CSG HOLDING CO., LTD.
SEMI-ANNUAL REPORT 2017 Chairman of the Board:
CHEN LIN
August 2017
CSG Semi-annual Report 2017 Section I Important Notice, Content 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 facticity, accuracy and completeness of the whole contents.
Ms. Chen Lin, Chairman of the Board, Mr. Pan Yonghong, 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 semi-annual report of the Company is true, accurate and complete.
All directors were present the meeting of the Board for deliberating the semi-annual report of the Company in person.
This report involves futures plans and some other forward-looking statements, which shall not be considered as virtual promises to investors. Investors are kindly reminded to pay attention to possible risks.
Existing risk of staff loss, industry risk, market risk and exchange rate risk have been well-described in this report, please found details of the risk factors and countermeasures of future development described in Section IV Discussion and Analysis of the Management.
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital.
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 Semi-annual Report 2017 Content
Section I. Important Notice, Content and Paraphrase ...................................................................................... 1 Section II. Company Profile& Financial Highlights ......................................................................................... 4 Section III. Overview of theCompany’s Business ............................................................................................. 7 Section IV. Performance Discussion and Analysis ......................................................................................... 10 Section V. Important Events .............................................................................................................................. 23 Section VI. Changes in Shares and Particulars about Shareholders.............................................................. 33 Section VII. Particulars about Directors, Supervisors and Senior Executives .............................................. 39 Section VIII. Corporate Bonds .......................................................................................................................... 41 Section IX. Financial Report ............................................................................................................................. 46 Section X. Documents Available for Reference .............................................................................................. 138
CSG Semi-annual Report 2017 Paraphrase
||||
|-|-|-|
|Items|Refers to|Contents|
|Company, the Company, CSG 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 Semi-annual Report 2017 Section II. Company Profile& Financial Highlights
I. Company Profile
|||||
|-|-|-|-|
|Short form of the stock|Southern Glass A、Southern Glass B|Stock code|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|Chen Lin|||

II. Person/Way to contact
|||
|-|-|
||Secretary of the Board|
|Name|Yang Xinyu|
||CSG Building, No.1 of the 6th Industrial|
|Contact address||
||Road, Shekou, Shenzhen, P. R.C.|
|Tel.|(86)755-26860666|
|Fax.|(86)755-26860685|
|E-mail|securities@csgholding.com|

III. Other information
1. Way of contact
Whether registered address, office address and their postal codes, website address and email address of the Company changed in the report period or not
□ Applicable√Not applicable
The registered address, office address and their postal codes, website address and email address of the Company did not change in the report period. More details can be found in Annual Report 2016.
2. Information disclosure and preparation place
Whether information disclosure and preparation place changed in the report period or not
√ Applicable□ Not applicable
|||
|-|-|
||Securities Times, China Securities Journal, ShangHai Securities News and Hong Kong|
|Newspapers for information disclosure||
||Comercial Daily|
|Website assigned by CSRC to release the|www.cninfo.com.cn|

CSG Semi-annual Report 2017
|||
|-|-|
|semi-annual report||
|The place for preparation of the||
||Office of Board of Directors|
|semi-annual report||
|The query date of the designated website for||
|the disclosure of interim announcements (if||
|applicable)||
|The query index of the designated website||
|for the disclosure of interim announcements||
|(if applicable)||

The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi-annual report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report 2016.
IV. 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 year-on-year|
||(Jan. to Jun.2017)|of last year|(%)|
|Operating income (RMB)|4,944,337,861|4,228,165,642|16.94%|
|Net profit attributable to shareholders of the listed|392,992,163|466,883,254||
||||-15.83%|
|company(RMB)||||
|Net profit attributable to shareholders of the listed company||||
||360,945,244|423,523,383|-14.78%|
|after deducting non-recurring gains and losses(RMB)||||
|Net cash flow arising from operating activities(RMB)|1,019,889,454|1,046,720,349|-2.56%|
|Basic earnings per share (RMB/Share)|0.19|0.22|-13.64%|
|Diluted earnings per share (RMB/Share)|0.19|0.22|-13.64%|
||||Decreased by1.05 percentage|
|Weighted average ROE (%)|4.94%|5.99%||
||||points|
||||Increase/decrease in this|
||End of this period|End of last year|period-end over that of last|
||||year-end (%)|
|Total assets (RMB)|17,930,281,613|16,979,235,630|5.60%|
|Net assets attributable to shareholder of listed company|8,083,359,314|7,812,335,004||
||||3.47%|
|(RMB)||||

CSG Semi-annual Report 2017 V. Difference of accounting data under domestic and overseas accounting standards
1. Differences of the net profit and net assets disclosed in financial report prepared under international and Chinese accounting standards
□ Applicable√ Not applicable
No such differences in the report period.
2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chinese accounting standards
□ Applicable√ Not applicable
No such differences in the report period.
VI. 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|-71,756|--|
|write-off that accrued for impairment of assets)|||
|Governmental subsidy reckoned into current gains/losses (not|38,501,199|--|
|including the subsidy enjoyed in quota or ration according to|||
|national standards, which are closely relevant to enterprise’s|||
|business)|||
|Other non-operating income and expenditure except for the|541,795|--|
|aforementioned items|||
|Less: Impact on income tax|5,814,362|--|
|Impact on minority shareholders’ equity (post-tax)|1,109,957|--|
|Total|32,046,919|--|

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 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.
CSG Semi-annual Report 2017 Section III Overview of theCompany’s Business
I. Main business of the Company in the report period
Whether the Company needs to comply with the disclosure requirements of the particular industry
No
CSG is the No.1 brand of energy-saving glass at home and a renowned brand of solar PV products and display devices. Its products and technologies are very popular at home and abroad. Its main business coversR&D, manufacturing and sales of high quality float glass and architectural glass, solar glass, silicon material, renewable energy products such as PV battery and modules, and new materials and information display products such as ultra-thin electronic glass and display devices. It also provides one-stop services such as project development, construction, operation and maintenance of solar photovoltaic power plants.
Flat glass industry
CSG now has 10 float glass production lines representing the most advanced technology in domestic market and 2 solar rolled glass production lines. The annual capacity of various high-grade float glass has reached approximately 2.4 million tons and the annual capacity of solar rolled glass has reached approximately 0.5 million tons. The Company owns quartz sand raw material bases in Jiangyou, Sichuan Province and Yingde, Guangdong Province. The production bases for flat glass, solar glass and ultra-thin glass of the Company located in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and Yichang, which can produce various colors of high-grade float glass with thickness from 1.1mm to 25mm and ultra-clear float glass. Those products are widely used in high-grade buildings, decoration and furniture, mirror, automotive windshield, scanner, copier, PDP TV, rear-projection television, display devices and solar energy field, each performance indicator of which has reached domestic advanced level.
The Company always adheres to innovation, transformation and upgrading, and further enhances the profitability of flat glass industry by the implementation of differentiated competitive strategy. In 2016, the second-line technological transformation project of the subsidiary Hebei CSG was successfully completed. The original float glass production line was transformed into a structure with one melter and two production lines, which can simultaneously produce two types of float glass to satisfy different specifications and requirements and thus significantly improve the flexibility of production line. The first-line technological transformation product of its subsidiary Chengdu CSG has been formally started, which is targeted to produce high quality auto glass. It has put into operation in Feb. 2017. The technology transformation and operation of such two production lines of float gloss shall further improve the competency of CSG in the market of flat glass.
Architectural glass industry
As the nation's largest supplier of high-grade engineering and architectural glass, CSG has five architectural and energy-saving glass processing centers which are located in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. The Company possesses the world's most advanced glass deep-processing equipment and testing instruments, and its products cover all kinds of architectural glass.R&D and use of coating technology of the Company keep pace with the world and its technology of high end product is even of theworld’s leading level. Following the second generation of energy-saving glass products, the Company has successively developed the third generation and multi-function energy-saving glass products with continuous improving energy-saving and heat-preservation effect. Its high-quality energy-saving LOW-E insulating glass has occupied more than40% of the domestic high-end market. At present, the Company has 14 coated glass production lines, with an annual output of 30 million square meters of Low-E, thermal reflective coated glass; 46 insulating glass production line, with an annual output of 10 million square meters of insulating glass; 39 glass production line, with an annual output of 25 million square meters of toughtened glass.
TheCompany’s quality management system for engineering and architectural glass has been respectively approved by organizations
CSG Semi-annual Report 2017 of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enables CSG frequently win in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been continuously participating in the formulation and compilation of various national standards and industry standards. Various high-quality architectural glass of the Company has been used in many landmark buildings at home and abroad, such as Beijing Capital International Airport, CCTV, Shanghai Oriental Fisherman's Wharf, Shenzhen KingKey100 Building, Ping An International Finance Centre, Hangzhou International Airport, Chengdu International Finance Centre, Hong Kong Four Seasons Hotel, Hilton Hotel at Melbourne Airport, Tokyo Tallest Building, International Centre of Abu Dhabi.
Solar Energy PV Business
With its stable quality management, strong cost control and outstanding technological innovations, CSG has built a complete industry chain covering high purity polycrystalline silicon materials, silicon wafer, silicon solar cell and modules, and design and construction of solar photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products to customers.
The Company now produces 8,000 ton/year of polycrystalline silicon, 1.5 GW/year of silicon wafer, 0.75GW/year of solar cell, and 0.15GW/year of modules. Under the favorable domestic market outlook of solar PV products, the Company is further exploiting its potential, and upgrading and reconstructing its existing lines of polycrystalline silicon with the purpose of increasing the total production of polycrystalline silico to above 9,000 ton/year. Meanwhile, the Company is also promoting the newly-added silicon wafer project of Yichang CSG Polysilicon Co. and the PV cell line expansion project in Dongguan in order to enhance the anti-risk capacity of its PV industry chain and drive the balanced, fast and healthy development of its PV industry chain. When the projects are completed, the Company's production of silicon wafers and silicon solar cells will be greatly increased and the general competitiveness of the chain will be further improved.
To perfect its solar energy chain, the Company established Shenzhen CSG PV Energy Co., Ltd., a wholly-owned subsidiary, in 2015, of which the mainline business is to invest and develop solar photovoltaic power plants and extend CSG's solar energy industry to cover highly value-added terminal applications. At the end of 2016, the Company newly established New Energy Application Department to generally manage the investment, operation and maintenance of the Company's PV power plants and effectively integrate internal assets, so as to enlarge and strengthen its solar energy business.
Electronic glass and display business
The Company has built two complete chains of full-set out-cell touch panel from raw material, processing to touch panel integration module with its more than ten years of experience since 2000 when it established Shenzhen Nanbo Display Technology Co., Ltd. One is "ultra-thin glass bed penal preparation→ glass coating→ glass yellow light→ glass modules", and the other is "PET coating→ film yellow light→ film module. Its production capacity covers ultra-thin float glass preparation, glass coating, glass pattern processing, glass touch panel module, flexible material filming, flexible material pattern processing, and full lamination of flexible touch panel display, making it the only one company that holds a complete industry chain from ultra-thin float glass production to ultra-thin sensor processing and ultra-thin touch panel module assembly to achieve high definition display and ultra-narrow edge touch panel solutions. In 2016, the Company acquired16.10% of the equity of Shenzhen Nanbo Display Technology Co., Ltd. and re-control of it.
Furthermore, the Company, with its more than 20 years of experience in float glass production and powerful technology and innovation team, entered the ultra-thin electronic glass market in 2010 and finished its strategic deployment across the country with three electronic glass bases in Langfang, Hebei Province in North China, Yichang, Hubei Province in Central China, and Qingyuan, Guangdong Province in South China. The products can be as thin as 0.2mm-1.1mm, covering a range from normal soda-lime glass to medium-aluminum, ultra-clear, ultra-thin, and high-aluminum glass, which are widely used in tempered glass films, cover glass, and ITO conductive glass.
The Company further integrated its ultra-thin electronic glass business with display business and established the electronic glass and display department in 2016, which incorporated the subsidiaries of ultra-thin electronic glass and display, and actively boosted the
CSG Semi-annual Report 2017 development and production of its middle and high-end products as well as new products according to market conditions.
II. Major changes in main assets
1. Details of major changes in main assets
|||
|-|-|
|Main assets|Note of major changes|
|Equity assets|There was no significant change in equity assets in the report period.|
|Fixed assets|There was no significant change in fixed assets in the report period.|
|Intangible assets|There was no significant change in intangible assets in the report period.|
|Construction in progress|There was no significant change in construction in progress in the report period.|

2. Main overseas assets
□ Applicable√ Not applicable
III. Core Competitiveness Analysis
Whether the Company needs to comply with the disclosure requirements of the particular industry
No
① The Company currently has built complete industrial chains in the industries it involved, which has complementary advantage. In glass industry, the Company has set up 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 its module, photovoltaic rolled glass, etc. and extended to terminal application of PV power plant.With the improvement of technology in the chains, the industrial advantages emerged.②The Company possesses a complete industry layout. At present, the Company has established large production bases in East China, West China, South China and Central China, which enables the Company to be closer to the market and serve the market better.③The 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 theworld’s advanced level, and its technique and technology in the field of solar energy keep leading position in domestic market.
④The Company possesses high anti-risk capability. It has a perfect internal control system with sound performance. Meanwhile, the management and control ability of account receivable and inventory stand in a high level within the industry.
CSG’s new management team have international and open ideas of operation and management, aim to achieve the transfer of capacity and continue to expand new business fields along with the national policies of the Belt and Roads based on the intensive development of CSG's main business, making the Company be bigger and stronger, so as to be a comprehensive industrial group.
CSG Semi-annual Report 2017 Section IV. Performance Discussion and Analysis
I. Overview
In the first half year of 2017, the global economic situation was turbulent, the recovery of the main economies remained weak, and risk events occurred frequently. The FED increasing interest rates intensified the uncertainty of global economy. Under the background of a slowdown in the global economic growth and increasing uncertainty, along withChina’s economy structure adjustment being further strengthened, industrial enterprises achieved profit growth, the measure of “Removing Excess Capacity” achieved initial success, and the overall economy achieved a steady growth.
In the first half of 2017, CSG faced tremendous internal and external pressure, but under the leadership of the new management, the business units advanced steadily in production and operation, seizing the favorable market opportunities while challenging the adverse market difficulties, and overfulfilled the business tasks of the first half of the year by improving internal efficiency, tapping potentiality and increasing efficiency. In the first half year, the Company realized operating revenue of RMB 4,944 million, with a year-on-year increase of RMB 716 million or16.94%. The net profit was RMB 400 million, with a year-on-year decrease of RMB 65 million or13.99%. And the net profit after deducting non-recurring gains and losses was RMB 361 million, with a year-on-year decrease of RMB 63 million or14.78%. Details of the production and operation of the Company were as follows:
(I) Glass industry
In which, the net profit of float glass was historically high. Affected by the national macro-control and environmental policy, float glass prices stayed at a high level which has continued until the present day from the second half of last year. To take advantage of the opportunity, the Company took measures of improving capacity, strengthening internal management, tapping potential and increasing efficiency, promoting the differentiation of glass products and other measures to ensure the greatest achievement in the favorable market timing.
The price of solar glass declined affected by the photovoltaic industry, which brought specified pressure to the management of the Company. The Company actively developed new products, especially the market layout of thin glass and Double Glazed Glass Panel, to resist the impact of falling prices on profits.
As architectural glass was enduring enormous pressure due to overall real estate investment growth slowing down, the Company adopted various measures to expand sales volume for increasing its operating income. But affected by regulation and control policies of upstream property industry, real estate developers generally implemented cost compression policies, together with the price rise of raw float glass, which resulted in a decrease in profits. The Company took active measures to respond to the matter mentioned above, including improving internal efficiency, tapping potential and increasing efficiency, being proactive in the external market to seize more orders, layout of the housing market as well as promoting new products, to reduce the pressure on rising costs.
(II) Solar energy industry
After offset of consolidation in the first half year of 2017, solar energy industry realized operating revenue of RMB 1,388 million, with a year-on-year increase of9.74%. The net profit was RMB 106 million, with a year-on-year decrease of46.74%.
In the first half of 2016, affected by “Expedited Installation by June 30”, the overall market of PV industry was rising rapidly. After entering the second half year, as expedited installation subsided, the price showed a downward trend. The Company took measures of technological transformation, improving production capacity, improving efficiency, tapping potential and increasing efficiency and other measures to make up for the impact of price decline on its profits.
At the end of 2015, the Group established Shenzhen CSG PV Energy Co., Ltd. to develop PV power station and further improve solar energy industrial chain (silicon material-silicon wafer- solar cell - module -PV power station). The Company is actively promoting PV building integration project, currently focusing on market cultivation and customer development, and has initially
CSG Semi-annual Report 2017 reached a strategic cooperation agreement with some well-known property developers. The development of PV power station business will bring new income and profit growth point, and further improve the competitiveness of the Group in solar energy industry.
(III)Electronic glass and display
After offset of consolidation in the first half year of 2017, electronic glass and display division realized operating revenue of RMB 367 million, with a year-on-year increase of RMB 277 million or307.63%. The net profit was RMB 22.07 million, with a year-on-year increase of RMB 25.47 million.
The Group further defined the product business positioning and technical route. Facing market opportunity, the Group gradually occupied mobile toughened coated glass market through continuous technical improvement and reform and quality improvement. At the same time, along with the commercial operation of Qingyuan high aluminum ultra-thin glass production line and gradual improvement of product quality, the productivity and product line of the Group in the field of electronic glass will be further improved and enriched, and preliminarily set up national strategic layout. At present, the construction of Xianning ultra-high aluminum ultra-thin glass production line is proceeding smoothly. Civil works, craftwork and equipment installation are going according to plan. Up until now, the project has entered the final stage and it will be ignited and enter into trial production within this year.
II. Main business analysis
1. Overview
See the relevant content in Discussion and Analysis of Business Situation, which Summarized in the Overview.
Year-on-year changes of main financial data
Unit: RMB
||||||
|-|-|-|-|-|
|||The corresponding|Increase /decrease||
||The report period|||Reasons of change|
|||period of last year|year-on-year（%）||
||4,944,337,861|4,228,165,642||Mainly due to the increase in|
|||||revenue of glass industry and|
|Operating revenue|||16.94%||
|||||electronic glass and display|
|||||industry|
||3,737,514,462|3,076,818,503||Mainly due to the increase in|
|Operating costs|||21.47%||
|||||revenue|
||156,344,731|128,564,831||Mainly due to the increase in|
|Sales expenses|||21.61%||
|||||transportation costs|
||402,554,340|348,836,395||Mainly due to the increase in|
|Administration expenses|||15.4%||
|||||wages and R&D costs|
||143,374,027|133,353,393||Mainly due to the increase in|
|Financial expenses|||7.51%||
|||||interest income|
|Income tax expenses|80,453,021|77,843,164|3.35%||
|R&D investment|166,809,377|155,478,325|7.29%||
|Net cash flow arising from|1,019,889,454|1,046,720,349||Mainly due to the increase in|
||||-2.56%||
|operating activities||||operating receivables|

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Net cash flow arising from|-739,345,310|-976,174,439||Mainly due to the decrease in cashpaid by the subsidiaries|
||||-24.26%||
|investment activities|||||
||67,852,001|-241,140,524||Mainly due to the decrease in cashpaid by dividends, profits orinterest paid during the reportperiod.|
|Net cash flow arising from|||||
||||——||
|financing activities|||||
||347,483,532|-170,034,722||Mainly due to the decrease in cash|
|Net increase of cash and|||||
||||——|expenditure on investment and|
|cash equivalent|||||
|||||financing activities|

Major changes on profit composition or profit resources in the report period
□Applicable
√Not applicable
There were no major changes on profit composition or profit resources in the report period.
Composition of main business
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|Increase/decrease|Increase/decrease|
||Operating||||||
|||Operating cost|Gross profit ratio|of operating|of operating cost|of gross profit|
||revenue||||||
|||||revenue y-o-y|y-o-y|ratio y-o-y|
|According to industry|||||||
|Glass industry|3,201,388,692|2,377,291,716|25.74%|11.32%|12.09%|-0.52%|
|Solar energy|||||||
||1,372,856,210|1,113,797,825|18.87%|10.20%|24.77%|-9.47%|
|industry|||||||
|Electronic glass|||||||
|& Display|363,905,796|260,233,838|28.49%|325.75%|325.52%|0.04%|
|industry|||||||
|Amount of|||||||
||-23,614,824|-20,408,528|||||
|unutilized|||||||
|According to product|||||||
|Glass industry|3,201,388,692|2,377,291,716|25.74%|11.32%|12.09%|-0.52%|
|Solar energy|||||||
||1,372,856,210|1,113,797,825|18.87%|10.20%|24.77%|-9.47%|
|industry|||||||
|Electronic glass|||||||
|& Display|363,905,796|260,233,838|28.49%|325.75%|325.52%|0.04%|
|industry|||||||
|Amount of|||||||
||-23,614,824|-20,408,528|||||
|unutilized|||||||
|According to region|||||||
|Mainland China|4,423,992,344|3,376,477,509|23.68%|19.63%|24.35%|-2.9%|
|H.K. China|159,110,247|95,369,793|40.06%|241.67%|185.36%|11.83%|

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Europe|10,469,923|9,511,981|9.15%|-69.46%|-66.40%|-8.28%|
|Asia (excluding|||||||
|Mainland China|284,803,871|221,558,467|22.21%|-10.11%|0.12%|-7.95%|
|and H.K.)|||||||
|North America|9,235,672|7,473,911|19.08%|-85.57%|-80.29%|-21.69%|
|Australia|23,668,506|17,972,740|24.06%|21.02%|43.75%|-12.01%|
|Other regions|3,255,311|2,550,450|21.65%|-31.82%|-32.78%|1.13%|

 III. Non - core business analysis
√Applicable
□
Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|||Percentage to total|Explanation of the reason||
||Amount|||Whether sustainable or not|
|||profits|||
|Impairment of|||Mainly due to provision forbad debts||
||1,108,695|0.23%||No|
|assets|||||
|Non-operating|||Mainly due to governmentsubsidies||
||16,029,596|3.33%||No|
|income|||||
||||Mainly due to disposal of||
|Non-operating|||||
||732,592|0.15%|non-current assets|No|
|expenses|||||

IV. Assets and liabilities
1. Significant changes in assets composition
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||End of the report period||End of the same period last year||||
||||||Increase or||
|||Percentage|Amount|||Explanation of Significant|
|||||Percentage to|decrease in||
||Amount|to total||||changes|
|||||total assets|proportion||
|||assets|||||
||934,235,201|||||Mainly due to the increase in|
|Monetary funds||5.21%|586,803,505|3.46%|1.75%|monetary funds during the|
|||||||report period|
|Accounts|679,943,915||||||
|||3.79%|627,985,983|3.70%|0.09%||
|receivable|||||||
|Inventory|630,593,776|3.52%|477,780,925|2.81%|0.71%||
|Fixed assets|11,773,502,135|65.66%|11,457,972,991|67.48%|-1.82%||
|Construction in|1,259,425,371|7.02%|1,362,096,377|8.02%|-1.00%||

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|progress|||||||
||2,399,694,000|||||Mainly due to the repayment|
|Short-term|||||||
|||13.38%|4,017,869,662|23.66%|-10.28%|of the loan due in the report|
|borrowing|||||||
|||||||period|
|Long-term|1,624,000,000||||||
|||9.06%|1,438,660,000|8.47%|0.59%||
|borrowing|||||||

2. Assets and liabilities at fair value
□Applicable
√Not applicable
3. Limited asset rights as of the end of the report period
||||
|-|-|-|
|Item|Limited amount|Limited reason|
|Monetary fund|2,184,679|Margin deposit deposited when the Company applies for a letter of credit issued by the bankand applies for loans from the bank.|

V. Investment analysis
1. Overall situation
√Applicable
□
Not applicable
||||
|-|-|-|
||Investment in the same period of||
|Investment in the report period (RMB)||Change range|
||last year ( RMB)||
|763,429,330|1,006,492,308|-24.15%|

 2. The major equity investment obtained in the report period
□Applicable
√Not applicable
CSG Semi-annual Report 2017 3. The major ongoing non-equity investment in the report period
√Applicable
□
Not applicable
Unit: RMB 0,000
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Project|Wayofinvestment|Fixedassetinvestment ornot|Industryinvolved||Amount|Accumulative amountactuallyinvested bythe end ofthe reportperiod|Source offunds|Progress of project (ongoing projects)||Expected return||Accumula|Reasons fornotachievingthe plannedprogress andthe expectedreturn||
||||||invested|||||||tive|||
||||||in the|||||||revenue|||
||||||report|||||||achieved|||
||||||period|||||||by the end|||
|||||||||||||of the|||
|||||||||||||report|||
|||||||||||||period|||
|Yichang CSGupgrading &expansion projectof electronicgrade polysiliconandcold-hydrogenation technicalupgrading|Self-built|Yes|Manufacturingindustry|4,633||21,754|Own fundsandborrowingsfrom financialinstitutions||Plan to add a new cold-hydrogenation line in|22,481|0||Thepolysiliconproducts arestill in theexperimentalstage andhave notbeen put intooperationyet.||
||||||||||Yichang CSG, which can produce electronic||||||
||||||||||grade polysilicon on basis of the solar grade||||||
||||||||||polysilicon device, and meanwhile, add||||||
||||||||||correspondent systems of reduction, rectification,||||||
||||||||||recycle and utilities, so as to boost the actual||||||
||||||||||capacity of polysilicon up to 12,000 tons/year||||||
||||||||||(including 2,500 tons/year for electronic grade||||||
||||||||||polysilicon and 9,500 tons/year for solar energy||||||
||||||||||grade polysilicon). Now the cold-hydrogenation||||||
||||||||||line has been constructed.||||||
|Expanding150MW solar PVcell project inDongguan|Self-built|Yes|Manufacturingindustry|0||11,709|Own fundsandborrowingsfrom financialinstitutions||Plan to invest in and expand the polysilicon cell|2,799|443|||The project|
||||||||||production line of Dongguan. When the project is|||||was put into|
||||||||||completed, the designed production capacity in|||||operation at|
||||||||||Dongguan will be increased from 200MW/year to|||||the end of|
||||||||||350MW/year and the actual production capacity|||||2016. It is|
||||||||||will be 560MW/year. The capacity goal has been|||||currently at|

CSG Semi-annual Report 2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||achieved by the end of Nov. 2016.|||||the|
|||||||||||||commissioni|
|||||||||||||ng stage.|
|Yichang CSG’sproject of adding1GW siliconwafer|Self-built|Yes|Manufacturingindustry|25,139|34,640|Own fundsandborrowingsfrom financialinstitutions|Plan to add 1GW capacity of high-efficientpolysilicon wafer on the basis of Yichang CSG'sexisting 1GW silicon wafer capacity, so as toachieve 2.0 GW capacity of polysilicon wafer.Now the first 500MW is under construction,which is expected to finish in July 2017.||14,853|0||There’s no|
|||||||||||||profit from|
|||||||||||||the project|
|||||||||||||as it is still|
|||||||||||||in the|
|||||||||||||construction|
|||||||||||||period.|
|PV power plantinvestment|Self-built|Yes|Manufacturingindustry|4,593|19,972|Own fundsandborrowingsfrom financialinstitutions||CSG plans to construct a PV power plant within|4,344|574|The projectwas put intooperation atthebeginning of2017.||
|||||||||two years from 2016 to 2017. Its wholly-owned|||||
|||||||||subsidiary, Shenzhen CSG PV Energy Co., Ltd.|||||
|||||||||will self-build 200MW and the remaining|||||
|||||||||140MW will be constructed by CSG with Qibin|||||
|||||||||Group. In 2016, Shenzhen CSG PV obtained the|||||
|||||||||approval for 60MW integrated PV power plant.3|||||
|||||||||0 MW distributed PV power plant was developed|||||
|||||||||and constructed. 15MW was connected to the|||||
|||||||||grid in 2016.|||||
|4 million squaremeters lightguide plate andPV glassproduction line|Self-builtandpurchased|Yes|Manufacturingindustry|18,042|32,369|Own fundsandborrowingsfrom financialinstitutions||The Company plans to construct a 4 million|10,543|0|There’s noprofit fromthe projectas it is stillin theconstructionperiod.||
|||||||||square meters PV glass production line for new|||||
|||||||||type ultra-thin LCD display. The line is also|||||
|||||||||provided with a capacity of higher strength|||||
|||||||||ultra-thin electronic glass than CSG Qingyuan.|||||
|||||||||The equity of Xianning Feng Wei Technology|||||
|||||||||Co., Ltd. has been acquired within the report|||||
|||||||||period and the project is under construction.|||||

