南玻B:2017年半年度财务报告(英文版)
FinancialReportofSemi-annualReport2017
(I)Auditors’Report
WhethertheSemi-annualReporthasbeenauditedornot
□Yes√No
TheSemi-annualReportoftheCompanyhasnotbeenaudited.
(II)FinancialStatements
AllfiguresintheNotestotheFinancialStatementsareinRMB.
1.ConsolidatedBalanceSheet
PreparedbyCSGHoldingCo.,Ltd.
Unit:RMB
Item Endingbalance Beginningbalance
Currentasset:
Monetarycapital 934,235,201 586,803,505
Settlementprovision
Outgoingcallloan
Financialassetsmeasuredatfairvaluewithvariations
accountedintocurrentincomeaccount
Derivativefinancialassets
Notesreceivable 536,557,203 456,347,237
Accountreceivable 679,943,915 627,985,983
Prepayment 162,247,377 95,733,132
Insurancereceivable
Reinsurancereceivable
ProvisionsofReinsurancecontractsreceivable
Interestreceivable
Dividendreceivable
Otheraccountreceivable 33,559,090 33,229,149
Repurchasingoffinancialassets
Inventories 630,593,776 477,780,925
Assetsheldforsales
Non-currentassetduein1year
Othercurrentasset 249,369,319 199,905,577
Totalofcurrentasset 3,226,505,881 2,477,785,508
Non-currentassets
Loansandpaymentonother’sbehalfdisbursed
Available-for-salefinancialasset
Expiredinvestmentinpossess
Long-termreceivable
Long-termshareequityinvestment
Investmentrealestates
Fixedassets 11,773,502,135 11,457,972,991
Constructioninprocess 1,259,425,371 1,362,096,377
Engineeringgoods
Fixedassetdisposal
Productionphysicalassets
Gas&petrol
Intangibleassets 1,021,669,447 1,032,458,977
R&Dexpense 76,049,471 66,927,714
Goodwill 397,392,156 397,392,156
Long-termamortizableexpenses 9,693,102 975,660
Differedincometaxasset 84,697,210 96,451,854
Othernon-currentasset 81,346,840 87,174,393
Totalofnon-currentassets 14,703,775,732 14,501,450,122
Totalofassets 17,930,281,613 16,979,235,630
Currentliabilities
Short-termloans 2,399,694,000 4,017,869,662
LoanfromCentralBank
Depositreceivedandholdforothers
Callloanreceived
Financial liabilities measured at fair value with
variationsaccountedinto
Derivativefinancialliabilities
Notespayable 114,500,000 20,000,000
Accountpayable 1,382,500,478 1,169,869,370
Prepaymentreceived 201,549,137 142,330,979
Sellingofrepurchasedfinancialassets
Feesandcommissionsreceivable
Employees’wagepayable 173,186,321 193,372,239
Taxpayable 87,961,271 115,592,616
Interestpayable 98,184,696 78,225,904
Dividendpayable 207,533,556
Otheraccountpayable 844,823,887 188,321,450
Reinsurancefeepayable
Insurancecontractprovision
Entrustedtradingofsecurities
Entrustedsellingofsecurities
Liabilitiesheldforsales
Non-currentliabilityduein1year 1,101,203,702 1,029,340,000
Othercurrentliability 300,000 300,000
Totalofcurrentliability 6,611,437,048 6,955,222,220
Non-currentliabilities
Long-termborrowings 1,624,000,000 1,438,660,000
Bondpayable
Including：preferredstock
Sustainabledebt
Long-termpayable 838,871,670
Long-termpayableemployees’sremuneration
Specialpayable
Anticipatedliabilities
Differedincome 420,880,301 422,993,254
Differedincometaxliability 24,164,221 29,749,137
Othernon-recurringliabilities
Totalofnon-currentliabilities 2,907,916,192 1,891,402,391
Totalofliability 9,519,353,240 8,846,624,611
Owners’equity
Sharecapital 2,075,335,560 2,075,335,560
Otherequityinstruments
Including：preferredstock
Sustainabledebt
Capitalreserves 1,349,953,977 1,260,702,197
Less:Sharesinstock
Othercomprehensiveincome 3,577,707 4,653,971
Specialreserves 3,233,660 5,843,473
Surplusreserves 888,850,230 888,850,230
Commonriskprovision
Undistributedprofit 3,762,408,180 3,576,949,573
Totalofowner’sequitybelongtotheparentcompany 8,083,359,314 7,812,335,004
Minorshareholders’equity 327,569,059 320,276,015
Totalofowners’equity 8,410,928,373 8,132,611,019
Totalofliabilityandowners’equity 17,930,281,613 16,979,235,630
LegalRepresentative：ChenLin CFO：PanYonghong Managerofthefinancialdepartment：WangWenxin
2.BalanceSheetoftheParentCompany
Unit:RMB
Item Endingbalance Beginningbalance
Currentasset:
Monetarycapital 559,161,574 302,841,481
Financialassetsmeasuredatfairvaluewithvariations
accountedintocurrentincomeaccount
Derivativefinancialassets
Notesreceivable
Accountreceivable
Prepayment 1,750,000 16,880
Interestreceivable
Dividendreceivable
Otheraccountreceivable 3,416,514,546 3,863,121,029
Inventories
Assetsheldforsales
Non-currentassetduein1year
Othercurrentasset
Totalofcurrentasset 3,977,426,120 4,165,979,390
Non-currentassets
Available-for-salefinancialasset
Expiredinvestmentinpossess
Long-termreceivable 2,003,645,000 2,003,645,000
Long-termshareequityinvestment 4,790,440,632 4,790,440,632
Investmentrealestates
Fixedassets 23,798,714 26,073,848
Constructioninprocess
Engineeringgoods
Fixedassetdisposal
Productionphysicalassets
Gas&petrol
Intangibleassets 1,167,664 1,393,454
R&Dexpense
Goodwill
Long-termamortizableexpenses
Differedincometaxasset
Othernon-currentasset
Totalofnon-currentassets 6,819,052,010 6,821,552,934
Totalofassets 10,796,478,130 10,987,532,324
Currentliabilities
Short-termloans 1,690,000,000 3,495,163,044
Financial liabilities measured at fair value with
variationsaccountedinto
Derivativefinancialliabilities
Notespayable
Accountpayable 34,528 317,874
Prepaymentreceived
Employees’wagepayable 42,237,698 18,380,010
Taxpayable 1,019,727 1,804,568
Interestpayable 8,767,301 3,794,646
Dividendpayable 207,533,556
Otheraccountpayable 1,151,107,561 240,593,894
Liabilitiesheldforsales
Non-currentliabilityduein1year 1,000,000,000 1,000,000,000
Othercurrentliability
Totalofcurrentliability 4,100,700,371 4,760,054,036
Non-currentliabilities
Long-termborrowings 1,380,000,000 1,380,000,000
Bondpayable
Including：preferredstock
Sustainabledebt
Long-termpayable 649,823,518
Long-termpayableemployees’sremuneration
Specialpayable
Anticipatedliabilities
Differedincome 16,280,660 12,035,040
Differedincometaxliability
Othernon-recurringliabilities
Totalofnon-currentliabilities 2,046,104,178 1,392,035,040
Totalofliability 6,146,804,549 6,152,089,076
Owners’equity
Sharecapital 2,075,335,560 2,075,335,560
Otherequityinstruments
Including：preferredstock
Sustainabledebt
Capitalreserves 1,494,670,923 1,405,529,511
Less:Sharesinstock
Othercomprehensiveincome
Specialreserves
Surplusreserves 903,395,590 903,395,590
Undistributedprofit 176,271,508 451,182,587
Totalofowners’equity 4,649,673,581 4,835,443,248
Totalofliabilityandowners’equity 10,796,478,130 10,987,532,324
3.ConsolidatedIncomeStatement
Unit:RMB
Item Balanceofthisperiod Balanceoflastperiod
I.Totalrevenue 4,944,337,861 4,228,165,642
Incl.Businessincome 4,944,337,861 4,228,165,642
Interestincome
Insurancefeeearned
Feeandcommissionreceived
II.Totalbusinesscost 4,502,642,030 3,720,133,533
Incl.Businesscost 3,737,514,462 3,076,818,503
Interestexpense
Feeandcommissionpaid
Insurancedischargepayment
Netclaimamountpaid
Netinsurancepolicyreservesprovided
Insurancepolicydividendpaid
Reinsuranceexpenses
Taxandsurcharge 61,745,775 33,485,783
Salesexpense 156,344,731 128,564,831
Administrativeexpense 402,554,340 348,836,395
Financialexpenses 143,374,027 133,353,393
Assetimpairmentloss 1,108,695 -925,372
Plus:gainsfromchangeoffairvalue(“-“forloss)
Investmentgains(“-“forloss) -14,264,359
Incl.Investmentgainsfromaffiliates -14,264,359
Exchangegains(“-“forloss)
Othergains 23,674,234
III.Operationalprofit(“-“forloss) 465,370,065 493,767,750
Plus:non-operationalincome 16,029,596 50,038,364
Incl.Incomefromdisposalofnon-currentassets 57,734 248,642
Less:non-operationalexpenditure 732,592 661,628
Incl.Lossfromdisposalofnon-currentassets 129,490 19,984
IV.Grossprofit(“-“forloss) 480,667,069 543,144,486
Less:Incometaxexpenses 80,453,021 77,843,164
V.Netprofit(“-“fornetloss) 400,214,048 465,301,322
Net profit attributable to the owners of parent
392,992,163 466,883,254
company
Minorshareholders’equity 7,221,885 -1,581,932
VI.Netamountofothergainsaftertax -1,076,264 508,053
Netamountofothergainsaftertaxattributableto
-1,076,264 508,053
ownersofparentcompany
(I)Othercomprehensiveincome thatwillnotbe
reclassifiedintogains/lossesafterward
1.Changeofnetliabilityorassetofbeneficiaryplan
fromrecalculating
2.Theshareof comprehensiveincomeininvested
entities under equity method which can not be
reclassifiedintoprofitorloss
(II)Othercomprehensiveincomeitemsthatwillbe
reclassified into gains/losses in the subsequent -1,076,264 508,053
accountingperiod
1.Theshareof comprehensiveincomeininvested
entities under equity method which can be
reclassifiedintoprofitorlossafterward
2.Gains and losses from changes in fair value
availableforsalefinancialassets
3.Held-to-maturityinvestmentsreclassifiedtogains
andlossesofavailableforsalefinancialassets
4.Theeffectiveportionofcashflowhedgesandlosses
5.Translation differences in currency financial
-1,076,264 508,053
statements
6.Other
Net of profit of other comprehensive income
attributabletoMinorityshareholders’equity
VII.Totalofmisc.incomes 399,137,784 465,809,375
Totalofmisc.incomesattributabletotheownersof
391,915,899 467,391,307
theparentcompany
Total misc gains attributable to the minor
7,221,885 -1,581,932
shareholdersVIII. Earningspershare:(I)Basicearningspershare 0.19 0.22(II)Dilutedearningspershare 0.19 0.22LegalRepresentative：ChenLin CFO：PanYonghong Managerofthefinancialdepartment：WangWenxin4.IncomeStatementoftheParentCo. Unit:RMB Items Balanceofthisperiod Balanceoflastperiod
I.Revenue 27,295,266 1,077,394
Less:businesscost 0 60,334
Taxandsurcharge 5,136,944 94,720
Salesexpense
Administrativeexpense 70,540,224 61,812,557
Financialexpenses 19,800,295 11,263,822
Assetimpairmentloss 7,706 -1,770,242
Plus:gainsfromchangeoffairvalue(“-“forloss)
Investmentgains(“-“forloss) 399,280,607
Incl.Investmentgainsfromaffiliates 9,850,045
Othergains 18,000
II.Operationalprofit(“-“forloss) -68,171,903 328,896,810
Plus:non-operationalincome 794,380 766,180
Incl.Incomefromdisposalofnon-currentassets 1,800
Less:non-operationalexpenditure
Incl.Lossfromdisposalofnon-currentassets
III.Grossprofit(“-“forloss) -67,377,523 329,662,990
Less:Incometaxexpenses 0 -45,852
IV.Netprofit(“-“fornetloss) -67,377,523 329,708,842
V.Netamountofothergainsaftertax
(I)Othercomprehensiveincome thatwillnotbe
reclassifiedintogains/lossesafterward
1.Changeofnetliabilityorassetofbeneficiaryplan
fromrecalculating
2.Theshareof comprehensiveincomeininvested
entities under equity method which can not be
reclassifiedintoprofitorloss
(II)Othercomprehensiveincomeitemsthatwillbe
reclassified into gains/losses in the subsequent
accountingperiod
1.Theshareof comprehensiveincomeininvested
entities under equity method which can be
reclassifiedintoprofitorlossafterward
2.Gains and losses from changes in fair value
availableforsalefinancialassets
3.Held-to-maturityinvestmentsreclassifiedtogains
andlossesofavailableforsalefinancialassets
4.Theeffectiveportionofcashflowhedgesandlosses
5.Translation differences in currency financial
statements
6.Other
VI.Totalofmisc.incomes -67,377,523 329,708,842
VII. Earningspershare:
(I)Basicearningspershare
(II)Dilutedearningspershare
5.ConsolidatedCashFlowStatement
Unit:RMB
Item Balanceofthisperiod Balanceoflastperiod
I.Netcashflowfrombusinessoperation
Cashreceivedfromsalesofproductsandprovidingof
5,472,732,654 4,822,965,397
services
Netincreaseofcustomerdepositsandcapitalkeptfor
brothercompany
Netincreaseofloansfromcentralbank
Netincreaseofinter-bankloansfromotherfinancial
bodies
Cashreceivedagainstoriginalinsurancecontract
Netcashreceivedfromreinsurancebusiness
Netincreaseofclientdepositandinvestment
Net increase of disposal of the financial assets
measuredbyfairvaluewiththechanges includedin
thecurrentgainsandlosses
Cash received as interest, processing fee, and
commission
Netincreaseofinter-bankfundreceived
Netincreaseofrepurchasingbusiness
Taxreturned 7,273,335 35,363,638
Othercashreceivedfrombusinessoperation 68,210,702 46,108,936
Sub-totalofcashinflowfrombusinessactivities 5,548,216,691 4,904,437,971
Cashpaidforpurchasingofmerchandiseandservices 3,278,955,888 2,769,544,694
Netincreaseofclienttradeandadvance
Netincreaseofsavingsincentralbankandbrother
company
Cashpaidfororiginalcontractclaim
Cashpaidforinterest,processingfeeandcommission
Cashpaidforpolicydividend
Cashpaidtostaffsorpaidforstaffs 617,464,364 529,127,685
Taxespaid 380,644,776 336,130,323
Othercashpaidforbusinessactivities 251,262,209 222,914,920
Sub-totalofcashoutflowfrombusinessactivities 4,528,327,237 3,857,717,622
Cashflowgeneratedbybusinessoperation,net 1,019,889,454 1,046,720,349
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving
Cashreceivedasinvestmentprofit
Net cashretrieved from disposal of fixedassets,
44,820 617,985
intangibleassets,andotherlong-termassets
Netcashreceivedfromdisposalofsubsidiariesor
otheroperationalunits
Otherinvestment-relatedcashreceived 24,039,200 29,699,884
Sub-totalofcashinflowduetoinvestmentactivities 24,084,020 30,317,869
Cashpaidforconstructionoffixedassets,intangible
731,954,148 472,503,623
assetsandotherlong-termassets
Cashpaidasinvestment 4,250,000
Netincreaseofloanagainstpledge
Net cash received from subsidiaries and other
507,974,099
operationalunits
Othercashpaidforinvestmentactivities 31,475,182 21,764,586
Sub-totalofcashoutflowduetoinvestmentactivities 763,429,330 1,006,492,308
Netcashflowgeneratedbyinvestment -739,345,310 -976,174,439
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment 5,500,000
Incl. Cash received as investment from minor
5,500,000
shareholdersCashreceivedasloans 1,452,919,750 4,443,422,252CashreceivedfrombondplacingOtherfinancing-relatedcashreceived 1,666,591,530 100,725,978Subtotalofcashinflowfromfinancingactivities 3,119,511,280 4,549,648,230
Cashtorepaydebts 2,924,757,768 3,988,397,915
Cashpaidasdividend,profit,orinterests 123,450,004 693,264,874
Incl. Dividendandprofit paid by subsidiaries to
minorshareholders
Othercashpaidforfinancingactivities 3,451,507 109,125,965
Subtotalofcashoutflowduetofinancingactivities 3,051,659,279 4,790,788,754
Netcashflowgeneratedbyfinancing 67,852,001 -241,140,524
IV.Influenceofexchangeratealternationoncashand
-912,613 559,892
cashequivalents
V.Netincreaseofcashandcashequivalents 347,483,532 -170,034,722
Plus:Balanceofcashandcashequivalentsat the
584,566,990 574,744,877
beginningofterm
VI.Balanceofcashandcashequivalentsattheendof
932,050,522 404,710,155
term
6.CashFlowStatementoftheParentCo.
Unit:RMB
Item Balanceofthisperiod Balanceoflastperiod
I.Netcashflowfrombusinessoperation
Cashreceivedfromsalesofproductsandprovidingof
services
Taxreturned
Othercashreceivedfrombusinessoperation 4,843,988 2,616,039
Sub-totalofcashinflowfrombusinessactivities 4,843,988 2,616,039
Cashpaidforpurchasingofmerchandiseandservices
Cashpaidtostaffsorpaidforstaffs 33,652,141 62,007,982
Taxespaid 6,095,316 39,306,033
Othercashpaidforbusinessactivities 12,279,684 6,551,752
Sub-totalofcashoutflowfrombusinessactivities 52,027,141 107,865,767
Cashflowgeneratedbybusinessoperation,net -47,183,153 -105,249,728
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving
Cashreceivedasinvestmentprofit 389,430,562
Net cashretrieved from disposal of fixedassets, 1,800
intangibleassets,andotherlong-termassets
Netcashreceivedfromdisposalofsubsidiariesor
otheroperationalunits
Otherinvestment-relatedcashreceived 5,000,000 3,000,000
Sub-totalofcashinflowduetoinvestmentactivities 5,000,000 392,432,362
Cashpaidforconstructionoffixedassets,intangible
565,260 117,326
assetsandotherlong-termassets
Cashpaidasinvestment 175,755,000
Net cash received from subsidiaries and other
464,345,956
operationalunits
Othercashpaidforinvestmentactivities
Sub-totalofcashoutflowduetoinvestmentactivities 565,260 640,218,282
Netcashflowgeneratedbyinvestment 4,434,740 -247,785,920
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment
Cashreceivedasloans 990,693,638 4,110,000,600
Cashreceivedfrombondplacing
Otherfinancing-relatedcashreceived 1,806,455,260 326,432,420
Subtotalofcashinflowfromfinancingactivities 2,797,148,898 4,436,433,020
Cashtorepaydebts 2,496,723,365 3,608,000,600
Cashpaidasdividend,profit,orinterests 2,213,425 662,199,041
Othercashpaidforfinancingactivities
Subtotalofcashoutflowduetofinancingactivities 2,498,936,790 4,270,199,641
Netcashflowgeneratedbyfinancing 298,212,108 166,233,379
IV.Influenceofexchangeratealternationoncashand
855,016 -2,568,311
cashequivalents
V.Netincreaseofcashandcashequivalents 256,318,711 -189,370,580
Plus:Balanceofcashandcashequivalentsatthe
301,637,933 394,606,753
beginningofterm
VI.Balanceofcashandcashequivalentsattheendof
557,956,644 205,236,173
term
7.StatementofChangeinOwners’Equity(Consolidated)
AmountoftheCurrentTerm
RMB
AmountoftheCurrentTerm
Owners’EquityAttributabletotheParentCompany
Otherequityinstruments Minority
Items Perpetua Less: Other Common shareholders’ Totalofowners’
Capital Special Surplus Retained Totalof equity
Sharecapital Preferre lcapital treasurycomprehensi risk
Others reserve reserves reserves profit owners’equity
dshare securitie stock veincome provision
s
I.Balanceattheend
oftheprevious 2,075,335,560 1,260,702,197 4,653,971 5,843,473888,850,230 3,576,949,573 320,276,015 8,132,611,019
year
Plus:changeof
accountingpolicy
Correctionoferrorsin
previousperiods
Businesscombination
underthesamecontrol
Others
II.Balanceatthe
beginningofcurrent 2,075,335,560 1,260,702,197 4,653,971 5,843,473888,850,230 3,576,949,573 320,276,015 8,132,611,019
year
III.Amountofchange 89,251,780 -1,076,264 -2,609,813 185,458,607 7,293,044 278,317,354
incurrentterm
(“-“fordecrease)
(I)Totalamountofthe
comprehensive -1,076,264 392,992,163 7,221,885 399,137,784
income
(II)Capitalpaidinand
89,251,780 71,159 89,322,939
reducedbyowners
1.Commonshares
investedbythe
shareholders2.Capitalinvestedbytheownersofotherequityinstruments3.Amountsofshare-basedpaymentsrecognizedinowners’ 110,368 71,159 181,527equity
4.Others 89,141,412 89,141,412
(III)Profitdistribution -207,533,556 -207,533,556
1.Appropriationsto
surplusreserves
2.Appropriationsto
generalrisk
provisions3.Appropriationstoowners(or -207,533,556 -207,533,556shareholders)4.Others(IV)Internal
carry-forwardof
owners’equity
1.Newincreaseof
capital(orshare
capital)fromcapital
publicreserves
2. New increase of
capital (or share
capital) from surplus
reserves3.Surplusreservesformakinguplosses4.Others(V)Specificreserve -2,609,813 -2,609,8131.Withdrawnforthe 3,922,869 3,922,869period
2.Usedintheperiod 6,532,682 6,532,682
(VI)Others
IV.Balanceattheend
ofthisterm 2,075,335,560 1,349,953,977 3,577,707 3,233,660888,850,230 3,762,408,180 327,569,059 8,410,928,373
AmountofLastYear
Unit:RMB
Amountofthesameperiodoflastyear
Owners’EquityAttributabletotheParentCompany
Minority
Items Otherequityinstruments Commo shareholders’ Totalofowners’
Less: Other
Preferr Perpetual Capital Special Surplus nrisk Totalof equity
Sharecapital treasurycomprehensi Retainedprofit
ed capital Others reserve reserves reserves provisio owners’equity
stock veincome
share securities n
I.Balanceattheend
oftheprevious 2,075,335,560 1,261,391,272 2,967,772 15,437,498859,122,330 3,431,556,565 3,080,480 7,648,891,477
year
Plus:changeof
accountingpolicy
Correctionoferrorsin
previousperiods
Businesscombination
underthesamecontrol
Others
II.Balanceatthe
beginningofcurrent 2,075,335,560 1,261,391,272 2,967,772 15,437,498859,122,330 3,431,556,565 3,080,480 7,648,891,477
year
III.Amountofchange
incurrentterm -689,075 1,686,199 -9,594,025 29,727,900 145,393,008 317,195,535 483,719,542
(“-“fordecrease)
(I)Totalamountofthe
comprehensive 1,686,199 797,721,576 6,504,948 805,912,723
income
(II)Capitalpaidinand
402,262 313,771,067 314,173,329
reducedbyowners
1.Commonshares
investedbythe 313,628,750 313,628,750
shareholders2.Capitalinvestedbytheownersofotherequityinstruments3.Amountsofshare-basedpaymentsrecognizedinowners’ 402,262 142,317 544,579equity
4.Others
(III)Profitdistribution 29,727,900 -652,328,568 -622,600,668
1.Appropriationsto
29,727,900 -29,727,900
surplusreserves
2.Appropriationsto
generalrisk
provisions3.Appropriationstoowners(or -622,600,668 -622,600,668shareholders)4.Others(IV)Internalcarry-forwardof
owners’equity
1.Newincreaseof
capital(orshare
capital)fromcapital
publicreserves
2. New increase of
capital (or share
capital) from surplus
reserves3.Surplusreservesformakinguplosses4.Others(V)Specificreserve -9,594,025 -9,594,0251.Withdrawnforthe 6,930,650 6,930,650period
2.Usedintheperiod 16,524,675 16,524,675
(VI)Others -1,091,337 -3,080,480 -4,171,817
IV.Balanceattheend
ofthisterm 2,075,335,560 1,260,702,197 4,653,971 5,843,473888,850,230 3,576,949,573 320,276,015 8,132,611,019
8.StatementofChangeinOwners’Equity(ParentCo.)
