CSGHOLDINGCO.,LTD.

SEMI-ANNUALREPORT2025

ChairmanoftheBoard:

CHENLIN

August2025

SectionI.ImportantNotice,ContentandParaphraseBoardofDirectorsandtheSupervisoryCommitteeofCSGHoldingCo.,Ltd.(hereinafterreferredtoastheCompany)anditsdirectors,supervisorsandseniorexecutivesherebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeallresponsibilities,individualandjoint,forthefacticity,accuracyandcompletenessofthewholecontents.Ms.ChenLin,personinchargeoftheCompany,Ms.WangWenxin,responsiblepersoninchargeofaccountingandMs.WangWenxin,principalofthefinancialdepartment(accountingofficer)confirmthattheFinancialReportenclosedinthesemi-annualreportoftheCompanyistrue,accurateandcomplete.AlldirectorswerepresentatthemeetingoftheBoardfordeliberatingthesemi-annualreportoftheCompanyinperson.Thefutureplansandotherforward-lookingstatementsmentionedinthisreportdonotconstituteamaterialcommitmentoftheCompanytoinvestors.Investorsandrelevantpartiesshouldpayattentiontoinvestmentrisks,andunderstandthedifferencesbetweenplans,forecastsandcommitments.TheCompanyhasdescribedtheriskfactorsandcountermeasuresoftheCompany'sfuturedevelopmentindetailinthisreport.PleaserefertoSectionIII.ManagementDiscussionandAnalysis.TheCompanyisrequiredtocomplywiththedisclosurerequirementsof"Non-metallicBuildingMaterialsRelatedBusiness"inthe"Self-regulatoryGuidelinesforListedCompaniesontheShenzhenStockExchangeNo.3-IndustryInformationDisclosure.TheCompanyhasnoplansofcashdividenddistribution,bonussharesbeingsentorconvertingcapitalreserveintosharecapital.ThisreportispreparedbothinChineseandEnglish.ShouldtherebeanyinconsistencybetweentheChineseandEnglishversions,theChineseversionshallprevail.

Content

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

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

SectionIII.ManagementDiscussionandAnalysis..............................................................................8

SectionIV.CorporateGovernance,EnvironmentandSociety..........................................................28

SectionV.ImportantEvents..............................................................................................................32

SectionVI.ChangesinSharesandParticularsaboutShareholders..................................................56

SectionVII.Bonds.............................................................................................................................62

SectionVIII.FinancialReport...........................................................................................................64

SectionIX.OtherReportedInformation..........................................................................................157

DocumentsavailableforReference

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

Paraphrase

Item

SectionII.CompanyProfile&FinancialHighlights

I.CompanyProfile

Shortformofthestock

II.Person/Waytocontact

III.Otherinformation

1.WayofcontactWhetherregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompanychangedinthereportperiodornot

□Applicable√NotapplicableTheregisteredaddress,officeaddressandtheirpostalcodes,websiteaddressandemailaddressoftheCompanydidnotchangeinthereportperiod.MoredetailscanbefoundinAnnualReport2024.

2.InformationdisclosureandpreparationplaceWhetherinformationdisclosureandpreparationplacechangedinthereportperiodornot

□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbyCSRCfordisclosingsemi-annualreportandpreparationplaceofsemi-annualreportdidnotchangeinthereportperiod.MoredetailscanbefoundinAnnualReport2024.

3.OtherrelevantinformationWhetherotherrelevantinformationchangedinthereportperiodornot

□Applicable√NotapplicableIV.Mainaccountingdataandfinancialindexes

Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdata

□Yes√No

Thereportperiod(Jan.toJun.2025)

V.Differenceofaccountingdataunderdomesticandoverseasaccountingstandards

1.DifferencesofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderinternationalandChineseaccountingstandards

□Applicable√NotapplicableNosuchdifferencesinthereportperiod.

