CSG HOLDING CO., LTD.
THE THIRD QUARTER REPORT 2018
Chairman of the Board:
CHEN LIN
October 2018
CSG HOLDING CO., LTD. The Third Quarter Report 2018 Section I. Important Notice
Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and completeness of the whole contents.
All directors were present the meeting of the Board for deliberating the Third Quarter Report of 2018 of the Company in person.
Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accounting and Ms.Wang Wenxin, principal of the financial department (accounting officer) confirm that the Financial Report enclosed in the Third Quarter Report of 2018 of the Company is true, accurate and complete.
This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.
CSG HOLDING CO., LTD. The Third Quarter Report 2018 Section II. The Basic Information of the Company
I. Main accounting data and financial indices
Whether retrospective adjustment has been carried out on financial reports of previous periods or not
□Yes √ No
||||||||
|-|-|-|-|-|-|-|
||||||Increase/decrease in||
||The end of current period||The end of last year||comparison with the end of||
||||||last year||
|Total assets (RMB )|19,846,932,488.00||19,535,002,368.00||1.60%||
|Net assets attributable to shareholders of|8,956,264,606.00||8,458,587,873.00||||
||||||5.88%||
|the Company (RMB )|||||||
|||Increase/decrease in||||Increase/decrease in|
|||||From 1 January to|||
||Current period|comparison with the||||comparison with the|
|||||30 September 2018|||
|||same period of last year||||same period of 2017|
|Operating income (RMB)|2,680,693,459.00|-5.83%||8,151,251,436.00||4.63%|
|Net profit attributable to shareholders of|116,279,185.00|||469,116,338.00|||
|||-63.44%||||-34.02%[Note (6)]|
|the listed company (RMB) [Note (1)]|||||||
|Net profit attributable to shareholders of|||||||
|the listed company after deducting|||||||
||86,201,062.00|-69.01%||419,639,159.00||-34.28%|
|non-recurring gains and losses (RMB)|||||||
|[Note (2)]|||||||
|Net cash flow arising from operating||||1,410,826,022.00|||
||--|--||||-21.74%|
|activities (RMB)|||||||
|Basic earnings per share (RMB/Share)|0.04|||0.17|||
|||-66.67%||||-34.62%|
|[Note (3)]|||||||
|Diluted earnings per share (RMB/Share)|0.04|||0.16|||
|||-66.67%||||-38.46%|
|[Note (4)]|||||||
|Weighted average ROE [Note (5)]|1.34%|-2.57%||5.39%||-3.35%|

 Note:
Note (1): The data in the above table has included apportionment of equity incentive expense included in profit and loss of RMB 140.41 million from Jan. to Sep. 2018, which affected the net profit attributable to shareholders of the listed company of RMB 123.43 million . In the period from Jan. to Sep. 2018, after eliminating the impact of equity incentive cost sharing, the net profit attributable to shareholders of the listed company was RMB 592.54 million , with a year-on-year decrease of RMB 118.47 million and decrease ratio of17%.
Note (2): After eliminating the impact of equity incentive cost sharing, net profit attributable to shareholders of the listed company
from Jan. to Sep. 2018 was RMB 543.07 million with a year-on-year decrease of RMB 95.42 million and decrease ratio of15%.
Note (3): After eliminating the impact of equity incentive cost sharing, basic earnings per share from Jan. to Sep. 2018 was RMB
CSG HOLDING CO., LTD. The Third Quarter Report 2018 0.21 per share, with year-on-year decrease ratio of19%.
Note (4): After eliminating the impact of equity incentive cost sharing, diluted earnings per share from Jan. to Sep. 2018 was RMB 0.21 per share, with year-on-year decrease ratio of19%.
Note (5): After eliminating the impact of equity incentive cost sharing, weighted average ROE from Jan. to Sep. 2018 was6.81%, with year-on-year decrease ratio of1.93%.
Note (6): The main reason for the decline was that the prices of major products in the solar industry continued to decline as the installed capacity of new ordinary PV power stations dropped sharply after the "5.31 New Policy". In the period from Jan. to Sep. 2018, the solar industry realized revenue of RMB 1.977 billion, with a year-on-year decrease of RMB 242 million compared and decrease ratio of10.9%, and a cumulative net profit of RMB -103 million, a year-on-year decrease of RMB 309 million.
In the period from Jan. to Sep. 2018, the operation of other industries of the Company was in good condition. The glass industry achieved operating income of RMB 5.518 billion, with a year-on-year increase of RMB 431 million and growth rate of8.5%, and net profit of RMB 625 million, with a year-on-year increase of RMB 61 million and growth rate of11%. The electronic glass and display industry realized revenue of RMB 729 million from Jan. to Sep. 2018, with a year-on-year increase of RMB 123 million of20%, and net profit of RMB 104 million, with a year-on-year increase of RMB 58 million and growth rate of122%.
The total share capital of the company as of the previous trading day of disclosure:
|||
|-|-|
|The total share capital of the company as of the previous trading day of disclosure (share)|2,863,277,201|
|Fully diluted earnings per share calculated with latest equity (RMB/share)|0.16|

 Items and amounts of extraordinary profit (gains)/loss
√Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
||Amount from the beginning of year||
|Item||Note|
||to the end of the report period||
|Gains/losses from the disposal of non-current asset (including the write-off that|||
||-455,305.00||
|accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the|||
|subsidy enjoyed in quota or ration according to national standards, which are|54,298,963.00||
|closely relevant to enterprise’s business)|||
|Other non-operating income and expenditure except for the aforementioned|||
||7,190,386.00||
|items|||
|Less: Impact on income tax|9,103,310.00||
|Impact on minority shareholders’ equity (post-tax)|2,453,555.00||
|Total|49,477,179.00|--|

