南 玻B:2019年年度报告(英文版)

时间:2020-04-30 00:00:00

CSG HOLDING CO., LTD.

ANNUAL REPORT 2019

Chairman of the Board:

CHEN LIN

April 2020

CSG Annual Report 2019

Section I Important Notice, Content and Paraphrase

Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and completeness of the whole contents.

Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accounting and Ms.Wang Wenxin, principal of the financial department (accounting officer) confirm that the Financial Report enclosed in this Annual Report 2019 is true, accurate and complete.

All directors were present at the meeting of the Board for deliberating the annual report of the Company in person.

The future plans, development strategies and other forward-looking statements mentioned in this report do not constitute a material commitment of the company to investors. Investors and relevant parties should pay attention to investment risks, and understand the differences between plans, forecasts and commitments.

The company has described the risk factors and countermeasures of the company's future development in detail in this report. Please refer to Section IV. Business Discussion and Analysis.

The company shall comply with the disclosure requirements of "Shenzhen Stock Exchange Industry Information Disclosure Guidelines No. 13 - Listed Companies Engaged in Non-Metal Building Materials Related Business".

The deliberated and approved plan of profit distribution in the Board Meeting is distributing cash dividend of RMB 0.7 yuan (tax included) for every 10 shares to all shareholders based on 3,106,915,005 shares of the total current share capital. The actual amount of the cash dividend distributed will be determined according to the total share capital on the registration date of the company's implementation of the profit distribution plan.

This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail.CSG Annual Report 2019

Content

Section I. Important Notice, Content and Paraphrase ......................................................................................

1

Section II. Company Profile & Financial Highlights............................................................................................

4

Section III. Overview of the Company’s Business.............................................................................................

8

Section IV. Business Discussion and Analysis ..................................................................................................

12

Section V. Important Events............................................................................................................................

34

Section VI. Changes in Shares and Particulars about Shareholders ................................................................

59

Section VII. Particulars about Directors, Supervisors, Senior Executives and Employees ..............................

68

Section VIII. Corporate Governance ................................................................................................................

79

Section IX. Corporate Bonds…………………………………………………………………………………………………….……………......87

Section X. Financial Report .............................................................................................................................

91

Section XI. Documents Available for Reference ...........................................................................................

180

CSG Annual Report 2019

Paraphrase

Items

Refers to

Contents

Company, the Company, CSG or the

Refers to

CSG Holding Co., Ltd.

Group

 

 

Foresea Life

Refers to

Foresea Life Insurance Co., Ltd.

Ultra-thin electronic glass

Refers to

The electronic glass with thickness between 0.1~1.1mm

Second-generation energy-saving glass

Refers to

Double silver coated glass

Third-generation energy-saving glass

Refers to

Triple silver coated glass

AG glass

Refers to

Anti-glare glass

AF glass

Refers to

Anti-fingerprint glass

CSG Annual Report 2019

Section II Company Profile & Financial Highlights

I. Company information

Code for A-share

000012

Code for B-share

200012

Short form for A-share

Southern Glass A

Short form for B-

Southern Glass B

share

 

 

 

 

 

 

Listing stock exchange

Shenzhen Stock Exchange

 

 

Legal Chinese name of the Company

中国南玻集团股份有限公司

 

 

Abbr. of legal Chinese name of the

南玻集团

 

 

Company

 

 

 

 

 

Legal English name of the Company

CSG Holding Co., Ltd.

 

 

Abbr. of legal English name of the

CSG

 

 

Company

 

 

 

 

 

Legal Representative

Chen Lin

 

 

Registered Add.

CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.

Post Code

518067

 

 

Office Add.

CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C.

Post Code

518067

 

 

Internet website

www.csgholding.com

 

 

E-mail

securities@csgholding.com

 

 

 

 

 

 

II. Person/Way to contact

 

Secretary of the Board

Representative of security affairs

Name

Yang Xinyu

Chen Chunyan

 

CSG Building, No.1 of the 6th

CSG Building, No.1 of the 6th

Contacts add.

Industrial Road, Shekou, Shenzhen, P.

Industrial Road, Shekou, Shenzhen,

 

R.C.

P. R.C.

 

Tel.

(86)755-26860666

(86)755-26860666

Fax.

(86)755-26860685

(86)755-26860685

E-mail

securities@csgholding.com

securities@csgholding.com

 

 

 

III. Information disclosure and preparation place

Newspapers for information disclosure

Securities Times, China Securities Journal, Shanghai Securities News,

 

Securities Daily and Hong Kong Commercial Daily

 

Website assigned by CSRC to release

www.cninfo.com.cn

the annual report

 

The place for preparation of the annual

Office of the Board of Directors

report

 

 

 

IV. Registration changes of the Company

CSG Annual Report 2019

Changes of main business since listing

No changes

(if applicable)

 

Previous changes for controlling

No changes

shareholders (if applicable)

 

V. Other relevant information

 

CPA firm engaged by the Company

 

 

 

Name of CPA firm

Asia Pacific (Group) CPAs (special general partnership)

 

 

 

Offices add. for CPA firm

Room 301, building 1, No. 9, Che Gong Zhuang Street, Xicheng District,

Beijing, China

 

Signing Accountants

Zhao Qingjun, Zhou Xianhong

Sponsor institute engaged by the Company for performing continuous supervision duties in the report period

□ Applicable √ Not applicable

Financial consultant engaged by the Company for performing continuous supervision duties in the report period

□ Applicable √ Not applicable

VI. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not

□Yes √No

 

2019

2018

Changes over last

2017

 

 

 

year

 

 

 

 

Operating income (RMB)

10,472,028,099

10,609,963,011

-1.30%

10,879,400,746

Net profit attributable to shareholders

536,430,818

452,965,935

18.43%

825,388,312

of the listed company (RMB)

 

 

 

 

Net profit attributable to shareholders

 

 

 

 

of the listed company after deducting

374,386,216

367,579,835

1.85%

745,373,108

non-recurring gains and losses

 

 

 

 

(RMB)

 

 

 

 

Net cash flow arising from operating

2,379,036,320

2,130,378,100

11.67%

2,463,446,156

activities (RMB)

 

 

 

 

Basic earnings per share

0.17

0.15

13.33%

0.30

(RMB/Share)

 

 

 

 

Diluted earnings per share

0.17

0.14

21.43%

0.29

(RMB/Share)

 

 

 

 

Weighted average ROE (%)

5.77%

5.16%

0.61%

10.15%

 

 

 

 

 

 

As at 31 Dec.

As at 31 Dec. 2018

Changes over the

As at 31 Dec.

 

2019

end of last year

2017

 

 

 

 

 

 

 

Total assets (RMB)

18,201,235,959

19,114,234,184

-4.78%

19,535,002,368

Net assets attributable to shareholders

9,495,588,878

9,103,154,571

4.31%

8,458,587,873

of the listed company (RMB)

 

 

 

 

 

 

 

The total share capital of the company as of the previous trading day of

 

3,106,915,005

disclosure (share)

 

 

 

 

 

 

 

Fully diluted earnings per share calculated with latest share equity (RMB/share)

 

0.17

Note: The total amount of 1,281,158 shares of restricted stocks held by 18 unqualified original incentives, which had been repurchased but not yet cancelled, were deducted from the total share capital.CSG Annual Report 2019

VII. Accounting Data Differences under Chinese Accounting Standards (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards

1. Net Income and Equity Differences under CAS and IFRS

□ Applicable √ Not applicable

No such differences for the Report Period.

2. Net Income and Equity Differences under CAS and Foreign Accounting Standards

□ Applicable √ Not applicable

No such differences for the Report Period.