CSG Semi-annual Report 2017
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Cold repairtechnicalupgrading projectof the first line ofChengdu CSG||Self-built|Self-built|Manufacturingindustry|5,722||9,436|Own fundsandborrowingsfrom financialinstitutions||Cold repair technical upgrading has been|2,228|472||The projectwas put intooperation inMay, 2017.||
|||||||||||performed for the first line of Chengdu CSG. The||||||
|||||||||||line will be upgraded to be a professional, high||||||
|||||||||||quality industrial thin glass line, featured 2mm||||||
|||||||||||series automobile glass while also covering||||||
|||||||||||1.6mm.||||||
||Cold repair|Self-built|Self-built|Manufacturingindustry|451||17,791|Own fundsandborrowingsfrom financialinstitutions|The former 900T line of float glass of Hebei CSGwas upgraded to produce 2mm~19mm glasswafer. The project started on August 18, 2016 andnow it is at the commissioning stage.||1,510|1,356||The projectwas put intooperation inMarch,2017.||
||technical|||||||||||||||
||upgrading of the|||||||||||||||
||second line|||||||||||||||
||(900T) of Hebei|||||||||||||||
||CSG|||||||||||||||
|Subtotal||--|--|--|58,580||147,671|--|--||58,758|2,845||--||
|Project||Wayofinvestment|Fixedassetinvestment ornot|Industryinvolved||Amount|Accumulative amountactuallyinvested bythe end ofthe reportperiod|Source offunds|Progress of project (suspended projects)||Expected return||Accumula|Reasons fornotachievingthe plannedprogress andthe expectedreturn||
|||||||invested|||||||tive|||
|||||||in the|||||||revenue|||
|||||||report|||||||achieved|||
|||||||period|||||||by the end|||
||||||||||||||of the|||
||||||||||||||report|||
||||||||||||||period|||
|Wujiang energy -saving glassexpansion project||Self-built|Yes|Manufacturingindustry|0||21,239|--||Plan to increase two coated glass production lines|--|--|||By now, part|
|||||||||||and part of the deep processing supporting|||||of the|
|||||||||||capacity. When the project is completed, the|||||project has|
|||||||||||annual capacities of wide flat coated glass and|||||been|
|||||||||||coated insulating glass will rise by 3 million|||||completed|
|||||||||||square meters and 1.2 million square meters|||||and the|
|||||||||||respectively.The wide flat coated glass line of 3|||||revenue was|

CSG Semi-annual Report 2017
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||million square meters has been completed, andthe others will be invested according to marketsituations.||||||notcalculatedindividually.||
|Yichang CSG700MWcrystalline siliconsolar cell project||Self-built||Yes||Manufacturingindustry||0|0|--|||Plan to build a crystalline silicon solar cell|--||--||The projectwassuspended.||
||||||||||||||production line with annual capacity of 700MW.|||||||
||||||||||||||The project was suspended and further|||||||
||||||||||||||investment will be based on actual industry|||||||
||||||||||||||situations.|||||||
||Expanding|Self-built||Yes||Manufacturingindustry||0|0|--|||Plan to expand the solar module production line|--||--||The projectwassuspended.||
||500MW solar||||||||||||with annual capacity of 500MW. The project was|||||||
||module project in||||||||||||suspended and further investment will be based|||||||
||Dongguan||||||||||||on actual industry situations.|||||||
|Hebei PanelGlass project ofmedium-aluminaultra-thinelectronic glass||Self-built||Yes||Manufacturingindustry||0|353|Own funds|||Plan to establish a production line for|--||--||The projectwassuspended.||
||||||||||||||medium-alumina ultra-thin electronic glass in|||||||
||||||||||||||Hebei Panel Glass, using clean natural gas as the|||||||
||||||||||||||fuel, and produce 0.33mm～1.1mm|||||||
||||||||||||||medium-alumina ultra-thin glass with float|||||||
||||||||||||||process. The project was still in preparation.|||||||
|Relocation andequipmentupgrading of thesolar moduleproduction line inDongguan||Self-built||Yes||Manufacturingindustry||0|0|--|||The Company plans to construct a module|--||--||The projectwassuspended.||
||||||||||||||workshop in Xianning, Hubei Province, of which|||||||
||||||||||||||the final capacity will be 500MW. By relocation|||||||
||||||||||||||of some of the module equipment of its|||||||
||||||||||||||subsidiary, Dongguan CSG PV Technology Co.,|||||||
||||||||||||||Ltd. and purchase of some new equipment, the|||||||
||||||||||||||first stage capacity of the Xianning workshop will|||||||
||||||||||||||be 300MW and, afterwards, it will be expanded|||||||
||||||||||||||to 500MW as required by the market conditions.|||||||
||Solar online||Self-b||Yes||Manufa|0|0||--||The Company plans to construct an online||--||--||The project|

CSG Semi-annual Report 2017
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||self-cleaning|uilt||cturingindustry|||||||self-cleaning coated glass line in Dongguan.||||||wassuspended.||
||coated glass||||||||||||||||||
||project of||||||||||||||||||
||Dongguan CSG||||||||||||||||||
|Malaysia-invested architecturalglass plant||Self-built|Yes|Manufacturingindustry|0||0||--|||The Company plans to construct an architectural|--||--||The projectwassuspended.||
|||||||||||||glass plant in Negeri Sembilan, Malaysia. The|||||||
|||||||||||||Phase I capacity of the newly-built plant will be|||||||
|||||||||||||1,200,000 square meters insulating glass and|||||||
|||||||||||||1,000,000 square meters single coated glass.|||||||
||Subtotal|--|--|--||0||21,592||--||--||--||--||--|
||Total|--|--|--||58,580||169,263||--||--||58,758||2,845||--|
||Details of approval and disclosure of the above projects as follows:||||||||||||||||||
||1.Expansion on energy-saving glass capacity of Wujiang Project and Yichang CSG 700MW silicon wafers project were deliberated and approved by the 18th meeting of the 5th session of board||||||||||||||||||
||of directors on Dec. 23, 2010 and disclosed on Dec. 25, 2010, Announcement No.: 2010-046.||||||||||||||||||
||2.Yichang CSG upgrading & expansion project of electronic grade polysilicon was deliberated and approved by the 5thmeeting of the 7th session of board of directors on Mar. 27,2015 and||||||||||||||||||
||disclosed on Mar. 31, 2015, Announcement No.: 2015-009.||||||||||||||||||
||3.Expanding 150MW solar PV cell project in Dongguan was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and disclosed on Jan. 6, 2016,||||||||||||||||||
||Announcement No.: 2016-001.||||||||||||||||||
||4.Yichang CSG to add a 1GW silicon wafer project was deliberated and approved by the 10thmeeting of the 7th session of board of directors on Jan. 5, 2016 and 13thmeeting of the 7th session||||||||||||||||||
||of board of directors on Apr. 15, 2016, respectively, and disclosed on Jan. 6, 2016 and Apr. 16, 2016, respectively, Announcement No.: 2016-001 and 2016-018.||||||||||||||||||
||5.PV power plant investment was deliberated and approved by the 11thmeeting of the 7th session of board of directors on Jan. 21, 2016 and disclosed on Jan. 22, 2016, Announcement No.:||||||||||||||||||
||2016-006.||||||||||||||||||
||6.4 million square meters light guide plate and PV glass production line was deliberated and approved by the extraordinary meeting of the 7th session of board of directors on May 20, 2016 and||||||||||||||||||
||disclosed on May 21, 2016, Announcement No.: 2016-025.||||||||||||||||||
||7.Cold repair upgrading of the first line of Chengdu CSG was deliberated and approved by the 15th meeting of the 7th session of board of directors on Jul. 21, 2016.||||||||||||||||||
||8.Hebei Panel Glass project of medium-alumina ultra-thin electronic glass was deliberated and approved by the 4th meeting of the 7th session of board of directors on Oct.27, 2014 and||||||||||||||||||
||disclosed on Oct. 29, 2014, Announcement No.: 2014-030.||||||||||||||||||
||9.Relocation and equipment upgrading of the solar module production line in Dongguan, solar online self-cleaning coated glass project of Dongguan CSG and Malaysia-invested architectural||||||||||||||||||
||glass plant were deliberated and approved by the 13thmeeting of the 7th session of board of directors on Apr. 5, 2016 and disclosed on Apr. 16, 2016, Announcement No.: 2016-018.||||||||||||||||||

CSG Semi-annual Report 2017 4. Financial assets investment
(1) Securities investment
□ Applicable√ Not applicable
There was no securities investment in the report period.
(2) Derivative investment
□ Applicable√ Not applicable
There was no derivative investment in the report period.
VI. Sale of major assets and equity
1. Sale of major assets
□ Applicable√ Not applicable
There was no sale of major assets in the report period.
2. Sale of major equity
□ Applicable√ Not applicable
VII. Analysis of main subsidiaries and joint-stock companies
√Applicable
□
Not applicable
Particular about main subsidiaries and joint -stock companies which have influence on the Company's net profit by over10% Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name of|||Register|Total assets|Net Assets|Operating|Operating profit||
||Type|Main business||||||Net profit (RMB)|
|company|||capital|(RMB)|(RMB)|revenue (RMB)|(RMB)||
|Chengdu CSG||Development,|||||||
||||260||||||
|Glass Co.,|Subsidiary|manufacture and sales of||938,103,561|504,519,334|422,534,110|87,692,252|75,472,235|
||||million||||||
|Ltd.||various special glass|||||||
||||USD||||||
|Hebei CSG|||||||||
|||Manufacture and sales|||||||
|Glass Co.,|Subsidiary||48.06|917,556,377|381,525,523|242,352,308|22,349,472|17,823,889|
|||of various special glass|||||||
|Ltd.|||million||||||
|Dongguan|||||||||
|||Manufacture and sales|||||||
|CSG Solar|||480||||||
||Subsidiary|of Solar-Energy Glass||1,213,775,515|778,362,064|498,067,261|57,432,316|51,430,324|
|Glass Co.,|||million||||||
|||products|||||||
|Ltd.|||||||||
|Dongguan|||||||||
|||Deep processing of|240||||||
|CSG|Subsidiary|||1,021,925,255|447,848,771|418,260,227|21,173,278|21,034,834|
|||glass|million||||||
|Architectural|||||||||

CSG Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|Glass Co.,|||||||||
|Ltd.|||||||||
|Wujiang CSG|||||||||
|East China|||||||||
||||320||||||
|||Deep processing of|||||||
|Architectural|Subsidiary|||751,386,013|468,065,825|288,311,379|12,109,096|11,136,130|
|||glass|million||||||
|Glass Co.,|||||||||
|Ltd.|||||||||
|Shenzhen|||||||||
|Nanbo||Manufacture and sales|||||||
||||143||||||
|Display|Subsidiary|of display device||1,609,253,349|789,262,029|228,993,498|26,174,416|14,924,574|
||||million||||||
|Technology||products|||||||
|Co., Ltd.|||||||||
|Wujiang CSG|||||||||
||||565.04||||||
|||Manufacture and sales|||||||
|Glass Co.,|Subsidiary|||1,558,543,378|837,352,078|761,622,899|83,449,118|75,660,675|
|||of various special glass|million||||||
|Ltd.|||||||||
||||1,467.||||||
|Yichang CSG||Manufacture and sales|||||||
|Polysilicon|Subsidiary|of high purity silicon|98|3,763,383,503|1,273,687,724|833,838,976|85,725,669|74,914,606|
|Co., Ltd.||material products|million||||||
|Dongguan||Manufacture and sales|||||||
||||516||||||
|CSG PV-tech|Subsidiary|of solar cells and||979,332,164|402,816,633|592,852,501|14,138,216|15,453,052|
||||million||||||
|Co., Ltd.||modules|||||||
|Xianning CSG||Development and|||||||
||||235||||||
|Glass Co.,|Subsidiary|manufacture and sales of||721,793,962|375,185,843|364,751,116|64,904,230|63,744,741|
||||million||||||
|Ltd.||various special glass|||||||

Particular about subsidiaries obtained or disposed in report period
□ Applicable√ Not applicable
VIII. Structured main bodies controlled by the Company
□ Applicable√ Not applicable
IX. Prediction of business performance from January to September 2017
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
X. Risks and response measures the Company faces
In 2017, in the face of “New Normal” of domestic economic development and “New CSG” construction task of the Company, the Company will face the following risks and challenges:
① By the end of 2016, the Company had significant personnel change.Under the efforts of the Board of Directors and all employees,
the stability of daily operation of the Company has been guaranteed. At present, the new management team of CSG has been
CSG Semi-annual Report 2017 established, and the operation management of the Company has been normal. However, the Company still faces the risk of lack of high-end talent reserve. To cope with aforesaid risks, the Company will take the following measures:
A. Construct new corporate culture of CSG as soon as possible, strengthen innovation execution culture, establish an kind of open, equal, fair and enterprising corporate culture, and reinforce internal core cohesion of employees;
B. Establish remuneration incentive system which related to performance and improve employee incentive mechanism;
C. Strengthen internal employee training, introduce externalhigh-quality talent, and rapidly establish a high-quality talent team; D. Establish sustainable talent recruitment, cultivation, utilization, retaining, and development management system; create a future-oriented human resource production, development, supply system that can support the future development of CSG.
②The flat glass and architectural glass industry continue to face the pressure of downward demand and excess capacity, the solar energy and PV industry will face the risk of industrial integration and price fluctuation, display devices and electronic glass industry will encounter the risk of accelerated technical upgrading and slow demand on electronic product. To cope with aforesaid risks, the Company will take the following measures:
A. In the flat glass industry, the Company will accelerate the technical upgrading and reform of existing production line to realize differential operation, expand industrial scale and strengthen industrial competitiveness through industrialM&A;
B. In architectural glass industry, the Company will strengthen the development of high-end market and overseas market, actively develop traditional residence market, and at the same time, maintain the industrial advantageous position of the Company through market-oriented extension of industrial chain;
C. In solar energy PV industry, the Company will accelerate the construction of silicon wafer production expansion project and other projects, increase support on construction of downstream PV power station, and reduce the risk of price fluctuation of upstream silicon material, etc.
D. In electronic glass and display devices industry, the Company will strengthen research and development of new technology, new product, maintain its technical leading advantage in the industry, and further improve the product quality of ultra-thin electronic glass, so as to rapidly develop terminal market and improve industrial profitability.
③ Since 2016, flat glass and polysilicon industrial price has had great fluctuation, which results in great fluctuation of upstream raw material price, and meanwhile the labor price is constantly rising, which brings risk to the operation of the Company. To cope with risk, the Company will take the following measures:
A. Vigorously exploit potential and increase efficiency, and effectively implement energy saving and consumption reduction; B. Focus on the market change, and lock the price of bulk commodity at proper time;
C. Utilize bulk purchase advantage to reduce purchase cost;
D. Improve automatic production level, raise labor productivity.
④ Risk of fluctuation of foreign exchange rate: At present, nearly10.65% of the sales revenue of the Company are from overseas, in the future, the Company will further develop overseas business, and therefore, the fluctuation of exchange rate will bring certain risk to the operation of the Company. To cope with such risk, the Company will settle exchange in time and use safe and effective risk evading instrument and product to relatively lock exchange rate and reduce the risk caused by fluctuation of exchange rate.
CSG Semi-annual Report 2017 Section V. Important Events
I. Particulars about annual general meeting and extraordinary general meeting held in the report period
1. Particulars about Shareholders' General Meeting in the report period
|||||||
|-|-|-|-|-|-|
|||Investor||||
|Meeting session|Type of meeting||Hold date|Disclosure date|Disclosure index|
|||participation ratio||||
|The 7th Board|Extraordinary|||||
|||29.55%|Jan. 13, 2017|Jan. 14, 2017|Juchao website(www.cninfo.com.cn)|
|of Directors|general meeting|||||
|The 7th Board|Extraordinary|||||
|||30.26%|Mar. 02, 2017|Mar. 03, 2017|Juchao website(www.cninfo.com.cn)|
|of Directors|general meeting|||||
|The 7th Board|Extraordinary|||||
|||29%|May 02, 2017|May 03, 2017|Juchao website(www.cninfo.com.cn)|
|of Directors|general meeting|||||
|The 8th Board|Annual general|||||
|||29.07%|May 22, 2017|May 23, 2017|Juchao website(www.cninfo.com.cn)|
|of Directors|meeting|||||

2. Extraordinary general meeting which is requested to convene by the preferred shareholders who have resumed the voting right
□ Applicable√Not applicable
II.Profit distribution and capitalization of capital reserve in the report period
□ Applicable√Not applicable
The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital. III. Commitments completed by the actual controllers, the shareholders, the related parties, the purchasers and the Company during the report period and those thathadn’t been completed execution by the end of the report period
√Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
|||||Commit-m|Commit-|Implement-|
|Commitments|Promisee||Content of commitments||||
|||commitments||ent date|ment term|ation|
||The original||The Company has implemented share|||By the end of|
|Commitments|||||||
||non-tradable|Commitment|merger reform in May 2006. Till June|||the report|
|for|||||||
||shareholder|of share|2008, the share of the original|2006-5-22|N/A|period, the|
|Share Merger|||||||
||Shenzhen|reduciton|non-tradable shareholders which|||above|
|Reform|||||||
||International||holding over 5% total shares of the|||shareholders|

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||Holdings (SZ)||Company had all released. Therein, the|||of the|
||Limited and Xin||original non-tradable shareholder|||Company had|
||Tong Chan||Shenzhen International Holdings (SZ)|||strictly carried|
||Industrial||Limited and Xin Tong Chan Industrial|||out their|
||Development||Development (Shenzhen) Co., Ltd. both|||promises.|
||(Shenzhen) Co.,||are wholly-funded subsidiaries to||||
||Ltd.||Shenzhen International Holdings||||
||||Limited (hereinafter Shenzhen||||
||||International for short) listed in Hong||||
||||Kong united stock exchange main||||
||||board. Shenzhen International made||||
||||commitment that it would strictly carry||||
||||out related 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.||||
||||Foresea Life Insurance Co., Ltd.,||||
|||||||By the end of|
||||Shenzhen Jushenghua Co., Ltd. and||||
||||||During|the report|
|||Com|Chengtai Group Co., Ltd. issued||||
||||||the period|period, the|
|||mitment of|detailed report of equity change on 29||||
||Foresea Life||||when|above|
|||horizontal|June 2015, in which, they undertook to||||
|Commitments in|Insurance Co.,||||Foresea|shareholders|
|||competition,|keep independent from CSG in aspects||||
|report of|Ltd,, Shenzhen||||Life|of the|
|||affiliate|of personnel, assets, finance,|2015-6-29|||
|acquisition or|Jushenghua Co.,||||remains|Company had|
|||Transaction|organization set-up and business as long||||
|equity change|Ltd. and Chengtai||||the largest|strictly carried|
|||and|as Foresea Life Insurance remained the||||
||Group Co., Ltd.||||sharehold|out their|
|||capit|largest shareholder of CSG. Meanwhile,||||
||||||er of the|promises.|
|||al occupation|they made commitment on regularizing||||
||||||Company||
||||related transaction and avoiding||||
||||industry competition.||||
|Commitments in|||||||
|assets|||||||
|reorganization|||||||
|Commitments in|||||||
|initial public|||||||
|offering or|||||||
|re-financing|||||||
|Equity incentive|||||||

CSG Semi-annual Report 2017
|||
|-|-|
|commitment||
|Other||
|commitments||
|for medium and||
|small||
|shareholders||
|Completed on||
||Yes|
|time(Y/N)||
|If the||
|commitments is||
|not fulfilled on||
||Not applicable|
|time, explain the||
|reasons and the||
|next work plan||

IV. Engaging and dismissing of CPA
Whether the semi-annual report has been audited or not
□ Yes√ No
The semi-annual report of the Company has not been audited.
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if applicable) for “Non-standard audit report” of the period that issued by CPA
□ Applicable√ Not applicable
VI. Explanation from Board of Directors for “Non-standard audit report” of the previous year
□ Applicable√ Not applicable
VII. Issues related to bankruptcy and reorganization
□ Applicable√ Not applicable
No such issues related to bankruptcy and reorganization occurred in the report period.
VIII. Lawsuits
Significant lawsuits and arbitrations
□ Applicable√ Not applicable
There were no significant lawsuits or arbitrations in the report period.
Other lawsuits
□ Applicable√ Not applicable
CSG Semi-annual Report 2017 IX. Penalty and rectification
□ Applicable√ Not applicable
No penalty or rectification for the Company in the report period.
X. Integrity of the Company and its controlling shareholders and actual controllers
□ Applicable√ Not applicable
XI. Implementation of theCompany’s stock incentive plan, employee stock ownership plan or other employee incentives
□ Applicable√ Not applicable
In the report period, there was no equity incentive plan, employee stock ownership plan or other employee incentive measures and their implementation.
XII.Major related transaction
1. Related transaction with routine operation concerned
□ Applicable√ Not applicable
In the report period, the Company did not have related transaction with routine operation concerned.
2. Related transaction with acquisition of assets or equity, sales of assets or equity concerned
□ Applicable√ Not applicable
In the report period, the Company did not have related transaction with acquisition of assets or equity, sales of assets or equity concerned.
3. Related transaction with jointly external investment concerned
□ Applicable√ Not applicable
In the report period, the Company did not have related transaction with jointly external investment concerned.
4. Credits and liabilities with related parties
□ Applicable√ Not applicable
There was no credits and liabilities with related parties in the report period.
5. Other major related transaction
□ Applicable√ Not applicable
There was no other major related transaction in the report period.
CSG Semi-annual Report 2017 XIII.Particular about non-operating fund of listed company occupied by controlling shareholder and its affiliated enterprises
□Applicable√Not applicable
It did not exist that non-operating fund of listed company was occupied by controlling shareholder or its affiliated enterprises in the report period.
XIV. Significant contracts and their implementation
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable√ Not applicable
No trusteeship for the Company in the report period.
(2) Contract
□ Applicable√ Not applicable
No contract for the Company in the report period.
(3) Leasing
□ Applicable√ Not applicable
No leasing for the Company in the report period.
2. Major guarantees
√Applicable□ Not applicable
(1) Guarantee
Unit: RMB 0,000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Particulars about the external guarantee of the Company (Barring the guarantee for subsidiaries)||||||||||||
|||||Actual date ofhappening (Date ofsigning agreement)|||||||Guarante|
||Related|||||||||||
|||||||||||Complete|e for|
|Name of the|Announce|||||Actual||||||
||||Guarantee|||||Guarantee|Guarantee|implemen|related|
|Company|ment|||||guarantee||||||
||||limit|||||type|term|tation or|party|
|guaranteed|disclosure|||||limit||||||
|||||||||||not|(Yes or|
||date|||||||||||
||||||||||||no)|
|Guarantee of the Company for the subsidiaries||||||||||||
||||||Actual date||||||Guarante|
|||Related||||||||||
||||||of|||||Complete|e for|
|||Announcem|||||Actual|||||
|Name of the Company||||Guarant|happening|||Guarantee|Guarantee|implement|related|
|||ent|||||guarantee|||||
|guaranteed||||ee limit|(Date of|||type|term|ation or|party|
|||disclosure|||||limit|||||
||||||signing|||||not|(Yes or|
|||date||||||||||
||||||agreement)||||||no)|

CSG Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|YiChang Nanbo Photoelectric|||||General||||
||2017-05-22|5,472|2017-05-26|3,284||2 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|YiChang Nanbo Photoelectric|||||General||||
||2016-12-14|2,432|2017-05-23|1,459||1 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
||||||General||||
|Wujiang CSG Glass Co., Ltd.|2016-08-12|10,000|2017-03-07|7,000||1 year|No|No|
||||||guarantee||||
|Dongguan CSG Architectural|||||General||||
||2016-08-12|11,200|2016-08-19|10,000||1 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|Dongguan CSG Architectural|||||General||||
||2017-01-13|18,000|2017-02-09|13,000||1 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|Yichang CSG Display Co.|||||General||||
||2017-05-31|3,648|2017-06-15|2,189||3 year|No|No|
|,Ltd.|||||guarantee||||
|Tianjin CSG Energy-Saving|||||General||||
||2016-08-12|10,000|2017-02-14|2,000||1 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|Sichuan CSG Energy|||||General||||
||2016-03-23|13,000|2016-08-12|2,000||1 year|No|No|
|Conservation Glass Co., Ltd.|||||guarantee||||
|Sichuan CSG Energy|||||General||||
||2017-01-23|5,000|2017-04-11|2,000||1 year|No|No|
|Conservation Glass Co., Ltd.|||||guarantee||||
|Wujiang CSG East China|||||General||||
||2016-08-12|10,000|2017-04-28|6,000||1 year|No|No|
|Architectural Glass Co., Ltd.|||||guarantee||||
|Wujiang CSG East China|||||General||||
||2016-12-14|10,000|2017-04-26|2,000||1 year|No|No|
|Architectural Glass Co., Ltd.|||||guarantee||||
|Xianning CSG Energy-Saving|||||General||||
||2016-08-12|10,000|2017-06-21|2,600||1 year|No|No|
|Glass Co., Ltd|||||guarantee||||
|Xianning CSG Energy-Saving|||||General||||
||2016-03-23|10,000|2016-12-20|5,500||3 year|No|No|
|Glass Co., Ltd|||||guarantee||||
|Dongguan CSG Solar Glass|||||General||||
||2016-12-14|15,000|2017-06-14|3,300||1 year|No|No|
|Co., Ltd.|||||guarantee||||
|Yichang CSG Polysilicon|||||General||||
||2017-01-13|2,000|2017-04-26|2,000||1 year|No|No|
|Co.,Ltd.|||||guarantee||||
|Xianning CSG Photoelectric|||||General||||
||2016-08-12|30,000|2017-01-03|19,000||5 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|Qingyuan CSG New|||||||||
||||||General||||
|Energy-Saving Materials Co.,|2016-08-12|5,000|2016-12-14|3,060||1 year|No|No|
||||||guarantee||||
|Ltd.|||||||||
|YiChang Nanbo Photoelectric|||||General||||
||2017-05-22|10,032|2017-05-31|6,080||3 year|No|No|
|Glass Co., Ltd.|||||guarantee||||
|Yichang CSG Polysilicon|||||General||||
||2017-05-22|20,000|2017-06-22|19,000||3 year|No|No|
|Co.,Ltd.|||||guarantee||||

CSG Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Total amount of actual|||||
|Total amount of approving guarantee for|||||occurred guarantee for|||||
||||259,606||||80,851|||
|subsidiaries in report period (B1)|||||subsidiaries in report|||||
||||||period (B2)|||||
||||||Total balance of actual|||||
|Total amount of approved guarantee for||||||||||
||||||guarantee for subsidiaries|||||
|subsidiaries at the end of reporting period|||438,794||||111,471|||
||||||at the end of reporting|||||
|(B3)||||||||||
||||||period (B4)|||||
|Subsidiary to subsidiary guarantees||||||||||
||||Actual date of||||||Guarante|
||Related|||||||||
|||||||||Complete|e for|
|Name of the|Announce|||||||||
|||Guarantee|happening (Date|Actual||Guarantee|Guarantee|implemen|related|
|Company|ment|||||||||
|||limit|of signing|guarantee limit||type|term|tation or|party|
|guaranteed|disclosure|||||||||
||||agreement)|||||not|(Yes or|
||date|||||||||
||||||||||no)|
|Total amount of guarantee of the Company( total of three abovementioned guarantee)||||||||||
|Total amount of approving||||Total amount of actual||||||
|guarantee in report period||259,606||occurred guarantee in report|||80,851|||
|(A1+B1+C1)||||period (A2+B2+C2)||||||
|Total amount of approved||||Total balance of actual||||||
|guarantee at the end of report||438,794||guarantee at the end of report|||111,471|||
|period (A3+B3+C3)||||period (A4+B4+C4)||||||
|The proportion of total actual guarantee (that is A4+B4+C4) to||||||||||
|||||13.79%||||||
|net assets of the Company||||||||||
|Including:||||||||||
|Amount of guarantee for shareholders, actual controller and its||||||||||
|||||0||||||
|related parties (D)||||||||||
|The debts guarantee amount provided for the guaranteed||||||||||
|parties whose assets-liability ratio exceed 70% directly or||||0||||||
|indirectly (E)||||||||||
|Proportion of total amount of guarantee to net assets of the||||||||||
|||||0||||||
|Company exceed 50% (F)||||||||||
|Total amount of the aforesaid three guarantees (D+E+F)||||0||||||
|Explanations on possibly bearing joint and several liquidating||||The Company shall bear joint and several liabilities in guarantee||||||
|responsibilities for undue guarantees (if applicable)||||range if the subsidiaries fail to fulfill the obligation of repayment.||||||
|Explanations on external guarantee against regulated||||||||||
|||||No||||||
|procedures (if applicable)||||||||||

