CSGHOLDINGCO.,LTD.

SEMI-ANNUALREPORT2022

ChairmanoftheBoard:

CHENLIN

August2022

SectionI.ImportantNotice,ContentandParaphraseBoardofDirectorsandtheSupervisoryCommitteeofCSGHoldingCo.,Ltd.(hereinafterreferredtoastheCompany)anditsdirectors,supervisorsandseniorexecutivesherebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualand/orjoint,forthefacticity,accuracyandcompletenessofthewholecontents.Ms.ChenLin,personinchargeoftheCompany,Ms.WangWenxin,responsiblepersoninchargeofaccountingandMs.WangWenxin,principalofthefinancialdepartment(accountingofficer)confirmthattheFinancialReportenclosedinthesemi-annualreportoftheCompanyistrue,accurateandcomplete.AlldirectorswerepresentatthemeetingoftheBoardfordeliberatingthesemi-annualreportoftheCompanyinperson.Thefutureplans,developmentstrategiesandotherforward-lookingstatementsmentionedinthisreportdonotconstituteamaterialcommitmentoftheCompanytoinvestors.Investorsandrelevantpartiesshouldpayattentiontoinvestmentrisks,andunderstandthedifferencesbetweenplans,forecastsandcommitments.TheCompanyhasdescribedtheriskfactorsandcountermeasuresoftheCompany'sfuturedevelopmentindetailinthisreport.PleaserefertoSectionIII.ManagementDiscussionandAnalysisTheCompanyhasnoplansofcashdividenddistribution,bonussharesbeingsentorconvertingcapitalreserveintosharecapital.ThisreportispreparedbothinChineseandEnglish.ShouldtherebeanyinconsistencybetweentheChineseandEnglishversions,theChineseversionshallprevail.

Content

SectionI.ImportantNotice,ContentandParaphrase....................................................1

SectionII.CompanyProfile&FinancialHighlights.....................................................5

SectionIII.BusinessDiscussionandAnalysis...............................................................8

SectionIV.CorporateGovernance...............................................................................33

SectionV.Environmentandsocialresponsibility........................................................35

SectionVI.ImportantEvents........................................................................................43

SectionVII.ChangesinSharesandParticularsaboutShareholders...........................59

SectionVIII.Preferredshares.......................................................................................65

SectionIX.Bonds.........................................................................................................66

SectionX.FinancialReport..........................................................................................69

DocumentsavailableforReference.I.TextofthefinancialreportcarryingthesignaturesandsealsofthepersoninchargeoftheCompany,theresponsiblepersoninchargeofaccountingandtheprincipalofthefinancialdepartment(accountingofficer).II.AlltextsoftheCompany’sdocumentsandoriginalpublicnoticesdisclosedinthepapersappointedbyCSRCinthereportperiod.

Paraphrase

SectionII.CompanyProfile&FinancialHighlightsI.CompanyProfile

II.Person/Waytocontact

III.Otherinformation

1.WayofcontactWhetherregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompanychangedinthereportperiodornot

□Applicable√NotapplicableTheregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompanydidnotchangeinthereportperiod.MoredetailscanbefoundinAnnualReport2021.

2.Informationdisclosureandpreparationplace

Whetherinformationdisclosureandpreparationplacechangedinthereportperiodornot

□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbyCSRCfordisclosingsemi-annualreportandpreparationplaceofsemi-annualreportdidnotchangeinthereportperiod.MoredetailscanbefoundinAnnualReport

2021.

3.OtherrelevantinformationWhetherotherrelevantinformationchangedinthereportperiodornot

□Applicable√Notapplicable

IV.MainaccountingdataandfinancialindexesWhetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

V.Differenceofaccountingdataunderdomesticandoverseasaccountingstandards

1.DifferencesofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderinternationalandChineseaccountingstandards

□Applicable√NotapplicableNosuchdifferencesinthereportperiod.

2.DifferenceofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderoverseasandChineseaccountingstandards

□Applicable√NotapplicableNosuchdifferencesinthereportperiod.

VI.Itemsandamountsofnon-recurringgainsandlosses

√Applicable□Notapplicable

Unit:RMB

Particularsaboutothergainsandlossesthatmeetthedefinitionofnon-recurringgainsandlosses:

□Applicable√NotapplicableItdidnotexistthatotherprofitandlossitemsmetthedefinitionofnon-recurringgainsandlosses.Explanationofthenon-recurringgainsandlosseslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsandLossesasrecurringgainsandlosses

□Applicable√NotapplicableItdidnotexistthatnon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesOfferingSecuritiestothePublic-Non-recurringProfitandLossweredefinedasrecurringprofitandlossitemsinthereportperiod.

SectionIII.BusinessDiscussionandAnalysisI.Mainbusinessofthecompanyduringthereportperiod

(I)MainbusinessoftheCompany

CSGisaleadingdomesticbrandofenergy-savingglassandarenownedbrandofsolarPVproductsanddisplaydevices.Itsproductsandtechnologiesarewell-knownathomeandabroad.ItsmainbusinessincludesR&D,manufacturingandsalesofhigh-qualityfloatglass,architecturalglass,photovoltaicglass,newmaterialsandinformationdisplayproductssuchasultra-thinelectronicglassanddisplaydevices,aswellasrenewableenergyproductssuchassiliconmaterials,photovoltaiccellsandmodules,anditprovidesone-stopservicesforphotovoltaicpowerstationprojectdevelopment,construction,operationandmaintenance,etc.FlatglassbusinessTheflatglassbusinessofCSGincludesfloatglassandphotovoltaicglass.Theproductionmode,businessstrategy,technicalrequirementsanddevelopmentdirectionofthetwobusinesseshavesimilaritiesandconsiderabledifferencesduetothedifferenceofindustrialchainenvironment,industrydevelopmentstageandpolicyenvironment.Inthefieldoffloatglass,CSGhas10advancedfloatglassproductionlinesinDongguan,Chengdu,Langfang,WujiangandXianning,andhasquartzsandrawmaterialprocessingandproductionbasesinJiangyou,SichuanProvince,Qingyuan,GuangdongProvinceandFengyang,AnhuiProvince.Theannualoutputofvarioustypesofhigh-gradefloatglassisabout2.47milliontons,coveringhigh-qualityfloatglassandultra-whitefloatglasswithvariousthicknessesandspecificationsof1.3-25mm.Theperformanceindicatorsoftheproductshavereachedtheleadingdomesticlevel.CSGfloatglassproductsareallhigh-endproductsthatcanbedirectlyusedfordownstreamdeepprocessing,andtheproportionofdifferentiatedglassproductswithspecialspecificationsandspecialapplicationscenariossuchasultra-white,ultra-thin,andultra-thickislarge,whicharewidelyusedinhigh-endbuildingcurtainwalls,decorationandfurniture,mirrors,carwindshields,scannersandcopiers,homeappliancepanels,displayprotectionandotherapplicationfieldswithhighrequirementsonglassquality.CSGhasestablishedlong-termandstablebusinesscooperationwithmanywell-knownprocessingenterprises.Theprofitlevelofthefloatglassbusinessisgenerallypositivelycorrelatedwiththelevelofrealestatecompletiondata,andisalsoaffectedbymultiplefactorssuchascurrentenergy,rawmaterialprices,productstructure,andenterprisemanagementlevel.Differentiatedglassproductshavehigheraddedvalueduetospecificapplicationscenarios,higherproductionprocessdifficulties,stabledemand,andrelativelyproactivepricingbymanufacturers.TheCompanyfocusesonimprovingmanagementefficiency,improvingthelevelofleanproductionofconventionalproducts,firmlyimplementingthedifferentiatedcompetitionstrategy,carefullycultivatinganddevelopingdifferentiatedproductmarkets,andcontinuouslyincreasingtheproportionofdifferentiatedproductsales,soastocontinuouslyconsolidateandenhancetheindustrycompetitivenessoftheCompany'sfloatglassbusiness.Inthefirsthalfof2022,thecompletionoftherealestateindustrydroppedsignificantlycomparedwiththesameperiodinrecentyears,thedomesticdownstreamarchitecturalglassmarketdemandsloweddowninstages,theproductionandsalesrateoffloatglassmanufacturersdeclined,andthepriceoffloatglassdeclined;atthesametime,affectedbyepidemiccontrol,RussiaUkraineconflict,inflationandotherfactors,thepricesofrawmaterialsandfuelshaverosesharply,andtheprofitleveloffloatglassdroppedsignificantlycomparedwiththepreviousyear.However,underthemacrobackgroundof"StableGrowth"ofthenationaleconomyandtherealizationof"DoubleCarbon"goals,thedemandforhigh-qualitydifferentiatedproductsandenergy-savingproductsremainsstable.Inthefieldofphotovoltaicglass,CSGhastakentheleadinenteringthefieldofphotovoltaicglassmanufacturinginChinasince2005.Basedonindependentresearchanddevelopment,theCompanyhasformedafullclosed-loopproductioncapacityfromphotovoltaicglassoriginalsheetproductiontodeepprocessing.IthastwophotovoltaicrolledglassoriginalsheetproductionlinesandcomplementaryphotovoltaicglassdeepprocessingproductionlinesinDongguanandWujiang,withanannualoutputofabout

430,000tonsofphotovoltaicrolledglassoriginalsheetsandaphotovoltaicglassdeepprocessingcapacityof72millionsquaremetersperyear,anditsproductscoverdeep-processingproductswithavarietyofthicknessesof2-4mm.Inthefirstquarterof2022,Dongguanphotovoltaicglassfurnacewasupgradedasplanned,andwasignitedinAugust2022.TheCompanyisfirmlyoptimisticaboutthelong-termdevelopmentofthephotovoltaicnewenergyindustry,seizesthegoldenopportunityofindustrialdevelopment,aimsatthefirstechelonoftheindustry,andmakesupfortheshortcomingsoftheGroup'sphotovoltaicglassbusinessproductioncapacityandlarge-scalelayout.TheCompanyisbuildingfourphotovoltaicglassproductionkilnsandcomplementaryprocessinglineswithadailymeltingcapacityof1,200tonsinFengyangandonephotovoltaicglassproductionlineandcomplementaryprocessinglinewithadailymeltingcapacityof1,200tonsinXianning.Amongthem,FengyangNo.1kilnhasbeenignitedinMay2022,andFengyangNo.2kilnhasbeenignitedinAugust2022,andtheconstructionofotherproductionlinesisprogressinginanorderlymannerasplanned.ThereleaseofproductioncapacitywillgreatlyenhancetheCompany'sindustrystatus.Inaddition,withtheapprovaloftheBoardofDirectors,theCompanyplanstobuildtwophotovoltaicglassproductionkilnsandcomplementaryprocessinglineswithadailymeltingcapacityof1,200tonsinBeihaiCity,GuangxiProvince.Currently,thepreparatoryworkfortheprojectisbeingcarriedoutinanorderlymanner.Atthesametime,theCompanyisstillactivelyseekingtofurtherexpandtheproductioncapacityofphotovoltaicglassinotherregionswithresourcesupportandindustrialchainsupport.Underthebackgroundofcarbonpeakingandcarbonneutrality,thephotovoltaicglassbusinesswillbecomethenewchampionbusinessofCSG.In2022,withthepromotionofdomesticdistributedphotovoltaics,large-scalewindpowerphotovoltaicbasesandphotovoltaicguaranteedgrid-connectedpolicies,aswellasthepromotionofcarbonneutralityplansdisclosedbycountriesaroundtheworld,theglobalinstalledcapacitywillmaintainarelativelyhighgrowthrate.AccordingtothestatisticsofChinaPhotovoltaicIndustryAssociation,fromJanuarytoJune2022,thedomesticmoduleoutputwas123.6GW,ayear-on-yearincreaseof54.1%,thedomesticphotovoltaicpowergenerationinstalledcapacitywas30.88GW,ayear-on-yearincreaseof137.4%;theexportvolumeofphotovoltaicmoduleswas78.6GW,ayear-on-yearincreaseof74.3%.Fromtheanalysisofthecurrentpolicyenvironmentandmarketdevelopmenttrend,photovoltaicpowergenerationhasabroadspacefordevelopmentinthefuture,andthedevelopmentoftheglobalmarketmayaccelerate.Althoughtheconcentratedreleaseofnewcapacityofphotovoltaicglassinrecentyearsmayleadtoaphasedmismatchofsupplyanddemandinthemarketandcausemarketpricefluctuations,withtherapiddevelopmentoftheglobalmarketandtheoptimizationandadjustmentofthedomesticindustrialstructure,theindustrywillstillreturntothetrackofhealthydevelopment.In2022,theCompanywillsparenoefforttopromotetheprojectconstruction,speedupthetechnologicaltransformationandupgradingoftheproductionline,focusonimprovingtheproductioncapacityof1.6-2mmultra-thinphotovoltaicglassandphotovoltaicglazedbackplateglassfordoubleglassmodules,followtheproductplanningandrouteadjustmentofmoduletechnologydevelopment,consolidatethecompetitiveadvantageoftheCompanyinthefieldofultra-thinphotovoltaicglass,strengthenthelong-termstrategiccooperationwithindustry-leadingenterprises,andfurtherenhancethemarketcompetitivenessofCSG'sphotovoltaicglass.

Architecturalglassbusiness

CSGisoneofthelargestsuppliersofhigh-gradeengineeringandarchitecturalglassinChinaandithasformedquality,serviceandcontinuousresearchanddevelopmentcapabilitiesthatmatchthebrand.TheCompanyhasbuiltsixenergy-savingglassprocessingbasesinTianjin,Dongguan,Xianning,Wujiang,ChengduandZhaoqing.Uptonow,theCompanyhasformedanannualproductioncapacityofover20millionsquaremetersforcoatedinsulatingglassandover45millionsquaremetersforcoatedglass.Inordertoseizethekeyopportunitiesforthedevelopmentofbuildingenergy-savingglassandsatisfythepeople'spursuitofabetterlife,CSGleveragesitsbrandadvantagestotaketheleadinimprovingthebusinesslayoutofarchitecturalglass.Atpresent,theproductioncapacityofZhaoqingBaseandTianjinExpansionProjectisgraduallybeingreleased,whichfurtherstrengthenstheabilityofCSG'sarchitecturalglasstomeettheneedsoftheconstructionofworld-classmega-cityclustersintheBeijing-Tianjin-Hebei,YangtzeRiverDelta,andGuangdong-HongKong-MacaoGreaterBayArea.Atthesametime,inlinewiththetrendofurbanconstructionextendingfurtherinland,theGroup'sBoardofDirectorsapprovedtheconstructionofXi'anArchitecturalGlassBase,HefeiEnergy-savingGlassIntelligentManufacturingIndustryBaseandXianningArchitecturalProductionLineReconstructionandExpansionProjectin

2021.Basedonthelocalmarketconditions,theCompanywillarrangefirst-levelorsecond-levelarchitecturalglassprocessingbasesthataresuitablefortheirscaleandneeds,andcontinuouslyimproveandstrengthenthemarketcompetitionandservicecapabilitiesofCSG’sarchitecturalglassbusiness.Atpresent,WujiangArchitecturalGlassSmartFactoryandXianningArchitecturalProductionLineReconstructionandExpansionProjectsarebeingimplementedasplanned,andareexpectedtobebasicallycompletedwithin2022.ConstructionoftheXi'anBaseandHefeiBaseProjectshasstartedinthefirsthalfof2022andisexpectedtobecompletedin2023.Asthenewprojectsaregraduallycompletedandputintooperation,theproductioncapacityofCSGarchitecturalglasswillbegraduallyreleased,andthemarketshareoftheproductswillbefurtherincreased.CSG'sarchitecturalglassbusinessadherestothecustomizedbusinessstrategyoftrinityoftechnicalservice,marketing,R&Dandmanufacturing,relyingonitsownmanufacturingandR&Dstrength,aswellasthemarketingandservicenetworkformeddomesticandoverseasoffices,tomeetthepersonalizedneedsofdomesticandforeigncustomersandconstructionprojects.In2017,CSG'slow-EcoatedglasswasawardedthetitleofSingleChampionProductbytheMinistryofIndustryandInformationTechnology,anditpassedthereviewagainin2020,whichfullyprovestheleadingpositionofCSG'sarchitecturalglassintheindustry.TheCompanyhastheworld'sleadingglassdeepprocessingequipmentandtestingequipment,anditsproductscoverallkindsofarchitecturalandconstructionglass.TheR&DandapplicationleveloftheCompany'scoatingtechnologykeepspacewiththeworld,andthehigh-endproducttechnologyisinternationallyleading.Theshadingandheatinsulationperformanceoftheproductisfurtherimproved,andtheenergy-savingcontributionhasbeenfurtherenhanced.AlldeepprocessingbasesoftheCompanyhavetheproductionandprocessingcapabilitiesoftriple-silverhigh-performanceenergy-savingglass.Underthebackgroundofthe"DoubleCarbon"goalandthenationalgreenandenergy-savingbuildingrequirements,themarketdemandfortriple-silverhasfurtherexpanded.AfteryearsofmarkettestingandrelyingontheCompany'sadvancedcoatingtechnology,itshighperformanceandstabilityhavebeenwellreceivedbythemarket,CSG’striple-silverproductshavebecomethebenchmarkinthedomesticthree-silverproductmarket,andhigh-qualityenergy-savingandenvironmentallyfriendlyLOW-Einsulatingglasscontinuestoleadthedomestichigh-endmarketshare.TheCompanyhasalwaysadheredtotheintelligenttransformationanddigitaltransformationasthekeyincrementofthedevelopmentofarchitecturalglassbusiness.Ithascontinuouslyinvestedandaccumulatedrichexperienceintheresearchofproductionautomation,intellectualization,informationtechnologyandequipment,andtheefficiencyimprovementofintelligentupgradingandtransformationoftraditionalequipment.Withtechnologicalprogressandprocessoptimization,theCompanyhasreducedproductionmanpowerconsumption,materialconsumptionandenergyconsumption,activelypromotingtheCompany'stransformationandupgradingtoachieveintensivemanufacturingandhigh-qualitydevelopment.TheCompany’squalitymanagementsystemforengineeringandarchitecturalglasshasbeenrespectivelyapprovedbyorganizationsofUKAOQCandAustraliaQAS.TheproductqualitywhichmeetsthenationalstandardsoftheUS,theUKandAustraliaenablesCSGhasanadvantageintheinternationaltenderingandbidding.Since1988,CSG'sengineersandtechnicianshavebeencontinuouslyparticipatingintheformulationandcompilationofvariousnationalstandardsandindustrystandards.Allkindsofhigh-qualityengineeringarchitecturalglassprovidedbytheCompanyarewidelyusedinlandmarkbuildingssuchasmajorcityCBDsandtransportationhubsathomeandabroad,whicharetoonumeroustomention.The2022BeijingWinterOlympics,whichattractedworldwideattention,accomplishedsuccessfully.ThekeynoteofthisWinterOlympicsis"GreenWinterOlympics".CSG’sGlassishonoredtobeselectedfortheconstructionofquiteafewrelatedvenuesfortheBeijingWinterOlympicswithitssafety,energysavingandhigh-endquality,includingNationalSpeedSkatingHall,NationalSkiJumpingCenter,ShougangSkiJumpingPlatform,BeijingOlympicVillageandmanyotherrepresentativeprojects.CSG’sproductsareonceagainstunninglydisplayedinfrontoftheworld,withtheprojectsusingCSG’sproductsappearedfrequentlyinthepast,suchasCapitalInternationalAirport,DaxingInternationalAirport,NationalConventionCenter,aswellastheprojectsinCapitalCBDArea,whichcontributedauniqueandbeautifullandscapetothewonderfulandextraordinaryOlympicGames.

ElectronicglassanddisplaybusinessElectronicglass

Aftermorethantenyearsofhardwork,CSGelectronicglasshasalwaysfocusedonincreasinginvestmentinresearchand

development,breakingthroughhigh-endmarketbarrierswithindependentintellectualpropertyrightsandindependentinnovation,andfirmlyfollowingthedevelopmentrouteofproductupgradesanditerationstoaccelerateimportsubstitution.ElectronicglasshasbecomeanotherCSGbrand.Atthesametime,theultra-thinelectronicglassisalsorecognizedbytheMinistryofIndustryandInformationTechnologyofthePeople'sRepublicofChinaasthe"IndividualChampionProductofManufacturingIndustry".Inthefirsthalfof2022,theCompany'selectronicglassbusinesscontinuestodevelop.Itsfoursubsidiaries,HebeiPanel,YichangPhotoelectric,QingyuanNewEnergy-SavingMaterialsandXianningPhotoelectriccontinuedtoactivelyimplementproductupgradingandmarketupgradingintheapplicationfieldsofintelligentelectronicterminals,touchcomponents,vehiclemounteddisplay,autoglass,industrialcontrolandcommercialdisplay,safe-guardfacilityandsmarthome,sothatthemarketshareandbrandinfluenceoftheCompany'smedium-aluminaandhigh-aluminaelectronicglassproductscouldimprovegreatly.Richproductstructure,reliabledeliveryguaranteeandstrongtechnicalinnovationhelptheCompany’selectronicglassbusinessmaintainitsdominantpositioninthefiercemarketcompetition.InMarch2021,inordertostrengthentheCompany'shigh-endmarketcompetitivenessinthefieldofultra-thinelectronicglassfortouchapplications,theCompany'sBoardofDirectorsapprovedHebeiPaneltoinvestinanewultra-thinelectronicglassproductionlineandcomplementaryR&Dcenterwithadailymeltingcapacityof110tons.Itisexpectedtobecompletedandputintooperationinthesecondhalfof2022.InDecember2021,theCompany'sBoardofDirectorsapprovedtheupgradeandrenovationprojectofQingyuanCSGPhaseI.Atpresent,theprojectisstillunderconstruction.Whenthenewprojectiscompletedandputintooperation,CSGelectronicglasswillfullycoverthefieldofelectronicglassproductsinhigh,mediumandlow-endapplicationscenarios,formingamoresolidmarketcompetitionfoundation.CSGhaslongbeencommittedtobecomingtheindustry'sleadingelectronicglassmaterialsolutionprovider,anditwillcontinuetodevelopglass-basedprotectivematerialswithhigherstrengthandcompetitivenessinthefieldoftouchdisplay,develophuman-computerinteractioninterfacematerialsmeetingtherequirementsofmaterialinterconnectioninthefieldsofsmarthome,vehicledisplayandadvancedmedical,anddeveloprevolutionaryalternativematerialsinthefieldsofnew-energyvehiclesandsecurity.DisplayInthefieldoftouchdisplay,CSGhasmasteredthethreeindustry-leadingtechnologiesofvacuummagnetronsputteringcoating,3A(Ag+Ar+AF)productprocessing,andyellowlightfinepatternforming,andhasacompleteindustrialchain.ThemainbusinessincludesITOconductiveglass,ITOconductivefilm,high-gradeAgglass,vehiclemountedTPsensorandvehiclemountedmulti-functionalcoverplate.InthetraditionaladvantageousbusinessofITOconductiveglassandITOconductivefilm,inthefirsthalfof2022,thecompanyactivelyrespondedtotheadverseimpactoftheexternalenvironmentandthepressureofindustrycompetitionthroughinternaldeepexplorationofpotentialandresearchanddevelopmentofhighvalue-addeddifferentiatedproductstrategiesinnewapplicationfields,andtheoverallproductionandsalesvolumeremainedstable.Inthefieldofhigh-endAgglassbusiness,inthefirsthalfof2022,theperformanceindicatorsoftheCompany'sproductswereleadingintheindustry,andtheproductionandsalesvolumereachedarecordhigh.Itismass-producedandsuppliedtointernationallyfamouscustomers,mainlyusedinhigh-endvehicledisplayscreens.Inthetwomajorbusinessareasofvehiclemountedmulti-functional3AcoverplateandvehiclemountedTPsensor,theCompanyhasindirectlysuppliedtodomesticandforeignwell-knownautomobilebrandterminalmanufacturersthroughdownstreamcustomers.Itisexpectedthatinthesecondhalfof2022,theproductionandsalesvolumewillincrease,becominganewgrowthpointoftheCompany.

