized on the straight-line basis over the period of the land use rights from 30 to 70 years. If it is impracticable to allocate the amount paid for the purchase of land use rights and buildings between the land use rights and the buildings on a reasonable basis, the entire amount is accounted for as fixed assets.
(b) Patents
Patents are amortized on a straight-line basis over periods as stipulated by the contracts.
(c) Exploitation rights
The estimated useful life and amortization method for an intangible asset with an indefinite useful life is reviewed, and adjusted if appropriate at each financial year-end.
(d)Periodical review of useful life and amortisation method
The estimated useful life and amortisation method for an intangible asset with an indefinite useful life is reviewed, and adjusted if appropriate at each financial year-end.
(3) Providing of intangible asset impairment provisions
The carrying amount of intangible asset is reduced to the recoverable amount when the recoverable amount is less than the carrying amount.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (4) Dividing of research stage and development stage of internalR&D projects
The expenditure on an internal research and development project is classified into expenditure on the research phase and expenditure on the development phase based on its nature and whether there is material uncertainty that the research and development activities can finally create an intangible asset.
(5) Accounting of internalR&D expenses
Expenditure on the research phase is recognized in profit or loss in the period in which it is incurred. Expenditure on the development phase is recognized as an intangible asset only if all of the following standards are met:
 it is technically feasible to complete the intangible asset so that it will be available for use;
 management intends to complete the intangible asset and use or sell it;
 it can be demonstrated how the intangible asset will generate economic benefits;
 adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; and
 the expenditure attributable to the intangible asset during its development phase can be reliably measured.
Other development expenditures that do not meet the conditions above are recognized in income statement as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period. Capitalized expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date the asset is ready for its intended use.
17. Long-term prepaid expenses
Long-term prepaid expenses represent prepayments that should be amortized over more than one year. Long-term prepaid expenses are amortized on the straight-line basis over the expected beneficial period and are presented at cost net of accumulated amortization. 18. Provisions
(1) recognition of provisions
Provisions for restructuring, product warranties and onerous contracts are recognized when the Group has a present obligation, and it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be measured reliably. Provisions are not recognized for future operating losses.
(2) measure of provisions
Provisions are initially measured at the best estimate of the expenditure required to settle the related present obligation. Factors surrounding a contingency such as the risks, uncertainties and the time value of money are taken into account as a whole in reaching the best estimate of an estimated liability. Where the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. The increase in the discounted amount of the estimated liability arising from passage of time is recognized as interest expense.
On each balance sheet date, balances of provisions are reviewed and adjusted where necessary, to reflect the current best estimate. 19. Share-based Payment and equity instruments
(1) Category of Share-based Payment
Share-based payment is a transaction in which the entity received services from employee or other parties in exchange of equity instruments of the entity, or settlement based on the price of theentity’s equity instruments. Share-based payment plan is be classified
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 as either equity-settled share-based payments or cash-settled share-based payments. TheGroup’s restricted A share incentive scheme which is equity-settled share based payment to receive employee service by transferring equity instruments to employees in subsidiaries is measured at fair value of the equity instruments granted on grant date. If subsequent information indicates that the number of equity instruments expected to vest differs from previous estimate, the Group shall revise the estimate accordingly and adjust the number of shares to actual exercised.
(2) Method for determination of equity instrument fair value
The fair value of equity instruments of subsidiaries is determined by the appraisal institutions.
(3) The basis of determining the number of equity instruments expected to be vest
On each balance sheet date during the vesting period, the Group revise its estimates of the number of equity instruments that are expected to vest based on the latest employee turnover rate and other information.
20. Revenue
(1) Recognition time for sales of goods
The Group mainly sells flat and engineer glass and products related to solar energy. For domestic sales, the Group delivers the products to a certain place specified in the contract. When the buyer takes over the goods, the Group recognizes revenue. For export sales, the Group recognizes the revenue when it finished clearing goods for export and delivering the goods on board the vessel, or when the goods are delivered to a certain place specified in the contract. For above sales, when the buyer takes over the goods, the buyer has the right to sell the products, and should bear the risk of price fluctuation or goods damage.
(2) Recognition of income from using rights of transfer assets
Interest income is recognised on a time-proportion basis using the effective interest method.
(3) Recognition of income from service providing
Income from service providing is recognized when the Group finished providing the service.
21. Government grants
(1) Categories
Government grants are the monetary asset the Group receives from the government for free, including tax refund, government subsidies, etc.
(2) Accounting policy
Grants from the government are recognized when there is a reasonable assurance that the grants will be received and the Group will comply with all attached conditions. Government grants are measured at the amounts received or receivable. The non-monetary government grant are measured at fair value, if the fair value cannot be reliably obtained, it is measured at nominal amount. Government grants relating to assets are those granted by the government for the purchase of long-term assets. Government grants relating to income are those other than the government grants relating to assets.
Government grants relating to assets are recognized as deferred income and are credited to the income statement on a straight-line basis over the expected lives of the related assets. The government grants measured at nominal amount is credited to the income statement directly.
Government grants relating to income, which is used to compensate the expenses/costs incurred in future, are recognized as deferred
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 income and then credited to the income statement over the period necessary to match them with the expenses that they are intended to compensate. Government grants relating to income, which is used to compensate the expenses/costs incurred in the past, are credited to the income statement directly.
22. Deferred tax asset and deferred tax liability
(1) Basis for recognition of Deferred tax asset
Deferred tax assets are calculated and recognized based on the differences arising between the tax base of assets and liabilities and their carrying amount (temporary differences). Deferred tax assets are only recognized for deductible temporary differences, deductible losses and tax credits to the extent that it is probable that taxable profit will be available in the future against which the deductible temporary differences, deductible losses and tax credits can be utilized. When it is probable that the temporary differences arising from investments in subsidiaries and associates will be reversed in the foreseeable future and that the taxable profit will be available in the future against which the temporary differences can be utilized, the corresponding deferred tax assets are recognized.
(2) Basis for recognition of deferred income tax liabilities
Deferred tax liabilities are calculated and recognized based on the differences arising between the tax base of assets and liabilities and their carrying amount (temporary differences). Deferred tax liabilities are recognized for temporary differences arising from investments in subsidiaries, joint ventures and associates, except where the Group is able to control the timing of the reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset and presented on net basis when:
 The deferred taxes are relate to the same taxable entity with same taxation authority, and;
 That entity has a legally enforceable right to offset current tax assets against current tax liabilities.
23. Operating lease and finance lease
(1) Accounting of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease.
24. Held-for-sale assets
(1) Recognition of held-for-sale assets
The conditions for a non-current asset or disposal group to be classified as held-for-sale are as follows: 1) The Group has determined to dispose non-current assets or part of business; 2) The Group has signed an irrevocable transfer agreement with assignee; 3) The sale should be completed, or expected to be so, within a year from the date of the classification.
(2) Accounting treatment of held-for-sale assets
Non-current assets or disposal groups (not including financial assets and deferred tax assets) that are classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell. The difference between fair value less costs to sell and carrying amount should be presented as impairment loss.
A discontinued operation is a component of an entity that either has been disposed of or is classified as held for sale, which is single part of operation and draw up financial statements.
25. Changes of major accounting policy and assumption
Is there any change of major accounting policy or assumption in the report period?
□ Yes√ No
See the following explanation:
Critical accounting assumptions
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 The Group continually evaluates the critical accounting estimates and key judgments applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below:
(a)Corporate income tax
The Group is subject to income taxes in numerous jurisdictions. There are many transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgment is required from the Group in determining the provision for income taxes in each of these jurisdictions. The Group recognizes income taxes in each jurisdiction based on estimates. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
(b)Deferred tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year. Change of the future tax rate as well as the reversed time of temporary difference might have effects on tax expense (income) and the balance of deferred tax assets or liabilities. Those estimates may also cause significant adjustment on deferred tax.
(c)Impairment of long-term assets (excluding goodwill)
Long-term assets at the balance sheet date should be subject to impairment testing if there are any indications of impairment. The management determines whether the long-term assets impaired or not by evaluating and analysing following aspects: (1) whether the event affecting assets impairment occurs; (2) whether the expected obtainable present value of future cash flows is lower than theasset’s book value by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable present value of future cash flows are appropriate.
The Company made various assumptions, including the future cash flows and discount rate related to non-current assets. If these assumptions cannot be conformed, the recoverable amount should be modified, and the long-term assets may be impaired accordingly.
(d)The useful life of fixed assets
The management estimates the useful life of fixed assets, based on historical experiences on using fixed assets that have similar properties and functions. When there are differences between actually useful life and previously estimation, the management will adjust estimation to useful life of fixed assets. The fixed assets would be written off or written down when fixed assets been disposed or became redundant. There will be difference between the results of estimation and actual results next accounting period, so that may have significant adjustments to fixed assets in balance sheet.
(1)Changes of major accounting policy
Is there any change of major accounting policy in the report period?
□ Yes√ No
(2)Changes of major accounting assumption
Is there any change of major accounting assumption in the report period?
□ Yes√ No
V. Taxation
1. Main categories and rates of taxes
||||
|-|-|-|
|Tax items|Tax basis|Tax rate|
||Taxable value added amount (Tax payable is||
||calculated using the taxable sales amount multiplied||
|Value added tax (“VAT”)||17%|
||by the effective tax rate less current period’s||
||deductible VAT input )||
|Business tax|Taxable turnover|5%|
|Urban construction tax|Total VAT, Business tax and GST|1%-7%|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Enterprise income tax|Taxable income|15%-25%|
||a certain proportion of the residual value of the||
|Building tax||1.2%|
||property||
|Resource tax|Quantities of Silica sold|RMB 3 per ton|

2. Preferential tax and approving documents
Tianjin CSG Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2012, and obtained the Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to15% tax rate three years since 2012.
Tianjin CSG Energy Conservation Glass Co., Ltd. was recognized as a high and new tech enterprise in 2012, and obtained the Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to15% tax rate three years since 2012. Dongguan CSG Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to15% tax rate three years since 2013.
Sichuan CSG Energy Conservation Glass Co., Ltd. was being applied for preferential tax for Western Development, and corporate income tax rate15% was provisionally applied for calculation of corporate income tax during the report period.
Wujiang CSG East China Architectural Glass Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013. The review of its high and new tech enterprise status was under processing. Corporate income tax rate15% was provisionally applied for calculation of corporate income tax during the report period.
Dongguan CSG Solar Glass Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013. The review of its high and new tech enterprise status was under processing. Corporate income tax rate15% was provisionally applied for calculation of corporate income tax during the report period.
Yichang CSG Polysilicon Co., Ltd. was recognized as a high and new tech enterprise in 2011, valid up to 2013. The review of its high and new tech enterprise status was under processing. Corporate income tax rate15% was provisionally applied for calculation of corporate income tax during the report period.
Dongguan CSG PV-tech Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to15% tax rate three years since 2013.
Hebei Panel Glass Co., Ltd. was recognized as a high and new tech enterprise in 2013, and obtained the Certificate of High and New Tech Enterprise. The period of validity is three years. It applies to15% tax rate three years since 2013.
3. Other statements
The Company has used the “exempt, credit, refund” method on goods exported and the refund rate is5%-17%.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 VI. Consolidating of entities and consolidated financial statements
1. Particulars of the subsidiaries
(1) Subsidiaries obtained through incorporation or investment
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Full name of the subsidiary||Reg. Add.|||Business Scope||||||||Balance of the|
||||||||||||||owners’ equity of|
|||||||||||||Amount for||
||Owne||||||||||||parent co. after|
||||||||Balance of other|||||deducting|deducting of the|
||rship|||||||||||||
||of||Business|Registered||Actualinvestment at|items actuallyformed net|Shareproportion|Voting|Consolidat|Minorshareholders’|minorshareholder’|exceeding part ofminority|
||thesubsidiary||property|capital||year end|investment in thsubsidiaries|e %|power %|ed|equity|s equity inthe minorshareholder’|shareholders’ shareof loss over theshare of minority|
|||||||||||||s equity|shareholders in the|
||||||||||||||owners’ equity at|
||||||||||||||beginning of year|
||||||Development &|||||||||
|||Chengdu,|Manufacturi|||||||||||
|Chengdu CSG Glass Co., Ltd.|Direct|||166,660,000|Production & sales|124,995,000||75%|75%|YES|81,940,982|||
|||the PRC|ng|||||||||||
||||||of specialized glass|||||||||
|Sichuan CSG Energy Conservation||Chengdu,|Manufacturi|||||||YES||||
||Direct|||80,000,000|Processed glass|60,000,000||75%|75%||36,902,331|||
|Glass Co., Ltd.||the PRC|ng|||||||||||
|Tianjin CSG Architectural Glass Co.,||Tianjin, the|Manufacturi|||||||YES||||
||Direct|||178,000,000|Processed glass|178,000,000||100%|100%|||||
|Ltd.||PRC|ng|||||||||||
||||||Development &|||||YES||||
|Tianjin Energy Conservation Glass|Direct|Tianjin, the|Manufacturi|128,000,000|Production & sales|128,000,000||100%|100%|||||
|Co., Ltd.||PRC|ng||of energy-saving|||||||||
||||||specialized glass|||||||||
|Dongguan CSG Architectural Glass||Dongguan,|Manufacturi|||||||YES||||
||Direct|||240,000,000|Processed glass|240,000,000|170,000,000|100%|100%|||||
|Co., Ltd.||the PRC|ng|||||||||||
|||Dongguan,|Manufacturi||Production & sales|||||YES||||
|Dongguan CSG Solar Glass Co., Ltd.|Direct|||416,000,000||416,000,000||100%|100%|||||
|||the PRC|ng||of solar glass|||||||||
||||||Production & sale|||||YES||||
|||Yichang, the|Manufacturi|1,467,980,000||||||||||
|Yichang CSG Silicon Co., Ltd.|Direct|PRC|ng||of silicon related|766,390,000||100%|100%|||||
||||||materials|||||||||
|Wujiang CSG North-east Architectural||Wujiang, the|Manufacturi|||||||YES||||
||Direct|||320,000,000|Processed glass|320,000,000||100%|100%|||||
|Glass Co., Ltd.||PRC|ng|||||||||||
||||||Production of solar|||||YES||||
|Dongguan CSG PV-tech Co., Ltd.|Direct|Dongguan,the PRC|Manufacturing|516,000,000|battery and|294,000,000||100%|100%|||||
||||||applications|||||||||
|||Yongqing,|Manufacturi||Production & sales|||||YES||||
|Hebei CSG Glass Co., Ltd.|Direct|||USD 48,060,000||295,703,568||100%|100%|||||
|||the PRC|ng||of specialized glass|||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Wujiang, the|Manufacturi||Production & sales||||YES||
|Wujiang CSG Glass Co., Ltd.|Direct|||465,040,000||465,040,000|100%|100%|||
|||PRC|ng||of specialized glass||||||
|China Southern Glass (Hong Kong)|||||Trading and||||YES||
||Direct|Hong Kong|Trading|HKD 86,440,000||68,616,072|100%|100%|||
|Limited|||||investment holding||||||
||||||Production & sales||||YES||
|Hebei Panel Glass Co., Ltd.|Direct|Yongqing,the PRC|Manufacturing|243,000,000|of ultrathin|243,000,000|100%|100%|||
||||||electronic glass||||||
||||||Development &||||YES||
|Xianning CSG Glass Co Ltd|Direct|Xianning,thePRC|Manufacturing|235,000,000|Production & sales|245,280,000|100%|100%|||
||||||of specialized glass||||||
|Xianning CSG Energy Conservation||Xianning,the|Manufacturi||||||YES||
||Direct|||165,000,000|Processed glass|123,750,000|75%|75%||51,066,837|
|Glass Co., Ltd.||PRC|ng||||||||
||||||Development &||||YES||
|Qingyuan CSG Energy Saving New|Direct|Qingyuan,th|Manufacturi|300,000,000|Production & sales|300,000,000|100%|100%|||
|Materials Co.,Ltd||e PRC|ng||of Nonmetallic||||||
||||||mineral products||||||
||||||Production and||||YES||
|Jiangyou CSG Mining Development||Jiangyou,|Manufacturi||||||||
|Co., Ltd.|Direct|the PRC|ng|40,000,000|sales of silica sand|40,000,000|100%|100%|||
||||||and its products||||||