Particulars about the guarantees which were guaranteed by a combination approach
(2) Illegal external guarantee
□ Applicable√ Not applicable
No Illegal external guarantee in the report period.
CSG Semi-annual Report 2017 3. Other material contracts
□ Applicable√ Not applicable
No other material contracts for the Company in the report period.
XV. Social responsibilities
1. Performance of social responsibility for targeted poverty alleviation
No targeted poverty alleviation was carried out in the first half of the year, no follow-up plan for targeted poverty alleviation either. 2. Significant environmental situation
Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental protection department
Yes
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Name of|||||||||
||major|||||||||
||pollutants|||||Implementation||||
|Name of|||Number of|Exhaust|Emission|||Approved||
||and|Way of||||of pollutant|Total||Excessive|
|Company or|||Exhaust|vent|concentratio|||total||
||characteristi|emission||||emission|emission||emissions|
|subsidiary|||vent|distribution|n|||emission||
||c|||||standards||||
||contaminant|||||||||
||s|||||||||
|||Discharge||||《Emission||||
|||after the||||standard of air|||Reach the|
||||||Dust≤30mg/|||Dust:||
||Dust|treatment of|15|Chimney||pollutants for flat|5.5t||discharge|
||||||m³|||17.25t/a||
|||dust||||glass industry》|||standard|
|||removal||||Dust≤50mg/m||||
|||Discharge||||||||
|||||||《Emission||||
|||after the||||||||
|||||||standard of air|||Reach the|
|||treatment of|||soot≤40|||soot :||
||Soot||1|Chimney||pollutants for flat|20.02t||discharge|
|Xianning||denitrificati|||mg/m³|||79.57t/a||
|||||||glass industry》|||standard|
|CSG Glass||on and dust||||||||
|||||||soot≤50 mg/m³||||
|Co., Ltd.||removal||||||||
|||Discharge||||||||
|||||||《Emission||||
|||after the||||||||
|||||||standard of air|||Reach the|
|||treatment of|||SO≤2002|||||
||SO2||1|Chimney||pollutants for flat|52.22t|636.5t/a|discharge|
|||denitrificati|||mg/m³|||||
|||||||glass industry》|||standard|
|||on and dust||||||||
|||||||SO≤400 mg/m³2||||
|||removal||||||||
||Nitrogen|Discharge|||NOx≤400|《Emission|||Reach the|
||||1|Chimney|||109.14t|1113.89t/a||
||oxide|after the|||mg/m³|standard of air|||discharge|

CSG Semi-annual Report 2017
||||
|-|-|-|
|treatment of|pollutants for flat|standard|
|denitrificati|glass industry》||
|on and dust|NOx≤700 mg/m³||
|removal|||

Construction and operation of pollution control facilities
The Company builds Flue Gas Dust Removal System in the production lines. The system is running normally and exhaust emissions is up to the standard.
XVI. Statement on other important matters
√Applicable□ Not applicable
1. Short-term Financing Bills
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, agreed the application of issuing short-term financing bills with a total amount of no more than 40 percent of theCompany’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, which was redeemed on 14 March 2015. On 22 April 2015, the Company issued the 1st batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.6 billion and annual interest rate of4.28%, and the expiry date is 23 April 2016. On 16-17 September 2015, the Company issued the 2nd batch of short-term financing bills for the year of 2015 with a total amount of RMB 0.4 billion and annual interest rate of3.50%, and the expiry date is 17 September 2016.
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.
For details, please refer to www.chinabond.com.cn and www.chinamoney.com.cn.
2. Ultra-short-term financing bills
On 10 December 2014, the First ExtraordinaryShareholders’ General Meeting 2014 of CSG Holding Co., Ltd 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. On 21 May 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 ultra-short-term financing bills, amounting to RMB 4 billion and valid for two years. China Merchants Bank Co., Ltd., Shanghai Pudong Development Bank Co., Ltd., Industrial Bank Co., Ltd., China CITIC Bank Co., Ltd. and China Agriculture Bank Co., Ltd. were joint lead underwriters of these ultra-short-term financing bills, which could be issued by stages within period of validity of the registration. On 12 June 2015, the Company issued the first batch of ultra-short-term financing bills for the year of 2015 with total
amount of RMB 0.8 billion and valid term of 270 days at the issuance rate of4.25%, which was redeemed on 11 March 2016. On 13
October 2015, the Company issued the second batch of ultra-short-term financing bills for the year of 2015 with total amount of
RMB 1.1 billion and valid term of 270 days at the issuance rate of3.81%, which will be redeemed on 11 July 2016. On 10 March
CSG Semi-annual Report 2017 2016, the Company issued the first batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.8 billion and valid term of 270 days at the issuance rate of3.15%, which will be redeemed on 6 December 2016. On 17 May 2016, the Company issued the second batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.9 billion and valid term of 270 days at the issuance rate of4.18%, which will be redeemed on 10 February 2017. On 2 August 2016, the Company issued the third batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.6 billion and valid term of 270 days at the issuance rate of3.67%, which will be redeemed on 1 May 2017. On Sep. 1, 2016, the Company issued the forth batch of ultra-short-term financing bills for the year of 2016 with total amount of RMB 0.5 billion and valid term of 270 days at the issuance rate of3.5%, which will be redeemed on 2 June 2017.
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 10 December 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 21 May 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 10 July 2015, the Company issued the first batch of medium term notes with total amount of RMB 1.2 billion and valid term of 5 years at the issuance rate of4.94%, which will be redeemed on 14 July 2020.
On April 15, 2016, theShareholders’ General Meeting of 2015 of CSG deliberated and approved the proposal of application for registration and issuance of medium term notes with total amount of RMB 0.8 billion, which could be issued by stages within period of validity of the registration according to theCompany’s actual demands for funds and the status of inter-bank funds.
On 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.
XVII. Significant events of subsidiaries of the Company
□ Applicable√ Not applicable
CSG Semi-annual Report 2017 Section VI. Changes in Shares and Particulars about Shareholders I. Changes in Share Capital
1. Changes in Share Capital
Unit: Share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the Change||Increase/Decrease in the Change (+, -)|||||After the Change||
||||New||Capitalizat|||||
|||Proporti||Bonus|ion of||||Proportio|
||Amount||shares|||Others|Subtotal|Amount||
|||on (%)||shares|public||||n (%)|
||||issued|||||||
||||||reserve|||||
|I. Restricted shares|12,736,888|0.61%||||-12,490,013|-12,490,013|246,875|0.01%|
|3. Other domestic shares|12,736,888|0.61%||||-12,490,013|-12,490,013|246,875|0.01%|
|Domestic natural||||||||||
||12,736,888|0.61%||||-12,490,013|-12,490,013|246,875|0.01%|
|person’s shares||||||||||
|||99.39||||||||
|II. Unrestricted shares|2,062,598,672|||||12,490,013|12,490,013|2,075,088,685|99.99%|
|||%||||||||
|||62.65||||||||
|1. RMB Ordinary shares|1,300,128,680|||||12,376,013|12,376,013|1,312,504,693|63.24%|
|||%||||||||
|2. Domestically listed foreign||36.74||||||||
||762,469,992|||||114,000|114,000|762,583,992|36.75%|
|shares||%||||||||
|III.Total shares|2,075,335,560|100%||||||2,075,335,560|100%|

 Reasons for share changed
√ Applicable□ Not applicable
Due to position changes of some of the directors of the Company Shenzhen Branch of China Securities Depository and Clearing Co., Ltd. adjusted the amount of the restricted shares held by the senior management personnel as per requirements, and the amount of restricted shares and unrestricted shares changed accordingly. .
Approval of share changed
√ Applicable□ Not applicable
On January 11, 2017, the Company's First Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventh session of board of supervisors.Therefore,75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the seniorexecutives’ restricted shares.
On April 13, 2017, the Company's Second Employee Congress of 2017 elected Mr. Zhao Peng as staff supervisor in the seventh session of board of supervisors.Therefore,75% shares, which were 1,875 shares held by Mr. Zhao Peng were classified into the seniorexecutives’ restricted shares.
On February 23, 2017, Board of Directors of the Company convened an interim meeting to deliberate and approve the Proposal of Appointment of Senior Management, which appointed Mr. Li Weinan as vice president of the Company. Therefore,75% shares, which were 225,000 shares held by Mr. Li Weinan were classified into the seniorexecutives’ restricted shares.
On May 2, 2017, the First meeting of the 8th Session of Board of Directors of the Company deliberate and approve the Proposal of
Appointment of the New Session of Senior Management, which appointed Mr. Li Weinan as vice president of the Company.
CSG Semi-annual Report 2017 Therefore,75% shares, which were 225,000 shares held by Mr. Li Weinan were classified into classified into the seniorexecutives’ restricted shares.
Ownership transfer for changed shares
□ Applicable√ Not applicable
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 the latest year and period
□Applicable√ Not applicable
Other information necessary to be disclosed or need to be disclosed under requirement from security regulators
□Applicable√ Not applicable
2. Changes of restricted shares
√Applicable□ Not applicable
Unit: Share
||||||||
|-|-|-|-|-|-|-|
||Number of|Number of|Number of new|Number of|||
|Shareholder|||||||
||shares restricted|shares released|shares restricted|shares restricted|Restriction reasons|Released date|
|s’ name|||||||
||at Period-begin|in the Year|in the Year|at Period-end|||
||||||On 15 November 2016, Zeng||
||||||Nan who used to be chairman of||
||||||the Board of Directors of the||
||||||Company resigned from his||
|Zeng Nan|4,500,388|4,500,388|0|0||2017-5-16|
||||||office. According to relevant||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Wu||
||||||Guobin who used to be CEO of||
||||||the Company resigned from his||
|Wu Guobin|1,810,000|1,810,000|0|0|office. According to relevant|2017-5-16|
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Luo||
||||||Youming who used to be CFO||
||||||of the Company resigned from||
|Luo|||||||
||1,790,000|1,790,000|0|0|his office. According to relevant|2017-5-16|
|Youming|||||||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Ke||
||||||Hanqi who used to be vice||
|Ke Hanqi|1,730,000|1,730,000|0|0||2017-5-16|
||||||president of the Company||
||||||resigned from his office.||

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||||According to relevant||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Zhang||
||||||Fan who used to be vice||
||||||president of the Company||
||||||resigned from his office.||
|Zhang Fan|1,530,000|1,530,000|0|0||2017-5-16|
||||||According to relevant||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Zhang||
||||||Bozhong who used to be vice||
||||||president of the Company||
|Zhang|||||resigned from his office.||
||114,000|114,000|0|0||2017-5-16|
|Bozhong|||||According to relevant||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 15 November 2016, Ding||
||||||Jiuru who used to be Secretary||
||||||of the Board of Directors of the||
||||||Company resigned from his||
|Ding Jiuru|1,050,000|1,050,000|0|0||2017-5-17|
||||||office. According to relevant||
||||||requirements, all the shares held||
||||||by him had to be locked up for||
||||||six months.||
||||||On 12 August 2016, Zhouhong||
||||||who used to be Secretary of the||
||||||Board of Directors of the||
||||||Company resigned from her||
|Zhou Hong|212,500|212,500|0|0||2017-2-13|
||||||office. According to relevant||
||||||requirements, all the shares held||
||||||by her had to be locked up for||
||||||six months.||
||||||On 11 January 2017, Yan||
||||||Wendou who used to be||
||||||supervisor of the Board of||
|Yan Wendou|0|0|20,000|20,000||2017-7-14|
||||||supervisors of the Company||
||||||resigned from his office, all the||
||||||shares which were bought by||
||||||him after leaving office had to||

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||||be locked up for six months.||
|Zhao Peng|0|0|1,875|1,875|Supervisor|——|
|Li Weinan|0|0|225,000|225,000|Senior executive|——|
|Total|12,736,888|12,736,888|246,875|246,875|--|--|

 II. Issuance and listing of Securities
□Applicable√ Not applicable
III.Amount of shareholders of the Company and particulars about shares holding
Unit: share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Total amount of shareholders||||Total amount of the preferred shareholders who have resumed||||||||
||159,996|||||||||0||
|at the end of the report period||||the voting right at end of report period (if applicable)||||||||
|Shareholder with above 5% shares held or top ten shareholders||||||||||||
||||||||Amount||Number of share|||
||||||Total shares|||||||
||||Proportion|||Changes|of|Amount of|pledged/frozen|||
|||Nature of|||held at the|||||||
|Full name of Shareholders|||of shares|||in report|restricte|un-restricted||||
|||shareholder|||end of report||||Share|||
||||held (%)|||period|d shares|shares held|||Amount|
||||||period||||status|||
||||||||held|||||
|Foresea Life Insurance Co., Ltd.– Haili Niannian||Domestic nonstate-ownedlegal person|15.45%||320,595,892|0||320,595,892||||
|Foresea Life Insurance Co., Ltd.– Universal Insurance Products||Domestic nonstate-ownedlegal person|3.92%||81,405,744|0||81,405,744||||
|Shenzhen Jushenghua Co., Ltd.||Domestic nonstate-ownedlegal person|2.87%||59,552,120|0||59,552,120||||
||||||||||pledged||59,552,100|
|Foresea Life Insurance Co., Ltd.– Own Fund||Domestic nonstate-ownedlegal person|2.15%||44,519,788|0||44,519,788||||
|Central Huijin AssetManagement Ltd.||State-ownedlegal person|1.92%||39,811,300|0||39,811,300||||
|China North IndustriesCorporation||State-ownedlegal person|1.39%||28,800,000|0||28,800,000||||
|China Galaxy InternationalSecurities (Hong Kong) Co.,Limited||Foreign legalperson|1.35%||27,992,212|-700,000||27,992,212||||
|China Merchants Securities||State-owned|1.10%||22,817,998|-7,299,0||22,817,998||||

CSG Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|(HK) Co., Limited|legal person||||57||||
|Shenzhen International Holdings(SZ) Limited|Domestic nonstate-ownedlegal person||0.96%|20,000,000|0||20,000,000||
|BBH A/C VANGUARDEMERGING MARKETSSTOCK INDEX FUND|Foreign legalperson||0.64%|13,280,792|0||13,280,792||
|Strategic investors or general legal person|||N/A||||||
|becomes top 10 shareholders due to shares issued|||||||||
|(if applicable)|||||||||
|Explanation on associated relationship among the|||Among shareholders as listed above, Foresea Life Insurance Co., Ltd.-Haili||||||
|aforesaid shareholders|||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 related||||||
||||legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 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.||||||
|Particular about top ten shareholders with un-restrict shares held|||||||||
|||||||Type of shares|||
|Shareholders’ name||Amount of un-restrict shares held at year-end|||||||
|||||||Type||Amount|
|Foresea Life Insurance Co., Ltd. –Haili Niannian||320,595,892|||||||
|||||||RMB ordinary shares||320,595,892|
|Foresea Life Insurance Co., Ltd. –Universal Insurance Products||81,405,744|||||||
|||||||RMB ordinary shares||81,405,744|
|Shenzhen Jushenghua Co., Ltd.||59,552,120||||RMB ordinary shares||59,552,120|
|Foresea Life Insurance Co., Ltd. –Own Fund||44,519,788|||||||
|||||||RMB ordinary shares||44,519,788|
|Central Huijin Asset ManagementLtd.||39,811,300|||||||
|||||||RMB ordinary shares||39,811,300|
|China North Industries Corporation||28,800,000||||RMB ordinary shares||28,800,000|
|China Galaxy InternationalSecurities (Hong Kong) Co.,Limited||27,992,212|||||||
|||||||Domestically listed foreign|||
|||||||||27,992,212|
|||||||shares|||
|China Merchants Securities (HK)||22,817,998||||Domestically listed foreign||22,817,998|

CSG Semi-annual Report 2017
|||||
|-|-|-|-|
|Co., Limited||shares||
|Shenzhen International Holdings (SZ)Limited|20,000,000|||
|||RMB ordinary shares|20,000,000|
|BBH A/C VANGUARDEMERGING MARKETS STOCKINDEX FUND|13,280,792|||
|||Domestically listed foreign||
||||13,280,792|
|||shares||
||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|||
|Statement on associated relationship|related legal person of Foresea Life Insurance Co., Ltd. and Chengtai Group Co., Ltd., another|||
|or consistent action among the|related legal person of Foresea Life Insurance Co., Ltd, which held 27,625,299 shares via|||
|above shareholders:|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 business (if|N/A|||
|applicable)||||

Whether the top ten shareholders or top ten shareholders with un-restrict 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 un-restrict shares held in the report period.
IV. 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.
CSG Semi-annual Report 2017 Section VII. Particulars about Directors, Supervisors, Senior Executives and Employees
I. Changes of shares held by directors, supervisors and senior executives
√ Applicable□ Not applicable
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Number of|||||The number||
|||||Number of||Number of||||
||||shares held||Number of||The number of|of restricted|The number of|
|||||shares held||shares held||||
||||at the||shares in||restricted shares|shares|restricted|
|||Working||by the||at the end||||
||Title||beginning||the current||granted at the|granted in|shares granted|
|Name||status||current||of the||||
||||of the||period||beginning of the|the current|in the current|
|||||period||period||||
||||period||(shares)||period (shares)|period|period (shares)|
|||||(shares)||(shares)||||
||||(shares)|||||(shares)||
||Chairman of|Currently||||||||
|Chen Lin||||||||||
||the Board,|in office||||||||
|Jin|Independent|Currently||||||||
|Qingjun|Director|in office||||||||
|Zhan|Independent|Currently||||||||
|Weizai|Director|in office||||||||
|Zhu|Independent|Currently||||||||
|Guilong|Director|in office||||||||
|||Currently||||||||
|Wang Jian|Director|||||||||
|||in office||||||||
|Zhang||Currently||||||||
||Director|||||||||
|Jinshun||in office||||||||
|Ye||Currently||||||||
||Director|||||||||
|Weiqing||in office||||||||
|Cheng||Currently||||||||
||Director|||||||||
|Xibao||in office||||||||
|Pan|Director|Currently||||||||
|Yonghong|/CEO|in office||||||||
||Chairman of|||||||||
|Zhang||Currently||||||||
||the board of|||||||||
|Wandong||in office||||||||
||supervisors|||||||||
|||Currently||||||||
|Li Xinjun|Supervisor|||||||||
|||in office||||||||
|||Currently||||||||
|Zhao Peng|Supervisor||2,500|||2,500||||
|||in office||||||||
|Lu Wenhui|Executive|Currently||||||||

CSG Semi-annual Report 2017
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Vice|in office||||||||
||President|||||||||
||Vice|Currently||||||||
|Li Weinan|||300,000|||300,000||||
||president|in office||||||||
|Yang|Secretary of|Currently||||||||
|Xinyu|the Board|in office||||||||
||Independent|Post||||||||
|Fu Qilin||||||||||
||Director|leaving||||||||
||Chairman of|||||||||
|||Post||||||||
|Long Long|the board of|||||||||
|||leaving||||||||
||supervisors|||||||||
|Hong||Post||||||||
||Supervisor|||||||||
|Guo’an||leaving||||||||
|Yan||Post||||||||
||Supervisor||0|20,000||20,000||||
|Wendou||leaving||||||||
|Total|--|--|302,500|20,000|0|322,500|0|0|0|

 II. Changes of directors, supervisors and senior executives
√ Applicable□ Not applicable
||||||
|-|-|-|-|-|
|Name|Title|Type|Date|Reason|
|Zhu Guilong|Independent Director|Be elected|May 02, 2017|Re-election of the board|
|||||Senior management employed by the Board of|
|Pan Yonghong|Director /CEO|Be employed|February 23, 2017||
|||||Directors|
|Zhang Wandong|Supervisor|Be elected|January 13, 2017|By-election of supervisor|
|Li Xinjun|Supervisor|Be elected|January 13, 2017|By-election of supervisor|
|Zhao Peng|Supervisor|Be elected|January 11, 2017|Election of employee supervisor|
|||||Senior management employed by the Board of|
|Lu Wenhui|Executive Vice President|Be employed|February 23, 2017||
|||||Directors|
|||||Senior management employed by the Board of|
|Li Weinan|Vice president|Be employed|February 23, 2017||
|||||Directors|
||Secretary of the Board|||Senior management employed by the Board of|
|Yang Xinyu||Be employed|May 02, 2017||
|||||Directors|
|Fu Qilin|Independent Director|Post leaving|May 02, 2017|Post leaving at the expiration of term|
||Chairman of the board of||||
|Long Long||Post leaving|January 13, 2017|Resigned|
||supervisors||||
|Hong Guo’an|Supervisor|Post leaving|January 13, 2017|Resigned|
|Yan Wendou|Supervisor|Post leaving|January 11, 2017|Resigned|

CSG Semi-annual Report 2017 Section VIII. Corporate Bonds
Whether the Company had corporate bonds publicly issued and listed on the stock exchange whichhadn’t matured or fully paid until the approval day of the semi-annual report
Yes
I. The basic information of corporate bonds
|||||||||
|-|-|-|-|-|-|-|-|
||Short|Bond||Maturity|Bond balance|Interest|Way of repayment of principal and|
|Name|||Issue date|||||
||name|code||date|(RMB 0,000)|rate|interest|
||||||||Using simple interest year - on - year, non|
||||||||- compound interest, the interest is paid|
|Corporate bond|10 CSG|||||||
|||112022|2010-10-20|2017-10-20|100,000|5.33%|once a year and the principal is paid at a|
|in 2010 of CSG|02|||||||
||||||||time once due, and the final interest is|
||||||||paid together with the principal.|
|Corporate bond listing or||||||||
|||Shenzhen Stock Exchange||||||
|transfer trading place||||||||
|Appropriate arrangements||Corporate bond "10 CSG 02" established the sell-back option for investors, which was completed in||||||
|for investors||2015.||||||
|Interest payment and||||||||
|encashment of corporate||||||||
|||Pay in full and on time||||||
|bonds during the reporting||||||||
|period||||||||
|Implementation of the||||||||
|special provisions||||||||
|including option and||||||||
|exchangeable terms of||||||||
|issuers or investors||||||||
|||N/A||||||
|attached to corporate||||||||
|bonds and the relevant||||||||
|provisions during the||||||||
|report period (if||||||||
|applicable)||||||||

II. Informantion of bond trustee and credit rating institution
|||||||||
|-|-|-|-|-|-|-|-|
|Bond trustee:||||||||
||China Merchants||38-45 floor, Ablock, Jiangsu Building,|Contact|Nie|||
|Name||Office adds.||||Tel.|0755-82960984|
||Securities Co., Ltd.||Yitian Road, Futian District, Shenzhen|person|Dongyun|||

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Credit rating institution which tracks rating corporate bonds in the report period:|||||
|Name|CCXR|Office adds.|8 floor, Anji Building, 760 Tibet South Road, Huangpu District, Shanghai||
|If bond trustee and credit rating institution engaged by the Company changed in the report period, explain|||||
|the reason of the change, performance of the procedure, and the impact on the interest of investors etc. (if||||Not applicable|
|applicable)|||||

III. The use of fund raised by corporate bonds
|||
|-|-|
|The use of fund raised by corporate bonds and performance of the|The raised fund is in strict accordance with the relevant|
|procedure|provisions.|
|Balance at the end of year|0|
||The operation of the special account for raised fund is|
|The operation of the special account for raised fund|strictly accordance with the relevant provisions of|
||prospectus commitment.|
|Whether the use of raised fund is consistent with the purpose, plan of use||
||Consistent|
|and other agreements of prospectus commitment||

IV. Information of the rating of corporation bonds
According to track rating of China Chengxin Securities Rating Co., Ltd. (Abbreviation “CCXR”) in 2015, the Company's subject credit rating is AA+, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA+.
On May 27, 2017, China Chengxin Securities Rating Co., Ltd. carried out a follow-up rating on corporate bondsCSG’s 2010 Corporate Bond issued by the Company. InCSG’s 2010 corporate bond tracking rating report (2017), the Company's subject credit rating is AA+, rating outlook is stable, and the bonds credit rating of the current period is evaluated as AA+.
For details, please refer toCSG’s 2010 corporate bond tracking rating report (2017) which was released on Juchao website (www.cninfo.com.cn) on June 1, 2017.
V. Trust mechanism, debt repayment plans and other debt repayment safeguards of corporation bonds
During the report period, the trust mechanism, debt repayment plans and other debt repayment safeguards have not been changed which are the same as the relevant commitments of raising instruction manual, the relevant implementations are as follows: I. Debt repayment plan
The Company established the annual and monthly plan for application of funds based on the payment arrangement for coming due principal and interest of the corporation bonds, reasonably managed and allocated the funds so as to make sure the due principal and interest be paid in time. The capital sources for paying the corporation bonds in the report period were mainly the cash flow generated by theCompany’s operating activities and the bank loans.
In 2016, the Company paid the interest of corporation bond "10 CSG 02" on time.
II. Repayment safeguards for theCompany’s bonds
In order to fully and effectively maintained the interests of the bondholders, the Company has made a series plans for the timely and
sufficient repayment for bonds in the report period, including confirming the specialized departments and personnel, arranging the
CSG Semi-annual Report 2017 funds for repayment, establishing the management measures, achieving the organization coordination, and strengthening information disclosure so as to form a set of safeguards to ensure the security payment of bond.
(I) Establish the "Bondholders' Meeting Rules"
The Company has established the "Bondholders' Meeting Rules" for the corporation bonds in accordance with the "Pilot Approach for the Issuance of Corporation Bonds", appointed the range, procedures and other important matters for bondholders to exercise rights by bondholders' meeting and made reasonable institutional arrangements to ensure the principal and interest of the corporation bonds be paid timely and sufficiently.
(II) Engage bond trustee
The Company has engaged China Merchants Securities Co., Ltd. as the trustee for the corporation bonds in accordance with the "Pilot Approach for the Issuance of Corporation Bonds", and signed the "Bond Trusteeship Agreement". In the duration of the corporation bonds, the bond trustee will maintain the interests of theCompany’s bondholders according to the agreement.
(III) Establish the specialized reimbursement working group and set up special account for debt repayment
The Company used the funds raised from the bond strictly in accordance with the "Financial Management System" and "Financial Funds Management Approach". The Company has appointed the financial department to take the lead and take charge of the repayment of corporation bonds, implement and arrange the repayment funds for principal and interest of corporation bonds in the annual financial budget so as to ensure the principal and interest be paid on time and guarantee the interests of bondholders. Within 15 working days before the annual interest pay day and annual principal pay day of corporation bonds, the Company specially establishes a working group of which the members are composed of personnel from the company's financial management department to take charge of the repayment of interests and other relevant work. The Company guarantees the funds for payment of interest will be sent to the special repayment account three days before the annual interest payment and the funds for cashing principle will be sent to the special repayment account one week before the due date of corporation bonds, the special repayment account will pay both the principle and interest.
(IV) Improve profitability, strengthen funds management, and optimize debt structure
The Company has a rigorous financial system and a normative management system, account receivable turnover and inventory turnover are in good status, theCompany’s financial policies are steady, and the structure of assets and liabilities is reasonable. The Company will continue its efforts to enhance the profitability of main business and the market competitiveness of products so as to improve the Company 's return on assets; the Company also will continue to strengthen the management of accounts receivable and inventory so as to improve accounts receivable turnover and inventory turnover, and thereby enhance the Company 's ability to obtain cash.
(V) Strict information disclosure
The Company follows the principle of truly, accurately and completely disclosing information so that theCompany’s debt paying ability and use of proceeds can be under the supervision of the bondholders, bond trustee and shareholders to prevent debt repayment risk.
(VI) Other safeguards
When the Company cannot pay interest and principal on time or has other breach of contracts, the Company will at least take following measures:
1. Do not distribute profits to shareholders.
2. Postpone the implementation of capital expenditure projects such as major foreign investment, mergers and acquisitions.
CSG Semi-annual Report 2017 VI. Information about the bond-holder meeting during the reporting period
There was no bond-holder meeting convened in the report period.
VII. Information about the obligations fulfilled by the bond trustee in the report period Bond trustee perform their duties as the agreement during the report period.
The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2015)" prepared by China Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on April 20, 2016.
The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared by China Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on June 29, 2016.
The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Interim Report on Major Matters" prepared by China Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on November 22, 2016.
The Company disclosed the "2010 Annual Corporate Bonds Trusteeship Transaction Report (2016)" prepared by China Merchants Securities Co., Ltd. at Juchao website (http//www.cninfo.com.cn) on May 18, 2017.
Investors are welcomed to refer to the above reports.
VIII. The Company's main accounting data and financial indicators as of the end of the report period and the end of the previous year (or the report period and the same period of last year)
RMB 0,000
|||||
|-|-|-|-|
||||Increase/decrease in this|
|Item|End of this period|End of last year|period-end over that of last|
||||year-end (%)|
|Flow ratio|49%|36%|13%|
|Assets liabilities ratio|53%|52%|1%|
|Speed ratio|39%|29%|10%|
||The report period (Jan. to||Increase/decrease year-on-year|
|||The same period of last year||
||Jun.2017)||(%)|
|Interest coverage ratio of||||
||7.15|8.21|-12.91%|
|EBITDA||||
|Loan repayment ratio|100%|100%|0%|
|interest coverage ratio|100%|100%|0%|