 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
It did not exist that the items were defined as recurring profit (gain)/loss according to the definition or the list of extraordinary profit
CSG HOLDING CO., LTD. The Third Quarter Report 2018 (gain)/loss inQ&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary Profit/loss in the report period.
II. Total of shareholders at the end of the report period and particulars about shareholdings of the top ten shareholders
1. Particulars about the total number of common shareholders and preference shareholders with voting rights recovered as well as the shareholdings of the top ten shareholders
Unit: Share
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Total number of common shareholders||||Total number of preference shareholders with voting rights|||||||||
||152,928||||||||||0||
|at the end of the report period||||recovered at end of report period (if applicable)|||||||||
|Particulars about the shareholdings of the top ten shareholders|||||||||||||
||||||||||Number of share||||
||||||Proportion|||Amount of|||||
||||||||Amount of||pledged/frozen||||
|Name of shareholder||Nature of shareholder|||of shares|||restricted|||||
||||||||shares held||Share||||
||||||held (%)|||shares held||||Amount|
||||||||||status||||
|Foresea Life Insurance Co., Ltd. – HailiNiannian||Domestic non state-ownedlegal person|||14.81%||423,988,067|0|||||
|Foresea Life Insurance Co., Ltd. –Universal Insurance Products||Domestic non state-ownedlegal person|||3.76%||107,659,097|0|||||
|Shenzhen Jushenghua Co., Ltd.||Domestic non state-ownedlegal person|||2.75%||78,757,679|0|||||
|Foresea Life Insurance Co., Ltd. – OwnFund||Domestic non state-ownedlegal person|||2.06%||58,877,419|0|||||
|Central Huijin Asset Management Ltd.||State-owned legal person|||1.84%||52,650,444|0|||||
|China Galaxy International Securities(Hong Kong) Co., Limited||Foreign legal person|||1.30%||37,313,064|0|||||
|China Merchants Securities (HK) Co.,Limited||State-owned legal person|||1.02%||29,093,513|0|||||
|Shenzhen International Holdings (SZ) Limited||Domestic non state-ownedlegal person|||0.92%||26,450,000|0|||||
|Wang Heng||Domestic natural person|||0.64%||18,375,167|0|||||
|VANGUARD EMERGING MARKETSSTOCK INDEX FUND||Foreign legal person|||0.61%||17,563,848|0|||||
|Particulars about top ten shareholders with unrestricted shares held|||||||||||||
||||Amount of|||Type of shares|||||||
|Name of shareholder|||unrestricted shares||||||||||
|||||||Type||||Amount|||
||||held||||||||||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
|||||
|-|-|-|-|
|Foresea Life Insurance Co., Ltd. – Haili Niannian|423,988,067|RMB ordinary shares|423,988,067|
|Foresea Life Insurance Co., Ltd. – UniversalInsurance Products|107,659,097|||
|||RMB ordinary shares|107,659,097|
|Shenzhen Jushenghua Co., Ltd.|78,757,679|RMB ordinary shares|78,757,679|
|Foresea Life Insurance Co., Ltd. – Own Fund|58,877,419|RMB ordinary shares|58,877,419|
|Central Huijin Asset Management Ltd.|52,650,444|RMB ordinary shares|52,650,444|
|China Galaxy International Securities (Hong Kong)Co., Limited|37,313,064|||
|||Domestically listed foreign shares|37,313,064|
|China Merchants Securities (HK) Co., Limited|29,093,513|Domestically listed foreign shares|29,093,513|
|Shenzhen International Holdings (SZ) Limited|26,450,000|RMB ordinary shares|26,450,000|
|Wang Heng|18,375,167|RMB ordinary shares|18,375,167|
|VANGUARD EMERGING MARKETS STOCKINDEX FUND|17,563,848|||
|||Domestically listed foreign shares|17,563,848|
||Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili|||
||Niannian, Foresea Life Insurance Co., Ltd.-Universal Insurance Products,|||
||Foresea Life Insurance Co., Ltd.-Own Fund are all held by Foresea Life|||
||Insurance Co., Ltd. Shenzhen Jushenghua Co., Ltd. is a related legal person|||
||of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another|||
|Statement on associated relationship or consistent|related legal person of Foresea Life Insurance Co., Ltd, which held|||
|action among the above shareholders:|36,534,458 shares via China Galaxy International Securities (Hong Kong)|||
||Co., Limited.|||
||Except for the above-mentioned shareholders, It is unknown whether other|||
||shareholders belong to related party or have associated relationship|||
||regulated by the Management Regulation of Information Disclosure on|||
||Change of Shareholding for Listed Companies.|||
|Explanation on shareholders involving margin||||
||N/A|||
|business (if applicable)||||

Whether the top ten shareholders or top ten shareholders with unrestricted shares carried out buy back deals in the report period□Yes√ No
There were no buy back deals carried out by the top ten shareholders or top ten shareholders with unrestricted shares held in the report period.
2. Total number of preference shareholders and particulars about the shareholdings of the top ten preference shareholders
□Applicable√ Not applicable
CSG HOLDING CO., LTD. The Third Quarter Report 2018 Section III. Important events
I. Particulars and explanations about significant changes in main accounting statements and financial indices
√Applicable□Not applicable
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item of balance sheet|Note|30 September 2018|31 December 2017|Increased/Decreasedamount|Rate|
|Other current assets|(1)|121,620,340|200,847,989|(79,227,649)|-39%|
|Construction in progress|(2)|2,024,910,115|1,417,624,618|607,285,497|43%|
|Long-term prepaid expenses|(3)|13,171,381|2,223,397|10,947,984|492%|
|Deferred tax assets|(4)|119,434,919|80,872,862|38,562,057|48%|
|Other non-current assets|(5)|85,471,681|51,941,352|33,530,329|65%|
|Long term borrowings|(6)|2,349,500,000|1,554,120,000|795,380,000|51%|
|Long-term payables|(7)|683,574,458|1,161,794,247|(478,219,789)|-41%|
|Special reserves|(8)|4,508,765|3,224,938|1,283,827|40%|
|Other comprehensive income|(9)|5,104,057|1,948,943|3,155,114|162%|
|Item of income statement|Note|From January toSeptember 2018|From January toSeptember 2017|Increased/Decreasedamount|Rate|
|Administrative expenses|(10)|523,550,697|347,183,080|176,367,617|51%|
|Asset impairment losses|(11)|5,545,468|2,971,645|2,573,823|87%|
|Other income|(12)|54,760,584|25,096,345|29,664,239|118%|
|Investment income|(13)|-|427,638|(427,638)|-100%|
|Income from asset disposal|(14)|(455,305)|243,956|(699,261)|-287%|
|Non-operating income|(15)|8,221,388|63,678,488|(55,457,100)|-87%|
|Income tax expense|(16)|89,021,326|139,912,194|(50,890,868)|-36%|
|Net profit attributable toshareholders of the parentcompany|(17)|469,116,338|711,011,371|(241,895,033)|-34%|
|shareholders' gains and losses|(18)|16,781,444|10,810,974|5,970,470|55%|
|Other comprehensive income|(19)|3,155,114|(1,946,922)|5,102,036|-|