3. Reason of the difference between domestic and foreign accounting data

□ Applicable √ Not applicable

VIII. Main financial indexes by quarter

 

 

 

 

Unit: RMB

 

 

 

 

 

 

Q1

Q2

Q3

Q4

Operating income

2,222,721,514

2,665,516,064

2,773,417,909

2,810,372,612

Net profit attributable to shareholders of the listed

132,188,324

245,154,077

166,970,717

-7,882,300

company

 

 

 

 

Net profit attributable to shareholders of the listed

 

 

 

 

company after deducting non-recurring gains and

82,573,767

201,365,677

135,913,151

-45,466,379

losses

 

 

 

 

Net cash flow arising from operating activities

136,317,362

631,665,103

740,407,335

870,646,520

Whether there are significant differences between the above-mentioned financial index or its total number and the relevant financial index disclosed in the Company’s quarterly report and semi-annual report or not

□Yes √ NoCSG Annual Report 2019

IX. Items and amounts of extraordinary gains/losses

√Applicable □ Not applicable

 

 

 

 

Unit: RMB

 

 

 

 

 

Item

2019

2018

2017

Note

Gains/losses from the disposal of non-current asset

 

 

 

 

(including the write-off that accrued for impairment of

-909,968

-454,368

-1,768,993

 

assets)

 

 

 

 

Governmental subsidy reckoned into current

 

 

 

 

gains/losses (not including the subsidy enjoyed in quota

184,131,420

94,835,539

87,875,417

 

or ration according to national standards, which are

 

 

 

 

 

closely relevant to enterprise’s business)

 

 

 

 

In addition to the normal business of the company

 

 

 

 

effective hedging related business, tradable financial

 

 

 

 

assets, derivative financial assets, tradable financial

 

 

 

 

liabilities, changes in the fair value of the derivative

 

 

 

 

financial liabilities to generate profits and losses, as

 

 

427,636

 

well as the disposal of tradable financial assets,

 

 

 

 

derivative financial assets, tradable financial liabilities,

 

 

 

 

derivative financial liabilities and other creditor's rights

 

 

 

 

investment returns.

 

 

 

 

Loss and profit from external entrusted loan

11,894,654

534,591

 

 

Other non-operating income and expenditure except for

-1,612,253

12,099,680

12,076,848

 

the aforementioned items

 

 

 

 

 

Less: Impact on income tax

25,951,263

16,483,870

16,209,135

 

Impact on minority shareholders’ equity (post-

5,507,988

5,145,472

2,386,569

 

tax)

 

 

 

 

 

Total

162,044,602

85,386,100

80,015,204

--

Reason shall be provided for the non-recurring profit and loss items defined by the company according to the definition in the No. 1 of Explanatory Announcement on Information Disclosure for Companies Offering their Securities to the Public: Non-recurring Profit and Loss and the listed non-recurring profit and loss items defined into recurring profit and loss items.

□ Applicable √ Not applicable

CSG Annual Report 2019

Section III Overview of the Company’s BusinessI. Main business of the Company in the report period

CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its products and technologies are very popular at home and abroad. Its main business covers R&D, manufacturing and sales of high quality float glass and architectural glass, solar glass, silicon material, renewable energy products such as PV battery and modules, and new materials and information display products such as ultra-thin electronic glass and display devices. It also provides one-stop services such as project development, construction, operation and maintenance of solar photovoltaic power plants.

Flat glass industry

CSG now has 10 float glass production lines representing the most advanced technology, 2 solar glass production lines and 12 solar glass deep processing production lines in Dongguan, Chengdu, Langfang, Wujiang, Xianning, and also has quartz sand raw material processing and production bases in Sichuan Jiangyou and Guangdong Qingyuan. The annual capacity of various high-grade float glass has reached more than 2.47 million tons and the annual capacity of solar glass has reached over 0.43 million tons. The float glass products cover high-grade float glass and ultra-clear float glass with various thicknesses from 1.3mm to 25mm, and the performance of the products all reach the leading level in China. Solar glass has a capacity of 60 million square per year of deep processing, the products of which cover a variety of thickness of 2-4mm deep processing products.The glass of CSG are widely used in in high-end architectural curtain walls, decoration and furniture, reflective mirror, automotive windshield, scanner and photocopier transparent panel, home appliance panel, display devices protection and solar energy field.The Company’s Products are sold all over the world, and it has established long-term, stable business cooperation with many well-known processing enterprises.The Company always adheres to innovation, transformation and upgrading, and further enhances the profitability of flat glass industry by the implementation of differentiated competitive strategy. In 2019, the subsidiary Chengdu CSG Co.,Ltd. switched to the production of ultra-white float glass in the second line, further increasing the proportion of CSG glass in the ultra-white float glass market.Through speeding up technology upgrade and reform for solar glass,the productivity of 1.6-2.5mm ultra-thin solar glass for double-glass PV module was further improved. By focusing on developing overseas market,the proportion of overseas revenue continuely increased.The exploration of high value- added markets such as ultra-clear glass as well as the expansion of overseas market which further enhanced the market competitiveness of CSG's flat glass.

Architectural glass industry

CSG Group is one of the largest suppliers of high-grade engineering and architectural glass in China.. It has built five energy-saving glass processing bases in Tianjin, Dongguan, Xianning, Wujiang and Chengdu. Now it is preparing to build Zhaoqing energy-saving glass processing base to meet the growing demand of high-grade energy-saving glass. The Company has the world's leading glass deep processing equipment and testing equipment, and its products cover all kinds of engineering and construction glass. The Company's R&D and application of glass coating technology keep space with the world and its technology of high-end product even leads the world. Following the second generation of energy-saving glass products, the Company has successively developed the third generation and multi-function energy- saving glass products with continuous improving energy-saving and heat-preservation effect. The domestic high-end market share of high-quality energy-saving and environment-friendly LOW-E insulating glass far exceeds that ofCSG Annual Report 2019

competitors. At present, the Company’s coated insulating glass and coated glass have reached annual capacity of more than16.00 million square meters and 36.00 million square meters respectively.

The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988, CSG's engineers and technicians have been continuously participating in the formulation and compilation of various national standards and industry standards. Various high-quality architectural glass of the Company has been used in many landmark buildings at home and abroad, such as Beijing Capital International Airport, CCTV, Shanghai Oriental Fisherman’s Wharf, China Resources Headquarters Building, Shenzhen KingKey100 Building, Shenzhen Upperhills, Shenzhen ShenNine Pioneer Park, Shenzhen Bay Science and Technology Ecological zone, Shenzhen Trade Qianhai Center, Hong Kong-Zhuhai- Macao Bridge Zhuhai port, Donggua International Trade Center, Ping An International Finance Centre, Xiamen Yinglan International Financial Center, Xujiahui Center Hongqiao Road plot T1 office building, Poly Yuzhu Port, Chengdu Tianfu International Airport, Beijing Tongzhou Ocean Center, Huahao center tower project, Yangzhou jin 'ao center, Fosun south headquarters building, Anhui radio and television station new center, Hangzhou International Airport, Hangzhou Europe finance City, Shanghai Qiantan Iron Lion Gate Center, Hangzhou Pinggao Entrepreneurship City, Kunming Henglong Square, Chengdu Zhongjiao International Center, Changsha World Trade Center, Hefei Evergrande Center, Valley of light star block G, Beijing Subsidiary administrative Center, Beijing Daxing International Airport, Qingdao Jiaodong International Airport, Shanxi China Resources Center, Yasha Headquarters Building, Chengdu International Finance Center, Hangzhou Hampton and other more than ten Hilton Hotels, Hong Kong Four Seasons Hotel, Melbourne Airport, Midtown, International Centre of Abu Dhabi, Korea LCT and Metropolis Phase 2B.

Furthermore, the jade glass project has been formally put into production. This project will open up the market of high- end decoration projects for CSG in the future and further strengthen the competitive advantage of CSG in the field of construction engineering.

Solar Energy industry

CSG has entered solar photovoltaic industry since 2005 and is one of enterprises which firstly enter the field in China. After more than ten years of construction, operation and technological upgrading, CSG has built an industry chain in the field, covering high- purity polycrystalline silicon materials, high-efficiency silicon wafer, silicon solar cell and modules, and the design and construction of solar photovoltaic power plants, by which the Company ensures the stable quality and best cost-efficiency of its PV products to customers.

The Company now produces 9,000 ton/year of high purity polycrystalline silicon, 2.2 GW/year of silicon wafer, 1GW/year of solar cell, and 0.4GW/year of modules. The quality and performance indicators of the Company's polysilicon have reached the advanced level in the industry and it has reserved electronic-grade polysilicon production technology. In order to actively respond to the changes in the industry with the continuous introduction of new technologies, the company took the initiative to upgrade the parking technology of polysilicon, and sought to move to the regions with low electricity prices. Meanwhile, in order to improve the ability to resist risk of the photovoltaic industry chain, promoting steady balanced development of pv industry chain, the company also completed the wafer and the PERC battery module technical innovation .

To build the whole solar industry chain, the Company established Shenzhen CSG PV Energy Co., Ltd., a wholly-owned subsidiary, in 2015, of which the mainline business is to invest and develop solar power plants and extend CSG's solar energy industry to cover highly value-added terminal applications. The Company strengthened the investment, operation and maintenance of the Company's PV power plants and effectively integrated internal assets, so as to improve its solar energy business competitivity.