AmountoftheCurrentTerm
Unit:RMB
AmountoftheCurrentTerm
Otherequityinstruments
Items Less: Other Totalofowners’
Perpetual Capital Special Surplus Retained
Sharecapital Preferred treasury comprehensive
capital Others reserve reserves reserves profit equity
share stock income
securities
I.Balanceattheendoftheprevious 2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
Plus:changeofaccountingpolicy
Correction of errors in previous
periods
Others
II.Balanceatthebeginningofcurrent
2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
year
III.Amountofchangeincurrentterm
(“-“fordecrease) 89,141,412 -274,911,079 -185,769,667
(I)Totalamountofthecomprehensive
-67,377,523 -67,377,523
income
(II)Capitalpaidinandreducedby
89,141,412 89,141,412
owners
1.Common sharesinvestedbythe
shareholders2.Capitalinvestedbytheownersofotherequityinstruments3.Amountsofshare-basedpayments
recognizedinowners’equity
4.Others 89,141,412 89,141,412
(III)Profitdistribution -207,533,556 -207,533,556
1.Appropriationstosurplusreserves
2.Appropriationstogeneralrisk -207,533,556 -207,533,556
3.Others
(IV)Internalcarry-forwardofowners’
equity
1.Newincreaseofcapital(orshare
capital)fromcapital publicreserves
2.Newincreaseofcapital(orshare
capital)fromsurplusreserves
3. Surplusreserves for makingup
losses
4.Others
(V)Specificreserve
1.Withdrawnfortheperiod
2.Usedintheperiod
(VI)Others
IV.Balanceattheendofthisterm
2,075,335,560 1,494,670,923 903,395,590 176,271,508 4,649,673,581
AmountofLastYear
Uniit:RMB
Amountofthesameperiodoflastyear
Otherequityinstruments
Items Less: Other Totalofowners’
Perpetual Capital Special Surplus
Sharecapital Preferred treasury comprehensive Retainedprofit
capital Others reserve reserves reserves equity
share stock income
securities
I.Balanceattheendoftheprevious 2,075,335,560 1,404,803,407 873,667,690 806,232,151 5,160,038,808
Plus:changeofaccountingpolicy
Correction of errors in previous
periods
Others
II.Balanceatthebeginningofcurrent
2,075,335,560 1,404,803,407 873,667,690 806,232,151 5,160,038,808
year
III.Amountofchangeincurrentterm
(“-“fordecrease) 726,104 29,727,900 -355,049,564 -324,595,560
(I)Totalamountofthecomprehensive
297,279,004 297,279,004
income
(II)Capitalpaidinandreducedby
owners
1.Common sharesinvestedbythe
shareholders2.Capitalinvestedbytheownersofotherequityinstruments3.Amountsofshare-basedpayments
recognizedinowners’equity
4.Others
(III)Profitdistribution 29,727,900 -652,328,568 -622,600,668
1.Appropriationstosurplusreserves 29,727,900 -29,727,900
2.Appropriationstogeneralrisk -622,600,668 -622,600,668
3.Others
(IV)Internalcarry-forwardofowners’
equity
1.Newincreaseofcapital(orshare
capital)fromcapital publicreserves
2.Newincreaseofcapital(orshare
capital)fromsurplusreserves
3. Surplusreserves for makingup
losses
4.Others
(V)Specificreserve
1.Withdrawnfortheperiod
2.Usedintheperiod
(VI)Others 726,104 726,104
IV.Balanceattheendofthisterm
2,075,335,560 1,405,529,511 903,395,590 451,182,587 4,835,443,248
III.BasicInformationoftheCompany
CSGHoldingCoLtd(the“Company”)wasincorporatedinSeptember1984,knownasChinaSouthGlassCompany,asajoint
ventureenterprisebyHongKongChinaMerchantsShippingCo.,LTD(香港招商局轮船股份有限公司),ShenzhenBuilding
MaterialsIndustryCorporation(深圳建筑材料工业集团公司),ChinaNorthIndustriesCorporation(中国北方工业深圳公司)
andGuangdongInternationalTrustandInvestmentCorporation(广东国际信托投资公司).TheCompanywasregisteredin
Shenzhen,GuangdongProvinceofthePeople'sRepublicofChinaanditsheadquarterlocatesinGuangdongProvinceofthe
People'sRepublicofChina.TheCompanyissuedRMB-dominatedordinarysharesandforeignsharespubliclyinOctober1991
andJanuary1992respectively,andlistedonShenzhenStockExchangeonFebruary1992.On31December2015,the
registeredcapitalwasRMB2,075,335,560,withnominalvalueofRMB1pershare.
TheCompanyanditssubsidiaries(collectivelyreferredtoasthe“Group”)aremainlyengagedinthemanufactureandsalesof
glassandenergymeterialswithglassasthemedium,themanufactureandsalesofpolysiliconandsolarmodule,the
constructionandoperationofphotovoltaicplantandthemanufactureandsalesofelectronicglassanddisplay.
Thefinancialstatementswereauthorisedforissuebytheboardofdirectorson22August2017.
DetailsofmajorsubsidiariesthatwereincludedinthefinancialstatementsintheperiodpleaserefertotheNote.Thenew
subsidiaryincludedintheconsolidationscopeintheperiodwasZhijiangCSGPVNewEnergyCo.,Ltd.(hereinafterreferred
toas"ZhijiangPVCompany").
IV.Basisofthepreparationoffinancialstatements
1.Basisofthepreparation
ThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardforBusinessEnterprises-BasicStandard,
andthespecificaccountingstandardsandotherrelevantregulationsissuedbytheMinistryofFinanceon15February2006and
insubsequentperiods(hereaftercollectivelyreferredtoas“theAccountingStandardforBusinessEnterprises”or“CAS”),and
“InformationDisclosureRuleNo.15forCompanieswithPublicTradedSecurities-FinancialReportingGeneralProvision”
issuedbyChinaSecurityRegulatoryCommission.
2.Goingconcern
Asat30June2017,theGrouphadnetcurrentliabilitiesofaboutRMB
3.385
billionandcommittedcapitalexpenditureofRMB390
million.ThedirectorsoftheCompanyhavemadeanassessmentthattheGrouphascontinuedformanyyearsandisexpectedto
continuetogeneratesufficientcashflowfromoperatingactivitiesoverthenext12months.Asat30June2017,thenetcashinflow
fromoperationactivitieswasapproximatelyRMB
1.02
billion.TheGrouphasmaintainedgoodrelationshipwithbankssothe
Grouphasbeenabletosuccessfullygetadequatefinancingcredit;Asat30June2017,theGrouphadunutilisedinternalbanking
facilitiesofapproximatelyRMB3.9billion,Inaddition,themajorshareholderoftheGroupiswillingtoprovidetheGroupwith
interest-freeloansofRMB2billionfortheGrouporthroughitsdesignatedparties.Asofthedateofthisreport,theshareholderhas
providedRMB1.35billionofinterest-freeloans.Inaddition,theGroupalsohasotheravailablefinancingchannels,suchas
short-termfinancingbills,ultra-short�Ctermfinancingnotes,andmediumtermnotes.Thedirectorsareofviewthattheabove
bankingfacilitiesandthesupportfromtheshareholdercanmeetthefundingrequirementsoftheGroup’sdebtservicingandcapital
commitment.Accordingly,thedirectorsoftheCompanyhadadoptedthegoingconcernbasisinthepreparationofthisfinancial
statementoftheCompanyandtheGroup.
V.Significantaccountingpoliciesandaccountingestimates
1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises
ThefinancialstatementsoftheCompanyforthefirsthalfyearof2017trulyandcompletelypresentthefinancialpositionasof30
June2017andtheoperatingresults,cashflowsandotherinformationforthefirsthalfyearof2017oftheGroupandtheCompanyin
compliancewiththeAccountingStandardsforBusinessEnterprises.
2.Accountingperiod
TheCompany’saccountingyearstartson1Januaryandendson31December.
3.Operatingcycle
TheCompany’soperatingcyclestartson1Januaryandendson31December.
4.Recordingcurrency
TherecordingcurrencyisRenminbi(RMB).
5.AccountingprocessmethodofBusinesscombinationsundercommonanddifferentcontrolling.
(a)Businesscombinationsinvolvingentitiesundercommoncontrol
Theassetsandliabilitiesthatthecombiningpartyobtainsinabusinesscombinationshallbemeasuredonthebasisoftheircarrying
amountinthecombinedparty.Asforthebalancebetweenthecarryingamountofthenetassetsobtainedbythecombiningpartyandthe
carryingamountoftheconsiderationpaidbyit,theadditionalpaid-incapitalshallbeadjusted.Iftheadditionalpaid-incapitalisnot
sufficienttobeoffset,theretainedearningsshallbeadjusted.Costsdirectlyattributabletobusinesscombinationarerecordedintothe
profitsandlossesonceincurred.Transactioncostsattributedtoissueequitysecuritiesordebtsecuritiesforbusinesscombinationare
recordedintoinitialrecognitionamountsofequitysecuritiesordebtsecurities.
(b)Businesscombinationsinvolvingentitiesnotundercommoncontrol
Thecostofcombinationandidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationaremeasuredatthefairvalueat
theacquisitiondate.TheexcessofthecostofacquisitionovertheGroup’sshareofthefairvalueoftheidentifiablenetassetsacquiredis
recordedasgoodwill.IfthecostofacquisitionislessthantheGroup’sshareoffairvalueofthenetassetsofthesubsidiaryacquired,the
differenceisrecogniseddirectlyintheincomestatement.Costsdirectlyattributabletobusinesscombinationareincludedintheprofits
andlossesonceincurred.Transactioncostsattributedtoissueequitysecuritiesordebtsecuritiesforbusinesscombinationarerecorded
intoinitialrecognitionamountsofequitysecuritiesordebtsecurities.
6.Basisofpreparationofconsolidatedfinancialstatements
TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyandallofitssubsidiaries.
SubsidiariesareconsolidatedfromthedatewhentheGroupobtainscontrolandarede-consolidatedfromthedatewhencontrolceases.
Forasubsidiarythatisacquiredinabusinesscombinationinvolvingenterprisesundercommoncontrol,itisincludedintheconsolidated
financialstatementsfromthedatewhenit,togetherwiththeCompany,comesundercommoncontroloftheultimatecontrollingparty.
Theportionofthenetprofitsrealisedbeforethecombinationdateispresentedseparatelyintheconsolidatedincomestatement.
Whenpreparingtheconsolidatedfinancialstatements,iftheaccountingpoliciesandtheaccountingperiodsoftheCompanyand
subsidiariesareinconsistent,thefinancialstatementsofthesubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandthe
accountingperiodoftheCompany.Forsubsidiariesacquiredfrombusinesscombinationsinvolvingenterprisesnotundercommon
control,theindividualfinancialstatementsofthesubsidiariesareadjustedbasedonthefairvalueoftheidentifiablenetassetsatthe
acquisitiondate.
Allsignificantintra-groupbalances,transactionsandunrealisedprofitsareeliminatedintheconsolidatedfinancialstatements.The
portionofsubsidiaries’equityandtheportionofasubsidiaries’netprofitsandlossesandcomprehensiveincomesfortheperiodnot
attributabletoCompanyarerecognisedasminorityinterestsandpresentedseparatelyintheconsolidatedfinancialstatementsunder
equity,netprofitsandtotalcomprehensiveincomerespectively.Unrealizedprofitsandlossesresultingfromthesaleofassetsbythe
Companytothesubsidiaryfullyeliminatethenetprofitsattributabletoequityholdersoftheparent;unrealizedprofitsandlosses
resultingfromthesaleofassetsbythesubsidiarytotheCompanyareeliminatedandallocatedbetweennetprofitattributabletoowners
oftheparentandminorityinterestsinaccordancewiththeallocationproportionoftheCompanyinthesubsidiary.Unrealizedprofitsand
lossesresultingfromthesaleofassetsbyonesubsidiarytoanotherareeliminatedandallocatedbetweennetprofitattributabletoowners
oftheparentandminorityinterestsinaccordancewiththeallocationproportionoftheparentinthesubsidiary.
IftheaccountingtreatmentofatransactionwhichconsiderstheGroupasanaccountingentityisdifferentfromthatconsidersthe
Companyoritssubsidiariesasanaccountingentity,itisadjustedfromtheperspectiveoftheGroup.
7.Confirmationstandardofcashandcashequivalent
Cashandcashequivalentscomprisecashonhand,depositsthatcanbereadilydrawnondemand,andshort-termandhighlyliquid
investmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
8.Translatingofforeigncurrencyoperationsandforeigncurrencyreportform
(a)Foreigncurrencytransactions
ForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.
Atthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangerateson
thebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognisedinprofitorlossforthecurrentperiod,except
forthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionof
qualifyingassets,whicharecapitalisedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthatare
measuredathistoricalcostsaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedateofthetransactions.Theeffect
ofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.
(b)Translationofforeigncurrencyfinancialstatements
Theassetandliabilityitemsinthebalancesheetsforoverseasoperationsaretranslatedatthespotexchangeratesonthebalancesheet
date.Amongtheowners’equityitems,theitemsotherthan“undistributedprofits”aretranslatedatthespotexchangeratesofthe
transactiondates.Theincomeandexpenseitemsintheincomestatementsofoverseasoperationsaretranslatedatthespotexchangerates
ofthetransactiondates.Thedifferencesarisingfromtheabovetranslationarepresentedseparatelyintheowners’equity.Thecashflows
ofoverseasoperationsaretranslatedatthespotexchangeratesonthedatesofthecashflows.Theeffectofexchangeratechangeson
cashispresentedseparatelyinthecashflowstatement.
9.Financialinstruments
(a)Financialassets
(i)Classificationsoffinancialassets
Financialassetsareclassifiedintothefollowingcategoriesatinitialrecognition:financialassetsatfairvaluethroughprofitorloss,
receivables,available-for-salefinancialassetsandheld-to-maturityinvestments.Theclassificationoffinancialassetsdependsonthe
Group’sintentionandabilitytoholdthefinancialassets.TheGrouphasnofinancialassetsatfairvaluethroughprofitorlossand
held-to-maturityinvestmentsfor2014.
Receivables
Receivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Receivables
comprisenotesreceivable,accountsreceivableandotherreceivables.
Available-for-salefinancialassets
Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeitherdesignatedinthiscategoryornotclassifiedinanyof
theothercategoriesatinitialrecognition.Available-for-salefinancialassetsareincludedinothercurrentassetsonthebalancesheetif
managementintendstodisposeofthemwithin12monthsafterthebalancesheetdate.
(ii)
Recognitionandmeasurement
FinancialassetsarerecognisedatfairvalueonthebalancesheetwhentheGroupbecomesapartytothecontractualprovisionsofthe
financialinstrument.Therelatedtransactioncoststhatareattributabletotheacquisitionofreceivablesandavailable-for-salefinancial
assetsareincludedintheirinitialrecognitionamounts.
Available-for-salefinancialassetsaresubsequentlymeasuredatfairvalue.Investmentsinequityinstrumentsaremeasuredatcostwhen
theydonothaveaquotedmarketpriceinanactivemarketandwhosefairvaluecannotbereliablymeasured.Receivablesaremeasured
atamortisedcostusingtheeffectiveinterestmethod.
Gainsorlossesarisingfromchangeinfairvalueofavailable-for-salefinancialassetsarerecogniseddirectlyinequity,exceptfor
impairmentlossesandforeignexchangegainsandlossesarisingfromtranslationofmonetaryfinancialassets.Whensuchfinancial
assetsarederecognised,thecumulativegainsorlossespreviouslyrecogniseddirectlyintoequityarerecycledintoprofitorlossforthe
currentperiod.Interestsonavailable-for-saleinvestmentsindebtinstrumentscalculatedusingtheeffectiveinterestmethodduringthe
periodinwhichsuchinvestmentsareheldandcashdividendsdeclaredbytheinvesteeonavailable-for-saleinvestmentsinequity
instrumentsarerecognisedasinvestmentincome,whichisrecognisedinprofitorlossfortheperiod.
(iii)Impairmentoffinancialassets
TheGroupassessesthecarryingamountsoffinancialassetsateachbalancesheetdate.Ifthereisobjectiveevidencethatafinancialasset
isimpaired,animpairmentlossisprovidedfor.
Objectiveevidenceindicatingimpairmentoffinancialassetsreferstothematterthatactuallyoccursaftertheinitialrecognitionof
financialassets,itwillaffectestimatedfuturecashflowsoffinancialassets,anditsimpactcanbereliablymeasured.
Objectiveevidencewhichindicatestheoccurrenceofimpairmentforavailable-for-saleequityinstrumentsincludessignificantor
non-temporary decrease of fair valueof equity instruments investment.The Groupconducts individualinspection oneach
available-for-saleequityinstrumentsinvestmentatbalancesheetdate,ifthefairvalueoftheavailable-for-saleequityinstrumentisless
thanitsinitialinvestmentcostformorethan50%(including50%)orlessthanitsinitialinvestmentcostcontinuallyformorethan1year,
thatmeansimpairmentincurred;ifthefairvalueoftheavailable-for-saleequityinstrumentislessthanitsinitialinvestmentcostformore
than20%(including20%)buthasnotreached50%,theGroupwillcomprehensivelyconsiderotherfactorssuchaspricevolatilityto
determinewhethertheequityinstrumentinvestmenthasbeenimpaired.TheGroupcalculatestheinitialinvestmentcostofinitial
available-for-saleequityinstrumentsinvestmentusingtheweightedaveragemethod.
Whenanimpairmentlossonafinancialassetcarriedatamortisedcosthasoccurred,theamountoflossisprovidedforatthedifference
betweentheasset’scarryingamountandthepresentvalueofitsestimatedfuturecashflows(excludingfuturecreditlossesthathavenot
beenincurred).Ifthereisobjectiveevidencethatthevalueofthefinancialassetrecoveredandtherecoveryisrelatedobjectivelytoan
eventoccurringaftertheimpairmentwasrecognised,thepreviouslyrecognisedimpairmentlossisreversedandtheamountofreversalis
recognisedinprofitorloss.