Solarenergyandotherindustries

CSGisoneofenterpriseswhichfirstlyenterthefieldofphotovoltaicproductmanufacturinginChina.Aftermorethantenyearsofconstruction,operationandtechnologicaltransformationandupgrading,CSGhascreatedacompleteindustrialchaincoveringtheoperationofhigh-puritycrystallinesiliconmaterials,siliconwafers,cells,modulesandphotovoltaicpowerstations.ThebusinessstructureoftheentireindustrychainenablestheCompanytohaveacertainabilitytoresistrisks,besensitivetotheindustry,andbeabletoidentifyandrespondquicklytomarketchangesintheindustry.Afteryearsoftechnicalaccumulation,CSG'sphotovoltaic

sectorhasbuiltthreenational-levelscientificresearchandtechnologyplatforms(theNationalDevelopmentandReformCommissionrecognizedthe"NationalandLocalJointEngineeringLaboratoryforSemiconductorSiliconMaterialPreparationTechnology","NationalEnterpriseTechnologyCenter"and"CNASAccreditedLaboratory"."),sevenprovincialscientificresearchandtechnologyplatforms("SemiconductorSiliconMaterialPreparationTechnologyHubeiEngineeringLaboratory"and"HubeiEnterpriseTechnologyCenter";theProvincialDepartmentofScienceandTechnologyrecognized"HubeiSiliconMaterialEngineeringTechnologyResearchCenter","HubeiProvinceSiliconMaterialEngineeringTechnologyResearchCenter"SemiconductorSiliconMaterialTechnologyInternationalCooperationBase","HubeiSiliconMaterialEnterprise-SchoolJointInnovationCenter","GuangdongSolarPhotovoltaicCellandComponentEngineeringTechnologyResearchCenter","GuangdongEnterpriseTechnologyCenter"),won7nationalandlocalscienceandtechnologyprogressawards,143patents,including53inventions,21scientificandtechnologicalachievements,andledorparticipatedintheformulationof23industrialstandards.In2022,theglobalterminalinstallationdemandexceededexpectations,whiletheupstreamhigh-puritycrystallinesiliconmaterialproductioncapacitywaslimited,andthesevererealityofinsufficientsupplyranthroughthefirsthalfof2022.YichangCSGsiliconmaterialsCo.,Ltd.,asubsidiaryofthesolarenergybusinessdepartmentofCSG,fullyimplementedthestrategicdecisionsanddeploymentoftheGroup'smanagement,unswervinglyimplementedthetechnicaltransformationandresumptionofhigh-puritycrystallinesiliconproductionlinesandthetransformationandupgradingofsiliconwaferbusiness,andachievedgoodeconomicbenefits.Atpresent,thesolarenergyindustryreliesonyearsoftechnicalprecipitationandfirst-classindustrialtalentteam.Yichangproductionbasehasahigh-puritycrystallinesiliconproductioncapacityof10,000tons/year,siliconwafers2.2GW/year,andingotpurificationofmonocrystallinematerials7200tons/year;Dongguanproductionbasehasaproductioncapacityof0.6GW/yearforcellsand0.6GW/yearformodules;ShenzhenPhotovoltaicowns139MWofphotovoltaicpowerplants.Asapubliclistedcompanywithextensivesocialinfluenceandsenseofsocialresponsibility,CSGhasalwaysadheredtotheconceptsofenergyconservation,environmentalprotectionandpeople-oriented,andcontributedtotheconstructionofanenvironment-friendly,resource-savingandsustainablehumanfuture.

(II)OverviewofoperationduringthereportperiodInrecentyears,CSGGrouphasmadeaforward-lookinglayout,firmlypromotedtheadjustmentofbusinessstructureduringdevelopment,strengthenedthecompetitiveadvantageoftraditionalenergy-savingbuildingmaterials,andacceleratedthedevelopmentofnewenergyandnewmaterialindustrysectors.Inthefirsthalfof2022,theCompanyachievedoperatingincomeofRMB6.519billion,ayear-on-yeardecreaseof1.45%;netprofitofRMB1.009billion,ayear-on-yeardecreaseof26.33%;netprofitattributabletoshareholdersofthelistedcompanywasRMB1.001billion,ayear-on-yeardecreaseof25.98%.Glassbusinesssegment:

Floatglass:inthefirsthalfof2022,thedomesticdownstreamarchitecturalglassmarketdemandsloweddowninstages,andthepriceoffloatglassfell.Atthesametime,duetofactorssuchasrisingrawandfuelprices,theproductioncostwasincreased,andtheprofitabilityoffloatglassfell.Inthefaceofthesevereexternalenvironment,thecompanyfirmlyfollowsthehigh-enddifferentiatedproductline:expandingtheproductioncapacityofultra-clearglass,furtherincreasingtheproductionandsales,creatingaseriesofhigh-endbrandsofCSGultra-clear"BlueDiamond",andbecomingaleaderintheindustrysegment;Theproportionofhighvalue-addeddifferentiatedproductscontinuedtoincrease,maintainingaleadingpositioninthemarketsegmentofhigh-gradefloatglass.Coordinatingandorganizingtheprocurementofstrategicreservesofbulkrawmaterialstoeffectivelyhedgethepressureofrisingprocurementcosts;establishingamineralresourcesmanagementcentertocoordinatetheimplementationofthestrategictaskofexpandingmineralresourcesreserves;strengtheningtheleancontroloftheentireproductionprocess,andcontinuetoreducecostsandincreaseefficiency.Inthefirsthalfof2022,therevenueofthefloatglassbusinessdecreasedby20.66%comparedwiththesameperiodofthepreviousyear,andthenetprofitdecreasedby64.34%.Photovoltaicglass:continuetomaintaintheindustry-leadingproductioncapacity,qualityandcomprehensivemanufacturingyieldofultra-thinphotovoltaicglassproductsbelow2mm.Inthefirsthalfof2022,theglobalphotovoltaicmarketwasgenerallygood.The

growthofdomesticandoverseasdemandforphotovoltaicmodulesformedanincrementaldemandforphotovoltaicglass,andthepriceofphotovoltaicglassrosetoacertainextent.However,duetothecentralizedinvestmentofnewcapacity,thereweresignsofsupplyanddemandmismatchintheshortterm.TheCompanyisfirmlyoptimisticaboutthelong-termdevelopmentofthephotovoltaicnewenergyindustry,acceleratingtheconstructionofnewphotovoltaicglassprojectsinFengyangandXianning,andatthesametime,steppinguptheupgradingandtransformationofexistingproductionlinestobettermeettheneedsofcustomersandfuturemarketcompetition.TheexpansionofphotovoltaicglassproductioncapacitywillgreatlyenhancethemarketcompetitivenessoftheCompany'sphotovoltaicglass.Inordertoadapttochangesinbusinessscale,theCompanyhasestablishedaphotovoltaicglassmarketingcentertocoordinatetheGroup'sphotovoltaicglassmarketingbusinessandeffectivelyimprovetheCompany'smanagementefficiency.Inthefirsthalfof2022,duetotheupgradingandtransformationofthephotovoltaicglassproductionlineofDongguanCompany,thebusinessincomeandprofitlevelofthephotovoltaicglasssegmentdecreasedcomparedwiththesameperiodofthepreviousyear,ofwhichtheincomedecreasedby43.66%andthenetprofitdecreasedby101.18%.Architecturalglass:isthegoldenbrandofCSG,andithasformedquality,serviceandcontinuousR&Dcapabilitiesthatmatchthebrand.FocusingontheCountry'simprovementofbuildingenergy-savingstandardsandhigh-risebuildingsafetystandards,itstrengthensbrandbuildingandadherestothecustomizedbusinessstrategyoftrinityoftechnicalservice,marketingandR&Dandmanufacturing,tomeetthepersonalizedneedsofdomesticandforeigncustomersandconstructionprojects.Themarketshareinthedomestichigh-endconstructionmarketcontinuestorise,andthemarketscaleandprofitabilityinthefieldofdeepprocessinginthesameindustrymaintainaleadingposition.Affectedbythespreadofthedomesticepidemicinthefirsthalfof2022,thepressureonsalesanddeliveryincreasedyear-on-year,andthepressureondomesticrealestatecompaniestocollectfinancingincreased.Inordertoreduceoperationalrisks,theCompanygraduallyincreasedriskmanagementandcontrolrequirements,andtheyear-on-yearincreaseinoperatingincomewaslimited.However,byrefiningthemarketlayout,theCompanycontinuedtoincreasethesigningofhigh-qualityprojects,theordercompoundingdegreeandtheproportionoftriple-silverproductsincreasedsignificantlyyear-on-year,whileincreasingtheproportionofhigh-qualitysmallandmedium-sizedorderssuchasshort-flat-fastorders,etc.,andincreasedcooperationinlivelihoodsecurityprojects.Continueto"ReduceCostsandIncreaseEfficiency"andrefineoperations,relyingontheadvantagesoftheGroup'sindustrialchain,operatingprofitmaintainsasteadygrowthtrend.Focusingonthefuture,theCompanyseizesthehistoricopportunityofspeedingupgreenbuildingconstruction,acceleratestheconstructionofnewbases,improvestheautomationandinformatizationlevelofproductionlines,continuouslyimprovesequipmentproductionefficiency,andtakestheleadinfutureindustrycompetition.Atpresent,theproductioncapacityofZhaoqingBaseandTianjinExpansionProjectisgraduallybeingreleased;WujiangArchitecturalGlassIntelligentFactoryandXianningArchitecturalProductionLineReconstructionandExpansionProjectarebeingimplementedasplannedandareexpectedtobebasicallycompletedin2022.TheconstructionofHefeienergy-savingglassintelligentmanufacturingindustrybaseandXi'anbasehasbeenstartedandisexpectedtobeputintousein2023.Withthegradualcompletionandlaunchofnewproductioncapacity,theproductservicecapabilityandmarketsharewillcontinuetoincrease,andthegoldensignboardofCSGarchitecturalglasswillbecomebrighterandbrighter.Inthefirsthalfof2022,thebusinessrevenueoftheengineeringglasssegmentincreasedby1.11%comparedwiththesameperiodofthepreviousyear,andthenetprofitincreasedby216.17%.ElectronicglassanddisplaybusinesssegmentFocusingonincreasinginvestmentinresearchanddevelopment,breakingthroughhigh-endmarketbarrierswithindependentintellectualpropertyrightsandindependentinnovation,andfirmlyfollowingthedevelopmentrouteofproductupgradesanditerationstoaccelerateimportsubstitution,electronicglasshasbecomeanotherchampionbusinessofCSG.Inthefirsthalfof2022,theCompany'shighaluminumsecondgeneration(KK6-P)lithiumaluminosilicateelectronicglassproductscontinuedtoexpandthemarketofnewcustomers,andsuccessfullyequippedOLEDscreenstoachieveabreakthroughinhigh-endscreenapplications,markingthatCSG'selectronicglassbusinesshasfirmlyestablishedthesupplychainsystemofdomestichigh-endcustomers.Atthesametime,theCompanycontinuedtopromoteproducttechnologyupgrading,developednewproductsforwindowglassofnewenergyvehicles,andsuccessfullypassedcustomercertification.Itisexpectedtoachievemassproductionandshipmentinthesecondhalfof2022.Thefuturemarketisworthlookingforwardto.TheCompanycontinuedtostrengthentheresearchanddevelopmentof

thethirdgenerationofhigh-aluminum,andachievedgoodresultsinend-customerverification.Inaddition,QingyuanCSGPhaseII"OneKilnandTwoLines"project,whichwastransferredtocommercialoperationattheendof2020,isoperatingwell,enhancingtheoverallprofitabilityofelectronicglass,andfurtherconsolidatingandstrengtheningCSG'scompetitiveadvantageinthedomesticelectronicglassfield.Inthefirsthalfof2022,duetotheimpactofthe"Epidemic"andthegeneraleconomicenvironment,theterminalmarketdemandshrank,resultinginadeclineintheperformanceoftheCompany'selectricdisplaysegment.Inthefirsthalfof2022,theElectricDisplaysegmentachievedarevenueofRMB810million,ayear-on-yeardecreaseof8.06%,andanetprofitofRMB112million,ayear-on-yeardecreaseof50.15%.SolarandotherbusinesssegmentsThemacrobackgroundoftheglobalconsensuson"GreenDevelopment"andthetimetableofthedomesticdouble-carbontargetjointlypromotethephotovoltaicindustrytoenteranewhigh-speeddevelopmentperiodaftercomprehensivelyusheringintheaffordableInternetaccess.Onthebasisofobjectiveanalysisofitsownindustrialadvantagesanddisadvantages,overallconsiderationofthemarketenvironment,industrialdevelopmenttrendandtheGroup'soverallindustrialdevelopmentplan,theCompanyplanstoimplementtheprojectof50,000tonhigh-puritycrystallinesiliconinHaixiPrefecture,QinghaiProvince,tofurtherexpandthesolarenergybusinessandenhancetheGroup'soverallcompetitiveness.Atpresent,theCompany'shigh-puritycrystallinesiliconadoptstwopathsofstrategiccooperationwithdownstreamcooperatorsintheindustrychain,signinglong-termordersandflexiblesalestoreduceoperatingrisksandensurestableandsustainablebusinessdevelopment.Continuouslyoptimizingtheprocessinproductiontocontinuouslyreducecostandincreaseefficiency.Forexample,thedifferentialpressurecouplingtechnologyoffourdistillationcolumnsreducestheunitconsumptionofsteambymorethan20%;theprocessimprovementandcontroltechnologyoptimizationofthecomprehensiveutilizationofmaterialshaveincreasedthechlorosilanerecoveryratebymorethan38%,andgreatlyreducedthealkaliconsumptionandwasteresiduedischarge.Aftertheresumptionofproduction,withacombinationoftechnicalmeasuresandproductionmanagementupgrades,theproductioncapacitybrokearecordhigh,ofwhichthethirdlevelofnationalstandardelectronicsaccountedfornearly95%,whilethesiliconunitconsumption,comprehensiveelectricityunitconsumption,andsteamunitconsumptionallhitrecordlows.Aftertheresumptionofproduction,high-puritycrystallinesiliconquicklyenteredthefirst-tiermanufacturersintheindustry,suchasTrina,Jinko,CanadianSolar,Gaojing,andShuangliangECO-Energy,relyingonproductqualityandmarketreputation.Theelectronicgradehigh-puritycrystallinesiliconcompactmaterialhasmettherequirementsofN-typebatterycustomers,andthemarketcompetitivenessisprominent,whichbringsgreatconfidencetotheconstructionoftheprojectofQinghai50,000-tonhigh-puritycrystallinesilicon.Atpresent,theprojectofQinghai50,000-tonhigh-puritycrystallinesiliconhascompletedsiteselectionanalysis,technicalplan,organizationcapacity,scheduleplanning,investmentestimation,financialevaluation,etc.Afterseveralroundsofdiscussions,thetop-leveldesignhasbeenpreliminarilycompleted.Inthesiliconwaferbusiness,onthebasisofconsolidatingthecustomerbaseofpolycrystallinesiliconwaferproducts,itadoptsdiversifiedoperations,activelytransformsthemainstreammarketwiththemonocrystallineroute,makesfulluseofitsownadvantages,andenhancestheabilityofassetcreation.Inthefirsthalfof2022,theprofitabilityofthewaferbusinessimprovedsignificantly,whichbenefitedfromthesuccessfulcaptureoftheIndianmarketbypolycrystallinesiliconwaferproducts,thetransformationofmonocrystallinewafersandpreliminaryresultsachievedbyingotpurificationsinglecrystalmaterials,amongwhich,inthefirsthalfof2022,atotalof10.82millionmonocrystallinesiliconwafersweresold,and802tonsofingotrefiningsinglecrystalmaterialswereused.Thetransformationofsiliconwafertosinglecrystalisinlinewiththelong-termdevelopmentstrategyoftheCompany.Intermsofmarketstrategy,monocrystallinesiliconwafershavesuccessfullyenteredtheTOP5batterymanufacturers(Aixu,Jietai,Jinko,etc.).Themodulebusinesshascompletedtheconstructionofa500MWhigh-power,large-sizemoduleproductionlineandhasbeenputintoproductionsmoothly,greatlyimprovingtheabilitytoobtainorders.Thepowerstationbusinessadded7.2MWtothegridinthefirsthalfof2022,withatotalof139MWofphotovoltaicpowerstations.Inthefirsthalfof2022,theCompany'ssolarandotherbusinessrevenuetotaledRMB1.434billion,ayear-on-yearincreaseof

225.49%,anditsnetprofitwasRMB282million,asignificantyear-on-yearincrease.

II.CoreCompetitivenessAnalysis

CSG,oneofthemostcompetitiveandinfluentiallarge-scaleenterprisesinChina'sglassindustryandnewenergyindustry,iscommittedtothedevelopmentofenergyconservationrenewable,andnewmaterialindustry.Afternearly40yearsofdevelopmentandaccumulation,theCompanyhasgraduallyformedacomprehensivecompetitiveadvantageintermsofproductsandbrands,technologyresearchanddevelopment,industrialchainandlayout,talentteam,andgreendevelopment.

1.Productandbrandadvantages"CSG"isafamousbrandofdomesticenergy-savingglass,ultra-thinelectronicglass,displayandsolarphotovoltaicproducts.Itsproductsandtechnologyarewell-knownathomeandabroad.Thetrademarks"南玻"and"SG"heldbytheCompanyareboth"FamousTrademarkofChina".TheCompanyhasbeenlistedinthe"Top50BuildingMaterialsEnterprisesinChina","Top100IndustryLeadersinShenzhen"and"PreferredBrandofArchitecturalGlass"inDoorandWindowCurtainWallIndustryformanyyears.In2018,"CSG"brandwasrecognizedbytheUnitedNationsIndustrialDevelopmentOrganizationasthefourthbatchof"InternationalReputationBrand".CSG’slow-Ecoatedglassandultra-thinelectronicglasswereawardedthetitleofSingleChampionProductbytheMinistryofIndustryandInformationTechnology,anditistheonlymanufacturerinthedomesticglassindustrythathastwosinglechampionproductsatthesametime.

2.TechnologyresearchanddevelopmentadvantageTheCompanyhasalwaysattachedimportancetotechnologyresearchanddevelopmentsinceitsestablishment,andhastakenindependentR&DasitsfoundationbywhichleadingthedevelopmentofChina'sglassindustry.AsofJune30,2022,theCompanyhashadatotalof19nationalhigh-techEnterprises,2national-levelmanufacturingsinglechampionproducts,1national-levelengineeringlaboratory,1national-levelenterprisetechnologycenter,3nationalintellectualpropertyadvantageenterprises,5national-levelspecializedandsophisticatedenterprises,1NationalScienceandTechnologyProgressAward,2provincial-levelacademicianworkstations,1provincial-leveldoctoralworkstation,12provincial-levelenterprisetechnologycenters,6provincial-levelengineeringtechnologyresearchcenters,4provincial-levelintellectualpropertydemonstrationconstructionenterprises,6provincial-levelspecializedandsophisticatedenterprises,7provincial-levelscienceandtechnologylittlegiants,1provincial-levelgovernmentqualityaward,9provincial-levelscientificandtechnologicalprogressawards,3provincial-levelpatentawards.AsofJune30,2022,theCompanyhadappliedforatotalof2,470patents,including993inventions,1,468utilitymodelpatents,and9designs.TheCompanyhadbeenaccumulativelyauthorized1,811,including337inventions,1,465utilitymodels,and9designs.

3.IndustrialchainandlayoutadvantagesTheCompanyhasthreecompleteindustrialchainsofenergy-savingglass,electronicglassanddisplay,andsolarphotovoltaic.Withthecontinuousimprovementofthetechnologicallevelofeachlinkoftheindustrialchain,theindustrialadvantageisobvious.Atthesametime,theCompanypossessesacompleteindustrylayout.ThesixmajorproductionbasesarelocatedinthePearlRiverDeltainSouthChina,theYangtzeRiverDeltainEastChina,theChengdu-ChongqingregioninSouthwestChina,Beijing-Tianjin-HebeiregioninNorthChina,andtheHubeiregioninCentralChina.

4.TalentteamadvantageTheadvantageoftheCompany’stalentteamismainlyreflectedintwoaspects:Ontheonehand,theCompanyhasestablishedastrongR&DteamandR&Dsystem.Throughtheconstructionofthecoretechnicalteam,continuousR&Dinvestment,andabundanttechnicalreserves,ithasbuiltupimportanttechnologicalinnovationsupportfortheCompany’sstrategy.Meanwhile,itestablishesIndustry-University-Researchcooperation,activelycooperatingwithdomesticcollegesanduniversitieswhichareinadvantagein

silicatematerialsindustry,toacceleratethetransformationofscientificresearchresults,andtostrengthenbasicresearch;ontheotherhand,anexcellentandstablemanagementteamisoneofthemostfundamentalguaranteesfortheCompany’srapidandstabledevelopment.TheCompanyhasformedagoodechelontrainingmechanismforprofessionalmanagers.Atpresent,theCompany'sseniormanagementteamhascomparativeadvantagesintermsofacademicbackground,professionalqualities,knowledgereserves,managementconceptsandexperience.