 Note:
(1) The decrease in other current assets was mainly due to the fact that some subsidiaries received government refunds of VAT. (2) The increase in construction in progress was mainly due to the transfer of fixed assets of some subsidiaries to construction in
progress.
(3) The increase in long-term deferred expenses is mainly due to the amortization of land lease payments.
CSG HOLDING CO., LTD. The Third Quarter Report 2018 (4) The increase in deferred income tax assets was mainly due to the increase in share-based payment and tax losses.
(5) The increase in other non-current assets was mainly due to the increase in prepaid engineering equipment.
(6) The increase in long-term borrowings was mainly due to the new issue of medium-term notes in the current period.
(7) The decrease in long-term payables was mainly due to the repayment of financial lease payments in the current period.
(8) The increase in special reserves was mainly due to increased investment in safety production.
(9) The increase in other comprehensive income was mainly due to the change in the translation difference of foreign currency statements.
(10) The increase in administrative expenses was mainly due to the amortization of restricted stock expenses.
(11) The increase in asset impairment losses was mainly due to the increase in accounts receivable and the lower balance of the previous period.
(12) The increase in other income was mainly due to the reclassification of non-operating income as required by accounting standards.
(13) The decrease in investment income was mainly due to the fact that there was no occurrence in the current period and the amount incurred in the previous year was small.
(14) The decrease in income from asset disposal was mainly due to disposal of non-current assets loss.
(15) The decrease in non-operating income was mainly due to the reclassification of non-operating income as required by accounting standards and a decrease in current period.
(16) The decrease in income tax expenses was mainly due to the decrease in income tax expenses of some subsidiaries.
(17) The decrease in net profit attributable to shareholders of the parent company was mainly due to the impact of “5.31 New Policy” and the decline in profitability of some subsidiaries.
(18) The increase in minority shareholders' gains and losses was mainly due to the increase in net profit of some subsidiaries with minority shareholders.
(19) The increase in other comprehensive income was mainly due to the change in the translation difference of foreign currency statements.
II. The progress of material events and the impact as well as the analysis of solutions
√Applicable□ Not applicable
1. Short-term Financing Bills
On Dec.14, 2016, the second extraordinaryshareholders’ general meeting of 2016 of CSG deliberated and approved the proposal of the offering and registration of short-term financing bills, and agreed theCompany’s registration and issuance of short-term financing bills with a total amount of RMB 2.7 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. However, the term of each issue shall not be longer than one year and the registered quota shall not exceed 40 percent of theCompany’s net assets.
2. Ultra-short-term financing bills
On 14 May 2018, the 2017 Annual General Meeting ofShareholders’ deliberated and approved the proposal of application for registration and issuance of ultra-short-term financing bills with registered capital of RMB 4 billion at most and validity within 2 years (This amount is not subject to a40% net asset limit) which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. On September 17, 2018, National Association of Financial Market Institutional Investors (NAFMII) held the 63rd registration meeting of 2018, in which NAFMII decided to accept the registration of theCompany’s ultra-short-term financing bills, amounting to RMB 1.5 billion and
CSG HOLDING CO., LTD. The Third Quarter Report 2018 valid for two years. China Minsheng Banking Corporation Limited and Industrial Bank Co., Ltd. were joint lead underwriters of these medium term notes which could be issued by stages within period of validity of the registration.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
3. Perpetual bonds
On April 15, 2016, theShareholders’ General Meeting 2015 of CSG deliberated and approved the proposal of application for registration and issuance of perpetual bonds, and agreed the Company to register and issue perpetual bonds with total amount of RMB 3.1 billion which could be issued by stages within period of validity of the registration according to theCompany’s actual demand for funds and the capital status of inter-bank market.
4. Medium-term notes
On December 10, 2014, the First ExtraordinaryShareholders’ General Meeting 2014 of CSG Holding Co., Ltd deliberated and approved the proposal of application for registeration and issuance of medium term notes with total amount of RMB 1.2 billion at most. On May 21, 2015, National Association of Financial Market Institutional Investors (NAFMII) held the 32nd registration meeting of 2015, in which NAFMII decided to accept the registration of theCompany’s medium-term notes, amounting to RMB 1.2 billion and valid for two years. China Merchants Bank Co., Ltd. and Shanghai Pudong Development Bank Co., Ltd. were joint lead underwriters of these medium-term notes which could be issued by stages within period of validity of the registration. On July 10, 2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5 years at the issuance rate of4.94%, which will be redeemed on July 14, 2020.
On April 15, 2016, theShareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for registration and issuance of medium term notes with total amount of RMB 0.8 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds. On March 2, 2018, National Association of Financial Market Institutional Investors (NAFMII) held the 14th registration meeting of 2018, in which NAFMII decided to accept the registration of theCompany’s medium term notes, amounting to RMB 0.8 billion and valid for two years. Shanghai Pudong Development Bank Co., Ltd. and China CITIC Bank Corporation Limited were joint lead underwriters of these medium term notes which could be issued by stages within period of validity of the registration. On May 4, 2018, the Company issued the first batch of medium-term notes with total amount of RMB 0.8 billion and valid term of 3 years at the issuance rate of7%, which will be redeemed on May 4, 2021.
On May 22, 2017, theShareholders’ General Meeting of 2016 of CSG deliberated and approved the proposal of application for registration and issuance of medium term notes with total amount of RMB 1 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
5. Implementation of theCompany’s stock incentive plan
On Oct. 10, 2017, the third meeting of the Company's eighth session of the board of directors deliberated and approved 2017 A-share Restricted Stock Incentive Plan (Draft) of CSG and its abstract, the Implementation Evaluation and Management Measures of 2017 A-share Restricted Stock Incentive Plan (Draft) of CSG and the Proposal to Apply for theShareholders’ Meeting to Authorize the Board of Directors to Handle the Issues Related to 2017 A-share Restricted Stock Incentive Plan. For the above-mentioned contents, please refer to the Decision Bulletin of the Third Meeting of the Eighth Session of the Board of Directors (Notice No. 2017-063) published in www.cninfo.com.cn on Oct. 11, 2017. The independent directors of the company have issued independent opinions on the issues related to the company's 2017 restricted A-share incentive plan.
On Oct. 26, 2017, 2017 fifth temporaryshareholders’ meeting of the company convened the above three resolutions. On Dec. 11, 2017, the 21st temporary meeting of the eighth session of the board of directors deliberated and approved the Resolution on Adjusting
CSG HOLDING CO., LTD. The Third Quarter Report 2018 the Granting List and Quantity of Targets of 2017 A-share Restricted Stock Incentive Plan. It is determined that 454 staff will be granted with 97,511,654 restricted shares on Dec. 11, 2017. The first award price is RMB 4.28 /share and 17,046,869 restricted shares will be reserved.The granted shares were registered at the China Registration and Clearing Corporation Shenzhen Branch and were listed on December 25, 2017. For detailed contents, refer to the Announcement on Completion of the Granting of 2017 Restricted A-shares (Notice No.: 2017-079) published on Juchao Information Network (www.cninfo.com.cn) on Dec. 22, 2017. On July 20, 2018, the Company held the extraordinary meeting of the eighth board of directors and extraordinary meeting of the eighth board of supervisors, and reviewed and approved the “Proposal on Repurchase and Restricting Partially Restricted Stocks of Restricted Stock Incentive Plan”, on which the independent director of the Company issued consent opinions andV&T (Shenzhen) Law Firm issued the corresponding legal opinions. And the Proposal was approved by the Second ExtraordinaryShareholders’ General Meeting 2018 on August 6, 2018. As of September 10, 2018, the Company had completed the cancellation procedures for the above-mentioned restricted stocks at China Securities Depository and Clearing Co., Ltd. Shenzhen Branch. The total number of shares of the Company was changed from 2,856,769,678 shares to 2,853,450,621 shares. For details, please refer to the Announcement on the Completion of Partial Restricted Stock Repurchase and Cancellation (Notice No.: 2018-052) published on Juchao Information Network (www.cninfo.com.cn) on September 11, 2018.
On September 13, 2018, the Company held the extraordinary meeting of the eighth board of directors and extraordinary meeting of the eighth board of supervisors, and reviewed and approved the “Proposal on granting reserved restricted stock for incentive objects for the 2017 Restricted Stock Incentive Plan”. According to the relevant provisions of “2017 A-share Restricted Stock Incentive Plan (Draft) of CSG” (hereinafter referred to as “Incentive Plan”) and the authorization of the Fifth ExtraordinaryShareholders’ General Meeting 2017, proposed by the Remuneration and Appraisal Committee of The Board of Directors, The Board of Directors of the Company considered that the conditions for granting reserved stocks under the Incentive Plan had been fulfilled, and agreed to grant reserved restricted incentive stocks to the incentive objects on September 13, 2018, and granted a total of 9,826,580 reserved restricted stocks to 75 incentive targets at a price of RMB 3.68 per share. As the Company implemented the 2017 profit distribution plan, the number of reserved stocks and the price of the reserved shares have been adjusted according to the relevant provisions of the Incentive Plan and the authorization of the Fifth ExtraordinaryShareholders’ General Meeting 2017. The granted shares were registered at the China Registration and Clearing Corporation Shenzhen Branch and were listed on September 28, 2018. For details, please refer to the Announcement on the Completion of the Reserved Restricted Stocks Grant (Notice No.:2018-056) published on Juchao Information Network (www.cninfo.com.cn) on September 26, 2018.
According to the relevant provisions of the Accounting Standards for Enterprises, the implementation of restricted shares will have certain impacts on the financial situation and operating results of the company in the coming years. The results will be based on the annual audit report issued by the accounting firm.
III. Commitments made by the actual controller, the shareholders, the related parties, the purchasers and the Company which failed to be fulfilled in time during the report period□ Applicable√Not applicable
There were no commitments made by the actual controller, the shareholders, the related parties, the purchasers or the Company which failed to be fulfilled in time during the report period.
IV. Prediction of business performance of 2018
Alert of loss or significant change in accumulative net profit from the beginning of year to the end of the next report period or compared with the same period of last year, and statement of causations.
□ Applicable√Not applicable
CSG HOLDING CO., LTD. The Third Quarter Report 2018 V. Securities investment
□ Applicable√Not applicable
The Company had no securities investment in the report period.
VI. Entrusted financial management
√Applicable□ Not applicable
Unit: RMB 0,000
||||||
|-|-|-|-|-|
|||||Overdue amount not|
|Specific type|Source|Amount|Unexpired balance||
|||||recovered|
|Bank financing product|Own funds|5,000|0|0|
|Brokerage financing product|Own funds|20,000|0|0|
|Total||25,000|0|0|