Ifanimpairmentlossonavailable-for-salefinancialassetsmeasuredatfairvalueisincurred,thecumulativelossesarisingfromthe
declineinfairvaluethathadbeenrecogniseddirectlyinshareholders'equityaretransferredoutfromequityandintoimpairmentloss.
Foraninvestmentindebtinstrumentclassifiedasavailable-for-saleonwhichimpairmentlosseshavebeenrecognised,if,ina
subsequentperiod,itsfairvalueincreasesandtheincreasecanbeobjectivelyrelatedtoaneventoccurringaftertheimpairmentlosswas
recognisedinprofitorloss,thepreviouslyrecognisedimpairmentlossisreversedintoprofitorlossforthecurrentperiod.Foran
investmentinanequityinstrumentclassifiedasavailable-for-saleonwhichimpairmentlosseshavebeenrecognised,theincreaseinits
fairvalueinasubsequentperiodisrecogniseddirectlyinequity.
(iv)Derecognitionoffinancialassets
Financialassetsarederecognisedwhen:i)thecontractualrightstoreceivethecashflowsfromthefinancialassetshaveexpired;orii)all
substantialrisksandrewardsofownershipofthefinancialassetshavebeentransferred;oriii)thecontroloverthefinancialassethas
beenwaivedeveniftheGroupdoesnottransferorretainnearlyalloftherisksandrewardsrelatingtotheownershipofafinancialasset.
Onderecognitionofafinancialasset,thedifferencebetweenthecarryingamountandthesumoftheconsiderationreceivedandthe
cumulativechangesinfairvaluethathadbeenrecogniseddirectlyinowner'sequity,isrecognisedinprofitorloss.
(b)Financialliabilities
Financialliabilitiesareclassifiedintotwocategoriesatinitialrecognition:financialliabilitiesatfairvaluethroughprofitorlossandother
financialliabilities.OtherfinancialliabilitiesintheGroupmainlyincludepayables,borrowingsandbondspayable.
Changesinfairvalueoffinancialliabilitiesatfairvaluethroughprofitorlossarerecognizedintheincomestatement.
Payablescompriseaccountspayable,notespayableandotherpayables,whicharerecognisedinitiallyatfairvalueandmeasured
subsequentlyatamortisedcostusingtheeffectiveinterestmethod.
Borrowingsandbondspayablearerecognisedinitiallyatfairvalue,netoftransactioncostsincurred,andsubsequentlymeasuredat
amortisedcostusingtheeffectiveinterestmethod.
Otherfinancialliabilitieswithinoneyear(includingoneyear)ispresentedascurrentliabilities,whilenon-currentfinancialliabilitiesdue
withoneyear(includingoneyear)isreclassifiedasnon-currentliabilitiesduewithinoneyear.Othersarepresentedasnon-current
liabilities.
Afinancialliability(orapartofafinancialliability)isderecognisedwhenallorpartoftheobligationisextinguished.Thedifference
betweenthecarryingamountofafinancialliability(orapartoffinancialliability)extinguishedandtheconsiderationpaidisrecognised
intheincomestatement.
(c)Determinationoffairvalueoffinancialinstruments
Thefairvalueofafinancialinstrumentthatistradedinanactivemarketisdeterminedatthequotedpriceintheactivemarket.Thefair
valueofafinancialinstrumentthatisnottradedinanactivemarketisdeterminedbyusingavaluationtechnique.Duringvaluation,the
Groupadoptsavaluationtechniquesuitableforcurrentsituation,whichissupportedbysufficientavailabledataandotherinformation,
choosestheinputsconsistentwiththefeatureofassetsorliabilitiesconsideredinthetransactionthereofwithmarketparticipants,and
usesrelatedobservableinputsinpreferencetothegreatestextent.Unobservableinputsareusedwhenitisunabletoobtainoris
infeasibleforrelatedobservableinputs.
10.Recognitionstandardimpairmentandreceivables
(1)Baddebtprovisiononreceivableaccountswithmajoramountindividually
BasisofrecognitionorstandardamountofReceivablesthatareThebasisoramountforindividuallysignificantreceivables
isindividuallygreaterthan20million.
individuallysignificant
Receivablesthatareindividuallysignificantaresubjectto
separateimpairmentassessment.Aprovisionforimpairment
ofthereceivableisrecognizedifthereisobjectiveevidence
Basisofbaddebtprovision thattheGroupwillnotbeabletocollectthefullamounts
accordingtotheoriginalterms.
(2)Receivablesthatareprovidedforprovisionbasedontheircreditriskcharacteristics
Nameoftheportfolio Basisofbaddebtprovision
Portfolio1 accordingtopercentageofbalancemethod
Portfolio2 accordingtopercentageofbalancemethod
Accountsonaginganalysisbasisintheportfolio:
□Applicable √Non-applicable
Accountsonpercentagebasisintheportfolio:
√Applicable □Non-applicable
Percentageofprovisionfor Percentageofprovisionforother
Nameoftheportfolio
accountsreceivable(%) receivables(%)
Portfolio1 2% 2%
Portfolio2 2% 2%
Accountsonotherbasisintheportfolio:
□Applicable √Non-applicable
(3)Themethodofprovisionforimpairmentofreceivablesthatareindividuallysignificant
Reasonforprovidingbaddebt Aprovisionforimpairmentofthereceivableisrecognizedifthereisobjectiveevidencethat
individually: theGroupwillnotbeabletocollectthefullamountsaccordingtotheoriginalterms.
Theprovisionforimpairmentofthereceivableisestablishedatthedifferencebetweenthe
Basisofbaddebtprovision:
carryingamountofthereceivableandthepresentvalueofestimatedfuturecashflows.
11.Inventories
(a)ClassificationInventoriesrefertomanufacturingsector,includingrawmaterials,workinprogress,finishedgoodsandturnovermaterials,andaremeasuredatthelowerofcostandnetrealisablevalue.(b)InventorycostingmethodCostisdeterminedusingtheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogresscompriserawmaterials,directlabourandsystematicallyallocatedproductionoverheadbasedonthenormalproductioncapacity.(c)AmortisationmethodsoflowvalueconsumablesandpackagingmaterialsTurnovermaterialsincludelowvalueconsumablesandpackagingmaterials,whichareexpensedwhenissued.(d)ThedeterminationofnetrealisablevalueandthemethodofprovisionforimpairmentofinventoriesProvisionfordeclineinthevalueofinventoriesisdeterminedattheexcessamountofthecarryingamountsoftheinventoriesovertheirnetrealisablevalue.Netrealisablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.(e)TheGroupadoptstheperpetualinventorysystem.12.ClassifiedasassetsheldforsaleAnon-currentassetoradisposalgroupisclassifiedasheldforsalewhenallofthefollowingconditionsaresatisfied:(1)thenon-currentassetorthedisposalgroupisavailableforimmediatesaleinitspresentconditionsubjectonlytotermsthatareusualandcustomaryfor
salesofsuchnon-currentassetordisposalgroup;(2)thegrouphassignedwithotherpartieslegallybindingsaleagreementandapproval
hasbeenobtained,isexpectedtothesalewillbecompletedwithinoneyear.
Non-currentassets(exceptforfinancialassetsanddeferredtaxassets)thatmeettherecognitioncriteriaforheldforsalearerecognisedat
theamountequaltothelowerofthefairvaluelesscoststosellandthecarryingamount.Thedifferencebetweenfairvaluelesscoststo
sellandthecarryingamountshouldbepresentedasimpairmentloss.
Suchnon-currentassetsandassetsincludedindisposalgroupsasclassifiedasheldforsaleareaccountedforascurrentassets;while
liabilitiesincludedindisposalgroupsclassifiedasheldforsaleareaccountedforascurrentliabilities,whicharepresentedseparatelyin
thebalancesheet.
AdiscontinuedoperationisacomponentoftheGroupthateitherhasbeendisposedoforisclassifiedasheldforsale,andisseparately
identifiableoperationallyandforfinancialreportingpurposes,andsatisfiesoneofthefollowingconditions:(1)representsaseparate
majorlineofbusinessorgeographicalareaofoperations;(2)ispartofasinglecoordinatedplantodisposeofaseparatemajorlineof
businessorgeographicalareaofoperations;and(3)isasubsidiaryacquiredexclusivelywithaviewtoresale.
Earningsfromdiscontinuedoperationsstatedintheincomestatementincludeoperatingprofitandlossanddisposalgainsandlosses.
13.Long-termequityinvestments
Long-termequityinvestmentscomprisetheCompany’slong-termequityinvestmentsinitssubsidiaries,andtheGroup’slong-term
equityinvestmentsinitsassociates.
SubsidiariesaretheinvesteesoverwhichtheCompanyisabletoexercisecontrol.AssociatesaretheinvesteesthattheGrouphas
significantinfluenceontheirfinancialandoperatingpolicies.
InvestmentsinsubsidiariesaremeasuredusingthecostmethodintheCompany’sfinancialstatements,andadjustedbyusingthe
equitymethodwhenpreparingtheconsolidatedfinancialstatements.Investmentsinassociatesareaccountedforusingtheequity
method.Long-termequityinvestmentswheretheGroupdoesnothavecontrol,jointcontrolorsignificantinfluenceoverthe
investees,andwhicharenotquotedinanactivemarketandwhosefairvaluecannotbereliablymeasuredaremeasuredusingthe
costmethod.
a.Initialrecognition
Forlong-termequityinvestmentsformedinbusinesscombination:whenobtainedfrombusinesscombinationsinvolvingentities
undercommoncontrol,thelong-termequityinvestmentisstatedatcarryingamountofequityforthecombinedpartiesatthetime
ofmerger;whenthelong-termequityinvestmentobtainedfrombusinesscombinationsinvolvingentitiesnotundercommon
control,theinvestmentismeasuredatcombinationcost.
Forlong-termequityinvestmentsnotformedinbusinesscombination:theonepaidbycashisinitiallymeasuredatactualpurchase
price;thelong-terminvestmentobtainedbyissuingequitysecuritiesisstatedatfairvalueofequitysecuritiesasinitialinvestment
cost.
b.Subsequentmeasurementandrecognitionmethodofprofitorloss
Long-termequityinvestmentsaccountedforusingthecostmethodaremeasuredatinitialinvestmentcost.Cashdividendorprofit
distributiondeclaredbytheinvesteesisrecognisedasinvestmentincomeinprofitorloss.
Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostexceedstheGroup’s
shareofthefairvalueoftheinvestee’sidentifiablenetassetsatthetimeofacquisition,theinvestmentisinitiallymeasuredatcost.
WheretheinitialinvestmentcostislessthantheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsatthetime
ofacquisition,thedifferenceisincludedinprofitorlossforthecurrentperiodandthecostofthelong-termequityinvestmentis
adjustedupwardsaccordingly.
Forlong-termequityinvestmentsaccountedforusingtheequitymethod,theGrouprecognisestheinvestmentincomeaccordingto
itsshareofnetprofitorlossoftheinvestee.TheGroupdiscontinuesrecognisingitsshareofthenetlossesofaninvesteeafterthe
carryingamountsofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofthe
investor’snetinvestmentintheinvesteearereducedtozero.However,iftheGrouphasobligationsforadditionallossesandthe
criteriawithrespecttorecognitionofprovisionsundertheaccountingstandardsoncontingenciesaresatisfied,theGroupcontinues
recognisingtheinvestmentlossesandtheprovisions.Forchangesinowners’equityoftheinvesteeotherthanthosearisingfromits
netprofitorloss,itsproportionateshareisdirectlyrecordedintocapitalsurplus,providedthattheproportionofshareholdingofthe
Groupintheinvesteeremainsunchanged.ThecarryingamountoftheinvestmentisreducedbytheGroup’sshareoftheprofit
distributionorcashdividendsdeclaredbyaninvestee.Theunrealisedprofitsorlossesarisingfromthetransactionsbetweenthe
GroupanditsinvesteesareeliminatedinproportiontotheGroup’sequityinterestintheinvestees,basedonwhichtheinvestment
gainorlossesarerecognised.AnylossesresultingfromtransactionsbetweentheGroupanditsinvesteesattributabletoasset
impairmentlossesarenoteliminated.
c.Definitionofcontrol,jointcontrolandsignificantinfluenceovertheinvestees
Theterm"control"referstothepowerintheinvestees,toobtainvariablereturnsbyparticipatingintherelatedbusinessactivities
oftheinvestees,andtheabilitytoaffectthereturnsbyexercisingitspowerovertheinvestees.
Theterm"significantinfluence"referstothepowertoparticipateintheformulationoffinancialandoperatingpoliciesofan
enterprise,butnotthepowertocontrol,orjointlycontrol,theformulationofsuchpolicieswithotherparties.
d.Impairmentoflong-termequityinvestments
Thecarryingamountoflong-termequityinvestmentsinsubsidiariesandassociatesisreducedtotherecoverableamountwhenthe
recoverableamountislessthanthecarryingamount.
14.Fixedassets
(1)Recognitionandinitialmeasurement
Fixedassetscomprisebuildings,machineryandequipment,motorvehiclesandothers.Fixedassetsarerecognisedwhenitis
probablethattherelatedeconomicbenefitswillflowtotheGroupandthecostscanbereliablymeasured.Fixedassetspurchasedor
constructedbytheGroupareinitiallymeasuredatcostatthetimeofacquisition.Subsequentexpendituresincurredforafixedasset
areincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandthe
relatedcostcanbereliablymeasured.Thecarryingamountof thereplacedpartisderecognised.Alltheothersubsequent
expendituresarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.
(2)Depreciation
Categories Depreciationmethod Depreciationage(year) SalvageValueRate(%) Annualdepreciationrate(%)
Houses&buildings straight-linemethod 20�C35 5% 2.71%~4.75%
Equipment&machinery straight-linemethod 8�C15 5% 4.75%~11.88%
Transportation 5�C8
straight-linemethod 0% 12.50%~20%
equipmentandothers
15.Constructioninprogress
Constructioninprogressismeasuredatactualcost.Actualcostcomprisesconstructioncosts,installationcosts,borrowingcosts
thatareeligibleforcapitalisationandothercostsnecessarytobringthefixedassetsreadyfortheirintendeduse.Actualcost
alsoincludesnetoftrialproductioncostandtrialproductionincomebeforeconstructioninprogressisputintoproduction.
Constructioninprogressistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse,anddepreciationbegins
fromthefollowingmonth.
Thecarryingamountofconstructioninprogressisreducedtotherecoverableamountwhentherecoverableamountisbelow
thecarryingamount.
16.Borrowingcosts
Theborrowingcoststhataredirectlyattributabletotheacquisitionandconstructionofafixedassetthatneedsasubstantially
longperiodoftimeforitsintendedusecommencetobecapitalisedandrecordedaspartofthecostoftheassetwhen
expendituresfortheassetandborrowingcostshavebeenincurred,andtheactivitiesrelatingtotheacquisitionandconstruction
thatarenecessarytopreparetheassetforitsintendedusehavecommenced.Thecapitalisationofborrowingcostsceaseswhen
theassetunderacquisitionorconstructionbecomesreadyforitsintendeduseandtheborrowingcostsincurredthereafterare
recognisedinprofitorlossforthecurrentperiod.Capitalisationofborrowingcostsissuspendedduringperiodsinwhichthe
acquisitionorconstructionofafixedassetisinterruptedabnormallyandtheinterruptionlastsformorethan3months,untilthe
acquisitionorconstructionisresumed.
Forthespecificborrowingsobtainedfortheacquisitionorconstructionofafixedassetqualifyingforcapitalisation,theamount
ofborrowingcostseligibleforcapitalisationisdeterminedbydeductinganyinterestincomeearnedfromdepositingtheunused
specificborrowingsinthebanksoranyinvestmentincomearisingonthetemporaryinvestmentofthoseborrowingsduringthe
capitalisationperiod.
Forthegeneralborrowingsobtainedfortheacquisitionorconstructionofafixedassetqualifyingforcapitalisation,theamountof
borrowingcostseligibleforcapitalisationisdetermined byapplying theweightedaverageeffectiveinterestrate ofgeneral
borrowings,totheweightedaverageoftheexcessamountofcumulativeexpendituresontheassetovertheamountofspecific
borrowings.Theeffectiveinterestrateistherateatwhichtheestimatedfuturecashflowsduringtheperiodofexpecteddurationof
theborrowingsorapplicableshorterperiodarediscountedtotheinitialamountoftheborrowings.
17.Intangibleassets
(1)Pricingofintangibleassets
Intangibleassetsincludinglanduserightsand,patentsandexploitationrights,intangibleassetsaremeasuredatcost.
(a)Landuserights
Landuserightsareamortisedonthestraight-linebasisovertheirapproveduseperiodof30to70years.Iftheacquisitioncostsofthe
landuserightsandthebuildingslocatedthereoncannotbereasonablyallocatedbetweenthelanduserightsandthebuildings,allofthe
acquisitioncostsarerecognisedasfixedassets.
(b)Patents
Patentsareamortisedonastraight-linebasisoverthepatentprotectionperiodof10yearsasstipulatedbythelaws.
(c)Exploitationrights
Exploitationrightsareamortizedonastraight-linebasisoverpermittedexploitationperiodsof10yearssetoutontheexploitation
certificate.
(d)Periodicalreviewofusefullifeandamortisationmethod
Foranintangibleassetwithafiniteusefullife,reviewofitsusefullifeandamortisationmethodisperformedateachyear-end,with
adjustmentmadeasappropriate.
(e)Iftherecoverableamountofintangibleassetislessthanitscarryingvalue,thecarryingvalueisdeductedtorecoverableamount.
(2)Researchanddevelopment
Theexpenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditureon
thedevelopmentphasebasedonitsnatureandwhetherthereismaterialuncertaintythattheresearchanddevelopmentactivitiescan
formanintangibleassetatendoftheproject.
Expenditureontheresearchphaserelatedtoplannedsurvey,evaluationandselectionforresearchonmanufacturingtechniqueis
recognisedinprofitorlossintheperiodinwhichitisincurred.Priortomassproduction,expenditureonthedevelopmentphaserelated
tothedesignandtestingphaseinregardstothefinalapplicationofmanufacturingtechniqueiscapitalisedonlyifallofthefollowing
conditionsaresatisfied:
Thedevelopmentofmanufacturingtechniquehasbeenfullydemonstratedbytechnicalteam;
Themanagementhasapprovedthebudgetforthedevelopmentofmanufacturingtechnique;
Thereexistsresearchandanalysisofpre-marketresearchexplainingthatproductsmanufacturedwithsuchtechniquearecapableof
marketing;
Thereissufficienttechnicalandcapitaltosupportthedevelopmentofmanufacturingtechniqueandsubsequentmassproduction;and
theexpenditureonmanufacturingtechniquedevelopmentcanbereliablygathered.
Otherdevelopmentexpendituresthatdonotmeettheconditionsabovearerecognisedinprofitorlossintheperiodinwhichtheyare
incurred.Developmentcostspreviouslyrecognisedasexpensesarenotrecognisedasanassetinasubsequentperiod.Capitalised
expenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthe
datethattheassetisreadyforitsintendeduse.
18.Impairmentoflong-termassets
Fixedassets,constructioninprogress,intangibleassetswithfiniteusefullivesandlong-termequityinvestmentsinjointventuresand
associatesaretestedforimpairmentifthereisanyindicationthattheassetsmaybeimpairedatthebalancesheetdate;intangibleassets
notreadyfortheirintendedusearetestedatleastannuallyforimpairment,irrespectiveofwhetherthereisanyindicationthattheymay
beimpaired.Iftheresultoftheimpairmenttestindicatesthattherecoverableamountofanassetislessthanitscarryingamount,a
provisionforimpairmentandanimpairmentlossarerecognisedfortheamountbywhichtheasset’scarryingamountexceedsits
recoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandthepresentvalueofthefuture
cashflowsexpectedtobederivedfromtheasset.Provisionforassetimpairmentisdeterminedandrecognisedontheindividualasset
basis.Ifitisnotpossibletoestimatetherecoverableamountofanindividualasset,therecoverableamountofagroupofassetstowhich
theassetbelongsisdetermined.Agroupofassetsisthesmallestgroupofassetsthatisabletogenerateindependentcashinflows.
Goodwillthatisseparatelypresentedinthefinancialstatementsistestedatleastannuallyforimpairment,irrespectiveofwhetherthere
isanyindicationthatitmaybeimpaired.Inconductingthetest,thecarryingvalueofgoodwillisallocatedtotherelatedassetgroupsor
groupsofassetgroupswhichareexpectedtobenefitfromthesynergiesofthebusinesscombination.Iftheresultofthetestindicates
thattherecoverableamountofanassetgrouporgroupofassetgroups,includingtheallocatedgoodwill,islowerthanitscarrying
amount,thecorrespondingimpairmentlossisrecognised.Theimpairmentlossisfirstdeductedfromthecarryingamountofgoodwill
thatisallocatedtotheassetgrouporgroupofassetgroups,andthendeductedfromthecarryingamountsofotherassetswithintheasset
groupsorgroupsofassetgroupsinproportiontothecarryingamountsofassetsotherthangoodwill.