Other notes of subsidiaries by establishment or investment
i. The proportion of voting power is determined on the proportion of theCompany’s directors to the total directors of the subsidiary.
a. Approved by the document[2013] No. 413 of Sichuan Industry and Commerce Bureaul, the Company's subsidiary, Chengdu CSG Glass Co., Ltd.was divided into two companies Chengdu CSG Glass Co., Ltd. and Sichuan Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Sichuan Energy Conservation Glass Co., Ltd. was January 6, 2014.
b. Approved by the document[2014] No. 5 of Xianning Industry and Commerce Bureaul, the Company's subsidiary, Xianning CSG Glass Co., Ltd., was divided into two companies Xianning CSG Glass Co., Ltd. and Xianning Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Xianning Energy Conservation Glass Co., Ltd. was March 18, 2014.
c. On December 25, 2013, the Company signed an agreement with Yichang Liyuan Technology Development Co., Ltd. (abbr. "Liyuan") to acquire6.03% equity of Yichang CSG Polysilicon Co., Ltd. (abbr. " Yichang CSG Polysilicon ") held by Liyuan. The transfer procedure was completed on January 20, 2014.
d. On June 9, 2014, the Company's subsidiary, CSG (Hong Kong) Limited signed an agreement with Jinfeng Co., Ltd. (abbr. "Jinfeng") to acquire25% equity of Xianning CSG Glass Co., Ltd. (abbr. " Xianning CSG ") held by Jinfeng . The transfer procedure was completed on June 25, 2014.
Difference between the net book value of assets acquired and the acquisition cost analyzed as follows:
|||||
|-|-|-|-|
||total|Xianning CSG|Yichang polysilicon|
|Cost of purchanse-cash paid|124,944,929|69,030,000|55,914,929|
|Book net asset book on the basis of new equity ratio calculation|(117,284,199)|(64,063,838)|(53,220,361)|
|difference(Offset against capital reserve)|7,660,730|4,966,162|2,694,568|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (2) Subsidiary acquired through business combination involving entites not under common control
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance of the|
|||||||||||||Amount for|owners’ equity of|
||Owne|||||||||||||
||||||||Balance of other||||||parent co. after|
|||||||||||||deducting||
||rship||||||||||||deducting of the|
||of||Business|Registered|Business|Actual|items actually|Share|Voting|Consolidat|Minorshareholders’|minorshareholder’s|exceeding part of|
|Full name of the subsidiary|the|Reg. Add.|property|capital|Scope|investment atyear end|formed netinvestment in th|proportione %|power %|ed|equity|equity in the|minorityshareholders’ share of|
||subsidiary||||||subsidiaries|||||minorshareholder’s|loss over the share of|
||||||||||||||minority shareholders|
|||||||||||||equity||
||||||||||||||in the owners’ equity|
||||||||||||||at beginning of year|
|China Southern Glass (Australia)|Direct|Australia|Trading||Trading of|||||||||
|||||AUD 500,000||2,903,200||51%|51%|YES|2,569,445|||
|Limited|||||glass|||||||||
|Yichang Nanbo Photoelectric Glass|Direct|Yichang, the|Manufactu||Production &|||||||||
|Co., Ltd.||PRC|ring|200,000,000|sales of|157,461,200||73.58%|66.70%|YES|55,051,529|||
||||||ultrathin|||||||||
||||||electronic glass|||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 2. Change of consolidation range
Change of consolidation range:
√applicable□Not applicable
New entities included in the consolidation range in the report period compared with the same period of last year
a. Approved by the document[2013] No. 413 of Sichuan Industry and Commerce Bureau, the Company's subsidiary, Chengdu CSG Glass Co., Ltd. was divided into two companies Chengdu CSG Glass Co., Ltd. and Sichuan Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Sichuan Energy Conservation Glass Co., Ltd. was January 6, 2014. b. Approved by the document[2014] No. 5 of Xianning Industry and Commerce Bureau, the Company's subsidiary, Xianning CSG Glass Co., Ltd., was divided into two companies Xianning CSG Glass Co., Ltd. and Xianning Energy Conservation Glass Co., Ltd. by the way of existence and division. The establishment date of Xianning Energy Conservation Glass Co., Ltd. was March 18, 2014. c. On 11 March 2014, the Company signed an agreement with third party, Truly Wealth Limited to purchase its2% shares of China Southern Glass (Australia) Limited. On 1 April 2014, the transfer procedure was completed, therefore, the Company obtained the control right and China Southern Glass (Australia) Limited incorporated into the consolidation range of the Company. The equity of China Southern Glass (Australia) Limited held by the Company increased from49% to51%. On the combination day, the Company gained AUD 16,107 of net assets of China Southern Glass (Australia) Limited with dealing price of AUD 10,000.
Entities excluded in the consolidation range in the report period compared with the same period of last year
On 11 September 2013, the Company signed an irrevocable equity transfer agreement with third party, Golden Time Investment Consultant (Shenzhen) Co., Ltd. to dispose its100% shares of Shenzhen CSG Float Glass Co., Ltd. at RMB 918,000,000. The disposal was completed in April 2014 and the disposal subsidiary was excluded the consolidation range of the Company.
3. The new subsidiaries in the scope of the consolidation and the subsidiaries not in the scope of consolidation in the report period
Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or leasing added to the consolidation range in the report period.
Unit: RMB
||||
|-|-|-|
|Name|Net assets at the end of the period|net profit of the period|
|China Southern Glass (Australia) Limited (i)|5,243,766|2,317,630|

 Subsidiaries, entities with special purpose, or entities on which the Company has controlling power through entrusted operation or leasing excluded from the consolidation range in the report period.
Unit: RMB
||||
|-|-|-|
|||Net profit from year beginning to|
|Name|Net asset of disposal day||
|||disposal day|
|Shenzhen CSG Float Glass Co., Ltd (ii)|606,752,936|-3,233,271|

 Other statements on entities included to or excluded from the consolidation range in the report period
4. Business combination involving entities not under common control in the report period
On 11 March 2014, the Company acquired2% in China Southern Glass (Australia) Limited from Truly Wealth Co. Ltd. On1 April 2014, the transfer procedure was completed, and the equity was increased to51% when the Company obtained the control of China Southern Glass (Australia) Limited. On the combination day, The Company obtained net asset of AUD 16,107 with transfer price of AUD 10,000.
Whether there was corporate merger realized through multiple transactions and gained control in the report period
□ applicable√ Not applicable
5. Loss of subsidiary resulted from disposal of equity interest in the report period
||||
|-|-|-|
|Name of subsidiary|Disposal date|Recognition method of gains/loss|
|Shenzhen CSG Float Glass Co., Ltd (i)|2014-4-30|See the followings|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Other statements on loss of subsidiary resulted from disposal of equity interest
i. On 11 September 2013, the Group signed an irrevocable equity transfer agreement with third party, Golden Time Investment Limited, to dispose its100% shares of Shenzhen CSG Float Glass Co., Ltd at RMB 918,000,000. The disposal was completed on April 2014.
a. Disposal consideration and cash flow are shown as follows:
Shenzhen CSG Float Glass Co., Ltd Disposal consideration
918,000,000 Cash and cash equivalents received 918,000,000Including：Cash and cash equivalents 468,000,000 received
Less: Cash held by disposed company 4,839,877 Net cash received in the year 2014 463,160,123 b. Net assets of disposed companies are as follows:
Shenzhen CSG Float Glass Co., Ltd
处置日 2013年12月31日 Current asset 57,070,456 31,639,616 Non-current asset 900,746,922 898,367,347 Current liability 333,839,442 86,270,756 Non-current liability 17,225,000 233,750,000 Net asset 606,752,936 609,986,207 c. Profit or loss from disposal are shown as follows:
Shenzhen CSG Float Glass Co., Ltd
918,000,000 Consideration
Add: Fair value of retained equity interests on
disposal date
Add: Minority interest of disposed companies on
disposal date
Add: Other comprehensive income of disposed
companies recycled to profit and loss
Less: Net assets of disposed companies on
606,752,936 disposal date
Investment income
311,247,064 d. Revenue, cost and loss from 1 January 2014 to the date of disposal date are shown as follows:
Shenzhen CSG Float Glass Co., Ltd
15,302,711 Revenue
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 19,613,738 Less: Cost and expenses
-4,311,027 Total Loss
-1,077,756 Less: Income tax
-3,233,271 Net Loss
6.Exchange rate for the translation of the major foreignoperations’ financial statements
Asset and Liability Items
30 June 2014 31 December 2013 China Southern Glass (Hong Kong) Limited
1HKD
=0.7938RMB
1HKD=0.7862 RMB China Southern Glass (Australia) Limited 1AUD=5.8064 RMB 1AUD=5.4301 RMBShareholders’ equity items, income, expenses and cash flow items other than undistributed profit are calculated by adopting spot exchange rate at the transaction date.
Whether there was dispose realized through multiple transactions and lost control in the report period
□ applicable√ Not applicable
VII. Notes to key items in the consolidated financial statements
1. Monetary fund
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items|Amount of foreign|Exchange|Amount RMB|Amount of foreign|Exchange|Amount RMB|
||currency|rate||currency|rate||
|Cash :|--|--|22,746|--|--|32,108|
|RMB|--|--|17,608|--|--|28,169|
|HKD|5,010|0.7938|3,977|5,010|0.7862|3,939|
|AUD|200|5.8064|1,161||5.4301||
|EUR||8.3946|||8.4189||
|Cash at bank:|--|--|286,306,259|--|--|276,313,987|
|RMB|--|--|257,214,259|--|--|257,353,099|
|HKD|3,745,591|0.7938|2,973,250|5,657,232|0.7862|4,447,716|
|AUD|2,926,166|5.8064|16,990,490||5.4301||
|USD|1,402,077|6.1528|8,626,699|2,367,220|6.0969|14,432,704|
|EUR|59,748|8.3946|501,561|9,558|8.4189|80,468|
|JPY||0.0608|||0.0578||
|Other|||||||
|monetary|--|--|1,407,230|--|--|3,326,428|
|balances|||||||
|RMB|--|--|1,332,885|--|--|3,326,428|
|HKD||0.7938|||0.7862||
|AUD|12,804|5.8064|74,345||5.4301||
|Total|--|--|287,736,235|--|--|279,672,523|

If any mortgage, pledge or freeze on the use of constraints, stored in the offshore, the potential recovery of payment with risk should
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 be made a separate description
Other cash balances include margin deposits for issuing letters of credit and bank acceptance notes, amounted to RMB1,200,791 (31 December 2013: RMB3,221,655), which is restricted cash.
2. Notes receivable
(1) Categories of notes receivable
Unit: RMB
||||
|-|-|-|
|Categories|End of term|Beginning of term|
|Trade acceptance notes|29,614,019|25,249,258|
|Bank acceptance notes|277,727,159|298,640,232|
|Total|307,341,178|323,889,490|

 (2)Bill receivable pledged at the end of the period
Unit: RMB
||||||
|-|-|-|-|-|
|Billing unit|Billing date|Due date|amount|Note|
|Global Canadian Solar (Suzhou)|2014-5-15|2014-11-15|6,750,000||
|Suntech|2014-5-30|2014-11-30|5,000,000||
|Wuhan Lingyun Architectural|||||
||2014-5-4|2014-11-04|4,603,992.85||
|Decoration Engineering Co. Ltd.|||||
|Guangzhou Jianghe Curtain Wall|||||
||2014-3-11|2014-9-11|4,369,186.24||
|system Engineering Co. Ltd|||||
|Shenyang Yuanda Aluminium|||||
||2014-4-28|2014-10-28|4,000,000||
|Industry Engineering Co., Ltd|||||
|Total|--|--|24,723,179.09|--|

 3. Account receivable
(1) Account receivable presented on categories
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||End of term|||||Beginning of term||||
||Book balance||Bad debt provision||Book balance|||Bad debt provision||
|Categories||||||||||
|||Proportion||Proportion|||Proportion|||
||Amount||Amount||Amount|||Amount||
|||%||%|||%||Proportion %|
|Receivables provided bad debt provision in Portfolios||||||||||
|Portfolio1|246,533,341|100%|5,013,649|2%|135,011,681||96%|2,779,130|2%|
|Portfolio2|4,096,621|0%|0|0%|4,198,132||3%|0|0%|
|Sub-total of|250,629,962|100%|5,013,649|2%|139,209,813||99%|2,779,130|2%|
|Portfolios||||||||||
|Account receivable|1,191,530|0%|1,191,530|100%|1,176,952||1%|1,176,952|100%|
|with minor||||||||||
|individual amount||||||||||
|but bad debt||||||||||
|provision is||||||||||
|provided||||||||||
|Total|251,821,492|--|6,205,179|--|140,386,765||--|3,956,082|--|

Remarks on categories of receivable accounts:
As at 30 June 2014, accounts receivable of RMB1,191,530 (31 December 2013: RMB1,176,952) was not individually significant but
provided for bad debts separately, It represented the trade receivables of Dongguan South Glass Photovoltaic Technology co., LTD. ("
Dongguan South CSG PV "). Due to the business dispute, Dongguan South CSG PV made full provision against this receivable.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Receivable accounts with large amount individually and bad debt provisions were provided
□ Applicable√ Non-applicable
Receivable accounts on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable√ Non-applicable
Receivable accounts on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
|Name of portfolio|Book balance|Proportion %|Bad debt provision|
|Portfolio 1|246,533,341|2%|5,013,649|
|Portfolio 2|4,096,621|0%|0|
|Total|250,629,962|--|5,013,649|