5.GreendevelopmentadvantageTheCompanyprospectivelychoosestheenterprisedevelopmentpathofenvironmentalprotectionandgreendevelopment.Environmentalprotectionisthelifelineofthesurvivalanddevelopmentofglassenterprisesandtheconcentratedembodimentofcorporatesocialresponsibilityinhighenergyconsumingindustries.Asanenvironment-friendlyandresource-savingenterprise,CSGtooktheleadintheindustrytousenaturalgasasfuelinallfurnaceproductionlinesasearlyasmorethantenyearsago,andatthesametimetooktheleadintheindustrytoadoptwasteheatpowergeneration,distributedphotovoltaicpowergenerationandothermethodstoachievecomprehensiveenergyutilization,andadoptcomprehensiveexhaustgastreatmentsuchasdesulfurization,denitrationanddustremovaltoachieveultra-lowemission,whichisfarlowerthanthenationalstandardpollutantemissionpermissionvalue.Promotedbythegoalof"CarbonPeakingandCarbonNeutrality"andthecontinuoustighteningofenvironmentalprotectionpolicies,theCompany,asapioneerinthegreendevelopmentoftheindustry,haswonabroaddevelopmentspaceforitself.

III.Mainbusinessanalysis

OverviewPleaserefertotherelevantcontentof“I.MainbusinessoftheCompanyinthereportperiod”.Year-on-yearchangesofmainfinancialdata

Unit:RMB

Majorchangesonprofitcompositionorprofitresourcesinthereportperiod

□Applicable√NotapplicableTherewasnomajorchangeintheCompany'sprofitcompositionorprofitresourcesduringthereportperiod.Compositionofoperatingincome

Unit:RMB

Listoftheindustries,productsorregionsexceed10%oftheoperatingincomeoroperatingprofitsoftheCompany

√Applicable□Notapplicable

Unit:RMB

UnderthecircumstancesthatthestatisticalstandardsfortheCompany’smainbusinessdataadjustedinthereportperiod,theCompany'smainbusinessdataintherecentyeariscalculatedbasedonadjustedstatisticalstandardsattheendofthereportperiod

□Applicable√NotapplicableIV.Non-corebusinessanalysis

√Applicable□Notapplicable

Unit:RMB

V.Assetsandliabilities

1.Significantchangesinassetscomposition

Unit:RMB

2.Mainoverseasassets

□Applicable√Notapplicable

3.Assetsandliabilitiesatfairvalue

√Applicable□Notapplicable

Unit:RMB

Otherchanges:nilDuringthereportperiod,whetherthecompany’smainassetmeasurementattributeschangedsignificantlyornot

□Yes√No

4.Limitedassetrightsasoftheendofthereportperiod

Unit:RMB

VI.Investmentanalysis

1.Overallsituation

√Applicable□Notapplicable

2.Themajorequityinvestmentobtainedinthereportperiod

□Applicable√Notapplicable

3.Themajorongoingnon-equityinvestmentinthereportperiod

√Applicable□Notapplicable

Unit:RMB

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√NotapplicableTherewasnosecuritiesinvestmentduringthereportperiod.

(2)Derivativeinvestment

□Applicable√NotapplicableTherewasnoderivativeinvestmentduringthereportperiod.

5.Useofraisedfund

□Applicable√NotapplicableTherewasnouseofraisedfundduringthereportperiod.

VII.Saleofmajorassetsandequity

1.Saleofmajorassets

□Applicable√NotapplicableTheCompanydidnotsellmajorassetsduringthereportingperiod.

2.Saleofmajorequity

□Applicable√Notapplicable

VIII.Analysisofmainsubsidiariesandjoint-stockcompanies

√Applicable□NotapplicableParticularaboutmainsubsidiariesandjoint-stockcompanieswhichhaveinfluenceontheCompany'snetprofitbyover10%

Unit:RMB

Particularsaboutsubsidiariesobtainedordisposedinreportperiod

□Applicable√Notapplicable

IX.StructuredmainbodiescontrolledbytheCompany

□Applicable√Notapplicable

X.RiskstheCompanyfacesandcountermeasures

In2022,inthefaceof“NewNormal”ofdomesticeconomicdevelopmentandthetaskofbuildinga“CenturyCSG”,theCompanywillfacethefollowingrisksandchallenges:

①Theepidemicsituationathomeandabroadandtheinternationalpoliticalenvironmentarestillfacingmanyuncertainties.Affectedbytherepeatedoutbreaksoftheepidemicandthecomplicatedinternationalpoliticalenvironment,thedomesticeconomystillfacesmanychallengesanduncertainties.Inthesecondhalfof2022,theCompanywillcontinuetonormalizeepidemicpreventionandcontrol,strengthenitsattentiontothemarket,timelyadjustthestrategyaccordingtomarketchanges,andstrivetoachievetheannualcoreworkobjectivesthroughsteadyoperation.

②Theglassindustryisfacingthepressureoffiercecompetitionforsimilarproducts,risingrawmaterialsandfuelsandrisinglaborcosts.Thefloatglassindustryisfacingthepressureofastagedslowdowninthedownstreamarchitecturalglassmarketdemand;thephotovoltaicglassindustryisfacingthepressureofshort-termmismatchbetweensupplyanddemandandfluctuationsinforeignsituations.Theelectronicglassanddisplaydeviceindustryisfacingtheriskofacceleratingtheupgradingofmaterialtechnologyduetothecontinuousandrapiditerativeupgradingofdownstreamapplicationscenarios;inthesecondhalfof2022,withthesuccessivecommissioningofnewhigh-puritycrystallinesiliconproductioncapacityandthereleaseofproductioncapacity,thedownwardpotentialofhigh-puritycrystallinesiliconpriceswillincrease;theoverallimbalanceofthesolarenergysupplychainisdifficulttobreakintheshortterm,andthepriceofupstreamlinksisoperatingatarelativelyhighlevel,whichputspressureonthecostofmid-streamanddownstreambusiness;inordertodealwiththeaboverisks,theCompanywilltakethefollowingmeasures:

A.Intheflatglasssegment,theCompanywillimproveprofitabilityandenhanceindustrycompetitivenessthroughcontinuousleanmanagementanddifferentiatedoperations,productstructureoptimization,etc.B.Inthearchitecturalglasssegment,theCompanywillacceleratethepaceofdigital,networkedandintelligenttransformationofthe

manufacturingindustry,andreduceproductionmanpower,materialandenergyconsumption,Strengthenthedevelopmentofhigh-endmarketsandoverseasmarkets,activelyrespondtomarketchanges,continuetodeepenthemarketandrefinethemarketlayout,increasenewproductsandtheapplicationofnewtechnologies,improveservicecapabilities,andgivefullplaytoquality,technologyandbrandadvantages,meanwhile,carryoutindustrialchainextensionandmaintainthecompany'sdominantpositionintheindustry.C.Inthesolarenergysegment,theCompanywillstrengthentheintegrationofresourcesinthewholeindustrialchain,increaseR&Dinvestment,strengthenoperationmanagement,andmaintainenterprisecompetitivenessinthemarketsegmentationfield;paycloseattentiontomarketchanges,vigorouslycarryoutcostreductionandefficiencyincreaseactivities,implementenergy-savingandconsumptionreductionmeasures,timelyupgradeandreplaceequipment,improveproductionefficiencyandensuretheCompany'sbenefits;expandtheindustrialscaleandincreasethemarketsharebyinvestinginnewproductionlines.D.Intheelectronicglassanddisplaysegment,theCompanywillincreasetheresearchanddevelopmentofnewtechnologiesandnewproducts,maintaintheleadingedgeoftheindustrytechnology,andfurtherstrengthenthedevelopmentoftheterminalmarkettoimprovetheindustrialprofitability.③Riskoffluctuationofforeignexchangerate:Atpresent,nearly7.79%ofthesalesrevenueoftheCompanyisfromoverseas,inthefuture,theCompanywillfurtherdevelopoverseasbusiness,andtherefore,thefluctuationofexchangeratewillbringcertainrisktotheoperationoftheCompany.Tocopewithsuchrisk,theCompanywillsettleexchangeintimeandusesafeandeffectiveriskevadinginstrumentandproducttorelativelylockexchangerateandreducetheriskcausedbyfluctuationofexchangerate.

SectionIV.CorporateGovernance

I.Particularsaboutannualgeneralmeetingandextraordinarygeneralmeetingheldinthereportperiod

1.ParticularsaboutShareholders'GeneralMeetinginthereportperiod

2.Extraordinarygeneralmeetingwhichisrequestedtoconvenebythepreferredshareholderswhohaveresumedthevotingright

□Applicable√Notapplicable

II.Changesindirectors,supervisorsandseniormanagementofthecompany

√Applicable□Notapplicable

III.Profitdistributionandconversionofcapitalreservesintoequitycapitalinthereportperiod

□Applicable√NotapplicableTheCompanyhasnoplansofcashdividenddistribution,bonussharesbeingsentorconvertingcapitalreserveintosharecapital.

IV.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√NotapplicableDuringthereportperiod,theCompanyhadnoequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresandtheirimplementation.

SectionV.EnvironmentandsocialresponsibilityI.Majorenvironmentalissues

Whetherthelistedcompanyanditssubsidiariesbelongtothekeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment

√Yes□NoTheCompanyneedstocomplywiththedisclosurerequirementsofnon-metalbuildingmaterialsrelatedindustriesin"ShenzhenStockExchangeListedCompaniesSelf-disciplineSupervisionGuideNo.3-IndustryInformationDisclosure"EnvironmentalprotectionrelatedpoliciesandindustrystandardsTheCompanyimplementsthe"EnvironmentalProtectionLawofthePeople'sRepublicofChina","theLawofthePeople'sRepublicofChinaonthePreventionandControlofAirPollution",the"LawofthePeople'sRepublicofChinaonthePreventionandControlofWaterPollution",the"LawofthePeople'sRepublicofChinaonthePreventionandControlofNoisePollution",andthe"EnvironmentalProtectionTaxLawofthePeople'sRepublicofChina"andotherrelevantenvironmentalprotectionlawsandregulations,andimplementsthe"FlatGlassIndustryAirPollutantEmissionStandard","ElectronicGlassWorkingAirPollutantEmissionStandard","AirPollutantComprehensiveEmissionStandard","SewageComprehensiveEmissionStandard","EnvironmentalNoiseEmissionStandardsattheBoundaryofIndustrialEnterprises"andothernational,industryandlocalpollutantdischargestandards.AdministrativelicenseforenvironmentalprotectionTheconstructionprojectsofeachsubsidiarycarriedoutenvironmentalimpactassessmentworkandobtainEIAapprovalinstrictaccordancewiththerequirementsofthe"EnvironmentImpactAssessmentLawofthePeople'sRepublicofChina"andthe"CatalogueofClassifiedManagementofEnvironmentalImpactAssessmentofConstructionProjects".Duringtheconstructionoftheproject,theconstructionofpollutionpreventionandcontrolfacilitiesshallbecarriedoutinstrictaccordancewiththerequirementsoftheproject"ThreeSimultaneous"andputintoproductionanduseatthesametimeasthemainproject.Duringthetrialproductionperiod,theinspectionandacceptanceshallbeorganizedinaccordancewiththerelevantregulationsonenvironmentalprotectionacceptanceofthecompletionoftheconstructionprojectinordertoensurethattheconstructionprojectcompletestheinspectionandacceptanceworkbeforeitisofficiallyputintooperation.Allsubsidiarieshaveobtainedthepollutantdischargepermitandarewithinthevalidityperiod,andregularlysubmittheimplementationreportofpollutantdischargepermit.Industrialemissionstandardsandspecificconditionsofpollutantemissioninvolvedinproductionandoperationactivities

TreatmentofpollutantsAllsubsidiarieshavebuiltpollutionpreventionandcontrolfacilitiesinaccordancewiththeenvironmentalimpactassessmentdocumentsofconstructionprojectsandrelevantspecifications,andadoptedairpollutioncontrolprocesssuchaselectrostaticprecipitator+SCRdenitrification+semi-drydesulfurization+bagdustremoval,ceramicfiltercartridgedesulfurization,denitrificationanddustremovalintegration,bagdustremovalandwatertreatmentprocesssuchasneutralization+precipitation,fluidizedbed,andbiologicaloxidation,forwhichthetechnologiesusedareallinlinewiththerequirementsofthe"GuidelinesforFeasibleTechnologiesforPollutionPreventionandControlinGlassManufacturingIndustry"andotherdocuments.Inthefirsthalfof2022,thepollutioncontrolfacilitieswereingoodoperationandthepollutantsweredischargedstablyuptothestandard.Theairpollutantemissionconcentrationsofmostofthesubsidiarieswerelowerthan50%oftheemissionstandardandenjoyedthepreferentialpolicyofhalvingenvironmentaltax.Thepollutantemissionsofmanysubsidiariesreachedandimplementedlocalultra-lowemissionstandards.Environmentalself-monitoringschemeThesubsidiarieshavebuiltandoperatedon-linemonitoringdevicesforwastewaterandexhaustgasinaccordancewithnationallawsandregulations,environmentalimpactassessmentdocumentsofconstructionprojectsandtherequirementsoftheirreplies,regularlycarriedoutcomparisonandreviewoftheeffectivenessofon-linemonitoringfacilities,andentrustedathird-partyunittocarryoutmanualenvironmentalmonitoringtocomprehensivelymonitorthepollutantdischarge.Themonitoringfrequencyisimplementedinaccordancewithrelevantmonitoringtechnicalguidelinesorpollutantdischargepermits.EmergencyresponseplansystemofenvironmentincidentInaccordancewiththenationalrequirements,allsubsidiariespreparedemergencyenvironmentalresponseplanforenvironmentincident,organizedandcarriedoutexpertevaluationandfiledwiththelocalenvironmentalprotectiondepartmentasrequired,andconductedtheemergencydrillagainstenvironmentalincidentsasplanned.Andtherewerenomajorenvironmentalincidents

occurredinthefirsthalfof2022.InvestmentinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxCSGhasalwaysattachedgreatimportancetoenvironmentalprotectionwork,activelyfulfilleditssocialresponsibilities,andadheredtothedevelopmentpathofenergyconservation,emissionreduction,lowcarbonandenvironmentalprotection.Toreducethegenerationofpollutantsfromthesource,allglasskilnsusenaturalgasasfuel,bywhichitisthefirstenterpriseinglassindustrytousecleanenergycompletelyasfuel.Thesubsidiarieshaveconstructedpollutionpreventionandcontrolfacilitiesinaccordancewiththeenvironmentalimpactassessmentdocumentsofconstructionprojectsandrelevantspecifications,andputthemintoproductionanduseatthesametimeasthemainworksoftheconstructionprojects.Inrecentyears,theGrouphasinvestedalotoffundstoimprovethelevelofenvironmentalprotectionandpollutioncontrol.Since2018,ithasinvestedheavilyintheconstructionofdesulfurizationfacilitiesandbackupdenitrificationfacilitieseveryyear,bywhich,theconcentrationandtotalamountofpollutantemissionshavefurtherdroppedsignificantly,manysubsidiarieshavereachedandimplementedlocalultra-lowemissionstandards(particulatematter≤10mg/m

,NOX≤200mg/m

,SO

≤50mg/m

),andothersubsidiaries'pollutantemissionshavebeenfarlowerthanthenationalemissionstandards(particulatematter≤50mg/m3,NOX≤700mg/m

,SO

≤400mg/m

).Enterprisesinvolvedindirectlydischargingpollutantsintotheenvironmenthavedeclaredandpaidenvironmentaltaxestothelocaltaxauthoritiesinfullandontime.Measurestakentoreducecarbonemissionsduringthereportperiodandtheireffects

√Applicable□NotapplicableTheCompanyhascontinuouslystrengthenedthecomprehensiveutilizationandmanagementofresourcesandenergy,activelyfulfilledthecorporatesocialresponsibility,takenvariousmeasurestosaveenergyandreducecarbonemissions,makingourowncontributionstotheCountry'sgoalof"Carbonpeaking"and"Carbonneutrality".TheGroup'sOperationDepartmentTheGroupOperationDepartmenthasspeciallyestablishedanenergymanagementteam,whichisresponsibleforsupervisingtheenergyconsumptionmanagementofvarioussubsidiaries,andpromotestheenergyconsumptionperunitproductandcarbonemissionperunitproductoftheGroup'svariousproductstoreachtheadvancedlevelintheindustry.Atpresent,theenergyconsumptionlevelofmostglassmeltingfurnacesintheflatglassbusinessofCSGhasreachedtheadvancedlevelstipulatedbythenationalstandard.Atthesametime,CSGhasalwayspaidattentiontotheutilizationofwasteheatinflatglassfactories,andeachproductionbasehasbuiltwasteheatboilersandwasteheatpowerplants;CSGisalsoactivelydevelopingphotovoltaicpowerplants,mostofwhichhavephotovoltaicpowerplantsontheroofsoffactories.Inthefirsthalfof2022,theGroup'swasteheatpowergenerationandphotovoltaicpowergenerationtotaledabout180millionkwh,equivalenttoreducingcarbondioxideemissionsbymorethan100,000tons.AdministrativepenaltyimposedbyenvironmentalprotectiondepartmentNilOtherenvironmentalinformationthatshouldbedisclosedNilEnvironmentalincidentsinthelistedcompanyInthefirsthalfof2022,noenvironmentalaccidentsoccurred.

II.Socialresponsibility

Inthefirsthalfof2022,theCompanyfocusedonthefollowingtasksinfulfillingitssocialresponsibilities:

1.Preventandeliminateoccupationalhazardsandprotectemployees'healthCSGalwaysadherestotheconceptof"SafetyFirst,EnvironmentalProtectionFirstandGreenDevelopment",establishesSafetyandEnvironmentalProtectionDepartmenttocoordinatethesafetyandenvironmentalprotectionmanagement,establishestheGroup'sthree-levelcontrolsystemofsafety,environmentalprotection,fireprotectionandoccupationalhealth,hasacompletesafetymanagementstructureandsafetymanagementsystem,strictlyimplementsthesafetyproductionresponsibilitysystemofallemployees,andallemployeeshavesignedthesafetyproductionresponsibilitystatement.TheCompanyattachesgreatimportancetothesafetytrainingofemployees,strictlystrengthensthethree-levelsafetyeducationandtrainingofnewemployeesandthecontinuingeducationofoldemployees,andorganizesvariousspecialtrainingsaccordingtothecharacteristicsofemployees'poststoimprovetheirsafetyliteracyandsafetyskills.Themanagementofspecialequipmentandspecialoperationsshallbestrictlycarriedout,andspecialoperatorsshallworkwithcertificates.Specialoperationscanonlybecarriedoutafterapprovalandconfirmationofsafetymeasures.Regularlycarryoutemergencydrills,strengthentheconstructionofemergencyresponsecapabilities,improveemergencyresponsecapabilities,eliminatehiddendangersinthebud,andresolutelydefendthelastlineofdefense.Eachsubsidiaryhasestablishedasystemfortheextractionanduseofproductionsafetyexpenses,whichisstrictlyinaccordancewiththerequirementsofrelevantlawsandregulationstoextractandstandardizetheuseofproductionsafetyexpenses.TheCompanyhasalsocarriedoutvarioushiddendangersinvestigationoftheheadquartersandsubsidiaries,acceptedthesupervisionandinspectionoflocalemergencymanagementdepartments,andorganizedtherectificationandimprovementofvarioushiddendangers.Inaddition,theCompanyattachesgreatimportancetothestandardizationconstructionandoperationofsafetymanagement.AsoftheendofJune2022,CSGhasobtainedsafetystandardizationcertificatesfor18subsidiaries,ofwhich6subsidiarieshavereachedthesecondlevelofsafetyproductionstandardization,12subsidiarieshavereachedthethirdlevelofsafetyproductionstandardization,andafewothersubsidiariesarealsoactivelycreatingandapplying.

2.ProtecttheenvironmentandpromotesustainabledevelopmentAsofthefirsthalfof2022,6subsidiariesofCSGhavebeenratedasnational-level"GreenFactories".TheCompanycontinuestostrengthenthecomprehensiveutilizationandmanagementofresourcesandenergy,takesvariousmeasurestosaveenergy,reduceemissionsandreducecarbon,andmakescontributionstotheCountry'sgoalof"Carbonpeaking"and"Carbonneutrality".TheGroup'sOperationDepartmentTheGroupOperationDepartmenthasspeciallyestablishedanenergymanagementteam,whichisresponsibleforsupervisingtheenergyconsumptionmanagementofvarioussubsidiaries,andpromotestheenergyconsumptionperunitproductandcarbonemissionperunitproductoftheGroup'svariousproductstoreachtheadvancedlevelintheindustry.Atpresent,theenergyconsumptionlevelofmostglassmeltingfurnacesintheflatglassbusinessofCSGhasreachedtheadvancedlevelstipulatedbythenationalstandard.WujiangCSGissharedandpromotedbytheenergyconservationandComprehensiveUtilizationDepartmentoftheMinistryofindustryandinformationtechnologyasthe"Leader"ofenergyefficiencyinthekeyenergyconsumptionindustry.HebeiCSGisdesignatedbytheMinistryofindustryandinformationtechnologyastheadvancedbenchmark"TestField"ofCarbonPeak.Atthesametime,CSGhasalwayspaidattentiontotheutilizationofwasteheatinflatglassfactories,andeachproductionbasehasbuiltwasteheatboilersandwasteheatpowerplants;CSGisalsoactivelydevelopingphotovoltaicpowerplants,mostofwhichhavephotovoltaicpowerplantsontheroofsoffactories.Inthefirsthalfof2022,theGroup'swasteheatpowergenerationandphotovoltaicpowergenerationtotaledabout180millionkWh,equivalenttoreducingcarbondioxideemissionsbymorethan100,000tons.Inthefirsthalfof2022,allsubsidiariesbuiltpollutionpreventionandcontrolfacilitiesinaccordancewiththeenvironmentalimpactassessmentdocumentsofconstructionprojectsandrelevantspecifications.Thepollutioncontrolfacilitieswereingoodoperationandthepollutantsweredischargedstablyuptothestandard.Theairpollutantemissionconcentrationsofmostofthesubsidiarieswerelowerthan50%oftheemissionstandardandenjoyedthepreferentialpolicyofhalvingenvironmentaltax.Thepollutantemissionsof

manysubsidiariesreachedandimplementedlocalultra-lowemissionstandards.Meanwhile,thesubsidiariesbuiltandoperatedon-linemonitoringdevicesforwastewaterandexhaustgasinaccordancewithnationallawsandregulations,environmentalimpactassessmentdocumentsofconstructionprojectsandtherequirementsoftheirreplies,regularlycarriedoutcomparisonandreviewoftheeffectivenessofon-linemonitoringfacilities,andentrustedathird-partyunittocarryoutmanualenvironmentalmonitoringtocomprehensivelymonitorthepollutantdischarge.Themonitoringfrequencywasimplementedinaccordancewithrelevantmonitoringtechnicalguidelinesorpollutantdischargepermits.Inaddition,inaccordancewiththenationalrequirements,allsubsidiariespreparedemergencyenvironmentalresponseplanforenvironmentincident,organizedandcarriedoutexpertevaluationandfiledwiththelocalenvironmentalprotectiondepartmentasrequired,andconductedtheemergencydrillagainstenvironmentalincidentsasplanned.Andtherewerenomajorenvironmentalincidentsoccurredinthefirsthalfof2022.