 Specific circumstances of high-risk entrusted financial management with significant or low security, poor liquidity and no capital guarantee for a single item
□ Applicable√Not applicable
Entrusted financial management which is expected to be unable to recover the principal or other circumstances that may result in impairment
□ Applicable√Not applicable
VII. Derivatives investment
□ Applicable√Not applicable
The Company had no derivatives investment in the report period.
VIII. Reception of research, communication and interview in the report period
□ Applicable√Not applicable
The Company had no reception of research, communication or interview in the report period.
IX. Illegal external guarantee
□ Applicable√Not applicable
The Company had no illegal external guarantee in the report period.
X. Particulars about non-operating fund of listed company which is occupied by controlling shareholder and its affiliated enterprises
□ Applicable√Not applicable
In the report period, it did not exist that non-operating fund of listed company was occupied by controlling shareholder or its
affiliated enterprises.
CSG HOLDING CO., LTD. The Third Quarter Report 2018 Section IV. Financial Report
(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by CSG Holding Co., Ltd.
September 30, 2018
Unit: RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|3,013,212,893.00|2,462,605,764.00|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable and accounts receivable|1,395,477,632.00|1,190,470,710.00|
|Including: Notes receivable|597,349,654.00|552,232,420.00|
|Accounts receivable|798,127,978.00|638,238,290.00|
|Prepayments|102,298,392.00|143,848,023.00|
|Premium receivable|||
|Accounts receivable reinsurance|||
|Receivable contract reserve|||
|Other receivables|207,938,069.00|205,939,019.00|
|Buy back resale financial assets|||
|Inventories|613,927,485.00|685,895,317.00|
|Holding assets for sale|45,983,520.00|45,983,520.00|
|Non-current assets due within one year|||
|Other current assets|121,620,340.00|200,847,989.00|
|Total current assets|5,500,458,331.00|4,935,590,342.00|
|Non-current assets:|||
|Loans and advances|||
|Available for sale financial assets|||
|Held to maturity investments|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Long-term receivables|||
|Long-term equity investment|||
|Investment real estate|||
|Fixed assets|10,590,180,745.00|11,540,769,697.00|
|Construction in progress|2,024,910,115.00|1,417,624,618.00|
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|1,039,018,260.00|1,047,222,407.00|
|Development expenditure|76,894,900.00|61,365,537.00|
|Goodwill|397,392,156.00|397,392,156.00|
|Long-term prepaid expenses|13,171,381.00|2,223,397.00|
|Deferred tax assets|119,434,919.00|80,872,862.00|
|Other non-current assets|85,471,681.00|51,941,352.00|
|Total non-current assets|14,346,474,157.00|14,599,412,026.00|
|Total assets|19,846,932,488.00|19,535,002,368.00|
|Current liabilities:|||
|Short-term loan|3,484,502,199.00|3,704,630,909.00|
|Borrowing from the central bank|||
|Deposits and interbank deposits|||
|Loans from other banks|||
|Financial liabilities measured at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable and accounts payable|1,311,010,816.00|1,613,567,664.00|
|Advance payment|216,748,063.00|195,563,465.00|
|Selling repurchased financial assets|||
|Fees and commissions|||
|Payroll payable|195,672,839.00|272,170,660.00|
|Taxes payable|113,460,360.00|111,996,764.00|
|Other payables|676,738,481.00|653,357,094.00|
|Accounts payable reinsurance|||
|Insurance contract reserve|||
|Agent trading securities|||
|Agency underwriting securities|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Holding liabilities for sale|||
|Non-current liabilities due within one year|948,770,496.00|904,261,397.00|
|Other current liabilities|300,000.00|300,000.00|
|Total current liabilities|6,947,203,254.00|7,455,847,953.00|
|Non-current liabilities:|||
|Long term borrowing|2,349,500,000.00|1,554,120,000.00|
|Bonds payable|||
|Including: Preferred stock|||
|Perpetual bonds|||
|Long-term payables|683,574,458.00|1,161,794,247.00|
|Long-term payroll pay|||
|Estimated liabilities|||
|Deferred income|546,036,956.00|562,701,103.00|
|Deferred income tax liabilities|24,036,532.00|20,915,954.00|
|Other non-current liabilities|||
|Total non-current liabilities|3,603,147,946.00|3,299,531,304.00|
|Total Liabilities|10,550,351,200.00|10,755,379,257.00|
|Owners' equity:|||
|Share capital|2,863,277,201.00|2,484,147,547.00|
|Other equity instruments|||
|Including: Preferred stock|||
|Perpetual bonds|||
|Capital reserve|1,094,514,512.00|1,306,381,765.00|
|Less: Treasury shares|436,427,756.00|417,349,879.00|
|Other comprehensive income|5,104,057.00|1,948,943.00|
|Special reserves|4,508,765.00|3,224,938.00|
|Surplus reserve|920,592,332.00|920,592,332.00|
|General risk preparation|||
|Undistributed profit|4,504,695,495.00|4,159,642,227.00|
|Total owner's equity attributable to the parent|||
||8,956,264,606.00|8,458,587,873.00|
|company|||
|Minority shareholders' equity|340,316,682.00|321,035,238.00|
|Total owner's equity|9,296,581,288.00|8,779,623,111.00|
|Total Liabilities and Owner's Equity|19,846,932,488.00|19,535,002,368.00|