CSG Annual Report 2019

Electronic glass and display industry

In 2019, the Company continued to develop electronic glass business. Four subsidiaries including Hebei Panel, Yichang Photoelectric, Qingyuan New Energy-Saving Materials, Xianning Photoelectric continued to actively upgrade products and market in smart electronic terminals, touch control components, automotive displays, industrial automation control commercial displays, military security, smart home application, and the market share and brand effect of medium, high aluminum electronic glass products of the Company were greatly increased. The three characteristics of abundant product structure, reliable delivery guarantee and strong technical innovation helped the electronic glass business of the Company maintain the dominant position in the fierce market competition.In the fourth quarter of 2019, the subsidiary Xianning Opto-electronics Co., LTD. 's new generation of high-alumina electronic glass products officially met the requirements for batch delivery. The excellent performance of the new generation of high-alumina electronic glass of CSG can meet the downstream end customers' higher standard requirements for basic materials in the fields of 3D curved surface technology and 5G communication solutions.The successful development of this product marks the further enhancement of the competitiveness of CSG in the high-end application market.CSG has long been committed to becoming the industry's leading electronic glass material solutions provider. We will continue to develop stronger and more competitive glass protective materials in the field of touch display, develop human-machine interaction interface materials in the fields of smart home, vehicle-mounted display and advanced medical treatment, and develop revolutionary alternative materials in the field of transportation and security.CSG has been engaged in the field of touch display since 2000. After 20 years of development, its main products and core technologies have covered three businesses including vacuum magnetron sputtering coating, yellow light pattern forming and TP module processing.The Company aims to domestic and foreign high-end customers, and has formed two complete touch industrial chains. The industrial chain of "glass coating → glass yellow light pattern forming → glass touch module processing" is based on electronic glass. The main products include: high and mid-grade ITO conductive glass, glass Sensor/ G-TP module, anti-reflection (AR), anti-fingerprint (AF), semi-anti-reflection and semi-permeable (RT) composite coating products. Another industrial chain of “substrate coating → flexible yellow light pattern processing → flexible touch module processing" is based on flexible optical film. The main products include: high and mid-grade ITO conductive film, ITO copper film, film Sensor/ F-TP module.In recent years, the Company has successfully realized the business transformation to the field of on-board touch control, established the TAIF16949 quality management system supporting the automobile industry, and continuously increased the investment layout in the on-board segment. The products target at on-board front load market, aiming at high-end brand customers. At present, the products in the on-board field including on-board glass Sensor, on-board multi-functional 3A cover plate, on-board touch module, etc. In 2019, mass production and sales of high-end 3A glass cover plate for on-board center control screen market was realized, and the output and sales of on-board glass Sensor steadily increased, which became a new profit growth point of CSG Display Device. After years of development, CSG Display Device has become a high-quality supplier of electronic application materials, touch control Sensor and TP module in the display touch industry, which can provide customers with a comprehensive one-stop solution of touch screen materials.

II. Major changes in main assets1. Details of major changes in main assets

Main assets

Note of major changes

 

 

Equity assets

There was no significant change in equity assets in the report period.

Fixed assets

There was no significant change in fixed assets in the report period.

 

 

CSG Annual Report 2019

 

 

 

 

 

Intangible assets

There was no significant change in intangible assets in the report period.

 

 

Construction in progress

Some of subsidiary companies transferred their projects under construction into fixed assets

 

 

in the report period.

 

 

 

 

 

Short term Loans

The company has repaid part of the loan in the report period.

 

 

Long term Loans

Mainly due to some of the medium-term notes reclassification to the one-year maturity of

 

 

non-current liabilities.

 

 

 

 

2. Main overseas assets

□ Applicable √ Not applicable

III. Core Competitiveness Analysis

1.The Company currently has built complete industrial chains in the involved industries, which has complementary advantage. For example in glass industry, the Company has set up the industry chain as quartz sand → high quality float glass → architectural energy-saving glass. With continuous the improvement of technology in the chains, the industrial advantages emerged.2.The Company possesses a complete industry layout. At present, the Company has established large production bases in East China, West China, South China, North China and Central China, which enables the Company to be closer to the market and serve the market better.3.The Company has capability of technology innovation and product innovation. It owns independent intellectual property rights of high-end float glass production process. The technology level of ultra-thin electronic glass is in the leading position in China. The Company also keeps its R&D and production of energy-saving glass in line with the world’s advanced level.

4.The Company possesses high anti-risk capability. It has established an effective internal control system. Meanwhile, the management and control ability of account receivable and inventory stand in a high level within the industry. CSG’s new management team has an international perspective and a more open management philosophy. It aims to achieve the transfer of capacity and continues to expand new business fields along with the national policies of the Belt and Road based on the intensive development of CSG's main business, making the Company be bigger and stronger, so as to be a comprehensive industrial group.

CSG Annual Report 2019

Section IV. Business Discussion and Analysis

I. IntroductionSince 2019, the downward pressure on the global macroeconomy has been increasing. Under the fierce international competition, manufacturing enterprises are facing both severe challenges and great opportunities. China is in the crucial period of transforming the development mode and optimizing the economic structure. With the deepening of the supply- side structural reform, the industrial structure is constantly improved, and the market competitiveness is steadily improved. Under the situation that the glass industry's demand margin is obviously improved while the supply-side constraints continue, the prosperity degree gradually from botton improves.In 2019, facing the complex economic situation, "de-leveraging, de-capacity" policy influence, the business cost such as energy, raw materials, security and environmental protection were constantly increasing. Under the strong leadership of the board of directors and management of the Company, all staff of the group were united,progressive, overcomed difficulties, focusing on "industrial optimization, technical innovation and structural adjustment, the whole process of systematism lean management".The company determined to enlarge and strengthen the glass industry strategy, coordinated business upgrade of electronic glass and display devices, and Scaled up efforts to implement the solar industry breakthrough, At the same time, the company focues on the connotative growth combined with denotative development, through the deepening of lean production, strengthening basic management, promoting the factory’s management level of informatization and automation and continues to promote scientific research, innovation, product upgrading and technological progress to improve the productivity and market competitiveness of enterprises,to improve the company's sustainable development ability by optimizing product structure and extending the layout of industrial chain. In 2019, the company worked on a glass-based strategy, gave full play to the group's strong foundation in the glass industry, technology and team accumulation, in the complex economic and policy environment we have achieved remarkable business results, in which the glass main business increases steadily, the electronic glass and display device business grows rapidly. Excluding the impairment of assets, the annual net profit was 980 million yuan, up 66% year- on-year. Although the technical upgrading of polysilicon in the photovoltaic industry affected part of the revenue, the company still achieved operating revenue of over 10 billion yuan, reaching 10.472 billion yuan, a decrease of 1.3%. After the asset impairment, the company achieved a net profit of 560 million yuan, up 18.68%, and the parent company's net profit of 536 million yuan, up 18.43%.

(I) Glass industry

In 2019, the overall performance of China's national economy was stable and the quality of development was steadily improved. China's GDP reached 99 trillion yuan, up 6.1% year-on-year. Investment in fixed assets (excluding rural households) reached 55 trillion yuan, up 5.4% year-on-year. Investment in real estate development reached 13.22 trillion yuan, up 9.9% year on year, while investment in infrastructure rose 3.8%. China's cumulative flat glass production grew by 6.6% year-on-year in 2019 (source: National Bureau of Statistics).In 2019, the company's flat glass production increased by 8.09% year on year.Energy saving glass business is the core business of the group. The five production bases cover Beijing-Tianjin-Hebei, Yangtze River Delta, Pearl River Delta, Chengdu-Chongqing region and Hubei region in central China, and the products are mainly high value-added products. With obvious location advantage, quality advantage and brand advantage, the group is the main high-end industrial glass supplier in the region and in China. The glass industry has obvious periodicity and seasonality. The development of the industry is closely related to the scale of social fixed asset investment and the real estate industry. At the same time, it is affected by the weather and holidays. The sales is usuallyCSG Annual Report 2019

slow in the first quarter, when holidays are concentrated and the weather is cold. The main sales mode of flat glass of the company is to produce and sell on demand, cash on the spot, and the sales mode of the architectural glass is to customized the production according to the customer's needs and to settle according to the progress of the project by batch. The company practices the business philosophy of green development and environmental protection, and all the production line fuel uses clean energy natural gas. Compared with other enterprises in the same industry that use fuels such as heavy oil or petroleum coke, the fuel cost of the company is relatively high. In 2019, the price of natural gas rises, and the company's fuel cost increases accordingly.