Oncetheaboveassetimpairmentlossisrecognised,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.
19.Long-termprepaidexpenses
Long-termprepaidexpensesincludetheexpendituresthathavebeenincurredbutshouldberecognisedasexpensesovermorethanone
yearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortisedonthestraight-linebasisovertheexpected
beneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortisation.
20.Employeebenefits
(1)Short-termemployeebenefitsaccountingmethod
Short-termemployeebenefitsincludeemployeewagesorsalaries,bonus,allowancesandsubsidies,staffwelfare,premiumsor
contributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,housingfunds,unionrunningcostsandemployee
educationcosts,short-termpaidabsences.Theemployeebenefitliabilitiesarerecognisedintheaccountingperiodinwhichtheservice
isrenderedbytheemployees,withacorrespondingchargetotheprofitorlossforthecurrentperiodorthecostofrelevantassets.
Employeebenefitswhicharenon-monetarybenefitsshallbemeasuredatfairvalue.
(2)Post-employmentbenefitsaccountingmethod
TheGroupclassifiespost-employmentbenefitplansaseitherdefinedcontributionplansordefinedbenefitplans.Definedcontribution
plansarepost-employmentbenefitplansunderwhichtheGrouppaysfixedcontributionsintoaseparatefundandwillhaveno
obligationtopayfurthercontributions;andDefinedbenefitplansarepost-employmentbenefitplansotherthandefinedcontribution
plans.Duringthereportingperiod,theGroup'spost-employmentbenefitsmainlyincludebasicpensionsandunemploymentinsurance,
bothofwhichbelongtothedefinedcontributionplans.
Basicpensions
TheGroup’semployeesparticipateinthebasicpensionplansetupandadministeredbylocalauthoritiesofMinistryofHuman
ResourceandSocialSecurity.Monthlypaymentsofpremiumsonthebasicpensionsarecalculatedaccordingtoprescribedbasesand
percentagebytherelevantlocalauthorities.Whenemployeesretire,therelevantlocalauthoritiesareobligedtopaythebasicpensions
tothem.Theamountsbasedontheabovecalculationsarerecognisedasliabilitiesintheaccountingperiodinwhichtheservicehas
beenrenderedbytheemployees,withacorrespondingchargetotheprofitorlossforthecurrentperiodorthecostofrelevantassets.
(3)Terminationbenefitsaccountingmethod
TheGroupprovidescompensationforterminatingtheemploymentrelationshipwithemployeesbeforetheendoftheemployment
contractsorasanoffertoencourageemployeestoacceptvoluntaryredundancybeforetheendoftheemploymentcontracts.TheGroup
recognisesaliabilityarisingfromcompensationforterminationoftheemploymentrelationshipwithemployees,withacorresponding
chargetoprofitorlossattheearlierofthefollowingdates:1)whentheGroupcannotunilaterallywithdrawtheofferoftermination
benefitsbecauseofanemploymentterminationplanoracurtailmentproposal;2)whentheGrouprecognisescostsorexpensesrelated
totherestructuringthatinvolvesthepaymentofterminationbenefits.
Theterminationbenefitsexpectedtobepaidwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.
21.Provisions
Businessrestructuring,provisionsforproductwarranties,onerouscontractsetc.arerecognisedwhentheGrouphasapresentobligation,
itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andtheamountoftheobligationcanbe
measuredreliably.
Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation.Factors
surroundingacontingency,suchastherisks,uncertaintiesandthetimevalueofmoney,aretakenintoaccountasawholeinreaching
thebestestimateofaprovision.Wheretheeffectofthetimevalueofmoneyismaterial,thebestestimateisdeterminedbydiscounting
therelatedfuturecashoutflows.Theincreaseinthediscountedamountoftheprovisionarisingfrompassageoftimeisrecognisedas
interestexpense.
Thecarryingamountofprovisionsisreviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.
Theprovisionexpectedtobepaidwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.
22.Revenuerecognition
TheamountofrevenueisdeterminedinaccordancewiththefairvalueoftheconsiderationreceivedorreceivablefortheSaleofgoods
andservicesintheordinarycourseoftheGroup’sactivities.Revenueisshownnetofdiscounts,rebatesandreturns.
RevenueisrecognisedwhentheeconomicbenefitsassociatedwiththetransactionwillflowtotheGroup,therelatedrevenuecanbe
reliablymeasured,andthespecificrevenuerecognitioncriteriahavebeenmetforeachtypeoftheGroup’sactivitiesasdescribed
below:
(a)Saleofgoods
TheGroupmainlysellsglass,andproductsrelatedtosolarenergy,newenergyapplicationsandelectronicglassanddisplay. For
domesticsales,theGroupdeliverstheproductstoacertainplacespecifiedinthecontract.Whenthebuyertakesoverthegoods,the
Grouprecognizesrevenue.Forexportsales,theGrouprecognizestherevenuewhenitfinishedclearinggoodsforexportanddeliver
thegoodsonboardthevessel,orwhenthegoodsaredeliveredtoacertainplacespecifiedinthecontract.Forabovesales,whenthe
buyertakesoverthegoods,thebuyerhastherighttoselltheproducts,andshouldbeartheriskofpricefluctuationorgoodsdamage
(b)Renderingofservices
RevenueisrecognizedfortherenderingofservicebytheGrouptoexternalpartiesuponthecompletionofrelatedservice.
(c)Transferofassetuserights
Interestincomeisrecognizedonatime-proportionbasisusingtheeffectiveinterestmethod.
23.Governmentgrants
(1)Judgmentbasisandaccountingmethodofgovernmentgrantsrelatedtoanasset
GovernmentgrantsarethemonetaryassettheGroupreceivesfromthegovernmentforfree,includingtaxrefund,governmentsubsidies,
etc.
GrantsfromthegovernmentarerecognisedwhenthereisareasonableassurancethatthegrantswillbereceivedandtheGroupwill
complywithallattachedconditions.Monetarygovernmentgrantsaremeasuredattheamountsreceivedorreceivable.Non-monetary
governmentgrantaremeasuredatfairvalue,ifthefairvaluecannotbereliablyobtained,itismeasuredatnominalamount.
Governmentgrantsrelatedtoanassetrefertothegovernmentassetswhichareobtainedbyenterprisesforthepurposesofpurchaseor
constructionof,orwhichformthelong-termassetsbyotherways.Governmentgrantsrelatedtoincomereferstogovernmentgrants
otherthanthoserelatedtoassets.
Governmentgrantsrelatedtotheassetsareoffsetagainstthecarryingamountoftheunderlyingassetsorrecognizedasdeferredincome
andareaccountedforinprofitorlossinareasonableandsystematicmannerwithintheusefullifeoftherelevantassets.
(2)Judgmentbasisandaccountingmethodofgovernmentgrantsrelatedtoincome
Governmentgrantsrelatedtoincomewhichareusedtocompensatefortherelatedcostsorlossesduringthesubsequentperiodare
recognizedasdeferredincomeandarerecognizedinthecurrentprofitorlossorrelatedexpensesfortheperiodofrecognitionofthe
relevantcostexpenseorloss.Therelevantexpensesorlossesincurred,directlyincludedinthecurrentprofitsandlossesoroffsetthe
relevantcosts.Similargovernmentgrantsusethesamepresentation.Governmentgrantsrelatedtodailyactivitiesareincorporatedinto
operatingprofit,whilethoseunrelatedtodailyactivitiesareincorporatedintonon-operatingincomeandexpenditure.
25.Deferredtaxassetsanddeferredtaxliabilities
Deferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognisedbasedonthedifferencesarisingbetweenthetaxbasesof
assetsandliabilitiesandtheircarryingamounts(temporarydifferences).Deferredtaxassetisrecognisedforthedeductiblelossesthat
canbecarriedforwardtosubsequentyearsfordeductionofthetaxableprofitinaccordancewiththetaxlaws.Nodeferredtaxliability
isrecognisedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill.Nodeferredtaxassetordeferredtaxliabilityis
recognisedforthetemporarydifferencesresultingfromtheinitialrecognitionofassetsorliabilitiesduetoatransactionotherthana
businesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Atthebalancesheetdate,deferred
taxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealisedor
theliabilityissettled.
Deferredtaxassetsareonlyrecognisedfordeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitis
probablethattaxableprofitwillbeavailableinthefutureagainstwhichthedeductibletemporarydifferences,deductiblelossesandtax
creditscanbeutilised.
Deferredtaxliabilitiesarerecognisedfortemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociates,exceptwhere
theGroupisabletocontrolthetimingofreversalofthetemporarydifference,anditisprobablethatthetemporarydifferencewillnot
reverseintheforeseeablefuture.Whenitisprobablethatthetemporarydifferencesarisingfrominvestmentsinsubsidiariesand
associateswillbereversedintheforeseeablefutureandthatthetaxableprofitwillbeavailableinthefutureagainstwhichthe
temporarydifferencescanbeutilised,thecorrespondingdeferredtaxassetsarerecognised.
Deferredtaxassetsandliabilitiesareoffsetwhen:
？deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtotheincometaxleviedbythesamethesametaxation
authorityonthesametaxpayerinthegroup;
？thattaxpayerwithintheGrouphasalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilities.
25.Leases
(1)Accountingmethodofoperatinglease
Leasepaymentsunderanoperatingleasearerecognisedonastraight-linebasisovertheperiodofthelease,andareeithercapitalisedas
partofthecostofrelatedassets,orchargedasanexpenseforthecurrentperiod.
Leaseincomeunderanoperatingleaseisrecognisedasrevenueonastraight-linebasisovertheperiodofthelease.
(2)Accountingmethodoffinancinglease
Aleasethattransferssubstantiallyalltherisksandrewardsincidentaltoownershipofanassetisafinancelease.Anoperatingleaseis
aleaseotherthanfinancinglease.
26.Othersignificantaccountingpoliciesandaccountingestimates
TheGroupcontinuallyevaluatesthecriticalaccountingestimatesandkeyassumptionappliedbasedonhistoricalexperienceandother
factors,includingexpectationsoffutureeventsthatarebelievedtobereasonable.
Thecriticalaccountingestimatesandkeyassumptionsthathaveasignificantriskofcausingamaterialadjustmenttothecarrying
amountsofassetsandliabilitieswithinthenextaccountingyearareoutlinedbelow:
(a)Incometaxes
TheGroupissubjecttoincometaxesinnumerousjurisdictions.Therearemanytransactionsandeventsforwhichtheultimatetax
determinationisuncertainduringtheordinarycourseofbusiness.SignificantjudgementisrequiredfromtheGroupindeterminingthe
provisionforincometaxesineachofthesejurisdictions.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthat
wereinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuch
determinationismade.
(b)Deferredincometax
Estimatesondeferredtaxassetsarebasedonestimatesonamountoftaxableincomeandapplicabletaxrateforeveryyear.
RealizationofdeferredincometaxissubjecttosufficienttaxableincomethatispossibletobeobtainedbytheGroupinthefuture.
Changeofthefuturetaxrateaswellasthereversedtimeoftemporarydifferencemighthaveeffectsontaxexpense(income)andthe
balanceofdeferredtaxassetsorliabilities.Thoseestimatesmayalsocausesignificantadjustmentondeferredtax.
(c)Impairmentoflong-termassets(excludinggoodwill)
Long-termassetsatthebalancesheetdateshouldbesubjecttoimpairmenttestingifthereareanyindicationsofimpairment.The
managementdetermineswhetherthelong-termassetsimpairedornotbyevaluatingandanalysingfollowingaspects:(1)whetherthe
eventaffectingassetsimpairmentoccurs;(2)whethertheexpectedobtainablepresentvalueoffuturecashflowsislowerthanthe
asset’scarryingamountbycontinuallyusingtheassetsordisposal;and(3)whethertheassumptionsusedinexpectedobtainable
presentvalueoffuturecashflowsareappropriate.
Variousassumptions,includingthediscountrateandgrowthrateappliedinthemethodofpresentvalueoffuturecashflow,are
requiredinevaluatingtherecoverableamountofassets.Iftheseassumptionscannotbeconformed,therecoverableamountshouldbe
modified,andthelong-termassetsmaybeimpairedaccordingly.
(d)Theusefullifeoffixedassets
Themanagementestimatestheusefullifeoffixedassets,basedonhistoricalexperiencesonusingfixedassetsthathavesimilar
propertiesandfunctions. Whentherearedifferencesbetweenactuallyusefullifeandpreviouslyestimation,themanagementwill
adjustestimationtousefullifeoffixedassets.Thefixedassetswouldbewrittenofforwrittendownwhenfixedassetsbeendisposedor
becameredundant. Therewillbedifferencebetweentheresultsofestimationandactualresultsfornextaccountingperiod,so
significantadjustmentsmaybemadetothecarryingamountoffixedassetsinbalancesheet.
(e)Goodwillimpairment
TheGrouptestsannuallywhethergoodwillhassufferedanyimpairment.Therecoverableamountofassetgroupsandgroupsofasset
groupsisthepresentvalueofthefuturecashflowsexpectedtobederivedfromthem.Thesecalculationsrequireuseofestimates(Note
4(12)).
Ifmanagementrevisesthegrossmarginthatisusedinthecalculationofthefuturecashflowsofassetgroupsandgroupsofassetgroups,
andtherevisedgrossmarginislowerthantheonecurrentlyused,theGroupwouldneedtorecognisefurtherimpairmentagainst
goodwill.
Ifmanagementrevisesthepre-taxdiscountrateappliedtothediscountedcashflows,andtherevisedpre-taxdiscountrateishigherthan
theonecurrentlyapplied,theGroupwouldneedtorecognisefurtherimpairmentagainstgoodwill.
Iftheactualgrossmargin/pre-taxdiscountrateishigher/lowerthanmanagement’sestimates,theimpairmentlossofgoodwill
previouslyprovidedforisnotallowedtobereversedbytheGroup
27.Changesinsignificantaccountingpoliciesandaccountingestimates
(1)Changesinsignificantaccountingpolicies
√Applicable □Notapplicable
Thecontentandreasonsofaccountingpolicychanges Approvalprocedure Remarks
TheMinistryofFinancepromulgatedtherevisedAccountingStandardforBusiness
EnterprisesNo.16-GovernmentGrantsonMay10,2017.TheCompanyhasadopted Boardofdirectors Noinfluence
theaboveguidelinestopreparethesemi-annualfinancialstatementsfor2017.
TheMinistryofFinancepromulgatedtherevisedAccountingStandardforBusinessEnterprisesNo.16-GovernmentGrantsonMay
10,2017.TheCompanyhasadoptedtheaboveguidelinestopreparethesemi-annualfinancialstatementsfor2017.Ithadnoeffecton
theGroup'sconsolidatedbalancesheetandtheCompany'sbalancesheetasat31December2016andtheconsolidationandthe
Company'sincomestatementforthesixmonthsended30June2016.
(2)Changesinsignificantaccountingestimates
□Applicable√Notapplicable
28.Others
Safetyproductioncosts
AccordingtorelevantregulationsoftheMinistryofFinanceandNationalAdministrationofWorkSafety,asubsidiaryoftheGroup
whichisengagedinproducingandsellingpolysiliconappropriatessafetyproductioncostsonfollowingbasis:
(a) 4%forrevenuebelowRMB10million(inclusive)oftheyear;
(b) 2%fortherevenuebetweenRMB10milliontoRMB100million(inclusive)oftheyear;
(c) 0.5%fortherevenuebetweenRMB100milliontoRMB1billion(inclusive)oftheyear;
(d) 0.2%fortherevenueaboveRMB1billionoftheyear.
Thesafetyproductioncostsismainlyusedfortheoverhaul,renewalandmaintenanceofsafetyfacilities.Thesafetyproductioncosts
arechargedtocostsofrelatedproductsorprofitorlosswhenappropriated,andsafetyproductioncostsinequityaccountarecredited
correspondingly.Whenusingthespecialreserve,iftheexpendituresareexpensesinnature,theexpensesincurredareoffsetagainstthe
specialreservedirectlywhenincurred.Iftheexpendituresarecapitalexpenditures,whenprojectsarecompletedandtransferredto
fixedassets,thespecialreserveshouldbeoffsetagainstthecostoffixedassets,andacorrespondingaccumulateddepreciationare
recognised.Thefixedassetsarenolongerbedepreciatedinfuture.
Segmentinformation
TheGroupidentifiesoperatingsegmentsbasedontheinternalorganisationstructure,managementrequirementsandinternalreporting
system,anddisclosessegmentinformationofreportablesegmentswhichisdeterminedonthebasisofoperatingsegments.
AnoperatingsegmentisacomponentoftheGroupthatsatisfiesallofthefollowingconditions:(1)thecomponentisabletoearn
revenuesandincurexpensesfromitsordinaryactivities;(2)whoseoperatingresultsareregularlyreviewedbytheGroup’s
managementtomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformance,and(3)forwhichthe
informationonfinancialposition,operatingresultsandcashflowsisavailabletotheGroup.Iftwoormoreoperatingsegmentshave
similareconomiccharacteristicsandsatisfycertainconditions,theyareaggregatedintoonesingleoperatingsegment.
VI.Taxation
1.Themaincategoriesandratesoftaxes
Taxitems Taxbasis Taxrate
Taxablevalueaddedamount(Taxpayableiscalculated
Valueaddedtax(“VAT”) usingthetaxablesalesamountmultipliedbytheeffective 6%-17%
taxratelesscurrentperiod’sdeductibleVATinput)
Urbanconstructiontax TotalVAT,BusinesstaxandGST 1%-7%
Enterpriseincometax Taxableincome 0%-25%
Educationalsurtax TotalVAT,BusinesstaxandGST 3%-5%
Resourcetax QuantitiesofSilicasold RMB3perton
2.Taxincentives
ThemaintaxincentivestheGroupisentitledtoareasfollows:
TianjinEnergyConservationGlassCo.,Ltd.(“TianjinEnergyConservation”)passedreviewonahighandnewtechenterprisein2015
andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthree
yearssince2015.
DongguanCSGArchitecturalGlassCo.,Ltd.(“DongguanCSG”)passedreviewonahighandnewtechenterprisein2016and
obtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyears
since2016.
WujiangCSGNorth-eastArchitecturalGlassCo.,Ltd.(“WujiangCSG”)passedreviewonahighandnewtechenterprisein2014and
obtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyears
since2014.Itisonareviewofhighandnewtechenterpriseatpresent,andtemporarilyappliesto15%incometaxratefortheperiod.
DongguanCSGSolarGlassCo.,Ltd.(“DongguanCSGSolar”)passedreviewonahighandnewtechenterprisein2014andobtained
theCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince
2014.Itisonareviewofhighandnewtechenterpriseatpresent,andtemporarilyappliesto15%incometaxratefortheperiod.
YichangCSGSiliconCo.,Ltd.(“YichangCSGSilicon”)passedreviewonahighandnewtechenterprisein2014andobtainedthe
CertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2014.
Itisonareviewofhighandnewtechenterpriseatpresent,andtemporarilyappliesto15%incometaxratefortheperiod.
DongguanCSGPV-techCo.,Ltd.(“DongguanCSGPV-tech”)passedreviewonahighandnewtechenterprisein2016andobtained
theCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince
2016.
HebeiShichuangGlassCo.,Ltd.(“HebeiShichuang”)passedreviewonahighandnewtechenterprisein2016andobtainedthe
CertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2016.
WujiangCSGGlassCo.,Ltd.(“WujiangCSG”)wasrecognisedasahighandnewtechenterprisein2014,andobtainedtheCertificate
ofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2014.Itis
onareviewofhighandnewtechenterpriseatpresent,andtemporarilyappliesto15%incometaxratefortheperiod.
XianningCSGGlassCoLtd.(“XianningCSG”)wasrecognisedasahighandnewtechenterprisein2014,andobtainedtheCertificate
ofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2014.Itis
onareviewofhighandnewtechenterpriseatpresent,andtemporarilyappliesto15%incometaxratefortheperiod.
XianningCSGEnergy-SavingGlassCo.,Ltd.(“XianningCSGEnergy-Saving”)wasrecognisedasahighandnewtechenterprisein
2015,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%tax
rateforthreeyearssince2015.
YichangCSGPhotoelectricGlassCo.,Ltd.(“YichangCSGPhotoelectric”)wasrecognisedasahighandnewtechenterprisein2015,
andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxratefor
threeyearssince2015.
ShenzhenCSGDisplaywasrecognisedasahighandnewtechenterprisein2015,andobtainedtheCertificateofHighandNewTech
Enterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2015.
YichangCSGDisplayCo.,Ltd(“YichangCSGDisplay”)wasrecognisedasahighandnewtechenterprisein2016,andobtainedthe
CertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince
2016.
QingyuanCSGNewEnergy-SavingMaterialsCo.,Ltd.(“QingyuanCSGEnergy-Saving”)wasrecognisedasahighandnewtech
enterprisein2016,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itapplies
to15%taxrateforthreeyearssince2016.
SichuanCSGEnergyConservationGlassCo.,Ltd.(“SichuanCSGEnergyConservation”)obtainsenterpriseincometaxpreferential
treatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%fortheperiod.
ChengduCSGGlassCo.,Ltd.(“ChengduCSG”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,and
temporarilycalculatesenterpriseincometaxatataxrateof15%fortheperiod.