 The main reason of the above main accounting data and financial indicators changed more than30% y-o-y
□Applicable√ Not applicable
IX. Company overdue debts
□Applicable√ Not applicable
The Companydidn’t have overdue debts.
CSG Semi-annual Report 2017 X. Payment of principle and interest for other bonds and debt financing instruments during the report period
1. On February 13, 2017, the Company completed the repayment of the second batch of ultra-short- term financing bills of 2016 with total amount of RMB 0.9 billion and annual rate of4.18%, which were issued on May 19, 2016.
2. On May 1, 2017, the Company completed the repayment of the third batch of ultra-short- term financing bills of 2016 with total amount of RMB 0.6 billion and annual rate of3.67%, which were issued on August 4, 2016.
3. On June 2, 2017, the Company completed the repayment of the fourth batch of ultra-short- term financing bills of 2016 with total amount of RMB 0.5 billion and annual rate of3.50%, which were issued on September 5, 2016.
XI. Information about of bank credit and use, as well as repayment of bank loans during the report period
In the report period, the Company gained bank credit of RMB 7,040.4 million and use quota of RMB 3,116.34 million and repaid loans of RMB 926.10 million.
XII. Information about fulfillment of the stipulations or commitments specified in the Prospectus of the issuance of the bonds during the report period
Not applicable
XIII. Major matters occurring during the report period
Other major matters please refer to note sixteen “Explanation on other major matters ” in the fifth section “Important Events” in this report.
XIV.Whether there is a guarantor of corporate bonds
□ Yes√ No
CSG Semi-annual Report 2017 Section IX. Financial Report
(I)Auditors’ Report
Whether the Semi-annual Report has been audited or not
□ Yes√ No
The Semi-annual Report of the Company has not been 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
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|934,235,201|586,803,505|
|Settlement provision|||
|Outgoing call loan|||
|Financial assets measured at fair value with variations|||
|accounted into current income account|||
|Derivative financial assets|||
|Notes receivable|536,557,203|456,347,237|
|Account receivable|679,943,915|627,985,983|
|Prepayment|162,247,377|95,733,132|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|33,559,090|33,229,149|
|Repurchasing of financial assets|||
|Inventories|630,593,776|477,780,925|
|Assets held for sales|||
|Non-current asset due in 1 year|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|Other current asset|249,369,319|199,905,577|
|Total of current asset|3,226,505,881|2,477,785,508|
|Non-current assets|||
|Loans and payment on other’s behalf disbursed|||
|Available-for-sale financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|||
|Investment real estates|||
|Fixed assets|11,773,502,135|11,457,972,991|
|Construction in process|1,259,425,371|1,362,096,377|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,021,669,447|1,032,458,977|
|R&D expense|76,049,471|66,927,714|
|Goodwill|397,392,156|397,392,156|
|Long-term amortizable expenses|9,693,102|975,660|
|Differed income tax asset|84,697,210|96,451,854|
|Other non-current asset|81,346,840|87,174,393|
|Total of non-current assets|14,703,775,732|14,501,450,122|
|Total of assets|17,930,281,613|16,979,235,630|
|Current liabilities|||
|Short-term loans|2,399,694,000|4,017,869,662|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Financial liabilities measured at fair value with|||
|variations accounted into|||
|Derivative financial liabilities|||
|Notes payable|114,500,000|20,000,000|
|Account payable|1,382,500,478|1,169,869,370|
|Prepayment received|201,549,137|142,330,979|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|173,186,321|193,372,239|
|Tax payable|87,961,271|115,592,616|
|Interest payable|98,184,696|78,225,904|
|Dividend payable|207,533,556||
|Other account payable|844,823,887|188,321,450|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Liabilities held for sales|||
|Non-current liability due in 1 year|1,101,203,702|1,029,340,000|
|Other current liability|300,000|300,000|
|Total of current liability|6,611,437,048|6,955,222,220|
|Non-current liabilities|||
|Long-term borrowings|1,624,000,000|1,438,660,000|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|838,871,670||
|Long-term payable employees’s remuneration|||
|Special payable|||
|Anticipated liabilities|||
|Differed income|420,880,301|422,993,254|
|Differed income tax liability|24,164,221|29,749,137|
|Other non-recurring liabilities|||
|Total of non-current liabilities|2,907,916,192|1,891,402,391|
|Total of liability|9,519,353,240|8,846,624,611|
|Owners’ equity|||
|Share capital|2,075,335,560|2,075,335,560|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|Capital reserves|1,349,953,977|1,260,702,197|
|Less: Shares in stock|||
|Other comprehensive income|3,577,707|4,653,971|
|Special reserves|3,233,660|5,843,473|
|Surplus reserves|888,850,230|888,850,230|
|Common risk provision|||
|Undistributed profit|3,762,408,180|3,576,949,573|
|Total of owner’s equity belong to the parent company|8,083,359,314|7,812,335,004|
|Minor shareholders’ equity|327,569,059|320,276,015|
|Total of owners’ equity|8,410,928,373|8,132,611,019|
|Total of liability and owners’ equity|17,930,281,613|16,979,235,630|

 LegalRepresentative：Chen Lin CFO：Pan Yonghong Manager of the financialdepartment：Wang Wenxin 2. Balance Sheet of the Parent Company
Unit: RMB
||||
|-|-|-|
|Item|Ending balance|Beginning balance|
|Current asset:|||
|Monetary capital|559,161,574|302,841,481|
|Financial assets measured at fair value with variations|||
|accounted into current income account|||
|Derivative financial assets|||
|Notes receivable|||
|Account receivable|||
|Prepayment|1,750,000|16,880|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|3,416,514,546|3,863,121,029|
|Inventories|||
|Assets held for sales|||
|Non-current asset due in 1 year|||
|Other current asset|||
|Total of current asset|3,977,426,120|4,165,979,390|
|Non-current assets|||
|Available-for-sale financial asset|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|Expired investment in possess|||
|Long-term receivable|2,003,645,000|2,003,645,000|
|Long-term share equity investment|4,790,440,632|4,790,440,632|
|Investment real estates|||
|Fixed assets|23,798,714|26,073,848|
|Construction in process|||
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|1,167,664|1,393,454|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|||
|Differed income tax asset|||
|Other non-current asset|||
|Total of non-current assets|6,819,052,010|6,821,552,934|
|Total of assets|10,796,478,130|10,987,532,324|
|Current liabilities|||
|Short-term loans|1,690,000,000|3,495,163,044|
|Financial liabilities measured at fair value with|||
|variations accounted into|||
|Derivative financial liabilities|||
|Notes payable|||
|Account payable|34,528|317,874|
|Prepayment received|||
|Employees’ wage payable|42,237,698|18,380,010|
|Tax payable|1,019,727|1,804,568|
|Interest payable|8,767,301|3,794,646|
|Dividend payable|207,533,556||
|Other account payable|1,151,107,561|240,593,894|
|Liabilities held for sales|||
|Non-current liability due in 1 year|1,000,000,000|1,000,000,000|
|Other current liability|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|Total of current liability|4,100,700,371|4,760,054,036|
|Non-current liabilities|||
|Long-term borrowings|1,380,000,000|1,380,000,000|
|Bond payable|||
|Including：preferred stock|||
|Sustainable debt|||
|Long-term payable|649,823,518||
|Long-term payable employees’s remuneration|||
|Special payable|||
|Anticipated liabilities|||
|Differed income|16,280,660|12,035,040|
|Differed income tax liability|||
|Other non-recurring liabilities|||
|Total of non-current liabilities|2,046,104,178|1,392,035,040|
|Total of liability|6,146,804,549|6,152,089,076|
|Owners’ equity|||
|Share capital|2,075,335,560|2,075,335,560|
|Other equity instruments|||
|Including：preferred stock|||
|Sustainable debt|||
|Capital reserves|1,494,670,923|1,405,529,511|
|Less: Shares in stock|||
|Other comprehensive income|||
|Special reserves|||
|Surplus reserves|903,395,590|903,395,590|
|Undistributed profit|176,271,508|451,182,587|
|Total of owners’ equity|4,649,673,581|4,835,443,248|
|Total of liability and owners’ equity|10,796,478,130|10,987,532,324|

 3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Total revenue|4,944,337,861|4,228,165,642|
|Incl. Business income|4,944,337,861|4,228,165,642|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|4,502,642,030|3,720,133,533|
|Incl. Business cost|3,737,514,462|3,076,818,503|
|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 surcharge|61,745,775|33,485,783|
|Sales expense|156,344,731|128,564,831|
|Administrative expense|402,554,340|348,836,395|
|Financial expenses|143,374,027|133,353,393|
|Asset impairment loss|1,108,695|-925,372|
|Plus: gains from change of fair value (“-“for loss)|||
|Investment gains (“-“ for loss)||-14,264,359|
|Incl. Investment gains from affiliates||-14,264,359|
|Exchange gains (“-“ for loss)|||
|Other gains|23,674,234||
|III. Operational profit (“-“ for loss)|465,370,065|493,767,750|
|Plus: non-operational income|16,029,596|50,038,364|
|Incl. Income from disposal of non-current assets|57,734|248,642|
|Less: non-operational expenditure|732,592|661,628|
|Incl. Loss from disposal of non-current assets|129,490|19,984|
|IV. Gross profit (“-“ for loss)|480,667,069|543,144,486|
|Less: Income tax expenses|80,453,021|77,843,164|
|V. Net profit (“-“ for net loss)|400,214,048|465,301,322|
|Net profit attributable to the owners of parent|||
||392,992,163|466,883,254|
|company|||
|Minor shareholders’ equity|7,221,885|-1,581,932|
|VI. Net amount of other gains after tax|-1,076,264|508,053|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Net amount of other gains after tax attributable to|||
||-1,076,264|508,053|
|owners of parent company|||
|(I) Other comprehensive income that will not be|||
|reclassified into gains/losses afterward|||
|1. Change of net liability or asset of beneficiary plan|||
|from recalculating|||
|2. The share of comprehensive income in invested|||
|entities under equity method which can not be|||
|reclassified into profit or loss|||
|(II) Other comprehensive income items that will be|||
|reclassified into gains/losses in the subsequent|-1,076,264|508,053|
|accounting period|||
|1. The share of comprehensive income in invested|||
|entities under equity method which can be|||
|reclassified into profit or loss afterward|||
|2.Gains and losses from changes in fair value|||
|available for sale financial assets|||
|3.Held-to-maturity investments reclassified to gains|||
|and losses of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial|||
||-1,076,264|508,053|
|statements|||
|6.Other|||
|Net of profit of other comprehensive income|||
|attributable to Minority shareholders’ equity|||
|VII. Total of misc. incomes|399,137,784|465,809,375|
|Total of misc. incomes attributable to the owners of|||
||391,915,899|467,391,307|
|the parent company|||
|Total misc gains attributable to the minor|||
||7,221,885|-1,581,932|
|shareholders|||
|VIII. Earnings per share:|||
|(I) Basic earnings per share|0.19|0.22|
|(II) Diluted earnings per share|0.19|0.22|

 LegalRepresentative：Chen Lin CFO：Pan Yonghong Manager of the financialdepartment：Wang Wenxin
4. Income Statement of the Parent Co.
Unit: RMB
CSG Semi-annual Report 2017
||||
|-|-|-|
|Items|Balance of this period|Balance of last period|
|I. Revenue|27,295,266|1,077,394|
|Less:business cost|0|60,334|
|Tax and surcharge|5,136,944|94,720|
|Sales expense|||
|Administrative expense|70,540,224|61,812,557|
|Financial expenses|19,800,295|11,263,822|
|Asset impairment loss|7,706|-1,770,242|
|Plus: gains from change of fair value (“-“for loss)|||
|Investment gains (“-“ for loss)||399,280,607|
|Incl. Investment gains from affiliates||9,850,045|
|Other gains|18,000||
|II. Operational profit (“-“ for loss)|-68,171,903|328,896,810|
|Plus: non-operational income|794,380|766,180|
|Incl. Income from disposal of non-current assets||1,800|
|Less: non-operational expenditure|||
|Incl. Loss from disposal of non-current assets|||
|III. Gross profit (“-“ for loss)|-67,377,523|329,662,990|
|Less: Income tax expenses|0|-45,852|
|IV. Net profit (“-“ for net loss)|-67,377,523|329,708,842|
|V. Net amount of other gains after tax|||
|(I) Other comprehensive income that will not be|||
|reclassified into gains/losses afterward|||
|1. Change of net liability or asset of beneficiary plan|||
|from recalculating|||
|2. The share of comprehensive income in invested|||
|entities under equity method which can not be|||
|reclassified into profit or loss|||
|(II) Other comprehensive income items that will be|||
|reclassified into gains/losses in the subsequent|||
|accounting period|||
|1. The share of comprehensive income in invested|||
|entities under equity method which can be|||
|reclassified into profit or loss afterward|||
|2.Gains and losses from changes in fair value|||
|available for sale financial assets|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|3.Held-to-maturity investments reclassified to gains|||
|and losses of available for sale financial assets|||
|4.The effective portion of cash flow hedges and losses|||
|5.Translation differences in currency financial|||
|statements|||
|6.Other|||
|VI. Total of misc. incomes|-67,377,523|329,708,842|
|VII. Earnings per share:|||
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||

5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|Balance of this period|Balance of last period|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of|||
||5,472,732,654|4,822,965,397|
|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|7,273,335|35,363,638|
|Other cash received from business operation|68,210,702|46,108,936|
|Sub-total of cash inflow from business activities|5,548,216,691|4,904,437,971|
|Cash paid for purchasing of merchandise and services|3,278,955,888|2,769,544,694|

CSG Semi-annual Report 2017
||||
|-|-|-|
|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|617,464,364|529,127,685|
|Taxes paid|380,644,776|336,130,323|
|Other cash paid for business activities|251,262,209|222,914,920|
|Sub-total of cash outflow from business activities|4,528,327,237|3,857,717,622|
|Cash flow generated by business operation, net|1,019,889,454|1,046,720,349|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit|||
|Net cash retrieved from disposal of fixed assets,|||
||44,820|617,985|
|intangible assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or|||
|other operational units|||
|Other investment-related cash received|24,039,200|29,699,884|
|Sub-total of cash inflow due to investment activities|24,084,020|30,317,869|
|Cash paid for construction of fixed assets, intangible|||
||731,954,148|472,503,623|
|assets and other long-term assets|||
|Cash paid as investment||4,250,000|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other|||
|||507,974,099|
|operational units|||
|Other cash paid for investment activities|31,475,182|21,764,586|
|Sub-total of cash outflow due to investment activities|763,429,330|1,006,492,308|
|Net cash flow generated by investment|-739,345,310|-976,174,439|
|III. Cash flow generated by financing|||
|Cash received as investment||5,500,000|
|Incl. Cash received as investment from minor|||
|||5,500,000|
|shareholders|||
|Cash received as loans|1,452,919,750|4,443,422,252|
|Cash received from bond placing|||
|Other financing-related cash received|1,666,591,530|100,725,978|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Subtotal of cash inflow from financing activities|3,119,511,280|4,549,648,230|
|Cash to repay debts|2,924,757,768|3,988,397,915|
|Cash paid as dividend, profit, or interests|123,450,004|693,264,874|
|Incl. Dividend and profit paid by subsidiaries to|||
|minor shareholders|||
|Other cash paid for financing activities|3,451,507|109,125,965|
|Subtotal of cash outflow due to financing activities|3,051,659,279|4,790,788,754|
|Net cash flow generated by financing|67,852,001|-241,140,524|
|IV. Influence of exchange rate alternation on cash and|||
||-912,613|559,892|
|cash equivalents|||
|V. Net increase of cash and cash equivalents|347,483,532|-170,034,722|
|Plus: Balance of cash and cash equivalents at the|||
||584,566,990|574,744,877|
|beginning of term|||
|VI. Balance of cash and cash equivalents at the end of|||
||932,050,522|404,710,155|
|term|||

6. Cash Flow Statement of the Parent Co.
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|4,843,988|2,616,039|
|Sub-total of cash inflow from business activities|4,843,988|2,616,039|
|Cash paid for purchasing of merchandise and services|||
|Cash paid to staffs or paid for staffs|33,652,141|62,007,982|
|Taxes paid|6,095,316|39,306,033|
|Other cash paid for business activities|12,279,684|6,551,752|
|Sub-total of cash outflow from business activities|52,027,141|107,865,767|
|Cash flow generated by business operation, net|-47,183,153|-105,249,728|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit||389,430,562|
|Net cash retrieved from disposal of fixed assets,||1,800|

CSG Semi-annual Report 2017
||||
|-|-|-|
|intangible assets, and other long-term assets|||
|Net cash received from disposal of subsidiaries or|||
|other operational units|||
|Other investment-related cash received|5,000,000|3,000,000|
|Sub-total of cash inflow due to investment activities|5,000,000|392,432,362|
|Cash paid for construction of fixed assets, intangible|||
||565,260|117,326|
|assets and other long-term assets|||
|Cash paid as investment||175,755,000|
|Net cash received from subsidiaries and other|||
|||464,345,956|
|operational units|||
|Other cash paid for investment activities|||
|Sub-total of cash outflow due to investment activities|565,260|640,218,282|
|Net cash flow generated by investment|4,434,740|-247,785,920|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|990,693,638|4,110,000,600|
|Cash received from bond placing|||
|Other financing-related cash received|1,806,455,260|326,432,420|
|Subtotal of cash inflow from financing activities|2,797,148,898|4,436,433,020|
|Cash to repay debts|2,496,723,365|3,608,000,600|
|Cash paid as dividend, profit, or interests|2,213,425|662,199,041|
|Other cash paid for financing activities|||
|Subtotal of cash outflow due to financing activities|2,498,936,790|4,270,199,641|
|Net cash flow generated by financing|298,212,108|166,233,379|
|IV. Influence of exchange rate alternation on cash and|||
||855,016|-2,568,311|
|cash equivalents|||
|V. Net increase of cash and cash equivalents|256,318,711|-189,370,580|
|Plus: Balance of cash and cash equivalents at the|||
||301,637,933|394,606,753|
|beginning of term|||
|VI. Balance of cash and cash equivalents at the end of|||
||557,956,644|205,236,173|
|term|||

CSG Semi-annual Report 2017 7. Statement of Change inOwners’ Equity (Consolidated)
Amount of the Current Term
RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||Other equity instruments||||||||||Minority||
|Items|||Perpetua|||Less:|Other|||Common||shareholders’|Total of owners’|
||||||Capital|||Special|Surplus||Retained|||
||Share capital|Preferre|l capital|||treasury|comprehensi|||risk||Total of|equity|
|||||Others|reserve|||reserves|reserves||profit|||
|||d share|securitie|||stock|ve income|||provision||owners’ equity||
||||s|||||||||||
|I. Balance at the end||||||||||||||
|of the previous|2,075,335,560||||1,260,702,197||4,653,971|5,843,473|888,850,230||3,576,949,573|320,276,015|8,132,611,019|
|year||||||||||||||
|Plus: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of errors in||||||||||||||
|previous periods||||||||||||||
|Business combination||||||||||||||
|under the same control||||||||||||||
|Others||||||||||||||
|II. Balance at the||||||||||||||
|beginning of current|2,075,335,560||||1,260,702,197||4,653,971|5,843,473|888,850,230||3,576,949,573|320,276,015|8,132,611,019|
|year||||||||||||||
|III. Amount of change|||||89,251,780||-1,076,264|-2,609,813|||185,458,607|7,293,044|278,317,354|
|in current term||||||||||||||

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|(“-“ for decrease)||||||
|(I) Total amount of the||||||
|comprehensive||-1,076,264|392,992,163|7,221,885|399,137,784|
|income||||||
|(II) Capital paid in and||||||
||89,251,780|||71,159|89,322,939|
|reduced by owners||||||
|1. Common shares||||||
|invested by the||||||
|shareholders||||||
|2. Capital invested by||||||
|the owners of other||||||
|equity instruments||||||
|3. Amounts of||||||
|share-based payments||||||
||110,368|||71,159|181,527|
|recognized in owners’||||||
|equity||||||
|4. Others|89,141,412||||89,141,412|
|(III) Profit distribution|||-207,533,556||-207,533,556|
|1. Appropriations to||||||
|surplus reserves||||||
|2. Appropriations to||||||
|general risk||||||
|provisions||||||
|3. Appropriations to||||||
|owners (or|||-207,533,556||-207,533,556|
|shareholders)||||||
|4. Others||||||

CSG Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|(IV) Internal|||||||||
|carry-forward of|||||||||
|owners’ equity|||||||||
|1. New increase of|||||||||
|capital (or share|||||||||
|capital ) from capital|||||||||
|public reserves|||||||||
|2. New increase of|||||||||
|capital (or share|||||||||
|capital) from surplus|||||||||
|reserves|||||||||
|3. Surplus reserves for|||||||||
|making up losses|||||||||
|4. Others|||||||||
|(V) Specific reserve||||-2,609,813||||-2,609,813|
|1. Withdrawn for the|||||||||
|||||3,922,869||||3,922,869|
|period|||||||||
|2. Used in the period||||6,532,682||||6,532,682|
|(VI) Others|||||||||
|IV. Balance at the end||||||||8,410,928,373|
||2,075,335,560|1,349,953,977|3,577,707|3,233,660|888,850,230|3,762,408,180|327,569,059||
|of this term|||||||||

CSG Semi-annual Report 2017 Amount of Last Year
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the same period of last year|||||||||||||
||Owners’ Equity Attributable to the Parent Company|||||||||||||
|||||||||||||Minority||
|||Other equity instruments||||||||Commo||||
|Items||||||Less:|Other|||||shareholders’|Total of owners’|
|||Preferr|Perpetual||Capital|||Special|Surplus|n risk||||
||Share capital|||||treasury|comprehensi||||Retained profit|Total of|equity|
|||ed|capital|Others|reserve|||reserves|reserves|provisio||||
|||||||stock|ve income|||||owners’ equity||
|||share|securities|||||||n||||
|I. Balance at the end||||||||||||||
|of the previous|2,075,335,560||||1,261,391,272||2,967,772|15,437,498|859,122,330||3,431,556,565|3,080,480|7,648,891,477|
|year||||||||||||||
|Plus: change of||||||||||||||
|accounting policy||||||||||||||
|Correction of errors in||||||||||||||
|previous periods||||||||||||||
|Business combination||||||||||||||
|under the same control||||||||||||||
|Others||||||||||||||
|II. Balance at the||||||||||||||
|beginning of current|2,075,335,560||||1,261,391,272||2,967,772|15,437,498|859,122,330||3,431,556,565|3,080,480|7,648,891,477|
|year||||||||||||||
|III. Amount of change||||||||||||||
||||||-689,075||1,686,199|-9,594,025|29,727,900||145,393,008|317,195,535|483,719,542|
|in current term||||||||||||||
|(“-“ for decrease)||||||||||||||
|(I) Total amount of the|||||||1,686,199||||797,721,576|6,504,948|805,912,723|

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|comprehensive||||||
|income||||||
|(II) Capital paid in and||||||
||402,262|||313,771,067|314,173,329|
|reduced by owners||||||
|1. Common shares||||||
|invested by the||||313,628,750|313,628,750|
|shareholders||||||
|2. Capital invested by||||||
|the owners of other||||||
|equity instruments||||||
|3. Amounts of||||||
|share-based payments||||||
||402,262|||142,317|544,579|
|recognized in owners’||||||
|equity||||||
|4. Others||||||
|(III) Profit distribution||29,727,900|-652,328,568||-622,600,668|
|1. Appropriations to||||||
|||29,727,900|-29,727,900|||
|surplus reserves||||||
|2. Appropriations to||||||
|general risk||||||
|provisions||||||
|3. Appropriations to||||||
|owners (or|||-622,600,668||-622,600,668|
|shareholders)||||||
|4. Others||||||
|(IV) Internal||||||
|carry-forward of||||||

CSG Semi-annual Report 2017
||||||||||
|-|-|-|-|-|-|-|-|-|
|owners’ equity|||||||||
|1. New increase of|||||||||
|capital (or share|||||||||
|capital ) from capital|||||||||
|public reserves|||||||||
|2. New increase of|||||||||
|capital (or share|||||||||
|capital) from surplus|||||||||
|reserves|||||||||
|3. Surplus reserves for|||||||||
|making up losses|||||||||
|4. Others|||||||||
|(V) Specific reserve||||-9,594,025||||-9,594,025|
|1. Withdrawn for the|||||||||
|||||6,930,650||||6,930,650|
|period|||||||||
|2. Used in the period||||16,524,675||||16,524,675|
|(VI) Others||-1,091,337|||||-3,080,480|-4,171,817|
|IV. Balance at the end||||||||8,132,611,019|
||2,075,335,560|1,260,702,197|4,653,971|5,843,473|888,850,230|3,576,949,573|320,276,015||
|of this term|||||||||

CSG Semi-annual Report 2017 8. Statement of Change inOwners’ Equity (Parent Co.)
Amount of the Current Term
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term|||||||||||
|||Other equity instruments||||||||||
|||||||Less:|Other|||||
|Items|||Perpetual||Capital|||Special|Surplus|Retained|Total of owners’|
||Share capital|Preferred||||treasury|comprehensive|||||
||||capital|Others|reserve|||reserves|reserves|profit|equity|
|||share||||stock|income|||||
||||securities|||||||||
|I. Balance at the end of the previous|2,075,335,560||||1,405,529,511||||903,395,590|451,182,587|4,835,443,248|
|Plus: change of accounting policy||||||||||||
|Correction of errors in previous||||||||||||
|periods||||||||||||
|Others||||||||||||
|II. Balance at the beginning of current||||||||||||
||2,075,335,560||||1,405,529,511||||903,395,590|451,182,587|4,835,443,248|
|year||||||||||||
|III. Amount of change in current term||||||||||||
||||||89,141,412|||||-274,911,079|-185,769,667|
|(“-“ for decrease)||||||||||||
|(I) Total amount of the comprehensive||||||||||||
|||||||||||-67,377,523|-67,377,523|
|income||||||||||||
|(II) Capital paid in and reduced by||||||||||||
||||||89,141,412||||||89,141,412|
|owners||||||||||||
|1. Common shares invested by the||||||||||||
|shareholders||||||||||||
|2. Capital invested by the owners of||||||||||||
|other equity instruments||||||||||||

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|3. Amounts of share-based payments||||||
|recognized in owners’ equity||||||
|4. Others||89,141,412|||89,141,412|
|(III) Profit distribution||||-207,533,556|-207,533,556|
|1. Appropriations to surplus reserves||||||
|2. Appropriations to general risk||||-207,533,556|-207,533,556|
|3. Others||||||
|(IV) Internal carry-forward of owners’||||||
|equity||||||
|1. New increase of capital (or share||||||
|capital ) from capital public reserves||||||
|2. New increase of capital (or share||||||
|capital) from surplus reserves||||||
|3. Surplus reserves for making up||||||
|losses||||||
|4. Others||||||
|(V) Specific reserve||||||
|1. Withdrawn for the period||||||
|2. Used in the period||||||
|(VI) Others||||||
|IV. Balance at the end of this term|||||4,649,673,581|
||2,075,335,560|1,494,670,923|903,395,590|176,271,508||

CSG Semi-annual Report 2017 Amount of Last Year
Uniit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the same period of last year|||||||||||
|||Other equity instruments||||||||||
|||||||Less:|Other|||||
|Items|||Perpetual||Capital|||Special|Surplus||Total of owners’|
||Share capital|Preferred||||treasury|comprehensive|||Retained profit||
||||capital|Others|reserve|||reserves|reserves||equity|
|||share||||stock|income|||||
||||securities|||||||||
|I. Balance at the end of the previous|2,075,335,560||||1,404,803,407||||873,667,690|806,232,151|5,160,038,808|
|Plus: change of accounting policy||||||||||||
|Correction of errors in previous||||||||||||
|periods||||||||||||
|Others||||||||||||
|II. Balance at the beginning of current||||||||||||
||2,075,335,560||||1,404,803,407||||873,667,690|806,232,151|5,160,038,808|
|year||||||||||||
|III. Amount of change in current term||||||||||||
||||||726,104||||29,727,900|-355,049,564|-324,595,560|
|(“-“ for decrease)||||||||||||
|(I) Total amount of the comprehensive||||||||||||
|||||||||||297,279,004|297,279,004|
|income||||||||||||
|(II) Capital paid in and reduced by||||||||||||
|owners||||||||||||
|1. Common shares invested by the||||||||||||
|shareholders||||||||||||
|2. Capital invested by the owners of||||||||||||
|other equity instruments||||||||||||

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|3. Amounts of share-based payments||||||
|recognized in owners’ equity||||||
|4. Others||||||
|(III) Profit distribution|||29,727,900|-652,328,568|-622,600,668|
|1. Appropriations to surplus reserves|||29,727,900|-29,727,900||
|2. Appropriations to general risk||||-622,600,668|-622,600,668|
|3. Others||||||
|(IV) Internal carry-forward of owners’||||||
|equity||||||
|1. New increase of capital (or share||||||
|capital ) from capital public reserves||||||
|2. New increase of capital (or share||||||
|capital) from surplus reserves||||||
|3. Surplus reserves for making up||||||
|losses||||||
|4. Others||||||
|(V) Specific reserve||||||
|1. Withdrawn for the period||||||
|2. Used in the period||||||
|(VI) Others||726,104|||726,104|
|IV. Balance at the end of this term|||||4,835,443,248|
||2,075,335,560|1,405,529,511|903,395,590|451,182,587||