2.DifferenceofthenetprofitandnetassetsdisclosedinfinancialreportpreparedunderoverseasandChineseaccountingstandards

□Applicable√NotapplicableNosuchdifferencesinthereportingperiod.VI.Itemsandamountsofnon-recurringgainsandlosses

√Applicable□Notapplicable

Unit:RMB

accruedforimpairmentofassets)

Particularsaboutothergainsandlossesthatmeetthedefinitionofnon-recurringgainsandlosses:

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

□Applicable√NotapplicableItdidnotexistthatnon-recurringprofitandlossitemslistedinthe"ExplanatoryAnnouncementNo.1onInformationDisclosureofCompaniesOfferingSecuritiestothePublic-Non-recurringProfitandLoss"weredefinedasrecurringprofitandlossitemsinthereportperiod.

SectionIII.ManagementDiscussionandAnalysis

I.MainbusinessoftheCompanyduringthereportperiod

(I)MainbusinessoftheCompany

CSGisaleadingdomesticbrandofenergy-savingglassandarenownedbrandofsolarPVproductsanddisplaydevices.Itsproductsandtechnologiesarewell-knownathomeandabroad.ItsmainbusinessincludesR&D,manufacturingandsalesofhigh-qualityfloatglass,architecturalglass,photovoltaicglass,newmaterialsandinformationdisplayproductssuchasultra-thinelectronicglassanddisplaydevices,aswellasrenewableenergyproductssuchassiliconmaterials,photovoltaiccellsandmodules,anditprovidesone-stopservicesforphotovoltaicpowerstationprojectdevelopment,construction,operationandmaintenance,etc.TheCompanyownsquartzsandrawmaterialprocessingandproductionbasesinJiangyou,Sichuan;Qingyuan,Guangdong;Fengyang,Anhui;andBeihai,Guangxi,whichensureasteadysupplyofrawmaterialsfortheCompany'sglassproduction.PhotovoltaicglassbusinessCSGenteredthephotovoltaicglassmanufacturingindustryin2005.AsoneoftheearliestenterprisesengagedinmanufacturinginthisfieldinChina,theCompanyisbasedonindependentresearchanddevelopmentandhasformedafullclosed-loopproductioncapacityfromphotovoltaicglassoriginalsheetproductiontodeepprocessing,covering

1.6-4mmthicknessdeepprocessingproducts.Withnearly20yearsofexperienceintheproductionofphotovoltaicglass,CSGhasaccumulatedasolidfoundationinkeyequipmentandtechnologiessuchaskiln,calendaringanddeepprocessing,anditsproductqualityenjoysahighstatusandreputationintheindustry,andhasbecomeanimportantandevenstrategiccooperativesupplierofglobalmoduleleadingenterprises.Inthecontextoftheeraofcarbonpeakandcarbonneutrality,theCompanyisfirmlyoptimisticaboutthelong-termdevelopmentofthephotovoltaicnewenergyindustry,resolutelyrespondstothenational"dualcarbon"strategicgoal,andcontinuouslyimprovesandenhancesthelarge-scalelayoutandbusinesscompetitivenessoftheGroup'sphotovoltaicglassonthebasisofrelyingonthenational"14thFive-YearPlan"andtheCompany'sownstrategicdevelopmentplan.AsofJune2025,theCompanyhasatotalof9photovoltaicrolledglassoriginalsheetproductionkilnsandsupportingdeepprocessingproductionlinesinDongguan,Wujiang,Fengyang,XianningandBeihai,ofwhichthesecondkilnandsupportingprocessinglinesinBeihai,Guangxiareinthetrialproductionstageandwillfurtherimprovethescaleadvantagewhenputintoofficialoperation.Affectedbytheglobalenergytransition,technologicaliterationinthephotovoltaicindustryhasaccelerated.CSG'sphotovoltaicglassbusinesshasdemonstrateddistinctadvantagesacrossmultipledimensionsincludingproductionprocessinnovation,productR&Dphilosophy,andmarketapplicationawareness,thankstoitsprofoundtechnologicalexpertise,forminguniquetechnologicalstrength.Inthefirsthalfof2025,thefocusofthephotovoltaicglassbusinesswastobuildcorecompetitiveness.Ontheonehand,CSGachievedbreakthroughsinthethreeflagshipproductsofultra-high-transmittancedouble-coatedglass,colorlessdouble-coatedglass,andanti-glareglass,andextendedtheirapplication.Ontheotherhand,CSGdesignedasounddifferentiatedcompetitionprogrambasedonitsoperationalrealitiesandbuiltadevelopmentsystemintegratingtechnologicalinnovation,intelligentmanufacturing,andvalue-