 Receivable accounts on which bad debt provisions are provided by other ways in the portfolio
□ Applicable√ Non-applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
√Applicable□ Non-applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Description of the|||||
||Book balance|Amount of bad debt|Providing rate (%)|Reason|
|receivable accounts|||||
|||||Due to the business|
|||||dispute, made full|
|loan|1,191,530|1,191,530|100%||
|||||provision against this|
|||||receivable.|
|Total|1,191,530|1,191,530|--|--|

(2) Top 5 debtors in the receivable accounts
Unit: RMB
||||||
|-|-|-|-|-|
||Relation with the||||
|Name of the companies||||Portion in total|
|||Amount|Ages||
|||||receivables(%)|
||Company||||
|Company A|Independent third party|32,656,571|Within 1 year|13%|
|Company B|Independent third party|26,764,397|Within 1 year|11%|
|Company C|Independent third party|22,128,297|Within 1 year|9%|
|Company D|Independent third party|17,817,406|Within 1 year|7%|
|Company E|Independent third party|10,196,163|Within 1 year|4%|
|Total|--|109,562,834|--|44%|

 (3) Receivable accounts of associated enterprise
Unit: RMB
|||||
|-|-|-|-|
|Name|Relationship with the Company|Amount|Proportion of the total amount|
|Shenzhen CSG Display||||
||associated enterprise|4,096,621|1.62%|
|Technology Co. Ltd||||
|Total|--|4,096,621|1.62%|

 4. Other account receivable
(1) Other receivable account on categories
Unit: RMB
||||
|-|-|-|
|Categories|End of term|Beginning of term|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||
|-|-|-|-|-|-|-|-|-|
||Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion %||Proportio||Proportion%||Proportio|
||||Amount||Amount||Amount||
|||||n %||||n %|
|Other receivables provided bad debt provision in Portfolios|||||||||
|Portfolio1|41,884,680|100%|493,729|1.18%|89,233,730|81%|359,449|0.40%|
|Portfolio2|||||20,491,742|19%|||
|Sub-total of Portfolios|41,884,680|100%|493,729|1.18%|109,725,472|100%|359,449|0.30%|
|Total|41,884,680|--|493,729|--|109,725,472|--|359,449|--|

 Statement on categories of other receivable accounts:
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□ Applicable√ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable√ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
|Name of portfolio|Book balance|proportion%|Bad debt provision|
|portfolio 1|41,884,680|1.18%|493,729|
|Total|41,884,680|--|493,729|

 Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable√ Non-applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of period
□ Applicable√ Non-applicable
(2) Top 5 debtors of other receivable accounts
Unit: RMB
||||||
|-|-|-|-|-|
|Name of the companies|Relation with the|Amount||Portion in total other|
||||Ages||
|Industrial|Company|||receivables (%)|
|Company A|Independent third party|17,093,750|Within 1 year|41%|
|Company B|Independent third party|5,670,669|Within 1 year|14%|
|Company C|Independent third party|5,050,000|Within 1 year|12%|
|Company D|Independent third party|1,240,500|Within 1 year|3%|
|Company E|Independent third party|1,000,000|Within 1 year|2%|
|Total|--|30,054,919|--|72%|

 5. Prepayment
(1) Prepayment presented by ages:
Unit: RMB
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|Age||Proportion||Proportion|
||Amount||Amount||
|||ratio (%)||ratio (%)|
|within 1 year|113,812,518|95.44%|64,425,812|87.80%|
|1-2 years|830,039|0.70%|1,194,891|1.63%|
|2-3 years|355,376|0.30%|||
|Over 3 years|4,248,801|3.56%|7,757,626|10.57%|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||
|-|-|-|-|-|
|Total|119,246,734|--|73,378,329|--|

 (2) Top 5 receivers of prepayments
Unit: RMB
||||||
|-|-|-|-|-|
||Relation with the||||
|Name of the companies||Amount|Date|Reason of unsettled|
||Company||||
|Supplier A|Independent third party|12,131,001|2014|Prepayment for gas|
||Independent third party|||Prepayment for|
|Supplier B||8,575,917|2014||
|||||equipment purchase|
||Independent third party|||Prepayment for|
|Supplier C||7,848,951|2014||
|||||equipment purchase|
||Independent third party|||Prepayment for|
|Supplier D||6,346,318|2014||
|||||equipment purchase|
||Independent third party|||Prepayment for|
|Supplier E||6,035,909|2013||
|||||equipment purchase|
|Total|--|40,938,096|--|--|

(3) Statements on prepayments
The balances of advance to suppliers are dominated in RMB.
6. Inventories
(1) Categories of inventory
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Raw materials|175,484,780|1,861,067|173,623,713|172,776,858|3,460,876|169,315,982|
|Product in process|20,382,822||20,382,822|11,390,574||11,390,574|
|Products in stock|213,187,553|21,650|213,165,903|159,807,342|674,152|159,133,190|
|Material in|||||||
||35,986,109||35,986,109|38,844,966||38,844,966|
|circulation|||||||
|Total|445,041,264|1,882,717|443,158,547|382,819,740|4,135,028|378,684,712|

 (2) Inventory impairment provision
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Balance of book||Decreased this term|||
||||||Balance of book value|
|Categories|value at beginning of|Provided this term|Written back|Transferred|at end of term|
||term|||||
|Raw materials|3,460,876|||1,599,809|1,861,067|
|Products in stock|674,152|||652,502|21,650|
|Total|4,135,028|||2,252,311|1,882,717|

 (3) Inventory impairment provisions
|||||
|-|-|-|-|
|||Reason of|Percentage of amount written|
|Items|Basis of providing impairment provision|||
|||written back|back in the balance of the|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|||inventory at end of report term|
|Raw materials|The amount of book value reduce net realizable value||
|Products in stock|The amount of book value reduce net realizable value||

7. Other current assets
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|fixed assets held for sale||714,861,781|
|construction in progress held for sale||96,289,101|
|intangible assets held for sale||41,240,723|
|Deductible input value-added tax|187,292,116|169,072,490|
|Total|187,292,116|1,021,464,095|

 8. Available-for-sale financial asset
(1) Available-for-sale financial assets
Unit: RMB
||||
|-|-|-|
|Items|Fair value at the end of term|Fair value at the beginning of term|
|Available-for-sale equity instruments|135,900,000|122,760,000|
|Total|135,900,000|122,760,000|

 The held-to-maturity investments in this term are reclassified as available-for-sale financial assets, the amount of the reclassification in this term is RMB0. This amount holds0% of the proportion of total of held-to-maturity investments before reclassification. Statement on available-for-sale financial assets:
Available-for-sale equity instrument is theGroup’s investment in Guangdong Golden Glass Technologies Limited(“Golden Glass”). The Group held 18,000,000 shares of Golden Glass and had8.33% voting rights.
The fair value of the available for sale equity instrument was determined by reference to the quoted market price of Golden Glass. this year, the fair value loss (net of income tax) is RMB 10,115,238 (Jan.to Jun. 2013:income of RMB 9,083,510) had been included in capital reserve.
9. Investment to joint venture and associated enterprise
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Proportion of||||||
||Equity|||||||
|||the right to|Total asset at|Total liabilities|Total net asset|||
|Name of the|proportion|||||Total revenue|Net profit of|
|||vote for the|the end of the|at the end of|at the end of|||
|invested unit|held by the|||||of the period|the period|
|||Company in|period|the period|the period|||
||Company|||||||
|||the investor||||||
|1. Joint venture||||||||
|2.Associated enterprise||||||||
|Shenzhen CSG||||||||
|Display||||||||
||44.70%|44.70%|1,540,983,231|694,446,708|846,536,523|302,446,982|154,510,001|
|Technology Co.,||||||||
|Ltd||||||||

10. Long-term equity investment
(1) Details of long-term equity investment
Unit: RMB
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Statement on|||Cashdividend ofthe currentterm|
|||||||||||Impairme||
|||||||Percentag|Voting|differences|Impai|||
|Company|Calculati|Initial costs|Beginning|Changed by|Ending balance|e of share|power|between the|rment|ntprovision||
|invested in|ng basis||balance|||in the|in the|shareholding|provi|||
|||||||firm %|firm %|and voting|sion|providedthis term||
|||||||||rights||||
|Shenzhen|||||||||||26,235,364|
|CSG|Cost|||||||||||
|Display||186,330,000|768,204,865|-16,610,279|751,594,586|44.70%|44.70%|||||
||Method|||||||||||
|Technology||||||||||||
|Co., Ltd||||||||||||
|Total|--|186,330,000|768,204,865|-16,610,279|751,594,586|--|--|--|||26,235,364|

 11. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Balance of book||||Balance of book|
|Items|value at beginning|Increased this term||Decreased this term|value at end of|
||of term||||term|
|I.Original cost|10,106,051,239|1,644,005,883||137,304,182|11,612,752,940|
|Buildings|2,625,181,542|248,055,947|||2,873,237,489|
|Machinery and equipment|7,316,514,097|1,381,357,844||133,692,548|8,564,179,393|
|Motor vehicles and others|164,355,600|14,592,092||3,611,634|175,336,058|
||Balance of book|||||
|||Increased this|Provided current||Balance at end of|
|--|value at beginning|||Decreased this term||
|||term|term||current term|
||of term|||||
|II.Accumulated||||||
||2,075,468,020||333,251,017|51,804,372|2,356,914,665|
|depreciation||||||
|Buildings|315,226,370||41,282,699||356,509,069|
|Machinery and equipment|1,653,676,371||273,869,504|48,453,266|1,879,092,609|
|Motor vehicles and others|106,565,279||18,098,814|3,351,106|121,312,987|
||Balance of book|||||
||||||Balance at end of|
|--|value at beginning|--||||
||||||current term|
||of term|||||
|III. Total book value|8,030,583,219|--|||9,255,838,275|
|Buildings|2,309,955,172|--|||2,516,728,420|
|Machinery and equipment|5,662,837,726|--|||6,685,086,784|
|Motor vehicles and others|57,790,321|--|||54,023,071|
|IV.Total provision for||||||
||50,645,536|--|||47,835,722|
|impairment loss||||||
|Machinery and equipment|50,645,536|--|||47,835,722|
|V. Net book value|7,979,937,683|--|||9,208,002,553|
|Buildings|2,309,955,172|--|||2,516,728,420|
|Machinery and equipment|5,612,192,190|--|||6,637,251,062|
|Motor vehicles and others|57,790,321|--|||54,023,071|

 The depreciation charged in this term was RMB 333,251,017. The amount of fixed assets transferred from constructions in progress was RMB 1,639,837,651.
(2) Fixed asset not licensed yet
||||
|-|-|-|
|Items|Reason for not granted|Expected date of grant|
|Buildings|Have submitted the required documents and are in the process of|In the next two years|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||
|-|
|application, or the related land use right certificate pending|