3.ParticipateinpublicwelfareundertakingsandfulfillsocialresponsibilitiesTheCompanyactivelyparticipatesinsocialwelfareactivities,organizesemployeestovoluntarilyparticipateinvoluntaryblooddonation,supportscommunityepidemicpreventionandanti-epidemicwork,etc.,andfulfillscorporatesocialresponsibility.Inthefirsthalfof2022,theCompanydonatedfundsandmaterialstovarioussectorsofthesocietyforcharityandpublicwelfareactivitiessuchassupportandcarefortheelderlyinvillagesandtownsandepidemicprevention.

4.Adheretoindependentresearchanddevelopmenttoprovidebetterenergy-savingproductsTheCompanyhasalwaysadheredtothebusinessstrategyofindependentresearchanddevelopmentandinnovationleading.Inthefirsthalfof2022,theCompanysubmitted76patentapplicationsandobtained188newpatentauthorizations,including34inventionpatentauthorizations.AsofJune30,2022,theCompanyhadappliedforatotalof2,470patents,including993inventions,1,468utilitymodelpatents,and9designs;atotalof1,811authorizedpatents,including337inventions,1,465utilitymodels,and9designs.gatheringthewisdomofCSG’speopletoimprovetheindustrialscienceandtechnology.

5.ProtecttherightsandinterestsofshareholdersandcreditorsTheCompanyensuredthesteadydevelopmentofitsmainbusinessandimprovedoveralloperatingperformance.Inthefirsthalfof2022,theCompanyachievedoperatingincomeofRMB6.519billion,ayear-on-yeardecreaseof1.45%;realizednetprofitofRMB

1.009billion,ayear-on-yeardecreaseof26.33%;netprofitattributabletoshareholdersoflistedcompanieswasRMB1.001billion,ayear-on-yeardecreaseof25.98%.TheCompany'sequitydistributionof2021hadbeencompleted,andtheactualcashdividendamount(includingtax)wasRMB614,138,421,accountingfor40.16%ofthenetprofitattributabletoshareholdersoflistedcompanyin2021,withcontinuingreturntoshareholders.Intermsofcreditorprotection,theCompanyimplementedaprudentfinancialpolicy,andalldueloanswererepaidontime,whichprotectedthelegitimaterightsandinterestsofcreditors.

6.StrengthenwelfaresecurityandprotectthelegitimaterightsandinterestsofemployeesTheCompanyinsistsonstandardizingtheemploymentbehavior,strictlyimplementsthenationalandlocalsocialsecuritymechanism,andpurchasesfiveinsurancesandonefundandothercomprehensivewelfareinsuranceforemployees;ithasafairandunimpededpostpromotionsystemandbroadenthedevelopmentchannelsofemployees;itestablishesandimplementsastatutoryleavesystemforemployees,andemployeesenjoyvariousstatutoryholidaysandotherpaidholidaysstipulatedbythestate;itactivelyorganizesvariousemployeeculturalandsportsactivities,andemployeesalsoenjoybenefitssuchasemployeecanteens,employeephysicalexaminations,subsidiesandotherbenefits.Itstrengthensoccupationalhealthmonitoringandmanagementtoensurethephysicalandmentalhealthofemployees;itcaresforemployeesinneed.Inthefirsthalfof2022,theCompanyprovidedassistanceofRMB302,600to11employeesandtheirfamiliesforhelpingthemovercomedifficulties.

7.SocialhonorrecognitionWhilegivingbacktothesocietythroughsteadyoperation,CSGanditsproductshavebeenrecognizedbybyallsectorsofthesociety.Sinceitsestablishment38yearsago,theCompany'sproductshavebeenwidelyusedinmanymajorandimportantvenues,suchasthe"IceRibbon","ShougangSkiJumpingPlatform","SnowRuyi"andotherBeijingWinterOlympicvenuesthatwillastonishtheworldin2022;CSG’slowradiationcoatedglassandultra-thinelectronicglasswererecognizedas"SingleChampionProductsofManufacturingIndustry"bytheMinistryofIndustryandInformationTechnologyofthePeople'sRepublicofChina;theCompany

hasbeenlistedonthelistof"Top100IndustryLeadersinShenzhen"and"PreferredBrandofArchitecturalGlass"inDoorandWindowCurtainWallIndustry,AnnualOutstandingEnterpriseinTouchDisplayIndustry,Well-knownBrandinShenzhen,etc.,andithaswonthehonorsof"LeadingEnterpriseinPromotingHigh-qualityDevelopment"and"ConsumerFavoriteBrand",etc.

SectionVI.ImportantEventsI.Commitmentscompletedbytheactualcontrollers,theshareholders,therelatedparties,thepurchasersandtheCompanyduringthereportperiodandthosethathadn’tbeencompletedexecutionbytheendofthereportperiod

□Applicable√NotapplicableDuringthereportperiod,therewerenocommitmentsmadebytheCompany'sactualcontroller,shareholders,relatedparties,acquirers,theCompanyandotherrelevantpartiesthathadbeenfulfilledwithinthereportperiodandhadnotbeenfulfilledwithinthetimelimitbytheendofthereportperiod.II.Particularsaboutnon-operatingfundoflistedcompanyoccupiedbycontrollingshareholderandotherrelatedparties

□Applicable√NotapplicableDuringthereportperiod,therewasnoanynon-operatingfundoflistedcompanyoccupiedbycontrollingshareholderandotherrelatedparties.III.Illegalexternalguarantee

□Applicable√NotapplicableDuringthereportperiod,therewasnoillegalexternalguarantee.IV.Engaginganddismissingofaccountingfirm

Whetherthesemi-annualreporthasbeenauditedornot

□Yes√NoThesemi-annualreportoftheCompanyhasnotbeenaudited.V.ExplanationfromBoardofDirectorsandSupervisoryCommitteefor“Non-standardauditreport”oftheperiodthatissuedbyaccountingfirm

□Applicable√Notapplicable

VI.ExplanationfromBoardofDirectorsfor“Non-standardauditreport”ofthepreviousyear

□Applicable√Notapplicable

VII.Issuesrelatedtobankruptcyandreorganization

□Applicable√Notapplicable

VIII.LawsuitsSignificantlawsuitsandarbitrations

□Applicable√NotapplicableDuringthereportperiod,theCompanyhadnosignificantlawsuitsandarbitrationsOtherlawsuits

□Applicable√Notapplicable

IX.Penaltyandrectification

□Applicable√Notapplicable

X.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers

√Applicable□NotapplicableTheCompanyhasnocontrollingshareholderandactualcontroller.Accordingtothedisclosurerequirements,theCompany'slargestshareholderForeseaLifeInsuranceCo.,Ltd.,shareholderZhongshanRuntianInvestmentCo.,Ltd.andshareholderChengtaiGroupCo.,Ltd.shoulddisclosethecorrespondinginformation.Thedetailsareasfollows:

(Ⅰ)IntegrityoftheCompanyDuringthereportperiod,ItdidnotexistthattheCompanyfailedtoperformtheeffectivejudgmentofthecourtorowedcomparativelylargeamountofdebtwhichwasoverdue.TheCompany'sintegrityisgood.(ⅠⅠ)TheintegrityoftheCompany'sshareholders

1.AccordingtothereplyoftheCompany'slargestshareholder,ForeseaLifeInsuranceCo.,Ltd.:AsofJune30,2022,itdidnotexistthatForeseaLifeInsuranceCo.,Ltd.failedtoperformtheeffectivejudgmentofthecourtorowedcomparativelylargeamountofdebtwhichwasoverdue.

2.AccordingtothereplyoftheshareholderZhongshanRuntianInvestmentCo.,Ltd.,theoriginalcontentisasfollows:

AsofJune30,2022,thecasesexecutedbyZhongshanRuntianInvestmentCo.,Ltd.(hereinafterreferredtoas"ZhongshanRuntian")areasfollows:

(1)Duetothecaseofexecutionofnotarizedcreditor'srightsdocumentsbetweenGreatWallGuoxingFinancialLeasingCo.,Ltd.and16companiesincludingShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.andZhongshanRuntianInvestmentCo.,Ltd.,GreatWallGuoxingFinancialLeasingCo.,Ltd.appliedtothecourtforcompulsoryexecution.AstheguarantorofthedebtofRMB164million,ZhongshanRuntianshallbejointlyandseverallyliableforthedebt,andits5.57millionsharesofJonjeeHigh-techareusedascollateral.Atpresent,GreatWallGuoxingFinancialLeasingCo.,Ltd.hasappliedforcompulsoryexecutionandhasfrozen5.57millionsharesofJonjeeHigh-tech.

(2)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenChongqingXinyuFinancialLeasingCo.,Ltd.andthedefendantsShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenBaonengAutomobileCo.,Ltd.,andZhongshanRuntian,ChongqingXinyuFinancialLeasingCo.,Ltd.appliedtothecourtforcompulsoryexecution.AstheguarantorofthebondofRMB260million,ZhongshanRuntianusedits67.65millionCSGAsharesascollateral.

(3)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenGuangdongFinanceTrustCo.,Ltd.andZhongshanRuntian,ShenzhenJushenghuaCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,andMr.YaoZhenhua,YuecaiTrustappliedtothecourtforcompulsoryexecution.Asthedirectborrowerofthedebtof720millionyuan,ZhongshanRuntianusedits26.55millionsharesofJonjeeHigh-techascollateral.Atpresent,thestockhasbeenfrozenandwaitingtobefrozenbyGuangdongYuecaiTrustCo.,Ltd.AsofJune30,2022,ZhongshanRuntian'ssharesinJonjeeHigh-techarestill

beingpassivelyreduced.

(4)DuetothedisputeovertheloancontractbetweenAVICTrustCo.,Ltd.andZhongshanRuntianFinance,ZhongshanRuntian,astheborrowerofthedebtprincipalof1.05billionyuan,HefeiBaohuiRealEstateCo.,Ltd.andHefeiBaonengRealEstateDevelopmentCo.,Ltd.Thecompany,ShenzhenJushenghuaCo.,Ltd.,ShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ChiaTai(Shenzhen)DevelopmentCo.,Ltd.andMr.YaoZhenhuaarejointlyandseverallyliableforthedebt.

(5)Duetothecaseofexecutionofnotarizedcreditor'srightsdocumentsbetweenChongqingInternationalTrustCo.,Ltd.andShenzhenJushenghuaCo.,Ltd.,ZhongshanRuntian,ShenzhenBaonengInvestmentGroupCo.,Ltd.andMr.YaoZhenhua,thecourtruledtosealupandfreezethepropertyofRMB541millionofJushenghua,BaonengGroupandYaoZhenhua,andtofreezethe22millionsharesofJonjeeHigh-techpledgedbyZhongshanRuntiantoChongqingTrust.Atpresent,ChongqingTrusthasappliedforcompulsoryexecutionandhasfrozen22millionsharesofJonjeeHigh-tech.AsofJune30,2022,thedetailsofZhongshanRuntian'scomparativelylargeamountofdebtwhichwasoverdueareasfollows:

AsofJune30,2022,Mr.YaoZhenhua'spersonalexecutioncasesareasfollows:

(1)Duetothecaseofdisputesovernotarizedcreditor'srightsdocumentsbetweenPingAnTrustCo.,Ltd.andShaoxingBaoruiRealEstateCo.,Ltd.,BaonengCityCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.,ShanghaiKaiyueInvestmentCo.,Ltd.andMr.YaoZhenhuanotarizedcreditor'srights,whichwasappliedforcompulsoryexecutionbyPingAnTrust,Mr.YaoZhenhuawasjointlyandseverallyliablefortheprincipalandinterestofthedebtofRMB420million.

(2)DuetothetrustloandisputebetweentheNationalTrustandShenzhenXinaoTradingCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,Mr.YaoZhenhuaandotherssignedrelevantguaranteecontracts,orderingShenzhenXinaoTradingCo.,Ltd.torepaytheloanprincipalof290millionYuanandrelatedinterestsandlitigationcosts,ShenzhenBaonengInvestmentGroupCo.,Ltd.,Mr.YaoZhenhua,etc.wasjointlyandseverallyliableforthedebts.

(3)DuetothefinancialborrowingofZhongrongInternationalTrustCo.,Ltd.andBaonengAutomobileCo.,Ltd.,itappliedtotheBeijingThirdIntermediatePeople'sCourtfornotarizationonthematterforcompulsoryexecution.SinceMr.YaoZhenhuaprovidedaguaranteeforthisloanbusinessandsignedtherelevantnotarizeddocuments,hewasjointlyandseverallyliableforthedebtof

1.048billionyuan.

(4)AsKunlunTrustCo.,Ltd.appliedtothecourtforcompulsoryexecutionofthenotarizedcreditor'srightsdocumentswithShumYipLogisticsGroupCo.,Ltd.,BaonengCenturyCo.,Ltd.,ChiaTai(Shenzhen)DevelopmentCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,Mr.YaoZhenhua,Mr.YaoZhenhuaassumedjointandseveralguaranteeliabilitiesforthedebtofRMB1.31billion.

(5)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenGuangzhouXinhuaCityDevelopmentIndustryInvestmentEnterprise(LimitedPartnership)andthedefendantsShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.andMr.YaoZhenhua,Mr.YaoZhenhua,astheguarantor,signedtherelevantnotarialdocumentsandassumedjointandseveralliabilitiesfortheprincipalandinterestofthecreditor'srightsofRMB600million.

(6)DuetothedisputeovertheloancontractbetweenXiamenInternationalBankCo.,Ltd.FuzhouBranchandShenzhenJushenghuaCo.,Ltd.,XiamenInternationalBankCo.,Ltd.FuzhouBranch,whichwasappliedtoShenzhenIntermediatePeople'sCourtforcompulsoryexecution,Mr.YaoZhenhua,astheguarantoroftheloanprincipalofRMB2.16billion,signedthecorrespondingguaranteecontractandassumedjointandseveralliabilitiesforthedebt.

(7)DuetothefinancialdebtdisputebetweenGuangdongFinanceTrustCo.,Ltd.andZhongshanRuntian,GuangdongFinanceTrustCo.,Ltd.,whichwasappliedtoShenzhenIntermediatePeople'sCourtforcompulsoryexecution,Mr.YaoZhenhua,astheguarantoroftheloan,signedthecorresponding"GuaranteeContract"andwasjointlyandseverallyliableforthedebtofRMB720million.

(8)DuetothefinancialdebtdisputebetweenChinaRailwayTrustCo.,Ltd.andBaonengAutomobileGroupCo.,Ltd.andKunmingBaojunRealEstateCo.,Ltd.,whichwasappliedtoChengduIntermediatePeople'sCourtofSichuanProvinceforcompulsoryexecution,astheguarantoroftheloan,Mr.YaoZhenhuasignedtheThecorresponding"GuaranteeContract"andwasjointlyandseverallyliableforthedebtofRMB2.063billion.

(9)DuetothefinancialdebtdisputebetweenChinaRailwayTrustCo.,Ltd.andBaonengAutomobileGroupCo.,Ltd.andKunmingJianpengRealEstateDevelopmentCo.,Ltd.,whichwasappliedtoChengduIntermediatePeople'sCourtofSichuanProvinceforcompulsoryexecution,Mr.YaoZhenhua,astheguarantoroftheloan,Thecorresponding"GuaranteeContract"andwasjointlyandseverallyliableforthedebtofRMB836million.

(10)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenChanganInternationalTrustCo.,Ltd.andShenzhenBaonengInvestmentGroupCo.,Ltd.,WuxiBaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,whichwasappliedforcompulsoryexecutionbyChanganTrust,Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB925million.

(11)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenChanganInternationalTrustCo.,Ltd.andShenzhenBaonengInvestmentGroupCo.,Ltd.,WuxiBaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,whichwasappliedforcompulsoryexecutionbyChanganTrust,Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB1.117billion.

(12)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenChinaMinshengTrustCo.,Ltd.andtheexecutorsShenzhenBaonengInvestmentGroupCo.,Ltd.,HefeiBaohuiRealEstateCo.,Ltd.,ShenzhenBaonengEnterpriseManagementCo.,Ltd.,AnhuiBaonengLandCo.,Ltd.,andMr.YaoZhenhua,MinshengTrustappliedforcompulsoryexecution.Astheguarantorofthedebt,Mr.YaoZhenhuawasjointlyandseverallyliableforthedebtofRMB4.207billion.

(13)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenShanghaiAijianTrustCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,Zhengda(Shenzhen)DevelopmentCo.,Ltd.,HefeiBaohuiRealEstateCo.,Ltd.,HefeiBaonengRealEstateDevelopmentCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,AijianTrustappliedtothecourtforcompulsoryexecution.Astheguarantorofthedebt,Mr.YaoZhenhuawasjointlyandseverallyliableforthedebtofRMB417million.

(14)DuetothedisputeovertheloancontractbetweenChongqingInternationalTrustCo.,Ltd.andBaonengAutomobileGroupCo.,Ltd.,ChongqingInternationalTrustappliedtothecourtforcompulsoryexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB2.186billion.

(15)Duetothecaseofnotarizingcreditor'srightsdocumentsbetweenChinaMinshengTrustCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,MinshengTrustappliedtothecourtforcompulsoryexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB496million.

(16)DuetothecaseofChinaMinshengTrustCo.,Ltd.,ShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.andMr.YaoZhenhua,whichwasappliedtothecourtforcompulsoryexecutionbyMinshengTrust,Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB

2.238billion.

(17)DuetothefinancialloancontractdisputebetweenAVICTrustCo.,Ltd.andShenzhenLingdaoAutoLifeServiceCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,ShenzhenShumYipLogisticsGroupCo.,Ltd.,TengchongBaonengRealEstateCo.,Ltd.,ZhejiangJintianRealEstateDevelopmentCo.,Ltd.,TengchongBeihaiWetlandEcotourismInvestmentCo.,Ltd.,Mr.YaoZhenhua,AVICTrustappliedtothecourtforcompulsoryexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB984million.

(18)DuetothefinancialloancontractdisputebetweenAVICTrustCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,BaonengRealEstateCo.,Ltd.,andWuhuBaonengRealEstateCo.,Ltd.Thecompany,BaonengCityCo.,Ltd.,TengchongBeihaiWetlandEco-tourismInvestmentCo.,Ltd.,Mr.YaoZhenhua,whichwasappliedtothecourtbyAVICTrustforenforcement,Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB563million.

(19)DuetotheloancontractdisputebetweenPingAnBankCo.,Ltd.ShenzhenBranchandShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.,ShenzhenFirstSpaceOperationManagementCo.,Ltd.,Mr.YaoZhenhuaandBaonengCityCo.,Ltd.,whichwasappliedtothecourtbyShenzhenBranchofPingAnBankCo.,Ltd.forexecution,Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB3.433billion.

(20)DuetotheexecutionoflitigationcostsoftheloancontractdisputebetweenShenzhenBranchofPingAnBankCo.,Ltd.andBaonengCityCo.,Ltd.,BaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,Mr.YaoZhenhuaandShenzhenLiujinInvestmentCo.,Ltd.,theHigherPeople'sCourtofGuangdongProvinceappointedShenzhenIntermediatePeople'sCourtofGuangdongProvincetoexecutethecase.Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,wasjointlyandseverallyliableforthelitigationcostsofRMB13.9208millionarisingfromtheloancontractdispute.

(21)duetotheloancontractdisputebetweenShenzhenBranchofPingAnBankCo.,Ltd.andBaonengCityCo.,Ltd.,BaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,Mr.YaoZhenhuaandShenzhenLiujinInvestmentCo.,Ltd.,ShenzhenBranchofPingAnBankCo.,Ltd.appliedtothecourtforexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB5.562billion.

(22)Duetothecaseofexecutionofnotarizedcreditor'srightsdocumentsbetweenChongqingInternationalTrustCo.,Ltd.andShenzhenJushenghuaCo.,Ltd.,ZhongshanRuntian,ShenzhenBaonengInvestmentGroupCo.,Ltd.,andMr.YaoZhenhua,ChongqingInternationalTrustCo.,Ltd.whichwasappliedtothecourtbyChongqingInternationalTrustCo.,Ltd.forexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB541million.

(23)DuetothecaseofTibetBankCo.,Ltd.v.LhasaBaochuangAutomobileSalesCo.,Ltd.,Mr.YaoZhenhua,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andShenzhenShumyeLogisticsGroupCo.,Ltd.wasjointlyandseverallyliableforthelitigationfeeoftheloancontractdispute,whichwasexecutedbytheLhasaIntermediatePeople'sCourtoftheTibetAutonomousRegion,Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,wasjointlyandseverallyliableforthelitigationcostsofRMB4.1867millionarisingfromtheloancontractdispute.

(24)DuetothecasethatBankofTibetCo.,Ltd.suedLhasabaochuangAutomobileSalesCo.,Ltd.,Mr.YaoZhenhua,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.andShenzhenShenyeLogisticsGroupCo.,Ltd.werejointlyandseverallyliableforthedebtsarisingfromtheloancontractdisputeandwereexecutedbyLhasaIntermediatePeople'sCourtofTibetAutonomousRegion.Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,wasjointlyandseverallyliableforthelitigationcostsofRMB829millionarisingfromtheloancontractdispute,whichhasbeenpaidoff.

(25)DuetothecasethatChongqingInternationalTrustCo.,Ltd.suedBaonengAutomobileGroupCo.,Ltd.,NanjingBaoneng

UrbanDevelopmentCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,andYaoZhenhua,astheguarantorofthedebt,Mr.YaoZhenhuawasexecutedbytheChongqingNo.5IntermediatePeople'sCourt,andhewasjointlyandseverallyliableforthedebtofRMB2.121billion.Mr.YaoZhenhuahadnodebtwithcomparativelyamountthathadnotbeenpaidwhendue.