CSG HOLDING CO., LTD. The Third Quarter Report 2018 Legal representative: Chen Lin Principal in charge of accounting: Wang Jian Head of accounting department: Wang Wenxin 2. Balance Sheet of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|2,267,895,375.00|1,681,877,320.00|
|Financial assets measured at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable and accounts receivable|||
|Including: Notes receivable|||
|Accounts receivable|||
|Prepayments|750,005.00|146,132.00|
|Other receivables|2,797,681,917.00|2,400,334,816.00|
|Inventories|||
|Holding assets for sale|||
|Non-current assets due within one year|||
|Other current assets|||
|Total current assets|5,066,327,297.00|4,082,358,268.00|
|Non-current assets:|||
|Available for sale financial assets|||
|Held to maturity investments|||
|Long-term receivables|1,248,954,319.00|1,200,000,000.00|
|Long-term equity investment|4,937,807,541.00|4,795,987,652.00|
|Investment real estate|||
|Fixed assets|19,626,339.00|22,182,246.00|
|Construction in progress|2,261,607.00||
|Productive biological assets|||
|Oil and gas assets|||
|Intangible assets|1,171,938.00|1,742,109.00|
|Development expenditure|||
|Goodwill|||
|Long-term prepaid expenses|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Deferred tax assets|||
|Other non-current assets|732,038.00|2,132,041.00|
|Total non-current assets|6,210,553,782.00|6,022,044,048.00|
|Total assets|11,276,881,079.00|10,104,402,316.00|
|Current liabilities:|||
|Short-term loan|2,567,500,000.00|2,600,000,000.00|
|Financial liabilities measured at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable and accounts payable|261,024.00|261,024.00|
|Advance payment|||
|Payroll payable|23,933,210.00|40,856,313.00|
|Taxes payable|1,407,814.00|1,762,580.00|
|Other payables|1,227,290,586.00|912,523,726.00|
|Holding liabilities for sale|||
|Non-current liabilities due within one year|180,000,000.00|180,000,000.00|
|Other current liabilities|||
|Total current liabilities|4,000,392,634.00|3,735,403,643.00|
|Non-current liabilities:|||
|Long term borrowing|2,000,000,000.00|1,200,000,000.00|
|Bonds payable|||
|Including: Preferred stock|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll pay|||
|Estimated liabilities|||
|Deferred income|185,113,460.00|186,526,280.00|
|Deferred income tax liabilities|||
|Other non-current liabilities|||
|Total non-current liabilities|2,185,113,460.00|1,386,526,280.00|
|Total Liabilities|6,185,506,094.00|5,121,929,923.00|
|Owners' equity:|||
|Share capital|2,863,277,201.00|2,484,147,547.00|
|Other equity instruments|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Including: Preferred stock|||
|Perpetual bonds|||
|Capital reserve|1,239,341,826.00|1,451,209,079.00|
|Less: Treasury shares|436,427,756.00|417,349,879.00|
|Other comprehensive income|||
|Special reserves|||
|Surplus reserve|935,137,692.00|935,137,692.00|
|Undistributed profit|490,046,022.00|529,327,954.00|
|Total owner's equity|5,091,374,985.00|4,982,472,393.00|
|Total Liabilities and Owner's Equity|11,276,881,079.00|10,104,402,316.00|