Statement on fixed asset:
The depreciation charged in Jan. to Jun. 2014 was RMB 333,251,017 (Jan. to Jun. 2013: RMB 304,963,365). The amount charged into cost of sale, selling expense and administrative expense was RMB 315,822,549, RMB 642,394 and RMB 16,786,074 (Jan. to Jun. 2013: RMB284,824,722, RMB770,512 and RMB19,368,131).
The amount of fixed assets transferred from constructions in progress was RMB 1,639,837,651 (Jan. to Jun. 2013: RMB 554,954,873), included original value of constructions in progress RMB 1,785,070,454 and provision for impairment RMB 145,232,803.
As at 30 June 2014, Buildings Ownership Certificates for certain buildings of the Group with carrying amounts of RMB997,718,443 (cost of RMB1,112,971,938) (31 December 2013: carrying amount of RMB1,071,562,332, cost of RMB1,175,670,613) had not yet been obtained by the Group. Included were certain buildings with carrying amounts of RMB 63,366,758 (cost of RMB 69,109,024) (31 December 2013:carrying amount of RMB65,318,561, cost of RMB69,109,024) because the land ownership certificates of the lands on which these buildings located had not been obtained. TheCompany’s directors consider that there is no legal restriction for the Group to apply for and obtain the Buildings Ownership Certificates and there will not be any significant adverse impact on the operations of the Group.
12. Construction in process
(1)Particulars of construction in process
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Amount at end of term|||Amount at beginning of term|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Yichang Polysilicon cold|||||||
|hydrogenation, technological|||||||
|transformation project of|||||||
|distillation system, reduction||||1,525,226,129|144,480,698|1,380,745,431|
|furnace and CDI system|||||||
|technically improvement|||||||
|project|||||||
|Xianning CSG energy|||||||
|conservation environmental|16,511,501||16,511,501|5,484,208||5,484,208|
|protection material project|||||||
|Wujiang photovoltaic|||||||
||493,867,785||493,867,785|389,766,964||389,766,964|
|encapsulation material project|||||||
|Xianning CSG energy-saving|||||||
||240,090,821||240,090,821|138,872,425||138,872,425|
|glass project|||||||
|Yichang 700MW silicon slice|||||||
|expansion project third|211,369,420||211,369,420|80,510,116||80,510,116|
|phase|||||||
|Wujiang CSG project|68,761,365||68,761,365|58,282,399||58,282,399|
|Dongguan PV 200MW solar|||||||
||233,201,179||233,201,179|198,993,042||198,993,042|
|cell expansion project|||||||
|Yichang CSG ultrathin glass|||||||
||301,510,546||301,510,546|211,049,240||211,049,240|
|project|||||||
|Qingyuan CSG|||||||
|high-performance ultrathin|116,303,872||116,303,872|28,936,268||28,936,268|
|glass project|||||||
|Yichang CSG expansion|||||||
|project of electronic-grade|||||||
|polysilicon with annual|25,399,510||25,399,510||||
|production capacity of 1000|||||||
|tons|||||||
|Chengdu CSG Architectural|||||||
||31,546,587||31,546,587|12,481,916||12,481,916|
|expansion project|||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||
|-|-|-|-|-|-|-|
|Dongguan CSG solar on-line|||||||
||227,571,263|34,169,351|193,401,912|225,650,441|34,169,351|191,481,090|
|coated project|||||||
|Others|32,054,277||32,054,277|66,567,106|752,105|65,815,001|
|Total|1,998,188,126|34,169,351|1,964,018,775|2,941,820,254|179,402,154|2,762,418,100|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (2) Movement of significant project
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Capitalizin|||
|||||||Investm||Accumulate|Including:||||
|||||Transferred||||||g rate of|||
|||Beginning of|Increased||Other|ent on||of|interest||||
|Projects|Budget|||into fixed|||Progress|||interest|Fund recourse|End of term|
|||term|this term||decreases|budget||interest|capitalized||||
|||||assets||||||this|||
|||||||(%)||capitalized|this term||||
|||||||||||period %|||
|Yichang Polysilicon|||||||||||||
|cold hydrogenation,|||||||||||||
|technological|||||||||||||
|transformation project|||||||||||||
|of distillation system,|||||||||||Internal fund||
||1,760,000,000|1,525,226,129|47,097,187|1,572,323,316||91%|100%|34,447,648|10,609,882|5.10%|||
|reduction furnace and|||||||||||and bank loan||
|CDI system|||||||||||||
|technically|||||||||||||
|improvement|||||||||||||
|project(ii)|||||||||||||
|Xianning CSG energy|||||||||||||
|conservation|||||||||||||
||||||||||||Internal fund||
|environmental|599,340,000|5,484,208|24,181,976|13,154,683||88%|97%|||||16,511,501|
||||||||||||and bank loan||
|protection material|||||||||||||
|project|||||||||||||
|Wujiang photovoltaic|||||||||||||
||||||||||||Internal fund||
|encapsulation material|579,800,000|389,766,964|104,100,821|||83%|95%|5,430,299|1,147,448|5.78%||493,867,785|
||||||||||||and bank loan||
|project|||||||||||||
|Xianning CSG|||||||||||||
||||||||||||Internal fund||
|energy-saving glass|264,672,252|138,872,425|104,103,917|2,885,521||86%|90%|5,827,123|3,818,370|6.21%||240,090,821|
||||||||||||and bank loan||
|project|||||||||||||
|Yichang 700MW|||||||||||||
||||||||||||Internal fund||
|silicon slice expansion|1,980,000,000|80,510,116|130,865,457|6,153||20%|35%|11,333,249|795,483|5.10%||211,369,420|
||||||||||||and bank loan||
|project third phase(iii)|||||||||||||
||||||||||||Internal fund||
|Wujiang CSG project|845,630,000|58,282,399|11,812,180|1,333,214||99%|99%|||||68,761,365|
||||||||||||and bank loan||
|Dongguan PV|||||||||||||
||||||||||||Internal fund||
|200MW solar cell|697,000,000|198,993,042|34,244,405|36,268||67%|70%|797,723|797,723|5.16%||233,201,179|
||||||||||||and bank loan||
|expansion project|||||||||||||
|Yichang CSG|||||||||||Internal fund||
||320,000,000|211,049,240|90,461,306|||94%|99%|1,687,854|1,527,654|5.46%||301,510,546|
|ultrathin glass project|||||||||||and bank loan||
|Qingyuan CSG|||||||||||||
||471,660,000|28,936,268|87,367,604|||35%|60%||||Internal fund|116,303,872|
|high-performance|||||||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ultrathin glass project|||||||||||||
|Yichang CSG|||||||||||||
|expansion project of|||||||||||||
|electronic-grade|||||||||||Internal fund||
||112,485,200||25,399,510|||17%|37%|129,597|129,597|5.10%||25,399,510|
|polysilicon with|||||||||||and bank loan||
|annual production|||||||||||||
|capacity of 1000 tons|||||||||||||
|Chengdu CSG|||||||||||||
||||||||||||Internal fund||
|Architectural|222,817,517|12,481,916|153,829,512|134,764,841||58%|58%|||||31,546,587|
||||||||||||and bank loan||
|expansion project(ii)|||||||||||||
|Dongguan CSG solar|||||||||||Internal fund||
||390,000,000|225,650,441|10,116,209||8,195,387|35%|35%|||||227,571,263|
|on-line coated project|||||||||||and bank loan||
||||||||||||Internal fund||
|Others||66,567,106|26,813,435|60,566,458|759,806|||1,110,143|366,778|||32,054,277|
||||||||||||and bank loan||
|Total|8,243,404,969|2,941,820,254|850,393,519|1,785,070,454|8,955,193|--|--|60,763,636|19,192,935|--|--|1,998,188,126|

 Statements on movement of significant projects:
(i) The proportion of project expenditure incurred to the budget was determined by the accumulative expenditures incurred divided by the total budget. Some projects due to parts of the projects had been completed and were transferred into fixed assets.
(ii) The budget of the project contained the amount from fixed assets to construction in progress.
(iii) The budget incurred for these kinds of projects included cost of acquiring land use rights. The balance of construction in progress did not include the costs of acquiring land-use right.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (3) Impairment provisions of construction in process
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Beginning of|Increased|Decreased this|||
|Items||||End of term|Reason to provide|
||term|this term|term|||
|Yichang Polysilicon cold||||||
|hydrogenation, technological||||||
|transformation project of distillation||||||
||145,232,803||145,232,803||transferred into fixed asset|
|system, reduction furnace and CDI||||||
|system technically improvement||||||
|project(ii)||||||
||||||Provision is determined by the|
|Dongguan CSG solar on-line coated|||||difference between carrying|
||34,169,351|||34,169,351||
|project|||||amount and estimated net selling|
||||||price.|
|Total|179,402,154||145,232,803|34,169,351|--|

(4) Progress of material construction in process
||||
|-|-|-|
|Items|Progress|Note|
|Yichang Polysilicon cold hydrogenation, technological|||
|transformation project of distillation system, reduction furnace|100%|complete|
|and CDI system technically improvement project|||
|Xianning CSG energy conservation environmental protection|||
||97%|Physical progress of the construction work|
|material project|||
|Wujiang photovoltaic encapsulation material project|95%|Physical progress of the construction work|
|Xianning CSG energy-saving glass project|90%|Physical progress of the construction work|
|Yichang 700MW silicon slice expansion project third phase|35%|Physical progress of the construction work|
|Wujiang CSG project|99%|Physical progress of the construction work|
|Dongguan PV 200MW solar cell expansion project|70%|Physical progress of the construction work|
|Yichang CSG ultrathin glass project|99%|Physical progress of the construction work|
|Qingyuan CSG high-performance ultrathin glass project|60%|Physical progress of the construction work|
|Yichang CSG expansion project of electronic-grade polysilicon|||
||37%|Physical progress of the construction work|
|with annual production capacity of 1000 tons|||
|Chengdu CSG Architectural expansion project|58%|Physical progress of the construction work|
|Dongguan CSG solar on-line coated project|35%|Physical progress of the construction work|

 13. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
||||||
|-|-|-|-|-|
||Balance of book value at the|Increased this|Decreased this|Balance of book value at the|
|Items|||||
||beginning of term|term|term|end of term|
|Total original cost|1,050,129,092|30,259,983||1,080,389,075|
|Land use rights|930,748,447|||930,748,447|
|Patents|93,906,914|29,985,955||123,892,869|
|Exploitation rights|4,456,536|||4,456,536|
|Others|21,017,195|274,028||21,291,223|
|Accumulated amortisation|103,589,084|15,022,106||118,611,190|
|Land use rights|66,982,288|9,491,268||76,473,556|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||
|-|-|-|-|
|Patents|26,893,388|3,390,001|30,283,389|
|Exploitation rights|2,104,160|257,374|2,361,534|
|Others|7,609,248|1,883,463|9,492,711|
|Net book value|946,540,008|15,237,877|961,777,885|
|Land use rights|863,766,159|-9,491,268|854,274,891|
|Patents|67,013,526|26,595,954|93,609,480|
|Exploitation rights|2,352,376|-257,374|2,095,002|
|Others|13,407,947|-1,609,435|11,798,512|
|Provision for impairment|13,210,480||13,210,480|
|Land use rights||||
|Patents|13,201,347||13,201,347|
|Exploitation rights||||
|Others|9,133||9,133|
|Net book value|933,329,528|15,237,877|948,567,405|
|Land use rights|863,766,159|-9,491,268|854,274,891|
|Patents|53,812,179|26,595,954|80,408,133|
|Exploitation rights|2,352,376|-257,374|2,095,002|
|Others|13,398,814|-1,609,435|11,789,379|

 The amortisation amount is RMB15,022,106 in this term.
(2)R&D expenses
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Decreased this term|||
|Items|Beginning of term|Increased this term|Accounted intocurrent incomeaccount|Recognized as|End of term|
|||||intangible asset||
|R&D expenses|9,881,310|58,906,28|8 52,410,627|5,926,905|10,450,066|
|Total|9,881,310|58,906,28|8 52,410,627|5,926,905|10,450,066|

 The development expenditures account for62% of total research and development expenditures.
The intangible assets arised from internal research and development accounted for7.13% of total of intangible assets.
Description of the development project of the company, including value of more than RMB 1 million in this period and the assessed value accounted for basis, shall disclose the name of evaluation institution and evaluation methods
In Jan. to Jun. 2014, the total amount of research and development expenditures of the Group is RMB 94,805,902 (Jan. to Jun. 2013: RMB78,002,898), including RMB88,311,535 (Jan. to Jun. 2013: RMB70,449,270) recorded in income statement, RMB5,926,905 (Jan. to Jun. 2013: RMB1,294,436) was recognized as intangible assets. In Jan. to Jun. 2014, the development expenditures account for62% of total research and development expenditures(Jan. to Jun. 2013:58%). As at 30 June 2014, the intangible assets arised from internal research and development accounted for7.13% of total of intangible assets (31 December 2013:6.61%).
14. Goodwill
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Impairment|
|Name of the companies or|||Decreased this|||
||Beginning balance|Increased this term||Ending balance|provision at|
|goodwill item|||term|||
||||||end of term|
|Tianjin CSG Architectural Glass||||||
||3,039,946|0|0|3,039,946|0|
|Co., Ltd.||||||
|Total|3,039,946|0|0|3,039,946|0|

Notes to impairment testing method and the impairment of goodwill
The goodwill is allocated to following cash generating unit or group of cash generating unit:
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 30 June 2014 31 December 2013 Architectural Glass segment 3,039,946 3,039,946 The Goodwill was caused by the Company's acquisition of minorityshareholders’ equity of Tianjin CSG Architectural Glass Co., Ltd. The directors of the company considered that the goodwill was not impaired at 30 June 2014.
The management determined the recoverable amount of goodwill based on estimation of present value of the future cash flows from the cash generating unit. The future cash flows are prepared based on the 5 years cash flow forecast approved by management. The profit margin and growth rate used in the cash flows forecast are determined bymanagement’s historical experiences and expectation of future market development. The discount rate adopted was pre-tax rate and reflected the special risk related to the cash generating unit.
15. Long-term expenses to be amortized
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||At the beginning|Increased this|Amortized this||At the end of|Reason of other|
|Items||||Other decrease|||
||of term|term|term||term|decreasing|
|Expenses to be|||||||
||3,280,021|129,008|512,325||2,896,704||
|amortized|||||||
|Total|3,280,021|129,008|512,325||2,896,704|--|

 16. Deferred income tax asset and deferred income tax liabilities
(1)Deferred income tax assets and liabilities are presented as net amount after neutralization
Deferred income tax assets and liabilities after neutralization
Unit: RMB
||||||
|-|-|-|-|-|
|||The temporary|Deferred income tax|The temporary|
||Deferred income tax||||
|Items||differences at end of|assets at beginning of|differences at|
||assets at end of term||||
|||term|term|beginning of term|
|Deferred income tax assets:|107,855,079|622,384,734|164,787,158|945,930,458|
|Deferred income tax liabilities:|34,118,278|257,952,356|34,298,029|294,630,776|

 Particulars of deferred income tax assets and liabilities after neutralization
Unit: RMB
|||
|-|-|
|Items|amount after neutralization|
|Deferred income tax assets:|28,564,427|
|Deferred income tax liabilities:|28,564,427|

 17. Detail of asset impairment provision
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Balance of book||Decreased this term||Balance of book|
|Items|value at beginning|Increased this term||Transferred|value at end of|
||||Written back|||
||of term||||term|
|I. Bad debt provision|4,315,531|2,766,413|383,036||6,698,908|
|II. Inventory impairment|4,135,028|||2,252,311|1,882,717|
|provision||||||
|VII. Fixed asset impairment|50,645,536|||2,809,814|47,835,722|
|provision||||||
|IX. Construction in process|179,402,154|||145,232,803|34,169,351|
|impairment provision||||||
|XII. Intangible asset|13,210,480||||13,210,480|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||
|-|-|-|-|-|-|
|impairment provision||||||
|Total|251,708,729|2,766,413|383,036|150,294,928|103,797,178|

 18. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Prepayment of land premium|6,510,000|6,510,000|
|Total|6,510,000|6,510,000|

 19. Short-term loans
(1) Categories of short-term loans
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Guaranteed|263,295,208|139,743,800|
|Unsecured|495,000,000|185,000,000|
|Short-term finance bonds|1,200,000,000|1,100,000,000|
|Total|1,958,295,208|1,424,743,800|

 Statement on short-term loans:
As at 30 June 2014, loans of certain subsidiaries of the Company amounting to RMB263,295,208 (31 December 2013: RMB139,743,800) were guaranteed by the Company, of which the minority shareholders provided a back to back guarantee to the Company amounting to RMB16,217,180 (31 December 2013: RMB13,577,007).
Approved by file No.[2014] CP11 of Inter Bank Market Trading Association, the Company is entitled to issue short term financial bonds, up to 14 January 2016. The company has issued short term bonds of RMB500,000,000 on 14 March 2014 , and will mature on 14 March 2015, with an annual interest rate of5.65%.
Approved by file No.[2013]CP20 of Inter Bank Market Trading Association, the Company is entitled to issue short term financial bonds, up to 25 January 2015. The Company issued short term bonds of RMB1,100,000,000 on 7 March 2013, and matured on 7 March 2014, with an annual interest rate of4.26%. It was paid back in the report period. On 27 June 2014, the Company continued to issue the 2nd batch of short-term financing bills for the year with a total amount of RMB 700,000,000 and annual interest rate of5.10%, and the expiry date is 27 June 2015.
As at 30 June 2014, the weighted average interest rate of short-term borrowings was5.82% per annum (31 December 2013:5.52%). 20. Notes payable
Unit: RMB
||||
|-|-|-|
|Categories|End of term|Beginning of term|
|Bank acceptance notes|8,221,924|4,429,188|
|Total|8,221,924|4,429,188|

 Amount due in next fiscal period is RMB 8,221,924.
Statement on notes payable
All notes payable are due within one year.
21. Account payable
(1)Particulars of account payable
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Account payable for materials|483,709,102|451,221,943|
|Account payable for constructions|133,070,276|183,742,269|
|Account payable for equipments|302,147,621|269,562,625|
|Account payable for freight|66,439,273|56,828,669|
|Others|15,496,427|20,260,943|
|Total|1,000,862,699|981,616,449|