CSG Semi-annual Report 2017 III. Basic Information of the Company
CSG Holding Co Ltd (the “Company”) was incorporated in September 1984, 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 Industry Corporation(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). The Company was registered in Shenzhen, Guangdong Province of the People's Republic of China and its headquarter locates in Guangdong Province of the People's Republic of China. The Company issued RMB-dominated ordinary shares and foreign shares publicly in October 1991 and January 1992 respectively, and listed on Shenzhen Stock Exchange on February 1992. On 31 December 2015, the registered capital was RMB 2,075,335,560, with nominal value of RMB1 per share.
The Company and its subsidiaries (collectively referred to as the “Group”) are mainly engaged in the manufacture and sales of glass and energy meterials with glass as the medium, the manufacture and sales of polysilicon and solar module, the construction and operation of photovoltaic plant and the manufacture and sales of electronic glass and display.
The financial statements were authorised for issue by the board of directors on 22 August 2017.
Details of major subsidiaries that were included in the financial statements in the period please refer to the Note. The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd. (hereinafter referred to as "Zhijiang PV Company").
IV. Basis of the preparation of financial statements
1. Basis of the preparation
The financial statements are prepared in accordance with the Accounting Standard for Business Enterprises - Basic Standard, and the specific accounting standards and other relevant regulations issued by the Ministry of Finance on 15 February 2006 and in subsequent periods (hereafter collectively referred to as “the Accounting Standard for Business Enterprises” or “CAS”), and “Information Disclosure Rule No. 15 for Companies with Public Traded Securities - Financial Reporting General Provision” issued by China Security Regulatory Commission.
2. Going concern
As at 30 June 2017, the Group had net current liabilities of about RMB 3.385 billion and committed capital expenditure of RMB 390 million. The directors of the Company have made an assessment that the Group has continued for many years and is expected to continue to generate sufficient cash flow from operating activities over the next 12 months. As at 30 June 2017, the net cash inflow from operation activities was approximately RMB 1.02 billion. The Group has maintained good relationship with banks so the Group has been able to successfully get adequate financing credit; As at 30 June 2017, the Group had unutilised internal banking facilities of approximately RMB 3.9 billion, In addition, the major shareholder of the Group is willing to provide the Group with interest-free loans of RMB 2 billion for the Group or through its designated parties. As of the date of this report, the shareholder has provided RMB 1.35 billion of interest-free loans. In addition, the Group also has other available financing channels, such as short-term financing bills, ultra-short–term financing notes, and medium term notes. The directors are of view that the above banking facilities and the support from the shareholder 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.
CSG Semi-annual Report 2017 V. Significant accounting policies and accounting estimates
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the first half year of 2017 truly and completely present the financial position as of 30 June 2017 and the operating results, cash flows and other information for the first half year of 2017 of the Group and the Company in compliance with the Accounting Standards for Business Enterprises.
2. Accounting period
TheCompany’s accounting year starts on 1 January and ends on 31 December.
3. Operating cycle
TheCompany’s operating cycle 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.
(a)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.
(b) 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
The consolidated financial statements comprise the financial statements of the Company and all of its subsidiaries.
Subsidiaries are consolidated from the date when the Group obtains control and are de-consolidated from the date when control ceases.
CSG Semi-annual Report 2017 For a subsidiary that is acquired in a business combination involving enterprises under common control, it is included in the consolidated financial statements from the date when it, together with the Company, comes under common control of the ultimate controlling party. The portion of the net profits realised before the combination date is presented separately in the consolidated income statement. When preparing the consolidated financial statements, if the accounting policies and the accounting periods of the Company and subsidiaries are inconsistent, the financial statements of the subsidiaries are adjusted in accordance with the accounting policies and the accounting period of the Company. For subsidiaries acquired from business combinations involving enterprises not under common control, the individual financial statements of the subsidiaries are adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant intra-group balances, transactions and unrealised profits are eliminated in the consolidated financial statements. The portion ofsubsidiaries’ equity and the portion of asubsidiaries’ net profits and losses and comprehensive incomes for the period not attributable to Company are recognised as minority interests and presented separately in the consolidated financial statements under equity, net profits and total comprehensive income respectively. Unrealized profits and losses resulting from the sale of assets by the Company to the subsidiary fully eliminate the net profits attributable to equity holders of the parent; unrealized profits and losses resulting from the sale of assets by the subsidiary to the Company are eliminated and allocated between net profit attributable to owners of the parent and minority interests in accordance with the allocation proportion of the Company in the subsidiary. Unrealized profits and losses resulting from the sale of assets by one subsidiary to another are eliminated and allocated between net profit attributable to owners of the parent and minority interests in accordance with the allocation proportion of the parent in the subsidiary.
If the accounting treatment of a transaction which considers the Group as an accounting entity is different from that considers the Company or its subsidiaries as an accounting entity, it is adjusted from the perspective of the Group.
7. Confirmation standard of cash and cash equivalent
Cash and cash equivalents comprise cash on hand, deposits that can be readily drawn on demand, 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
(a) 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 currencies are translated into RMB using the spot exchange rates 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 or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-monetary items denominated in foreign currencies that are measured at historical costs are translated at the balance sheet date using the spot exchange rates at the date of the transactions. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas operations are translated at the spot exchange rates on the balance sheet
CSG Semi-annual Report 2017 date. Among theowners’ equity items, the items other than “undistributed profits” are translated at the spot exchange rates of the transaction dates. The income and expense items in the income statements of overseas operations are translated at the spot exchange rates of the transaction dates. The differences arising from the above translation are presented separately in theowners’ equity. The cash flows of overseas operations are translated at the spot exchange rates on the dates of the cash flows. The effect of exchange rate changes on cash is presented separately in the cash flow statement.
9. Financial instruments
(a) Financial assets
(i) Classifications of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. 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 held-to-maturity investments for 2014.
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables comprise notes receivable, accounts receivable and other receivables.
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.
(ii) Recognition and measurement
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. The related transaction costs that are attributable to the acquisition of receivables and available-for-sale financial assets are included in their initial recognition amounts.
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. Receivables are measured at amortised cost using the effective interest method.
Gains or losses arising from change in fair value of available-for-sale financial assets are recognised directly in equity, except for impairment losses and foreign exchange gains and losses arising from translation of monetary financial assets. When such financial assets are derecognised, the cumulative gains or losses previously recognised directly into equity are recycled into profit or loss for the current period. Interests on available-for-sale investments in debt instruments calculated using the effective interest method during the period in which such investments are held and cash dividends declared by the investee on available-for-sale investments in equity instruments are recognised as investment income, which is recognised in profit or loss for the period.
(iii) Impairment of financial assets
CSG Semi-annual Report 2017 The Group assesses the carrying amounts of financial assets at each balance sheet date. If there is objective evidence that a financial asset is impaired, an impairment loss is provided for.
Objective evidence indicating impairment of financial assets refers to the matter that actually occurs after the initial recognition of financial assets, it will affect estimated future cash flows of financial assets, and its impact can be reliably measured.
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. The Group calculates the initial investment cost of initial available-for-sale equity instruments investment using the weighted average method.
When an impairment loss on a financial asset carried at amortised cost has occurred, the amount of loss is provided for at the difference between theasset’s carrying amount and the present value of its 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 is related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of reversal is recognised in profit or loss.
If an impairment loss on available-for-sale financial assets measured at fair value is incurred, the cumulative losses arising from the decline in fair value that had been recognised directly in shareholders' equity are transferred out from equity and into impairment loss. For an investment in debt instrument classified as available-for-sale on which impairment losses have been recognised, if, in a subsequent period, its fair value increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the previously recognised impairment loss is reversed into profit or loss for the current period. For an investment in an equity instrument classified as available-for-sale on which impairment losses have been recognised, the increase in its fair value in a subsequent period is recognised directly in equity.
(iv) Derecognition of financial assets
Financial assets are derecognised 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 sum of the consideration received and the cumulative changes in fair value that had been recognised directly in owner's equity, is recognised in profit or loss.
(b) Financial liabilities
Financial liabilities are classified into two categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. Other financial liabilities in the Group mainly include payables, borrowings and bonds payable.
Changes in fair value of financial liabilities at fair value through profit or loss are recognized in the income statement.
CSG Semi-annual Report 2017 Payables comprise accounts payable, notes payable and other payables, which are recognised initially at fair value and measured subsequently at amortised cost using the effective interest method.
Borrowings and bonds payable are recognised initially at fair value, net of transaction costs incurred, and subsequently measured at amortised cost 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.
A financial liability (or a part of a financial liability) is derecognised when all or part of the obligation is extinguished. 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.
(c) Determination of fair value of 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 that is not traded in an active market is determined by using a valuation technique. During valuation, the Group adopts a valuation technique suitable for current situation, which is supported by sufficient available data and other information, chooses the inputs consistent with the feature of assets or liabilities considered in the transaction thereof with market participants, and uses related observable inputs in preference to the greatest extent. Unobservable inputs are used when it is unable to obtain or is infeasible for related observable inputs.
10. Recognition standard impairment and receivables
(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 based on their credit risk characteristics
|||
|-|-|
|Name of the portfolio|Basis of bad debt provision|
|Portfolio 1|according to percentage of balance method|
|Portfolio 2|according to percentage of balance method|

CSG Semi-annual Report 2017 Accounts on aging analysis basis in the portfolio:
□Applicable√Non-applicable
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|2%|2%|

 Accounts on other basis in the portfolio:
□Applicable√Non-applicable
(3) The method of provision for impairment of receivables that are individually significant
|||
|-|-|
|Reason for providing bad debt|A provision for impairment of the receivable is recognized if there is objective evidence that|
|individually:|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 between the|
|Basis of bad debt provision:||
||carrying amount of the receivable and the present value of estimated future cash flows.|

 11. Inventories
(a)Classification
Inventories refer to manufacturing sector, including raw materials, work in progress, finished goods and turnover materials, and are measured at the lower of cost and net realisable value.
(b)Inventory costing method
Cost is determined using the weighted average method. The cost of finished goods and work in progress comprise raw materials, direct labour and systematically allocated production overhead based on the normal production capacity.
(c)Amortisation methods of low value consumables and packaging materials
Turnover materials include low value consumables and packaging materials, which are expensed when issued.
(d)The determination of net realisable value and the method of provision for impairment of inventories
Provision for decline in the value of inventories is determined at the excess amount of the carrying amounts of the inventories over their net realisable value. Net realisable 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 related taxes.
(e)The Group adopts the perpetual inventory system.
12. Classified as assets held for sale
A non-current asset or a disposal group is classified as held for sale when all of the following conditions are satisfied: (1) the non-current
CSG Semi-annual Report 2017 asset or the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such non-current asset or disposal group; (2) the group has signed with other parties legally binding sale agreement and approval has been obtained, is expected to the sale will be completed within one year.
Non-current assets (except for financial assets and deferred tax assets) that meet the recognition criteria for held for sale are recognised at the amount equal to the lower of the fair value less costs to sell and the carrying amount. The difference between fair value less costs to sell and the carrying amount should be presented as impairment loss.
Such non-current assets and assets included in disposal groups as classified as held for sale are accounted for as current assets; while liabilities included in disposal groups classified as held for sale are accounted for as current liabilities, which are presented separately in the balance sheet.
A discontinued operation is a component of the Group that either has been disposed of or is classified as held for sale, and is separately identifiable operationally and for financial reporting purposes, and satisfies one of the following conditions: (1) represents a separate major line of business or geographical area of operations; (2) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; and (3) is a subsidiary acquired exclusively with a view to resale.
Earnings from discontinued operations stated in the income statement include operating profit and loss and disposal gains and losses. 13. Long-term equity investments
Long-term equity investments comprise theCompany’s long-term equity investments in its subsidiaries, and theGroup’s long-term equity investments in its associates.
Subsidiaries are the investees over which the Company is able to exercise control. Associates are the investees that the Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in theCompany’s financial statements, and adjusted by using the equity method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity method. Long-term equity investments where the Group does not have control, joint control or significant influence over the investees, and which are not quoted in an active market and whose fair value cannot be reliably measured are measured using the cost method.
a. Initial recognition
For long-term equity investments formed in business combination: when obtained from business combinations involving entities under common control, the long-term equity investment is stated at carrying amount of equity for the combined parties at the time of merger; when the long-term equity investment obtained from business combinations involving entities not under common control, the investment is measured at combination cost.
For long-term equity investments not formed in business combination: the one paid by cash is initially measured at actual purchase price; the long-term investment obtained by issuing equity securities is stated at fair value of equity securities as initial investment cost.
CSG Semi-annual Report 2017 b. Subsequent measurement and recognition method of profit or loss
Long-term equity investments accounted for using the cost method are measured at initial investment cost. Cash dividend or profit distribution declared by the investees is recognised as investment income in profit or loss.
For long-term equity investments accounted for using the equity method, where the initial investment cost exceeds theGroup’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, the investment is initially measured at cost. Where the initial investment cost is less than theGroup’s share of the fair value of theinvestee’s identifiable net assets at the time of acquisition, the difference is included in profit or loss for the current period 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 the net losses of an investee after the carrying amounts 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, its proportionate share is directly recorded into capital surplus, provided that the proportion of shareholding of the Group 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 transactions between the Group and its investees are eliminated in proportion to theGroup’s equity interest in the investees, based on which the investment gain or losses are recognised. Any losses resulting from transactions between the Group and its investees attributable to asset impairment losses are not eliminated.
c. Definition of control, joint control and significant influence over the investees
The term "control" refers to the power in the investees, to obtain variable returns by participating in the related business activities of the investees, and the ability to affect the returns by exercising its power over the investees.
The term "significant influence" refers to the power to participate in the formulation of financial and operating policies of an enterprise, but not the power to control, or jointly control, the formulation of such policies with other parties.
d. Impairment of long-term equity investments
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.
14. Fixed assets
(1) Recognition and initial measurement
Fixed assets comprise buildings, machinery and equipment, motor vehicles and others. Fixed assets are recognised when it is probable that the related economic benefits will flow to the Group and the costs can be reliably measured. Fixed assets purchased or
CSG Semi-annual Report 2017 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 associated economic benefits will flow to the Group and the related cost can be reliably measured. The carrying amount of the replaced part is derecognised. All the other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
(2) Depreciation
||||||
|-|-|-|-|-|
|Categories|Depreciation method|Depreciation age (year)|Salvage Value Rate (%)|Annual depreciation rate (%)|
|Houses & buildings|straight-line method|20–35|5%|2.71% ~ 4.75%|
|Equipment & machinery|straight-line method|8–15|5%|4.75%~11.88%|
|Transportation|||||
||straight-line method|5–8|0%|12.50%~20%|
|equipment and others|||||

15. Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction costs, installation costs, borrowing costs that are eligible for capitalisation and other costs necessary to bring the fixed assets ready for their intended use. Actual cost also includes net of trial production cost and trial production income before construction in progress is put into production.
Construction in progress is transferred to fixed assets when the assets are ready for their intended use, and depreciation begins from the following month.
The carrying amount of construction in progress is reduced to the recoverable amount when the recoverable amount is below the carrying amount.
16. 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 for its intended use commence to be capitalised and 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. The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes ready for its intended use and the borrowing costs incurred thereafter are recognised in profit or loss for the current period. Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months, until the acquisition or construction is resumed.
For the specific borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of borrowing costs eligible for capitalisation 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 capitalisation period.
For the general borrowings obtained for the acquisition or construction of a fixed asset qualifying for capitalisation, the amount of
CSG Semi-annual Report 2017 borrowing costs eligible for capitalisation 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.
17. Intangible assets
(1) Pricing of intangible assets
Intangible assets including land use rights and, patents and exploitation rights, intangible assets are measured at cost.
(a)Land use rights
Land use rights are amortised on the straight-line basis over their approved use period of 30 to 70 years. If the acquisition costs of the land use rights and the buildings located thereon cannot be reasonably allocated between the land use rights and the buildings, all of the acquisition costs are recognised as fixed assets.
(b)Patents
Patents are amortised on a straight-line basis over the patent protection period of 10 years as stipulated by the laws.
(c)Exploitation rights
Exploitation rights are amortized on a straight-line basis over permitted exploitation periods of 10 years set out on the exploitation certificate.
(d)Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review of its useful life and amortisation method is performed at each year-end, with adjustment made as appropriate.
(e) If the recoverable amount of intangible asset is less than its carrying value, the carrying value is deducted to recoverable amount. (2) Research and development
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 form an intangible asset at end of the project.
Expenditure on the research phase related to planned survey, evaluation and selection for research on manufacturing technique is recognised in profit or loss in the period in which it is incurred. Prior to mass production, expenditure on the development phase related to the design and testing phase in regards to the final application of manufacturing technique is capitalised only if all of the following conditions are satisfied:
The development of manufacturing technique has been fully demonstrated by technical team;
CSG Semi-annual Report 2017 The management has approved the budget for the development of manufacturing technique;
There exists research and analysis of pre-market research explaining that products manufactured with such technique are capable of marketing;
There is sufficient technical and capital to support the development of manufacturing technique and subsequent mass production; and the expenditure on manufacturing technique development can be reliably gathered.
Other development expenditures that do not meet the conditions above are recognised in profit or loss in the period in which they are incurred. Development costs previously recognised as expenses are not recognised as an asset in a subsequent period. Capitalised expenditure on the development phase is presented as development costs in the balance sheet and transferred to intangible assets at the date that the asset is ready for its intended use.
18. Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives and long-term equity investments in joint ventures and associates are tested for impairment if there is any indication that the assets may be impaired at the balance sheet date; intangible assets not ready for their intended use are tested at least annually for impairment, irrespective of whether there is any indication that they may be impaired. If the result of the impairment test indicates that the recoverable amount of an asset is less than its carrying amount, a provision for impairment and an impairment loss are recognised for the amount by which theasset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of anasset’s fair value less costs to sell and the present value of the future cash flows expected to be derived from the asset. Provision for asset impairment is determined and recognised on the individual asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of a group of assets to which the asset belongs is determined. A group of assets is the smallest group of assets that is able to generate independent cash inflows. Goodwill that is separately presented in the financial statements is tested at least annually for impairment, irrespective of whether there is any indication that it may be impaired. In conducting the test, the carrying value of goodwill is allocated to the related asset groups or groups of asset groups which are expected to benefit from the synergies of the business combination. If the result of the test indicates that the recoverable amount of an asset group or group of asset groups, including the allocated goodwill, is lower than its carrying amount, the corresponding impairment loss is recognised. The impairment loss is first deducted from the carrying amount of goodwill that is allocated to the asset group or group of asset groups, and then deducted from the carrying amounts of other assets within the asset groups or groups of asset groups in proportion to the carrying amounts of assets other than goodwill.
Once the above asset impairment loss is recognised, it will not be reversed for the value recovered in the subsequent periods. 19. Long-term prepaid expenses
Long-term prepaid expenses include the expenditures that have been incurred but should be recognised as expenses over more than one year in the current and subsequent periods. Long-term prepaid expenses are amortised on the straight-line basis over the expected beneficial period and are presented at actual expenditure net of accumulated amortisation.
20. Employee benefits
(1) Short-term employee benefits accounting method
Short-term employee benefits include employee wages or salaries, bonus, allowances and subsidies, staff welfare, premiums or contributions on medical insurance, work injury insurance and maternity insurance, housing funds, union running costs and employee
education costs, short-term paid absences. The employee benefit liabilities are recognised in the accounting period in which the service
CSG Semi-annual Report 2017 is rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. Employee benefits which are non-monetary benefits shall be measured at fair value.
(2)Post-employment benefits accounting method
The Group classifies post-employment benefit plans as either defined contribution plans or defined benefit plans. Defined contribution plans are post-employment benefit plans under which the Group pays fixed contributions into a separate fund and will have no obligation to pay further contributions; and Defined benefit plans are post-employment benefit plans other than defined contribution plans. During the reporting period, the Group's post-employment benefits mainly include basic pensions and unemployment insurance, both of which belong to the defined contribution plans.
Basic pensions
TheGroup’s employees participate in the basic pension plan set up and administered by local authorities of Ministry of Human Resource and Social Security. Monthly payments of premiums on the basic pensions are calculated according to prescribed bases and percentage by the relevant local authorities. When employees retire, the relevant local authorities are obliged to pay the basic pensions to them. The amounts based on the above calculations are recognised as liabilities in the accounting period in which the service has been rendered by the employees, with a corresponding charge to the profit or loss for the current period or the cost of relevant assets. (3)Termination benefits accounting method
The Group provides compensation for terminating the employment relationship with employees before the end of the employment contracts or as an offer to encourage employees to accept voluntary redundancy before the end of the employment contracts. The Group recognises a liability arising from compensation for termination of the employment relationship with employees, with a corresponding charge to profit or loss at the earlier of the following dates: 1) when the Group cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a curtailment proposal; 2) when the Group recognises costs or expenses related to the restructuring that involves the payment of termination benefits.
The termination benefits expected to be paid within one year since the balance sheet date are classified as current liabilities. 21. Provisions
Business restructuring, provisions for product warranties, onerous contracts etc. are recognised when the Group has a present obligation, 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.
A provision is 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 a provision. 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 provision arising from passage of time is recognised as interest expense.
The carrying amount of provisions is reviewed at each balance sheet date and adjusted to reflect the current best estimate.
The provision expected to be paid within one year since the balance sheet date are classified as current liabilities.
CSG Semi-annual Report 2017 22. Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration received or receivable for the Sale of goods and services in the ordinary course of theGroup’s activities. Revenue is shown net of discounts, rebates and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the Group, the related revenue can be reliably measured, and the specific revenue recognition criteria have been met for each type of theGroup’s activities as described below:
(a)Sale of goods
The Group mainly sells glass, and products related to solar energy, new energy applications and electronic glass and display. 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 deliver 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 (b)Rendering of services
Revenue is recognized for the rendering of service by the Group to external parties upon the completion of related service.
(c)Transfer of asset use rights
Interest income is recognized on a time-proportion basis using the effective interest method.
23. Government grants
(1)Judgment basis and accounting method of government grants related to an asset
Government grants are the monetary asset the Group receives from the government for free, including tax refund, government subsidies, etc.
Grants from the government are recognised when there is a reasonable assurance that the grants will be received and the Group will comply with all attached conditions. Monetary government grants are measured at the amounts received or receivable. 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 related to an asset refer to the government assets which are obtained by enterprises for the purposes of purchase or construction of, or which form the long-term assets by other ways. Government grants related to income refers to government grants other than those related to assets.
Government grants related to the assets are offset against the carrying amount of the underlying assets or recognized as deferred income and are accounted for in profit or loss in a reasonable and systematic manner within the useful life of the relevant assets.
(2) Judgment basis and accounting method of government grants related to income
Government grants related to income which are used to compensate for the related costs or losses during the subsequent period are
CSG Semi-annual Report 2017 recognized as deferred income and are recognized in the current profit or loss or related expenses for the period of recognition of the relevant cost expense or loss. The relevant expenses or losses incurred, directly included in the current profits and losses or offset the relevant costs. Similar government grants use the same presentation. Government grants related to daily activities are incorporated into operating profit, while those unrelated to daily activities are incorporated into non - operating income and expenditure.
25. Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences arising between the tax bases of assets and liabilities and their carrying amounts (temporary differences). Deferred tax asset is recognised for the deductible losses that can be carried forward to subsequent years for deduction of the taxable profit in accordance with the tax laws. No deferred tax liability is recognised for a temporary difference arising from the initial recognition of goodwill. No deferred tax asset or deferred tax liability is recognised for the temporary differences resulting from the initial recognition of assets or liabilities due to a transaction other than a business combination, which affects neither accounting profit nor taxable profit (or deductible loss). At the balance sheet date, deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses and tax credits to 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 utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in subsidiaries and associates, except where the Group is able to control the timing of reversal of the temporary difference, and it is probable that the temporary difference will not reverse in the foreseeable future. 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 utilised, the corresponding deferred tax assets are recognised.
Deferred tax assets and liabilities are offset when:
·deferred income tax assets and deferred income tax liabilities are related to the income tax levied by the same the same taxation authority on the same taxpayer in the group;
·that tax payer within the Group has a legally enforceable right to offset current tax assets against current tax liabilities.
25. Leases
(1) Accounting method of operating lease
Lease payments under an operating lease are recognised on a straight-line basis over the period of the lease, and are either capitalised as part of the cost of related assets, or charged as an expense for the current period.
Lease income under an operating lease is recognised as revenue on a straight-line basis over the period of the lease.
(2) Accounting method of financing lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset is a finance lease. An operating lease is
CSG Semi-annual Report 2017 a lease other than financing lease.
26. Other significant accounting policies and accounting estimates
The Group continually evaluates the critical accounting estimates and key assumption applied based on historical experience and other factors, including expectations of future events that are believed to be reasonable.
The critical accounting estimates and key assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next accounting year are outlined below:
(a)Income taxes
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 judgement is required from the Group in determining the provision for income taxes in each of these jurisdictions. 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 income tax
Estimates on deferred tax assets are based on estimates on amount of taxable income and applicable tax rate for every year. Realization of deferred income tax is subject to sufficient taxable income that is possible to be obtained by the Group in the future. 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 carrying amount by continually using the assets or disposal; and (3) whether the assumptions used in expected obtainable present value of future cash flows are appropriate.
Various assumptions, including the discount rate and growth rate applied in the method of present value of future cash flow, are required in evaluating the recoverable amount of 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 for next accounting period, so significant adjustments may be made to the carrying amount of fixed assets in balance sheet.
CSG Semi-annual Report 2017 (e)Goodwill impairment
The Group tests annually whether goodwill has suffered any impairment. The recoverable amount of asset groups and groups of asset groups is the present value of the future cash flows expected to be derived from them. These calculations require use of estimates (Note 4 (12)).
If management revises the gross margin that is used in the calculation of the future cash flows of asset groups and groups of asset groups, and the revised gross margin is lower than the one currently used, the Group would need to recognise further impairment against goodwill.
If management revises the pre-tax discount rate applied to the discounted cash flows, and the revised pre-tax discount rate is higher than the one currently applied, the Group would need to recognise further impairment against goodwill.
If the actual gross margin/pre-tax discount rate is higher/lower thanmanagement’s estimates, the impairment loss of goodwill previously provided for is not allowed to be reversed by the Group
27. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√Applicable□Not applicable
||||
|-|-|-|
|The content and reasons of accounting policy changes|Approval procedure|Remarks|
|The Ministry of Finance promulgated the revised Accounting Standard for Business|||
|Enterprises No. 16 - Government Grants on May 10, 2017. The Company has adopted|Board of directors|No influence|
|the above guidelines to prepare the semi-annual financial statements for 2017.|||

The Ministry of Finance promulgated the revised Accounting Standard for Business Enterprises No. 16 - Government Grants on May 10, 2017. The Company has adopted the above guidelines to prepare the semi-annual financial statements for 2017. It had no effect on the Group's consolidated balance sheet and the Company's balance sheet as at 31 December 2016 and the consolidation and the Company's income statement for the six months ended 30 June 2016.
(2)Changes in significant accounting estimates
□Applicable√ Not applicable
28. Others
Safety production costs
According to relevant regulations of the Ministry of Finance and National Administration of Work Safety, a subsidiary of the Group
which is engaged in producing and selling polysilicon appropriates safety production costs on following basis:
(a)4% for revenue below RMB10 million (inclusive) of the year;
CSG Semi-annual Report 2017 (b)2% for the revenue between RMB10 million to RMB100 million (inclusive) of the year;
(c)0.5% for the revenue between RMB100 million to RMB1 billion (inclusive) of the year;
(d)0.2% for the revenue above RMB1 billion of the year.
The safety production costs is mainly used for the overhaul, renewal and maintenance of safety facilities. The safety production costs are charged to costs of related products or profit orloss when appropriated, and safety production costs in equity account are credited correspondingly. When using the special reserve, if the expenditures are expenses in nature, the expenses incurred are offset against the special reserve directly when incurred. If the expenditures are capital expenditures, when projects are completed and transferred to fixed assets, the special reserve should be offset against the cost of fixed assets, and a corresponding accumulated depreciation are recognised. The fixed assets are no longer be depreciated in future.
Segment information
The Group identifies operating segments based on the internal organisation structure, management requirements and internal reporting system, and discloses segment information of reportable segments which is determined on the basis of operating segments.
An operating segment is a component of the Group that satisfies all of the following conditions: (1) the component is able to earn revenues and incur expenses from its ordinary activities; (2) whose operating results are regularly reviewed by theGroup’s management to make decisions about resources to be allocated to the segment and to assess its performance, and (3) for which the information on financial position, operating results and cash flows is available to the Group. If two or more operating segments have similar economic characteristics and satisfy certain conditions, they are aggregated into one single operating segment.
VI. Taxation
1. The main categories and rates of taxes
||||
|-|-|-|
|Tax items|Tax basis|Tax rate|
||Taxable value added amount (Tax payable is calculated||
|Value added tax (“VAT”)|using the taxable sales amount multiplied by the effective|6%-17%|
||tax rate less current period’s deductible VAT input )||
|Urban construction tax|Total VAT, Business tax and GST|1%-7%|
|Enterprise income tax|Taxable income|0%-25%|
|Educational surtax|Total VAT, Business tax and GST|3%-5%|
|Resource tax|Quantities of Silica sold|RMB 3 per ton|