3.AccordingtothereplyoftheshareholderChengtaiGroupCo.,Ltd.:asofJune30,ChengtaiGroupCo.,Ltd.hadnotreceivedrelevantinformationonsharefreezingandlitigation,andithadnodebtwithcomparativelyamountthathadnotbeenpaidwhendue.XI.Majorrelatedtransaction

1.Relatedtransactionwithroutineoperationconcerned

□Applicable√Notapplicable

2.Relatedtransactionwithacquisitionofassetsorequity,salesofassetsorequityconcerned

□Applicable√Notapplicable

3.Relatedtransactionwithjointlyexternalinvestmentconcerned

□Applicable√Notapplicable

4.Creditsandliabilitieswithrelatedparties

□Applicable√Notapplicable

5.Transactionswithrelatedfinancialcompanies

□Applicable√Notapplicable

6.Transactionswithfinancialcompaniescontrolledbythecompany

□Applicable√Notapplicable

7.Othermajorrelatedtransaction

□Applicable√NotapplicableXII.Significantcontractsandtheirimplementation

1.Trusteeship,contractandleasing

(1)Trusteeship

□Applicable√Notapplicable

(2)Contract

□Applicable√Notapplicable

(3)Leasing

□Applicable√Notapplicable

2.Majorguarantees

√Applicable□Notapplicable

Unit:RMB0,000

Note:

1.TheCompany's2021AnnualGeneralMeetingofShareholdersreviewedandapprovedthe"Proposalonthe2022AnnualGuaranteePlan",andtheGeneralMeetingofShareholdersagreedtoprovideguaranteeforthe2022annualcreditlineoffinancialinstitutionsofsubsidiariesatalllevels(hereinafterreferredtoas"subsidiaries")withinthescopeoftheconsolidatedstatementswithatotalamountnotexceedingtheequivalentvalueof

16.268billionyuan(includingtheeffectiveandunexpiredlimit).Amongthem,thetotalamountofguaranteeshallnotexceedtheequivalentofRMB

15.018billion(includingtheeffectiveandunexpiredamount)foreachsubsidiarywithanassetliabilityratiooflessthan70%,andthetotalamountofguaranteeshallnotexceedtheequivalentofRMB1.25billion(includingtheeffectiveandunexpiredamount)foreachsubsidiarywithanassetliabilityratioofmorethan70%.AllexternalguaranteesoftheCompanyareguaranteesforsubsidiarieswithinthescopeofconsolidatedstatements.AsofJune30,2022,theactualguaranteebalancewasRMB3,099.4million(ofwhichtheactualguaranteebalancewithanassetliabilityratioofmorethan70%(inclusive)wasRMB281.94million),accountingfor27.12%oftheparentcompany'snetassetsofRMB11,429.66millionattheendof2021and15.54%ofthetotalassetsofRMB19,939.36million;Accountingfor26.23%ofthenetassetsofRMB11,817.42millionattributabletotheparentcompanyattheendofthereportperiodand13.79%ofthetotalassetsofRMB22,471.18million.TheCompanyhasnooverdueguarantee.

2.TheCompany's2021AnnualGeneralMeetingofShareholdersreviewedandapprovedthe"ProposalontheDevelopmentofAssetPoolBusinessin2022".InordertomeettheoverallmanagementoftheCompany'sassetssuchasbillsandlettersofcreditandtomeettheneedsoffinancialinstitutions'productupgrades,theGeneralMeetingofShareholdersapprovedtheCompanyanditssubsidiaries.TheCompanyconductsassetpoolbusinessofnomorethanRMB800million.Underthepremiseofcontrollablerisks,variousguaranteemethodssuchasmaximumpledge,generalpledge,depositcertificatepledge,billpledge,andmarginpledgecanbeadoptedforbusinessdevelopment.AsofJune30,2022,theactualpledgeamountandfinancingbalanceoftheassetpoolbusinessareRMB0yuan.

3.EntrustedFinancing

√Applicable□Notapplicable

Unit:RMB0,000

Detailsofhigh-riskentrustedfinancingwithsignificantsingleamountorlowsecurityandpoorliquidity

□Applicable√Notapplicable

Entrustedfinancingexpectedtobeunabletorecovertheprincipalorothercircumstancesthatmayleadtoimpairment

□Applicable√Notapplicable

4.Othermajorcontracts

√Applicable□Notapplicable

XIII.Statementonotherimportantmatters

√Applicable□Notapplicable

1.Ultra-short-termfinancingbillsOnJune15,2020,theThirdExtraordinaryShareholders’GeneralMeeting2020ofCSGdeliberatedandapprovedtheproposalonapplicationforregistrationandissuanceofultra-short-termfinancingbillsandmedium-termnotes,whichagreedthattheCompanyshouldregisterandissueultra-short-termfinancingbillswitharegisteredamountnotexceeding1.5billionyuan(thelimitisnotsubjecttothelimitof40%ofnetassets).Withtheperiodofvalidityofthequotanotlongerthantwoyears,suchultra-short-termfinancingbillswillbeissuedbyinstallmentsinaccordancewiththeactualcapitalneedsoftheCompanyandthesituationofinter-bankmarketfunds.OnSeptember4,2020,theNAFMIIheldits102ndregistrationmeetingin2020anddecidedtoaccepttheregistrationofultra-short-termfinancingbillswithatotalof1.5billionyuanandavalidityperiodoftwoyears.OnMay16,2022,theCompany's2021annualgeneralmeetingreviewedandapprovedthe"ProposalonApplicationforRegistrationandIssuanceofMedium-TermNotesandUltra-short-termFinancingBills",whichagreedthattheCompanywouldregisterandissueultra-short-termfinancingbillswitharegisteredamountofnotmorethan1billionyuan,TheCompanycanissueoneormoretimeswithinthevalidityperiodoftheregistrationaccordingtotheactualcapitalneedsandthecapitalsituationoftheinter-bankmarket.

2.Medium-termnotesOnJune15,2020,theThirdExtraordinaryShareholders’GeneralMeeting2020ofCSGdeliberatedandapprovedtheproposalonapplicationforregistrationandissuanceofultra-short-termfinancingbillsandmedium-termnotes,whichagreedthattheCompanyshouldregisterandissuemedium-termnoteswitharegisteredamountnotexceeding1.5billionyuan.Withtheperiodofvalidityofthequotanotlongerthantwoyears,suchultra-short-termfinancingbillswillbeissuedbyinstallmentsinaccordancewiththeactual

capitalneedsoftheCompanyandthesituationofinter-bankmarketfunds.OnSeptember4,2020,theNAFMIIheldthe102ndregistrationmeetingin2020anddecidedtoacceptthecompany'sregistrationofmedium-termnoteswithatotalof1.5billionyuanandavalidityperiodoftwoyears.OnMay16,2022,theCompany's2021annualgeneralmeetingreviewedandapprovedthe"ProposalonApplicationforRegistrationandIssuanceofMedium-termNotesandUltra-short-termFinancingBills",whichagreedthattheCompanywouldregisterandissuemedium-termnoteswitharegisteredamountofnotmorethan2billionyuan.Actualcapitalneedsandinter-bankmarketcapitalstatus,canbeissuedoneormoretimeswithinthevalidityperiodofregistration.

3.PublicissuanceofcorporatebondsOnMarch2,2017,the2ndExtraordinaryGeneralMeetingofShareholdersin2017reviewedandapproved“theProposalonthePublicIssuanceofCorporateBondsforQualifiedInvestors".OnFebruary27,2019,theFirstExtraordinaryGeneralMeetingofShareholdersin2019The“ProposalonExtendingtheValidityPeriodoftheShareholders'MeetingforthePublicOfferingofCorporateBondstoQualifiedInvestors”agreedtoissuecorporatebondswithatotalissueofnomorethanRMB2billionandatermofnomorethan10years.OnJune26,2019,theCompanyreceivedthe“ApprovalofApprovingCSGHoldingCo.,Ltd.toIssueCorporateBondstoQualifiedInvestors”issuedbyChinaSecuritiesRegulatoryCommission(ZJXK[2019]No.1140).OnMarch24,2020andMarch25,2020,theCompanyissuedthefirstbatchofcorporatebondswithtotalamountofRMB2billionandvalidtermof3yearsattheissuancerateof6%,whichwillberedeemedonMarch25,2023(fordetails,pleasereferto"SectionIXBonds").

4.PublicissuanceofA-shareconvertiblecorporatebondsOnJuly11,2022,theCompany's2ndExtraordinaryGeneralMeetingofShareholdersin2022reviewedandapprovedrelevantproposalsontheCompany'spublicissuanceofA-shareconvertiblecorporatebonds,andagreedtoissueA-shareconvertiblecorporatebonds.ThetotalamountoffundsraisedwouldnotexceedRMB2,800,000,000(includingRMB2,800,000,000),withatermof6yearsfromthedateofissuance.

5.PassivereductionofSouthernGlassAsharesheldbyZhongshanRuntianInvestmentCo.,Ltd.OnJuly12,2022,theCompanyreceivedthe"NoticeLetter"fromChongqingXinyuFinancialLeasingCo.,Ltd.(hereinafterreferredtoas"ChongqingXinyu").Accordingtothe"NotificationLetter",theShenzhenIntermediateCourtruledtosell67.65million"SouthernGlassA"shares(stockcode:000012)heldbyZhongshanRuntianInvestmentCo.,Ltd.(hereinafterreferredtoas"ZhongshanRuntian").OnJuly27,July28andJuly29,2022,ChongqingXinyuforciblysoldatotalof55.6289millionSouthernGlassAsharesheldbyZhongshanRuntianthroughblocktransactions,accountingfor1.81%oftheCompany'stotalsharecapital.Afterthepassivereductionoftheaforementionedshares,thenumberofsharesheldbyZhongshanRuntiandecreasedfrom86,633,447sharesto31,004,547shares,andtheshareholdingratiodecreasedfrom2.82%to1.01%.

6.ThematterofthespecialfundofRMB171millionfortalentintroductionRegardingthespecialfundofRMB171millionfortalentintroduction,theCompanyfiledaninfringementcompensationlawsuitagainstZengNanandothersandYichangHongtaiRealEstateCo.,Ltd.onDecember15,2021,andShenzhenIntermediatePeople'sCourtofficiallyaccepteditonJanuary28,2022.ThefirsttrialofthecasewascompletedinShenzhenIntermediatePeople'sCourtonJune21,2022,andiscurrentlyawaitingjudgment.XIV.SignificanteventsofsubsidiariesoftheCompany

□Applicable√Notapplicable

SectionVII.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital

1.ChangesinShareCapital

Unit:Share

Reasonforequitychanges

√Applicable□NotapplicableDuringthereportperiod,ChinasecuritiesregistrationandclearingCo.,Ltd.Adjustedthelocked-upsharesofseniormanagementinaccordancewithregulations,andtheCompany’srestrictedsharesandunrestrictedshareschangedaccordingly.Approvalonequitychanges

□Applicable√NotapplicableTransferofownershipforequitychanges

□Applicable√Notapplicable

Implementationprogressofsharebuyback

□Applicable√NotapplicableImplementationprogressofsharebuybackreductionthroughcentralizedbidding

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersofCompanyinthelatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytobedisclosedorneedtobedisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesofrestrictedshares

√Applicable□Notapplicable

Unit:Share

Note:ThechangeinrestrictedsharesduringthereportingperiodwascausedbyChinaSecuritiesDepositoryandClearingCo.,Ltd.'sadjustmentofthelocked-upsharesofseniorexecutivesinaccordancewithregulations.II.IssuanceandlistingofSecurities

□Applicable√Notapplicable

III.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding

Unit:share

Specialnote:OnJuly11,2022,attheCompany'sSecondExtraordinaryGeneralMeetingin2022,ForeseaLifeInsuranceCo.,Ltd.votedinfavorofallproposals,andZhongshanRuntianInvestmentCo.,Ltd.votedagainstallproposals,ChengtaiGroupCo.,Ltd.votedagainstalltheproposalswiththesharesheldbyChinaGalaxyInternationalSecurities(HongKong)Co.,Limited;onAugust3,2022,attheCompany'sThirdExtraordinaryGeneralMeetingin2022,ForeseaLifeInsuranceCo.,Ltd.votedinfavorofallproposals,andZhongshanRuntianInvestmentCo.,Ltd.votedagainstallproposals.Whetherthetoptenshareholdersortoptenshareholderswithun-restrictedsharescarriedoutbuybackdealsinthereportperiod

□Yes√NoThetoptenshareholdersortoptenshareholderswithun-restrictedsharesdidnotcarryoutbuybackdealsinthereportperiod.

IV.Changesintheshareholdingofdirectors,supervisorsandseniorexecutives

√Applicable□Notapplicable

V.Changesofcontrollingshareholderoractualcontroller

Changesofcontrollingshareholdersinthereportperiod

□Applicable√NotapplicableChangesofactualcontrollerinthereportperiod

□Applicable√Notapplicable

SectionVIII.Preferredshares

□Applicable√NotapplicableTherewerenopreferredsharesintheCompanyduringthereportperiod.

SectionIX.Bonds

√Applicable□Notapplicable

I.Enterprisebonds

□Applicable√NotapplicableTheCompanyhadnoenterprisebondsduringthereportperiod.II.Corporatebonds

√Applicable□Notapplicable

1.Basicinformationaboutcorporatebonds

Unit:RMB

Overduebonds

□Applicable√Notapplicable

2.Triggeringandimplementationofissuerorinvestoroptionclausesandinvestorprotectionclauses

□Applicable√Notapplicable

3.Adjustmentofcreditratingresultsduringthereportperiod

□Applicable√Notapplicable

4.Theimplementationandchangesofguarantees,debtrepaymentplansandotherdebtrepaymentsafeguardmeasuresduringthereportingperiod,andtheirimpactontherightsandinterestsofbondinvestors

√Applicable□NotapplicableDuringthereportperiod,theguaranteesituationof“20CSG01”andotherdebtrepaymentsafeguardmeasuresofthedebtrepaymentplanremainedunchanged,whichwereconsistentwiththerelevantcommitmentsintheprospectus.Thebasicinformationisasfollows:

I.GuaranteesituationThereisnoguaranteeforthisbond.II.Debtrepaymentplan"20CSG01"willpayinterestonceayearduringitsduration,andtheprincipalwillberepaidonceuponmaturity.Theinterestofthelastperiodwillbepaidtogetherwiththerepaymentoftheprincipal.Thepaymentdateof"20CSG01"isMarch25ofeachyearfrom2021to2023,andthepaymentdateisMarch25,2023(incaseofastatutoryholidayorrestday,itwillbepostponedtothefirsttradingdaythereafter).Ⅲ.RepaymentsafeguardsTheguaranteemeasuresfordebtrepaymentincludeconfirmingthespecializeddepartmentsandpersonnelarrangingthefundsforrepayment,strictlyimplementingtheuseoftheraisedfunds,givingfullplaytotheroleofbondtrustee,settingtherulesforbondholders'meetings,strictlyfulfillingtheobligationofinformationdisclosure,tofullyandeffectivelyprotecttheinterestsofbondholders.

III.Debtfinancinginstrumentsofnon-financialenterprises

□Applicable√NotapplicableDuringthereportperiod,theCompanydidnothavenon-financialcorporatedebtfinancinginstruments.

IV.Convertiblecorporatebonds

□Applicable√NotapplicableDuringthereportperiod,theCompanydidnothaveconvertiblecorporatebonds.V.Thelosswithinthescopeofconsolidatedstatementsinthereportingperiodexceeded10%ofthenetassetsattheendofthepreviousyear

□Applicable√Notapplicable

VI.Mainaccountingdataandfinancialindicatorsofthecompanyinrecenttwoyearsbytheendofthereportingperiod

RMB0,000

SectionX.FinancialReportI.Auditors’ReportWhethertheSemi-annualReporthasbeenauditedornot

□Yes√NoTheCompany'sSemi-annualReporthasnotbeenaudited.

II.FinancialStatementsAllfiguresintheNotestotheFinancialStatementsareinRMB.

1.ConsolidatedBalanceSheetPreparedbyCSGHoldingCo.,Ltd.

June30,2022

Unit:RMB

1.ConsolidatedBalanceSheet(continued)

PreparedbyCSGHoldingCo.,Ltd.

June30,2022

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

2.BalanceSheetoftheParentCompanyPreparedbyCSGHoldingCo.,Ltd.

June30,2022

Unit:RMB

2.BalanceSheetoftheParentCompany(continued)

PreparedbyCSGHoldingCo.,Ltd.

June30,2022

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

3.ConsolidatedIncomeStatementPreparedbyCSGHoldingCo.,Ltd.

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

4.IncomeStatementoftheParentCompanyPreparedbyCSGHoldingCo.,Ltd.

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

5.ConsolidatedCashFlowStatementPreparedbyCSGHoldingCo.,Ltd.

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

6.CashFlowStatementoftheParentCompanyPreparedbyCSGHoldingCo.,Ltd.

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:

WangWenxin

7.ConsolidatedStatementofChangesinOwners’EquityPreparedbyCSGHoldingCo.,Ltd.Amountofthecurrentperiod

Unit:RMB

7.ConsolidatedStatementofChangesinOwners’Equity(continued)PreparedbyCSGHoldingCo.,Ltd.Amountofthepreviousperiod

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:WangWenxin

8.Statementofchangesinowner'sequityoftheparentcompanyPreparedbyCSGHoldingCo.,Ltd.Amountofthecurrentperiod

Unit:RMB

8.Statementofchangesinowner'sequityoftheparentcompany(continued)PreparedbyCSGHoldingCo.,Ltd.Amountofthepreviousperiod

Unit:RMB

LegalRepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinPrincipalofthefinancialdepartment:WangWenxin

III.BasicInformationoftheCompanyCSGHoldingCoLtd(the“Company”)wasincorporatedinSeptember1984,knownasChinaSouthGlassCompany,asajointventureenterprisebyHongKongChinaMerchantsShippingCo.,LTD(香港招商局轮船股份有限公司),ShenzhenBuildingMaterialsIndustryCorporation(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).TheCompanywasregisteredinShenzhen,GuangdongProvinceofthePeople'sRepublicofChinaanditsheadquartersislocatedinShenzhen,GuangdongProvinceofthePeople'sRepublicofChina.TheCompanyissuedRMB-denominatedordinaryshares(“A-share”)andforeignshares(“B-share”)publiclyinOctober1991andJanuary1992respectively,andwaslistedonShenzhenStockExchangeonFebruary1992.AsatJune30,2022,theregisteredcapitalwasRMB3,070,692,107,withnominalvalueofRMB1pershare.TheCompanyanditssubsidiaries(collectivelyreferredtoasthe“Group”)aremainlyengagedinthemanufactureandsalesofflatglass,specializedglass,engineeringglass,energysavingglass,siliconrelatedmaterials,polysiliconandsolarcomponentsandelectronic-gradedisplaydeviceglassandtheconstructionandoperationofphotovoltaicplantetc.ThefinancialstatementswereauthorizedforissuebytheBoardofDirectorsonAugust29,2022.DetailsonthemajorsubsidiariesincludedintheconsolidatedscopeincurrentyearwerestatedintheNote.IV.Basisofthepreparationoffinancialstatements

1.Basisofpreparation

ThefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprises-BasicStandard,andthespecificaccountingstandardsandotherrelevantregulationsissuedbytheMinistryofFinanceon15February2006andinsubsequentperiods(hereaftercollectivelyreferredtoas“theAccountingStandardforBusinessEnterprises”or“CAS”),andInformationDisclosureRuleNo.15forCompanieswithPublicTradedSecurities-FinancialReportingGeneralProvisionissuedbyChinaSecurityRegulatoryCommission.

2.Goingconcern

Thisfinancialreportispreparedonthebasisofgoingconcern.

V.Summaryofsignificantaccountingpoliciesandaccountingestimates

TheGroupdeterminesitsspecificaccountingpoliciesandaccountingestimatestomanufacturingandoperationfeature.Itmainlyreflectedinexpectedcreditimpairmentlossesofreceivableswasmeasured,inventorycostingmethod,Depreciationoffixedassetsandamortizationofintangibleassets,criteriafordeterminingcapitaliseddevelopmentexpenditure,andtimingforrevenuerecognition.RefertothenotesfordetailsofthekeyjudgementsadoptedbytheGroupinapplyingimportantaccountingpolicies.

1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprisesThefinancialstatementsoftheCompanyforthefirsthalfyearof2022trulyandcompletelypresentthefinancialpositionasofJune30,2022andtheoperatingresults,cashflowsandotherinformationforthefirsthalfyearof2022oftheGroupandtheCompanyincompliancewiththeAccountingStandardsforBusinessEnterprises.

2.Accountingperiod

TheCompany’saccountingyearstartson1Januaryandendson31December.

3.OperatingcycleTheCompany’soperatingcyclestartson1Januaryandendson31December.

4.RecordingcurrencyTherecordingcurrencyisRenminbi(RMB).

5.Businesscombinations(a)BusinesscombinationsinvolvingentitiesundercommoncontrolTheconsiderationpaidandnetassetsobtainedbytheabsorbingpartyinabusinesscombinationaremeasuredatbookvalue.Ifthemergedpartywasacquiredbytheultimatecontrollingpartyfromathirdpartyinthepreviousyear,theassetsandliabilitiesofthemergedparty(includingthegoodwillformedbytheultimatecontrollingparty’sacquisitionofthemergedparty).Thedifferencebetweenbookvalueofthenetassetsobtainedfromthecombinationandbookvalueoftheconsiderationpaidforthecombinationistreatedasanadjustmenttocapitalsurplus(sharepremium).Ifthecapitalsurplus(sharepremium)isnotsufficienttoabsorbthedifference,theremainingbalanceisadjustedagainstretainedearnings.Costsdirectlyattributabletothecombinationareincludedinprofitorlossintheperiodinwhichtheyareincurred.Transactioncostsassociatedwiththeissueofequityordebtsecuritiesforthebusinesscombinationareincludedintheinitiallyrecognisedamountsoftheequityordebtsecurities.

(b)BusinesscombinationsinvolvingenterprisesnotundercommoncontrolThecostofcombinationandidentifiablenetassetsobtainedbytheacquirerinabusinesscombinationaremeasuredatfairvalueattheacquisitiondate.Wherethecostofthecombinationexceedstheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedasgoodwill;wherethecostofcombinationislowerthantheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceisrecognisedinprofitorlossforthecurrentperiod.Costsdirectlyattributabletothecombinationareincludedinprofitorlossintheperiodinwhichtheyareincurred.Transactioncostsassociatedwiththeissueofequityordebtsecuritiesforthebusinesscombinationareincludedintheinitiallyrecognisedamountsoftheequityordebtsecurities.