 (2) Statement on payable accounts due for over one year
As at 30 June 2014, accounts payable over 1 year is approximately RMB135,803,483 (31 December 2013: RMB 94,719,853), which mainly comprised of payables for construction works. As the construction works were not passing the final acceptance test, the balance was not yet settled.
22. Accounts received in advance
(1)Particulars of accounts received in advance
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Advances from customers|149,764,555|160,689,070|
|Total|149,764,555|160,689,070|

 (2)Statement on large amount prepayment received and due for over one year
The balances were substantively dominated in RMB and with the aging within 1 year.
23. Employee benefits payable
Unit: RMB
||||||
|-|-|-|-|-|
||Balance of book valueat beginning of term|||Balance of book value|
|Items||Increased this term|Decreased this term||
|||||at end of term|
|Wages and|||||
|salaries, bonuses,|||||
||98,204,242|330,871,410|360,325,610|68,750,042|
|allowances and|||||
|subsidies|||||
|Labor union and|||||
|employee|13,677,569|5,245,988|4,765,321|14,158,236|
|education funds|||||
|Social security|||||
||7,080|37,865,445|37,849,223|23,302|
|contributions|||||
|Included: Pension|5,121|26,655,965|26,647,311|13,775|
|Medical|1,296|7,434,972|7,430,121|6,147|
||367|1,840,224|1,838,768|1,823|
|Unemployment|||||
|Injury|181|1,225,480|1,224,510|1,151|
|Maternity|115|708,804|708,513|406|
|Housing funds|1,688,347|13,724,960|13,736,391|1,676,916|
|Others|52,800,000|27,000,000|52,329,400|27,470,600|
|Total|166,377,238|414,707,803|469,005,945|112,079,096|

The amount of overdue employee benefits payable is RMB 0.
The amount the trade union funds and employee education expense is RMB5,245,988. The amount of non-monetary
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 welfare is RMB 0. The compensation for labor relations is RMB 0.
The issued time and amount of employee benefits payable
As at 30 June 2014, there was no overdue payroll and welfare expense. The balances will be settled in 2013.
Pursuant to the resolution in the 15th meeting of the third session board of directors of the Company on 28 January 2005, the board of directors adopted a management bonus scheme which is based on the annual return on net assets and the net profit for the year. During the period, management bonus RMB 27,000,000 (Jan.– June2013：RMB 9,000,000) were accrued and charged to profit and loss.
24. Tax payable
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Value-added-tax payable|11,096,652|29,120,147|
|Corporate income tax payable|71,232,493|103,256,466|
|Urban maintenance and construction tax|1,844,983|2,905,195|
|Education surcharge|3,531,527|4,201,672|
|Housing property tax payable|4,439,479|12,493,565|
|Others|7,451,072|8,777,658|
|Total|99,596,206|160,754,703|

 25. Interest payable
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Interest payable for long-term borrowings|918,699|1,501,744|
|Interest for corporate bonds|74,505,379|21,205,379|
|Interest payable for short-term borrowings|5,099,575|1,398,983|
|Interest payable for short-term financing|6,261,389|36,661,428|
|Total|86,785,042|60,767,534|

 26. Dividends payable
Unit: RMB
|||||
|-|-|-|-|
|Name of the company|End of term|Beginning of term|Reason for unpaid over one year|
|Shareholders|687,627|687,627||
|Total|687,627|687,627|--|

Statement on dividends payable
As at 30 June 2014, the balance of the dividends payable represented those declared before the reform of shareholder structure of the Company but not yet able to pay to then shareholders.
27. Other account payable
(1)Particulars of other account payable
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Advanced received for the disposal of equity|||
|||450,000,000|
|interests|||
|Guarantee deposits received from|78,644,037|65,810,543|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|construction contractors|||
|Accrued operating expense (i)|25,294,407|23,158,690|
|Temporary receipts|44,521,722|6,144,727|
|Withholding income tax|5,574,643|2,597,520|
|labour cost payable|1,911,773|8,000,696|
|Payable for acquisition of Minority Interests|69,030,000||
|(ii)|||
|Others|6,773,172|1,418,407|
|Total|231,749,754|557,130,583|

 Statement on large amount other payable accounts due for over one year
The balances are substantively dominated in RMB.
(2) Statement on large amount other payable accounts
(i) Accrued operating expenses represent expenses that have incurred but not yet invoiced, including utilities expenses, professional service charges, travel fees and etc.
There were noshareholders’ interests of voting power up to5% (including5%) as well as payments for related parties. The balances are substantively dominated in RMB.
(ii)Payable for acquisition of Minority Interests was because the Company's subsidiary, CSG (Hong Kong) Limited and Fung Ltd. signed an agreement with Jinfeng Co., Ltd. (abbr. "Jinfeng") for the acquisition of25% equity share of a subsidiary of the Company, Xianning CSG Glass Co., Ltd. held by Jinfeng. The transfer procedure was completed on June 25, 2014, and the amount was paid completed on July 9, 2014.
28. Non-current liabilities due within one year
(1)Particulars of non-current liabilities due within one year
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Long-term borrowing due within 1year|182,026,370|399,849,715|
|Total|182,026,370|399,849,715|

 (2) Long-term loans due within 1 year
Long-term loans due within 1 year
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|guaranteed|182,026,370|106,074,515|
|credit||293,775,200|
|Total|182,026,370|399,849,715|

 The amount of overdue loans to renew of long term loans due within one year is RMB 0.
Top 5 long-term loans due within 1 year
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||End of term||Beginning of term||
|Loan|Beginning|Maturity|Currency|Interest rate %|Amount of|Amount of|Amount of|Amount of|
|provided by|Date|date|||foreign|original|foreign|original|
||||||currency|currency|currency|currency|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||
|-|-|-|-|-|-|-|-|-|
|Bank A|2011-4-27|2014-11-20|USD|3.83%|3,750,000|23,073,000|3,750,000|22,863,375|
|Bank B|2013-1-5|2015-3-27|RMB|6.15%||13,333,333||13,333,333|
|Bank C|2011-8-3|2014-8-2|RMB|6.46%||10,000,000||10,000,000|
|Bank B|2012-12-6|2015-3-27|RMB|6.15%||8,666,667||8,666,667|
|Bank B|2012-8-8|2015-3-27|RMB|6.15%||7,666,667||7,666,667|
|Total|--|--|--|--|--|62,739,667|--|62,530,042|

 29. Other current liability
Unit: RMB
||||
|-|-|-|
|Items|Closing balance of book value|Opening balance of book value|
|Accrued liabilities-other(Placer miningenvironmental recovery fee)|||
||300,000|300,000|
|Total|300,000|300,000|

 30. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Guarantee|275,992,783|302,904,204|
|Total|275,992,783|302,904,204|

 Statement on categories of long-term borrowings:
As at 30 June 2014, loans of certain subsidiaries of the Company were guaranteed by the Company, of which, the minority shareholders provided a back to back guarantee to the Company amounting to RMB68,126,126 (31 December 2013: RMB74,536,483). The interest should be paid monthly or quarterly. The principals will be repaid between March 2015 and April 2019.
(2) Top 5 long-term borrowings
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||End of term||Beginning of term||
|borrowings|Beginning date|Ending date of||Interest|Amount of|Amount of|Amount of|Amount of|
||||Currency||||||
|provided by|of borrowing|borrowing||rate(%)|foreign|original|foreign|original|
||||||currency|currency|currency|currency|
|Bank D|2013-8-30|2016-8-29|RMB|6.27%||47,000,000||47,000,000|
|Bank E|2014-5-4|2017-5-4|RMB|6.15%||25,000,000|||
|Bank B|2013-6-27|2017-6-26|RMB|6.40%||18,750,000||30,000,000|
|Bank B|2013-7-12|2017-7-11|RMB|6.40%||18,750,000||30,000,000|
|Bank F|2014-3-24|2017-3-23|RMB|6.15%||18,000,000|||
|Total|--|--|--|--|--|127,500,000|--|107,000,000|

 Statement on categories of long-term borrowings
As at 30 June 2014, the amount of overdue loans to renew in the long-term borrowings was RMB 0. The weighted average interest rate of long-term borrowings was6.18% per annum (31 December 2013:5.76%).
31. Bond payable
Unit: RMB
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Bond|Face value|Date of|Bond|Issuing|Interest|Interest|Interes|Interest|Closing|
|||issue|term|amount|payable at|occurred this|t paid|payable at end|balance|
||||||beginning of|period|this|of period||
||||||period||period|||
|Corporate||||||||||
||1,000,000,000|2010-10-20|5-year|989,100,000|10,602,689.50|26,650,000|0|37,252,689.50|996,673,700.50|
|bonds||||||||||
|Corporate||||||||||
||1,000,000,000|2010-10-20|7-year|989,100,000|10,602,689.50|26,650,000|0|37,252,689.50|996,673,700.50|
|bonds||||||||||

Statement on bonds payable, including the condition and time of converting of the convertible bonds
According to the China Securities Regulatory Commission license[2010] No 1369 published by the China Securities Regulatory Commission, the Company issued the corporate bonds on 20 October 2010, with a par value of RMB2 billion. The Corporate Bonds include RMB1 billion that will mature in 5 years and another RMB1 billion that will mature in 7 years (“7 year Bonds”). The 7 year Bonds holders have a put option over the Company to repurchase at the end of the fifth year. The Corporate Bonds carried at fixed interest rate of5.33% per year, the interests are paid annually, and the effective interest rate is5.59%.
32. Other non-current liabilities
Unit: RMB
||||
|-|-|-|
|Items|Closing balance of book|Opening balance of book|
|Deferred income|414,180,279|432,364,880|
|Total|414,180,279|432,364,880|

 Statement on other non-current liabilities, including asset-related and income-related government subsidy and closing balances: Deferred income related to governmental grants:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Included in||||
|||Grants newly||Other|Closing|Related to assets or|
|items of liabilities|Opening balance||non-business||||
|||increased||changes|balance|income|
||||income||||
|Xianning CSG Golden Solar|||||||
||60,104,917||1,515,250||58,589,667|Related to assets|
|Project(i)|||||||
|Tianjin CSG Architectural Glass|||||||
||46,366,000||1,164,000||45,202,000|Related to assets|
|CSG Golden Solar Project(ii)|||||||
|Dongguan CSG Architectural|||||||
|Glass CSG Golden Solar|33,583,584||914,000||32,669,584|Related to assets|
|Project(iii)|||||||
|Hebei CSG Glass Golden Solar|||||||
||31,810,000|5,500,000|932,750||36,377,250|Related to assets|
|Project(iv)|||||||
|Wujiang CSG Glass Co., Ltd(v)|54,191,230|868,804|1,390,756||53,669,278|Related to assets|
|Yichang Photoelectric Glass|||||||
||41,719,660||||41,719,660|Related to assets|
|products project (vi)|||||||
|Yichang Silicon products|||||||
||33,046,875|4,420,000|3,375,989||34,090,886|Related to assets|
|project (vii)|||||||
|Chengdu Float Cogeneration|||||||
||17,091,540||827,010||16,264,530|Related to assets|
|project(viii)|||||||
|Yichang CSG crucible|||||||
||11,843,870||370,552||11,473,318|Related to assets|
|project(ix)|||||||
|Group Coating Film|||||||
||11,792,800||||11,792,800|Related to assets|
|experimental project(x)|||||||
|Xianning CSG Glass Co.,|||||||
||63,632,400||17,500,001||46,132,399|Related to income|
|Ltd(xi)|||||||
|other|27,182,004||983,097||26,198,907|Related to assets|
|Total|432,364,880|10,788,804|28,973,405||414,180,279|--|

(i)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station. When
the facilities were set up, they belonged to Xianning CSG. The allowance will be credited to income statement in 20 years, the useful
life of the PV power station.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (ii)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station. When the facilities were set up, they belonged to Tianjin CSG. The allowance will be credited to income statement in 20 years, the useful life of the PV power station.
(iii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station. When the facilities were set up, they belonged to Dongguan CSG Architectural Glass. The allowance will be credited to income statement in 20 years, the useful life of the PV power station.
(iv)The allowance was granted by Langfang Municipal Government. The allowance was used for establishing PV power station. When the facilities were set up, they belonged to Hebei CSG. The allowance will be credited to income statement in 20 years, the useful life of the PV power station.
(v)It was granted by Wujiang local government for infrastructure construction and will be amortised and credited to income statement in 15 years, in accordance with the minimum operating period committed.
(vi)It represented the funds granted by Yichang local government for photoelectric glass project. It will be amortised and credited to income statement in 15 years, in accordance with the minimum operating period committed.
(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. (“Yichang Silicon”) by Yichang City Dongshan Development Corporation under the provisions of the investment contract signed between the Group and the Municipal Government of Yi Chang. The proceeds were designed for the construction of electricity transformer and the pipelines. Yichang Silicon is entitled to the ownership of the facilities and amortised by 15 years according to the useful life of the converting station. (viii)It represented the funds granted by Chengdu local government for energy glass project. It will be amortised and credited to income statement in 15 years, in accordance with the minimum operating period committed.
(ix)It represented the government supporting fund obtained by Yichang CSG from the acquiring of the assets and liabilities of Crucible project of Yichang Hejing Photoelectric Ceramic Co., LTD. It will be amortised and credited to income statement in 15 years, in accordance with the minimum operating period committed.
(x)The allowance was granted by Shenzhen City Development and Reform Commission for the development of Group Coating Film experimental project.The grant will be amortised and credited to income statement in the estimated useful life of the relevant fixed assets.
(xi)The allowance was granted by Hubei Xianning Economic Development Management Center. According to the document Xian Kai Cai Fa[2013] No. 3 issued by the Center, the allowance was used to support the development of Xianning CSG during from the year 2012 to year 2015.
33. Share Capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed in the report period (+,-)||||||
||Beginning of|||||||
|||Issuing of new||Transferred|||End of term|
||term||Bonus shares||Others|Sub-total||
|||shares||from reserves||||
|Total of capital|2,075,335,560||||||2,075,335,560|
|shares||||||||

34. Special reserves
Statement on special reserve
31 December 2013
Addition Deduction
30 June 2014 Safety production cost 14,503,860 1,503,887 672,147 15,335,600 Yichang CSG is a high risk chemical production enterprise. Therefore, the Company appropriated such reserve in accordance with relevant regulations.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 35. Capital reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|
|Capital premium|1,345,264,670||7,660,730|1,337,603,940|
|Other reserve|46,102,218|10,478,290||56,580,508|
|Total|1,391,366,888|10,478,290|7,660,730|1,394,184,448|

 36. Surplus reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|
|Statutory surplus reserve|637,196,152|||637,196,152|
|Discretionary surplus|||||
||127,852,568|||127,852,568|
|reserve|||||
|Total|765,048,720|||765,048,720|