In 2019, facing adverse market conditions such as rising cost of mineral raw materials and natural gas, the company integrates product application into more subdivided industries through product structure adjustment and innovation, and reduces the purchase cost by adjusting the purchase method, reduce the comprehensive operation cost by digging into the internal potential and improve the quality and efficiency. At the same time, adhere to the product differentiation strategy and other measures, the glass industry against the trend of growth, achieved better business performance. In 2019, the glass industry achieved operating revenue of 7.98 billion yuan, an increase of 526 million yuan or 7.06% year-on-year.Net profit reached 935 million yuan, up 17%.

Flat glass:In 2019, the average price of flat glass declined compared with last year due to factors such as the slowing growth of fixed asset investment and the year-on-year increase of total production capacity in the industry. At the same time, the company needs to deal with increasing environmental requirements, continuous rise of price of raw materials, fuel, the downstream market slowdown in demand, lower market price and severer market competition, relative higher fuel cost,the flat glass business of CSG faces more serious pressure of business. By continuously optimizing the product structure, increasing the market development of new products and new applications, increasing the sales strength of differentiated products and increasing the sales strength of overseas markets, the operating revenue of flat glass is increased compared with the same period last year.

Architectural glass: CSG Group is a leading enterprise in the domestic architectural energy-saving glass industry. The architectural glass business is the brand support of CSG, and has formed the quality, service and continuous R&D capabilities that match the brand. In 2019, facing the pressure of the macro environment, architectural glass has withstood the test of the market through a series of key works such as contract signing and productivity coordination improvement, differentiated product development, intelligent automation upgrading and transformation, contract performance control and cost assessment, In 2019, the company's advantages in engineering glass highlighted, the sales quality and price of major products rose together, and the profit level improved substantially, so as to maintain the leading position in the industry. To further seize the market opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area, to serve better the industry and construction of the bay area, and to strengthen the competitiveness and influence of CSG in south China, the company invested and set up Zhaoqing SG Energy-saving Glass Co., Ltd. in Zhaoqing High-Tech Development Zone at the end of 2019 with the approval of the board of directors to build a high- grade energy-saving glass production line. The construction of this production base strengthens the company's market position in south China and further radiates to overseas markets such as southeast Asia and Australia.

(II) Electronic glass and display industry

Electronic glass and display device industry is an extension of the group's competitiveness and brand influence, and is also another high market share and reputable industry besides the flat glass, architectural glass industry. In 2019, the revenue profit of Electronic glass and display device business continued to rise year-on-year, and the revenue reached 1.044 billion yuan, up 8.76% year-on-year. Net profit reached 208 million yuan, up 46% year-on-year. The technology iteration ability of CSG high alumina ultra-thin glass products is in the leading position in China, and won the "2019 industry leader in touch display" award. Through technological innovation, the CSG Group opens the promotion lines

CSG Annual Report 2019of downstream application and widen the technological gap with domestic counterparts. In 2019, the company's electronic glass production capacity and industrial influence further enhanced as Xianning Electronic glass production base enters commercial operation. At the same time, the company gradually increased the R&D investment of electronic glass, successfully completed the development of a new generation of high-alumina electronic glass products. The excellent performance of CSG’s new generation of high-alumina electronic glass can meet the downstream terminal customers' higher standard requirements for basic materials in the fields of 3D curved surface technology and 5G communication solutions, and the market development is also progressing smoothly. At present, the innovative technology of one kiln and two lines of Qingyuan CSG which is under construction can not only enrich the product portfolio, but also further strengthen the cost barrier of the medium and low end electronic glass products. In the future, the group will continue to promote the upgrading of the electronic glass business, and further improve the group's comprehensive competitiveness in the electronic glass industry.The display industry continues to improve production efficiency and yield through asset activation, strengthening the technical advantages of large-sized capacitive touch screens such as glass structure and film structure. In the competitive market environment, through the development of high value-added products and high growth customers, the company optimizes product structure and customer structure, and constantly consolidates and improves the market share of products. This year, the volume growth of on-board glass Sensor business realizes accelerated growth, and the market share is greatly increased, which leads to the growth of ITO glass business and significant progress in the development of AG glass and cover plate business, which lays a foundation for the further improvement of the company's competitiveness and market position in the field of on-board touch control.

(III) Solar Energy industry

Affected by the "May 31 new photovoltaic policy" in 2018, major changes have taken place in the overall operating situation of the solar energy industry,relatively heavy assets, old production capacity, and the distribution in the region of high electricity prices, enterprises and production capacity of higher cost has greater operating pressure. So Yichang CSG Polydilicon, a subsidiary of the group, is facing serious challenges in its operation due to its location in a region with high electricity prices and heavy burden of accumulated assets. After nearly a year of research and preparation in 2019, the group determines the company’s working methodology of overall breakthrough for solar energy industry. On one hand, the operation burden is reduced by eliminating inefficient assets with outdated process and high energy consumption, idle equipment, at the same time, PV grade polysilicon production capacity is prepared to be moved and integrated to regions with lower electricity prices; on the other hand, quality of products and assets is improved through technological upgrading and transformation, so as to achieve the sound operation of the photovoltaic industry. In 2019, under the impact of the technical transformation of polysilicon production, the overall revenue declined.In 2019, the solar energy sector achieved an operating revenue of 1.542 billion yuan, a year-on-year decrease of 800 million yuan, after drawing 406 million yuan impairment provision, a net profit of -328 million yuan, a year-on-year decrease of 91 million yuan.

II. Main business analysis1. Overview

 

 

 

 

Unit: RMB

 

 

 

 

 

Items

2019

2018

Range of

Analysis of reasons

Change

 

 

 

 

 

 

 

 

 

Operating income

10,472,028,099

10,609,963,011

-1.30%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSG Annual Report 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

 

 

7,743,129,614

8,120,481,894

 

-4.65%

 

 

 

 

 

Sales expenses

 

 

 

389,269,235

354,983,459

 

9.66%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

602,590,650

731,215,251

-17.59%

Mainly due to the reduction of

 

Administration expenses

 

 

the amortization of equity

 

 

 

 

 

 

 

 

 

 

 

 

 

incentive costs

 

 

 

R&D expenses

 

 

 

366,871,283

338,791,891

 

8.29%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial expenses

 

 

 

290,417,403

349,403,487

-16.88%

Mainly due to the decrease in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow arising from

 

2,379,036,320

2,130,378,100

11.67%

Mainly due to a decrease in cash

 

 

 

 

payments for goods purchased

 

operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and services received.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow arising from

 

-733,075,474

-778,807,979

 

 

 

 

 

 

 

investment activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash flow arising from

 

-2,040,156,870

-1,588,458,276

 

 

Mainly due to a reduction in

 

 

 

 

 

financing activities

 

 

 

 

 

cash received on loans.

 

 

 

 

 

 

 

 

 

 

 

 

2. Revenue and cost

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Constitution of operation revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit: RMB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

2018

 

Increase/decrease

 

 

 

 

 

 

 

 

Ratio in operation

 

 

Ratio in operation

 

 

 

 

 

Amount

Amount

 

y-o-y

 

 

 

 

 

 

 

 

 

 

 

 

revenue

revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total of operating

 

10,472,028,099

 

 

100%

10,609,963,011

 

100%

 

-1.30%

 

 

 

 

 

 

 

 

 

income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glass industry

 

 

7,979,780,615

 

 

76.20%

7,453,555,124

 

70.25%

 

7.06%

 

 

Solar energy

 

 

1,542,206,620

 

 

14.73%

2,341,776,474

 

22.07%

 

-34.14%

 

 

industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic glass &

 

 

1,044,208,070

 

 

9.97%

960,075,428

 

9.05%

 

8.76%

 

 

Display industry

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Others

 

 

 

82,205,712

 

 

0.79%

 

58,900,937

 

0.56%

 

39.57%

 

 

Amount of

 

 

-176,372,918

 

 

-1.69%

-204,344,952

 

-1.93%

 

-13.69%

 

 

unutilized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Glass products

 

 

7,979,780,615

 

 

76.20%

7,453,555,124

 

70.25%

 

7.06%

 

 

Solar energy

 

 

1,542,206,620

 

 

14.73%

2,341,776,474

 

22.07%

 

-34.14%

 

 

products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic glass &

 

 

1,044,208,070

 

 

9.97%

960,075,428

 

9.05%

 

8.76%

 

 

Display products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Others

 

 

 

82,205,712

 

 

0.79%

 

58,900,937

 

0.56%

 

39.57%

 

 

Amount of

 

 

-176,372,918

 

 

-1.69%

-204,344,952

 

-1.93%

 

-13.69%

 

 

unutilized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

According to region

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mainland China

 

 

9,123,825,213

 

 

87.13%

9,151,411,893

 

86.25%

 