QingyuanCSGNewEnergyCo.,Ltd.(“QingyuanCSGNewEnergy”),SuzhouCSGPVEnergyCo.,Ltd.(“SuzhouCSGPVEnergy”),
JiangsuWujiangCSGNewEnergyCo.,Ltd.(“WujiangCSGNewEnergy”),andYichangCSGNewEnergyCo.,Ltd.(“YichangCSG
NewEnergy”)arepublicinfrastructureprojectspeciallysupportedbythestateinaccordancewiththeArticle87inImplementing
RegulationsoftheLawofthePeople'sRepublicofChinaonEnterpriseIncomeTax,andcanenjoythetaxpreferentialpolicyof
“three-yearexemptionsandthree-yearhalves”,thatis,startingfromthetaxyearwhenthefirstrevenuefromproductionandoperation
occurs,theenterpriseincometaxisexemptedfromthefirsttothethirdyear,whilehalfoftheenterpriseincometaxiscollectedforthe
followingthreeyears.QingyuanCSGNewEnergy,SuzhouCSGPVEnergyandWujiangCSGNewEnergystartedtocarryout
operationsin2015,whileYichangCSGNewEnergystartedoperationin2016.Theapplicableenterpriseincometaxrateforthemis
0%fortheperiod.
Inaddition,pursuanttothedocumentFogangGuoShuiShuiTong[2015]No.2489,theVATforphotovoltaicpowergenerationof
QingyuanCSGNewEnergyissubjecttotherefunduponcollectionpolicy.
3.Others
SomesubsidiariesoftheGrouphaveusedthe“exempt,credit,refund”methodongoodsexportedandtherefundrateis5%-17%.
VII.Notestotheconsolidatedfinancialstatements
1.Cashatbankandonhand
Unit:RMB
Item Balanceattheendoftheperiod Balanceatthebeginningoftheperiod
Cashonhand 27,530 17,239
Cashatbank 932,022,992 584,549,751
Othercashbalances 2,184,679 2,236,515
Total 934,235,201 586,803,505
Including:Totaloverseasdeposit 19,394,575 12,956,226
Othercashbalancesincludemargindepositsfortheapplicationofopeningletterofcreditandloanfromthebank,amountingtoRMB
2,184,679
(31Dec.2016:RMB
2,236,515),
whichisrestrictedcash.
2.Notesreceivable
(1)Notesreceivablelistedbyclassification
Unit:RMB
Item Balanceattheendoftheperiod Balanceatthebeginningoftheperiod
Bankacceptancenotes 248,524,397 138,557,412
Tradeacceptancenotes 288,032,806 317,789,825
Total 536,557,203 456,347,237
(2)NotesreceivablewhichhasbeenendorsedordiscountedattheendofthetermbytheCompanybutnot
yetdueatbalancesheetdate
Unit:RMB
Amountofrecognitiontermination Amountofnotterminatedrecognitionatthe
Item attheperiod-end period-endBankacceptancenotes 1,647,228,930Tradeacceptancenotes 181,790,787Total 1,647,228,930 181,790,7873.Accountsreceivable(1)Accountsreceivabledisclosedbycategory Unit:RMB Endofterm Beginningofterm Bookbalance Baddebtprovision Bookbalance BaddebtprovisionCategories Propor Propor Bookvalue Propor ProporBookvalue Amount Amount Amount Amount tion% tion% tion% tion%Accounts
receivable
withdrawnbad
debtprovision 684,955,960 98% 13,168,976 2%671,786,984631,863,585 98% 12,187,534 2%619,676,051
accordingtocredit
risks
characteristicsAccount
receivablewith 12,404,070 2% 4,247,139 34% 8,156,931 12,590,789 2% 4,280,857 34% 8,309,932
minorindividual
amountbutbad
debtprovisionis
provided
Total 697,360,030 100% 17,416,115 2%679,943,915644,454,374 100% 16,468,391 3%627,985,983
Accountsreceivablewithlargeamountindividuallyandbaddebtprovisionswereprovided
□Applicable√Non-applicable
Accountsreceivableonwhichbaddebtprovisionsareprovidedonageanalyzebasisintheportfolio
□Applicable√Non-applicable
Accountsreceivableonwhichbaddebtprovisionsareprovidedonpercentageanalyzebasisinaportfolio
√Applicable□Non-applicable
Unit:RMB
Closingbalalnce
Nameofportfolio
Accountsreceivable Baddebtprovision Proportion%
Portfolio1 684,955,960 13,168,976 2%
Portfolio2
Total 684,955,960 13,168,976 2%
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiod
ThewithdrawalamountofthebaddebtprovisionduringthereportperiodwasofRMB5,374,252.Theamountofthereversedor
collectedpartduringthereportperiodwasofRMB4,358,997.
(3)Theactualwrite-offaccountsreceivable
Unit:RMB
Item Write-offamount
Accountsreceivable 67,531
(4)Top5oftheclosingbalanceoftheaccountsreceivablecolletedaccordingtothearrearsparty
Asat30June2017,thetop5oftheclosingbalanceoftheaccountsreceivablecolletedaccordingtothearrearspartywerecollected
andanalyzedasfollows:
Balance Provisionforbaddebts Percentageintotalaccountsreceivablebalance
Total balances for the five 169,168,209 (3,383,364) 24%
largestaccountsreceivable
4.Advancestosuppliers
(1)Listedbyaginganalysis
Unit:RMB
Closingbalance Openingbalance
Age Proportion Proportion
Amount Amount
ratio(%) ratio(%)
within1year 148,306,533 91% 80,819,387 84%
1-2years 13,940,844 9% 14,913,745 16%
Total 162,247,377 -- 95,733,132 --
Asat30June2017,advancestosuppliersageingoveroneyearamountto
RMB13,940,844
(31December2016:
RMB14,913,745).
Theyweremainlytheadvancesofmaterials,andthepaymenthadnotbeenselectedbecausethematerialshadnotbeenreceived.
(2)Top5oftheclosingbalanceoftheadvancestosupplierscolletedaccordingtothetarget
Asat30June2017,thetopfivelargestadvancestosuppliesaresetoutasbelow:
Balance Percentageintotaladvancesbalance
Totaladvancesforthefivelargestadvances 58,816,501 36%
5.Otheraccountreceivable
(1)Otheraccountsreceivabledisclosedbycategory:
Unit:RMB
Closingbalance Openningbalance
Baddebt
Bookbalance Baddebtprovision Bookbalance
Categories provision
Bookvalue Bookvalue
Propor Propor Propor Propor
Amount Amount Amount Amount
tion% tion% tion% tion%
Otheraccounts
receivable
withdrawnbaddebt
34,326,598 100% 767,508 2% 33,559,090 33,903,217 100% 674,068 2% 33,229,149
provisionaccording
tocreditrisks
characteristicsTotal 34,326,598 100% 767,508 2% 33,559,090 33,903,217 100% 674,068 2% 33,229,149Statementoncategoriesofotherreceivableaccounts:Otheraccountsreceivablewithlargeamountandwereprovidedbaddebtprovisionsindividuallyatendofperiod.□Applicable√Non-applicable
Otheraccountsreceivableintheportfolioonwhichbaddebtprovisionswereprovidedonageanalyzebasis
□Applicable√Non-applicable
Otheraccountsreceivableintheportfolioonwhichbaddebtprovisionswereprovidedonpercentagebasis
√Applicable□Non-applicable
Unit:RMB
Closingbalance
Nameofportfolio
Otherreceivableaccounts Baddebtprovision proportion%
portfolio1 34,326,598 767,508 2%
Total 34,326,598 767,508 2%
Explanationfordeterminingthebasisoftheportfolio:
Otheraccountsreceivableintheportfolioonwhichbaddebtprovisionswereprovidedonotherbasis
□Applicable√Non-applicable
(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiod
ThewithdrawalamountofthebaddebtprovisionduringthereportperiodwasofRMB127,208.Theamountofthereversedor
collectedpartduringthereportperiodwasofRMB33,768.
(3)Otheraccountsreceivableclassifiedbythenatureofaccounts
Unit:RMB
Nature Closingbalance Openingbalance
Refundabledeposits 6,953,820 6,121,403
Paymentsmadeonbehalfofotherparties 23,225,811 25,019,422
Pettycash 1,389,488 959,785
Exporttaxrebatesreceivable 805,438 755,372
Others 1,952,041 1,047,235
Total 34,326,598 33,903,217
(4)Top5oftheclosingbalanceoftheotheraccountsreceivablecollatedaccordingtothearrearsparty
Unit:RMB
Proportionofthe
Nameofthe totalyearend
companies Closingbalanceof
Nature Closingbalance Ages balanceofthe
baddebtprovision
Industrial accountsreceivable
(%)
Governmentagency Independent third 11,067,7541to3years 32% 221,355
A party
Independent third WWithin1year
CompanyB 4,268,347 12% 85,367
party Independent third Within1yearCompanyC 3,183,029 9% 63,661party Independent third Within1yearCompanyD 1,900,000 6% 38,000partyGovernmentagency Independent third Within1year 1,196,150 3% 23,923E partyTotal -- 21,615,280 -- 62% 432,3066.Inventories(1)Categoriesofinventory Unit:RMB Closingbalance Openingbalance Items Impairment Impairment Bookbalance Bookvalue Bookbalance Bookvalue provision provisionRawmaterials 254,363,351 1,480,641 252,882,710 166,639,254 2,025,446 164,613,808Productinprocess 20,325,740 20,325,740 18,893,651 18,893,651Productsinstock 330,050,877 3,147,241 326,903,636 274,559,889 6,347,741 268,212,148Materialin
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)Inventoryimpairmentprovision
Unit:RMB
Increasedthisterm Decreasedthisterm
Categories Openingbalance Closingbalance
Withdrawal Other Reverseorwrite-off Other
Rawmaterials 2,025,446 544,805 1,480,641
Productsinstock 6,347,741 3,200,500 3,147,241
Total 8,373,187 3,745,305 4,627,882
Detailsofinventoryimpairmentprovisionasfollowing:
Basisforprovisionfordeclineinthevalueofinventories Reasonsofreversalofthedeclinein
thevalueofinventoriesintheperiod
Finishedgoods Theamountofcarryingamountlessnetrealisablevaluedueto Sold
declineinpriceofproducts
Rawmaterials Theamountofbookvaluelessnetrealisablevalueduetosluggish Used
ordamagedrawmaterials
7.Othercurrentassets
Unit:RMB
Item Closingbalance Openingbalance
VATtobeoffset 186,548,195 150,317,894
Asstesheldforsale 40,049,163 40,049,163
Enterpriseincometaxprepaid 1,590,919 1,325,723
VATinputtoberecognised 21,181,042 8,212,797
Total 249,369,319 199,905,577
8.Fixedassets
(1)Particularsoffixedassets
Unit:RMB
Machineryand Motorvehicles
Items Buildings Total
equipment andothers
I.Originalbookvalue:
1.Openingbalance 3,911,336,527 11,699,296,248 201,923,067 15,812,555,842
2.Increasedamountoftheperiod
(1)Acquisition 1,007,850 7,963,289 2,988,342 11,959,481
(2)Transfersfromconstructioninprogress 70,349,000 851,590,771 1,185,606 923,125,377
(3)Increasefromenterprisecombination
(4)Others 731,040 1,858,203 472,773 3,062,016
3.Decreasedamountoftheperiod
(1)Disposalorretirement 495,370 2,576,058 3,071,428
(2)Others 3,695,395 282,254,513 285,949,908
4.Closingbalance 3,979,729,022 12,277,958,628 203,993,730 16,461,681,380
II.Accumulativedepreciationand
accumulativeamortization
1.Openingbalance 629,946,237 3,287,606,208 172,265,020 4,089,817,465
2.Increasedamountoftheperiod
(1)Withdrawal 61,506,196 408,580,685 11,232,619 481,319,500
3.Decreasedamountoftheperiod
(1)Disposalorretirement 378,003 2,461,513 2,839,516
(2)Transferredtoconstructioninprogress 1,895,250 138,978,164 140,873,414
4.Closingbalance 689,557,183 3,556,830,726 181,036,126 4,427,424,035
III.Depreciationreserves
1.Openingbalance 264,765,386 264,765,386
2.Increasedamountoftheperiod
(1)Withdrawal
3.Decreasedamountoftheperiod
(1)Disposalorretirement
(2)Others 4,010,176 4,010,176
4.Closingbalance 260,755,210 260,755,210
IV.Bookvalue
1.Closingbookvalue 3,290,171,839 8,460,372,692 22,957,604 11,773,502,135
2.Openingbookvalue 3,281,390,290 8,146,924,654 29,658,047 11,457,972,991
(2)Fixedassetnotlicensedyet
Unit:RMB
Items Bookvalue Reasonfornotgranted
910,163,588Havesubmittedtherequireddocumentsandareintheprocessof
Buildings
application,ortherelatedlanduserightcertificatepending
DuringJanuarytoJune2017,thedepreciationamountprovidedforfixedassetswasRMB481,319,500(JanuarytoJune2016:RMB
421,993,622),andtheamountofdepreciationexpenseschargedtocostofsales,sellinganddistributionexpenses,generaland
administrativeexpensesandconstructioninprogresswasRMB448,195,663,RMB482,108,RMB31,885,617,andRMB756,112
(JanuarytoJune2016:RMB
385,642,218,
RMB
506,576,
RMB
26,989,222,
RMB
8,855,606),
respectively.
DuringJanuarytoJune2017,thecostoffixedassetstransferredfromconstructioninprogressamountedtoRMB
923,125,377
(JanuarytoJune2016:RMB901,652,337).
9.Constructioninprocess
(1)Particularsofconstructioninprocess
Unit:RMB
Closingbalance Openingbalance
Item Impairment Impairment
Bookbalance Bookvalue Bookbalance Bookvalue
provision provision
Yichang1GWsilicon
346,209,311 346,209,311 95,011,027 95,011,027
sliceproject
YichangCSGDisplay
305,291,976 18,170,650 287,121,326 274,342,571 14,160,474 260,182,097
paneldisplayproject
XianningCSG
PhotoelectricGlass 221,147,847 221,147,847 41,267,876 41,267,876
project
Hebeifloat600T
120,324,473 120,324,473
tech-innovationproject
ZhanjiangPVPVpower
53,766,946 53,766,946 8,855,560 8,855,560
stationproject
Wujiangfloatglass
70,357,072 19,876,460 50,480,612 70,178,986 19,876,460 50,302,526
project
DongguanSolarGlass
PhaseIandII 78,970,995 33,075,116 45,895,879 78,970,995 33,075,116 45,895,879
improvementproject
Sichuanenergy-saving
10,493,107 10,493,107 13,005,928 13,005,928
projectPhaseIII
DongguanPV250MW
modulecapacity 10,141,901 10,141,901
expansionproject
DongguanPV100MV
cellproductioncapacity 8,343,263 8,343,263
expansionproject
Yichang700MWsilicon
2,018,255 2,018,255 1,775,641 1,775,641
sliceexpansionproject
WujiangPhotovoltaic
PackagingMaterials 1,693,809 1,693,809 1,583,553 1,583,553
Project
Xianningenergy-saving
1,354,508 1,354,508 1,083,430 1,083,430
glassproject
DongguanPVTech 1,146,672 1,146,672 8,224,072 8,224,072
200MWPV-techBattery
Expansionproject
Yichang5000T
electronic-grade 171,211,288 171,211,288
polysiliconproject
Chengdufloat550Tline
102,304,740 102,304,740
tech-renovationHebeifloat900T 388,627,081 388,627,081tech-innovationprojectHeyuanPVtech11MVdistributedgeneration 85,126,446 85,126,446project
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
(2)Movementofsignificantproject
Unit:RMB
Capitalizin
Investmen Accumulate Including:
Transferred grateof
Opening Increased Other Closing ton of interest
Projects Budget intofixed Progress interest Fundrecourse
balance thisterm decreases balance budget interest capitalized
assets this
(%) capitalized thisterm
period%
Yichang1GW Internalfundand
1,073,209,600 95,011,027251,392,592 194,308 346,209,311 48.00% 65.00% 3,371,909 2,825,684 4.41%
siliconsliceproject bankloan
YichangCSG
Internal fund and
Displaypanel 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%
bankloan
displayproject
XianningCSG
PhotoelectricGlass 510,000,000 41,267,876180,424,957 544,986 221,147,847 54.00% 70.00% 3,030,956 3,030,956 4.75%Internalfundand
project bankloan
Hebeifloat600T
tech-innovation 181,250,000 120,324,473 120,324,473 2.00% 2.00% Internalfundand
project bankloan
ZhanjiangPVPV
powerstation 130,000,000 8,855,560 44,911,386 53,766,946 40.00% 45.00% 918,139 139,762 4.57%Internalfundand
project bankloan
Wujiangfloatglass Internalfundand
919,891,000 70,178,986 431,588 253,502 70,357,072 100.00%100.00% 20,120,444
project bankloan
DongguanSolar
GlassPhaseIand 396,410,000 78,970,995 78,970,995 80.00% 80.00% Internalfund
IIimprovement
project
Sichuan
energy-saving 222,817,517 13,005,928 2,512,821 10,493,107 99.00% 99.00% Internalfund
projectPhaseIII
DongguanPV
250MWmodule Internal fund and
28,000,000 10,329,122 187,221 10,141,901 36.00% 50.00% 45,374 45,374 4.80%
capacityexpansion bankloan
project
DongguanPV
100MVcell Internal fund and
15,000,000 8,343,263 8,343,263 56.00% 70.00% 37,327 37,327 4.80%
productioncapacity bankloan
expansionproject
Yichang700MW
Internal fund and
siliconslice 697,000,000 8,224,072 7,077,400 1,146,672 100.00%100.00% 32,015,800
bankloan
expansionproject
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 bankloan
MaterialsProject
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
bankloan
glassproject
DongguanPVTech
200MWPV-tech
295,270,606 1,083,430 373,576 68,594 33,904 1,354,508 99.00%100.00% 11,306,278
BatteryExpansion Internalfundand
project bankloan
Yichang5000T Internalfundand
698,396,700 171,211,288 46,327,655216,595,546 943,397 30.00% 35.00% 7,177,033 3,967,498 4.41%
electronic-grade bankloan
polysiliconproject
Chengdufloat550T
200,000,000 102,304,740 57,219,831159,524,571 92.00%100.00% Internalfund
linetech-renovation
Hebeifloat900T
tech-innovation 124,000,000 388,627,081 4,503,619393,130,700 100.00%100.00% 4,211,893 1,057,593 4.94%Internalfundand
project bankloan
HeyuanPVtech
Internalfundand
11MVdistributed 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%
bankloan
generationproject
Internalfundand
others 1,046,953,400 87,639,233 46,885,679 36,185,701 98,339,211 67,530,341 910,042
bankloan
Total 11,144,928,1411,429,208,427827,276,849923,125,377 2,812,3021,330,547,597 -- --176,698,935 14,034,183 --
10.Intangibleassets
(1)Particularsofintangibleassets
Unit:RMB
Item Landuserights Patents Mineralrights Others Total
I.Originalbookvalue:
1.Openingbalance 1,026,603,700 199,922,986 4,456,536 23,548,047 1,254,531,269
2.Increasedamountoftheperiod
(1)Acquisition 2,856,020 13,539 2,869,559
(2)InternalR&D 6,097,439 6,097,439
(3)Increasefromenterprisecombination
3.Decreasedamountoftheperiod
(1)Disposal
4.Closingbalance 1,026,603,700 208,876,445 4,456,536 23,561,586 1,263,498,267
II.Totalaccruedamortization
1.Openingbalance 128,007,677 57,225,743 3,306,083 20,322,309 208,861,812
2.Increasedamountoftheperiod
(1)Withdrawal 9,813,201 7,601,215 200,321 2,141,791 19,756,528
3.Decreasedamountoftheperiod
(1)Disposal
4.Closingbalance 137,820,878 64,826,958 3,506,404 22,464,100 228,618,340
III.Impairmentprovision
1.Openingbalance 13,201,347 9,133 13,210,480
2.Increasedamountoftheperiod
(1)Withdrawal
3.Decreasedamountoftheperiod
(1)Disposal
4.Closingbalance 13,201,347 9,133 13,210,480
IV.Bookvalue
1.Closingbookvalue 888,782,822 130,848,140 950,132 1,088,353 1,021,669,447
2.Openingbookvalue 898,596,023 129,495,896 1,150,453 3,216,605 1,032,458,977
Attheendoftheperiod,theintangibleassetsarisingfrominternalresearchanddevelopmentaccountedfor10.20%oftotalof
intangibleassets.
(2)Landuserightnotlicensedyet
Unit:RMB
Item Bookvalue Reasonfornotgranted
Land 5,595,776intheprocess
DuringJan.-Jun.2017,theamortisationofintangibleassetsamountedtoRMB
19,756,528
(Jan.-Jun.2016:RMB
16,315,423).
Asat30June2017,ownershipcertificatesoflanduseright(“LandownershipCertificates”)forcertainlanduserightsoftheGroup
withcarryingamountsofapproximatelyRMB
5,595,776
(cost:RMB
6,586,712)
hadnotyetbeenobtainedbytheGroup(asat31
December2016,carryingamount:RMB
5,718,191,
cost:RMB
6,586,712).