6.Preparationmethodofconsolidatedfinancialstatements

TheconsolidatedfinancialstatementscomprisethefinancialstatementsoftheCompanyandallofitssubsidiaries.SubsidiariesareconsolidatedfromthedateonwhichtheGroupobtainscontrolandarede-consolidatedfromthedatethatsuchcontrolceases.Forasubsidiarythatisacquiredinabusinesscombinationinvolvingenterprisesundercommoncontrol,itisincludedintheconsolidatedfinancialstatementsfromthedatewhenit,togetherwiththeCompany,comesundercommoncontroloftheultimatecontrollingparty.Theportionofthenetprofitsrealisedbeforethecombinationdateispresentedseparatelyintheconsolidatedincomestatement.Inpreparingtheconsolidatedfinancialstatements,wheretheaccountingpoliciesandtheaccountingperiodsoftheCompanyandsubsidiariesareinconsistent,thefinancialstatementsofthesubsidiariesareadjustedinaccordancewiththeaccountingpoliciesandtheaccountingperiodoftheCompany.Forsubsidiariesacquiredfrombusinesscombinationsinvolvingenterprisesnotundercommoncontrol,theindividualfinancialstatementsofthesubsidiariesareadjustedbasedonthefairvalueoftheidentifiablenetassetsattheacquisitiondate.Allsignificantintra-groupbalances,transactionsandunrealisedprofitsareeliminatedintheconsolidatedfinancialstatements.Theportionofsubsidiaries’equityandtheportionofasubsidiaries’netprofitsandlossesandcomprehensiveincomesfortheperiodnotattributabletoCompanyarerecognisedasminorityinterestsandpresentedseparatelyintheconsolidatedfinancialstatementsunderequity,netprofitsandtotalcomprehensiveincomerespectively.UnrealisedprofitsandlossesresultingfromthesalesofassetsbytheCompanytoitssubsidiariesarefullyeliminatedagainstnetprofitattributabletoshareholdersoftheparentcompany.UnrealisedprofitsandlossesresultingfromthesalesofassetsbyasubsidiarytotheCompanyareeliminatedandallocatedbetweennetprofitattributabletoshareholdersoftheparentcompanyandnon-controllinginterestsinaccordancewiththeallocationproportionoftheparentcompanyinthesubsidiary.Unrealisedprofitsandlossesresultingfromthesalesofassetsbyonesubsidiarytoanotherareeliminatedandallocatedbetweennetprofitattributabletoshareholdersoftheparentcompanyandnon-controllinginterestsinaccordancewiththeallocationproportionoftheparentinthesubsidiary.Afterthecontroloverthesubsidiaryhasbeengained,wholeorpartialminorityequitiesofthesubsidiaryownedbyminorityshareholdersareacquiredfromthesubsidiary’sminorityshareholders.Intheconsolidatedfinancialstatements,thesubsidiary'sassetsandliabilitiesarereflectedwithamountbasedoncontinuouscalculationstartingfromtheacquisitiondateorconsolidationdate.Capitalsurplusisadjustedaccordingtothedifferencebetweennewlyincreasedlong-termequityinvestmentarisingfromacquisitionofminorityequityandtheshareofnetassetscalculatedbasedoncurrentshareholdingratiothattheparentcompanyisentitledto.

Theshareissubjecttocontinuouscalculationstartingfromtheacquisitiondateorconsolidationdate.Ifthecapitalsurplus(capitalpremiumorsharecapitalpremium)isnotsufficienttoabsorbthedifference,theremainingbalanceisadjustedagainstretainedearnings.IftheaccountingtreatmentofatransactionwhichconsiderstheGroupasanaccountingentityisdifferentfromthatconsiderstheCompanyoritssubsidiariesasanaccountingentity,itisadjustedfromtheperspectiveoftheGroup.

7.CriteriafordeterminingcashandcashequivalentsCashandcashequivalentsrefertocashinhand,depositsthatcanbeusedforpaymentatanytime,andinvestmentswithshortholdingperiods,strongliquidity,easyconversionintoknownamountsofcash,andlowriskofvaluechanges.

8.Translatingofforeigncurrencyoperationsandforeigncurrencyreportform(a)ForeigncurrencytransactionForeigncurrencytransactionsaretranslatedintoRMBusingtheexchangeratesprevailingatthedatesofthetransactions.Onthebalancesheetdate,monetaryitemsdenominatedinforeigncurrenciesaretranslatedintoRMBusingthespotexchangeratesonthebalancesheetdate.Exchangedifferencesarisingfromthesetranslationsarerecognisedinprofitorlossforthecurrentperiod,exceptforthoseattributabletoforeigncurrencyborrowingsthathavebeentakenoutspecificallyfortheacquisitionorconstructionofqualifyingassets,whicharecapitalisedaspartofthecostofthoseassets.Non-monetaryitemsdenominatedinforeigncurrenciesthataremeasuredathistoricalcostsaretranslatedatthebalancesheetdateusingthespotexchangeratesatthedateofthetransactions.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.(b)ConversionofforeigncurrencyfinancialstatementsTheassetandliabilityitemsinthebalancesheetsforoverseasoperationsaretranslatedatthespotexchangeratesonthebalancesheetdate.Amongtheshareholders’equityitems,theitemsotherthan“undistributedprofits”aretranslatedatthespotexchangeratesofthetransactiondates.Theincomeandexpenseitemsintheincomestatementsofoverseasoperationsaretranslatedatthespotexchangeratesofthetransactiondates.Thedifferencesarisingfromtheabovetranslationarepresentedseparatelyintheshareholders’equity.Thecashflowsofoverseasoperationsaretranslatedatthespotexchangeratesonthedatesofthecashflows.Theeffectofexchangeratechangesoncashispresentedseparatelyinthecashflowstatement.

9.FinancialinstrumentAfinancialinstrumentisanycontractthatgivesrisetoafinancialassetofoneentityandafinancialliabilityorequityinstrumentofanotherentity.AfinancialassetorafinancialliabilityisrecognisedwhentheGroupbecomesapartytothecontractualprovisionsoftheinstrument.(a)Financialassets(i)ClassificationandmeasurementBasedonthebusinessmodelformanagingthefinancialassetsandthecontractualcashflowcharacteristicsofthefinancialassetsfinancialassetsareclassifiedas:(1)financialassetsatamortisedcost;(2)financialassetsatfairvaluethroughothercomprehensiveincome;(3)financialassetsatfairvaluethroughprofitorloss.Thefinancialassetsaremeasuredatfairvalueatinitialrecognition.Relatedtransactioncoststhatareattributabletotheacquisitionofthefinancialassetsareincludedintheinitiallyrecognisedamounts,exceptforthefinancialassetsatfairvaluethroughprofitorloss,therelatedtransactioncostsofwhicharerecogniseddirectlyinprofitorlossforthecurrentperiod.Accountsreceivableornotesreceivablearisingfromsalesofproductsorrenderingofservices(excludingorwithoutregardtosignificantfinancingcomponents)areinitiallyrecognisedattheconsiderationthatisentitledtobechargedbytheGroupasexpected.DebtinstrumentsThedebtinstrumentsheldbytheGrouprefertotheinstrumentsthatmeetthedefinitionoffinancialliabilitiesfromtheperspectiveoftheissuer,andaremeasuredinthefollowingways.

Measuredatamortisedcost

TheobjectiveoftheGroup'sbusinessmodelistoholdthefinancialassetstocollectthecontractualcashflows,andthecontractualcashflowcharacteristicsareconsistentwithabasiclendingarrangement,whichgivesriseonspecifieddatestothecontractualcashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.Theinterestincomeofsuchfinancialassetsisrecognisedusingtheeffectiveinterestmethod.Suchfinancialassetsmainlycomprisecashatbankandonhandplacementswithandloanstobanksandotherfinancialinstitutionsmeasuredatamortisedcost,accountsreceivable,factoringreceivables,loansandadvances,otherreceivablesandlong-termreceivables.Long-termreceivablesthatareduewithinoneyear(inclusive)asfromthebalancesheetdateareincludedinthecurrentportionofnon-currentassets.Financialassetsatfairvaluethroughothercomprehensiveincome:

TheobjectiveoftheGroup'sbusinessmodelistoholdthefinancialassetstocollectthecontractualcashflowsandsellingastargetandthecontractualcashflowcharacteristicsareconsistentwithabasiclendingarrangement.Suchfinancialassetsaremeasuredatfairvalueandtheirchangesareincludedinothercomprehensiveincome,butimpairmentlossesorgains,exchangegainsandlosses,andinterestincomecalculatedbytheeffectiveinterestratemethodareallincludedinthecurrentprofitandloss.Suchfinancialassetsmainlycomprise-receivablefinancingandotherfinancialdebtinvestment.Otherfinancialdebtinvestmentthatareduewithinoneyear(inclusive)asfromthebalancesheetdateareincludedinthecurrentportionasothercurrentassets.Measuredatfairvaluethroughprofitorloss:

DebtinstrumentsheldbytheGroupthatarenotdividedintothoseatamortisedcost,orthosemeasuredatfairvaluethroughothercomprehensiveincome,aremeasuredatfairvaluethroughprofitorlossandincludedinfinancialassetsheldfortrading.Atinitialrecognition,theGroupdesignatesaportionoffinancialassetsasatfairvaluethroughprofitorlosstoeliminateorsignificantlyreduceanaccountingmismatch.Financialassetsthatareduewithinoneyear(inclusive)asfromthebalancesheetdateandareexpectedtobeheldoveroneyearareincludedinothernon-currentfinancialassets.EquityinstrumentsInvestmentsinequityinstruments,overwhichtheGrouphasnocontrol,jointcontrolorsignificantinfluence,aremeasuredatfairvaluethroughprofitorlossunderfinancialassetsheldfortrading;investmentsinequityinstrumentsexpectedtobeheldoveroneyearasfromthebalancesheetdateareincludedinothernon-currentfinancialassets.Inaddition,aportionofcertaininvestmentsinequityinstrumentsnotheldfortradingaredesignatedasfinancialassetsatfairvaluethroughothercomprehensive-incomeunderotherinvestmentsinequityinstruments.Therelevantdividendincomeofsuchfinancialassetsisrecognisedinprofitorlossforthecurrentperiod.(ii)ImpairmentTheGroupconfirmsthelossprovisionbasedonexpectedcreditlossesforfinancialassetsmeasuredatamortisedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome,andfinancialguaranteecontracts.basedonexpectedcreditlosses(ECL)andrecognizesallowancesforlosses.Givingconsiderationtoreasonableandsupportableinformationonpastevents,currentconditionsandforecastsoffutureeconomicconditions,aswellasthedefaultriskweight,theexpectedcreditlosswasconfirmed.Oneachbalancesheetdate,theexpectedcreditlossesoffinancialinstrumentsatdifferentstagesaremeasuredrespectively.12-monthECLprovisionisrecognisedforfinancialinstrumentsinStage1thathavenothadasignificantincreaseincreditrisksinceinitialrecognition;lifetimeECLprovisionisrecognisedforfinancialinstrumentsinStage2thathavehadasignificantincreaseincreditriskyetwithoutcreditimpairmentsinceinitialrecognition;andlifetimeECLprovisionisrecognisedforfinancialinstrumentsinStage3thathavehadcreditimpairmentsinceinitialrecognition.Forthefinancialinstrumentswithlowercreditriskonthebalancesheetdate,theGroupassumesthereisnosignificantincreaseincreditrisksinceinitialrecognitionandrecognisesthe12-monthECLprovision.ForthefinancialinstrumentsinStage1,Stage2andwithlowercreditrisk,theGroupcalculatestheinterestincomebyapplyingtheeffectiveinterestratetothegrosscarryingamount(beforedeductionoftheimpairmentprovision).Forthefinancialinstrumentin-Stage3,theinterestincomeiscalculatedbyapplyingtheeffectiveinterestratetotheamortisedcost(afterdeductionoftheimpairmentprovisionfromthegrosscarryingamount).Fornotesandaccountsreceivablesandfactoringreceivablesarisingfromdailybusinessactivitiessuchassellingcommoditiesandprovidinglaborservices,theGrouprecognisesthelifetimeexpectedcreditlossprovisionregardlessofwhetherthereexistsasignificantfinancingcomponent.

Incasetheexpectedcreditlossesofanindividuallyassessedfinancialassetcannotbeevaluatedwithreasonablecost,theGroupdividesthereceivablesintocertaingroupingsbasedoncreditriskcharacteristics,andcalculatestheexpectedcreditlossesforthegroupings.Basisfordeterminedgroupingsandmethodforprovisionareasfollows:

Fornotesandaccountsreceivablesandreceivablefinancingarisingfromdailybusinessactivitiessuchassellingcommoditiesandprovidinglaborservices,theGroupreferstohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions.Inadditiontonotesreceivable,factoringreceivablesandotherreceivablesclassifiedasacombination,theGroupreferstohistoricalcreditlossexperience,combinescurrentconditionsandpredictionsoffutureeconomicconditions,andpassesdefaultriskexposureandfuture12Theexpectedcreditlossratewithinamonthortheentiredurationiscalculatedastheexpectedcreditloss.TheGrouprecognisesthelossprovisionmadeorreversedintoprofitorlossforthecurrentperiod.Fordebtinstrumentsthatareheldatfairvalueandwhosechangesareincludedinothercomprehensiveincome,theGroupadjustsothercomprehensiveincomewhileaccountingforimpairmentlossesorgainsinthecurrentprofitorloss.(iii)DerecognitionAfinancialassetisderecognisedwhenanyofthebelowcriteriaismet:(1)thecontractualrightstoreceivethecashflowsfromthefinancialassetexpire;(2)thefinancialassethasbeentransferredandtheGrouptransferssubstantiallyalltherisksandrewardsofownershipofthefinancialassettothetransferee;or(3)thefinancialassethasbeentransferredandtheGrouphasnotretainedcontrolofthefinancialasset,althoughtheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialasset.(b)FinancialliabilitiesFinancialliabilitiesareclassifiedasfinancialliabilitiesatamortisedcostandfinancialliabilitiesatfairvaluethroughprofitorlossatinitialrecognition.TheGroup'sfinancialliabilitiesaremainlycomprisefinancialliabilitiesatamortisedcost,includingbillspayable,accountspayable,andotherpayables.Thistypeoffinancialliabilityisinitiallymeasuredatitsfairvalueafterdeductingtransactioncosts,andissubsequentlymeasuredusingtheactualinterestratemethod.Ifthematurityislessthanoneyear(includingoneyear),itislistedascurrentliabilities;Thosewithamaturityoflessthanoneyear(includingoneyear)arelistedascurrentliabilities;thosewithamaturityofmorethanoneyearbutduewithinoneyear(includingoneyear)fromthebalancesheetdatearelistedasnon-currentliabilitiesduewithinoneyear.Therestarelistedasnon-currentliabilities.Afinancialliabilityisderecognisedorpartlyderecognisedwhentheunderlyingpresentobligationisdischargedorpartlydischarged.Thedifferencebetweenthecarryingamountofthederecognisedpartofthefinancialliabilityandtheconsiderationpaidisrecognisedinprofitorlossforthecurrentperiod.(c)DeterminationoffairvalueoffinancialinstrumentsThefairvalueofafinancialinstrumentthatistradedinanactivemarketisdeterminedatthequotedpriceintheactivemarket.Thefairvalueofafinancialinstrumentthatisnottradedinanactivemarketisdeterminedbyusingavaluationtechnique.Invaluation,theGroupadoptsvaluationtechniquesapplicableinthecurrentsituationandsupportedbyadequateavailabledataandotherinformation,selectsinputswiththesamecharacteristicsasthoseofassetsorliabilitiesconsideredinrelevanttransactionsofassetsorliabilitiesbymarketparticipants,andgivesprioritytotheuseofrelevantobservableinputs.Whenrelevantobservableinputsarenotavailableorfeasible,unobservableinputsareadopted.

10.Inventories(a)ClassificationInventoriesrefertomanufacturingsector,includingrawmaterials,workinprogress,finishedgoodsandturnovermaterials,andaremeasuredatthelowerofcostandnetrealisablevalue.(b)IssuedInventorycostingmethodCostisdeterminedusingtheweightedaveragemethod.Thecostoffinishedgoodsandworkinprogresscompriserawmaterials,directlabourandsystematicallyallocatedproductionoverheadbasedonthenormalproductioncapacity.(c)AmortisationmethodsoflowvalueconsumablesandpackagingmaterialsTurnovermaterialsincludelowvalueconsumablesandpackagingmaterials,whichareexpensedwhenissued.(d)ThedeterminationofnetrealisablevalueandthemethodofprovisionfordeclineinthevalueofinventoriesProvisionfordeclineinthevalueofinventoriesisdeterminedattheexcessamountofbookvaluesoftheinventoriesovertheirnetrealisablevalue.Netrealisablevalueisdeterminedbasedontheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcoststocompletionandestimatedcostsnecessarytomakethesaleandrelatedtaxes.(e)TheGroupadoptstheperpetualinventorysystem.

11.AssetsclassifiedasheldforsaleAnon-currentassetoradisposalgroupisclassifiedasheldforsalewhenallofthefollowingconditionsaresatisfied:(1)thenon-currentassetorthedisposalgroupisavailableforimmediatesaleinitspresentconditionsubjecttotermsthataretraditionallyandcustomaryforsales;(2)theGrouphasmadearesolutionandobtainedappropriateapprovalfordisposalofthenon-currentassetorthedisposalgroup,andthetransferistobecompletedwithinoneyear.Non-currentassets(exceptforfinancialassets,investmentpropertiesatfairvalueanddeferredtaxassets)thatmeettherecognitioncriteriaforheldforsalearerecognizedattheamountequaltothelowerofthefairvaluelesscoststosellandbookvalue.Thedifferencebetweenfairvaluelesscoststosellandcarryingamount,shouldbepresentedasimpairmentloss.Suchnon-currentassetsandassetsincludedindisposalgroupsasclassifiedasheldforsaleareaccountedforascurrentassets;whileliabilitiesincludedindisposalgroupsclassifiedasheldforsaleareaccountedforascurrentliabilities,andarepresentedseparatelyinthebalancesheet.AdiscontinuedoperationisacomponentoftheGroupthateitherhasbeendisposedoforisclassifiedasheldforsale,andisseparatelyidentifiableoperationallyandforfinancialreportingpurposes,andsatisfiesoneofthefollowingconditions:(1)representsaseparatemajorlineofbusinessorgeographicalareaofoperations;(2)ispartofasinglecoordinatedplantodisposeofaseparatemajorlineofbusinessorgeographicalareaofoperations;and(3)isasubsidiaryacquiredexclusivelywithaviewtoresale.Thediscontinuedoperationprofitsonincomestatementpresentationhaveincludedtheprofitsandlossofoperationanddisposal.

12.Long-termequityinvestmentsLong-termequityinvestmentscomprisetheCompany’slong-termequityinvestmentsinitssubsidiaries,andtheGroup’slong-termequityinvestmentsinitsassociates.SubsidiariesaretheinvesteesoverwhichtheCompanyisabletoexercisecontrol.AssociatesaretheinvesteesthattheGrouphassignificantinfluenceontheirfinancialandoperatingpolicies.InvestmentsinsubsidiariesaremeasuredusingthecostmethodintheCompany’sfinancialstatements,andadjustedbyusingtheequitymethodwhenpreparingtheconsolidatedfinancialstatements.Investmentsinassociatesareaccountedforusingtheequitymethod.(a)Initialrecognitionofinvestmentcost

Forlong-termequityinvestmentsformedinbusinesscombination:whenobtainedfrombusinesscombinationsinvolvingentitiesundercommoncontrol,thelong-termequityinvestmentisstatedatcarryingamountofequityforthecombinedpartiesatthetimeofmerger;whenthelong-termequityinvestmentobtainedfrombusinesscombinationsinvolvingentitiesnotundercommoncontrol,theinvestmentismeasuredatcombinationcost.Forlong-termequityinvestmentsnotformedinbusinesscombination:theonepaidbycashisinitiallymeasuredatactualpurchaseprice;thelong-terminvestmentobtainedbyissuingequitysecuritiesisstatedatfairvalueofequitysecuritiesasinitialinvestmentcost..(b)SubsequentmeasurementandrecognitionofrelatedprofitorlossForlong-termequityinvestmentsaccountedforusingthecostmethod,theyaremeasuredattheinitialinvestmentcosts,andcashdividendsorprofitdistributiondeclaredbytheinvesteesarerecognisedasinvestmentincomeinprofitorloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thelong-termequityinvestmentismeasuredattheinitialinvestmentcost;wheretheinitialinvestmentcostislessthantheGroup’sshareofthefairvalueoftheinvestee’sidentifiablenetassetsattheacquisitiondate,thedifferenceisincludedinprofitorlossandthecostofthelong-termequityinvestmentisadjustedupwardsaccordingly.Undertheequitymethod,theGrouprecognisestheinvestmentincomeaccordingtoitsshareofnetprofitorlossoftheinvestee.TheGroupdiscontinuesrecognisingitsshareofthenetlossesofaninvesteeafterbookvaluesofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartoftheinvestor’snetinvestmentintheinvesteearereducedtozero.However,iftheGrouphasobligationsforadditionallossesandthecriteriawithrespecttorecognitionofprovisionsundertheaccountingstandardsoncontingenciesaresatisfied,theGroupcontinuesrecognisingtheinvestmentlossesandtheprovisions.Forchangesinowners’equityoftheinvesteeotherthanthosearisingfromitsnetprofitorloss,itsproportionateshareisdirectlyrecordedintocapitalsurplus,providedthattheproportionoftheshareholdingoftheGroupintheinvesteeremainsunchanged.BookvalueoftheinvestmentisreducedbytheGroup’sshareoftheprofitdistributionorcashdividendsdeclaredbyaninvestee.Theunrealisedprofitsorlossesarisingfromtheintra-grouptransactionsamongsttheGroupanditsinvesteesareeliminatedinproportiontotheGroup’sequityinterestintheinvestees,andthenbasedonwhichtheinvestmentgainsorlossesarerecognised.AnylossesresultingfromtransactionsbetweentheGroupanditsinvesteesattributabletoassetimpairmentlossesarenoteliminated.(c)Basisfordeterminingexistenceofcontrol,jointlycontrolorsignificantinfluenceoverinvesteesTheterm"control"referstothepowerintheinvestees,toobtainvariablereturnsbyparticipatingintherelatedbusinessactivitiesoftheinvestees,andtheabilitytoaffectthereturnsbyexercisingitspowerovertheinvestees.Theterm"significantinfluence"referstothepowertoparticipateintheformulationoffinancialandoperatingpoliciesofanenterprise,butnotthepowertocontrol,orjointlycontrol,theformulationofsuchpolicieswithotherparties.(d)Impairmentoflong-termequityinvestmentsBookvalueoflong-termequityinvestmentsinsubsidiariesandassociatesisreducedtotherecoverableamountwhentherecoverableamountislessthanbookvalue.