-0.30%

 

 

Overseas

 

 

1,348,202,886

 

 

12.87%

1,458,551,118

 

13.75%

 

-7.57%

 

(2)List of the industries, products or regions exceed 10% of the operating income or operating profits of the Company

√Applicable □ Not applicable

Unit: RMB

CSG Annual Report 2019

 

 

 

 

Increase/decrea

Increase/decrea

Increase/decrea

 

 

 

 

 

Operating

 

Gross profit

se of gross

 

Operating cost

se of operating

se of operating

 

revenue

ratio

profit ratio y-o-

 

 

revenue y-o-y

cost y-o-y

 

 

 

 

y

 

 

 

 

 

 

According to industry

 

 

 

 

 

Glass industry

7,979,780,615

5,792,756,344

27.41%

7.06%

7.26%

-0.13%

Solar energy

1,542,206,620

1,319,668,970

14.43%

-34.14%

-39.93%

8.24%

industry

 

 

 

 

 

 

Electronic glass

 

 

 

 

 

 

and display

1,044,208,070

736,766,160

29.44%

8.76%

10.32%

-1.00%

device industry

 

 

 

 

 

 

According to product

 

 

 

 

 

Glass products

7,979,780,615

5,792,756,344

27.41%

7.06%

7.26%

-0.13%

Solar energy

1,542,206,620

1,319,668,970

14.43%

-34.14%

-39.93%

8.24%

products

 

 

 

 

 

 

Electronic glass

 

 

 

 

 

 

& Display

1,044,208,070

736,766,160

29.44%

8.76%

10.32%

-1.00%

device products

 

 

 

 

 

 

According to region

 

 

 

 

 

Mainland China

9,123,825,213

6,716,284,772

26.39%

-0.30%

-3.49%

2.44%

Overseas

1,348,202,886

1,026,844,842

23.84%

-7.57%

-11.58%

3.46%

Under the circumstances that the statistical standards for the Company’s main business data adjusted in the report period, the Company's main business data in the recent year is calculated based on adjusted statistical standards at the end of the report period

□ Applicable √ Not applicable

(3) Whether the Company’s goods selling revenue higher than the service revenue

Whether the Company’s goods selling revenue higher than the service revenue √Yes □ No

Industry

Item

Unit

 

2019

2018

Increase/decrease

 

 

y-o-y (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales volume

10,000-ton

 

292

274

6.57%

Flat glass

 

 

 

 

 

 

 

Output

10,000-ton

 

294

272

8.09%

 

 

 

Inventory

10,000-ton

 

9

6

50%

 

 

10,000-M2

 

 

 

 

 

Sales volume

 

2,879

2,471

16.51%

Architectural glass

 

 

 

 

 

 

 

Output

10,000-M

2

 

2,916

2,500

16.64%

 

 

 

 

Inventory

10,000-M2

 

114

72

58.33%

 

 

 

 

 

 

 

 

 

Sales volume

ton

 

 

50,497

39,931

26.46%

Electronic glass

 

 

 

 

 

Output

ton

 

 

61,722

43,275

42.63%

 

 

 

 

Inventory

ton

 

 

17,478

5,742

204.39%

 

 

 

 

 

 

 

 

 

Sales volume

ton

 

 

 

4,753

-100%

Polysilicon

 

 

 

 

 

 

Output

ton

 

 

 

7,692

-100%

 

 

 

 

 

Inventory

ton

 

 

 

38

-100%

 

 

 

 

 

 

 

 

Sales volume

10,000-piece

 

36,782

26,346

39.61%

Silicon wafer

 

 

 

 

 

Output

10,000-piece

 

36,990

25,715

43.85%

 

 

 

Inventory

10,000-piece

 

530

421

25.89%

 

Sales volume

MW

 

 

784

836

-6.22%

 

 

 

Solar cell

 

 

 

 

 

Output

MW

 

 

890

917

-2.94%

 

 

 

 

Inventory

MW

 

 

34

19

78.95%

CSG Annual Report 2019Reasons for y-o-y relevant data with over 30% changes √Applicable □ Not applicable1.Flat glass: The increase in inventories was mainly due to the increase in production by about 220,000 tons, which increased the inventory level.2.Architectural glass: Through internal technical transformation and equipment capacity improvement, the company has greatly increased production quantity, resulting in an increase in inventory level3.Electronic glass: Large-scale output of new production line was largely ahead of time schedule planned,while the market promotion is still inprogress.4.Polysilicon: Polysilicon is under upgrading this year, no production and sales, last year left a small amount of inventory was left mainly for internal consumption.5.Silicon wafer: The increase of production and sales is mainly due to the recovery of production capacity after technical transformation, and the corresponding increase of production and sales.6.Solar cell: The battery production is based on sales, inventory increase is mainly affected by the customers’ pick-up time.

(4) Fulfillment of significant sales contracts signed by the Company up to the report period

□ Applicable √ Not applicable

(5) Constitution of operation cost

Main business cost structureIndustry classification

 

 

 

 

 

 

 

 

 

 

Unit: RMB

 

 

 

 

 

 

 

 

 

 

 

 

 

Industry

Item

2019

 

2018

 

Increase/decreas

 

 

Ratio in

 

 

 

 

Ratio in

 

Amount

 

Amount

 

 

 

e y-o-y

 

 

 

operation cost

 

 

operation cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Raw material

4,558,141,051

78.98%

 

4,250,705,139

 

 

79.08%

 

7.23%

 

Glass industry

Labor wages

560,930,664

9.72%

 

506,600,563

 

 

9.42%

 

10.72%

 

Manufacturing

652,239,422

11.30%

 

618,127,419

 

 

11.50%

 

5.52%

 

 

 

 

 

 

 

 

costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Electronic glass

Raw material

482,812,079

65.57%

 

437,942,818

 

 

65.75%

 

10.25%

 

Labor wages

97,520,763

13.24%

 

86,736,184

 

 

13.02%

 

12.43%

 

& Display

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

 

 

 

 

 

 

 

 

 

industry

155,953,711

21.18%

 

141,429,615

 

 

21.23%

 

10.27%

 

costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Raw material

1,058,197,056

82.17%

 

1,758,180,912

 

 

80.99%

 

-39.81%

 

Solar energy

Labor wages

109,535,172

8.51%

 

164,144,458

 

 

7.56%

 

-33.27%

 

 

 

 

 

 

 

 

 

 

 

 

industry

Manufacturing

120,118,749

9.33%

 

248,666,105

 

 

11.45%

 

-51.69%

 

 

costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product classification

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit: RMB

 

 

 

 

 

 

 

 

 

 

Product

Item

2019

 

2018

 

Increase/decrea

 

 

Ratio in

 

 

 

Ratio in

 

 

Amount

Amount

 

 

se y-o-y

 

 

 

operation cost

 

operation cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Raw material

4,558,141,051

78.98%

4,250,705,139

 

79.08%

7.23%

 

Glass products

Labor wages

560,930,664

9.72%

506,600,563

 

9.42%

10.72%

 

Manufacturing

652,239,422

11.30%

618,127,419

 

11.50%

5.52%

 

 

 

 

 

costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSG Annual Report 2019

Electronic glass

Raw material

482,812,079

65.57%

437,942,818

65.75%

10.25%

Labor wages

97,520,763

13.24%

86,736,184

13.02%

12.43%

& Display

 

 

 

 

 

 

Manufacturing

 

 

 

 

 

products

155,953,711

21.18%

141,429,615

21.23%

10.27%

costs

 

 

 

 

 

 

 

Raw material

1,058,197,056

82.17%

1,758,180,912

80.99%

-39.81%

Solar energy

Labor wages

109,535,172

8.51%

164,144,458

7.56%

-33.27%

products

Manufacturing

120,118,749

9.33%

248,666,105

11.45%

-51.69%

 

costs

 

 

 

 

 

 

(6) Whether the consolidated scope changed during the report period

 

 

√ Yes □No

On March 21, 2019, the group established Zhuhai CSG Commercial Factoring Co., Ltd. As of December 31, 2019, the group has made a monetary capital contribution of 50 million yuan, and the group holds 100% of its shares.

On May 14, 2019, the group established Zhuhai Hengqin New District CSG Glass Industrial Co., Ltd. As of December 31, 2019, the group has made a monetary capital contribution of 6 million yuan, and the group holds 100% of its shares. On June 11, 2019, the group established Shenzhen CSG Supply Chain Management Service Co., Ltd. As of December 31, 2019, the group has made a monetary capital contribution of 6 million yuan, and the group holds 100% of its shares. On July 24, 2019, the group set up Shenzhen CSG technologyCo., Ltd. As of December 31, 2019, the group has not invested, and the group holds 100% of its shares.