addedservicesinthefullimplementationoftheprogram,whichfurtherenhancedCSG'scorecompetitiveedgeasatechnology-leadingsupplierinthephotovoltaicglassindustry.ArchitecturalglassbusinessAsoneofthelargesthigh-endbuildingenergy-savingglasssuppliersinChina,CSGintegratesR&Danddesign,technicalconsulting,productionandmanufacturing,andmarketingandserviceinthearchitecturalglassbusiness.Italwaysaimsto"buildgreenenergy-savingproductsandcreatequalitylife"andformsaCSGbrandimagewithquality,serviceandcontinuousR&Dasitscorecompetitiveness,whichisstronglycompetitiveinforeignmarketsaswell.TheCompanyhastheworld'sleadingglassdeepprocessingequipmentandtestinginstruments,anditsproductscoverallkindsofengineeringandarchitecturalglass.Currently,theCompanyhassevendeepprocessingbasesofenergy-savingglassinTianjin,Dongguan,Xianning,Wujiang,Chengdu,ZhaoqingandXi'an,andthelayoutofbasesacrossthecountryisbeingperfected.CSG'sarchitecturalglassbusinessadherestothecustomizedbusinessstrategyoftrinityoftechnicalservice,marketing,R&Dandmanufacturing,relyingonitsownmanufacturingandR&Dstrength,aswellasthemarketingandservicenetworkformedbydomesticandoverseasoffices,tomeetthepersonalizedneedsofdomesticandforeigncustomersandconstructionprojects.TheCompany'sR&Dandapplicationlevelincoatingtechnologykeeppacewiththeworld,thehigh-endproducttechnologyisinternationallyleading,andthehigh-qualityenergy-savingandenvironmentallyfriendlyLOW-Einsulatingglasscontinuestoleadthedomestichigh-endmarketshare.In2017,CSG'slow-EcoatedglasswasawardedthetitleofSingleChampionProductbytheMinistryofIndustryandInformationTechnology,anditpassedthereviewagaininMarch2024,whichfullyprovestheleadingpositionofCSG'sarchitecturalglassintheindustry.Underthebackgroundofthe"dualcarbon"goalandthenationalgreenenergy-savingbuildingrequirements,theCompanyhastakentheleadinindependentlydevelopingmanyenergy-savingproducts,suchasinnovativeandworld-leading"IceKirin"glassseriesproducts,thermalinsulationproducts,BIPVproducts,etc.,amongwhichthe"IceKirin"glassseriesproductshavereceivedunanimouspraisefromthemarketfortheirhighperformanceandstabilityrelyingontheCompany'sadvancedcoatingtechnology,andhavebecomethebenchmarkinthedomesticproductmarket.TheinnovationandR&Dofenergy-savingproductswithhigherenergyefficiencyisimportanttotheenergyconservationandemissionreductionofnewlyconstructedbuildingsandtheenergy-conservation-orientedtransformationofexistingbuildings.Inordertomeetthemarketdemandforproductinnovation,theCompanywillcontinuetoconductinnovation,soastoprovidequalityproductswithhigherenergyefficiencyforthemarket.TheCompany'squalitymanagementsystemforengineeringandarchitecturalglasshasbeenapprovedbyorganizationsofUKAOQCandAustraliaQAS.TheproductqualitywhichmeetsthenationalstandardsoftheUS,theUKandAustraliaenablesCSGhasanadvantageintheinternationaltenderingandbidding.Since1988,CSG'sengineersandtechnicianshavebeencontinuouslyparticipatingintheformulationandcompilationofvariousnationalstandardsandindustrystandards.Allkindsofhigh-qualityengineeringarchitecturalglassprovidedbytheCompanyarewidelyusedinlandmarkbuildingssuchasmajorcityCBDsandtransportationhubsathomeandabroad,whicharetoonumeroustomention.Inaddition,theCompanyhasalwaysadheredtotheintelligenttransformationanddigitaltransformationasthekeyincrementofthedevelopmentofarchitecturalglassbusiness.Ithascontinuouslyinvestedandaccumulatedrich