 3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Total operating income|2,680,693,459.00|2,846,570,536.00|
|Including: operating income|2,680,693,459.00|2,846,570,536.00|
|Interest income|||
|Earned premium|||
|Fee and commission income|||
|II. Total operating costs|2,563,636,781.00|2,513,603,071.00|
|Including: Operating costs|2,092,944,976.00|2,091,578,265.00|
|Interest expense|||
|Fee and commission expenses|||
|Withdrawal|||
|Net loss of expenditure|||
|Withdrawal of insurance contract reserve net|||
|dividend payment policy|||
|Reinsurance costs|||
|Taxes and surcharges|35,812,891.00|31,903,226.00|
|sales expense|90,526,141.00|87,244,775.00|
|Management costs|168,654,876.00|115,556,825.00|
|R&D expenses|86,247,328.00|94,462,168.00|
|Financial expenses|87,558,710.00|90,994,862.00|
|Including: interest expense|109,819,290.00|86,770,411.00|

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Interest income|23,542,159.00|2,340,671.00|
|Asset impairment loss|1,891,859.00|1,862,950.00|
|Plus: other income|32,285,163.00|785,044.00|
|Investment income (“-“ for loss)||427,638.00|
|Including: investment income from joint|||
|ventures and joint ventures|||
|Gains from changes in fair value (“-“ for loss)|||
|Exchange gains (“-“ for loss)|||
|Asset disposal income (“-“ for loss)|112,525.00|315,712.00|
|III. Operating profit (“-“ for loss)|149,454,366.00|334,495,859.00|
|Plus: non-operating income|5,625,593.00|47,706,626.00|
|Less: non-operating expenses|614,072.00|1,135,015.00|
|IV. Gross profit (“-“ for loss)|154,465,887.00|381,067,470.00|
|Less: Income tax expenses|27,650,222.00|59,459,173.00|
|V. Net profit (“-“ for net loss)|126,815,665.00|321,608,297.00|
|(I) Net profit from continuing operations (“-“ for|||
||126,815,665.00|321,608,297.00|
|net loss)|||
|(II) Termination of operating net profit (“-“ for|||
|net loss)|||
|Net profit attributable to the owners of parent|||
||116,279,185.00|318,019,208.00|
|company|||
|Minor shareholders’ equity|10,536,480.00|3,589,089.00|
|VI. Net amount of other gains after tax|2,463,096.00|-870,658.00|
|Net amount of other gains after tax attributable to|||
||2,463,096.00|-870,658.00|
|owners of parent company|||
|(I) Other comprehensive income that will not|||
|be reclassified into gains/losses|||
|1. Re-measure the change in the defined|||
|benefit plan|||
|2. Other comprehensive income that|||
|cannot be transferred to profit or loss under the equity|||
|method|||
|(II) Other comprehensive income that will be|||
||2,463,096.00|-870,658.00|
|reclassified into profit or loss|||
|1. Other comprehensive income of|||
|convertible profits and losses under the equity method|||
|2. Gains and losses from changes in fair|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|value of available-for-sale financial assets|||
|3. Held-to-maturity investments are|||
|reclassified as gains and losses on available-for-sale|||
|financial assets|||
|4. Effective portion of cash flow hedge|||
|gains and losses|||
|5. Foreign currency financial statement|||
||2,463,096.00|-870,658.00|
|translation difference|||
|6. Other|||
|Net after-tax net of other comprehensive income|||
|attributable to minority shareholders|||
|VII. Total of misc. incomes|129,278,761.00|320,737,639.00|
|Total of misc. incomes attributable to the owners|||
||118,742,281.00|317,148,550.00|
|of the parent company|||
|Total misc gains attributable to the minor|||
||10,536,480.00|3,589,089.00|
|shareholders|||
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.04|0.12|
|(II) Diluted earnings per share|0.04|0.12|