TheCompany’smanagementisoftheviewthatthereis
nolegalrestrictionfortheGrouptoapplyforandobtaintheLandOwnershipCertificatesandhasnoadverseeffectontheGroup’s
businessoperation.
11.Developmentexpenditure
Unit:RMB
Thedecreaseamountintheperiod
Theincreased
Item Openingbalance Recognisedas Transferingainsand Closingbalance
amountintheperiod
intangibleassets losses
Development 66,927,714 15,642,633 6,097,439 423,437 76,049,471expenditure
Total 66,927,714 15,642,633 6,097,439 423,437 76,049,471
DuringJan.-Jun.2017,thetotalamountofresearchanddevelopmentexpendituresoftheGroupwasRMB
166,809,377
(Jan.-Jun.
2016:RMB155,478,325),includingRMB
151,590,181
(Jan.-Jun.2016:RMB127,759,895)recordedinincomestatementforcurrent
periodandRMB
6,097,439 wererecognizedasintangibleassets(Jan.-Jun.2016:nil).Asat30June2017,theintangibleassetsarisingfrominternalresearchanddevelopmentaccountedfor10.2%
ofthetotalofbookvalueofintangibleassets(31December2016:
9.51%).
12.Goodwill
(1)Bookvalueofgoodwill
Unit:RMB
Nameofthecompaniesor
Openingbalance Increasedthisterm Decreasedthisterm Closingbalance
goodwillitem
TianjingCSGEnergy-saving
3,039,946 3,039,946
Company
ShenzhenDisplayCompany 4,857,406 4,857,406
XianningFengweiCompany 389,494,804 389,494,804
Total 397,392,156 397,392,156
ThegoodwillallocatedtotheassetgroupsandgroupsofassetgroupsfromTianjingCSGEnergy-savingwassummarisedbyoperating
segmentsasArchitecturalGlasssegment.ThegoodwillallocatedtotheassetgroupsandgroupsofassetgroupsfromShenzhenCSG
DisplayandXianningCSGPhotoelectricaresummarisedbyoperatingsegmentsasElectronicGlassandDisplaysegment.
TheCompany'smanagementconsideredthatthegoodwillwasnotimpairedasat30June2017.
Therecoverableamountofassetgroupsisdetermindedbynetpresentvalueofestimatedfuturecashflowswhichisdetermined
accordingtothefive-yearbudgetapprovedbymanagement.Thecashflowexceedfiveyearsisforcastedbyusinggrowthratesnot
exceedingsimilarlong-termaveragegrowthratesofeachassetgroup’sindustry.Thediscountratesusedarethepre-taxinterestrates
thatareabletoreflecttherisksspecifictotherelatedassetgroups.
13.Long-termexpensestobeamortized
Unit:RMB
Item Openingbalance Increasedthisterm Amortizedthisterm Closingbalance
Expensestobeamortized 975,660 9,496,897 779,455 9,693,102
Total 975,660 9,496,897 779,455 9,693,102
14.Deferredincometaxasset/deferredincometaxliabilities
(1)Deferredincometaxassetshadnotbeenoff-set
Unit:RMB
Closingbalance Openingbalance
Item Deductibletemporary Deferredincometax Deductibletemporary Deferredincometax
difference assets difference assets
Provisionforasset
400,092,300 60,026,145 410,272,182 61,899,046
impairmentsDeductibleloss 137,896,780 22,522,859 164,790,392 28,883,903Governmentgrants 130,489,613 20,809,503 129,722,993 20,654,199Accruedexpenses 66,241,073 11,953,528 81,018,069 12,352,386Depreciationoffixed 26,759,268 7,741,138 28,241,461 6,320,146assets
Total 761,479,034 123,053,173 814,045,097 130,109,680
(2)Deferredincometaxliabilitieshadnotbeenoff-set
Unit:RMB
Closingbalance Openingbalance
Item Deductibletemporary Deferredincometax Deductibletemporary Deferredincometax
difference liabilities difference liabilities
Depreciationoffixed
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)Thenetbalancesofdeferredtaxassetsorliabilities
Unit:RMB
Off-setamountof Closingbalanceof Off-setamountof Openingbalanceof
deferredincometax deferredincometax deferredincometax deferredincometax
Item assetsandliabilitiesat assetsorliabilitiesafter assetsandliabilitiesat assetsorliabilitiesafter theperiod-end off-set theperiod-beginning off-setDeferredtaxassets 38,355,963 84,697,210 33,657,826 96,451,854Deferredtaxliabilities 38,355,963 24,164,221 33,657,826 29,749,137(4)Detailsofunrecogniseddeferredincometaxassets Unit:RMB Item Closingbalance OpeningbalanceDeductiblelosses 410,872,906 342,455,782Total 410,872,906 342,455,782(5)Deductiblelossesofunrecognizeddeferredincometaxassetswillduethefollowingyears Unit:RMB Year Closingbalance Openingbalance Note2018年 54,100,000 54,100,0002019年 82,300,000 82,300,0002020年 94,430,197 94,430,1972021年 111,625,585 111,625,5852022年 68,417,124
Total 410,872,906 342,455,782 --
ThedeductiblelossoftheunrecognizeddeferredincometaxassetsismainlyattributabletotheCompanyandsomeofthesubsidiaries
whichhavebeenclosed.ThemanagementoftheCompanycannotexpecttheCompanyandthesubsidiariestogeneratesufficient
taxableincomewhichcanbeusedtodeductsuchdeductiblelossesinthefuture.Therefore,deferredincometaxassetsarenot
recognized.
15.Othernon-currentassets
Unit:RMB
Item Closingbalance Openingbalance
Prepaymentforequipmentandsoftware
74,836,840 69,945,550
upgradingexpenses
VATinputtobeoffset 10,718,843
Prepaymentforleaseoflanduserights 6,510,000 6,510,000
Total 81,346,840 87,174,393
16.Short-termloans
(1)Categoriesofshort-termloans
Unit:RMB
Item Closingbalance Openingbalance
Guaranteedloan 709,694,000 367,618,369
Unsecuredloan 1,690,000,000 1,650,251,293
Ultra-short-termfinancebonds(iii) 2,000,000,000
Total 2,399,694,000 4,017,869,662
(i)On17May2016,theCompanyissuedthePhaseIIultra-short-termfinancialbondsofRMB900,000,000for2016,withthematurity
dataof13February2017andannualrateof4.18%.Asatthereportingdate,suchshort-termbondshadbeenrepaid.
On2August2016,theCompanyissuedthePhaseIIIultra-short-termfinancialbondsofRMB600,000,000for2016,withthematurity
dataof1May2017andannualrateof3.67%.
On1September2016,theCompanyissuedthePhaseIVultra-short-termfinancialbondsofRMB500,000,000for2016,withthe
maturitydataof2June2017andannualrateof3.50%.
(ii)Asat30June2017,theCompanyprovideditssubsidiarieswithguaranteefortheshort-termborrowingsofRMB709,694,000(31
December2016:RMB367,618,369),andtheCompanyhadnocounterguaranteefromminorityshareholdersofsubsidiaries(31
December2016:Nil).
(iii)Asat30June2017,theinterestofshort-termborrowingsvariedfrom2.70%to5.00%(31December2016:2.70%to4.79%).
17.Notespayable
Unit:RMB
Category Closingbalance Openingbalance
Bankacceptancenotes 114,500,000 20,000,000
Total 114,500,000 20,000,000
18.Accountspayable
(1)Particularsofaccountspayable
Unit:RMB
Item Closingbalance Openingbalance
Accountpayableformaterials 833,168,302 747,769,987
Accountpayableforequipments 281,497,857 233,779,329
Accountpayableforconstructions 171,181,012 100,246,462
Accountpayableforfreight 57,741,846 40,916,380
Accountpayableforwaterandelectricity 33,639,900 44,602,055
Others 5,271,561 2,555,157
Total 1,382,500,478 1,169,869,370
(2)Significantaccountspayabledueforoveroneyear
Unit:RMB
Item Closingbalance Unpaidreason
Accountpayableforconstructionand Astheconstruction workhadnotpassedthefinal
98,986,756
equipments. acceptancetestyet,thebalancewasnotyetsettled.
Total 98,986,756 --
Asat30June2017,theamountofaccountspayableover1yearwasapproximatelyRMB98,986,756(31December2016:RMB
140,385,720),whichmainlycomprisedpayablesforconstructionandequipment.Astheconstructionworkhadnotpassedthefinal
acceptancetestyet,thebalancewasnotyetsettled.
19.Advancesfromcustomers
(1)Listofadvancefromcustomers
Unit:RMB
Item Closingbalance Openingbalance
Advancesfromcustomers 201,549,137 142,330,979
Total 201,549,137 142,330,979
20.Employeebenefitspayable
(1)ListofEmployeebenefitspayable
Unit:RMB
Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance
I.Short-termemployee
193,166,719 598,752,219 618,819,592 173,099,346
benefits
II.Welfareafter
departure-defined 205,520 53,146,283 53,264,828 86,975
contributionplans
Total 193,372,239 651,898,502 672,084,420 173,186,321
(2)Listofshort-termemployeebenefits
Unit:RMB
Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance
1.Wagesandsalaries,bonuses,
159,601,219 506,010,114 548,380,471 117,230,862
allowancesandsubsidies
2.Socialsecuritycontributions 50,331 23,386,459 23,369,781 67,009
Including:Medicalinsurance 31,340 20,305,292 20,282,053 54,579
Workinjuryinsurance 12,677 2,271,511 2,275,803 8,385
Maternityinsurance 6,314 809,656 811,925 4,045
3.Housingfunds 2,603,791 26,571,506 26,290,058 2,885,239
4.Labourunionfundsand
15,571,378 7,084,140 8,025,385 14,630,133
employeeeducationfunds
5.Managementbonusfor
15,340,000 35,700,000 12,753,897 38,286,103
performanceTotal 193,166,719 598,752,219 618,819,592 173,099,346(3)Listofdefinedcontributionplanspayable Unit:RMB Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance1.Basicpensions 192,780 51,126,025 51,239,954 78,8512.Unemploymentinsurance 12,740 2,020,258 2,024,874 8,124Total 205,520 53,146,283 53,264,828 86,975
Accordingtothedecisionofthefifthmeetingoftheseventhsessionoftheboardofdirectorsheldon31March2015,theBoard
approvedthatitwillappraisethemanagementteambasedonquarterlynetassetsincomerateandrewardthemanagementteamby
takingquarterlytotalnetprofitaftertaxasthebase.TheGroupwithheldmanagementperformanceawardofRMB
35,700,000
(Jan.-Jun.2016:
43,750,000).21.Taxpayable Unit:RMB Item Closingbalance OpeningbalanceValue-added-taxpayable 37,988,909 41,919,187Corporateincometaxpayable 31,122,623 46,726,185Individualincometaxpayable 3,956,884 3,755,374Urbanmaintenanceandconstructiontax 2,859,336 3,482,715Propertytaxpayable 4,223,103 10,998,756Educationsurchargepayable 2,334,721 3,351,165Others 5,475,695 5,359,234Total 87,961,271 115,592,61622.Interestpayable Unit:RMB Item Closingbalance OpeningbalanceInterestpayableforlong-termborrowings 716,363 4,800,133Interestforcorporatebonds 37,309,995 10,660,000Interestpayableforshort-termborrowings 2,897,716 2,289,987Interestforultra-short-termfinancing32,854,763
bonds
Interestpayableformedium-termnotes 57,260,622 27,621,021
Total 98,184,696 78,225,904
23.Dividendspayable
Unit:RMB
Item Closingbalance Openingbalance
Commonstockdividend 207,533,556
Total 207,533,556
24.Otheraccountpayable
(1)Listofotheraccountpayablebynature
Unit:RMB
Item Closingbalance Openingbalance
Interest-freeborrowings 626,342,837
Guaranteedepositsreceivedfrom
64,868,546 69,156,801
constructioncontractors
Accruedcostofsales 40,511,663 47,671,047
Temporarycollectionofpaymentforland
39,350,245 28,098,000
transfer
Industrialproductionschedulingfunds 31,000,000
Payableforcontractedlabourcosts 16,551,623 17,467,346
Temporaryreceipts 13,218,776 14,022,924
Depositfordisabled 4,036,351 3,509,947
Others 8,943,846 8,395,385
Total 844,823,887 188,321,450
24.Otheraccountpayable
(1)Listofotheraccountpayablebynature
Unit:RMB
Item Closingbalance Openingbalance
Guaranteedepositsreceivedfrom
64,868,546 69,156,801
constructioncontractors
Accruedcostofsales 40,511,663 47,671,047
Temporarycollectionofpaymentforland
39,350,245 28,098,000
transfer
Interest-freeborrowings 681,000,000
Payableforcontractedlabourcosts 16,551,623 17,467,346
Temporaryreceipts 13,218,776 14,022,924
Depositfordisabled 4,036,351 3,509,947
Others 8,943,846 8,395,385
Total 868,481,050 188,321,450
25.Non-currentliabilitiesduewithinoneyear
Unit:RMB
Item Closingbalance Openingbalance
Long-termborrowingduewithin1year 29,340,000
Bondspayableduewithin1year 1,000,000,000 1,000,000,000
Long-termaccountspayablewithinoneyear 101,203,702
Total 1,101,203,702 1,029,340,000
(i)AccordingtotheChinaSecuritiesRegulatoryCommissionlicense[2010]No.1369publishedbytheChinaSecuritiesRegulatory
Commission,theCompanyissuedthecorporatebondson20October2010,withaparvalueofRMB2billion.TheCorporateBonds
includeRMB1billionthatwillmaturein5years(“5yearBonds”)andanotherRMB1billionthatwillmaturein7years(“7year
Bonds”).The7yearBondsholdershaveaputoptionovertheCompanytorepurchaseattheendofthefifthyear.TheCorporate
Bondscarriesatfixedinterestrateof5.33%peryear,withinterestpaidannually.Thebondsarerecognisedattheactualamountof
discountbonds,withtheactualannualrateof5.59%.5-yearbondshavebeenrepaidon19October2015,no7-yearbondsshallbe
resoldbyinvestors,andarematuredon19October2017.
(ii)AsofJune30,2017,theCompanysignedasellandleasebackagreementwithathird-partyfinanceleasingcompany.Asaresult
oftheCompany'sfailuretotransferthefixedasset-relatedrisks,itconstitutedamortgageloan.Inwhich:theamountrequiredtobe
repaidwithinoneyearwasshownasnon-currentliabilitiesduewithinoneyear-longtermpayableduewithinoneyear".
26.Othercurrentliability
Unit:RMB
Items Closingbalance Openingbalance
Others 300,000 300,000
Total 300,000 300,000
27.Long-termborrowings
(1)Categoriesoflong-termborrowings
Unit:RMB
Items Closingbalance Openingbalance
Guaranteedloan 244,000,000 58,660,000
Unsecuredloan 180,000,000 180,000,000
Medium-termnotes 1,200,000,000 1,200,000,000
Total 1,624,000,000 1,438,660,000
ApprovedbyfileNo.[2015]
MTN225
ofInterBankMarketTradingAssociation,theCompanyisentitledtoissuemedium-termnotes
withthelimitofRMB1,200,000,000,whichexpireson28May2017.
TheCompanyissuedmedium-termnotesofRMB1,200,000,000on14July2015forthefirsttimein2015.Thenotesabovematured
on14July2020,withanannualinterestrateof4.94%.
Asat30June2017,theinterestoflongtermborrowingsvariedfrom4.51%to4.94%(31December2016:4.51%to4.94%).
28.Longtermpayables
(1)Long-termpayablesbynatureofpayment
Unit:RMB
Items Closingbalance Openingbalance
Interest-freeloan 649,823,518 0
Mortgageloan 189,048,152 0
Total 838,871,670 0
On22November2016,theCompanyreceivedaletterfromitsshareholder,Jushenghua,statingthattosupporttheGroup’ssteady
operationanddevelopment,Jushenghua,astheshareholderoftheCompany,wouldliketoofferinterest-freeborrowingswiththetotal
amountofRMB2,000,000,000totheCompanyorthroughrelatedpartiesdesignatedbyit.Asofthedateofthisreport,theshareholder
hasprovidedRMB700,000,000ofinterest-freeloans(amortizedcostofRMB650,000,000).
29.Deferredrevenue
Unit:RMB
Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance reason
Governmentgrants 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 --
Governmentgrantsareanalysedbelow:
Unit:RMB
Includedin
Increasein Relatedtoassets
Itemindebt Openingbalance non-business Otherchanges Closingbalance
currentperiod orincome
income
TianjinCSGGoldenSun
57,092,011 1,687,446 55,404,565Relatedtoassets
Project(i)
DongguanCSGGolden
46,079,250 1,375,500 44,703,750Relatedtoassets
SunProject(ii)
HebeiCSGGoldenSun
46,750,000 1,375,000 45,375,000Relatedtoassets
Project(iii)
XianningCSGGolden
51,013,417 1,515,250 49,498,167Relatedtoassets
SunProject(iv)
Infrastructure
compensation for 43,670,435 2,020,768 41,649,667Relatedtoassets
WujiangCSGGlass
Co.,Ltd(v)
QingyuanEnergy-saving
23,259,167 1,235,001 22,024,166Relatedtoassets
project(vi)
YichangSiliconproducts
24,609,375 1,406,250 23,203,125Relatedtoassets
project(vii)
Yichang CSG silicon
sliceauxiliaryproject 13,890,609 634,323 13,256,286Relatedtoassets
(viii)
Sichuan energy-saving
12,129,480 827,010 11,302,470Relatedtoassets
glassproject(ix)
Group coating film
experimental project 9,035,040 754,380 8,280,660Relatedtoassets
(x)
Yichang expertsilicon
3,906,547 132,876 3,773,671Relatedtoassets
project(xi)
Yichang semiconductor
3,666,667 133,334 3,533,333Relatedtoassets
siliconproject(xi)
ShenzhenCSGDisplay
53,371,082 1,267,239 52,103,843Relatedtoassets
project(xiii)
Xianningphotoelectric
infrastructure 7,800,000 7,800,000Relatedtoassets
constructionfund(xiv)
Relatedtoassets
Others 34,520,174 5,000,000 462,588 85,988 38,971,598
andincome
Total 422,993,254 12,800,000 14,826,965 85,988 420,880,301 --
(i)TheallowancewasgrantedbyTianjinMunicipalGovernment.TheallowancewasusedforestablishingPVpowerstationby
TianjinCSGArchitecturalGlassCo.,Ltd.ThefacilitiesbelongedtoTianjinCSGuponcompletion.Theallowancewillbecreditedto
incomestatementin20years,theusefullifeofthePVpowerstation.
(ii)TheallowancewasgrantedbyDongguanMunicipalGovernment.TheallowancewasusedforestablishingPVpowerstationby
DongguanCSGArchitecturalGlassCo.,Ltd.ThefacilitiesbelongedtoDongguanCSGuponcompletion.Theallowancewillbe
creditedtoincomestatementin20years,theusefullifeofthePVpowerstation.
(iii)TheallowancewasgrantedbyLangfangMunicipalGovernment.TheallowancewasusedforestablishingPVpowerstationby
HebeiCSGGlassCo.,Ltd.("HebeiCSG").Whenthefacilitiesweresetup,theybelongedtoHebeiCSG.Theallowancewillbe
creditedtoincomestatementin20years,theusefullifeofthePVpowerstation.
(iv)TheallowancewasgrantedbyXianningMunicipalGovernment.TheallowancewasusedforestablishingPVpowerstationby
XianningCSGGlassCoLtd.ThefacilitiesbelongedtoXianningCSGuponcompletion.Theallowancewillbecreditedtoincome
statementin20years,theusefullifeofthePVpowerstation.
(v)TheallowancewasinfrastructurecompensationgrantedbyWujiangmunicipalgovernment,andwillbecreditedtoincome
statementin15years,theshortestoperatingperiodascommittedbytheGroup.
(vi)Theallowancewasapilotprojectforstrategicemergingindustryclustersdevelopment,whichwasusedtoestablishhigh
performanceultra-thinelectronicglassproductionlinesbyQingyuanCSG.Theallowancewillbecreditedtoincomestatementin10
years,theusefullifeoftheproductionline.
(vii)ThebalancerepresentedamountsgrantedtoYiChangCSGSiliconMaterialsCo.,Ltd.byYichangCityDongshanDevelopment
CorporationundertheprovisionsoftheinvestmentcontractsignedbetweentheGroupandtheMunicipalGovernmentofYiChang.
Theproceedsweredesignedfortheconstructionofelectricitytransformerandthepipelines.YichangSiliconisentitledtothe
ownershipofthefacilities,whichwillbeamortisedby15yearsaccordingtotheusefullifeoftheconvertingstation.
(viii)ItrepresentedthegovernmentsupportingfundobtainedbyYichangSiliconfromtheacquiringoftheassetsandliabilitiesof
CrucibleprojectofYichangHejingPhotoelectricCeramicCo.,Ltd.Theproceedswouldbeamortisedandcreditedtoincome
statementby15yearsafterrelatedassetswereputintouse.