13.InvestmentpropertyInvestmentpropertyincludesleasedlanduserights,landuserightsheldandprovidedfortotransferafterappreciationandleasedbuildingandconstruction.Investmentpropertiesareinitiallymeasuredatacquisitioncost.ThecostofoutsourcingInvestmentpropertyincludesthepurchaseprice,relevanttaxesandotherexpendituresthatcanbedirectlyattributabletotheasset;thecostofself-builtInvestmentpropertyisdeterminedbytheconstructionoftheasset.Thecompositionofthenecessaryexpendituresincurredbeforetheusablestate.Investmentpropertyadoptsthefairvaluemodelforsubsequentmeasurementwithoutdepreciationoramortization.Onthebalancesheetdate,thebookvalueoftheinvestmentpropertiesareinitiallymeasuredatacquisitioncostisadjustedbasedonthefairvalueoftheinvestmentpropertiesareinitiallymeasuredatacquisitioncost.Thedifferencebetweenthefairvalueandtheoriginalbookvalue

willbecalculatedintothecurrentprofitandloss.WhentheuseofanInvestmentpropertyischangedtoself-use,theinvestmentpropertyisconvertedintofixedassetsorintangibleassetsfromthedateofchange,andthebookvalueandfairvalueofthefixedassetsandintangibleassetsaredeterminedbasedonthefairvalueoftheinvestmentpropertyontheconversiondate.Thedifferencewiththeoriginalbookvalueoftheinvestmentpropertyisincludedinthecurrentprofitandloss.Whenthepurposeofself-userealestateischangedtoearningrentorcapitalappreciation,fromthedateofchange,thefixedassetsorintangibleassetsareconvertedintoinvestmentpropertiesareinitiallymeasuredatacquisitioncost,andthefairvalueonthedayofconversionisusedasthebookvalueoftheinvestmentpropertiesareinitiallymeasuredatacquisitioncost,andthefairvalueonthedayofconversionIfthevalueislessthantheoriginalbookvalueoffixedassetsandintangibleassets,thedifferenceisincludedinthecurrentprofitandloss.Ifthefairvalueonthedayofconversionisgreaterthantheoriginalbookvalueoffixedassetsandintangibleassets,thedifferenceisincludedinothercomprehensiveincome.Whenaninvestmentpropertyisdisposedoforpermanentlywithdrawnfromuseanditisexpectedthatnoeconomicbenefitscanbeobtainedfromitsdisposal,theconfirmationoftheinvestmentrealestateshallbeterminated.Thedisposalincomefromthesale,transfer,scrappingordestructionofinvestmentrealestateshalldeductitsbookvalueandrelevanttaxesandshallbeincludedinthecurrentprofitsandlosses.Ifthereisanamountincludedinothercomprehensiveincomeontheoriginalconversiondate,itwillalsobecarriedforwardandincludedinthecurrentprofitandloss.

14.Fixedassets

(1)RecognitionconditionFixedassetscomprisebuildings,machineryandequipment,motorvehiclesandothers.FixedassetsarerecognizedwhenitisprobablethattherelatedeconomicbenefitswillprobablyflowtotheGroupandthecostscanbereliablymeasured.FixedassetspurchasedorconstructedbytheGroupareinitiallymeasuredatcostattheacquisitiondate.SubsequentexpendituresincurredforafixedassetareincludedinthecostofthefixedassetwhenitisprobablethattheassociatedeconomicbenefitswillflowtotheGroupandtherelatedcostcanbereliablymeasured.Bookvalueofthereplacedpartisderecognized.Alltheothersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.

(2)DepreciationmethodsFixedassetsaredepreciatedusingthestraight-linemethodtoallocatethecostoftheassetstotheirestimatedresidualvaluesovertheirestimatedusefullives.Forthefixedassetsthathavebeenprovidedforimpairmentloss,therelateddepreciationchargeisprospectivelydeterminedbasedupontheadjustedcarryingamountsovertheirremainingusefullives.Theestimatedusefullives,theestimatednetresidualvaluesexpressedasapercentageofcostandtheannualdepreciationratesoffixedassetsareasfollows:

Theestimatedusefullife,theestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedtotheassetarereviewed,andadjustedasappropriateateachyear-end.

(3)Bookvalueofafixedassetisreducedtotherecoverableamountwhentherecoverableamountisbelowbookvalue.

(4)DisposalAfixedassetisderecognizedondisposalorwhennofutureeconomicbenefitsareexpectedfromitsuseordisposal.Theamountofproceedsfromdisposalsonsale,transfer,retirementordamageofafixedassetnetofitscarryingamountandrelatedtaxesandexpensesisrecognizedinprofitorlossforthecurrentperiod.

15.Constructioninprogress

Constructioninprogressisrecordedatactualcost.Actualcostcomprisesconstructioncost,installationcost,borrowingcostseligibleforcapitalisedconditionandnecessaryexpendituresincurredforitsintendeduse.Actualcostalsoincludesnetoftrialproductioncostandtrialproductionincomebeforeconstructioninprogressisputintoproduction.Constructioninprogressistransferredtofixedassetswhentheassetsarereadyfortheirintendeduse,anddepreciationbeginsfromthefollowingmonth.Bookvalueofconstructioninprogressisreducedtotherecoverableamountwhentherecoverableamountisbelowbookvalue.

16.Borrowingcosts

Theborrowingcostsincurredbythegroupthataredirectlyattributabletotheacquisitionandconstructionofanassetthatneedsasubstantiallylongperiodoftimeforitsintendedusecommencetobecapitalisedandrecordedaspartofthecostoftheassetwhenexpendituresfortheassetandborrowingcostshavebeenincurred,andtheactivitiesrelatingtotheacquisitionandconstructionthatarenecessarytopreparetheassetforitsintendedusehavecommenced.Thecapitalisationofborrowingcostsceaseswhentheassetunderacquisitionorconstructionbecomesreadyforitsintendeduseandtheborrowingcostsincurredthereafterarerecognizedinprofitorlossforthecurrentperiod.Capitalisationofborrowingcostsissuspendedduringperiodsinwhichtheacquisitionorconstructionofafixedassetisinterruptedabnormallyandtheinterruptionlastsformorethan3months,untiltheacquisitionorconstructionisresumed.Forthespecificborrowingsobtainedfortheacquisitionorconstructionofanassetqualifyingforcapitalisation,theamountofborrowingcostseligibleforcapitalisationisdeterminedbytheamountofinterestexpensesactuallyincurredinthecurrentperiodofspecialborrowingdeductinganyinterestincomeearnedfromdepositingtheunusedspecificborrowingsinthebanksoranyinvestmentincomearisingonthetemporaryinvestmentofthoseborrowingsduringthecapitalisationperiod.Forthegeneralborrowingsobtainedfortheacquisitionorconstructionofanassetqualifyingforcapitalisation,theamountofborrowingcostseligibleforcapitalisationisdeterminedbyapplyingtheweightedaverageeffectiveinterestrateofgeneralborrowings,totheweightedaverageoftheexcessamountofcumulativeexpendituresontheassetovertheamountofspecificborrowings.Theeffectiveinterestrateistherateatwhichtheestimatedfuturecashflowsduringtheperiodofexpecteddurationoftheborrowingsorapplicableshorterperiodarediscountedtotheinitialamountoftheborrowings.

17.Intangibleassets

(1)Valuationmethod,usefullifeandimpairmenttestIntangibleassets,mainlyincludinglanduserights,patentsandproprietarytechnologies,exploitationrightsandothers,aremeasuredatcost.(a)LanduserightsLanduserightsareamortisedonthestraight-linebasisovertheirapproveduseperiodof30to70years.Iftheacquisitioncostsofthelanduserightsandthebuildingslocatedthereoncannotbereasonablyallocatedbetweenthelanduserightsandthebuildings,alloftheacquisitioncostsarerecognizedasfixedassets.(b)PatentsandproprietarytechnologiesPatentsandproprietarytechnologiesareamortisedonastraight-linebasisovertheestimateduselife.(c)Exploitationrights

Exploitationrightsareamortisedonastraight-linebasisoverpermittedexploitationperiodsontheexploitationcertificate.(d)PeriodicalreviewofusefullifeandamortizationmethodForanintangibleassetwithafiniteusefullife,reviewofitsusefullifeandamortizationmethodisperformedateachyear-end,withadjustmentmadeasappropriate.(e)ImpairmentofintangibleassetsBookvalueofintangibleassetsisreducedtotherecoverableamountwhentherecoverableamountisbelowbookvalue.

(2)AccountingpolicyforinternalresearchanddevelopmentexpenditureTheexpenditureonaninternalresearchanddevelopmentprojectisclassifiedintoexpenditureontheresearchphaseandexpenditureonthedevelopmentphasebasedonitsnatureandwhetherthereismaterialuncertaintythattheresearchanddevelopmentactivitiescanformanintangibleassetatendoftheproject.Expenditureontheresearchphaserelatedtoplannedsurvey,evaluationandselectionforresearchonmanufacturingtechniqueisrecognizedinprofitorlossintheperiodinwhichitisincurred.Priortomassproduction,expenditureonthedevelopmentphaserelatedtothedesignandtestingphaseinregardstothefinalapplicationofmanufacturingtechniqueiscapitalisedonlyifallofthefollowingconditionsaresatisfied:

?thedevelopmentofmanufacturingtechniquehasbeenfullydemonstratedbytechnicalteam;?managementhasapprovedthebudgetforthedevelopmentofmanufacturingtechnique;?thereareresearchandanalysisofpre-marketresearchexplainingthatproductsmanufacturedwithsuchtechniquearecapableofmarketing;?Thereissufficienttechnicalandcapitaltosupportthedevelopmentofmanufacturingtechniqueandsubsequentmassproduction;andtheexpenditureonmanufacturingtechniquedevelopmentcanbereliablygathered.Otherdevelopmentexpendituresthatdonotmeettheconditionsabovearerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Developmentcostspreviouslyrecognizedasexpensesarenotrecognizedasanassetinasubsequentperiod.Capitalisedexpenditureonthedevelopmentphaseispresentedasdevelopmentcostsinthebalancesheetandtransferredtointangibleassetsatthedatethattheassetisreadyforitsintendeduse.

18.Impairmentoflong-termassetsInvestmentproperties,fixedassets,constructioninprogress,intangibleassetswithfiniteusefullivesandlong-termequityinvestmentsinjointventuresandassociatesaretestedforimpairmentifthereisanyindicationthattheassetsmaybeimpairedatthebalancesheetdate;intangibleassetsnotreadyfortheirintendedusearetestedatleastannuallyforimpairment,irrespectiveofwhetherthereisanyindicationthattheymaybeimpaired.Iftheresultoftheimpairmenttestindicatesthattherecoverableamountofanassetislessthanitscarryingamount,aprovisionforimpairmentandanimpairmentlossarerecognizedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Provisionforassetimpairmentisdeterminedandrecognizedontheindividualassetbasis.Ifitisnotpossibletoestimatetherecoverableamountofanindividualasset,therecoverableamountofagroupofassetstowhichtheassetbelongsisdetermined.Agroupofassetsisthesmallestgroupofassetsthatisabletogenerateindependentcashinflows.Goodwillthatisseparatelypresentedinthefinancialstatementsistestedatleastannuallyforimpairment,irrespectiveofwhetherthereisanyindicationthatitmaybeimpaired.Inconductingthetest,bookvalueofgoodwillisallocatedtotherelatedassetgroupsorgroupsofassetgroupswhichareexpectedtobenefitfromthesynergiesofthebusinesscombination.Iftheresultofthetestindicatesthattherecoverableamountofanassetgrouporgroupofassetgroups,includingtheallocatedgoodwill,islowerthanitscarryingamount,thecorrespondingimpairmentlossisrecognized.Theimpairmentlossisfirstdeductedfrombookvalueofgoodwillthatisallocatedtotheassetgrouporgroupofassetgroups,andthendeductedfrombookvaluesofotherassetswithintheassetgroupsorgroupsofassetgroupsinproportiontobookvaluesofassetsotherthangoodwill.Oncetheaboveassetimpairmentlossisrecognized,itwillnotbereversedforthevaluerecoveredinthesubsequentperiods.

19.Long-termprepaidexpensesLong-termprepaidexpensesincludetheexpendituresthathavebeenincurredbutshouldberecognisedasexpensesovermorethanoneyearinthecurrentandsubsequentperiods.Long-termprepaidexpensesareamortisedonthestraight-linebasisovertheexpectedbeneficialperiodandarepresentedatactualexpenditurenetofaccumulatedamortisation.

20.EmployeebenefitsEmployeebenefitsincludeshort-termemployeebenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefitsprovidedinvariousformsofconsiderationinexchangeforservicerenderedbyemployeesorcompensationsfortheterminationofemploymentrelationship.

(1)Accountingtreatmentmethodofshort-termemployeebenefitsShort-termemployeebenefitsincludewagesorsalaries,bonuses,allowancesandsubsidies,staffwelfare,medicalcare,workinjuryinsurance,maternityinsurance,housingfunds,labourunionfunds,employeeeducationfundsandpaidshort-termleave,etc.Theemployeebenefitliabilitiesarerecognizedintheaccountingperiodinwhichtheserviceisrenderedbytheemployees,withacorrespondingchargetotheprofitorlossforthecurrentperiodorthecostofrelevantassets.Employeebenefitswhicharenon-monetarybenefitsshallbemeasuredatfairvalue.

(2)Accountingtreatmentmethodofpost-employmentbenefitsTheGroupclassifiespost-employmentbenefitplansaseitherdefinedcontributionplansordefinedbenefitplans.Definedcontributionplansarepost-employmentbenefitplansunderwhichtheGrouppaysfixedcontributionsintoaseparatefundandwillhavenoobligationtopayfurthercontributions;anddefinedbenefitplansarepost-employmentbenefitplansotherthandefinedcontributionplans.Duringthereportingperiod,theGroup'spost-employmentbenefitsmainlyincludebasicpensionsandunemploymentinsurance,bothofwhichbelongtothedefinedcontributionplans.

(3)BasicpensionsTheGroup’semployeesparticipateinthebasicpensionplansetupandadministeredbylocalauthoritiesofMinistryofHumanResourceandSocialSecurity.Monthlypaymentsofpremiumsonthebasicpensionsarecalculatedaccordingtoprescribedbasesandpercentagebytherelevantlocalauthorities.Whenemployeesretire,locallabourandsocialsecurityinstitutionshaveadutytopaythebasicpensioninsurancetothem.Theamountsbasedontheabovecalculationsarerecognizedasliabilitiesintheaccountingperiodinwhichtheservicehasbeenrenderedbytheemployees,withacorrespondingchargetotheprofitorlossforthecurrentperiodorthecostofrelevantassets.

(4)AccountingtreatmentofdismissalbenefitsTheGroupprovidescompensationforterminatingtheemploymentrelationshipwithemployeesbeforetheendoftheemploymentcontractsorasanoffertoencourageemployeestoacceptvoluntaryredundancybeforetheendoftheemploymentcontracts.TheGrouprecognizesaliabilityarisingfromcompensationforterminationoftheemploymentrelationshipwithemployees,withacorrespondingchargetoprofitorlossattheearlierofthefollowingdates:1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseofanemploymentterminationplanoracurtailmentproposal;2)whentheGrouprecognizescostsorexpensesrelatedtotherestructuringthatinvolvesthepaymentofterminationbenefits.Thedismissalbenefitsexpectedtobepaidwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.

21.EstimatedliabilitiesCurrentobligationsarisingfromenterpriserestructuring,productqualityassurance,onerouscontracts,etc.arerecognizedasestimatedliabilitieswhentheperformanceofsuchobligationsislikelytoleadtotheoutflowofeconomicbenefitsandtheamountcanbemeasuredreliably.Aprovisionisinitiallymeasuredatthebestestimateoftheexpenditurerequiredtosettletherelatedpresentobligation.Factorssurroundingacontingency,suchastherisks,uncertaintiesandthetimevalueofmoney,aretakenintoaccountasawholeinreachingthebestestimateofaprovision.Wheretheeffectofthetimevalueofmoneyismaterial,thebestestimateisdeterminedbydiscountingtherelatedfuturecashoutflows.Theincreaseinthediscountedamountoftheprovisionarisingfrompassageoftimeisrecognizedasinterestexpense.Bookvalueofprovisionisreviewedateachbalancesheetdateandadjustedtoreflectthecurrentbestestimate.Theprovisionsexpectedtobepaidwithinoneyearsincethebalancesheetdateareclassifiedascurrentliabilities.

22.Share-basedpaymentsShare-basedpaymentsaredividedintoequity-settledandcash-settledpayments.Theterm"equity-settledshare-basedpayment"referstoatransactioninwhichanenterprisegrantssharesorotherequityinstrumentsasaconsiderationinreturnforservices.Equity-settledshare-basedpaymentTheGroup‘sstockoptionstockoptionplanistheequity-settledshare-basedpaymentinexchangeofemployees'servicesandismeasuredatthefairvalueoftheequityinstrumentsatgrantdate.Theequityinstrumentsareexercisableafterservicesinvestingperiodarecompletedorspecifiedperformanceconditionsaremet.Inthevestingperiod,theservicesobtainedincurrentperiodareincludedinrelevantcostandexpensesatthefairvalueoftheequityinstrumentsatgrantdatebasedonthebestestimateofthenumberofexercisableequityinstruments,andcapitalsurplusisincreasedaccordingly.TheGroupmakesthebestestimateofthenumberofvestingequityinstrumentsbasedonthelatestobtainedchangesinthenumberofvestedemployees,whethertherequiredperformanceconditionsaremet,andotherfollow-upinformation.Ifthesubsequentinformationindicatesthenumberofexercisableequityinstrumentsdiffersfromthepreviousestimate,anadjustmentismadeand,ontheexercisedate,theestimateisrevisedtoequalthenumberofactualvestedequityinstruments.Intheperiodatwhichperformanceconditionsandtermofservicearemet,therelevantcostandexpensesofequity-settledpaymentshouldberecognized,andcapitalsurplusisincreasedaccordingly.Beforetheexercisedate,theaccruingamountsofequity-settledpaymentsonbalancesheetdatereflectthepartofexpiredwaitingperiodandoptimalestimationforthenumberoftheCompanyfinalvestedequityinstruments.Ifthenon-marketconditionsandtermofservicearenotmetsothatshare-basedpaymentfailtoexercise,thecostsandexpensesonthisportionshouldnotberecognized.Iftheshare-basedpaymentagreementsetsoutthemarketconditionsandtermofnon-vesting,aslongasperformanceconditionsandtermofservicearemet,itisshouldberegardasexercisableright,nomatterthemarketconditionsandnon-vestingconditionsaremeetornot.Ifthetermsofequity-settledpaymentaremodified,atleasttheserviceisconfirmedinaccordancewiththeunmodifiedterms.Inaddition,theincreaseofthefairvalueoftheauthorizedequityinstruments,orthebeneficialchangestotheemployeesonthemodificationdate,theincreaseofserviceareconfirmed.Iftheequity-settledpaymentiscancelled,thecancellationdateshallbedeemedasanexpeditedexercise,andtheunconfirmedamountshallbeconfirmedimmediately.Iftheemployeeorotherpartyisabletochoosetomeetthenon-vestingconditionsbutnotsatisfiedinthewaitingperiod,equity-settledpaymentshouldbecancelled.Butifanewequityinstrumentisgranted,andthenewequityinstrumentisconfirmtoreplacetheoldequityinstrumentwhichiscanceledintheauthorizationdateofthenewequityinstrument,thenewequityinstrumentshouldbedisposedbyusingthesameconditionsandtermsoftheoldequityinstrumentformodifications.

23.Revenue

TheGrouprecognizesrevenueattheconsiderationthattheGroupisentitledtochargeasexpectedwhentheGrouphasfulfilledtheperformanceobligationsinthecontract,thatis,thecustomerobtainscontroloverrelevantgoodsorservices.(a)SalesofgoodsTheGroupmainlysellsflatandengineeringglass,productsrelatedtosolarenergy,andelectronicglassanddisplays.Fordomesticsales,theGroupdeliverstheproductstoacertainplacespecifiedinthecontract.Whenthebuyertakesoverthegoods,theGrouprecognizesrevenue.Forexportsales,theGrouprecognizestherevenuewhenitfinishedclearinggoodsforexportanddeliveringthegoodsonboardthevessel,orwhenthegoodsaredeliveredtoacertainplacespecifiedinthecontract.ThecreditperiodgrantedbytheGrouptocustomersisdeterminedbasedonthecustomer'screditriskcharacteristics,consistentwithindustrypractices,andthereisnomajorfinancingcomponent.TheGroup’sobligationtotransfergoodstocustomersforconsiderationreceivedorreceivablefromcustomersislistedascontractliabilities.Revenueispresentedasthenetamountafterdeductingsalesdiscountsandsalesreturns.(b)RenderingofservicesTheGroupprovidesexternalconsulting,loading,unloading,transportationandprocessinglaborservices,andrecognizesrevenuewithinaperiodoftimebasedontheprogressofthecompletedlabor.Theprogressofthecompletedlaborisdeterminedaccordingtotheproportionofthecostincurredtotheestimatedtotalcost.Onthebalancesheetdate,theGroupre-estimatestheprogressofcompletedlaborservicessothatitcanreflectchangesincontractperformance.WhentheGrouprecognizesrevenuebasedontheperformanceprogressofthecompletedlaborservices,theportionforwhichtheGrouphasobtainedtheunconditionalrighttoreceivepaymentsisrecognizedasaccountsreceivable,andtheremainingportionisrecognizedascontractassets,andtheCompanymeasuresthelossreserveofaccountsreceivableandcontractassets.Accordingtotheexpectedcreditloss;IfthecontractpricereceivedorreceivablebytheGroupexceedsthecompletedprogress,theexcessisrecognizedascontractliabilities.TheGrouppresentsthecontractassetsandcontractliabilitiesunderthesamecontractasanet

amount.

24.GovernmentgrantsGovernmentgrantsaretransfersofmonetaryornon-monetaryassetsfromthegovernmenttotheGroupatnilconsideration,includingtaxrefundandfinancialsubsidies,etc.AgovernmentgrantisrecognizedwhenthereisareasonableassurancethatthegrantswillbereceivedandtheGroupwillcomplywithallattachedconditions.Monetarygovernmentgrantsaremeasuredattheamountsreceivedorreceivable.Non-monetarygovernmentgrantsaremeasuredatfairvalue,ifthefairvaluecannotbereliablyobtained,itismeasuredatnominalamount.Thegovernmentgrantsrelatedtoassetsrefertogovernmentgrantobtainedbyenterprisesandusedforpurchaseandconstructionoflong-termassetsorformationoflong-termassetinotherways.Thegovernmentgrantsrelatedtoincomerefertograntsotherthanthoserelatedtoassets.Forgovernmentgrantsrelatedtoincome,wherethegrantisacompensationforrelatedexpensesorlossestobeincurredbytheGroupinthesubsequentperiods,thegrantisrecognizedasdeferredincome,andincludedinprofitorlossovertheperiodsinwhichtherelatedcostsarerecognized;wherethegrantisacompensationforrelatedexpensesorlossesalreadyincurredbytheGroup,thegrantisrecognizedimmediatelyinprofitorlossforthecurrentperiod.Thecompanyusethesamemethodofpresentationforsimilargovernmentgrants.Theordinaryactivitygovernmentgrantsshouldbecountedintooperatingprofits;thegovernmentgrantswhichnotbelongtoordinaryactivitiesshouldbecountedintonon-operatingincome.