 Legal representative: Chen Lin Principal in charge of accounting: Wang Jian Head of accounting department: Wang Wenxin 4. Income Statement of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Operating income|14,147,677.00|15,038,839.00|
|Less: Operating costs|0.00|0.00|
|Taxes and surcharges|144,784.00|131,076.00|
|sales expense|||
|Management costs|39,974,380.00|21,688,231.00|
|R&D expenses|944,937.00|944,938.00|
|Financial expenses|23,855,339.00|20,017,263.00|
|Including: interest expense|45,996,709.00|22,923,308.00|
|Interest income|21,853,898.00|1,982,408.00|
|Asset impairment loss|54,340.00|78,215.00|
|Plus: other income|470,940.00||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Investment income (“-“ for loss)||2,011,500.00|
|Including: investment income from joint ventures and|||
|joint ventures|||
|Gains from changes in fair value (“-“ for loss)|||
|Asset disposal income (“-“ for loss)|||
|II. Operating profit (“-“ for loss)|-50,355,163.00|-25,809,384.00|
|Plus: non-operating income|10,556.00|402,190.00|
|Less: non-operating expenses|242,988.00|816,000.00|
|III. Gross profit (“-“ for loss)|-50,587,595.00|-26,223,194.00|
|Less: Income tax expenses|599,358.00||
|IV.Net profit (“-“ for net loss)|-51,186,953.00|-26,223,194.00|
|(I) Net profit from continuing operations (“-“ for|||
||-51,186,953.00|-26,223,194.00|
|net loss)|||
|(II) Termination of operating net profit (“-“ for|||
|net loss)|||
|V. Net amount of other gains after tax|||
|(I) Other comprehensive income that will not|||
|be reclassified into gains/losses|||
|1. Re-measure the change in the defined|||
|benefit plan|||
|2. Other comprehensive income that|||
|cannot be transferred to profit or loss under the equity|||
|method|||
|(II) Other comprehensive income that will be|||
|reclassified into profit or loss|||
|1. Other comprehensive income of|||
|convertible profits and losses under the equity method|||
|2. Gains and losses from changes in fair|||
|value of available-for-sale financial assets|||
|3. Held-to-maturity investments are|||
|reclassified as gains and losses on available-for-sale|||
|financial assets|||
|4. Effective portion of cash flow hedge|||
|gains and losses|||
|5. Foreign currency financial statement|||
|translation difference|||
|6. Other|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|VI. Total of misc. incomes|-51,186,953.00|-26,223,194.00|
|VII. Earnings per share:|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated income statement for Jan.-Sept. 2018
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Total revenue|8,151,251,436.00|7,790,271,330.00|
|Including: Business income|8,151,251,436.00|7,790,271,330.00|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|7,637,366,372.00|7,016,245,101.00|
|Including: Business cost|6,192,441,730.00|5,829,092,727.00|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy reserves provided|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Tax and surcharges|107,743,437.00|93,649,001.00|
|Sales expense|262,743,395.00|243,589,506.00|
|Administrative expense|523,550,697.00|347,183,080.00|
|R&D expenses|271,905,509.00|265,390,253.00|
|Financial expenses|273,436,136.00|234,368,889.00|
|Including: Interest expense|313,350,797.00|229,964,998.00|
|Interest income|46,575,577.00|6,527,384.00|
|Asset impairment loss|5,545,468.00|2,971,645.00|
|Plus: other income|54,760,584.00|25,096,345.00|
|Investment income(“-“ for loss)||427,638.00|
|Including: Investment income in associates|||
|and joint ventures|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Fair value change income(“-“ for loss)|||
|Exchange gains (“-“ for loss)|||
|Asset disposal income (“-“ for loss)|-455,305.00|243,956.00|
|III. Operating profit (“-“ for loss)|568,190,343.00|799,794,168.00|
|Plus: non-operating income|8,221,388.00|63,678,488.00|
|Less: non-operating expenses|1,492,623.00|1,738,117.00|
|IV. Gross profit (“-“ for loss)|574,919,108.00|861,734,539.00|
|Less: Income tax expenses|89,021,326.00|139,912,194.00|
|V. Net profit (“-“ for net loss)|485,897,782.00|721,822,345.00|
|(I) Net profit from continuing operations (“-“ for|||
||485,897,782.00|721,822,345.00|
|net loss)|||
|(II) Termination of operating net profit (“-“ for|||
|net loss)|||
|Net profit attributable to the owners of parent|||
||469,116,338.00|711,011,371.00|
|company|||
|Minor shareholders’ equity|16,781,444.00|10,810,974.00|
|VI. Net amount of other comprehensive income after|||
||3,155,114.00|-1,946,922.00|
|tax|||
|Net amount of other gains after tax attributable to|||
||3,155,114.00|-1,946,922.00|
|owners of parent company|||
|(I) Other comprehensive income that will not|||
|be reclassified into gains/losses|||
|1. Re-measure the change in the defined|||
|benefit plan|||
|2. Other comprehensive income that|||
|cannot be transferred to profit or loss under the equity|||
|method|||
|(II) Other comprehensive income that will be|||
||3,155,114.00|-1,946,922.00|
|reclassified into profit or loss|||
|1. Other comprehensive income of|||
|convertible profits and losses under the equity method|||
|2. Gains and losses from changes in fair|||
|value of available-for-sale financial assets|||
|3. Held-to-maturity investments are|||
|reclassified as gains and losses on available-for-sale|||
|financial assets|||
|4. Effective portion of cash flow hedge|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|gains and losses|||
|5. Foreign currency financial statement|||
||3,155,114.00|-1,946,922.00|
|translation difference|||
|6. Other|||
|Net after-tax net of other comprehensive income|||
|attributable to minority shareholders|||
|VII. Total of comprehensive income|489,052,896.00|719,875,423.00|
|Total of misc. incomes attributable to the owners|||
||472,271,452.00|709,064,449.00|
|of the parent company|||
|Total misc gains attributable to the minor|||
||16,781,444.00|10,810,974.00|
|shareholders|||
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.17|0.26|
|(II) Diluted earnings per share|0.16|0.26|

 6. Income statement of the Parent Company for Jan.-Sept. 2018
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Total revenue|44,248,959.00|41,704,845.00|
|Including: Business income|0.00|0.00|
|Tax and surcharges|391,249.00|5,268,020.00|
|Sales expense|||
|Administrative expense|135,342,752.00|90,338,580.00|
|R&D expenses|2,839,736.00|2,834,813.00|
|Financial expenses|53,787,897.00|39,817,558.00|
|Including: Interest expense|94,678,140.00|45,104,805.00|
|Interest income|43,313,805.00|5,511,104.00|
|Asset impairment loss|8,222.00|85,921.00|
|Plus: other income|2,070,606.00|647,260.00|
|Investment income(“-“ for loss)|231,537,606.00|2,011,500.00|
|Including: Investment income in associates|||
|and joint ventures|||
|Fair value change income(“-“ for loss)|||
|Asset disposal income (“-“ for loss)|2,440.00||
|III. Operating profit (“-“ for loss)|85,489,755.00|-93,981,287.00|

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Plus: non-operating income|134,006.00|1,196,570.00|
|Less: non-operating expenses|243,265.00|816,000.00|
|IV. Gross profit (“-“ for loss)|85,380,496.00|-93,600,717.00|
|Less: Income tax expenses|599,358.00||
|V. Net profit (“-“ for net loss)|84,781,138.00|-93,600,717.00|
|(I) Net profit from continuing operations (“-“ for|||
||84,781,138.00|-93,600,717.00|
|net loss)|||
|(II) Termination of operating net profit (“-“ for|||
|net loss)|||
|VI. Net amount of other comprehensive income after|||
|tax|||
|(I) Other comprehensive income that will not|||
|be reclassified into gains/losses|||
|1. Re-measure the change in the defined|||
|benefit plan|||
|2. Other comprehensive income that|||
|cannot be transferred to profit or loss under the equity|||
|method|||
|(II) Other comprehensive income that will be|||
|reclassified into profit or loss|||
|1. Other comprehensive income of|||
|convertible profits and losses under the equity method|||
|2. Gains and losses from changes in fair|||
|value of available-for-sale financial assets|||
|3. Held-to-maturity investments are|||
|reclassified as gains and losses on available-for-sale|||
|financial assets|||
|4. Effective portion of cash flow hedge|||
|gains and losses|||
|5. Foreign currency financial statement|||
|translation difference|||
|6. Other|||
|VII. Total of comprehensive income|84,781,138.00|-93,600,717.00|
|VIII. Earnings per share:|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018 7. Consolidated Cash Flow Statement for Jan.-Sept. 2018
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
||8,874,070,807.00|8,716,345,821.00|
|services|||
|Net increase of customer deposits and capital kept for|||
|brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial|||
|bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of disposal of the financial assets|||
|measured by fair value with the changes included in|||
|the current gains and losses|||
|Cash received as interest, processing fee, and|||
|commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|81,506,819.00|13,944,024.00|
|Other cash received from business operation|114,952,740.00|118,888,381.00|
|Sub-total of cash inflow from business activities|9,070,530,366.00|8,849,178,226.00|
|Cash paid for purchasing of merchandise and services|5,549,504,979.00|5,170,500,238.00|
|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|1,020,862,956.00|903,582,623.00|
|Taxes paid|605,975,057.00|560,097,169.00|
|Other cash paid for business activities|483,361,352.00|412,345,504.00|
|Sub-total of cash outflow from business activities|7,659,704,344.00|7,046,525,534.00|