experienceintheresearchofproductionautomation,intellectualization,informationtechnologyandequipment,andtheefficiencyimprovementofintelligentupgradingandtransformationoftraditionalequipment.Throughtechnologicalprogressandprocessoptimization,theCompanyhaseffectivelyreducedproductionmanpowerconsumption,materialconsumptionandenergyconsumption,activelypromotingtheCompany'stransformationandupgradingtoachieveintensivemanufacturingandhigh-qualitydevelopment.FloatglassbusinessInthefieldoffloatglass,CSGhas10advancedfloatglassproductionlinesinDongguan,Chengdu,Langfang,WujiangandXianning.Inthefirsthalfof2025,oneproductionlineofChengduFloatCompanywasputbackintoproductionafteracoldrepair,oneproductionlineofWujiangFloatCompanywasshutdownforrenovation,andanotherproductionlinewasputintotrialproductionafteracoldrepair.AsofJune2025,thereareatotalof8productionlinesinproduction.Theproductscoverhigh-qualityfloatglasswithvariousthicknessesandspecificationsof1.6-25mm.Theproportionofdifferentiatedglassproductswithspecialspecificationsandspecialapplicationscenariossuchasultra-white,ultra-thin,ultra-thickandultra-longislarge,whicharewidelyusedinhigh-endbuildingcurtainwalls,decorationandfurniture,reflectors,automobilewindshields,scannersandphotocopierstransmittingplates,homeappliancepanels,displayprotectionandotherapplicationfieldswithhighrequirementsonglassquality.Withhigh-qualityproductsandstablesupply,CSGhasestablishedlong-termandstablebusinesscooperationwithmanywell-knownprocessingenterprises.Theprofitlevelofthefloatglassbusinessisgenerallypositivelycorrelatedwiththelevelofrealestatecompletiondata,andisalsoaffectedbymultiplefactorssuchascurrentenergyandrawmaterialprices,productstructure,andenterprisemanagementlevel.Differentiatedglassproductshavehigheraddedvalueduetospecificapplicationscenarios,higherproductionprocessdifficulties,andrelativelyproactivepricingbymanufacturers.Inresponsetothedownwardpressureonthemarket,theCompanyfocusesonimprovingmanagementefficiency,improvingthelevelofleanproductionofconventionalproducts,firmlyimplementingthedifferentiatedcompetitionstrategy,carefullycultivatinganddevelopingdifferentiatedproductmarkets,andcontinuouslyincreasingtheproportionofdifferentiatedproductsinsales,soastocontinuouslyconsolidateandenhancetheindustrycompetitivenessoftheCompany’sfloatglassbusiness.Inthefirsthalfof2025,thenewconstructionandcompletionvolumeinthedomesticrealestatesectorshowedacontinueddecline,thesupplyanddemandrelationshipintherealestatemarketchanged,andthemarketdemandforarchitecturalglasssloweddown.However,withtherapiddevelopmentofemergingindustriessuchasnewenergyvehiclesinChina,thedemandforindustrialglasssuchasautomotiveglasshasincreasedyear-on-year.Duetoadecliningrealestatemarket,thefloatglassindustrywasundergoingcyclicaladjustments.However,withthecontinuouspromotionofthenational"dualcarbon"policyandtheimprovementofpeople'slivingstandards,themarketdemandfordifferentiatedproductsisrelativelystable.ElectronicglassanddisplaybusinessUpon15yearsofdevelopment,CSGElectronicGlasshasalwaysadheredtotechnologyleadership,attachedimportancetoR&Dandinnovation,brokenthroughmarketbarrierswithindependentintellectualpropertyrightsandindependentinnovation,andfirmlyfollowedthedevelopmentrouteofqualitypriority.After15yearsofcontinuouscultivationandaccumulation,CSGElectronicGlasshasfullycoveredvariousapplicationscenariosandthehigh,