On August 6, 2019, the group set up Shenzhen CSG Hongkai Zone Operation Management co., Ltd. As of December 31, 2019, the group has not invested, and the group holds 100% of its shares.

On December 13, 2019, the group established Zhaoqing CSG Energy Conservation Glass Co., Ltd. As of December 31, 2019, the group has made a monetary capital contribution of 12.801 million yuan, and the group holds 100% of its shares.

On December 13, 2019, the group established Zhaoqing CSG Automotive Glass Co., Ltd. As of December 31, 2019, the group has made a monetary capital contribution of 12.601 million yuan, and the group holds 100% of its shares.

(7)Major changes or adjustment in business, product or service of the Company in the report period

□Applicable √ Not applicable

(8) Major customers and major suppliers

Major customers of the Company

Total sales to the top five customers (RMB)

 

1,202,772,383

Proportion in total annual sales volume for top five customers

11.49%

Information of the top five customers of the Company

 

 

 

 

 

 

 

Serial

Name of customer

 

Sales volume (RMB)

Proportion in total annual

 

 

sales

 

 

 

 

1

Customer A

 

316,259,150

3.02%

2

Customer B

 

272,944,477

2.61%

3

Customer C

 

271,514,859

2.59%

4

Customer D

 

181,983,867

1.74%

5

Customer E

 

160,070,030

1.53%

Total

 

 

1,202,772,383

11.49%

Other statement of main customers □ Applicable √ Not applicable

 

 

 

 

 

 

 

 

CSG Annual Report 2019

 

Major suppliers of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total purchase amount from the top five suppliers (RMB)

 

 

1,282,467,323

 

 

Proportion in total annual purchase amount from the top five suppliers

 

16.19%

 

 

Information of the top five suppliers of the Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Serial

Name of supplier

 

Purchase amount (RMB)

Proportion in total annual

 

 

 

 

 

purchase

 

 

 

 

 

 

 

 

 

 

 

1

Supplier A

 

 

 

 

411,556,056

5.19%

 

 

2

Supplier B

 

 

 

 

245,300,324

3.10%

 

 

3

Supplier C

 

 

 

 

240,702,000

3.04%

 

 

4

Supplier D

 

 

 

 

220,491,470

2.78%

 

 

5

Supplier E

 

 

 

 

164,417,473

2.08%

 

 

Total

 

 

 

 

 

1,282,467,323

16.19%

 

 

Other statement of major suppliers

 

 

 

 

 

 

 

□ Applicable √ Not applicable

 

 

 

 

 

 

 

3. Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit: RMB

 

 

 

 

 

 

 

 

 

 

2019

2018

Increase/decrease y-o-y

Note of major changes

 

 

Sales expense

389,269,235

354,983,459

 

9.66%

 

 

 

 

 

 

 

 

 

 

Mainly due to the reduction

 

 

Management expense

602,590,650

731,215,251

 

-17.59%

of the amortization of equity

 

 

 

 

 

 

 

 

 

incentive costs

 

 

Financial expense

290,417,403

349,403,487

 

-16.88%

Mainly due to the reduction

 

 

 

of interest costs.

 

 

 

 

 

 

 

 

 

R&D expenses

366,871,283

338,791,891

 

8.29%

 

 

 

 

 

 

 

 

 

 

 

 

4. R&D expenses

√Applicable □ Not applicableThe Company always emphasizes R&D of new products, new technology and new craft, and R&D aims to stay close to the market, production and industry.R&D investment of the Company

 

2019

2018

Ratio of change

Number of R & D personnel (person)

184

146

26.03%

Ratio of number of R&D personnel

1.76%

1.35%

0.41%

Amount of R & D investment (RMB)

440,884,641

381,711,070

15.50%

Ratio of the R&D investment to the operating

4.21%

3.60%

0.61%

income

 

 

 

Amount of the capitalized R&D investment

74,013,358

42,963,845

72.27%

(RMB)

 

 

 

Ratio of the capitalized R&D investment to the

16.79%

11.26%

5.53%

R&D investment

 

 

 

Reason of remarkable changes over the last year of the ratio of the total R&D investment amount to the operating income

□ Applicable √ Not applicableReason of substantial change of the ratio of the R&D investment capitalization and its reasonable explanation √ Applicable □ Not applicableMainly due to increased investment in research and development. 19

 

 

 

 

 

CSG Annual Report 2019

 

5. Cash flow

 

 

 

 

 

 

 

 

 

 

Unit: RMB

 

 

 

 

 

 

 

 

Item

2019

 

2018

Increase/decrease y-o-y

 

 

Subtotal of cash in-flow from operation activity

11,798,483,075

 

12,086,856,666

-2.39%

 

 

Subtotal of cash out-flow from operation

9,419,446,755

 

9,956,478,566

-5.39%

 

 

activity

 

 

 

 

 

 

 

 

 

Net cash flow from operation activity

2,379,036,320

 

2,130,378,100

11.67%

 

 

Subtotal of cash in-flow from investment

37,590,251

 

35,327,557

6.4%

 

 

activity

 

 

 

 

 

 

 

 

 

Subtotal of cash out-flow from investment

770,665,725

 

814,135,536

-5.34%

 

 

activity

 

 

 

 

 

 

 

 

 

Net cash flow from investment activity

-733,075,474

 

-778,807,979

 

 

 

Subtotal of cash in-flow from financing activity

3,471,013,352

 

4,672,680,876

-25.72%

 

 

Subtotal of cash out-flow from financing

5,511,170,222

 

6,261,139,152

-11.98%

 

 

activity

 

 

 

 

 

 

 

 

 

Net cash flow from financing activity (i)

-2,040,156,870

 

-1,588,458,276

 

 

 

Net increased amount of cash and cash

-393,291,883

 

-234,626,252

 

 

 

equivalent (ii)

 

 

 

 

 

 

 

 

 

 

Relevant data year-on-year major changes in the main influencing factors

 

 

 

 

√Applicable □ Not applicable

 

 

 

 

 

 

(i) It is mainly caused by the decrease of cash from loans received.

 

 

 

Notes to the reason of the significant differences between the net cash flow from the operating activities and the net profits of the year during the report periodApplicable √ Not applicable

III. Analysis of the non-core business

√Applicable □ Not applicable

 

 

 

 

Unit: RMB

 

 

 

 

 

 

Amount

Ratio in total

Note for the reason

Sustainable or not

 

 

profit

 

 

 

 

Asset impairment

463,324,685

69.98%

Mainly due to the provision of long-term

No

 

 

 

asset impairment

 

 

 

 

 

Non-operating

7,827,834

1.18%

Mainly due to the claims and unpayable

No

income

amounts

Non-operating

9,440,087

1.43%

Mainly due to donations and

No

expense

compensation expenses

 

 

 

Mainly due to the department of

 

Other Income

184,131,420

27.81%

No

government subsidies amortization

 

 

 

 

 

 

 

Mainly due to the provision of accounts

 

Credit

 

 

 

 

 

 

20,114,033

3.04%

receivable and other receivables

No

impairment loss

 

 

impairment losses

 

 

 

 

 

CSG Annual Report 2019

IV. Assets and liabilities1. Major changes of assets and liabilities composition

Unit: RMB

 

As at 31 Dec. 2019

As at 31 Dec. 2018

Change

 

 

 

 

 

Proportion

 

Proportio

of

Notes of major changes

 

Amount

in total

Amount

n in total

proportio

 

 

 

 

assets

 

assets

n

 

Monetary funds

1,986,980,418

10.92%

2,226,447,720

11.65%

-0.73%

 

Advance payment

78,196,027

0.43%

91,176,675

0.48%

-0.05%

 

 

 

 

 

 

 

Mainly due to the classification of

 

 

 

 

 

 

Notes receivable

297,023,380

1.63%

719,375,448

3.76%

-2.13%

some notes into receivables

financing according to the new

 

 

 

 

 

 

 

 

 

 

 

 

financial instrument standards

Accounts

649,681,177

3.57%

592,233,312

3.10%

0.47%

 

receivable

 

 

 

 

 

 

 

 

 

 

 

 

 

Mainly due to the classification of

Receivables

258,296,826

1.42%

0

 

1.42%

some notes into receivables

financing

 

financing according to the new

 

 

 

 

 

 

 

 

 

 

 

financial instrument standards

 

 

 

 

 

 

Mainly due to the increase of

 

 

 

 

 

 

Inventory

812,321,690

4.46%

600,139,750

3.14%

1.32%

 

 

 

 