(ix)ItrepresentedthefundsgrantedbyChengdulocalgovernmentforenergyglassproject.Itwillbeamortisedandcreditedto
incomestatementin15years,inaccordancewiththeminimumoperatingperiodcommittedbytheGroup.
(x)TheallowancewasgrantedbyShenzhenCityDevelopmentandReformCommissionforthedevelopmentofGroupCoatingFilm
experimentalproject.Thegrantwillbeamortisedandcreditedtoincomestatementby20yearsintheestimatedusefullifeofthe
relevantfixedassets.
(xi)ItrepresentedthefundsgrantedbyHubeilocalgovernmentforinportdiscountcomplementandinternationalcorporationspecial
subsidy.Thegrantwillbeamortisedandcreditedtoincomestatementby12and14years
(xii)ItrepresentedthespecialsubsidyofYichangNationalRegionalStrategicEmergingIndustryDevelopmentPilotProjectII,
whichisusedtocomplementYichangCSGSilicon“Hubeisemiconductorsiliconpreparativetechniqueprojectlaboratory”.The
grantwillbeamortisedandcreditedtoincomestatementby15years
(xiii)Itrepresentedthebusinesscombinationsinvolvingenterprisesnotundercommoncontrolandtheincreaseindeferredincome
arisingfromincorporatingthedeferredincomeofShenzhenCSGDisplayintotheconsolidatedscope.
(xiv)ItrepresentedthefundsgrantedbyDepartmentofHubeiXianningHigh-techIndustrialParkAdministrativeCommitteefor
infrastructureconstructionwhichwillbeamortisedby10yearsaccordingtotheusefullifeoftheproductionline.
30.ShareCapital
Unit:RMB
Changedinthereportperiod(+,-)
Opening Closing
balance Issuingofnew Transferred balance
Bonusshares Others Sub-total
shares fromreserves
Totalofcapital 2,075,335,560 2,075,335,560
shares
TheparvalueoftheRMB-denominatedordinarysharesisRMB1,andthatofdomesticallylistedforeignsharesisHKD1.
31.Capitalsurplus
Unit:RMB
Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance
Capitalpremium 1,345,264,670 1,345,264,670
Othercapitalsurplus -84,562,473 89,251,780 4,689,307
Total 1,260,702,197 89,251,780 1,349,953,977
Othercapitalreserveincreasedwasmainlyattributabletotheinterest-freeloansprovidedbytheshareholder,ShenzhenJushenghua
Co.,Ltd.totheCompany.CapitalreserveincreasedofRMB89,141,412wheninterestoftheloanswascalculatedonequity
transactions.32.Othercomprehensiveincome Unit:RMB Occuringincurrentperiod Less:Amount transferredinto Amount profitandlossinthe Opening Less: After-tax After-tax Closing Item incurred currentperiodthat balance income attributeto attributeto balance before recognizedinto tax theparent minority income other expense company shareholder tax comprehensive incomeinpriorperiod
II.Othercomprehensiveincome
reclassifiedintoprofitandlossin 4,653,971-1,076,264 -1,076,264 3,577,707
future
Differencesontranslationofforeign
2,103,971-1,076,264 -1,076,264 1,027,707
currencyfinancialstatements
Financeincentivesforenergyand
2,550,000 2,550,000
technicaltransformation
Totalofothercomprehensiveincome 4,653,971-1,076,264 -1,076,264 3,577,707
33.Specialreserves
Unit:RMB
Items Openingbalance Increasedthisterm Decreasedthisterm Closingbalance
Safetyproductioncost 5,843,473 3,922,869 6,532,682 3,233,660
Total 5,843,473 3,922,869 6,532,682 3,233,660
34.Surplusreserves
Unit:RMB
Items Beginningofterm Increasedthisterm Decreasedthisterm Endofterm
Statutorysurplusreserve 760,997,662 760,997,662
Discretionarysurplusreserve 127,852,568 127,852,568
Total 888,850,230 888,850,230
35.Retainedearnings
Unit:RMB
Items Thecurrentperiod Thesameperiodoflastyear
Retainedearningsattheendoflastyearbefore
3,576,949,573 3,637,206,565
adjustment
Retainedearningsatthebeginningofthisyear
3,576,949,573 3,431,556,565
afteradjustment
Add:netprofitsbelongingtoequityholdersofthe
392,992,163 466,883,254
Company
Less:Dividendspayable 207,533,556 622,600,668
Retainedearningsintheend 3,762,408,180 3,275,839,151
36.Revenueandcost
Unit:RMB
Occurredincurrentterm Occurredinpreviousterm
Item Revenue Cost Revenue CostRevenuefrommainoperations 4,914,535,874 3,730,914,851 4,184,209,383 3,052,534,128Revenuefromotheroperations 29,801,987 6,599,611 43,956,259 24,284,375Total 4,944,337,861 3,737,514,462 4,228,165,642 3,076,818,50337.Taxandsurcharge Unit:RMB Item Occurredincurrentterm OccurredinprevioustermCitymaintenanceandconstructiontax 15,364,494 12,602,639Educationalsurcharge 11,927,211 10,367,308Housingpropertytax 14,797,102 5,421,344
Landuserights 11,043,223 3,273,686
Businesstax 2,411,686 1,073,483
Others 6,202,059 747,323
Total 61,745,775 33,485,783
38.SellingExpenses
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Freightexpenses 76,391,481 59,381,190
Employeebenefits 49,496,703 43,288,837
Entertainmentexpenses 5,674,868 5,179,120
Travellingexpenses 5,113,500 4,811,124
Vehicleusefee 3,531,901 3,414,236
Rentalexpenses 3,029,551 2,588,324
Generalofficeexpenses 1,536,282 2,001,995
Depreciationexpenses 482,108 506,576
Others 11,088,337 7,393,429
Total 156,344,731 128,564,831
39.AdministrativeExpenses
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Researchanddevelopmentexpenses 151,590,181 127,759,895
Employeebenefits 135,166,127 113,606,280
Depreciationexpenses 31,885,617 26,989,222
Amortisationofintangibleassets 19,756,528 16,315,423
Generalofficeexpenses 12,640,569 10,148,252
TaxationExpenses 17,604,458
Labouruniorfunds 7,083,212 4,948,671
Entertainmentexpenses 4,800,751 3,889,174
Travellingexpenses 4,486,643 4,446,174
Waterandelectricityexpense 4,529,626 5,086,006
Canteencosts 4,404,253 3,667,235
Vehicleusefee 2,966,987 2,527,549
Rentalexpenses 2,457,132 1,403,376
Others 20,786,714 10,444,680
Total 402,554,340 348,836,395
40.FinanceExpenses
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Loaninterest 157,228,769 134,008,214
Less:Capitalisedinterest 14,034,183 6,183,391
Interestexpenses 143,194,586 127,824,823
Less:Interestincome 4,186,712 3,301,921
Exchangelosses 2,109,890 4,217,530
Others 2,256,263 4,612,961
Total 143,374,027 133,353,393
41.Assetimpairmentloss
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
I.Provisionforbaddebts 1,108,695 -878,514
2.
Provisionfor
inventorydepreciation -46,858
Total 1,108,695 -925,372
42.Investmentincome
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Long-termequityinvestmentaccountedbyequitymethod -14,264,359
Total -14,264,359
43.Othergains
Unit:RMB
Sourceofothergains Occurredincurrentterm Occurredinpreviousterm
Industrysupportingfund 12,600,000.00 N/A
Governmentawardsfund 4,323,546.00 N/A
Subsidiesforresearchanddevelopment 6,479,492.00 N/A
Energysavingsubsidy 128,116.00 N/A
Others 143,080.00 N/A
Total 23,674,234.00 N/A
44.Non-operatingincome
Unit:RMB
Occurredincurrent Occurredinprevious Amountofnon-recurringgainandloss
Items term term includedinthereportperiodTotalofgainsfromdisposalof 57,734 248,642 57,734non-currentassetsIncl.：Gainondisposaloffixedassets 57,734 248,642 57,734Governmentgrants 14,826,965 47,606,029 14,826,965Compensationincome 146,436 462,552 146,436Fundsunpayable 520 171,592 520Others 997,941 1,549,549 997,941Total 16,029,596 50,038,364 16,029,59645.Non-operatingexpenses Unit:RMB Amountofnon-recurring Occurredinprevious Items Occurredincurrentterm gainandlossincludedinterm
thereportperiod
Totaloflossfromdisposalofnon-currentassets 129,490 19,984 129,490
Incl.Lossfromdisposaloffixedassets 129,490 19,984 129,490
Donation 199,999 40,000 199,999
Lossoncompensations 407,332
Others 403,103 194,312 403,103
Total 732,592 661,628 732,592
46.Incometaxexpenses
(1)Listofincometaxexpenses
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Currentincometax 74,283,293 57,280,962
Deferredincometax 6,169,728 20,562,202
Total 80,453,021 77,843,164
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
Items Occurredincurrentterm
Totalprofit 480,667,069
Currentincometaxexpenseaccountedbytaxandrelevantregulations 66,102,580
Costs,expensesandlossesnotdeductiblefortaxpurposes 723,999
Influenceofdeductibletemporarydifferenceordeductiblelossesof
17,012,930
unrecognizeddeferredincometaxassets
Finalsettlementofthepreviousyear'sincometaxadjustment -3,386,488
Incometaxexpenses 80,453,021
47.Othercomprehensiveincome
Thedetailscanbefoundinnotestothefinancialstatements.
48.Itemsofthecashflowstatement
(1)Cashreceivedrelatingtootheroperatingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Governmentgrant 23,674,234 22,515,577
Interestincome 4,186,712 3,301,921
Others 40,349,756 20,291,438
Total 68,210,702 46,108,936
(2)Cashpaidrelatingtootheroperatingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Transportationexpense 68,348,981 61,146,471
Canteencost 21,140,169 19,735,042
Officeexpenses 16,993,639 13,568,857
R&Dfees 26,795,302 19,470,201
Travellingexpenses 12,971,903 11,839,397
Entertainmentexpenses 11,650,156 10,603,096
Vehicleusefee 7,589,416 7,147,877
Repairingfees 9,445,635 6,426,568
Rentalexpenses 4,103,767 4,439,417
Insuranceexpenses 6,679,946 4,823,957
FinancingCommission 2,256,263 4,612,961
Others 63,287,032 59,101,076
Total 251,262,209 222,914,920
(3)Cashreceivedrelatingtootherinvestingoperatingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Governmentgrantsreceivedrelatingtoassets 12,800,000 3,600,000
Collectiontrusted 11,239,200 11,239,200
Receivedrepayment 14,860,684
Total 24,039,200 29,699,884
(4)Cashpaidrelatingtootherinvestingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Paymentforcollectiontrusted 15,300,000
Paymentfordepositandmargin 31,475,182 6,464,586
Total 31,475,182 21,764,586
(5)Cashreceivedrelatingtootherfinancingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Receivedinterestfreeloan 1,381,000,000
Receivedmortgageloan 278,400,000
Receivedreturnmoneyfromtheoriginal
88,567,811
affiliatedcompanyShenzhenCSGDisplay
Collectionofincometaxofdividendsof 7,289,494
A-share&B-share
Collection 2,490,239
Receiveddepositandmargin 4,701,291 4,868,673
Total 1,666,591,530 100,725,978
(6)Cashpaidrelatingtootherfinancingactivities
Unit:RMB
Items Occurredincurrentterm Occurredinpreviousterm
Cashpaidforfinancingleaseofthe
original affiliatedcompanyShenzhen 109,125,965
CSGDisplay
Paymentofincometaxofdividendsof
1,701,507
A-share&B-share
CashpaidforCommissionfee 1,750,000
Total 3,451,507 109,125,965
49.Supplementnotesofcashflowstatement
(1)Supplementnotesofcashflowstatement
Unit:RMB
SupplementaryInfo. Amountofthisterm Amountoflastterm
1.Netprofitadjustedtocashflowofbusinessoperation -- --
Netprofit 400,214,048 465,301,322
Add:Provisionsforassetsimpairment 1,108,695 -925,372
Depreciationoffixedassets,
480,563,388 413,138,016
gasandpetroldepreciationproductiongoodsdepreciation
Amortisationofintangibleassets 19,756,528 16,315,423
Lossesondisposaloffixedassets,intangibleassetsandother
long-termassets 71,756 -228,658
(“-“forgains)
Financeexpenses
(“-“forgains) 143,194,586 127,824,823
Investment
loss(“-“forgains) 14,264,359
Decreaseindeferredtaxassets
(“-“forincrease) 11,754,644 21,032,799
Increaseofdeferredincometaxliability(“-“fordecrease) -5,584,916 -470,597
Decreaseofinventory(“-“forincrease) -152,812,851 -9,920,347
Decreaseofoperationalreceivableitems(“-“forincrease) -132,167,898 -30,401,660
Increaseofoperationalpayableitems(“-“fordecrease) 253,791,474 30,790,241
Netcashflowgeneratedbybusinessoperation 1,019,889,454 1,046,720,349
2.Majorinvestmentandfinancingoperationnotinvolvingwith
-- --
cash
3.Netchangeofcashandcashequivalents -- --
Balanceofcashatperiodend 932,050,522 404,710,155
Less:Initialbalanceofcash 584,566,990 574,744,877
Netincreasingofcashandcashequivalents 347,483,532 -170,034,722
(2)Formationofcashandcashequivalents
Unit:RMB
Items Closingbalance Openingbalance
I.Cash 932,050,522 584,566,990
Incl:Cashonhand 27,530 17,239
Cashatbankwithoutrestriction 932,022,992 584,549,751
otherswithoutrestriction
III.Balanceofcashandcashequivalentsatthendoftheperiod 932,050,522 584,566,990
50.Assetsofownershiporuserightrestricted
Unit:RMB
Item Endingbookvalue Reasonforrestriction
It’stheCompany’sguaranteedepositfortheapplicationofopeningletterof
Monetaryfund 2,184,679
creditandloanfromthebank,whichwasrestrictedmonetaryfund.
Total 2,184,679 --
51.Foreigncurrencymonetaryitems
(1)Foreigncurrencymonetaryitems
Unit:RMB
Closingbalanceofforeign Closing
Item Exchangerate
currency balanceconverttoRMB
Cashatbankandonhand -- -- 40,648,532
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
Accountsreceivable -- -- 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-termborrowings 65,092,500
Incl: HKD 75,000,000 0.8679 65,092,500
Accountspayable 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.Changesinthescopeofconsolidation
1.ThenewsubsidiaryincludedintheconsolidationscopeintheperiodwasZhijiangCSGPVNewEnergyCo.,
Ltd.(hereinafterreferredtoas"ZhijiangPVCompany").
IX.Interestinotherentities
1.Interestinsubsidiary
(1)CompositionoftheGroup
Majorbusiness Shareholding(%) Wayof
Nameofsubsidiary Placeofregistration Scopeofbusiness
location Direct Indirect acquicition
Development,productionand
ChengduCSGGlassCo.,Ltd. Chengdu,thePRC Chengdu,thePRC 75% 25%Establishment
salesofspecializedglass
Development,productionand
SichuanCSG EnergyConservation Chengdu,thePRC Chengdu,thePRC salesofspecializedglassand 75% 25%Split-off
processedglass
Development,productionand
TianjinEnergyConservationGlassCo.Ltd Tianjin,thePRC Tianjin,thePRC sales of specialized 75% 25%Establishment
energy-efficientglass
DongguanCSGArchitecturalGlassCo.,Ltd. Dongguan,thePRC Dongguan,thePRC Glassdeepprocessing 75% 25%Establishment
Productionandsalesofsolar
DongguanCSGSolarGlassCo.,Ltd. Dongguan,thePRC Dongguan,thePRC 75% 25%Establishment
glass
Production and sales of
DongguanCSGPV-techCo.,Ltd. Dongguan,thePRC Dongguan,thePRC high-techgreencellproducts 100%Establishment
andmodules
ProductionandsalesofHigh
YichangCSGPolysiliconCo.,Ltd. Yichang,thePRC Yichang,thePRC 75% 25%Establishment
puritysiliconmaterials
WujiangCSGNorth-eastArchitecturalGlassCo.,Ltd. Wujiang,thePRC Wujiang,thePRC Glassdeepprocessing 75% 25%Establishment
Production and sales of
HebeiCSGGlassCo.,Ltd. Yongqing,thePRC Yongqing,thePRC 75% 25%Establishment
specializedglass
Production and sales of
WujiangCSGGlassCo.,Ltd. Wujiang,thePRC Wujiang,thePRC 100% Establishment
specializedglass
Trading and investment
ChinaSouthernGlass(HongKong)Limited HongKong HongKong 100% Establishment
holding
Production and sales of
HebeiPanelGlassCo.,Ltd. Yongqing,thePRC Yongqing,thePRC 100% Establishment
ultra-thinelectronicglass
Production and sales of
XianningCSGGlassCoLtd. Xianning,thePRC Xianning,thePRC 75% 25%Establishment
specializedglass
XianningCSGEnergyConservationGlassCoLtd. Xianning,thePRC Xianning,thePRC Glassdeepprocessing 75% 25%Split-off
Production and sales of
QingyuanCSGEnergySavingNewMaterialsCo.,Ltd Qingyuan,thePRC Qingyuan,thePRC 100% Establishment
ultra-thinelectronicglass
ShenzhenCSGDisplayTechnologyCo.,Ltd. Shenzhen,thePRC Shenzhen,thePRC Glassfordisplaydevice 60.80% Acquisition
Photoelectric glass and
XianningCSGPhotoelectricGlassCo.,Ltd. Xianning,thePRC Xianning,thePRC 37.50% 62.50%Acquisition
high-aluminaglass
(2)Thesignificantnon-fully-ownedsubsidiariesoftheGroup
Unit:RMB
Totalprofitorloss Dividendsdistributed
Shareholding Minorityinterest
attributabletominority tominorityinterests
Subsidiaries ofminority asat30June
shareholdersfortheyear fortheyearended30
shareholders 2017
ended30June2017 June2017
ShenzhenCSGDisplayTechnologyCo.,Ltd. 39.20% 5,787,351 311,685,657
(3)Themajorfinancialinformationofthesignificantnon-fully-ownedsubsidiariesoftheGroup
Unit:RMB
Closingbalance Openingbalance
Nameof
Subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Totalassets Totalassets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
ShenzhenCSGDisplay 262,179,100 1,347,074,249 1,609,253,349505,674,968314,316,352819,991,320211,285,2381,338,686,3411,549,971,579541,303,424233,139,941774,443,365TechnologyCo.,Ltd. Unit:RMB Occurredincurrentterm Occurredinpreviousterm Nameof Total Cashflowsfrom Subsidiary Totalcomprehensive Cashflowsfrom Revenue Netprofit Revenue Netprofit comprehensive operating income operatingactivities income activitiesShenzhenCSGDisplay 228,993,498 14,924,574 14,924,574 27,884,582 37,282,745 -4,023,839 -4,023,839 19,571,109TechnologyCo.,Ltd.X.Riskrelatedtofinancialinstrument
TheGroup'sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(primarilycurrencyriskandinterestraterisk),creditriskand
liquidityrisk.TheGroup'soverallriskmanagementprogrammefocusesontheunpredictabilityoffinancialmarketsandseeksto
minimisepotentialadverseeffectsontheGroup'sfinancialperformance.
(1) Marketrisk
(a) Foreignexchangerisk
TheGroup’smajoroperationalactivitiesarecarriedoutinMainlandChinaandamajorityofthetransactionsaredenominatedin
RMB.However,someoftheexportbusinessissettledinforeigncurrency. Besides,theGroupisexposedtoforeignexchangerisk
arisingfromtherecognisedassetsandliabilities,andfuturetransactionsdenominatedinforeigncurrencies,primarilywithrespectto
USdollarsandEuro.TheGroupmonitorsthescaleofforeigncurrencytransactions,foreigncurrencyassetsandliabilities,andadjust
settlementcurrencyofexportbusiness,tofurthestreducethecurrencyrisk.