mediumandlow-endmarketsoftheseapplicationscenarios.Itactivelyexploresnewmarketsanddevelopednewapplicationsinintelligentconsumerelectronicsterminals,touchcomponents,automotivewindowglass,vehicledisplays,medicalequipment,industrialcontrolcommercialdisplays,smarthomesandotherapplicationfields,andthemarketshareandbrandeffectoftheCompany'smedium-aluminaandhigh-aluminaelectronicglassproductshavebeensteadilyimproving.CSGhaslongbeencommittedtobecominganindustry-leadingproviderofhigh-endelectronicglass,anditwillcontinuetodevelopnewapplicationmaterialsinthefieldsofsmarthome,vehicledisplay,advancedmedical,newenergyvehicles,andsmarthomeappliancesinthefuture.Inthetouchdisplayfield,CSGhasformedacompletetouchindustrychainfromvacuummagnetronsputteringcoating,3A(AG,AR,andAF)coverplateprocessingandfinepatternlithographyprocessing,totouchdisplaymodules.Themainbusinessincludesopticalcoatingmaterials,vehicle-mountedcoverplatesandvehicle-mountedtouchpanels.Amongthem,theopticalcoatingmaterialsegmentincludesthetwobusinesstypesofITOconductiveglassandITOconductivefilm,andtheproductsarepositionedatmiddleandhigh-endcustomersathomeandabroadandareconcentratedindifferentiatedhigh-value-addedones.Thevehicle-mountedcoverplatebusinesssegmentcomprisesavarietyofproducts,includingvehicle-mountedAGglass,vehicle-mountedrearviewmirrorcoatedcoverplates,vehicle-mounted2A(ARandAF)coverplates,vehicle-mounted3Acoverplates,andcustomizedcoverplatesofspecialfunctions.Theseproductsaresuppliedindirectlytorenowneddomesticandinternationalautomotivebrandsthroughdownstreamcustomersofvehicle-mounteddevicemanufacturers.SolarenergybusinessCSGisoneofthefirstpolycrystallinesiliconmanufacturersinChinaandoneofthefirstentitiesselectedintheMinistryofIndustryandInformationTechnology'scompliancelist.Itparticipatedintheformulationofthenationalstandardandtestingstandardof"Electronic-gradePolycrystallineSilicon".CSGhasbuiltacompleteindustrialchaincoveringhigh-puritycrystallinesilicon,siliconwafers,solarcells,modulesandphotovoltaicpowerplants.Ithasthreenational-levelscientificresearchplatformsandsevenprovincial-leveltechnologyplatforms,includingthe"NationalandLocalJointEngineeringLaboratoryforSemiconductorSiliconMaterialPreparationTechnology"andthe"NationalEnterpriseTechnologyCenter".Withthefurtherimplementationofthe"dualcarbon"strategy,competitioninthephotovoltaicindustryhasbecomeincreasinglyfierce.Inresponse,CSG’sphotovoltaicsubsidiariesfullyimplementtheplanningsoftheGroup.Yichangbaseisacceleratingitslow-energy-consumingproject,Qinghaibaseiscarryingonwithitshigh-puritycrystallinesiliconproject,Dongguanbasefocusesonmarketdevelopmentfordifferentiatedproducts,andShenzhenbaseisvigorouslyworkingonitspowerstationproject.AlltheseeffortsareexpectedtoenhanceCSG’smarketcompetitivenessinanall-roundmanner.