 

 

goods in stock

 

 

 

 

 

 

Holding assets for

 

0.00%

45,983,520

0.24%

-0.24%

Mainly due to the disposal of

sale

 

assets held for sale

Fix assets

9,783,037,301

53.75%

9,930,843,775

51.96%

1.79%

 

Construction in

1,902,140,035

10.45%

2,559,179,442

13.39%

-2.94%

 

process

 

 

 

 

 

 

 

Deferred income

 

 

 

 

 

Mainly due to long-term asset

 

 

 

 

 

205,792,587

1.13%

139,529,518

0.73%

0.40%

impairment and tax losses

tax assets

 

 

 

 

 

increase

 

 

 

 

 

 

 

 

 

 

 

 

Mainly due to the advance

 

 

 

 

 

 

Other Non-

120,399,893

0.66%

56,825,934

0.30%

0.36%

payment of engineering

Current Assets

equipment and the increase of

 

 

 

 

 

 

land assignment fee

Short-term loans

2,240,969,137

12.31%

2,922,679,590

15.29%

-2.98%

 

 

 

 

 

 

 

Mainly due to the increase of new

 

 

 

 

 

 

Notes payable

232,063,968

1.27%

105,150,000

0.55%

0.72%

bills issued by some subsidiaries

 

 

 

 

 

 

 

 

 

 

 

 

Mainly due to the increase of

Prepayments

292,803,811

1.61%

206,631,008

1.08%

0.53%

advance payment of some

 

 

 

 

 

 

subsidiaries

 

 

 

 

 

 

Mainly due to the repurchase of

 

 

 

 

 

 

Other payables

351,374,775

1.93%

552,751,187

2.89%

-0.96%

 

 

 

 

 

 

restricted stock

 

 

 

 

 

 

Current portion of

 

 

 

 

 

Mainly due to the reclassification

 

 

 

 

 

 

 

 

 

 

of medium-term notes to non-

non-current

1,712,456,928

9.41%

819,448,742

4.29%

5.12%

liabilities

 

 

 

 

 

current liabilities due within one

 

 

 

 

 

year

 

 

 

 

 

 

 

 

 

 

 

 

Mainly due to the reclassification

Long-term loans

1,320,225,000

7.25%

2,315,700,000

12.12%

-4.87%

of medium-term notes to non-

current liabilities due within one

 

 

 

 

 

 

 

 

 

 

 

 

year

Long term

87,240,529

0.48%

529,910,796

2.77%

-2.29%

Mainly due to the repayment of

Accounts payable

financial leasing

Deferred income

30,197,657

0.17%

22,118,840

0.12%

0.05%

 

tax liabilities

 

 

 

 

 

 

 

Capital reserve

683,219,358

3.75%

1,095,339,421

5.73%

-1.98%

Mainly due to the repurchase of

 

 

 

 

 

 

 

CSG Annual Report 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

restricted stock and Capital

 

 

 

 

 

 

 

reserve into share capital

 

Treasury stock

118,066,397

0.65%

277,180,983

1.45%

-0.80%

Mainly due to the repurchase of

 

restricted stock

 

 

 

 

 

 

 

Other

 

 

 

 

 

Mainly due to foreign currency

 

Comprehensive

6,565,864

0.04%

5,080,234

0.03%

0.01%

statement translation difference

 

Income

 

 

 

 

 

changes

 

Special Reserve

11,102,921

0.06%

6,068,600

0.03%

0.03%

 

 

 

 

 

 

 

 

 

2. Assets and liabilities measured at fair value

□ Applicable √ Not applicable

3. Limited asset rights as of the end of the report period

Item

Limited amount

Limited reason

Monetary funds

155,145,388

Limited margin transfer

Fix assets

1,373,926,910

Limited of Leveraged lease and Mortgage loan

 

 

 

Total

1,529,072,298

 

 

 

 

V. Investment1. Overall situation

√Applicable □ Not applicable

Investment in the report period

Investment in the same period of

Changes

(RMB)

last year ( RMB)

 

770,665,725

814,135,536

-5.34%

 

 

 

2. The major equity investment obtained in the report period

□ Applicable √ Not applicable

CSG Annual Report 2019

3. The major ongoing non-equity investment in the report period

√Applicable □ Not applicable

 

 

 

 

 

 

 

 

 

 

 

Unit: RMB 0,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulati

 

 

 

Accumulativ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed

 

Amount

ve amount

 

 

 

Reasons for not

Date of

 

 

 

Industr

 

 

 

e revenue

Index of

 

Way of

asset

invested

actually

 

 

 

achieving the

disclosur

 

y

Source of

Progress of project (ongoing

Expected

achieved by

disclosure

Project

investme

investm

in the

invested by

planned progress

e (if

involve

funds

projects)

return

the end of

(if

 

nt

ent or

report

the end of

and the expected

applicabl

 

d

 

 

 

the report

applicable)

 

 

not

period

the report

 

 

 

return

e)

 

 

 

 

 

 

period

 

 

 

 

 

 

period

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The company plans to adopt the

 

 

 

 

 

 

 

 

 

 

 

 

advanced design concept of one

 

 

 

 

 

 

 

 

 

 

 

 

kiln and two lines, and build a

 

 

 

 

 

 

 

 

 

 

 

 

production line of one kiln and

 

 

 

 

 

 

 

 

 

 

 

 

two lines (80 + 620T/D) for ultra-

 

 

 

 

 

 

 

 

 

 

 

 

white electronics and ultra-white

 

 

 

 

 

 

 

 

 

 

 

 

special glass with a daily melting

 

 

 

 

 

Qingyuan

 

 

 

 

 

 

capacity of 700 tons in Qingyuan

 

 

 

 

 

 

 

 

 

 

 

CSG. The first-line plan is

 

 

 

 

 

CSG ultra-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

designed according to 80T/D, will

 

 

 

 

 

clear

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

produce 0.33-1.1mm, considering

 

 

 

 

 

electronic

 

 

Manufa

 

 

Own funds

 

 

 

 

Notice

 

 

 

 

the production capacity of 2mm,

 

 

Project construction

 

glass and

 

 

cturing

 

 

and loans from

 

 

Decenber

ultra-clear

Self-built

Yes

industr

8,839

8,873

financial

mainly producing electronic

16,420

 

period, no profits

22, 2018

number:

special glass

 

 

y

 

 

institutions

display toughened protective glass

 

 

temporarily.

 

2018-072

 

 

 

 

for mobile phones. The second-

 

 

 

 

 

product line

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

line plan is designed according to

 

 

 

 

 

construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

620T/D, with two series of 3-4mm

 

 

 

 

 

project

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and 15-22mm for differentiated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

management, and 5-12mm as the

 

 

 

 

 

 

 

 

 

 

 

 

transition, mainly producing AG

 

 

 

 

 

 

 

 

 

 

 

 

anti-dazzle, "exposure glass" for

 

 

 

 

 

 

 

 

 

 

 

 

scanning and copier, TCO for thin

 

 

 

 

 

 

 

 

 

 

 

 

film battery, battery front plate

 

 

 

 

 

 

 

 

 

 

 

 

and back plate and other ultra-

 

 

 

 

 

 

 

 

 

 

 

 

clear special glass.

 

 

 

 

 

Zhaoqing

Self-built

Yes

Manufa

 

 

 

The CSG Group plans to invest in

7,000

 

Project construction

Decembe

Notice

CSG Annual Report 2019

CSG high-

 

 

cturing

 

 

 

the construction of energy-saving

 

 

period, no profits

r 13,

number:

grade Energy

 

 

industr

 

 

 

glass production project in

 

 

temporarily.

2019

2019-077

Conservation

 

 

y

 

 

 

Zhaoqing from 2019 to 2021.

 

 

 

 

 

glass

 

 

 

 

 

 

After the production, the company

 

 

 

 

 

production

 

 

 

 

 

 

will produce 2.5 million square

 

 

 

 

 

line project

 

 

 

 

 

 

meters of energy-saving insulating

 

 

 

 

 

 

 

 

 

 

 

 

glass and 3.5 million square

 

 

 

 

 

 

 

 

 

 

 

 

meters of coated energy-saving

 

 

 

 

 

 

 

 

 

 

 

 

products with an estimated annual

 

 

 

 

 

 

 

 

 

 

 

 

profit of 70 million yuan. At

 

 

 

 

 

 

 

 

 

 

 

 

present, the land auction has been

 

 

 

 

 

 

 

 

 

 

 

 

completed and an investment

 

 

 

 

 

 

 

 

 

 

 

 

agreement has been signed with

 

 

 

 

 

 

 

 

 

 

 

 

the local government.