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Net cash flow generated by business operation|1,410,826,022.00|1,802,652,692.00|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit|||
|Net cash retrieved from disposal of fixed assets,|||
||3,689,092.00|1,524,109.00|
|intangible assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or|||
|other operational units|||
|Other investment-related cash received|24,683,677.00|11,239,594.00|
|Sub-total of cash inflow due to investment activities|28,372,769.00|12,763,703.00|
|Cash paid for construction of fixed assets, intangible|||
||462,402,032.00|1,059,799,002.00|
|assets and other long-term assets|||
|Cash paid as investment|||
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other|||
|operational units|||
|Other cash paid for investment activities|93,641,334.00|36,752,523.00|
|Sub-total of cash outflow due to investment activities|556,043,366.00|1,096,551,525.00|
|Net cash flow generated by investment|-527,670,597.00|-1,083,787,822.00|
|III. Cash flow generated by financing|||
|Cash received as investment|9,826,580.00||
|Incl. Cash received as investment from minor|||
|shareholders|||
|Cash received as loans|3,871,266,495.00|3,013,919,750.00|
|Cash received from bond placing|||
|Other financing-related cash received|46,330,808.00|3,179,276,494.00|
|Subtotal of cash inflow from financing activities|3,927,423,883.00|6,193,196,244.00|
|Cash to repay debts|3,255,750,000.00|3,824,757,768.00|
|Cash paid as dividend, profit, or interests|438,702,824.00|468,236,090.00|
|Incl. Dividend and profit paid by subsidiaries to|||
|minor shareholders|||
|Other cash paid for financing activities|568,114,332.00|1,390,858,313.00|
|Subtotal of cash outflow due to financing activities|4,262,567,156.00|5,683,852,171.00|
|Net cash flow generated by financing|-335,143,273.00|509,344,073.00|
|IV. Influence of exchange rate alternation on cash and|||
||2,487,631.00|-1,130,269.00|
|cash equivalents|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|V. Net increase of cash and cash equivalents|550,499,783.00|1,227,078,674.00|
|Plus: Balance of cash and cash equivalents at the|||
||2,459,753,165.00|584,566,990.00|
|beginning of term|||
|VI. Balance of cash and cash equivalents at the end of|||
||3,010,252,948.00|1,811,645,664.00|
|term|||

8. Cash Flow Statement of the Parent Company for Jan.-Sept. 2018
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
|services|||
|Tax returned|||
|Other cash received from business operation|45,225,208.00|12,093,227.00|
|Sub-total of cash inflow from business activities|45,225,208.00|12,093,227.00|
|Cash paid for purchasing of merchandise and services|||
|Cash paid to staffs or paid for staffs|80,647,604.00|46,944,641.00|
|Taxes paid|2,520,750.00|6,646,035.00|
|Other cash paid for business activities|25,910,236.00|21,006,751.00|
|Sub-total of cash outflow from business activities|109,078,590.00|74,597,427.00|
|Net cash flow generated by business operation|-63,853,382.00|-62,504,200.00|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit||2,011,500.00|
|Net cash retrieved from disposal of fixed assets,|||
||2,440.00|1,808.00|
|intangible assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or|||
|other operational units|||
|Other investment-related cash received||954,000.00|
|Sub-total of cash inflow due to investment activities|2,440.00|2,967,308.00|
|Cash paid for construction of fixed assets, intangible|||
||5,604,540.00|1,680,804.00|
|assets and other long-term assets|||
|Cash paid as investment|46,750,000.00||
|Net cash received from subsidiaries and other|||
|operational units|||

CSG HOLDING CO., LTD. The Third Quarter Report 2018
||||
|-|-|-|
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|52,354,540.00|1,680,804.00|
|Net cash flow generated by investment|-52,352,100.00|1,286,504.00|
|III. Cash flow generated by financing|||
|Cash received as investment|9,826,580.00||
|Cash received as loans|2,917,500,000.00|2,100,693,638.00|
|Cash received from bond placing|||
|Other financing-related cash received|124,357,949.00|2,411,868,907.00|
|Subtotal of cash inflow from financing activities|3,051,684,529.00|4,512,562,545.00|
|Cash to repay debts|2,150,000,000.00|3,396,723,365.00|
|Cash paid as dividend, profit, or interests|199,721,074.00|209,502,162.00|
|Other cash paid for financing activities|||
|Subtotal of cash outflow due to financing activities|2,349,721,074.00|3,606,225,527.00|
|Net cash flow generated by financing|701,963,455.00|906,337,018.00|
|IV. Influence of exchange rate alternation on cash and|||
||-1,245,875.00|681,240.00|
|cash equivalents|||
|V. Net increase of cash and cash equivalents|584,512,098.00|845,800,562.00|
|Plus: Balance of cash and cash equivalents at the|||
||1,680,672,390.00|301,637,933.00|
|beginning of term|||
|VI. Balance of cash and cash equivalents at the end of|||
||2,265,184,488.00|1,147,438,495.00|
|term|||

II.Auditor’s Report
Whether the third quarter report has been audited or not
□Yes √No
The third quarter report of the Company has not been audited.
Board of Directors of
CSG Holding Co., Ltd.
30 October 2018