(II)Overviewofoperationduringthereportperiod

Inthefirsthalfof2025,undertheimpactofmultiplefactorssuchasthecomplicatedandvolatileinternationaleconomicsituation,increasingtradebarriers,deepadjustmentofthedomesticrealestatesectoraswellasaccelerateddeclineinthepricesthroughoutthephotovoltaicindustryduetoperiodicalsupply-demandimbalance,theoverallsituationoftheindustriesthattheCompanyengagedinwassevere,thepressureontheenterprises’productionand

operationincreased,andtheoperationalqualityandefficiencyoftheindustrywasunderstress.Withtheupsanddownsoftheeconomicenvironment,theCompanymaintaineditsstrategicfocusandactivelyrespondedtothemarketchanges,analyzedthemarketandindustrydynamicsinatimelymanner,dulyadjustedthebusinessstrategies,andfullyimplementedleanmanagementandcostreductionandefficiencyincreasetoachievemaximumcontrolofvariouscosts.Meanwhile,theCompanygavefullplaytoitsadvantagesofscaleandindustrialchain,deepenedthedifferentiatedbusinessstrategy,andstrivedtomaximizetheeconomicbenefits.Inthefirsthalfof2025,theCompany’soperatingrevenuetotalledRMB6.484billionyuan,decreasingby19.75%year-on-year;itsnetprofitreachedRMB64millionyuan,decreasingby91.06%year-on-year;andthenetprofitattributabletoshareholdersofthelistedcompanywasRMB75millionyuan,decreasingby89.83%year-on-year.GlassbusinesssegmentPhotovoltaicglass:WiththesuccessivereleaseoftheAdministrativeMeasuresfortheDevelopmentandConstructionofDistributedPhotovoltaicPowerGenerationandtheNoticeonDeepeningtheMarket-orientedReformofFeed-inTariffsforNewEnergytoPromoteHigh-qualityDevelopmentofNewEnergybythegovernmentinJanuaryandFebruary2025,twopolicywindowshavebeenopened.Itsignalsthephotovoltaicindustry'stransitionfromapolicy-driventoamarket-drivenstructure.Thepolicyadjustmentsareexpectedtotriggerarushforinstallationsofdomesticphotovoltaicprojects.AccordingtodatafromtheNationalEnergyAdministration,China'sinstalledcapacitygrewby14.36GWinJune2025,ayear-on-yeardeclineof38.45%.FromJanuarytoJune2025,thecumulativeinstalledcapacityreached212.21GW,up107.07%year-on-year.Tradebarriersinoverseasmarketshaveintensified.Particularly,thefinaldeterminationsoftheU.S.intheantidumpingdutyandcountervailingdutyinvestigationsfromfourSoutheastAsiancountriesanditsreciprocaltarifforderissuedinAprilhavereshapedtheoverseasmarketlandscape.Asaresult,photovoltaicproductioncapacityinthefourSoutheastAsiancountrieshasbeengraduallyshutdownwhilecountriessuchasLaosandIndonesia,whichtheU.S.tariffshavenothit,areemergingashubsforalternativephotovoltaicproductioncapacity.Inthefirsthalfof2025,therushforinstallationsofphotovoltaicprojectsinChinaledtoashort-termsurgeindemandforglass.Overseaspolicychangesrestructuredtheglassexportpatternandthesupplyofphotovoltaicglassincreased.AfteraslightriseinMarchandApril,glasspricesfellrapidlyastherushsubsided,droppingbelowlastyear'slow.Inatoughenvironmentplaguedbymultiplecomplexfactors,theannualbudget-orientedmanagementthoughtwithcostcontrolatthecoretoredoubleeffortsinmarketexpansionanddifferentiatedoperationandstrictlycontroloperatingriskwasimplementedthroughallworkprocessesofthephotovoltaicglassbusinessin2025.Intermsofproductionmanagement,withthemanagementpolicyof"ensuringsafety,stabilizingproduction,improvingquality,andcontrollingcosts",theCompanycontinuedtopromotecostreductionandefficiencyincreaseonthebasisofensuringsafeproductioninallprocesses,focusingonthestabilizationofproductionprocessesandtheeffectiveimprovementofproductquality,soastoenhanceitscorecompetitiveness.Asforsales,theCompanytook"expandingthemarket,adjustingthestructure,reducingcosts,andcontrollingrisks"asthemanagementpolicy.Byincreasingtransactionvolumeswithmajorcustomersandmaintainingdifferentiatedoperationwithlowinventory,itworkedtoenhanceoperatingcapabilitiesandloweroperatingrisk.Inthefuture,theCompanywillalwaysstayactiveinperfectingprocessesforthephotovoltaicglassbusinessinitspursuitofanewparadigmfeaturingmanagementinnovation,technologicalinnovation,processinnovation,andproductinnovation.Meanwhile,tonavigatethe