Asat30June2017thecarryingamountsinRMBequivalentoftheGroup’sassetsandliabilitiesdenominatedinforeigncurrencies
aresummarizedbelow:
30June2017
USD HKD Others Total
Financialassetsdenominatedinforeigncurrency-
Cashatbankandonhand 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
Financialliabilitiesdenominatedinforeign
currency-
Short-termborrowings - 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
31December2016
USD HKD Others Total
Financialassetsdenominatedinforeigncurrency-
Cashatbankandonhand 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
Financialliabilitiesdenominatedinforeign
currency-
Short-termborrowings - 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
Asat30June2017,ifthecurrencyhadweakened/strengthenedby10%againsttheUSDwhileallothervariableshadbeenheld
constant,theGroup’snetprofitfortheyearwouldhavebeenapproximatelyRMB
5,662,818
(31December2016:approximately
RMB
4,756,788) lower/higherforvariousfinancialassetsandliabilitiesdenominatedinUSD.Asat30June2017,ifthecurrencyhadstrengthened/weakenedby10%againsttheHKDwhileallothervariableshadbeenheldconstant,theGroup’snetprofitfortheyearwouldhavebeenapproximatelyRMB4,721,682
(31December2016:approximately
RMB
5,230,592) higher/lowerforvariousfinancialassetsandliabilitiesdenominatedinHKD.OtherchangesinexchangeratehadnosignificantinfluenceontheGroup'soperatingactivities.(b) InterestrateriskTheGroup'sinterestrateriskarisesfromlong-terminterestbearingborrowingsincludinglong-termborrowingsandbondspayable.FinancialliabilitiesissuedatfloatingratesexposetheGrouptocashflowinterestraterisk.FinancialliabilitiesissuedatfixedratesexposetheGrouptofairvalueinterestraterisk.TheGroupdeterminestherelativeproportionsofitsfixedrateandfloatingratecontractsdependingontheprevailingmarketconditions.Asat30June2015,theGroup’slong-terminterest-bearingdebtatvariableratesandfixedratesasillustratedbelow: 30June2017 31December2016Debtatfixedrates 1,570,000,000 1,380,000,000Debtatvariablerates 54,000,000 58,660,000 1,624,000,000 1,438,660,000TheGroupcontinuouslymonitorstheinterestratepositionoftheGroup.IncreasesininterestrateswillincreasethecostofnewborrowingandtheinterestexpenseswithrespecttotheGroup’soutstandingfloatingrateborrowings,andthereforecouldhaveamaterialadverseeffectontheGroup’sfinancialposition.TheGroupmakesadjustmentstimelywithreferencetothelatestmarketconditions,whichincludesincreasing/decreasinglong-termfixedratedebtsattheanticipationofincreasing/decreasinginterestrate.(2) CreditriskCreditriskismanagedonthegroupingbasis.Creditriskmainlyarisesfromcashatbank,notesreceivable,accountsreceivableandotherreceivables,etc.TheGroupexpectsthatthereisnosignificantcreditriskassociatedwithcashatbanksincetheyaredepositedatstate-ownedbanksandothermedium orlargesizelistedbanks.Managementdoes notexpect thattherewillbeanysignificantlossesfromnon-performancebythesecounterparties.Furthermore,astheGroup’sbankacceptancenotesreceivablearegenerallyacceptedbythestate-ownedbanksandotherlargeandmediumlistedbanks,themanagementbelievesthecreditriskshouldbelimited.Inaddition,theGrouphaspoliciestolimitthecreditexposureonaccountsreceivable,otherreceivablesandtradeacceptancenotes
receivable.TheGroupassessesthecreditqualityofandsetscreditlimitsonitscustomersbytakingintoaccounttheirfinancial
position,theavailabilityofguaranteefromthirdparties,theircredithistoryandotherfactorssuchascurrentmarketconditions.The
credithistoryofthecustomersisregularlymonitoredbytheGroup.Inrespectofcustomerswithapoorcredithistory,theGroupwill
usewrittenpaymentreminders,orshortenorcancelcreditperiods,toensuretheoverallcreditriskoftheGroupislimitedtoa
controllableextent.
(3) Liquidityrisk
CashflowforecastingisperformedbyeachsubsidiaryoftheGroupandaggregatedbytheGroup’sfinancedepartmentinits
headquarters.TheGroup’sfinancedepartmentatitsheadquartersmonitorsrollingforecastsoftheGroup'sshort-termandlong-term
liquidityrequirementstoensureithassufficientcashreserve,whilemaintainingsufficientheadroomonitsundrawncommitted
borrowingfacilitiesfrommajorfinancialinstitutionssothattheGroupdoesnotbreachborrowinglimitsorcovenantsonanyofits
borrowingfacilitiestomeettheshort-termandlong-termliquidityrequirements.
Asat30June2017,theGrouphadnetcurrentliabilitiesofapproximatelyRMB
3.385
billionandcommittedcapitalexpendituresof
approximatelyRMB
390 million.Managementwillimplementthefollowingmeasurestoensuretheliquidationrisklimitedtoacontrollableextent:(a) TheGroupwillhavesteadycashinflowsfromoperatingactivities;(b) TheGroupwillpaythedebtsthatmatureandfinancetheconstructionprojectsthroughtheexistingbankfacilities;and(c) TheGroupwillcloselymonitoringthepaymentofconstructionexpenditureintermsofpaymenttimeandamount.ThefinancialliabilitiesoftheGroupatthebalancesheetdateareanalysedbytheirmaturitydatebelowattheirundiscountedcontractualcashasfollows: 30June2017 Within1year 1to2years 2to5years Over5years TotalShort-termborrowings 2,439,522,457 - - - 2,439,522,457Notespayable 114,500,000 - - - 114,500,000Accountspayable 1,382,500,478 - - - 1,382,500,478Interestpayable 98,184,696 - - - 98,184,696Dividendpayable 207,533,556 207,533,556Otherpayables 844,823,887 - - - 844,823,887Othercurrentliabilities 300,000 - - 300,000Non-currentliabilitiesdue 1,117,193,707 - - - 1,117,193,707withinoneyearLong-termborrowings 78,992,500 306,409,062 1,474,047,671 - 1,859,449,233Long-termpayables - 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 31December2016
Within1year 1to2years 2to5years Over5years Total
Short-termborrowings 4,043,966,809 - - - 4,043,966,809
Notespayable 20,000,000 - - - 20,000,000
Accountspayable 1,169,869,370 - - - 1,169,869,370
Interestpayable 78,225,904 - - - 78,225,904
Otherpayables 188,321,450 - - - 188,321,450
Othercurrentliabilities 300,000 - - 300,000
Non-currentliabilitiesdue 1,068,336,787 - - - 1,068,336,787
withinoneyear
Long-termborrowings 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.Disclosureoffairvalue
1.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
Thegroup’sfinancialassetsandfinancialliabilitiesmeasuredatamortizedcostmainlyinclude:accountsreceivable,short-term
borrowings,accountspayable,longtermborrowings,bondspayable,long-termpayables,ect.
Exceptforfinancialliabilitieslistedbelow,thecarryingamountoftheotherfinancialassetsandliabilitiesnotmeasuredatfairvalue
isareasonableapproximationoftheirfairvalue.
30June2017 31December2016
Carryingamount Fairvalue Carryingamount Fairvalue
Financialliabilities-
Corporatebondspayable 1,000,000,000 999,500,000 1,000,000,000 1,009,177,000
Mediumtermnotes 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
Thefairvaluesofpayablesandmedium-termnotesarethepresentvalueofthecontractuallydeterminedstreamoffuturecashflows
attherateofinterestappliedatthattimebythemarkettoinstrumentsofcomparablecreditstatusandprovidingsubstantiallythe
samecashflowsonthesameterms,thereintobondspayablebelongsto Level1andmediumtermnotesbelongtoLevel2.
XII.RelatedpartyandrelatedTransaction
1.ParentcompanyoftheCompany
TheCompanyhasnoparentcompany.
2.SubsidiariesoftheCompany
TheinformationofsubsidiariesoftheCompanycanbefoundinNotestothefinancialstatement.
3.JointventureoftheCompany
ShenzhenNanboDisplayTechnologyCo.,Ltd.wastransferredtothesubsidiaryoftheCompanyfromjointventureon3June,2016.
TheCompanyhasnojointventureon30June2017.
4.Otherrelatedparties
Nameofotherrelatedparties RelationsbetweenotherrelatedpartiesandtheCompany
ShenzhenJushenghuaCo.Ltd. ThepersonactinginconcertoftheCompany'slargestshareholder
5.Relatedtransaction
(1)Transactionofacquisitionofgoods,offeringandreceptionoflaborservice
Listofsellinggoods/offeringlaborservice
Unit:RMB
Relatedparty Contentsofrelatedtransaction Occurredinthisterm Occurredinpreviousterm
ShenzhenCSGDisplayTechnologyCo.,Ltd. salesofgoods 9,665,275
6.Others
Commitmentsinrelationtorelatedparties
Thecommitmentsinrelationtorelatedpartiescontractedforbutnotyetnecessarytoberecognisedonthebalancesheetbythe
Groupasatthebalancesheetdateareasfollows:
On22November2016,theCompanyreceivedaletterfromitsshareholder,Jushenghua,statingthattosupporttheGroup’ssteady
operationanddevelopment,Jushenghua,astheshareholderoftheCompany,wouldliketoofferinterest-freeborrowingswiththe
totalamountofRMB2,000,000,000totheCompanyorthroughrelatedpartiesdesignatedbyit.Foranyborrowingdrawn,its
repaymentdateisnegotiatedbytheCompanyandJushenghuauponwithdrawal.Whenaborrowingisdue,ifanextensionisneeded,
theCompanycanapplytotheactuallenderbasedontheCompany’soperation;wheretheactuallenderagreeswiththeextension
application,thetermoftheborrowingisextendedaccordingly.Asof30June2017,theshareholderhadprovidedRMB700,000,000
long-terminterest-freeloansandRMB650,000,000short-terminterest-freeloans.
XIII.Commitmentsandcontingency
Capitalexpenditurescommitments
CapitalexpenditurescontractedforbytheGroupatthebalancesheetdatebutarenotyetnecessarytoberecognisedonthebalance
sheetareasfollows:
31December
30June2017 2016
Buildings,machineryandequipment 386,575,774 280,938,401
XIV.Othersignificantevents
1.Segmentinformation
(1)Definitionfoundationandaccountingpolicyofsegment
Tomeetoperatingstrategiesandrequirementsofbusinessdevelopment,theGroupadjusteditsoperatingstructureintheperiod.The
Group’smanagementallocatedresources,evaluatedsegmentperformance,updatedreportingsegment,anddisclosedsegment
informationaccordingtorevisedoperatingsegments intheperiod.Segmentinformation ofprioryearhadbeenrestatedin
accordancewithupdatedreportingsegments.
-Glasssegment,beingengagedintheproductionandsalesofglassproductsandsilicasandrequiredfortheproductionofglass
-SolarEnergySegment,beingengagedintheproductionandsalesofpolysiliconandsolarmodules,aswellasconstructionand
operationofphotovoltaicpowerplants
-ElectronicglassanddisplaySegment,beingengagedintheproductionandsalesofultrathinelectronicglassanddisplay
productsThereportablesegmentsoftheGrouparethebusinessunitsthatprovidedifferentproductsorservice.Differentbusinessesrequiredifferenttechnologiesandmarketingstrategies.TheGroup,therefore,separatelymanagestheproductionandoperationofeachreportablesegmentandevaluatestheiroperatingresultsrespectively,inordertomakedecisionsaboutresourcestobeallocatedtothesesegmentsandtoassesstheirperformance.Inter-segmenttransferpricesaremeasuredbyreferencetosellingpricestothirdparties.Theassetsareallocatedbasedontheoperationsofthesegmentandthephysicallocationoftheasset.Theliabilitiesareallocatedbasedontheoperationsofthesegment.Expensesindirectlyattributabletoeachsegmentareallocatedtothesegmentsbasedontheproportionofeachsegment’srevenue.(2)Financialinformationofsegment Unit:RMBElectronic
Item Glass SolarEnergy glassand Others Unallocated Elimination Total
display
Revenuefromexternal
3,206,687,1591,369,755,550 367,265,891 629,261 4,944,337,861
customers
Inter-segmentrevenue 18,599,065 18,083,108 198,902 26,666,005 -63,547,080
Interestincome 491,062 2,397,326 56,932 3,528,724 -2,287,332 4,186,712
Interestexpenses 70,412,931 37,231,830 15,045,705 22,791,452 -2,287,332 143,194,586
Assetimpairmentreversal 946,289 -62,414 217,114 7,706 1,108,695
Depreciationand
299,606,450 134,711,851 62,922,138 3,079,477 500,319,916
amortizationexpenses
Totalprofit 392,627,615 118,589,867 37,245,148 -773 -64,588,492 -3,206,296 480,667,069
Incometaxexpenses 52,290,936 13,020,016 15,176,880 -34,811 80,453,021
Netprofit 340,336,679 105,569,851 22,068,268 -773 -64,553,681 -3,206,296 400,214,048
Totalassets 8,982,177,3894,952,619,5912,968,323,479 134,3881,027,026,766 17,930,281,613
Totalliabilities 2,162,476,308 793,195,356 695,646,857 2,502,8145,865,531,905 9,519,353,240
Additionsofnon-current
assetsotherthan
92,971,231 404,028,047 222,862,634 1,886,129 721,748,041
long-termequity
investments
(3)Otherstatement
TheGroup’srevenuefromexternalcustomersdomesticallyandinforeigncountriesorgeographicalareas,andthetotalnon-current
assetsotherthanfinancialassetsanddeferredtaxassetslocateddomesticallyandinforeigncountriesorgeographicalareasareas
follows:
Revenuefromexternalcustomers Jan.-Jun.2017 Jan.-Jun.2016
Mainland 4,453,794,331 3,742,134,566
HongKong 159,110,247 46,568,633
Europe 10,469,923 34,282,849
Asia(otherthanMainlandandHongKong) 284,803,871 316,839,177
Australia 23,668,506 19,557,991
North America 9,235,672 64,008,117
Otherregion 3,255,311 4,774,309
4,944,337,861 4,228,165,642
Totalnon-currentassets 30June2017 31December2016
Mainland 14,606,514,921 14,392,447,014
HongKong 12,563,601 12,551,254
14,619,078,522 14,404,998,268
TheGrouphasalargenumberofcustomers,butnorevenuefromasinglecustomerexceed10%ormoreoftheGroup’srevenue.
XV.NotestoFinancialStatementsoftheParentCompany
1.Otheraccountsreceivable
(1)Otheraccountsreceivabledisclosedbycategory:
Unit:RMB
Closingbalance Openningbalance
Baddebt Baddebt
Bookbalance Bookbalance
Categories provision provision
Bookvalue Bookvalue
ProporAmouPropor Propor Propor
Amount Amount Amount
tion% nt tion% tion% tion%
Otheraccounts
receivable
withdrawnbad
debtprovision 3,416,531,057 100%16,511 0%3,416,514,5463,863,129,835 100% 8,806 0%3,863,121,029
accordingtocredit
risks
characteristicsTotal 3,416,531,057 100%16,511 0%3,416,514,5463,863,129,835 100% 8,806 0%3,863,121,029Otheraccountsreceivablewithlargeamountandwereprovidedbaddebtprovisionsindividuallyatendofperiod.□Applicable√Non-applicableOtheraccountsreceivableintheportfolioonwhichbaddebtprovisionswereprovidedonaginganalysisbasis□Applicable√Non-applicableOtheraccountsreceivableintheportfolioonwhichbaddebtprovisionswereprovidedonpercentagebasis√Applicable□Non-applicable Unit:RMB Closingbalance Nameofportfolio Otherreceivableaccounts Baddebtprovision proportion%portfolio1 825,597 16,511 2%portfolio2 3,415,705,460Total 3,416,531,057 16,511 0%Explanationfordeterminingthebasisoftheportfolio:Otherreceivableaccountsintheportfolioonwhichbaddebtprovisionswereprovidedonotherbasis□Applicable√Non-applicable(2)Accountsreceivablewithdraw,reversedorcollectedduringthereportingperiodTheamountofprovisionforbaddebtsduringthereportperiodwasRMB7,705.TheamountofthereversedorcollectedpartduringthereportperiodwasRMB0.(3)Otheraccountsreceivableclassifiedbythenatureofaccounts Unit:RMB Natureofaccounts Endingbookbalance BeginningbookbalanceOthers 825,597 423,416Accountsreceivableofrelatedparty 3,415,705,460 3,862,706,419Total 3,416,531,057 3,863,129,835
(4)Top5oftheclosingbalanceoftheotheraccountsreceivablecollatedaccordingtothearrearsparty
Unit:RMB
Proportionofthetotal Closing
Natureof
Nameofthecompany Closingbalance Ages yearendbalanceofthe balanceofbad
accounts
accountsreceivable(%) debtprovision
YichangCSGPolysiliconCo.,Ltd. Subsidiary 1,304,538,480Within1year 38% 0
HebeiCSGGlassCo.,Ltd. Subsidiary 333,719,030Within1year 10% 0
QingyuanCSGEnergyConservationSubsidiary
298,547,212 9% 0
NewMeterialsCo.,Ltd. Within1year
DongguanCSGPV-techCo.,Ltd. Subsidiary 226,825,146Within1year 7% 0
YichangCSGDisplayCo.,Ltd. Subsidiary 195,317,564Within1year 6% 0
Total -- 2,358,947,432 -- 70%
2.Long-termequityinvestment
Unit:RMB
Closingbalance Openingbalance
Item Impairment Impairment
Bookbalance Bookvalue Bookbalance Bookvalue
provision provision
Investmentin
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)Inventmentinsubsidiaries
Unit:RMB
Provisionfor Closingbalance
Opening Increasein Decreasein
Investedcompany Closingbalanceimpairmentofthe ofimpairment
balance theterm theterm
currentperiod provision
ChengduCSGGlassCo.,Ltd. 146,679,073 146,679,073
SichuanCSG EnergyConservation 115,290,583 115,290,583
TianjinEnergyConservationGlassCo.Ltd 242,902,974 242,902,974
DongguanCSGArchitecturalGlassCo.,Ltd. 193,618,971 193,618,971
DongguanCSGSolarGlassCo.,Ltd. 349,446,826 349,446,826
YichangCSGPolysiliconCo.,Ltd. 632,958,044 632,958,044
WujiangCSGNorth-eastArchitecturalGlass
251,313,658 251,313,658
Co.,Ltd.
HebeiCSGGlassCo.,Ltd. 261,998,368 261,998,368
ChinaSouthernGlass(HongKong)Limited 85,742,211 85,742,211
WujiangCSGGlassCo.,Ltd. 562,179,564 562,179,564
HebeiPanelGlassCo.,Ltd. 243,062,801 243,062,801
JiangyouCSGMiningDevelopmentCo.
100,725,041 100,725,041
Ltd.
XianningCSGGlassCoLtd. 177,041,818 177,041,818
XianningCSGEnergyConservationGlassCo
161,281,576 161,281,576
Ltd.
QingyuanCSGEnergySavingNewMaterials
300,185,609 300,185,609
Co.,Ltd
ShenzhenCSGFinancialLeasingCo.,
133,500,000 133,500,000
Ltd.
ShenzhenCSGPVEnergyCo.,Ltd. 100,000,000 100,000,000
ShenzhenCSGDisplayTechnologyCo.,Ltd. 542,027,830 542,027,830
XianningCSGPhotoelectricGlassCo.,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)Othernotes
AsatJune30,2017,
long-termequityinvestmentinsubsidiariescontainedtherestrictedstocksgrantedbytheCompanytothe
Employeesofsubsidiariesofthecompany,andtheCompanydidnotchargeanyfeesfortherestrictedstockswhichwasdeemedas
an increase of costs of Long-term equity investment for subsidiaries by RMB 109,035,321 (31 December 2016:
RMB109,035,321).Thesubsidiarieswhichhavemadeprovisionforimpairmentwerebasicallycloseddowninthepreviousyear,andtheprovisionforimpairmentforthelong-termequityinvestmentofthemhadbeenmadebytheCompanyaccordingtotherecoverableamount.3.Operatingincomeandoperatingcosts Unit:RMB Occurredinthisterm OccurredinprevioustermItem Income Costs Income CostsMainbusiness 0 0 0 0Otherbusiness 27,295,266 0 1,077,394 60,334Total 27,295,266 0 1,077,394 60,334
4.Investmentincome
Unit:RMB
Item Occurredinthisterm Occurredinpreviousterm
Long-termequityinvestmentaccountedbycostmethod 389,430,562
Long-termequityinvestmentaccountedbyequitymethod 9,850,045
Total 399,280,607
XVI.SupplementaryInformation
1.Itemsandamountsofextraordinaryprofit(gains)/loss
□√Applicable Notapplicable Unit:RMB Item Amount NoteGains/lossesfromthedisposalofnon-currentasset(includingthewrite-offthataccruedforimpairment-71,756
ofassets)
Governmentalsubsidyreckonedintocurrentgains/losses(notincludingthesubsidyenjoyedinquota
orrationaccordingtonationalstandards,whicharecloselyrelevanttoenterprise’sbusiness) 38,501,199
Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems 541,795
Less:Impactonincometax 5,814,362
Impactonminorityshareholders’equity(post-tax) 1,109,957
Total 32,046,919 --
Explainreasonsfor theextraordinaryprofit(gain)/lossdefinedbyQ&AAnnouncementNo.1onInformationDisclosurefor
CompaniesOfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss,andtheitemsdefinedasrecurringprofit(gain)/loss
accordingtothelistsofextraordinaryprofit(gain)/lossinQ&AAnnouncementNo.1onInformationDisclosureforCompanies
OfferingTheirSecuritiestothePublic---ExtraordinaryProfit/loss.
□Applicable√Notapplicable
2.Returnonequityandearningspershare
Theweighted Earningspershare
Profitinthereportperiod averagenet basicearningsper dilutedearningsper
assetsratio share(RMB/share) share(RMB/share)
Netprofitattributabletoshareholdersofthelistedcompany(RMB) 4.94% 0.19 0.19
Netprofitattributabletoshareholdersofthelistedcompanyafter
4.54% 0.17 0.17
deductingnon-recurringgainsandlosses(RMB)
3.Differenceofaccountingdataunderdomesticandoverseasaccountingstandards
(1)Differencesofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderinternational
andChineseaccountingstandards
□Applicable√Notapplicable
(2)Differenceofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderoverseasand
Chineseaccountingstandards
□Applicable√Notapplicable
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