2. Tax incentives
The main tax incentives the Group is entitled to are as follows:
Tianjin Energy Conservation Glass Co., Ltd. (“Tianjin Energy Conservation”) passed review on a high and new tech enterprise in 2015
and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three
years since 2015.
CSG Semi-annual Report 2017 Dongguan CSG Architectural Glass Co., Ltd. (“Dongguan CSG”) passed review on a high and new tech enterprise in 2016 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2016.
Wujiang CSG North-east Architectural Glass Co., Ltd. (“Wujiang CSG”) passed review on a high and new tech enterprise in 2014 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to15% income tax rate for the period. Dongguan CSG Solar Glass Co., Ltd. (“Dongguan CSG Solar”) passed review on a high and new tech enterprise in 2014 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to15% income tax rate for the period. Yichang CSG Silicon Co., Ltd. (“Yichang CSG Silicon”) passed review on a high and new tech enterprise in 2014 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to15% income tax rate for the period.
Dongguan CSG PV-tech Co., Ltd. (“Dongguan CSG PV-tech”) passed review on a high and new tech enterprise in 2016 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2016.
Hebei Shichuang Glass Co., Ltd. (“Hebei Shichuang”) passed review on a high and new tech enterprise in 2016 and obtained the Certificate of High and New Tech Enterprise, the period of validity is three years. It applies to15% tax rate for three years since 2016. Wujiang CSG Glass Co., Ltd. (“Wujiang CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to15% income tax rate for the period.
Xianning CSG Glass Co Ltd. (“Xianning CSG”) was recognised as a high and new tech enterprise in 2014, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2014. It is on a review of high and new tech enterprise at present, and temporarily applies to15% income tax rate for the period.
Xianning CSG Energy-Saving Glass Co., Ltd. (“Xianning CSG Energy-Saving”) was recognised as a high and new tech enterprise in 2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2015.
Yichang CSG Photoelectric Glass Co., Ltd. (“Yichang CSG Photoelectric”) was recognised as a high and new tech enterprise in 2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2015.
Shenzhen CSG Display was recognised as a high and new tech enterprise in 2015, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2015.
Yichang CSG Display Co., Ltd (“Yichang CSG Display”) was recognised as a high and new tech enterprise in 2016, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since
CSG Semi-annual Report 2017 2016.
Qingyuan CSG New Energy-Saving Materials Co., Ltd. (“Qingyuan CSG Energy-Saving”) was recognised as a high and new tech enterprise in 2016, and obtained the Certificate of High and New Tech Enterprise, and the period of validity was three years. It applies to15% tax rate for three years since 2016.
Sichuan CSG Energy Conservation Glass Co., Ltd. (“Sichuan CSG Energy Conservation”) obtains enterprise income tax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of15% for the period.
Chengdu CSG Glass Co., Ltd. (“Chengdu CSG”) obtains enterprise income tax preferential treatment for Western Development, and temporarily calculates enterprise income tax at a tax rate of15% for the period.
Qingyuan CSG New Energy Co., Ltd. (“Qingyuan CSG New Energy”), Suzhou CSG PV Energy Co., Ltd. (“Suzhou CSG PV Energy”), Jiangsu Wujiang CSG New Energy Co., Ltd. (“Wujiang CSG New Energy”), and Yichang CSG New Energy Co., Ltd. (“Yichang CSG New Energy”) are public infrastructure project specially supported by the state in accordance with the Article 87 in Implementing Regulations of the Law of the People's Republic of China on Enterprise Income Tax, and can enjoy the tax preferential policy of “three-year exemptions and three-year halves”, that is, starting from the tax year when the first revenue from production and operation occurs, the enterprise income tax is exempted from the first to the third year, while half of the enterprise income tax is collected for the following three years. Qingyuan CSG New Energy, Suzhou CSG PV Energy and Wujiang CSG New Energy started to carry out operations in 2015, while Yichang CSG New Energy started operation in 2016. The applicable enterprise income tax rate for them is0% for the period.
In addition, pursuant to the document Fogang Guo Shui Shui Tong[2015] No. 2489, the VAT for photovoltaic power generation of Qingyuan CSG New Energy is subject to the refund upon collection policy.
3. Others
Some subsidiaries of the Group have used the “exempt, credit, refund” method on goods exported and the refund rate is5%-17%. VII. Notes to the consolidated financial statements
1. Cash at bank and on hand
Unit: RMB
||||
|-|-|-|
|Item|Balance at the end of the period|Balance at the beginning of the period|
|Cash on hand|27,530|17,239|
|Cash at bank|932,022,992|584,549,751|
|Other cash balances|2,184,679|2,236,515|
|Total|934,235,201|586,803,505|
|Including: Total overseas deposit|19,394,575|12,956,226|

Other cash balances include margin deposits for the application of opening letter of credit and loan from the bank, amounting to RMB
2,184,679 (31 Dec. 2016: RMB 2,236,515), which is restricted cash.
CSG Semi-annual Report 2017 2. Notes receivable
(1) Notes receivable listed by classification
Unit: RMB
||||
|-|-|-|
|Item|Balance at the end of the period|Balance at the beginning of the period|
|Bank acceptance notes|248,524,397|138,557,412|
|Trade acceptance notes|288,032,806|317,789,825|
|Total|536,557,203|456,347,237|

 (2) Notes receivable which has been endorsed or discounted at the end of the term by the Company but not yet due at balance sheet date
Unit: RMB
||||
|-|-|-|
||Amount of recognition termination|Amount of not terminated recognition at the|
|Item|||
||at the period-end|period-end|
|Bank acceptance notes|1,647,228,930||
|Trade acceptance notes||181,790,787|
|Total|1,647,228,930|181,790,787|

 3. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||End of term|||||Beginning of term|||||
||Book balance||Bad debt provision|||Book balance||Bad debt provision|||
|Categories|||||||||||
|||Propor||Propor|Book value||Propor||Propor|Book value|
||Amount||Amount|||Amount||Amount|||
|||tion %||tion %|||tion %||tion %||
|Accounts|||||||||||
|receivable|||||||||||
|withdrawn bad|||||||||||
|debt provision|684,955,960|98%|13,168,976|2%|671,786,984|631,863,585|98%|12,187,534|2%|619,676,051|
|according to credit|||||||||||
|risks|||||||||||
|characteristics|||||||||||
|Account|||||||||||
|receivable with|||||||||||
||12,404,070|2%|4,247,139|34%|8,156,931|12,590,789|2%|4,280,857|34%|8,309,932|
|minor individual|||||||||||
|amount but bad|||||||||||

CSG Semi-annual Report 2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|debt provision is|||||||||||
|provided|||||||||||
|Total|697,360,030|100%|17,416,115|2%|679,943,915|644,454,374|100%|16,468,391|3%|627,985,983|

 Accounts receivable with large amount individually and bad debt provisions were provided
□ Applicable√ Non-applicable
Accounts receivable on which bad debt provisions are provided on age analyze basis in the portfolio
□ Applicable√ Non-applicable
Accounts receivable on which bad debt provisions are provided on percentage analyze basis in a portfolio
√Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balalnce|||
|Name of portfolio||||
||Accounts receivable|Bad debt provision|Proportion %|
|Portfolio 1|684,955,960|13,168,976|2%|
|Portfolio 2||||
|Total|684,955,960|13,168,976|2%|

 (2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB 5,374,252. The amount of the reversed or collected part during the report period was of RMB 4,358,997.
(3) The actual write-off accounts receivable
Unit: RMB
|||
|-|-|
|Item|Write-off amount|
|Accounts receivable|67,531|

 (4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
As at 30 June 2017, the top 5 of the closing balance of the accounts receivable colleted according to the arrears party were collected and analyzed as follows:
|||||
|-|-|-|-|
||Balance|Provision for bad debts|Percentage in total accounts receivable balance|
|Total balances for the fivelargest accounts receivable|169,168,209|(3,383,364)|24%|

CSG Semi-annual Report 2017 4. Advances to suppliers
(1) Listed by aging analysis
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Age||Proportion||Proportion|
||Amount||Amount||
|||ratio (%)||ratio (%)|
|within 1 year|148,306,533|91%|80,819,387|84%|
|1-2 years|13,940,844|9%|14,913,745|16%|
|Total|162,247,377|--|95,733,132|--|

 As at 30 June 2017, advances to suppliers ageing over one year amount to RMB13,940,844 (31 December 2016: RMB14,913,745). They were mainly the advances of materials, and the payment had not been selected because the materials had not been received. (2) Top 5 of the closing balance of the advances to suppliers colleted according to the target
As at 30 June 2017, the top five largest advances to supplies are set out as below:
||||
|-|-|-|
||Balance|Percentage in total advances balance|
|Total advances for the five largest advances|58,816,501|36%|

 5. Other account receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Openning balance|||||
|||||||||Bad debt|||
||Book balance||Bad debt provision|||Book balance|||||
|Categories||||||||provision|||
||||||Book value|||||Book value|
|||Propor||Propor|||Propor||Propor||
||Amount||Amount|||Amount||Amount|||
|||tion %||tion %|||tion %||tion %||
|Other accounts|||||||||||
|receivable|||||||||||
|withdrawn bad debt|||||||||||
||34,326,598|100%|767,508|2%|33,559,090|33,903,217|100%|674,068|2%|33,229,149|
|provision according|||||||||||
|to credit risks|||||||||||
|characteristics|||||||||||
|Total|34,326,598|100%|767,508|2%|33,559,090|33,903,217|100%|674,068|2%|33,229,149|

Statement on categories of other receivable accounts:
Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
CSG Semi-annual Report 2017□ Applicable√ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on age analyze basis
□ Applicable√ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balance|||
|Name of portfolio||||
||Other receivable accounts|Bad debt provision|proportion%|
|portfolio 1|34,326,598|767,508|2%|
|Total|34,326,598|767,508|2%|

 Explanation for determining the basis of the portfolio:
Other accounts receivable in the portfolio on which bad debt provisions were provided on other basis
□ Applicable√ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The withdrawal amount of the bad debt provision during the report period was of RMB127,208. The amount of the reversed or collected part during the report period was of RMB 33,768.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
||||
|-|-|-|
|Nature|Closing balance|Opening balance|
|Refundable deposits|6,953,820|6,121,403|
|Payments made on behalf of other parties|23,225,811|25,019,422|
|Petty cash|1,389,488|959,785|
|Export tax rebates receivable|805,438|755,372|
|Others|1,952,041|1,047,235|
|Total|34,326,598|33,903,217|

 (4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|Name of the||||total year end||
||||||Closing balance of|
|companies|Nature|Closing balance|Ages|balance of the||
||||||bad debt provision|
|Industrial||||accounts receivable||
|||||(%)||
|Government agency|Independent third|11,067,754|1 to 3 years|32%|221,355|

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|A|party|||||
||Independent third||W Within 1 year|||
|Company B||4,268,347||12%|85,367|
||party|||||
||Independent third||Within 1 year|||
|Company C||3,183,029||9%|63,661|
||party|||||
||Independent third||Within 1 year|||
|Company D||1,900,000||6%|38,000|
||party|||||
|Government agency|Independent third||Within 1 year|||
|||1,196,150||3%|23,923|
|E|party|||||
|Total|--|21,615,280|--|62%|432,306|

 6. Inventories
(1) Categories of inventory
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Raw materials|254,363,351|1,480,641|252,882,710|166,639,254|2,025,446|164,613,808|
|Product in process|20,325,740||20,325,740|18,893,651||18,893,651|
|Products in stock|330,050,877|3,147,241|326,903,636|274,559,889|6,347,741|268,212,148|
|Material in|||||||
||30,481,690||30,481,690|26,061,318||26,061,318|
|circulation|||||||
|Total|635,221,658|4,627,882|630,593,776|486,154,112|8,373,187|477,780,925|

 (2) Inventory impairment provision
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Increased this term||Decreased this term|||
|Categories|Opening balance|||||Closing balance|
|||Withdrawal|Other|Reverse or write-off|Other||
|Raw materials|2,025,446|||544,805||1,480,641|
|Products in stock|6,347,741|||3,200,500||3,147,241|
|Total|8,373,187|||3,745,305||4,627,882|

 Details of inventory impairment provision as following:
Basis for provision for decline in the value of inventories Reasons of reversal of the decline in
the value of inventories in the period
CSG Semi-annual Report 2017 Finished goods The amount of carrying amount less net realisable value due to Sold decline in price of products
Raw materials The amount of book value less net realisable value due to sluggish Used or damaged raw materials
7. Other current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT to be offset|186,548,195|150,317,894|
|Asstes held for sale|40,049,163|40,049,163|
|Enterprise income tax prepaid|1,590,919|1,325,723|
|VAT input to be recognised|21,181,042|8,212,797|
|Total|249,369,319|199,905,577|

 8. Fixed assets
(1) Particulars of fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
|||Machinery and|Motor vehicles||
|Items|Buildings|||Total|
|||equipment|and others||
|I. Original book value:|||||
|1. Opening balance|3,911,336,527|11,699,296,248|201,923,067|15,812,555,842|
|2. Increased amount of the period|||||
|(1) Acquisition|1,007,850|7,963,289|2,988,342|11,959,481|
|(2) Transfers from construction in progress|70,349,000|851,590,771|1,185,606|923,125,377|
|(3) Increase from enterprise combination|||||
|(4) Others|731,040|1,858,203|472,773|3,062,016|
|3. Decreased amount of the period|||||
|(1)Disposal or retirement||495,370|2,576,058|3,071,428|
|(2) Others|3,695,395|282,254,513||285,949,908|
|4. Closing balance|3,979,729,022|12,277,958,628|203,993,730|16,461,681,380|
|II. Accumulative depreciation and|||||
|accumulative amortization|||||

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|1. Opening balance|629,946,237|3,287,606,208|172,265,020|4,089,817,465|
|2. Increased amount of the period|||||
|(1) Withdrawal|61,506,196|408,580,685|11,232,619|481,319,500|
|3. Decreased amount of the period|||||
|(1)Disposal or retirement||378,003|2,461,513|2,839,516|
|(2) Transferred to construction in progress|1,895,250|138,978,164||140,873,414|
|4. Closing balance|689,557,183|3,556,830,726|181,036,126|4,427,424,035|
|III. Depreciation reserves|||||
|1. Opening balance||264,765,386||264,765,386|
|2. Increased amount of the period|||||
|(1) Withdrawal|||||
|3. Decreased amount of the period|||||
|(1)Disposal or retirement|||||
|(2) Others||4,010,176||4,010,176|
|4. Closing balance||260,755,210||260,755,210|
|IV. Book value|||||
|1. Closing book value|3,290,171,839|8,460,372,692|22,957,604|11,773,502,135|
|2. Opening book value|3,281,390,290|8,146,924,654|29,658,047|11,457,972,991|

 (2) Fixed asset not licensed yet
Unit: RMB
||||
|-|-|-|
|Items|Book value|Reason for not granted|
|||Have submitted the required documents and are in the process of|
|Buildings|910,163,588||
|||application, or the related land use right certificate pending|

During January to June 2017, the depreciation amount provided for fixed assets was RMB 481,319,500 (January to June 2016: RMB 421,993,622), and the amount of depreciation expenses charged to cost of sales, selling and distribution expenses, general and administrative expenses and construction in progress was RMB 448,195,663, RMB 482,108, RMB 31,885,617, and RMB 756,112 (January to June 2016: RMB 385,642,218, RMB 506,576, RMB 26,989,222, RMB 8,855,606), respectively.
During January to June 2017, the cost of fixed assets transferred from construction in progress amounted to RMB 923,125,377 (January to June 2016: RMB 901,652,337).
CSG Semi-annual Report 2017 9. Construction in process
(1)Particulars of construction in process
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Yichang 1GW silicon|||||||
||346,209,311||346,209,311|95,011,027||95,011,027|
|slice project|||||||
|Yichang CSG Display|||||||
||305,291,976|18,170,650|287,121,326|274,342,571|14,160,474|260,182,097|
|panel display project|||||||
|Xianning CSG|||||||
|Photoelectric Glass|221,147,847||221,147,847|41,267,876||41,267,876|
|project|||||||
|Hebei float 600T|||||||
||120,324,473||120,324,473||||
|tech-innovation project|||||||
|Zhanjiang PV PV power|||||||
||53,766,946||53,766,946|8,855,560||8,855,560|
|station project|||||||
|Wujiang float glass|||||||
||70,357,072|19,876,460|50,480,612|70,178,986|19,876,460|50,302,526|
|project|||||||
|Dongguan Solar Glass|||||||
|Phase I and II|78,970,995|33,075,116|45,895,879|78,970,995|33,075,116|45,895,879|
|improvement project|||||||
|Sichuan energy-saving|||||||
||10,493,107||10,493,107|13,005,928||13,005,928|
|project Phase III|||||||
|Dongguan PV 250MW|||||||
|module capacity|10,141,901||10,141,901||||
|expansion project|||||||
|Dongguan PV 100MV|||||||
|cell production capacity|8,343,263||8,343,263||||
|expansion project|||||||
|Yichang 700MW silicon|||||||
||2,018,255||2,018,255|1,775,641||1,775,641|
|slice expansion project|||||||
|Wujiang Photovoltaic|||||||
|Packaging Materials|1,693,809||1,693,809|1,583,553||1,583,553|
|Project|||||||
|Xianning energy-saving|||||||
||1,354,508||1,354,508|1,083,430||1,083,430|
|glass project|||||||
|Dongguan PV Tech|1,146,672||1,146,672|8,224,072||8,224,072|

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|200MW PV-tech Battery|||||||
|Expansion project|||||||
|Yichang 5000T|||||||
|electronic-grade||||171,211,288||171,211,288|
|polysilicon project|||||||
|Chengdu float 550T line|||||||
|||||102,304,740||102,304,740|
|tech-renovation|||||||
|Hebei float 900T|||||||
|||||388,627,081||388,627,081|
|tech-innovation project|||||||
|Heyuan PV tech 11MV|||||||
|distributed generation||||85,126,446||85,126,446|
|project|||||||
|others|99,287,462||99,287,462|87,639,233||87,639,233|
|Total|1,330,547,597|71,122,226|1,259,425,371|1,429,208,427|67,112,050|1,362,096,377|

CSG Semi-annual Report 2017 (2) Movement of significant project
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||Capitalizin||
||||||||Investmen||Accumulate|Including:|||
|||||Transferred|||||||g rate of||
|||Opening|Increased||Other|Closing|t on||of|interest|||
|Projects|Budget|||into fixed||||Progress|||interest|Fund recourse|
|||balance|this term||decreases|balance|budget||interest|capitalized|||
|||||assets|||||||this||
||||||||(%)||capitalized|this term|||
||||||||||||period %||
|Yichang 1GW||||||||||||Internal fund and|
||1,073,209,600|95,011,027|251,392,592|194,308||346,209,311|48.00%|65.00%|3,371,909|2,825,684|4.41%||
|silicon slice project||||||||||||bank loan|
|Yichang CSG|||||||||||||
|||||||||||||Internal fund and|
|Display panel|1,970,000,000|274,342,571|54,407,827|23,194,679|263,743|305,291,976|55.00%|65.00%|2,691,886|1,694,243|4.11%||
|||||||||||||bank loan|
|display project|||||||||||||
|Xianning CSG|||||||||||||
|Photoelectric Glass|510,000,000|41,267,876|180,424,957|544,986||221,147,847|54.00%|70.00%|3,030,956|3,030,956|4.75%|Internal fund and|
|project||||||||||||bank loan|
|Hebei float 600T|||||||||||||
|tech-innovation|181,250,000||120,324,473|||120,324,473|2.00%|2.00%||||Internal fund and|
|project||||||||||||bank loan|
|Zhanjiang PV PV|||||||||||||
|power station|130,000,000|8,855,560|44,911,386|||53,766,946|40.00%|45.00%|918,139|139,762|4.57%|Internal fund and|
|project||||||||||||bank loan|
|Wujiang float glass||||||||||||Internal fund and|
||919,891,000|70,178,986|431,588|253,502||70,357,072|100.00%|100.00%|20,120,444||||
|project||||||||||||bank loan|
|Dongguan Solar|||||||||||||
|Glass Phase I and|396,410,000|78,970,995||||78,970,995|80.00%|80.00%||||Internal fund|
|II improvement|||||||||||||

CSG Semi-annual Report 2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|project|||||||||||||
|Sichuan|||||||||||||
|energy-saving|222,817,517|13,005,928|||2,512,821|10,493,107|99.00%|99.00%||||Internal fund|
|project Phase III|||||||||||||
|Dongguan PV|||||||||||||
|250MW module||||||||||||Internal fund and|
||28,000,000||10,329,122|187,221||10,141,901|36.00%|50.00%|45,374|45,374|4.80%||
|capacity expansion||||||||||||bank loan|
|project|||||||||||||
|Dongguan PV|||||||||||||
|100MV cell||||||||||||Internal fund and|
||15,000,000||8,343,263|||8,343,263|56.00%|70.00%|37,327|37,327|4.80%||
|production capacity||||||||||||bank loan|
|expansion project|||||||||||||
|Yichang 700MW|||||||||||||
|||||||||||||Internal fund and|
|silicon slice|697,000,000|8,224,072||7,077,400||1,146,672|100.00%|100.00%|32,015,800||||
|||||||||||||bank loan|
|expansion project|||||||||||||
|Wujiang|||||||||||||
|Photovoltaic||||||||||||Internal fund and|
||1,980,000,000|1,775,641|242,614|||2,018,255|76.00%|100.00%|17,594,454||4.41%||
|Packaging||||||||||||bank loan|
|Materials Project|||||||||||||
|Xianning|||||||||||||
|||||||||||||Internal fund and|
|energy-saving|565,119,318|1,583,553|137,080|26,824||1,693,809|95.00%|100.00%|6,321,397||||
|||||||||||||bank loan|
|glass project|||||||||||||
|Dongguan PV Tech|||||||||||||
|200MW PV-tech|||||||||||||
||295,270,606|1,083,430|373,576|68,594|33,904|1,354,508|99.00%|100.00%|11,306,278||||
|Battery Expansion||||||||||||Internal fund and|
|project||||||||||||bank loan|
|Yichang 5000T||||||||||||Internal fund and|
||698,396,700|171,211,288|46,327,655|216,595,546||943,397|30.00%|35.00%|7,177,033|3,967,498|4.41%||
|electronic-grade||||||||||||bank loan|

CSG Semi-annual Report 2017
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|polysilicon project|||||||||||||
|Chengdu float 550T|||||||||||||
||200,000,000|102,304,740|57,219,831|159,524,571|||92.00%|100.00%||||Internal fund|
|line tech-renovation|||||||||||||
|Hebei float 900T|||||||||||||
|tech-innovation|124,000,000|388,627,081|4,503,619|393,130,700|||100.00%|100.00%|4,211,893|1,057,593|4.94%|Internal fund and|
|project||||||||||||bank loan|
|Heyuan PV tech|||||||||||||
|||||||||||||Internal fund and|
|11MV distributed|91,610,000|85,126,446|1,021,587|86,141,345|1,834|4,854|94.00%|100.00%|325,704|325,704|5.00%||
|||||||||||||bank loan|
|generation project|||||||||||||
|||||||||||||Internal fund and|
|others|1,046,953,400|87,639,233|46,885,679|36,185,701||98,339,211|||67,530,341|910,042|||
|||||||||||||bank loan|
|Total|11,144,928,141|1,429,208,427|827,276,849|923,125,377|2,812,302|1,330,547,597|--|--|176,698,935|14,034,183||--|

CSG Semi-annual Report 2017 10. Intangible assets
(1) Particulars of intangible assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Land use rights|Patents|Mineral rights|Others|Total|
|I. Original book value:||||||
|1. Opening balance|1,026,603,700|199,922,986|4,456,536|23,548,047|1,254,531,269|
|2. Increased amount of the period||||||
|(1) Acquisition||2,856,020||13,539|2,869,559|
|(2) Internal R &D||6,097,439|||6,097,439|
|(3) Increase from enterprise combination||||||
|3. Decreased amount of the period||||||
|(1)Disposal||||||
|4. Closing balance|1,026,603,700|208,876,445|4,456,536|23,561,586|1,263,498,267|
|II. Total accrued amortization||||||
|1. Opening balance|128,007,677|57,225,743|3,306,083|20,322,309|208,861,812|
|2. Increased amount of the period||||||
|(1) Withdrawal|9,813,201|7,601,215|200,321|2,141,791|19,756,528|
|3. Decreased amount of the period||||||
|(1)Disposal||||||
|4. Closing balance|137,820,878|64,826,958|3,506,404|22,464,100|228,618,340|
|III. Impairment provision||||||
|1. Opening balance||13,201,347||9,133|13,210,480|
|2. Increased amount of the period||||||
|(1) Withdrawal||||||
|3. Decreased amount of the period||||||
|(1)Disposal||||||
|4. Closing balance||13,201,347||9,133|13,210,480|

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|IV. Book value||||||
|1. Closing book value|888,782,822|130,848,140|950,132|1,088,353|1,021,669,447|
|2. Opening book value|898,596,023|129,495,896|1,150,453|3,216,605|1,032,458,977|

 At the end of the period, the intangible assets arising from internal research and development accounted for10.20% of total of intangible assets.
(2) Land use right not licensed yet
Unit: RMB
||||
|-|-|-|
|Item|Book value|Reason for not granted|
|Land|5,595,776|in the process|

During Jan.-Jun. 2017, the amortisation of intangible assets amounted to RMB 19,756,528 (Jan.-Jun. 2016: RMB 16,315,423). As at 30 June 2017, ownership certificates of land use right (“Land ownership Certificates”) for certain land use rights of the Group with carrying amounts of approximately RMB 5,595,776 (cost: RMB 6,586,712) had not yet been obtained by the Group (as at 31 December 2016, carrying amount: RMB 5,718,191, cost: RMB 6,586,712). TheCompany’s management is of the view that there is no legal restriction for the Group to apply for and obtain the Land Ownership Certificates and has no adverse effect on theGroup’s business operation.
11. Development expenditure
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||The decrease amount in the period|||
|||The increased||||
|Item|Opening balance||Recognised as|Transfer in gains and|Closing balance|
|||amount in the period||||
||||intangible assets|losses||
|Developmentexpenditure|66,927,714|||||
|||15,642,633|6,097,439|423,437|76,049,471|
|Total|66,927,714|15,642,633|6,097,439|423,437|76,049,471|

 During Jan.-Jun. 2017, the total amount of research and development expenditures of the Group was RMB 166,809,377 (Jan.-Jun. 2016: RMB 155,478,325), including RMB 151,590,181 (Jan.-Jun. 2016: RMB 127,759,895) recorded in income statement for current period and RMB 6,097,439 were recognized as intangible assets (Jan.-Jun. 2016: nil). As at 30 June 2017, the intangible assets arising from internal research and development accounted for10.2% of the total of book value of intangible assets (31 December 2016:9.51%).
12. Goodwill
(1)Book value of goodwill
Unit: RMB
CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Name of the companies or|||||
||Opening balance|Increased this term|Decreased this term|Closing balance|
|goodwill item|||||
|Tianjing CSG Energy-savingCompany|3,039,946||||
|||||3,039,946|
|Shenzhen Display Company|4,857,406|||4,857,406|
|Xianning Fengwei Company|389,494,804|||389,494,804|
|Total|397,392,156|||397,392,156|

 The goodwill allocated to the asset groups and groups of asset groups from Tianjing CSG Energy-saving was summarised by operating segments as Architectural Glass segment. The goodwill allocated to the asset groups and groups of asset groups from Shenzhen CSG Displayand Xianning CSG Photoelectric are summarised by operating segments as Electronic Glass and Display segment.
The Company's management considered that the goodwill was not impaired as at 30 June 2017.
The recoverable amount of asset groups is determinded by net present value of estimated future cash flows which is determined according to the five-year budget approved by management. The cashflow exceed five years is forcasted by using growth rates not exceeding similar long-term average growth rates of each assetgroup’s industry. The discount rates used are the pre-tax interest rates that are able to reflect the risks specific to the related asset groups.
13. Long-term expenses to be amortized
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increased this term|Amortized this term|Closing balance|
|Expenses to be amortized|975,660|9,496,897|779,455|9,693,102|
|Total|975,660|9,496,897|779,455|9,693,102|