businesssuccessfullythroughindustrycyclesinachallengingmarketenvironment,theCompanywillexplorepotentialadvantagesindepthandmaintainstableoperation.Architecturalglass:AsthegoldenbrandofCSG,theCompany’sarchitecturalglassbusinesshasbeenequippedwithquality,serviceandcontinuousR&Dcapabilitiesthatmatchthebrand.Focusingonthecontinuousimprovementofthebuildingenergy-savingstandardsandhigh-risebuildingsafetystandards,theCompanystrengthensbrandbuildingandadherestothecustomizedbusinessstrategyintegratingtechnicalservice,marketing,andR&Dandmanufacturing,tomeetthepersonalizedneedsofdomesticandforeigncustomersandconstructionprojects.AstheCompany’sshareinthedomesticconstructionmarketcontinuestorise,italsomaintainsaleadingpositioninmarketscaleandprofitabilityinthefieldofdeepprocessingwithinthesameindustry.Inthefirsthalfof2025,facedwithacomplexexternaleconomicsituation,theCompany’sarchitecturalglassbusinessadheredtoforward-lookingstrategicplansandflexibleoperationstrategies,activelyexploredthemarkettoseekdiversifieddevelopment,strengthenedtheoperationofproductdifferentiation,andthustheoveralloperationremainedstable.Byrefiningthemarketlayout,theCompanyfocusedonhigh-potentialprojectsandcontinuedtoincreasethesigningofhigh-qualityprojects,whichresultedinthedrasticyear-on-yearincreaseoftheordercompoundingdegree.Furthermore,itstronglyadvancedthebusinessofcustomizedproductstoexplorenewbusinessgrowingpoints,continuedtoincreasetheproportionofsalesofdifferentiatedproductstoenhancetheoverallproductprofitability,andexpandedtheinfluenceofthebrandofCSGbystrengtheningbrandpromotionandopeningupemergingmarketsinSoutheastAsia,theMiddleEast,etc.Moreover,itpromotedthedigitaltransformationtoimprovetheautomationandinformatizationlevelofproductionlineandconstantlyenhancetheproductionefficiencyofequipment,andcontinuouslystrengthenedthecostreductionandefficiencyincreaseandleanmanagementtoimprovecorecompetitiveness.Withadoptionofthisseriesofinitiatives,theCompany’sarchitecturalglassbusinessachievedasteadyoperationincurrentcompetitivemarketenvironment,whilethedevelopmentofproductdiversificationfurtherenhancedthemarketcompetitivenessandservicecapabilitiesofarchitecturalglass.Floatglass:Inthefirsthalfof2025,theglassindustrywentthroughacyclicaladjustmentandalandscapereshuffle.Againstthisbackdrop,theCompanycarriedonwiththedifferentiatedproductstrategy.Ontheonehand,itfocusedonthedomestichigh-endultra-whiteglassmarket,builton“BlueDiamond”,ahigh-endbrandofultra-whiteglassseries,andcontinuouslyincreasedthemarketsharetobecometheleaderintheindustrysegment.Ontheotherhand,theCompanyoptimizeditsproductstructure,strengthenedmarketdevelopmentofhigh-value-addedproductssuchasindustrialglassandautomotiveglass,expandednewapplicationmarkets,andcontinuouslyincreasedtheratioofdifferentiatedproductsinproductionandsales,effectivelyreducingtheimpactofthedownwardtrendinthearchitecturalglassmarketandenhancingtheCompany’sprofitability.Atthesametime,theCompanycontinuedtoreducecostsandincreaseefficiencyinternally,effectivelyreducingtheprocurementcostbydevelopingnewsuppliersandcoordinatingandorganizingthecentralizedprocurementofbulkrawmaterials.Theproductionefficiencywasimprovedandproductioncostswerefurtherreducedbystrengtheningtheleanmanagementoffullproductionprocess.Inthefirsthalfof2025,ChengduFloatGlassLine3resumedproduction,withsignificantimprovementsinproductionefficiencyandenergyconservation,whichhashelpedimprovetheprofitabilityoftheCompany’sfloatglassbusiness.Electronicglassanddisplaybusinesssegment