 

 

 

 

 

 

 

 

 

 

 

 

The CSG group plans to invest in

 

 

 

 

 

 

 

 

 

 

 

 

the construction of high-end

 

 

 

 

 

Zhaoqing

 

 

 

 

 

 

automotive glass production line

 

 

 

 

 

CSG high-

 

 

Manufa

 

 

 

in Zhaoqing from 2019 to 2021,

 

 

 

 

 

grade

 

 

 

 

 

with an annual production

 

 

Project construction

Decembe

Notice

 

 

cturing

 

 

 

 

 

automotive

Self-built

Yes

 

 

 

capacity of 800,000 sets and an

5,800

 

period, no profits

r 13,

number:

industr

 

 

 

 

glass

 

 

 

 

 

estimated annual profit of 58

 

 

temporarily.

2019

2019-077

 

 

y

 

 

 

 

 

production

 

 

 

 

 

million yuan. The land auction has

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

line project

 

 

 

 

 

 

been completed and an investment

 

 

 

 

 

 

 

 

 

 

 

 

agreement has been signed with

 

 

 

 

 

 

 

 

 

 

 

 

the local government.

 

 

 

 

 

 

 

 

 

 

 

 

It is planned to fully implement

 

 

 

 

 

 

 

 

 

 

 

 

the diamond wire cutting

 

 

 

 

 

 

 

 

 

 

 

 

technology in the production of

 

 

 

 

 

Yichang

 

 

 

 

 

 

silicon wafers, introduce the

 

 

 

 

 

 

 

 

 

 

 

casting single crystal technology

 

 

 

 

 

CSG

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and the wet black silicon

 

 

 

 

 

Polysilicon

 

 

Manufa

 

 

Own funds

 

 

 

 

Notice

 

 

 

 

technology, and upgrade the

 

 

Project revenue

 

wafer

 

 

cturing

 

 

and loans from

 

 

July 28,

capacity

Self-built

Yes

industr

2,087

2,682

financial

production capacity of the 1.3 GW

12,599

 

cannot be accounted

2018

number:

technology

 

 

y

 

 

institutions

polysilicon wafers in the early

 

 

for separately.

 

2018-040

 

 

 

 

stage of the company to form an

 

 

 

 

 

upgrade

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

annual output of about 1.2 GW of

 

 

 

 

 

project

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

cast single wafer. And annual

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

production capacity of about

 

 

 

 

 

 

 

 

 

 

 

 

0.8GW wet black silicon wafer.

 

 

 

 

 

 

 

 

 

 

 

 

The main part of the project was

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CSG Annual Report 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

completed in June 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Project revenue

 

 

 

 

 

 

 

 

 

 

 

CSG has added 1GW capacity of

 

 

cannot be accounted

 

 

 

 

 

 

 

 

 

 

 

high-efficient polysilicon wafer to

 

 

for separately. The

 

 

 

 

 

 

 

 

 

 

 

achieve 2.2GW capacity of

 

 

company has

 

 

 

 

 

 

 

 

 

 

 

polysilicon wafer. Construction of

 

 

decided to stop the

 

Notice

 

 

 

 

 

 

 

 

the first 500 MW capacity of

 

 

implementation of

January

 

 

 

 

 

 

 

 

 

 

number:

Yichang

 

 

Manufa

 

 

Own funds

polysilicon wafer was completed

 

 

the post-500MW

06, 2016,

 

 

 

 

 

 

2016-

 

CSG to add a

Self-built

Yes

cturing

2,742

49,367

and loans from

in September 2017. The company

14,853

 

capacity project.

April 16,

001、

1GW silicon

 

 

industr

 

 

financial

has decided to stop the

 

 

For details, please

2016,

2016-

 

wafer project

 

 

y

 

 

institutions

implementation of the other

 

 

refer to the

July 28,

 

 

 

 

 

 

 

018、

 

 

 

 

 

 

 

 

500MW capacity project. For

 

 

announcement of

2018

 

 

 

 

 

 

 

 

 

 

2018-040

 

 

 

 

 

 

 

 

details, please refer to the

 

 

the resolution of the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

announcement of the resolution of

 

 

extraordinary

 

 

 

 

 

 

 

 

 

 

 

the extraordinary meeting of the

 

 

meeting of the 8th

 

 

 

 

 

 

 

 

 

 

 

8th Board of Directors in 2018.

 

 

Board of Directors

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in 2018.

 

 

 

 

 

 

 

 

 

 

 

CSG plans to construct PV power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

plants within two years from 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to 2017. Its wholly-owned

 

 

 

 

 

 

 

 

 

 

 

 

 

 

subsidiary, Shenzhen CSG PV

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Co., Ltd. will self-build

 

 

 

 

 

 

 

 

 

 

Manufa

 

 

Own funds

200MW and the remaining

 

 

 

 

 

 

PV power

 

 

 

 

140MW will be constructed by

 

 

 

 

Notice

 

 

cturing

 

 

and loans from

 

 

Part of the project

January

plant

Self-built

Yes

 

26,214

CSG with Qibin Group. During

4,344

4,840

number:

investment

 

 

industr

 

 

financial

2016 to 2018, Shenzhen CSG PV

 

 

has been completed.

22, 2016

2016-006

 

 

 

 

y

 

 

institutions

developed and built a total of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

78MW of photovoltaic power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

stations, including 58MW of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

distributed photovoltaic power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

plants and 20MW of centralized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

photovoltaic power plants.

 

 

 

 

 

 

Hebei Panel

 

 

 

 

 

 

Plan to establish a production line

 

 

 

 

 

 

Glass project

 

 

 

 

 

 

for medium-alumina ultra-thin

 

 

 

 

 

 

of medium-

 

 

Manufa

 

 

 

electronic glass in Hebei Panel

 

 

 

 

Notice

alumina

 

 

cturing

 

 

 

Glass, using clean natural gas as

 

 

 

October

Self-built

Yes

 

1,266

Own funds

 

 

 

number:

ultra-thin

industr

 

the fuel, and produce 0.33mm~

 

 

 

29, 2014

 

 

 

 

 

 

 

 

2014-030

electronic

 

 

y

 

 

 

1.1mm medium-alumina ultra-thin

 

 

 

 

 

 

glass product

 

 

 

 

 

 

glass with float process. The

 

 

 

 

 

 

line project

 

 

 

 

 

 

project was still in preparation.

 

 

 

 

 

 

CSG Annual Report 2019

Yichang

 

 

 

 

 

 

Plan to build a crystalline silicon

 

 

 

 

 

CSG

 

 

Manufa

 

 

 

solar cell production line with

 

 

 

Decembe

Notice

700MW

 

 

cturing

 

 

 

annual capacity of 700MW. The

 

 

The project was

Self-built

Yes

 

 

 

 

 

r 25,

number:

crystalline

industr

 

 

 

project was suspended and further

 

 

suspended.

 

 

 

 

 

 

 

2010

2010-046

silicon solar

 

 

y

 

 

 

investment will be based on actual

 

 

 

 

 

 

 

 

 

 

 

 

 

cell project

 

 

 

 

 

 

industry situations.

 

 

 

 

 

Expanding

 

 

 

 

 

 

Plan to expand the solar module

 

 

 

 

 

 

 

Manufa

 

 

 

production line with annual

 

 

 

 

 

500MW

 

 

 

 

 

 

 

 

 

Notice

 

 

cturing

 

 

 

capacity of 500MW. The project

 

 

The project was

January

solar module

Self-built

Yes

 

 

 

 

 

number:

industr

 

 

 

was suspended and further

 

 

suspended.

19, 2011

project in

 

 

 

 

 

 

 

2011-003

Dongguan

 

 

y

 

 

 

investment will be based on actual

 

 

 

 

 

 

 

 

 

 

 

industry situations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company plans to construct a

 

 

 

 

 

 

 

 

 

 

 

 

module workshop in Xianning,

 

 

 

 

 

Relocation

 

 

 

 

 

 

Hubei Province, of which the final

 

 

 

 

 

 

 

 

 

 

 

capacity will be 500MW. By

 

 

 

 

 

and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

relocation of some of the module

 

 

 

 

 

equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufa

 

 

 

equipment of its subsidiary,

 

 

 

 

 

upgrading of

 

 

 

 

 

 

 

 

 

Notice

Self-built

Yes

cturing

 

 

 

Dongguan CSG PV Technology

 

 

The project was

April 16,

the solar

industr

 

 

 

Co., Ltd. and purchase of some

 

 

suspended.

2016

number:

module

 

 

 

 

 

 

 

2016-018