25.Deferredtaxassets/deferredtaxliabilitiesDeferredtaxassetsanddeferredtaxliabilitiesarecalculatedandrecognizedbasedonthedifferencesarisingbetweenthetaxbasesofassetsandliabilitiesandtheircarryingamounts(temporarydifferences).Deferredtaxassetisrecognizedforthedeductiblelossesthatcanbecarriedforwardtosubsequentyearsfordeductionofthetaxableprofitinaccordancewiththetaxlaws.Nodeferredtaxliabilityisrecognizedforatemporarydifferencearisingfromtheinitialrecognitionofgoodwill.Nodeferredtaxassetordeferredtaxliabilityisrecognizedforthetemporarydifferencesresultingfromtheinitialrecognitionofassetsorliabilitiesduetoatransactionotherthanabusinesscombination,whichaffectsneitheraccountingprofitnortaxableprofit(ordeductibleloss).Atthebalancesheetdate,deferredtaxassetsanddeferredtaxliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheperiodwhentheassetisrealizedortheliabilityissettled.Deferredtaxassetsareonlyrecognizedfordeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitisprobablethattaxableprofitwillbeavailableinthefutureagainstwhichthedeductibletemporarydifferences,deductiblelossesandtaxcreditscanbeutilized.Deferredtaxliabilitiesarerecognizedfortemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociates,exceptwheretheGroupisabletocontrolthetimingofreversalofthetemporarydifference,anditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Whenitisprobablethatthetemporarydifferencesarisingfrominvestmentsinsubsidiariesandassociateswillbereversedintheforeseeablefutureandthatthetaxableprofitwillbeavailableinthefutureagainstwhichthetemporarydifferencescanbeutilized,thecorrespondingdeferredtaxassetsarerecognized.Deferredincometaxassetsanddeferredincometaxliabilitiesthatmeetthefollowingconditionsatthesametimearelistedasthenetamountafteroffset:

ThedeferredtaxesarerelatedtothesametaxpayerwithintheGroupandthesametaxationauthority;ThattaxpayerwithintheGrouphasalegallyenforceablerighttooffsetcurrenttaxassetsagainstcurrenttaxliabilities.

26.Leases

Aleasingisacontractinwhichthelessorcedestherighttouseanassettothelesseeforacertainperiodoftimeinreturnforconsideration.(a)TheGroupactsasthelesseeTheCompanyrecognizestheright-of-useassetsonthecommencementdateoftheleasetermandrecognizestheleaseliabilitiesatthepresentvalueoftheoutstandingleasepayments.Theleasepaymentsincludefixedpayments,aswellaspaymentswherethereis

reasonablecertaintythatapurchaseoptionwillbeexercisedoraleaseoptionwillbeterminated.Thevariablerentdeterminedbasedonacertainpercentageofsalesisnotincludedintheleasepayment,andisincludedinthecurrentprofitandlosswhenitactuallyoccurs.TheGroupwilllistthenon-liabilitieswithinoneyearthatleaseliabilitieswillbepaidoneyear.fromthebalancesheetdate.Onthecommencementdate,theCompanyshallinitiallymeasuretheright-of-useassetatcost.Thecostoftheright-of-useassetshallcomprisetheamountoftheinitialmeasurementoftheleaseliabilityandanyleasepaymentsmadeatorbeforethecommencementdate,andanyinitialdirectcostsincurredbythelesseeetc,lessanyleaseincentivesreceived,IfownershipoftheleasedassettransferstotheGroupattheendoftheleaseterm,depreciationiscalculatedusingtheestimatedusefullifeoftheasset.Otherwise,theright-of-useassetsaredepreciatedovertheshorteroftheleasetermandtheestimatedusefullivesoftheassets.Wherethecarryingamountofanassetoracashgeneratingunitexceedsitsrecoverableamount,theassetorcashgeneratingunitisconsideredimpairedandiswrittendowntoitsrecoverableamount.Ashort-termleaseisaleasethat,atthecommencementdate,hasaleasetermof12monthsorless,andhasalow-valueassetleases.TheGroupdoesnotrecognizetheright-of-useassetsandleaseliabilities.TheGrouprecognizesleasepaymentsonshort-termleasesandleasesoflow-valueassetsintherelatedassetcostsorprofitorlossonastraight-linebasisovertheleaseterm.TheGroupaccountsforaleasemodificationasaseparateleaseifboth:(1)themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;(2)theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepricetoreflectthecircumstancesoftheparticularcontract.Foraleasemodificationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodificationtheGroupremeasurestheleaseliabilitybydiscountingtherevisedleasepaymentsusingareviseddiscountrate.Decreasingthecarryingamountoftheright-of-useassettoreflectthepartialorfullterminationoftheleaseforleasemodificationsthatdecreasethescopeofthelease.TheGrouprecognizesinprofitorlossanygainorlossrelatingtothepartialorfullterminationofthelease.Otherleasemodificationswillremeasureleaseliabilities,andthegroupwillmakeacorrespondingadjustmenttotheright-of-useassetbookvalue.(b)TheGroupactsasthelessorAleasethattransferssubstantiallyalltherisksandrewardsassociatedwiththeownershipoftheleasedassetisafinancelease.Otherleasesareoperatingleases.(i)OperatingleaseWhentheCompanyoperatesleasedbuildings,machineryandequipment,andmeansoftransport,therentalincomefromoperatingleasesshallberecognizedinaccordancewiththestraight-linemethodduringtheleaseterm.TheCompanywillincludevariablerentdeterminedbasedonapercentageofsalesinrentalincomewhenitactuallyincurs.Foranymodificationtoanoperatinglease,theGrouptreatsitasanewleasefromtheeffectivedateofthemodification,andthereceivedorreceivableleasepaymentsrelatedtotheleasepriortothemodificationaretreatedasleasepaymentsofthenewlease.(ii)FinanceleaseOnthebeginningdateoftheleaseterm,theCompanyrecognizesthefinanceleasereceivablesforfinanceleasesandderecognizesrelatedassets.TheCompanypresentsthefinanceleasereceivablesaslong-termreceivables,andthefinanceleasereceivablesreceivedwithinoneyear(includingoneyear)fromthebalancesheetdatearepresentedasnon-currentassetsduewithinoneyear.

27.OtherimportantaccountingpoliciesandaccountingestimatesTheGroupcontinuallyEstimatesthecriticalaccountingestimatesandkeyassumptionsappliedbasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonable.Thecriticalaccountingestimatesandkeyassumptionsthathaveasignificantriskofpossiblycausingamaterialadjustmenttobookvaluesofassetsandliabilitieswithinthenextaccountingyearareoutlinedbelow:

(a)IncometaxTheGroupissubjecttoIncometaxinnumerousjurisdictions.Therearesometransactionsandeventsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.SignificantjudgementisrequiredfromtheGroupindeterminingtheprovisionforIncometaxineachofthesejurisdictions.Wherethefinalidentifiedoutcomeofthesetaxmattersisdifferentfromtheinitially-recordedamount,suchdifferencewillimpacttheincometaxexpensesanddeferredincometaxintheperiodinwhichsuchdeterminationisfinallymade.(b)DeferredincometaxEstimatesondeferredtaxassetsarebasedonestimatesonamountoftaxableincomeandapplicabletaxrateforeveryyear.RealisationofdeferredincometaxissubjecttosufficienttaxableincomethatispossibletobeobtainedbytheGroupinthefuture.Changeofthefuturetaxrateaswellasthereversedtimeoftemporarydifferencemighthaveeffectsontaxexpense(income)andthebalanceofdeferredtaxassetsorliabilities.Thoseestimatesmayalsocausesignificantadjustmentondeferredtax.(c)Impairmentoflong-termassets(excludinggoodwill)Long-termassetsatthebalancesheetdateshouldbesubjecttoimpairmenttestingifthereareanyindicationsofimpairment.Managementdetermineswhetherthelong-termassetsimpairedornotbyevaluatingandanalysingfollowingaspects:(1)whethertheeventaffectingassetsimpairmentoccurs;(2)whethertheexpectedobtainablepresentvalueoffuturecashflowsislowerthantheasset’scarryingamountbycontinuallyusingtheassetsordisposal;and(3)whethertheassumptionsusedinexpectedobtainablepresentvalueoffuturecashflowsareappropriate.Variousassumptions,includingthediscountrateandgrowthrateappliedinthemethodofpresentvalueoffuturecashflow,arerequiredinevaluatingtherecoverableamountofassets.Iftheseassumptionscannotbeconformed,therecoverableamountshouldbemodified,andthelong-termassetsmaybeimpairedaccordingly.(d)TheusefullifeoffixedassetsManagementestimatestheusefullifeoffixedassets,basedonhistoricalexperiencesonusingfixedassetsthathavesimilarpropertiesandfunctions.Whentherearedifferencesbetweenactuallyusefullifeandpreviouslyestimation,managementwilladjustestimationtousefullifeoffixedassets.Thefixedassetswouldbewrittenofforwrittendownwhenfixedassetsbeendisposedorbecameredundant.Thus,theestimatedresultbasedonexistingexperiencemaybedifferentfromtheactualresultofthenextaccountingperiod,whichmaycausemajoradjustmenttobookvalueoffixedassetsonbalancesheet.(e)GoodwillimpairmentGoodwillimpairmentreviewsareundertakenannuallyormorefrequentlyifeventsorchangesincircumstancesindicateapotentialimpairment.Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationisallocatedtoeachofthecash-generatingunits(“CGUs”),orgroupsofCGUs,andfuturecashflowfromeachCGUorCGUsisforcastedanddiscountedwithappropriatediscountrate.

28.Significantaccountingpoliciesandchangesinaccountingestimates

（

）Importantaccountingpolicychanges

√Applicable□Notapplicable

（2）Importantaccountingestimatechanges

□Applicable√Notapplicable

29.Others

（

）SafetyproductioncostsAccordingtorelevantregulationsoftheMinistryofFinanceandNationalAdministrationofWorkSafety,asubsidiaryoftheGroupwhichisengagedinproducingandsellingpolysiliconappropriatessafetyproductioncostsonfollowingbasis:

(a)4%forrevenuebelowRMB10million(inclusive)oftheyear;(b)2%fortherevenuebetweenRMB10milliontoRMB100million(inclusive)oftheyear;(c)0.5%fortherevenuebetweenRMB100milliontoRMB1billion(inclusive)oftheyear;(d)0.2%fortherevenueaboveRMB1billionoftheyear.Thesafetyproductioncostsaremainlyusedfortheoverhaul,renewalandmaintenanceofsafetyfacilities.Thesafetyproductioncostsarechargedtocostsofrelatedproductsorprofitorlosswhenappropriated,andsafetyproductioncostsinequityaccountarecreditedcorrespondingly.Whenusingthespecialreserve,iftheexpendituresareexpensesinnature,theexpensesincurredareoffsetagainstthespecialreservedirectlywhenincurred.Iftheexpendituresarecapitalexpenditures,whenprojectsarecompletedandtransferredtofixedassets,thespecialreserveshouldbeoffsetagainstthecostoffixedassets,andacorrespondingaccumulateddepreciationarerecognized.Thefixedassetsarenolongerbedepreciatedinfuture.（

）SegmentinformationTheGroupidentifiesoperatingsegmentsbasedontheinternalorganisationstructure,managementrequirementsandinternalreportingsystem,anddisclosessegmentinformationofreportablesegmentswhichisdeterminedonthebasisofoperatingsegments.AnoperatingsegmentisacomponentoftheGroupthatsatisfiesallofthefollowingconditions:(a)thecomponentisabletoearnrevenueandincurexpensesfromitsordinaryactivities;(b)whoseoperatingresultsareregularlyreviewedbytheGroup’smanagementtomakedecisionsaboutresourcestobeallocatedtothesegmentandtoassessitsperformance,and(c)forwhichtheinformationonfinancialposition,operatingresultsandcashflowsisavailabletotheGroup.Iftwoormoreoperatingsegmentshavesimilareconomiccharacteristicsandsatisfycertainconditions,theyareaggregatedintoonesingleoperatingsegment.VI.Taxation

1.Themaincategoriesandratesoftaxes

theprocessofresearchanddevelopment"and"Judgmentononerouscontracts"fromJanuary1,2022tobeimplemented.Category

2.TaxincentivesTianjinCSGEnergy-SavingGlassCo.,Ltd.(“TianjinEnergyConservation”)passedreviewonahighandnewtechenterprisein2021andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2021.DongguanCSGArchitecturalGlassCo.,Ltd.(“DongguanCSG”)passedreviewonahighandnewtechenterprisein2019andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2019.Inthe2022high-techenterprisequalificationreview,theincometaxrateof15%willbetemporarilyappliedduringthereportingperiod.WujiangCSGEastChinaArchitecturalGlassCo.,Ltd.(“WujiangCSGEngineering”)passedreviewonahighandnewtechenterprisein2020andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2020.DongguanCSGSolarGlassCo.,Ltd.(“DongguanCSGSolar”)passedreviewonahighandnewtechenterprisein2020andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2020.YichangCSGPolysiliconCo.,Ltd.(“YichangCSGPolysilicon”)passedreviewonahighandnewtechenterprisein2020andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2020.DongguanCSGPV-techCo.,Ltd.(“DongguanCSGPV-tech”)passedreviewonahighandnewtechenterprisein2019andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2019.Inthe2022high-techenterprisequalificationreview,theincometaxrateof15%willbetemporarilyappliedduringthereportingperiod.HebeiShichuangGlassCo.,Ltd.(“HebeiShichuang”)passedreviewonahighandnewtechenterprisein2019andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2019.Inthe2022high-techenterprisequalificationreview,theincometaxrateof15%willbetemporarilyappliedduringthereportingperiod.WujiangCSGGlassCo.,Ltd.(“WujiangCSG”)passedreviewonahighandnewtechenterprisein2020,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2020.XianningCSGGlassCoLtd.(“XianningCSG”)passedreviewonahighandnewtechenterprisein2020,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2020.XianningCSGEnergy-SavingGlassCo.,Ltd.(“XianningCSGEnergy-Saving”)passedreviewonahighandnewtechenterprisein2021,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2021.YichangCSGPhotoelectricGlassCo.,Ltd.(“YichangCSGPhotoelectric”)passedreviewonahighandnewtechenterprisein2021,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2021.YichangCSGDisplayCo.,Ltd(“YichangCSGDisplay”)passedreviewonahighandnewtechenterprisein2021,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2021.QingyuanCSGNewEnergy-SavingMaterialsCo.,Ltd.(“QingyuanCSGEnergy-Saving”)passedreviewonahighandnewtechenterprisein2019,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2019.Inthe2022high-techenterprisequalificationreview,theincometaxrateof15%willbetemporarilyappliedduringthereportingperiod.HebeiCSGGlassCoLtd.(“HebeiCSG”)passedreviewonahighandnewtechenterprisein2021,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2021.ShenzhenCSGAppliedTechnologyCoLtd.(“ShenzhenTechnology”)passedreviewonahighandnewtechenterprisein2021,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2021.XianningCSGPhotoelectricGlassCo.,Ltd.(“XianningPhotoelectric”)passedreviewonahighandnewtechenterprisein2019and

obtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2019.Inthe2022high-techenterprisequalificationreview,theincometaxrateof15%willbetemporarilyappliedduringthereportingperiod.DongguanCSGCrystalYuxinMaterialsCo.,Ltd.(“DongguanJingYuCompany”)passedreviewonahighandnewtechenterprisein2021andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2021.SichuanCSGEnergyConservationGlassCo.,Ltd.(“SichuanCSGEnergyConservation”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.ChengduCSGGlassCo.,Ltd.(“ChengduCSG”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.XianCSGEnergyConservationGlassCo.,Ltd.(“XianCSGEnergyConservation”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.GuangxiCSGNewEnergyMaterialsTechnologyCo.,Ltd.(“GuangxiCSGNewEnergyMaterialsCompany”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.ZhaoqingCSGNewEnergyTechnologyCo.,Ltd.(“ZhaoqingCSGNewEnergyCompany”),ZhangzhouCSGKibingPVEnergyCo.,Ltd.(“ZhangzhouCSGPVEnergy”),HeyuanCSGKibingPVEnergyCo.,Ltd.(“HeyuanCSG”),andShaoxingCSGKibingNewEnergyCo.,Ltd.(“ShaoxingCSGNewEnergy”),XianningCSGPVEnergyCo.,Ltd.(“XianningPVEnergy”),ZhanjiangCSGNewEnergyCo.,Ltd.(“ZhanjiangPVEnergy”),arepublicinfrastructureprojectspeciallysupportedbythestateinaccordancewiththeArticle87inImplementingRegulationsoftheLawofthePeople'sRepublicofChinaonEnterpriseIncomeTax,andcanenjoythetaxpreferentialpolicyof“three-yearexemptionsandthree-yearhalves”,thatis,startingfromthetaxyearwhenthefirstrevenuefromproductionandoperationoccurs,theenterpriseincometaxisexemptedfromthefirsttothethirdyear,whilehalfoftheenterpriseincometaxiscollectedforthefollowingthreeyears.

3.Others

SomesubsidiariesoftheGrouphaveusedthe“exempt,credit,refund”methodongoodsexportedandtherefundrateis0%-13%。

VII.Notestotheconsolidatedfinancialstatements

1.Cashatbankandonhand

Unit:RMB

2.Tradingfinancialassets

Unit:RMB

3.Notesreceivable

（1）Notesreceivablelistedbyclassification

Unit:RMB

Unit:RMB

Provisionforbaddebtsontheindividualbasis:

Unit:RMB

（

）Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiod

Provisionforbaddebtsinthecurrentperiod:

Unit:RMB

（

）Attheendoftheperiod,thecompanytransferredthebillstoaccountsreceivableduetothefailureofthedrawertoperform

Unit:RMB

4.Accountsreceivable

（1）Accountsreceivabledisclosedbycategory

Unit:RMB

Provisionforbaddebtsontheindividualbasis:

Unit:RMB

Provisionforbaddebtsbyportfolio:

Unit:RMB

Disclosurebytheagingofaccountsreceivable

Unit:RMB

（

）Provisionforbaddebtsaccrued,recoveredorreversedinthecurrentperiodProvisionforbaddebtsinthecurrentperiod:

Unit:RMB

（

）Accountsreceivableactuallywrittenoffinthecurrentperiod

Unit:RMB

（4）Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty

Unit:RMB

5.Receivablesfinancing

Unit:RMB

6.Advancestosuppliers（

）Listedbyaginganalysis

Unit:RMB

（2）Top5oftheclosingbalanceoftheadvancestosupplierscollectedaccordingtothetarget

Unit:RMB

7.Otherreceivables

Unit:RMB

（1）Otherreceivables1）Classificationofotherreceivablesbynature

Unit:RMB

(i)ItistheprepaymentformaterialsofthesubsidiaryYingdeCBMMiningCo.,Ltd.Theprepaymentsaccountsweretransferredtootherreceivablesandtheprovisionofthebaddebtswasprovidedindividually.

）Withdrawalofbaddebtprovision

Unit:RMB

3）Disclosurebytheagingofotherreceivables

Unit:RMB

4）Provisionforbaddebtswithdrawn,recoveredorreversedduringthereportperiodProvisionforbaddebts:

Unit:RMB

）Otherreceivablesactuallywrittenoffinthecurrentperiod

Unit:RMB

）Top5oftheclosingbalanceoftheotheraccountsreceivablecollatedaccordingtothearrearsparty

Unit:RMB

8.Inventories

（1）Inventoryclassification

Unit:RMB

（2）Provisionfordeclineinthevalueofinventories

单位：元

9.Othercurrentassets

Unit:RMB

10.Investmentproperty

（1）Investmentrealestateusingcostmeasurementmodel

□Applicable√Notapplicable

（2）Investmentpropertywithfairvaluemeasurementmode

√Applicable□Notapplicable

Unit:RMB

11.Fixedassets

Unit:RMB

（1）Particularsoffixedassets

Unit:RMB

（

）Fixedassetswithpendingcertificatesofownership

Unit:RMB

12.Constructioninprocess

Unit:RMB

(1)Particularsofconstructioninprocess

Unit:RMB

(2)Changesinimportantconstructionprojectsinthecurrentperiod

Unit:RMB

13.Rightofuseassets

Unit:RMB

14.Intangibleassets

(1)Particularsofintangibleassets

Unit:RMB

Attheendoftheperiod,theintangibleassetsarisingfrominternalresearchanddevelopmentaccountedfor20.07%oftotalofintangibleassets.

(2)Landuserightswithoutpropertyrightcertificates

Unit:RMB

AsatJune30,2022,ownershipcertificatesoflanduseright(“LandownershipCertificates”)forcertainlanduserightsoftheGroupwithcarryingamountsofapproximatelyRMB4,903,343(cost:RMB6,685,352)hadnotyetbeenobtainedbytheGroup(asatDecember31,2021,carryingamount:RMB4,963,913,cost:RMB6,685,352).TheCompany’smanagementisoftheviewthatthereisnolegalrestrictionfortheGrouptoapplyforandobtaintheLandOwnershipCertificatesandhasnoadverseeffectontheGroup’sbusinessoperation.

15.Developmentexpenditure

Unit:RMB

DuringJan.-Jun.2022,thetotalamountofresearchanddevelopmentexpendituresoftheGroupwasRMB293,587,416(Jan.-Jun.2021:RMB235,137,041),includingRMB265,877,930(Jan.-Jun.2021:RMB224,886,882)recordedinincomestatementforcurrentperiodandtheresearchanddevelopmentexpenditurewiththeamountofRMB8,010,026recognizedasintangibleassetsforthecurrentperiod(Jan.-Jun.2021:1,247,970).AtJune30,2022,theintangibleassetsarisingfrominternalresearchanddevelopmentaccountedfor20.07%oftotalofintangibleassets(31December2021:20.47%).

16.Goodwill

(1)Bookvalueofgoodwill

Unit:RMB

(2)Goodwillimpairmentprovision

Unit:RMB

17.Long-termprepaidexpenses

Unit:RMB

18.Deferredincometaxassets/deferredincometaxliabilities

(1)Unoffsetdeferredincometaxassets

Unit:RMB

(2)Unoffsetdeferredincometaxliabilities

Unit:RMB

(3)Thenetbalancesofdeferredtaxassetsorliabilities

Unit:RMB

(4)Detailsofunrecognizeddeferredincometaxassets

Unit:RMB

(5)Deductiblelossesofunrecognizeddeferredincometaxassetswillduethefollowingyears

Unit:RMB

19.Othernon-currentassets

Unit:RMB