 Statement on surplus reserves:
According to the PRC Corporation Law and the regulation of the Company, the Company must accrue statutory surplus reserve at the amount of10% of the net profit until when the accumulated statutory surplus reserve reached at least50% of the capital. After the Company obtained the approval fromshareholders’ meeting, the statutory surplus reserve can be used to make up the loss, or to increase the capital. The Companydidn’t accrue statutory surplus reserve in the report period. (Jan. to Jun. 2013: not accrued).
The appropriation to discretion surplus reserve shall be proposed by the board of the directors of the Company and approved by the annual general meeting of the shareholders. The discretion can be utilized to offset the deficit or increase the share capital. The Company did not appropriate to discretion surplus reserve during the report period. 37. Retained earnings
Unit: RMB
||||
|-|-|-|
|Items|Amount|Appropriation rate|
|Retained earnings at the end of last year before adjustment|3,803,574,842|--|
|Retained earnings at the beginning of this year after adjustment|3,803,574,842|--|
|Add: net profits belonging to equity holders of the Company|589,210,439|--|
|Dividends payable|622,600,668|41%|
|Retained earnings in the end|3,770,184,613|--|

Statement on retained earnings:
As at 30 June 2014, undistributed profit of the Group included the surplus reserve of the subsidiaries attributable to the Group amounting to RMB 657,236,398 (31 December 2013: RMB730,054,385), including: outflow of surplus reserves RMB72,817,987 due to disposal of subsidiary (Jan. to Jun. 2013: nil)The Group and its subsidiariesdidn’t appropriate surplus reserve in the report period(Jan. to Jun. 2013: nil).
Pursuant to the resolution of board of directors of the Company on 14 April, 2014, the Company paid dividend of RMB 3 (tax inclusive) for each 10 shares, totaling RMB 622,600,668.
38. Revenue and cost
(1) Revenue and cost
Unit: RMB
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
||3,221,711,569|3,497,819,720|
|Revenue from main operations|||
||40,970,103|39,146,063|
|Revenue from other operations|||
|Cost|2,438,593,004|2,514,678,053|

 (2) Business segments (on industries)
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in current term||Occurred in previous term||
|Name of industry|||||
||Revenue|Cost|Revenue|Cost|
|Floating glass|1,825,845,072|1,525,918,567|1,784,653,053|1,407,769,078|
|Architectural glass|1,407,038,222|964,415,998|1,220,595,760|827,810,922|
|ITO glass|||422,609,951|254,701,359|
|Solar panel and parts|397,771,248|339,993,538|463,748,119|402,827,242|
|Elimination|-408,942,973|-411,376,355|-393,787,163|-389,292,054|
|Total|3,221,711,569|2,418,951,748|3,497,819,720|2,503,816,547|

 (3) Business segments (on products)
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in current term||Occurred in previous term||
|Name of product|||||
||Revenue|Cost|Revenue|Cost|
|Floating glass|1,825,845,072|1,525,918,567|1,784,653,053|1,407,769,078|
|Architectural glass|1,407,038,222|964,415,998|1,220,595,760|827,810,922|
|ITO glass|||422,609,951|254,701,359|
|Solar panel and parts|397,771,248|339,993,538|463,748,119|402,827,242|
|Elimination|-408,942,973|-411,376,355|-393,787,163|-389,292,054|
|Total|3,221,711,569|2,418,951,748|3,497,819,720|2,503,816,547|

 (4) Business segments (on regions)
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in current term||Occurred in previous term||
|Name of regions|||||
||Revenue|Cost|Revenue|Cost|
|Mainland|2,899,041,165|2,193,112,046|2,965,777,457|2,122,593,911|
|Hong Kong|34,873,594|21,621,628|151,875,658|91,960,330|
|Europe|87,392,381|68,040,061|196,142,438|161,236,626|
|Asia (other than Mainland and|||||
||117,272,638|80,049,856|122,796,161|86,374,068|
|Hong Kong)|||||
|North America|33,917,410|21,659,532|21,457,662|15,243,651|
|Australia|46,764,284|32,558,267|33,872,588|22,203,130|
|Other regions|2,450,097|1,910,358|5,897,756|4,204,831|
|Total|3,221,711,569|2,418,951,748|3,497,819,720|2,503,816,547|

 (5) Revenue from top five customers
Unit: RMB
||||
|-|-|-|
|Name of clients|Revenue|Percentage of the total revenue of the group (%)|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|The largest|167,747,655|5%|
|The second largest|137,906,869|4%|
|The third largest|90,737,319|3%|
|The fourth largest|57,576,990|2%|
|The fifth largest|56,568,190|2%|
|Total|510,537,023|16%|

 39. Tax and surcharge
Unit: RMB
|||||
|-|-|-|-|
|||Occurred in previous||
|Items|Occurred in current term||Rate|
|||term||
|Business tax|71,030|72,029|turnover|
|City maintenance and||||
||8,095,005|12,027,909|VAT and turnover tax|
|construction tax||||
|Educational surcharge|7,772,638|10,674,534|VAT and turnover tax|
|Others|483,125|461,294||
|Total|16,421,798|23,235,766|--|

40. Selling Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Freight expenses|49,873,261|52,602,148|
|Employee benefit expenses|41,052,113|40,642,773|
|Entertainment expenses|4,370,807|5,279,616|
|Travelling expenses|4,620,055|6,562,464|
|Others|14,398,844|22,855,743|
|Total|114,315,080|127,942,744|

 41. Administrative Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Employee benefit expenses|85,457,660|71,843,198|
|Research and development expenses|88,311,535|70,449,270|
|Taxation Expenses|25,509,353|23,221,128|
|Depreciation expenses|16,786,074|19,368,131|
|Amortisation of intangible assets|15,022,106|15,750,644|
|Office expenses|9,281,665|10,473,231|
|Canteen costs|3,309,614|6,102,289|
|Rental expense|2,460,865|3,710,312|
|Entertainment expenses|2,956,059|2,893,370|
|Travel expense|2,927,354|2,902,757|
|Water and electricity expense|2,504,210|2,430,521|
|Carriage expense|2,381,902|2,621,354|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Others|23,285,623|32,247,847|
|Total|280,194,020|264,014,052|

 42. Finance Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Interest expenses|99,923,026|115,875,945|
|Amortization of corporate bond issue|||
||2,306,226|2,184,168|
|costs|||
|Less:Interest income|1,841,127|3,501,854|
|Foreign exchange (gain)/loss|3,357,025|-4,257,152|
|Others|5,280,478|9,337,156|
|Total|109,025,628|119,638,263|

 43. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|long-term equity investment accounted by|9,407,007||
|equity method|||
|Gain from disposal of equity interests|311,247,064||
|Gain from disposal of available-for-sale|||
||108,000|432,000|
|financial assets|||
|Total|320,762,071|432,000|

 (2) Long-term equity investment gains on equity method
Unit: RMB
|||||
|-|-|-|-|
|Company invested in|Occurred in current|Occurred in previous|Causation of change|
||term|term||
|Shenzhen CSG Display Technology Co.|||According to equity method from Dec.|
||8,554,688|||
|Ltd(i)|||2013|
||||c According to equity method from|
|CSG (Australia) Co., Ltd|852,319|||
||||Dec. 2013 to March 2014|
|Total|9,407,007||--|

Statement on the return of investment, repatriation of investment income which has significant restrictions should be disclosed. If there is no such restriction should also explain
Investment income on Shenzhen CSG Display including Shenzhen's net book profit gained in the first half year, and the amortization of its remaining stake in asset revaluation (including reversal of sold assets value of Shenzhen CSG Display).
Significant restrictions on repatriation of investment income do not exist.
44. Asset impairment loss
Unit: RMB
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|I. Provision for bad debts|2,383,377|2,652,061|
|II. Provision for inventories||-425,506|
|Total|2,383,377|2,226,555|

 45. Non-operating income
(1) Non-operating income
Unit: RMB
|||||
|-|-|-|-|
|||Occurred in previous termt|Amount|
||||of non-recurring|
|Items|Occurred in current term|||
||||gain and loss|
||||he report period|
|Total of gains from disposal of||||
||619,737|3,520,238|619,737|
|non-current assets||||
|Incl.：Gain on disposal of fixed assets|619,737|3,520,238|619,737|
|Government grants|44,447,997|26,586,020|44,447,997|
|Default income(a)|3,700|6,317,040|3,700|
|Compensation income|403,692|1,327,804|403,692|
|Others|11,808,128|10,540,475|11,808,128|
|Total|57,283,254|48,291,577|57,283,254|

 (2) Details of government grants
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in|Occurred in|Related to assets or|Whether belongs to|
|Items|||||
||current term|previous term|income|extraordinary gains/loss|
|Government grants amortization|28,973,405|6,990,914|Related to assets|Yes|
|Industry supporting fund|11,392,846|2,749,564|Related to income|Yes|
|Interest subsidies for technical|||||
||740,800|7,550,559|Related to income|Yes|
|transformation|||||
|Government awards fund|1,037,505|1,810,000|Related to income|Yes|
|Energy saving subsidy|20,000|1,000,000|Related to income|Yes|
|Subsidies for research and development|463,245|1,069,724|Related to income|Yes|
|Others|1,820,196|5,415,259|Related to income|Yes|
|Total|44,447,997|26,586,020|--|--|

46. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||Occurred in current term||Amount of non-recurring|
|||Occurred in previous||
|Items|||gain and loss included in|
|||term||
||||the report period|
|Total of loss from disposal of non-current|1,446,174|288,211||
|assets||||
|Incl. Loss from disposal of fixed assets|1,446,174|288,211||
|Donation|20,000|80,000||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Loss on compensations||8,000,000|
|Others|133,562|26,991|
|Total|1,599,736|8,395,202|

47. Income tax expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Current income tax|53,996,024|112,228,490|
|Deferred income tax|7,001,382|1,499,725|
|Total|60,997,406|113,728,215|

 48. Calculation of basic earning per share and diluted earning per share
a.Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.
Jan. to Jun. 2014 Jan. to Jun. 2013 Consolidated profit attributable to equity holders of the 589,210,439 353,719,746 Company
Weighted average number of ordinary shares in issue 2,075,335,560 2,075,335,560 Basic earnings per share 0.28 0.17 Including:
- Earnings per share for continuing operations 0.29 0.17 - Earnings per share for discontinued operations -0.01 - b. diluted earning per share
Diluted earnings per share is calculated by dividing the profit attributable to equity holders of the Company, which is adjusted according to potential dilutive shares, by the adjusted weighted average number of ordinary shares in issue during the year. The Company had no potential dilutive outstanding equity instruments issued as at Jan. to Jun. 2013 (Jan. to Jun. 2012: Nil), accordingly the diluted earnings per share equals basic earnings per share.
49. Other comprehensive income
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|1. (Losses)/Gain from available for sale financial assets|13,140,000|-11,799,757|
|Less: effect of income tax resulted from available for sale|||
||3,024,762|-2,716,247|
|financial assets|||
|Subtotal|10,115,238|-9,083,510|
|4. Difference on translation of foreign currency financial|||
||988,897|-1,185,709|
|statements|||
|Subtotal|988,897|-1,185,709|
|Total|11,104,135|-10,269,219|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 50. Notes to the cash flow statement
(1)Cash received relating to other operating activities
Unit: RMB
|||
|-|-|
|Items|Amount|
|Interest income|1,841,127|
|Government grant|15,474,592|
|Others|17,266,419|
|Total|34,582,138|

 (2)Cash paid relating to other operating activities
Unit: RMB
|||
|-|-|
|Items|Amount|
|Transportation expense|48,709,437|
|Canteen cost|14,947,648|
|Office expenses|14,964,148|
|Travelling expenses|9,748,816|
|Entertainment expenses|7,708,778|
|Vehicle use fee|6,979,520|
|Bank fees|5,387,563|
|Consultant expenses|4,158,343|
|Insurance expenses|7,924,670|
|R&D fees|9,252,825|
|Repairing fees|6,562,243|
|Others|67,503,257|
|Total|203,847,248|

 (3)Cash received relating to other investing operating activities
Unit: RMB
|||
|-|-|
|Items|Amount|
|Received insurance compensation|72,000,000|
|Government grants received relating to assets|10,788,804|
|Cash received for combination of China Southern Glass(Australia)||
||16,312,506|
|Limited||
|Total|99,101,310|

 (4)Cash paid relating to other investing activities
Unit: RMB
|||
|-|-|
|Items|Amount|
|paid for current account of Shenzhen CSG(former subsidiary)|5,000,000|
|paid for deposit and margin|1,616,080|
|Total|6,616,080|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (5)Cash received relating to other financing activities
|||
|-|-|
|Items|Amount|
|Shenzhen CSG received come-and-go money from Golden Time|330,000,000|
|Received return money from Shenzhen CSG Display|19,610,000|
|Received financing deposit and margin|3,850,920|
|Total|353,460,920|

 51. Supplement notes of cash flow statement
(1) Supplement notes of cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary Info.|Amount of this term|Amount of last term|
|1. Net profit adjusted to cash flow of business|||
||--|--|
|operation|||
|Net profit|617,196,948|411,830,510|
|Add: Provisions for assets impairment|2,383,377|2,226,555|
|Depreciation of fixed assets,|||
|gas and petrol depreciation production goods|333,251,017|304,963,365|
|depreciation|||
|Amortisation of intangible assets|15,022,106|15,750,644|
|(Gains)/Losses on disposal of fixed assets and|||
|intangible assets|826,437|-3,232,027|
|(“-“ for gains)|||
|Finance expenses|||
||100,371,172|117,027,042|
|(“-“ for gains)|||
|Investment|||
||-320,762,071|-432,000|
|loss(“-“ for gains)|||
|Decrease in deferred tax assets|||
||10,205,895|4,971,543|
|(“-“ for increase)|||
|Increase of deferred income tax liability (“-“ for|||
||-3,204,513|-3,471,818|
|decrease)|||
|Decrease of inventory (“-“ for increase)|-64,473,835|-69,029,600|
|Decrease of operational receivable items (“-“ for|||
||-92,874,548|-189,519,421|
|increase)|||
|Increase of operational payable items (“-“ for|||
||-17,013,778|116,173,919|
|decrease)|||
|Cash flow generated by business operation, net|580,928,207|707,258,712|
|2. Major investment and financing operation not|||
||--|--|
|involving with cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|286,535,444|373,131,430|
|Less: Initial balance of cash|276,450,869|447,736,536|
|Net increasing of cash and cash equivalents|10,084,575|-74,605,106|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 (2) Related information of the acquisition or disposal of subsidiaries and other business units in the report period
||||
|-|-|-|
|Supplementary Info.|Amount of this term|Amount of last term|
|Related information of the acquisition of subsidiaries and|||
||--|--|
|other business units:|||
|3.Net cash paid for the acquisition of subsidiaries and other||39,001,200|
|business units|||
|Related information of the disposal of subsidiaries and|||
||--|--|
|other business units:|||
|1.Price of the disposal of subsidiaries and other business|||
||918,000,000||
|units:|||
|2.cash and cash equivalents received from the disposal|||
||468,000,000||
|of subsidiaries and other business units|||
|Less: cash and cash equivalents possessed by|||
||4,839,877||
|subsidiaries and other business units|||
|3.Net cash received from the disposal of subsidiaries and|463,160,123|20,000,000|
|other business units|||