 14. Deferred income tax asset/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|assets|difference|assets|
|Provision for asset|||||
||400,092,300|60,026,145|410,272,182|61,899,046|
|impairments|||||
|Deductible loss|137,896,780|22,522,859|164,790,392|28,883,903|
|Government grants|130,489,613|20,809,503|129,722,993|20,654,199|
|Accrued expenses|66,241,073|11,953,528|81,018,069|12,352,386|
|Depreciation of fixed|26,759,268|7,741,138|28,241,461|6,320,146|

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|assets|||||
|Total|761,479,034|123,053,173|814,045,097|130,109,680|

 (2) Deferred income tax liabilities had not been off-set
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|Deductible temporary|Deferred income tax|Deductible temporary|Deferred income tax|
||difference|liabilities|difference|liabilities|
|Depreciation of fixed|||||
||347,335,276|62,520,184|396,118,583|63,406,963|
|assets|||||
|Total|347,335,276|62,520,184|396,118,583|63,406,963|

 (3) The net balances of deferred tax assets or liabilities
Unit: RMB
||||||
|-|-|-|-|-|
||Off-set amount of|Closing balance of|Off-set amount of|Opening balance of|
||deferred income tax|deferred income tax|deferred income tax|deferred income tax|
|Item|||||
||assets and liabilities at|assetsor liabilities after|assets and liabilities at|assetsor liabilities after|
|t|||||
||he period-end|off-set|the period-beginning|off-set|
|Deferred tax assets|38,355,963|84,697,210|33,657,826|96,451,854|
|Deferred tax liabilities|38,355,963|24,164,221|33,657,826|29,749,137|

 (4) Details of unrecognised deferred income tax assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Deductible losses|410,872,906|342,455,782|
|Total|410,872,906|342,455,782|

 (5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Note|
|2018年|54,100,000|54,100,000||
|2019年|82,300,000|82,300,000||
|2020年|94,430,197|94,430,197||
|2021年|111,625,585|111,625,585||

CSG Semi-annual Report 2017
|||||
|-|-|-|-|
|2022年|68,417,124|||
|Total|410,872,906|342,455,782|--|

The deductible loss of the unrecognized deferred income tax assets is mainly attributable to the Company and some of the subsidiaries which have been closed. The management of the Company can not expect the Company and the subsidiaries to generate sufficient taxable income which can be used to deduct such deductible losses in the future. Therefore, deferred income tax assets are not recognized.
15. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Prepayment for equipment and software|||
||74,836,840|69,945,550|
|upgrading expenses|||
|VAT input to be offset||10,718,843|
|Prepayment for lease of land use rights|6,510,000|6,510,000|
|Total|81,346,840|87,174,393|

 16. Short-term loans
(1) Categories of short-term loans
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guaranteed loan|709,694,000|367,618,369|
|Unsecured loan|1,690,000,000|1,650,251,293|
|Ultra-short-term finance bonds (iii)||2,000,000,000|
|Total|2,399,694,000|4,017,869,662|

 (i) On 17 May 2016, the Company issued the Phase II ultra-short-term financial bonds of RMB900,000,000 for 2016, with the maturity data of 13 February 2017 and annual rate of4.18%.As at the reporting date, such short-term bonds had been repaid.
On 2 August 2016, the Company issued the Phase III ultra-short-term financial bonds of RMB600,000,000 for 2016, with the maturity data of 1 May 2017 and annual rate of3.67%.
On 1 September 2016, the Company issued the Phase IV ultra-short-term financial bonds of RMB500,000,000 for 2016, with the maturity data of 2 June 2017 and annual rate of3.50%.
(ii) As at 30 June 2017, the Company provided its subsidiaries with guarantee for the short-term borrowings of RMB 709,694,000 (31 December 2016: RMB 367,618,369), and the Company had no counter guarantee from minority shareholders of subsidiaries (31
December 2016: Nil).
(iii) As at 30 June 2017, the interest of short-term borrowings varied from2.70% to5.00% (31 December 2016:2.70% to4.79%).
CSG Semi-annual Report 2017 17. Notes payable
Unit: RMB
||||
|-|-|-|
|Category|Closing balance|Opening balance|
||114,500,000|20,000,000|
|Bank acceptance notes|||
|Total|114,500,000|20,000,000|

 18. Accounts payable
(1)Particulars of accounts payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Account payable for materials|833,168,302|747,769,987|
|Account payable for equipments|281,497,857|233,779,329|
|Account payable for constructions|171,181,012|100,246,462|
|Account payable for freight|57,741,846|40,916,380|
|Account payable for water and electricity|33,639,900|44,602,055|
|Others|5,271,561|2,555,157|
|Total|1,382,500,478|1,169,869,370|

 (2) Significant accounts payable due for over one year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Unpaid reason|
|Account payable for construction and||As the construction work had not passed the final|
||98,986,756||
|equipments.||acceptance test yet, the balance was not yet settled.|
|Total|98,986,756|--|

As at 30 June 2017, the amount of accounts payable over 1 year was approximately RMB 98,986,756 (31 December 2016: RMB 140,385,720), which mainly comprised payables for construction and equipment. As the construction work had not passed the final acceptance test yet, the balance was not yet settled.
19. Advances from customers
(1) List of advance from customers
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Advances from customers|201,549,137|142,330,979|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Total|201,549,137|142,330,979|

 20. Employee benefits payable
(1) List of Employee benefits payable
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|
|I. Short-term employee|||||
||193,166,719|598,752,219|618,819,592|173,099,346|
|benefits|||||
|II. Welfare after|||||
|departure- defined|205,520|53,146,283|53,264,828|86,975|
|contribution plans|||||
|Total|193,372,239|651,898,502|672,084,420|173,186,321|

 (2) List of short-term employee benefits
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|
|1. Wages and salaries, bonuses,|||||
||159,601,219|506,010,114|548,380,471|117,230,862|
|allowances and subsidies|||||
|2. Social security contributions|50,331|23,386,459|23,369,781|67,009|
|Including: Medical insurance|31,340|20,305,292|20,282,053|54,579|
|Work injury insurance|12,677|2,271,511|2,275,803|8,385|
|Maternity insurance|6,314|809,656|811,925|4,045|
|3. Housing funds|2,603,791|26,571,506|26,290,058|2,885,239|
|4.Labour union funds and|||||
||15,571,378|7,084,140|8,025,385|14,630,133|
|employee education funds|||||
|5.Management bonus forperformance|15,340,000||||
|||35,700,000|12,753,897|38,286,103|
|Total|193,166,719|598,752,219|618,819,592|173,099,346|

 (3) List of defined contribution plans payable
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|
|1. Basic pensions|192,780|51,126,025|51,239,954|78,851|
|2. Unemployment insurance|12,740|2,020,258|2,024,874|8,124|

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Total|205,520|53,146,283|53,264,828|86,975|

 According to the decision of the fifth meeting of the seventh session of the board of directors held on 31 March 2015, the Board approved that it will appraise the management team based on quarterly net assets income rate and reward the management team by taking quarterly total net profit after tax as the base. The Group withheld management performance award of RMB 35,700,000 (Jan.-Jun. 2016: 43,750,000).
21. Tax payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Value-added-tax payable|37,988,909|41,919,187|
|Corporate income tax payable|31,122,623|46,726,185|
|Individual income tax payable|3,956,884|3,755,374|
|Urban maintenance and construction tax|2,859,336|3,482,715|
|Property tax payable|4,223,103|10,998,756|
|Education surcharge payable|2,334,721|3,351,165|
|Others|5,475,695|5,359,234|
|Total|87,961,271|115,592,616|

 22. Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
||716,363|4,800,133|
|Interest payable for long-term borrowings|||
||37,309,995|10,660,000|
|Interest for corporate bonds|||
||2,897,716|2,289,987|
|Interest payable for short-term borrowings|||
|Interest for ultra-short-term financing|||
|||32,854,763|
|bonds|||
||57,260,622|27,621,021|
|Interest payable for medium-term notes|||
|Total|98,184,696|78,225,904|

 23. Dividends payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Common stock dividend|207,533,556||
|Total|207,533,556||

CSG Semi-annual Report 2017 24. Other account payable
(1) List of other account payable by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest-free borrowings|626,342,837||
|Guarantee deposits received from|||
||64,868,546|69,156,801|
|construction contractors|||
|Accrued cost of sales|40,511,663|47,671,047|
|Temporary collection of payment for land|||
||39,350,245|28,098,000|
|transfer|||
|Industrial production scheduling funds|31,000,000||
|Payable for contracted labour costs|16,551,623|17,467,346|
|Temporary receipts|13,218,776|14,022,924|
|Deposit for disabled|4,036,351|3,509,947|
|Others|8,943,846|8,395,385|
|Total|844,823,887|188,321,450|

 24. Other account payable
(1) List of other account payable by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guarantee deposits received from|||
||64,868,546|69,156,801|
|construction contractors|||
|Accrued cost of sales|40,511,663|47,671,047|
|Temporary collection of payment for land|||
||39,350,245|28,098,000|
|transfer|||
|Interest-free borrowings|681,000,000||
|Payable for contracted labour costs|16,551,623|17,467,346|
|Temporary receipts|13,218,776|14,022,924|
|Deposit for disabled|4,036,351|3,509,947|
|Others|8,943,846|8,395,385|
|Total|868,481,050|188,321,450|

CSG Semi-annual Report 2017 25. Non-current liabilities due within one year
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Long-term borrowing due within 1year||29,340,000|
|Bonds payable due within 1year|1,000,000,000|1,000,000,000|
|Long-term accounts payable within one year|101,203,702||
|Total|1,101,203,702|1,029,340,000|

 (i)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 (“5 year Bonds”) 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 carries at fixed interest rate of5.33% per year, with interest paid annually. The bonds are recognised at the actual amount of discount bonds, with the actual annual rate of5.59%. 5-year bonds have been repaid on 19 October 2015, no 7-year bonds shall be resold by investors, and are matured on 19 October 2017.
(ii)As of June 30, 2017, the Company signed a sell and leaseback agreement with a third-party finance leasing company. As a result of the Company's failure to transfer the fixed asset-related risks, it constituted a mortgage loan. In which: the amount required to be repaid within one year was shown as non-current liabilities due within one year - long term payable due within one year".
26. Other current liability
Unit: RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Others|300,000|300,000|
|Total|300,000|300,000|

 27. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Guaranteed loan|244,000,000|58,660,000|
|Unsecured loan|180,000,000|180,000,000|
|Medium-term notes|1,200,000,000|1,200,000,000|
|Total|1,624,000,000|1,438,660,000|

 Approved by file No.[2015] MTN225 of Inter Bank Market Trading Association, the Company is entitled to issue medium-term notes
with the limit of RMB 1,200,000,000, which expires on 28 May 2017.
The Company issued medium-term notes of RMB 1,200,000,000 on 14 July 2015 for the first time in 2015. The notes above matured
CSG Semi-annual Report 2017 on 14 July 2020, with an annual interest rate of4.94%.
As at 30 June 2017, the interest of long term borrowings varied from4.51% to4.94% (31 December 2016:4.51% to4.94%). 28. Long term payables
(1) Long-term payables by nature of payment
Unit: RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Interest-free loan|649,823,518|0|
|Mortgage loan|189,048,152|0|
|Total|838,871,670|0|

 On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support theGroup’s steady operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the total amount of RMB 2,000,000,000 to the Company or through related parties designated by it. As of the date of this report, the shareholder has provided RMB 700,000,000 of interest-free loans (amortized cost of RMB 650,000,000).
29. Deferred revenue
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|reason|
|Government grants|422,993,254|12,800,000|14,912,953|420,880,301||
|Total|422,993,254|12,800,000|14,912,953|420,880,301|--|

Government grants are analysed below:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Included in||||
|||Increase in||||Related to assets|
|Item in debt|Opening balance||non-business|Other changes|Closing balance||
|||current period||||or income|
||||income||||
|Tianjin CSG Golden Sun|||||||
||57,092,011||1,687,446||55,404,565|Related to assets|
|Project (i)|||||||
|Dongguan CSG Golden|||||||
||46,079,250||1,375,500||44,703,750|Related to assets|
|Sun Project (ii)|||||||
|Hebei CSG Golden Sun|||||||
||46,750,000||1,375,000||45,375,000|Related to assets|
|Project (iii)|||||||
|Xianning CSG Golden|||||||
||51,013,417||1,515,250||49,498,167|Related to assets|
|Sun Project (iv)|||||||
|Infrastructure|||||||
||43,670,435||2,020,768||41,649,667|Related to assets|
|compensation for|||||||
|Wujiang CSG Glass|||||||

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Co., Ltd (v)|||||||
|Qingyuan Energy-saving|||||||
||23,259,167||1,235,001||22,024,166|Related to assets|
|project (vi)|||||||
|Yichang Silicon products|||||||
||24,609,375||1,406,250||23,203,125|Related to assets|
|project (vii)|||||||
|Yichang CSG silicon|||||||
|slice auxiliary project|13,890,609||634,323||13,256,286|Related to assets|
|(viii)|||||||
|Sichuan energy-saving|||||||
||12,129,480||827,010||11,302,470|Related to assets|
|glass project (ix)|||||||
|Group coating film|||||||
|experimental project|9,035,040||754,380||8,280,660|Related to assets|
|(x)|||||||
|Yichang expert silicon|||||||
||3,906,547||132,876||3,773,671|Related to assets|
|project (xi)|||||||
|Yichang semiconductor|||||||
||3,666,667||133,334||3,533,333|Related to assets|
|silicon project (xi)|||||||
|Shenzhen CSG Display|||||||
||53,371,082||1,267,239||52,103,843|Related to assets|
|project (xiii)|||||||
|Xianning photoelectric|||||||
|infrastructure||7,800,000|||7,800,000|Related to assets|
|construction fund (xiv)|||||||
|||||||Related to assets|
|Others|34,520,174|5,000,000|462,588|85,988|38,971,598||
|||||||and income|
|Total|422,993,254|12,800,000|14,826,965|85,988|420,880,301|--|

 (i)The allowance was granted by Tianjin Municipal Government. The allowance was used for establishing PV power station by Tianjin CSG Architectural Glass Co., Ltd. The facilities belonged to Tianjin CSG upon completion. The allowance will be credited to income statement in 20 years, the useful life of the PV power station.
(ii)The allowance was granted by Dongguan Municipal Government. The allowance was used for establishing PV power station by Dongguan CSG Architectural Glass Co., Ltd. The facilities belonged to Dongguan CSG upon completion. 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 Langfang Municipal Government. The allowance was used for establishing PV power station by Hebei CSG Glass Co., Ltd. ("Hebei CSG"). 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.
(iv)The allowance was granted by Xianning Municipal Government. The allowance was used for establishing PV power station by
Xianning CSG Glass Co Ltd. The facilities belonged to Xianning CSG upon completion. The allowance will be credited to income
statement in 20 years, the useful life of the PV power station.
CSG Semi-annual Report 2017 (v)The allowance was infrastructure compensation granted by Wujiang municipal government, and will be credited to income statement in 15 years, the shortest operating period as committed by the Group.
(vi)The allowance was a pilot project for strategic emerging industry clusters development, which was used to establish high performance ultra-thin electronic glass production lines by Qingyuan CSG. The allowance will be credited to income statement in 10 years, the useful life of the production line.
(vii)The balance represented amounts granted to Yi Chang CSG Silicon Materials Co., Ltd. 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, which will be amortised by 15 years according to the useful life of the converting station.
(viii)It represented the government supporting fund obtained by Yichang Silicon from the acquiring of the assets and liabilities of Crucible project of Yichang Hejing Photoelectric Ceramic Co., Ltd. The proceeds would be amortised and credited to income statement by 15 years after related assets were put into use.
(ix)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 by the Group.
(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 by 20 years in the estimated useful life of the relevant fixed assets.
(xi) It represented the funds granted by Hubei local government for inport discount complement and international corporation special subsidy. The grant will be amortised and credited to income statement by 12 and 14 years
(xii) It represented the special subsidy of Yichang National Regional Strategic Emerging Industry Development Pilot Project II, which is used to complement Yichang CSG Silicon “Hubei semiconductor silicon preparative technique project laboratory”. The grant will be amortised and credited to income statement by 15 years
(xiii)It represented the business combinations involving enterprises not under common control and the increase in deferred income arising from incorporating the deferred income of Shenzhen CSG Display into the consolidated scope.
(xiv) It represented the funds granted by Department of Hubei Xianning High-tech Industrial Park Administrative Committee for infrastructure construction which will be amortised by 10 years according to the useful life of the production line.
30. Share Capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed in the report period (+,-)||||||
||Opening||||||Closing|
|||Issuing of new||Transferred||||
||balance||Bonus shares||Others|Sub-total|balance|
|||shares||from reserves||||
|Total of capital|2,075,335,560||||||2,075,335,560|

CSG Semi-annual Report 2017
||
|-|
|shares|

The par value of the RMB-denominated ordinary shares is RMB1, and that of domestically listed foreign shares is HKD1.
31. Capital surplus
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|
||1,345,264,670|||1,345,264,670|
|Capital premium|||||
||-84,562,473|89,251,780||4,689,307|
|Other capital surplus|||||
||1,260,702,197|89,251,780||1,349,953,977|
|Total|||||

 Other capital reserve increased was mainly attributable to the interest-free loans provided by the shareholder, Shenzhen Jushenghua Co., Ltd. to the Company. Capital reserve increased of RMB 89,141,412 when interest of the loans was calculated on equity transactions.
32. Other comprehensive income
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Occuring in current period||||||
||||Less: Amount|||||
||||transferred into|||||
|||Amount|profit and loss in the|||||
||Opening|||Less:|After-tax|After-tax|Closing|
|Item||incurred|current period that|||||
||balance|||income|attribute to|attribute to|balance|
|||before|recognized into|||||
|||||tax|the parent|minority||
|||income|other|||||
|||||expense|company|shareholder||
|||tax|comprehensive|||||
||||income in prior|||||
||||period|||||
|II. Other comprehensive income|||||-1,076,264|||
|reclassified into profit and loss in|4,653,971|-1,076,264|||||3,577,707|
|future||||||||
|Differences on translation of foreign|||||-1,076,264|||
||2,103,971|-1,076,264|||||1,027,707|
|currency financial statements||||||||
|Finance incentives for energy and||||||||
||2,550,000||||||2,550,000|
|technical transformation||||||||
|Total of other comprehensive income|4,653,971|-1,076,264|||-1,076,264||3,577,707|

 33. Special reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increased this term|Decreased this term|Closing balance|

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Safety production cost|5,843,47|3 3,922,869|6,532,682|3,233,660|
|Total|5,843,47|3 3,922,869|6,532,682|3,233,660|

 34. Surplus reserves
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Beginning of term|Increased this term|Decreased this term|End of term|
||760,997,662|||760,997,662|
|Statutory surplus reserve|||||
||127,852,568|||127,852,568|
|Discretionary surplus reserve|||||
|Total|888,850,230|||888,850,230|

 35. Retained earnings
Unit: RMB
||||
|-|-|-|
|Items|The current period|The same period of last year|
|Retained earnings at the end of last year before|||
||3,576,949,573|3,637,206,565|
|adjustment|||
|Retained earnings at the beginning of this year|3,576,949,573||
|||3,431,556,565|
|after adjustment|||
|Add: net profits belonging to equity holders of the|||
||392,992,163|466,883,254|
|Company|||
||207,533,556|622,600,668|
|Less: Dividends payable|||
||3,762,408,180|3,275,839,151|
|Retained earnings in the end|||

 36. Revenue and cost
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in current term||Occurred in previous term||
|Item|||||
||Revenue|Cost|Revenue|Cost|
||4,914,535,874|3,730,914,851|4,184,209,383|3,052,534,128|
|Revenue from main operations|||||
||29,801,987|6,599,611|43,956,259|24,284,375|
|Revenue from other operations|||||
|Total|4,944,337,861|3,737,514,462|4,228,165,642|3,076,818,503|

 37. Tax and surcharge
Unit: RMB
||||
|-|-|-|
|Item|Occurred in current term|Occurred in previous term|
|City maintenance and construction tax|15,364,494|12,602,639|
|Educational surcharge|11,927,211|10,367,308|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Housing property tax|14,797,102|5,421,344|
|Land use rights|11,043,223|3,273,686|
|Business tax|2,411,686|1,073,483|
|Others|6,202,059|747,323|
|Total|61,745,775|33,485,783|

 38. Selling Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Freight expenses|76,391,481|59,381,190|
|Employee benefits|49,496,703|43,288,837|
|Entertainment expenses|5,674,868|5,179,120|
|Travelling expenses|5,113,500|4,811,124|
|Vehicle use fee|3,531,901|3,414,236|
|Rental expenses|3,029,551|2,588,324|
|General office expenses|1,536,282|2,001,995|
|Depreciation expenses|482,108|506,576|
|Others|11,088,337|7,393,429|
|Total|156,344,731|128,564,831|

 39. Administrative Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Research and development expenses|151,590,181|127,759,895|
|Employee benefits|135,166,127|113,606,280|
|Depreciation expenses|31,885,617|26,989,222|
|Amortisation of intangible assets|19,756,528|16,315,423|
|General office expenses|12,640,569|10,148,252|
|Taxation Expenses||17,604,458|
|Labour unior funds|7,083,212|4,948,671|
|Entertainment expenses|4,800,751|3,889,174|
|Travelling expenses|4,486,643|4,446,174|
|Water and electricity expense|4,529,626|5,086,006|
|Canteen costs|4,404,253|3,667,235|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Vehicle use fee|2,966,987|2,527,549|
|Rental expenses|2,457,132|1,403,376|
|Others|20,786,714|10,444,680|
|Total|402,554,340|348,836,395|

 40. Finance Expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Loan interest|157,228,769|134,008,214|
|Less: Capitalised interest|14,034,183|6,183,391|
||143,194,586|127,824,823|
|Interest expenses|||
|Less: Interest income|4,186,712|3,301,921|
|Exchange losses|2,109,890|4,217,530|
|Others|2,256,263|4,612,961|
|Total|143,374,027|133,353,393|

 41. Asset impairment loss
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|I. Provision for bad debts|1,108,695|-878,514|
|2. Provision for inventory depreciation||-46,858|
|Total|1,108,695|-925,372|

 42. Investment income
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Long-term equity investment accounted by equity method||-14,264,359|
|Total||-14,264,359|

 43. Other gains
Unit: RMB
||||
|-|-|-|
|Source of other gains|Occurred in current term|Occurred in previous term|
|Industry supporting fund|12,600,000.00|N/A|
|Government awards fund|4,323,546.00|N/A|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Subsidies for research and development|6,479,492.00|N/A|
|Energy saving subsidy|128,116.00|N/A|
|Others|143,080.00|N/A|
|Total|23,674,234.00|N/A|

 44. Non-operating income
Unit: RMB
|||||
|-|-|-|-|
||Occurred in current|Occurred in previous|Amount of non-recurring gain and loss|
|Items||||
||term|term|included in the report period|
|Total of gains from disposal of||||
||57,734|248,642|57,734|
|non-current assets||||
|Incl.：Gain on disposal of fixed assets|57,734|248,642|57,734|
|Government grants|14,826,965|47,606,029|14,826,965|
|Compensation income|146,436|462,552|146,436|
|Funds unpayable|520|171,592|520|
|Others|997,941|1,549,549|997,941|
|Total|16,029,596|50,038,364|16,029,596|

 45. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount of non-recurring|
|||Occurred in previous||
|Items|Occurred in current term||gain and loss included in|
|||term||
||||the report period|
|Total of loss from disposal of non-current assets|129,490|19,984|129,490|
|Incl. Loss from disposal of fixed assets|129,490|19,984|129,490|
|Donation|199,999|40,000|199,999|
|Loss on compensations||407,332||
|Others|403,103|194,312|403,103|
|Total|732,592|661,628|732,592|

 46. Income tax expenses
(1) List of income tax expenses
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Current income tax|74,283,293|57,280,962|
|Deferred income tax|6,169,728|20,562,202|
|Total|80,453,021|77,843,164|

 (2) Adjustment process of accounting profit and income tax expense
Unit: RMB
|||
|-|-|
|Items|Occurred in current term|
|Total profit|480,667,069|
|Current income tax expense accounted by tax and relevant regulations|66,102,580|
|Costs, expenses and losses not deductible for tax purposes|723,999|
|Influence of deductible temporary difference or deductible losses of||
||17,012,930|
|unrecognized deferred income tax assets||
|Final settlement of the previous year's income tax adjustment|-3,386,488|
|Income tax expenses|80,453,021|

 47. Other comprehensive income
The details can be found in notes to the financial statements.
48. Items of the cash flow statement
(1)Cash received relating to other operating activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Government grant|23,674,234|22,515,577|
|Interest income|4,186,712|3,301,921|
|Others|40,349,756|20,291,438|
|Total|68,210,702|46,108,936|

 (2)Cash paid relating to other operating activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Transportation expense|68,348,981|61,146,471|
|Canteen cost|21,140,169|19,735,042|
|Office expenses|16,993,639|13,568,857|

CSG Semi-annual Report 2017
||||
|-|-|-|
|R&D fees|26,795,302|19,470,201|
|Travelling expenses|12,971,903|11,839,397|
|Entertainment expenses|11,650,156|10,603,096|
|Vehicle use fee|7,589,416|7,147,877|
|Repairing fees|9,445,635|6,426,568|
|Rental expenses|4,103,767|4,439,417|
|Insurance expenses|6,679,946|4,823,957|
|Financing Commission|2,256,263|4,612,961|
|Others|63,287,032|59,101,076|
|Total|251,262,209|222,914,920|

 (3)Cash received relating to other investing operating activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Government grants received relating to assets|12,800,000|3,600,000|
|Collection trusted|11,239,200|11,239,200|
|Received repayment||14,860,684|
|Total|24,039,200|29,699,884|

 (4)Cash paid relating to other investing activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Payment for collection trusted||15,300,000|
|Payment for deposit and margin|31,475,182|6,464,586|
|Total|31,475,182|21,764,586|

 (5)Cash received relating to other financing activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Received interest free loan|1,381,000,000||
|Received mortgage loan|278,400,000||
|Received return money from the original|||
|||88,567,811|
|affiliated company Shenzhen CSG Display|||
|Collection of income tax of dividends of||7,289,494|

CSG Semi-annual Report 2017
||||
|-|-|-|
|A-share & B-share|||
|Collection|2,490,239||
|Received deposit and margin|4,701,291|4,868,673|
|Total|1,666,591,530|100,725,978|

 (6)Cash paid relating to other financing activities
Unit: RMB
||||
|-|-|-|
|Items|Occurred in current term|Occurred in previous term|
|Cash paid for financing lease of the|||
|original affiliated company Shenzhen||109,125,965|
|CSG Display|||
|Payment of income tax of dividends of|||
||1,701,507||
|A-share & B-share|||
|Cash paid for Commission fee|1,750,000||
|Total|3,451,507|109,125,965|

 49. 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|400,214,048|465,301,322|
|Add: Provisions for assets impairment|1,108,695|-925,372|
|Depreciation of fixed assets,|||
||480,563,388|413,138,016|
|gas and petrol depreciation production goods depreciation|||
|Amortisation of intangible assets|19,756,528|16,315,423|
|Losses on disposal of fixed assets , intangible assets and other|||
|long-term assets|71,756|-228,658|
|(“-“ for gains)|||
|Finance expenses|||
||143,194,586|127,824,823|
|(“-“ for gains)|||
|Investment|||
|||14,264,359|
|loss(“-“ for gains)|||
|Decrease in deferred tax assets|||
||11,754,644|21,032,799|
|(“-“ for increase)|||

CSG Semi-annual Report 2017
||||
|-|-|-|
|Increase of deferred income tax liability (“-“ for decrease)|-5,584,916|-470,597|
|Decrease of inventory (“-“ for increase)|-152,812,851|-9,920,347|
|Decrease of operational receivable items (“-“ for increase)|-132,167,898|-30,401,660|
|Increase of operational payable items (“-“ for decrease)|253,791,474|30,790,241|
|Net cash flow generated by business operation|1,019,889,454|1,046,720,349|
|2. Major investment and financing operation not involving with|||
||--|--|
|cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|932,050,522|404,710,155|
|Less: Initial balance of cash|584,566,990|574,744,877|
|Net increasing of cash and cash equivalents|347,483,532|-170,034,722|

 (2) Formation of cash and cash equivalents
Unit: RMB
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|I. Cash|932,050,522|584,566,990|
|Incl: Cash on hand|27,530|17,239|
|Cash at bank without restriction|932,022,992|584,549,751|
|others without restriction|||
|III. Balance of cash and cash equivalents at th end of the period|932,050,522|584,566,990|