(3) Composition of cash and cash equivalents
Unit: RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|I. Cash|286,535,444|276,450,869|
|Incl: Cash on hand|22,746|32,108|
|Cash at bank without restriction|286,306,259|276,313,988|
|others without restriction|206,439|104,773|
|III. Balance of cash and cash equivalents at end of|286,535,444|276,450,869|
|term|||

VIII. Related party relationships and transactions
1. Joint ventures and associates of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Type of|Place of|Legal|Nature of the|Registered|Shareholding Pr|oportion of|Related|Organization|
|Name||||||||||
||enterprise|registration|representative|business|capital|ratio|votes|relationship|code|
|1. Joint ventures||||||||||
|2. associates||||||||||
|CSG||||||||||
||Sino-foreign|Shenzhen, the||Manufacturin||||||
|Shenzhen|||Lu Wenhui||143,000,000|44.70%|44.70%||723033463|
||joint venture|PRC||g||||||
|Display||||||||||

2. Related party transactions
(1)The purchase and sale of goods and receive services
The purchase and sale of goods and receive services
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount of this term||Amount of last term||
|Related party|Related party|Pricing of related||Proportion of||Proportion of|
||transactions|party transaction|Amount|similar transactions|Amount|similar transactions|
|||||accounted||accounted|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||
|-|-|-|-|-|
|CSG|||||
|||With reference to|||
|Shenzhen|Sales of fine glass||4,553,216|0.14%|
|||the market price|||
|Display|||||

(2)Related guarantee
Statement on related guarantee
Nil.
3. Related receivables balance
Related receivables balance of the Company
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||End of term||Beginning of term||
|Items|Related party|||||
|||Amount|Provision for bad debts|Amount|Provision for bad debts|
|Accounts Receivable|CSG Shenzhen Display|4,096,621||544,391||
|Other Receivable|CSG Shenzhen Display|||20,491,742||

IX. Commitment Issues
1. Major commitment issues
Commitments relating to capital expenditure
As the balance sheet date, commitments relating to capital expenditure that has signed but not recognised in the financial statement are analyzed below:
30/6/2014 31/12/2013 Property, plant and equipment 721,516,254 589,482,656 2. Fulfilling of commitments made in previous periods
The commitment relating to capital expenditures at 31 December 2013 has been fulfilled.
XI. Other material events
1.assets and liabilities measured by fair value
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Profits and losses||||
||||Changes in fair|Impairment||
||Amount at the||||Amount at the end|
|Items||on the changes|value recognised in|recognised in||
||beginning of term||||of term|
|||in fair value|the equity|current year||
|Financial Assets||||||
|3. Available-for-sale||||||
||122,760,000||13,140,000||135,900,000|
|financial assets||||||
|Subtotal of Financial||||||
||122,760,000||13,140,000||135,900,000|
|Assets||||||
|Total|122,760,000||13,140,000||135,900,000|
|Financial liabilities|0||||0|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 2. Financial asset and liabilities dominated in foreign currency
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Profits and losses||||
||||Changes in fair|Impairment||
||Amount at the||||Amount at the end|
|Items||on the changes|value recognised in|recognised in||
||beginning of term||||of term|
|||in fair value|the equity|current year||
|Financial Assets||||||
|3. Foreign currency and||||||
||36,531,755|||764,346|84,955,746|
|receivables||||||
|Subtotal of Financial||||||
||36,531,755|||764,346|84,955,746|
|Assets||||||
|Financial liabilities|205,172,168||||165,660,832|

 3. Others
The Group's business activities will face a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The group's overall risk management plan for the financial market is not predictable, and strive to reduce the potential adverse effects on the financial performance.
(1) Market risk
(a) Currency risk
The Group mainly operates in mainland with most of the transactions settled in RMB, however some of the export business are settled in foreign currency. Besides, the recognized foreign currency assets, liabilities and foreign transactions are still exposed to currency risk. (Those foreign currency assets and liabilities are mainly USD). The Group monitors the scale of foreign currency transactions, foreign currency assets and liabilities, and adjust settlement currency of export business, to furthest reduce the currency risk.
As at 30 June 2014, financial assets and liabilities denominated in foreign currency held by the Group are as below: 30 June 2014
Other
USD foreign currencies Total Foreign Financial assets -
Cash at bank and on hand 8,626,699 20,544,784 29,171,483 Receivables 21,572,129 34,212,134 55,784,263 30,198,828 54,756,918 84,955,746 Foreign Financial liabilities -
Short-term borrowings 19,588,011 44,803,894 64,391,905 Payables 42,548,649 29,319,000 71,867,649 Long-term borrowings 6,328,278 - 6,328,278 Long-term borrowings due within 1 year 23,073,000 - 23,073,000 91,537,938 74,122,894 165,660,832 31 December 2013
Other
USD foreign currencies Total
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Foreign financial assets -
Cash at bank and on hand 14,432,704 4,532,123 18,964,827 Receivables 16,420,171 1,146,757 17,566,928 30,852,875 5,678,880 36,531,755 Foreign financial liabilities -
Short-term borrowings 52,695,525 37,536,513 90,232,038 Payables 13,140,063 23,890,708 37,030,771 6,270,784 6 , 2 7 0 , 7 8 4 Long-term borrowings -
71,638,575 7 1 , 6 3 8 , 5 7 5 Non-current liabilities due within one year -
143,744,947 61,427,221 205,172,168 At 30 June 2014, should RMB had appreciated/depreciatedby10% against USD, with all other variables held constant, net profit for the year would have increased or decreased at RMB 4,653,093. (31 December, 2013: approximately RMB 9,595,826).
(b) Interest rate risk
TheGroup’s interest rate risk arises from the long-term interest-bearing debt such as long-term bank borrowings and Corporate Bonds. Borrowings issued at variable rates expose the Group to cash flow interest-rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group adjusts the proportion of fixed interest rate debts and variable interest rate debts when the market environment changed. As at 30 June 2014, theGroup’s long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
30 June 2014 31 December 2013 Debt at fixed rates 1,993,347,401 1,991,041,175 Debt at variable rates 275,992,783 302,904,204 2,269,340,184 2,293,945,379 The Group continued to monitor the Group's interest rates. Increase of interest rates will lead to increase of interest expenses and have significant adverse effects on the Group. Therefore, the management monitor the latest market situation and make timely adjustments, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate.
In Jan. to Jun. 2014, if the floating interest rates had been 50 basis higher/lower with all other variables held constant, net profit for the year would have decreased or increased at RMB464,969. (Jan. to Jun. 2012:approximately RMB1,287,342).
(2) Credit risk
Credit risk is managed on group basis. Credit risk arises from deposits in banks, notes receivable, accounts receivable and other receivables.
As the Group's bank deposits are mainly placed in the state-owned banks and other large and medium listed banks, the management believe the credit risk should be limited and that no loss will occur due to event of default cause by those banks. Furthermore, as theGroup’s notes receivable are accepted by the state-owned banks and other large and medium listed banks, the management believe the credit risk should be limited.
Besides, the Group has set relevant policies to control the credit risk exposure for accounts receivable, other receivables and trade acceptance notes. The Group evaluatesclients’ credit aptitude and sets relevant credit periods based onclient’s financial position, possibility of guaranty from the third party, credit records and other factors like the current situation
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 of the market. The Group supervises theclients’ credit records at regular intervals. For the clients who have a rotten record, the Group will send payment reminders in written, shorten or cancel the credit period, etc. to ensure theGroup’s entire credit risk are under control.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by theGroup’s finance department in its headquarters. TheGroup’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 and securities that are readily convertible to cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institution so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities to meet the short-term and long-term liquidity requirements.
On 30 June 2014, the Group had net current liabilities of RMB 2,170 million and committed capital expenditures of RMB 721 million. Management will implement the following measures to manage the liquidation risk:
(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 assets and liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted contractual cash flows :
30 June 2014
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total Financial Assets
Cash at bank and on hand 287,736,235 - - - 287,736,235 Receivables 620,691,807 - - - 620,691,807 Financial assets available - - 135,900,000 135,900,000 for sale
908,428,042 135,900,000 1,044,328,042 Financial liabilities -
Short-term borrowings 2,027,418,481 - - - 2,027,418,481 Payables 1,328,307,046 - - - 1,328,307,046 Long-term borrowing due 191,278,086 - - - 191,278,086 within 1year
Long-term borrowing 17,009,463 80,951,056 219,270,006 - 317,230,525 Bonds payable 106,600,000 2,106,600,000 - - 2,213,200,000 3,670,613,076 2,187,551,056 219,270,006 - 6,077,434,138 31 December 2013
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total Financial Assets
Cash at bank and on hand 279,672,523 - - - 279,672,523 Receivables 569,686,196 - - - 569,686,196 Financial assets available - - - 122,760,000 122,760,000 for sale
849,358,719 - - 122,760,000 972,118,719 Financial liabilities -
Short-term borrowings 1,442,478,875 - - - 1,442,478,875
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Payables 1,604,631,381 - - - 1,604,631,381 Long-term borrowing due 410,672,685 - - 410,672,685 within 1year
Long-term borrowing 18,779,624 107,359,153 218,049,563 6,358,322 350,546,662 Bonds payable 106,600,000 2,106,600,000 - - 2,213,200,000 3,583,162,565 2,213,959,153 218,049,563 6,358,322 6,021,529,603 (4) Fair value estimation
(a) Financial instruments not measured at fair value
Other than the available-for-sale financial asset, theGroup’s financial assets and liabilities are not measured at fair value. The carrying amount of theGroup’s financial assets and liabilities approximate their fair value except the financial liabilities as below:
30 June 2014 31 December 2013
carrying amount fair value carrying amount fair value Bonds payable 1,993,347,401 2,002,700,000 1,991,041,175 1,985,000,000 1,993,347,401 2,002,700,000 1,991,041,175 1,985,000,000 The fair value of Corporate Bond traded in active markets is determined on quoted market prices at the balance sheet date.
(b) Financial instruments measured at fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value hierarchy are divided into the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) As at 30 June 2014, the financial assets measured at fair value by the above three levels are analysed below:
Level 1 Level 2 Level 3 Total Financial assets held for trading-
Available-for-sale equity 135,900,000 - - 135,900,000 instruments
The fair value of the financial instrument that is traded in an active market is determined at the quoted price in the active market. The fair value of financial instrument that is not traded in an active market is determined by using a valuation technique. Valuation techniques include using prices of recent market transactions between knowledgeable and willing parties, reference to the current fair value of another financial asset that is substantially the same with this instrument, and discounted cash flow analysis. Inputs to valuation techniques include prepayment rates, rates of estimated credit losses, and interest rates or discount rates.
As at 30 June 2014, the available-for-sale equity instrument is the investment in Golden Glass, the fair value of which was determined based on the price in the observable market.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 XII. Notes to Financial Statements of the Parent Company
1. Other account receivable
(1) Other receivable accounts
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of term||||Beginning of term||||
||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Categories|||||||||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||%||%||%||%|
|Other receivables provided bad debt provision in group|||||||||
|Related parties|3,670,699,97|3 100%|||3,082,033,658|100%|||
|Non-related parties|271,55|3 0%|5,431|2%|211,101|0%|4,222|2%|
|Sub-total of group|3,670,971,52|6 100%|5,431|0%|3,082,244,759|100%|4,222|0%|
|Total|3,670,971,52|6 --|5,431|--|3,082,244,759|--|4,222|--|

Statement on categories of other receivable accounts
Other receivable accounts with large amount and were provided bad debt provisions individually at end of period.
□Applicable√ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on age analyze basis
□Applicable√ Non-applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
√Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
|Name of portfolio|Book balance|proportion|Bad debt provision|
|Non-related parties|271,553|2%|5,431|
|Total|271,553|--|5,431|

 Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□Applicable√ Non-applicable
Other account receivable with minor amount but bad debt provision provided individually:
□Applicable√ Non-applicable
(2) Top 5 debtors of other receivable accounts
Unit: RMB
||||||
|-|-|-|-|-|
|||||Portion in total other|
|Name of the companies|Relation with the Company|Amount|Ages||
|||||receivables (%)|
|Yichang CSG Polysilicon Co,. Ltd.|Subsidiaries|1,455,440,191|Within one year|40%|
|Wujiang CSG Glass Co. Ltd.|Subsidiaries|659,031,049|Within one year|18%|
|Dongguan CSG Solar Glass Co,. Ltd.|Subsidiaries|295,819,307|Within one year|8%|
|Chengdu CSG Glass Co. Ltd.|Subsidiaries|200,920,409|Within one year|5%|
|Hebei CSG Glass Co. Ltd.|Subsidiaries|188,754,273|Within one year|5%|
|Total|--|2,799,965,229|--|76%|

 (3) Other accounts receivable from related parties
Unit: RMB
|||||
|-|-|-|-|
||Relation with the||Portion in total other receivables|
|Name of the companies||Amount||
||||(%)|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
|||||
|-|-|-|-|
||Company|||
|Yichang CSG Polysilicon Co,.||||
||Subsidiaries|1,455,440,191|40%|
|Ltd.||||
|Wujiang CSG Glass Co. Ltd.|Subsidiaries|659,031,049|18%|
|Dongguan CSG Solar Glass Co,.||||
||Subsidiaries|295,819,307|8%|
|Ltd.||||
|Chengdu CSG Glass Co. Ltd.|Subsidiaries|200,920,409|5%|
|Hebei CSG Glass Co. Ltd.|Subsidiaries|188,754,273|5%|
|Xianning CSG Energy||||
||Subsidiaries|155,255,095|4%|
|Conservation Glass Co. Ltd.||||
|Jiangyou CSG Mining||||
||Subsidiaries|153,069,440|4%|
|Development Co., Ltd.||||
|Dongguan CSG Architectural||||
||Subsidiaries|130,407,756|4%|
|Glass Co., Ltd.||||
|Sichuan CSG Energy||||
||Subsidiaries|114,865,909|3%|
|Conservation Glass Co. Ltd.||||
|Others|Subsidiaries|317,136,544|9%|
|Total|--|3,670,699,973|100%|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 2. Long-term equity investment
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Percentag|Voting|Statement on||||
|||||||||differences||Impairmen||
||||||||||||Cash dividend|
||Calculating||Opening||Closing|e of share|power|between the|Impairment|t provision||
|Company invested in||Initial costs||Changed by|||||||of the current|
||basis||balance||balance|in the|in the|shareholding|provision|provided|term|
|||||||||and voting||this term||
|||||||firm %|firm %|rights||||
|Shenzhen CSG Float Glass Co. Ltd|Cost method|705,736,250|714,685,255|-714,685,255||||||||
|Chengdu CSG Glass Co. Ltd.|Cost method|67,271,707|76,674,071||76,674,071|75%|75%|Yes|||106,204,641|
|Sichuan Energy Conservation Glass||||||||Yes||||
||Cost method|32,242,653|40,290,583||40,290,583|75%|75%||||60,445,475|
|Co. Ltd||||||||||||
|Tianjin CSG Architectural Glass||||||||Yes||||
||Cost method|133,500,000|144,404,554||144,404,554|100%|100%||||36,512,811|
|Co. Ltd||||||||||||
|Tianjin Energy Conservation Glass||||||||Yes||||
||Cost method|96,000,000|98,498,420||98,498,420|100%|100%||||42,953,099|
|Co. Ltd||||||||||||
|Dongguan CSG Architectural Glass||||||||Yes||||
||Cost method|180,000,000|193,618,971||193,618,971|100%|100%||||73,052,140|
|Co. Ltd||||||||||||
|Dongguan CSG Solar Glass Co. Ltd|Cost method|278,753,465|300,401,145|1,045,681|301,446,826|100%|100%|Yes||||
|Yichang CSG Silicon Co. Ltd|Cost method|562,489,000|577,043,114|55,914,930|632,958,044|100%|100%|Yes||||
|Yichang Nanbo Photoelectric Glass||||||||Yes||||
||Cost method|76,523,200|98,597,200|58,864,000|157,461,200|73.58%|66.70%|||||
|Co., Ltd.||||||||||||
|Wujiang CSG North-east||||||||Yes||||
||Cost method|240,000,000|251,313,658||251,313,658|100%|100%||||76,469,129|
|Architectural Glass Co. Ltd.||||||||||||
|Dongguan CSG PV-tech Co. Ltd|Cost method|301,276,564|308,122,789||308,122,789|100%|100%|Yes|||37,134,660|
|Hebei CSG Glass Co. Ltd.|Cost method|253,354,574|261,998,368||261,998,368|100%|100%|Yes|||32,523,071|
|CSG (Hong Kong) Co. Ltd.|Cost method|81,664,761|85,742,211||85,742,211|100%|100%|Yes||||
|Wujiang CSG Glass Co. Ltd.|Cost method|461,011,271|462,179,564||462,179,564|100%|100%|Yes||||
|Hebei Shichuang Glass Co., Ltd.|Cost method|243,000,000|243,062,801||243,062,801|100%|100%|Yes|||32,501,190|
|CSG (Australia) Co., Ltd|Cost method|||1,393,524|1,393,524|51%|51%|Yes||||
|Jiangyou CSG Mining Development||||||||Yes||||
||Cost method|40,000,000|40,725,041||40,725,041|100%|100%|||||
|Co., Ltd||||||||||||
|Xianning CSG Co.,Ltd.|Cost method|176,250,000|177,041,817||177,041,817|100%|100%|Yes||||
|Xianning Energy Conservation||||||||Yes||||
||Cost method|123,750,000|123,781,576||123,781,576|75%|75%|||||
|Glass Co. Ltd||||||||||||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Qingyuan CSG Energy saving new||||||||Yes|||
||Cost method|300,000,000|300,185,609||300,185,609|100%|100%||||
|material Co., Ltd|||||||||||
|Others (i)|Cost method|206,275,847|207,486,467|-41,045,678|166,440,789|100%|100%|Yes|15,000,000||
|Total|--|4,559,099,292|4,705,853,214|-638,512,798|4,067,340,416|--|--|--|15,000,000|497,796,216|

 Statement on long-term equity investment
As at 30 June 2014, included in the investments in subsidiaries were deemed investment costs of RMB 103,730,921, the fair value of the equity instruments of the Company granted to the employee of the subsidiaries for their serviced provided to the subsidiaries for which the Company did not charge the subsidiaries. (31 December 2013: 112,679,926)
(i) Others mainly included subsidiaries of architectural segment, which located in Shenzhen but the production lines have moved to Dong guan. The operations of the subsidiaries have discontinued. The Company has made provision against the long term investment in these subsidiaries.
Associated enterprise:
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Movement|||||||
||Initialinvestmentcost(inRMB 10thousand)|31 Dec. 2013|Addition|Cashdividendannouncedto distribute|Net profit or lossadjustment byequity method|Influence ofCapital Increasedby othershareholders|OtherEquityMovement|reduce|31 Dec. 2014|
|ShenzhenCSGDisplayTechnologyCo. Ltd|18,633|313,935,670||-26,235,183|68,976,368||363,052||357,039,907|
|CSG(Australia)Co., Ltd|AUD24.5|1,832,311||-444,999|852,318|||-2,239,630|-|
|||315,767,981||-26,680,182|69,828,686||363,052|-2,239,630|357,039,907|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||||||
|-|-|-|-|-|-|-|
||Accounting Method|Shareholding ratio|Proportion of votes|Difference between Shareholding ratio andProportion of votes|Provision forbad debt|Provision addition forimpairment this year|
|ShenzhenCSG DisplayTechnologyCo. Ltds|Equity Method|44.70%|44.70%|NA|-|-|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 3. Revenue and costs
(1) Revenue
Unit: RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|main business income|0||
|Other business income|0|741,079|
|Total|0|741,079|
|Cost|0|41,575|

 4. Investment income
(1) Details of investment gains
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Long-term equity investment gains on cost equity|497,796,216|536,744,456|
|method basis|||
|Long-term equity investment gains on cost basis|69,828,686||
|Investment gains from disposal of long-term equity|||
||203,314,745||
|investment|||
|Investment gains in period of holding disposable|||
||82,836|331,344|
|financial assets|||
|other|519,763||
|Total|771,542,246|537,075,800|

 (2) Long-term equity investment gains on cost method
Unit: RMB
|||||
|-|-|-|-|
||Occurred in current|Occurred in previous||
|Company invested in|||Causation of change|
||term|term||
|Chengdu CSG Glass Co. Ltd.|106,204,641|63,757,372|Profit increased|
|Wujiang CSG East China Architectural Glass||||
||76,469,129|74,937,311|Profit increased|
|Co., Ltd.||||
|Dongguan CSG Architectural Glass Co., Ltd.|73,052,140|78,628,396|Profit decreased|
|Sichuan CSG Energy Conservation Glass||||
||60,445,475|56,554,983|Profit increased|
|Co., Ltd||||
|Tianjin CSG Energy Conservation Glass||||
||42,953,099|58,374,264|Profit decreased|
|Co., Ltd||||
|Total|359,124,484|332,252,326|--|

(3) Long-term equity investment gains on equity method
Unit: RMB
|||||
|-|-|-|-|
|Company invested in|Occurred in current|Occurred in previous|Causation of change|
||term|term||
|Shenzhen CSG Display Technology Co. Ltd|68,976,368||cost method transfer to equity method|
|CSG (Australia) Co., Ltd|852,318||cost method transfer to equity method|

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|Total|69,828,686|--|

Statements on investment gains
Significant restrictions on repatriation of investment income do not exist.
5. Supplementary information of cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary Info.|Occurred in current term|Occurred in previous term|
|1. Net profit adjusted to cash flow of business operation|--|--|
|Net profit|684,157,291|504,555,067|
|Plus: Asset impairment provision|1,209|-774,291|
|Fixed asset depreciation, gas and petrol depreciation, production|3,367,529|1,062,536|
|goods depreciation|||
|Amortizing of intangible assets|221,900|221,900|
|Amortization of long-term prepaid expenses||3,741|
|Financial expenses (“-“ for gains)|40,436,468|13,656,606|
|Loss from investment (“-“ for gains)|-771,542,246|-537,075,800|
|Decrease of operational receivable items (“-“ for increase)|-60,454|130,452|
|Increase of operational payable items (“-“ for decrease)|-34,220,353|669,489|
|Cash flow generated by business operation, net|-77,638,656|-17,550,300|
|2. Major investment and financing operation not involving with cash|--|--|
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|143,401,415|118,356,560|
|Less: Initial balance of cash|129,337,516|139,915,851|
|Net increasing of cash and cash equivalents|14,063,899|-21,559,291|

 XII. Supplementary Information
1. Details of extraordinary profit (gains)/loss in the term
Unit: RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses from the disposal of non-current asset (including the write-off|-826,437||
|that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the|44,447,997||
|subsidy enjoyed in quota or ration according to national standards, which|||
|are closely relevant to enterprise’s business)|||
|Gains on disposal of available-for-sale financial assets, gains and losses|108,000||
|from change of fair values of held-for-transaction financial assets and|||
|financial liabilities except for the effective hedge business related to 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|12,061,958||
|items|||
||I308,895,397|t was mainly due to theCompany sold 100% equity ofShenzhen CSG Float Glass|
|Other item that satisfied the definition of non-recurring gains and losses|||

CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014
||||
|-|-|-|
|||Co., Ltd. and the added valueamortization of remainingequity of Shenzhen CSGDisplay Technology Co., Ltd.|
|Less: Impact on income tax|12,081,899||
|Impact on minority shareholders’ equity (post-tax)|6,329,502||
|Total|346,275,514|--|

If there was government subsidies considered for recurring items in the current, should explain item by item disclosure that reason.□Applicable
√ Not applicable
2. Net income on asset ratio and earning per share
Unit: RMB
|||||
|-|-|-|-|
|Profit of the report period|Weighted average net|Earnings per share||
||income/asset ratio (%)|Basic earnings per share|Diluted earnings per share|
|Net profit attributable to common shareholders of theCompany||||
||7.38%|0.28|0.28|
|Net profit attributable to the common owners of thePLC after deducting of non-recurring gains/losses||||
||3.04%|0.12|0.12|

3. Irregular situation and causes of items in the financial statements
The financial statement line items which fluctuation is more than30% (including30%) compared with last year, or account5% or more of total assets for balance sheet items or10% or more of total profit for income statement items are analyzed as below: Items of balancesheet：
|||||||
|-|-|-|-|-|-|
|FSLIs|30 June 2014|31 December 2013|Increase/Decrease|Rate|Note|
|Account receivable|245,616,313|136,430,683|109,185,630|80%|(1)|
|prepayment|119,246,734|73,378,329|45,868,405|63%|(2)|
|other receivables|41,390,951|109,366,023|(67,975,072)|-62%|(3)|
|other current assets|187,292,116|1,021,464,095|(834,171,979)|-82%|(4)|
|Long-term equity investment|751,594,586|770,037,176|(18,442,590)|-2%|(5)|
|Fixed assets|9,208,002,553|7,979,937,683|1,228,064,870|15%|(6)|
|Construction in process|1,964,018,775|2,762,418,100|(798,399,325)|-29%|(7)|
|Intangible assets|948,567,405|933,329,528|15,237,877|2%|(8)|
|Deferred income tax assets|107,855,079|164,787,158|(56,932,079)|-35%|(9)|
|Short-term loans|1,958,295,208|1,424,743,800|533,551,408|37%|(10)|
|notes payable|8,221,924|4,429,188|3,792,736|86%|(11)|
|Employee salary payable|112,079,096|166,377,238|(54,298,142)|-33%|(12)|
|Tax payable|99,596,206|160,754,703|(61,158,497)|-38%|(13)|
|Interest payable|86,785,042|60,767,534|26,017,508|43%|(14)|
|Other account payables|231,749,754|557,130,583|(325,380,829)|-58%|(15)|
|Due within one year of non|182,026,370|399,849,715|(217,823,345)|-54%|(16)|
|current liabilities||||||

Notes:
1. The increase of accounts receivable was due to the growth of sales revenue of parts of subsidiaries.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 2. The increase of prepayment was mainly because of the increase of prepayment for engineering equipment. 3. The decrease of other receivables was mainly because fire indemnity of Dongguan CSG PV, which was receivable of the end of last period, was received in the report period.
4. The decrease of other current assets was mainly due to the long-term assets possessed by Shenzhen CSG at the end of last period transferred into held-for-sale, and equity transfer procedure of Shenzhen CSG was completed in the report period.
5. The decrease of long-term equity investment was mainly due to profit and net profit changes of CSG Shenzhen Display, the Company's affiliated company.
6. The increase of fixed assets was mainly because construction in process of some subsidiaries was transferred into fixed assets.
7. The decrease of construction in process was mainly because construction in process of part of subsidiaries was transferred into fixed assets.
8. The increase of intangible assets increase was mainly due to outsourcing of intangible assets in some subsidiaries andR&D of some subsidiaries changed into patents.
9. The decrease of deferred income tax was mainly because the deferred income tax assets recognized by Shenzhen CSG reduced for the equity transfer procedure had been completed.
10. The increase of short-term loans was mainly due to the increase of issued short-term financing bills and bank loans in the report period.
11. The increase of notes payable was mainly due to the increase in business clearing method.
12. The decrease of Employee salary payable was mainly because the annual management performance incentive fund and year-end bonus of last year were paid in the report period.
13. The decrease of tax payable was mainly due to liquidation taxes in the report period.
14. The increase of interest payable was mainly due to increase in interest on bonds payable.
15. The decrease of other payables was mainly because the advance of Shenzhen CSG stock equity transfer was counted in this item, while the equity transfer procedures was completed in the report period.
16. The decrease of non-current liabilities within one year was mainly because part of bank loan was due for payment.
Income statement items:
|||||||
|-|-|-|-|-|-|
|Income statement items:|Jan. to Jun. 2014|Jan. to Jun. 2013|Increase/Decrease|Rate|Note|
|Business income|3,262,681,672|3,536,965,783|(274,284,111)|-8%|(1)|
|Investment gains|320,762,071|432,000|320,330,071|74150%|(2)|
|Income tax|60,997,406|113,728,215|(52,730,809)|-46%|(3)|
|Net profit|617,196,948|411,830,510|205,366,438|50%|(4)|
|other comprehensive|11,104,135|(10,269,219)|21,373,354||(5)|
|income||||||

Notes:
1. The decrease of business income 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.
2. The increase of investment income was mainly due to the transfer of Shenzhen CSG in the report period. 3. 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.
4. The increase of net profit was mainly because investment income recognized by the transfer of Shenzhen CSG in the report period.
5. The change of other comprehensive income was mainly because the fair value of Golden Glass equity held by the Company changed.
CSG HOLDING CO., LTD. SEMI-ANNUAL REPORT 2014 Section IX. Documents available for Reference
I. Text of the Semi-annual Report carrying the legalrepresentative’s signature;
II. Text of the financial report carrying the signatures and seals of the legal representative, C.F.O and person in charge of financial organization;
III. All texts of theCompany’s documents and original public notices disclosed in the papers appointed by CSRC in the report period.
Board of Directors of
CSG Holding Co., Ltd.
5 August 2014