 50. Assets of ownership or use right restricted
Unit: RMB
||||
|-|-|-|
|Item|Ending book value|Reason for restriction|
|||It’s the Company’s guarantee deposit for the application of opening letter of|
|Monetary fund|2,184,679||
|||credit and loan from the bank, which was restricted monetary fund.|
|Total|2,184,679|--|

51. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
|||||
|-|-|-|-|
||Closing balance of foreign||Closing|
|Item||Exchange rate||
||currency||balance convert to RMB|
|Cash at bank and on hand|--|--|40,648,532|

CSG Semi-annual Report 2017
|||||
|-|-|-|-|
|Incl: USD|4,578,142|6.7744|31,014,165|
|EUR|700|7.7496|5,425|
|HKD|10,986,291|0.8679|9,535,002|
|AUD|17,434|5.2099|90,829|
|JPY|51,421|0.0605|3,111|
|Accounts receivable|--|--|118,258,690|
|Incl: USD|16,372,361|6.7744|110,912,922|
|EUR|946,785|7.7496|7,337,205|
|HKD|9,866|0.8679|8,563|
|Short-term borrowings|||65,092,500|
|Incl: HKD|75,000,000|0.8679|65,092,500|
|Accounts payable|||98,782,030|
|Incl: USD|11,116,217|6.7744|75,305,700|
|HKD|306|0.8679|266|
|EUR|1,105,322|7.7496|8,565,803|
|JPY|246,450,595|0.0605|14,910,261|

 VIII. Changes in the scope of consolidation
1. The new subsidiary included in the consolidation scope in the period was Zhijiang CSG PV New Energy Co., Ltd. (hereinafter referred to as "Zhijiang PV Company").
IX. Interest in other entities
1. Interest in subsidiary
(1) Composition of the Group
||||||||
|-|-|-|-|-|-|-|
||Major business|||Shareholding (%)||Way of|
|Name of subsidiary||Place of registration|Scope of business||||
||location|||Direct|Indirect|acquicition|
||||Development, production and|75%|||
|Chengdu CSG Glass Co., Ltd.|Chengdu, the PRC|Chengdu, the PRC|||25%|Establishment|
||||sales of specialized glass||||
||||Development, production and||||
|Sichuan CSG Energy Conservation|Chengdu, the PRC|Chengdu, the PRC|sales of specialized glass and|75%|25%|Split-off|
||||processed glass||||
||||Development, production and||||
|Tianjin Energy Conservation Glass Co. Ltd|Tianjin, the PRC|Tianjin, the PRC|sales of specialized|75%|25%|Establishment|
||||energy-efficient glass||||

CSG Semi-annual Report 2017
||||||||
|-|-|-|-|-|-|-|
|Dongguan CSG Architectural Glass Co., Ltd.|Dongguan, the PRC|Dongguan, the PRC|Glass deep processing|75%|25%|Establishment|
||||Production and sales of solar||||
|Dongguan CSG Solar Glass Co., Ltd.|Dongguan, the PRC|Dongguan, the PRC||75%|25%|Establishment|
||||glass||||
||||Production and sales of||||
|Dongguan CSG PV-tech Co., Ltd.|Dongguan, the PRC|Dongguan, the PRC|high-tech green cell products||100%|Establishment|
||||and modules||||
||||Production and sales of High||||
|Yichang CSG Polysilicon Co., Ltd.|Yichang, the PRC|Yichang, the PRC||75%|25%|Establishment|
||||purity silicon materials||||
|Wujiang CSG North-east Architectural Glass Co., Ltd.|Wujiang, the PRC|Wujiang, the PRC|Glass deep processing|75%|25%|Establishment|
||||Production and sales of||||
|Hebei CSG Glass Co., Ltd.|Yongqing, the PRC|Yongqing, the PRC||75%|25%|Establishment|
||||specialized glass||||
||||Production and sales of||||
|Wujiang CSG Glass Co., Ltd.|Wujiang, the PRC|Wujiang, the PRC||100%||Establishment|
||||specialized glass||||
||||Trading and investment||||
|China Southern Glass (Hong Kong) Limited|Hong Kong|Hong Kong||100%||Establishment|
||||holding||||
||||Production and sales of||||
|Hebei Panel Glass Co., Ltd.|Yongqing, the PRC|Yongqing, the PRC||100%||Establishment|
||||ultra-thin electronic glass||||
||||Production and sales of||||
|Xianning CSG Glass Co Ltd.|Xianning, the PRC|Xianning, the PRC||75%|25%|Establishment|
||||specialized glass||||
|Xianning CSG Energy Conservation Glass Co Ltd.|Xianning, the PRC|Xianning, the PRC|Glass deep processing|75%|25%|Split-off|
||||Production and sales of||||
|Qingyuan CSG Energy Saving New Materials Co.,Ltd|Qingyuan, the PRC|Qingyuan, the PRC||100%||Establishment|
||||ultra-thin electronic glass||||
|Shenzhen CSG Display Technology Co., Ltd.|Shenzhen, the PRC|Shenzhen, the PRC|Glass for display device|60.80%||Acquisition|
||||Photoelectric glass and||||
|Xianning CSG Photoelectric Glass Co., Ltd.|Xianning, the PRC|Xianning, the PRC||37.50%|62.50%|Acquisition|
||||high-alumina glass||||

(2)The significant non-fully-owned subsidiaries of the Group
Unit: RMB
||||||
|-|-|-|-|-|
|||Total profit or loss|Dividends distributed||
||Shareholding|||Minority interest|
|||attributable to minority|to minority interests||
|Subsidiaries|of minority|||as at 30 June|
|||shareholders for the year|for the year ended 30||
||shareholders|||2017|
|||ended 30 June 2017|June 2017||
|Shenzhen CSG Display Technology Co., Ltd.|39.20%|5,787,351||311,685,657|

CSG Semi-annual Report 2017 (3) The major financial information of the significant non-fully-owned subsidiaries of the Group
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance||||||Opening balance||||||
|Name of|||||||||||||
||Currentassets|Non-current||Current|Non-current|Total|Current|Non-current||Current|Non-current|Total|
|Subsidiary|||Total assets||||||Total assets||||
|||assets||liabilities|liabilities|liabilities|assets|assets||liabilities|liabilities|liabilities|
|Shenzhen|262,179,100||||||||||||
|CSG Display|||||||||||||
|||1,347,074,249|1,609,253,349|505,674,968|314,316,352|819,991,320|211,285,238|1,338,686,341|1,549,971,579|541,303,424|233,139,941|774,443,365|
|Technology|||||||||||||
|Co., Ltd.|||||||||||||

Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Occurred in current term||||Occurred in previous term||||
|Name of|||||||Total|Cash flows from|
||||Total comprehensive|Cash flows from|||||
|Subsidiary|Revenue|Net profit|||Revenue|Net profit|comprehensive|operating|
||||income|operating activities|||||
||||||||income|activities|
|ShenzhenCSG DisplayTechnologyCo., Ltd.|||||||||
||228,993,498|14,924,574|14,924,574|27,884,582|37,282,745|-4,023,839|-4,023,839|19,571,109|

CSG Semi-annual Report 2017 X. Risk related to financial instrument
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk and interest rate risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.
(1) Market risk
(a) Foreign exchange risk
TheGroup’s major operational activities are carried out in Mainland China and a majority of the transactions are denominated in RMB. However, some of the export business is settled in foreign currency. Besides, the Group is exposed to foreign exchange risk arising from the recognised assets and liabilities, and future transactions denominated in foreign currencies, primarily with respect to US dollars and Euro. 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 2017 the carrying amounts in RMB equivalent of theGroup’s assets and liabilities denominated in foreign currencies are summarized below:
||||||
|-|-|-|-|-|
||30 June 2017||||
||USD|HKD|Others|Total|
|Financial assets denominated in foreign currency-|||||
|Cash at bank and on hand|31,014,165|9,535,002|99,365|40,648,532|
|Receivables|110,912,922|8,563|7,337,205|118,258,690|
||141,927,087|9,543,565|7,436,570|158,907,222|
|Financial liabilities denominated in foreigncurrency-|||||
|Short-term borrowings|-|65,092,500|-|65,092,500|
|Payables|75,305,700|266|23,476,064|98,782,030|
||75,305,700|65,092,766|23,476,064|163,874,530|

||||||
|-|-|-|-|-|
||31 December 2016||||
||USD|HKD|Others|Total|
|Financial assets denominated in foreign currency-|||||
|Cash at bank and on hand|24,360,614|5,551,402|840,393|30,752,409|
|Receivables|105,742,398|-|6,917,969|112,660,367|
||130,103,012|5,551,402|7,758,362|143,412,776|
|Financial liabilities denominated in foreigncurrency-|||||

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Short-term borrowings|-|67,087,500|-|67,087,500|
|Payables|74,140,797|275|24,217,998|98,359,070|
||74,140,797|67,087,775|24,217,998|165,446,570|

 As at 30 June 2017, if the currency had weakened/strengthened by10% against the USD while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 5,662,818 (31 December 2016: approximately RMB 4,756,788) lower/ higher for various financial assets and liabilities denominated in USD.
As at 30 June 2017, if the currency had strengthened /weakened by10% against the HKD while all other variables had been held constant, theGroup’s net profit for the year would have been approximately RMB 4,721,682 (31 December 2016: approximately RMB 5,230,592) higher/lower for various financial assets and liabilities denominated in HKD.
Other changes in exchange rate had no significant influence on the Group's operating activities.
(b) Interest rate risk
The Group's interest rate risk arises from long-term interest bearing borrowings including long-term borrowings and bonds payable. Financial liabilities issued at floating rates expose the Group to cash flow interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts depending on the prevailing market conditions. As at 30 June 2015, theGroup’s long-term interest-bearing debt at variable rates and fixed rates as illustrated below:
||||
|-|-|-|
||30 June 2017|31 December 2016|
|Debt at fixed rates|1,570,000,000|1,380,000,000|
|Debt at variable rates|54,000,000|58,660,000|
||1,624,000,000|1,438,660,000|

 The Group continuously monitors the interest rate position of the Group. Increases in interest rates will increase the cost of new borrowing and the interest expenses with respect to theGroup’s outstanding floating rate borrowings, and therefore could have a material adverse effect on theGroup’s financial position. The Group makes adjustments timely with reference to the latest market conditions, which includes increasing/decreasing long-term fixed rate debts at the anticipation of increasing/decreasing interest rate. (2) Credit risk
Credit risk is managed on the grouping basis. Credit risk mainly arises from cash at bank, notes receivable, accounts receivable and other receivables, etc.
The Group expects that there is no significant credit risk associated with cash at bank since they are deposited at state-owned banks and other medium or large size listed banks. Management does not expect that there will be any significant losses from
non-performance by these counterparties. Furthermore, as theGroup’s bank acceptance notes receivable are generally accepted by
the state-owned banks and other large and medium listed banks, the management believes the credit risk should be limited.
CSG Semi-annual Report 2017 In addition, the Group has policies to limit the credit exposure on accounts receivable, other receivables and trade acceptance notes receivable. The Group assesses the credit quality of and sets credit limits on its customers by taking into account their financial position, the availability of guarantee from third parties, their credit history and other factors such as current market conditions. The credit history of the customers is regularly monitored by the Group. In respect of customers with a poor credit history, the Group will use written payment reminders, or shorten or cancel credit periods, to ensure the overall credit risk of the Group is limited to a controllable extent.
(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 reserve, while maintaining sufficient headroom on its undrawn committed borrowing facilities from major financial institutions 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.
As at 30 June 2017, the Group had net current liabilities of approximately RMB 3.385 billion and committed capital expenditures of approximately RMB 390 million. Management will implement the following measures to ensure the liquidation risk limited to a controllable extent:
(a) The Group will have steady cash inflows from operating activities;
(b) The Group will pay the debts that mature and finance the construction projects through the existing bank facilities; and (c) The Group will closely monitoring the payment of construction expenditure in terms of payment time and amount.
The financial liabilities of the Group at the balance sheet date are analysed by their maturity date below at their undiscounted contractual cash as follows:
|||||||
|-|-|-|-|-|-|
|30 June 2017||||||
||Within 1 year|1 to 2 years|2 to 5 years|Over 5 years|Total|
|Short-term borrowings|2,439,522,457|-|-|-|2,439,522,457|
|Notes payable|114,500,000|-|-|-|114,500,000|
|Accounts payable|1,382,500,478|-|-|-|1,382,500,478|
|Interest payable|98,184,696|-|-|-|98,184,696|
|Dividend payable|207,533,556||||207,533,556|
|Other payables|844,823,887|-|-|-|844,823,887|
|Other current liabilities|300,000|-|-||300,000|
|Non-current liabilities duewithin one year|1,117,193,707|-|-|-|1,117,193,707|
|Long-term borrowings|78,992,500|306,409,062|1,474,047,671|-|1,859,449,233|
|Long-term payables|-|733,909,378|104,962,292|-|838,871,670|
||6,283,551,281|1,040,318,440|1,579,009,963|-|8,902,879,684|

CSG Semi-annual Report 2017
|||||||
|-|-|-|-|-|-|
|31 December 2016||||||
||Within 1 year|1 to 2 years|2 to 5 years|Over 5 years|Total|
|Short-term borrowings|4,043,966,809|-|-|-|4,043,966,809|
|Notes payable|20,000,000|-|-|-|20,000,000|
|Accounts payable|1,169,869,370|-|-|-|1,169,869,370|
|Interest payable|78,225,904|-|-|-|78,225,904|
|Other payables|188,321,450|-|-|-|188,321,450|
|Other current liabilities|300,000|-|-||300,000|
|Non-current liabilities duewithin one year|1,068,336,787|-|-|-|1,068,336,787|
|Long-term borrowings|73,188,850|290,439,172|1,287,871,345|-|1,651,499,367|
||6,642,209,170|290,439,172|1,287,871,345|-|8,220,519,687|

 XI. Disclosure of fair value
1. Fair value of financial assets and financial liabilities not measured at fair value
Thegroup’s financial assets and financial liabilities measured at amortized cost mainly include: accounts receivable, short-term borrowings, accounts payable, long term borrowings, bonds payable , long-term payables, ect.
Except for financial liabilities listed below, the carrying amount of the other financial assets and liabilities not measured at fair value is a reasonable approximation of their fair value.
30 June 2017 31 December 2016
Carrying amount F air value Carrying amount F air value
Financial liabilities -
Corporate bonds payable 1,000,000,000 999,500,000 1,000,000,000 1,009,177,000
Medium term notes 1,200,000,000 1,257,000,000 1,200,000,000 1,175,308,800
2,200,000,000 2,256,500,000 2,200,000,000 2,184,485,800
The fair values of payables and medium-term notes are the present value of the contractually determined stream of future cash flows at the rate of interest applied at that time by the market to instruments of comparable credit status and providing substantially the same cash flows on the same terms, thereinto bonds payable belongs to Level 1 and medium term notes belong to Level 2. XII. Related party and related Transaction
1. Parent company of the Company
The Company has no parent company.
2. Subsidiaries of the Company
The information of subsidiaries of the Company can be found in Notes to the financial statement.
CSG Semi-annual Report 2017 3. Joint venture of the Company
Shenzhen Nanbo Display Technology Co., Ltd. was transferred to the subsidiary of the Company from joint venture on 3 June, 2016. The Company has no joint venture on 30 June 2017.
4. Other related parties
|||
|-|-|
|Name of other related parties|Relations between other related parties and the Company|
|Shenzhen Jushenghua Co. Ltd.|The person acting in concert of the Company's largest shareholder|

 5. Related transaction
(1) Transaction of acquisition of goods, offering and reception of labor service
List of selling goods/offering labor service
Unit: RMB
|||||
|-|-|-|-|
|Related party|Contents of related transaction|Occurred in this term|Occurred in previous term|
|Shenzhen CSG Display Technology Co., Ltd.|sales of goods||9,665,275|

 6. Others
Commitments in relation to related parties
The commitments in relation to related parties contracted for but not yet necessary to be recognised on the balance sheet by the Group as at the balance sheet date are as follows:
On 22 November 2016, the Company received a letter from its shareholder, Jushenghua, stating that to support theGroup’s steady operation and development, Jushenghua, as the shareholder of the Company, would like to offer interest-free borrowings with the total amount of RMB 2,000,000,000 to the Company or through related parties designated by it. For any borrowing drawn, its repayment date is negotiated by the Company and Jushenghua upon withdrawal.When a borrowing is due, if an extension is needed, the Company can apply to the actual lender based on theCompany’s operation; where the actual lender agrees with the extension application, the term of the borrowing is extended accordingly. As of 30 June 2017, the shareholder had provided RMB 700,000,000 long-term interest-free loans and RMB 650,000,000 short-term interest-free loans.
XIII. Commitments and contingency
Capital expenditures commitments
Capital expenditures contracted for by the Group at the balance sheet date but are not yet necessary to be recognised on the balance sheet are as follows:
||||
|-|-|-|
||30 June 2017|31 December 2016|
|Buildings,machinery and equipment|386,575,774|280,938,401|

CSG Semi-annual Report 2017 XIV. Other significant events
1. Segment information
(1) Definition foundation and accounting policy of segment
To meet operating strategies and requirements of business development, the Group adjusted its operating structure in the period. TheGroup’s management allocated resources, evaluated segment performance, updated reporting segment, and disclosed segment information according to revised operating segments in the period. Segment information of prior year had been restated in accordance with updated reporting segments.
-Glass segment, being engaged in the production and sales of glass products and silica sand required for the production of glass -Solar Energy Segment, being engaged in the production and sales of polysilicon and solar modules, as well as construction and operation of photovoltaic power plants
-Electronic glass and display Segment, being engaged in the production and sales of ultrathin electronic glass and display products
The reportable segments of the Group are the business units that provide different products or service. Different businesses require different technologies and marketing strategies. The Group, therefore, separately manages the production and operation of each reportable segment and evaluates their operating results respectively, in order to make decisions about resources to be allocated to these segments and to assess their performance.
Inter-segment transfer prices are measured by reference to selling prices to third parties.
The assets are allocated based on the operations of the segment and the physical location of the asset. The liabilities are allocated based on the operations of the segment. Expenses indirectly attributable to each segment are allocated to the segments based on the proportion of eachsegment’s revenue.
(2)Financial information of segment
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Glass|Solar Energy|Electronicglass anddisplay|Others|Unallocated|||
|Item||||||Elimination|Total|
|Revenue from externalcustomers||||||||
||3,206,687,159|1,369,755,550|367,265,891||629,261||4,944,337,861|
|Inter-segment revenue|18,599,065|18,083,108|198,902||26,666,005|-63,547,080||
|Interest income|491,062|2,397,326|56,932||3,528,724|-2,287,332|4,186,712|
|Interest expenses|70,412,931|37,231,830|15,045,705||22,791,452|-2,287,332|143,194,586|
|Asset impairment reversal|946,289|-62,414|217,114||7,706||1,108,695|
|Depreciation andamortization expenses||||||||
||299,606,450|134,711,851|62,922,138||3,079,477||500,319,916|

CSG Semi-annual Report 2017
|||||||||
|-|-|-|-|-|-|-|-|
|Total profit|392,627,615|118,589,867|37,245,148|-773|-64,588,492|-3,206,296|480,667,069|
|Income tax expenses|52,290,936|13,020,016|15,176,880||-34,811||80,453,021|
|Net profit|340,336,679|105,569,851|22,068,268|-773|-64,553,681|-3,206,296|400,214,048|
|Total assets|8,982,177,389|4,952,619,591|2,968,323,479|134,388|1,027,026,766||17,930,281,613|
|Total liabilities|2,162,476,308|793,195,356|695,646,857|2,502,814|5,865,531,905||9,519,353,240|
|Additions of non-currentassets other thanlong-term equityinvestments||||||||
||92,971,231|404,028,047|222,862,634||1,886,129||721,748,041|

(3) Other statement
TheGroup’s revenue from external customers domestically and in foreign countries or geographical areas, and the total non-current assets other than financial assets and deferred tax assets located domestically and in foreign countries or geographical areas are as follows:
||||
|-|-|-|
|Revenue from external customers|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Mainland|4,453,794,331|3,742,134,566|
|Hong Kong|159,110,247|46,568,633|
|Europe|10,469,923|34,282,849|
|Asia (other than Mainland and Hong Kong)|284,803,871|316,839,177|
|Australia|23,668,506|19,557,991|
|North America|9,235,672|64,008,117|
|Other region|3,255,311|4,774,309|
||4,944,337,861|4,228,165,642|

||||
|-|-|-|
|Total non-current assets|30 June 2017|31 December 2016|
|Mainland|14,606,514,921|14,392,447,014|
|Hong Kong|12,563,601|12,551,254|
||14,619,078,522|14,404,998,268|

 The Group has a large number of customers, but no revenue from a single customer exceed10% or more of theGroup’s revenue. XV. Notes to Financial Statements of the Parent Company
1. Other accounts receivable
(1) Other accounts receivable disclosed by category:
Unit: RMB
CSG Semi-annual Report 2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Openning balance|||||
||||Bad debt|||Book balance||Bad debt|||
||Book balance||||||||||
|Categories|||provision|||||provision|||
||||||Book value|||||Book value|
|||Propor|Amou|Propor|||Proportion %||Propor||
||Amount|||||Amount||Amount|||
|||tion %|nt|tion %|||||tion %||
|Other accounts|||||||||||
|receivable|||||||||||
|withdrawn bad|||||||||||
|debt provision|3,416,531,057|100%|16,511|0%|3,416,514,546|3,863,129,835|100%|8,806|0%|3,863,121,029|
|according to credit|||||||||||
|risks|||||||||||
|characteristics|||||||||||
|Total|3,416,531,057|100%|16,511|0%|3,416,514,546|3,863,129,835|100%|8,806|0%|3,863,121,029|

 Other accounts receivable with large amount and were provided bad debt provisions individually at end of period.
□ Applicable√ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on aging analysis basis
□ Applicable√ Non-applicable
Other accounts receivable in the portfolio on which bad debt provisions were provided on percentage basis
√ Applicable□ Non-applicable
Unit: RMB
|||||
|-|-|-|-|
||Closing balance|||
|Name of portfolio||||
||Other receivable accounts|Bad debt provision|proportion%|
|portfolio 1|825,597|16,511|2%|
|portfolio 2|3,415,705,460|||
|Total|3,416,531,057|16,511|0%|

 Explanation for determining the basis of the portfolio:
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis
□ Applicable√ Non-applicable
(2) Accounts receivable withdraw, reversed or collected during the reporting period
The amount of provision for bad debts during the report period was RMB 7,705. The amount of the reversed or collected part during the report period was RMB 0.
(3) Other accounts receivable classified by the nature of accounts
Unit: RMB
||||
|-|-|-|
|Nature of accounts|Ending book balance|Beginning book balance|
|Others|825,597|423,416|
|Accounts receivable of related party|3,415,705,460|3,862,706,419|

CSG Semi-annual Report 2017
||||
|-|-|-|
|Total|3,416,531,057|3,863,129,835|

 (4) Top 5 of the closing balance of the other accounts receivable collated according to the arrears party Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the total|Closing|
||Nature of|||||
|Name of the company||Closing balance|Ages|year end balance of the|balance of bad|
||accounts|||||
|||||accounts receivable (%)|debt provision|
|Yichang CSG Polysilicon Co., Ltd.|Subsidiary|1,304,538,480|Within 1 year|38%|0|
|Hebei CSG Glass Co., Ltd.|Subsidiary|333,719,030|Within 1 year|10%|0|
|Qingyuan CSG Energy Conservation|Subsidiary|||||
|||298,547,212||9%|0|
|New Meterials Co., Ltd.|||Within 1 year|||
|Dongguan CSG PV-tech Co., Ltd.|Subsidiary|226,825,146|Within 1 year|7%|0|
|Yichang CSG Display Co.,Ltd.|Subsidiary|195,317,564|Within 1 year|6%|0|
|Total|--|2,358,947,432|--|70%||

2. Long-term equity investment
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Investment in|||||||
||4,805,440,632|15,000,000|4,790,440,632|4,805,440,632|15,000,000|4,790,440,632|
|subsidiaries|||||||
|Total|4,805,440,632|15,000,000|4,790,440,632|4,805,440,632|15,000,000|4,790,440,632|

 (1) Inventment in subsidiaries
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||||Provision for|Closing balance|
||Opening|Increase in|Decrease in||||
|Invested company||||Closing balance|impairment of the|of impairment|
||balance|the term|the term||||
||||||current period|provision|
|Chengdu CSG Glass Co., Ltd.|146,679,073|||146,679,073|||
|Sichuan CSG Energy Conservation|115,290,583|||115,290,583|||
|Tianjin Energy Conservation Glass Co. Ltd|242,902,974|||242,902,974|||
|Dongguan CSG Architectural Glass Co., Ltd.|193,618,971|||193,618,971|||
|Dongguan CSG Solar Glass Co., Ltd.|349,446,826|||349,446,826|||
|Yichang CSG Polysilicon Co., Ltd.|632,958,044|||632,958,044|||

CSG Semi-annual Report 2017
|||||
|-|-|-|-|
|Wujiang CSG North-east Architectural Glass||||
||251,313,658|251,313,658||
|Co., Ltd.||||
|Hebei CSG Glass Co., Ltd.|261,998,368|261,998,368||
|China Southern Glass (Hong Kong) Limited|85,742,211|85,742,211||
|Wujiang CSG Glass Co., Ltd.|562,179,564|562,179,564||
|Hebei Panel Glass Co., Ltd.|243,062,801|243,062,801||
|Jiangyou CSG Mining Development Co.||||
||100,725,041|100,725,041||
|Ltd.||||
|Xianning CSG Glass Co Ltd.|177,041,818|177,041,818||
|Xianning CSG Energy Conservation Glass Co||||
||161,281,576|161,281,576||
|Ltd.||||
|Qingyuan CSG Energy Saving New Materials||||
||300,185,609|300,185,609||
|Co.,Ltd||||
|Shenzhen CSG Financial Leasing Co.,||||
||133,500,000|133,500,000||
|Ltd.||||
|Shenzhen CSG PV Energy Co., Ltd.|100,000,000|100,000,000||
|Shenzhen CSG Display Technology Co., Ltd.|542,027,830|542,027,830||
|Xianning CSG Photoelectric Glass Co., Ltd.|38,250,000|38,250,000||
|Others(ii)|167,235,685|167,235,685|15,000,000|
|Total|4,805,440,632|4,805,440,632|15,000,000|

 (2) Other notes
As at June 30, 2017, long-term equity investment in subsidiaries contained the restricted stocks granted by the Company to the Employees of subsidiaries of the company, and the Company did not charge any fees for the restricted stocks which was deemed as an increase of costs of Long-term equity investment for subsidiaries by RMB 109,035,321 (31 December 2016: RMB109,035,321).
The subsidiaries which have made provision for impairment were basically closed down in the previous year, and the provision for impairment for the long-term equity investment of them had been made by the Company according to the recoverable amount. 3. Operating income and operating costs
Unit: RMB
||||||
|-|-|-|-|-|
||Occurred in this term||Occurred in previous term||
|Item|||||
||Income|Costs|Income|Costs|
|Main business|0|0|0|0|
|Other business|27,295,266|0|1,077,394|60,334|

CSG Semi-annual Report 2017
||||||
|-|-|-|-|-|
|Total|27,295,266|0|1,077,394|60,334|

 4. Investment income
Unit: RMB
||||
|-|-|-|
|Item|Occurred in this term|Occurred in previous term|
|Long-term equity investment accounted by cost method||389,430,562|
|Long-term equity investment accounted by equity method||9,850,045|
|Total||399,280,607|

 XVI. Supplementary Information
1. 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 accrued for impairment|-71,756||
|of assets)|||
|Governmental subsidy reckoned into current gains/losses (not including the subsidy enjoyed in quota|38,501,199||
|or ration according to national standards, which are closely relevant to enterprise’s business)|||
|Other non-operating income and expenditure except for the aforementioned items|541,795||
|Less: Impact on income tax|5,814,362||
|Impact on minority shareholders’ equity (post-tax)|1,109,957||
|Total|32,046,919|--|

 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
2. Return on equity and earnings per share
|||||
|-|-|-|-|
||The weighted|Earnings per share||
|Profit in the report period|average net|basic earnings per|diluted earnings per|
||assets ratio|share (RMB/share)|share (RMB/share)|
|Net profit attributable to shareholders of the listed company(RMB)|4.94%|0.19|0.19|
|Net profit attributable to shareholders of the listed company after||||
||4.54%|0.17|0.17|
|deducting non-recurring gains and losses(RMB)||||

CSG Semi-annual Report 2017 3. Difference of accounting data under domestic and overseas accounting standards
(1) Differences of the net profit and net assets disclosed in financial report prepared under international and Chinese accounting standards
□ Applicable√ Not applicable
(2) Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chinese accounting standards
□ Applicable√ Not applicable
CSG Semi-annual Report 2017 Section X. 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, responsible person in charge of accounting and person in charge of financial institution;
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.
22 August 2017