Accordingtothedatareleasedbyindustryresearchorganizations,globalsmartphoneshipmentsreached297millionunitsinthefirstquarterof2025,ayear-on-yearincreaseof0.2%,showingaslightmarketrecoverybutweakeningmomentum.Duetothecontinuedreleaseofnewproductioncapacityacrossthedomesticelectronicglassmarketinthefirsthalfoftheyear,thecontradictionbetweensupplyanddemandbecamemoreintense,theindustrywasmorecompetitive,thepriceintheelectronicglassmarketcontinuedtodecline,andtheindustry’soperationalefficiencywasaffectedtoacertainextent.Facingtheseveremarketenvironment,theCompany’selectronicglassbusinessconstantlystrengthenedtheresearchanddevelopmentandpromotedthecostreductionandefficiencyincreaseintermsofinternalmanagement.Formarketing,itcontinuedtoactivelyexplorenewmarketsanddevelopnewapplicationsinintelligentelectronicterminals,touchcontrolmodules,vehicle-mounteddisplays,medicalequipment,industrialautomaticcontroldisplays&commercialdisplays,smarthomeandotherfields.Inthefirsthalfoftheyear,theCompany’soverallmarketshareofmedium-aluminaandhigh-aluminaelectronicglassproductsremainedstable.Fordisplaydevices,theCompanydeeplyplougheditstraditionaldominantsegmentofopticalcoatingmaterialbusiness.PhasedresultswereachievedindevelopingnewcustomersofITOfilm,withproductionandsalesincreasingyear-on-year.Meanwhile,theCompanycontinuedtodevelopitsvehicle-mountedAGandcoverplatebusiness.Anewvehicle-mountedAGglassproductionlinewasputintomassproduction,withtheproductionandsalesvolumesincreasingsubstantiallycomparedwiththesameperiodlastyear.Inadditiontoautomotiveapplications,functionalcoverplatesaregraduallyextendingtotheconsumermarket.Forvehicle-mountedtouchpanelsegment,theCompany’sproductionandsalesvolumesdeclinedcomparedwiththesameperiodlastyearduetotheshrinkingglobaldemandforconsumerelectronicsandthepopularityofin-celltouchtechnology.SolarenergybusinesssegmentInthefirsthalfof2025,thedomesticdistributedphotovoltaicmarketexperiencedarushforinstallations,drivenbypolicyadjustments.China'snewphotovoltaicinstalledcapacityexceeded212.21GWfromJanuarytoJune,representinga107%year-on-yearsurge.Withthegradualfadingofthepolicyeffectsandguidancefromnationalregulation,themarkethasslowlyreturnedtorationalityandtheeliminationofproductioncapacityintheindustryhasaccelerated.Thewholeindustrialchainhasenteredaperiodofpatternreshaping.Inthereportperiod,whiletheCompanymitigatedsomepressurebyactivelyseizingmarketopportunitiesandsawimprovementsintheoperatingperformanceforthesolarenergybusiness,productpricesremainedbelowcostsacrossallprocessesduetosupply-demandimbalance.Therefore,theoveralloperationwasstillundergreatpressure.

II.CoreCompetitivenessAnalysis

CSGGroup,oneofthemostcompetitiveandinfluentiallarge-scaleenterprisesinChina'sglassindustryandnewenergyindustry,iscommittedtothedevelopmentofenergyconservationrenewable,andnewmaterialindustry.Afterfourdecadesofdevelopmentandaccumulation,theCompanyhasgraduallyformedacomprehensivecompetitiveadvantageintermsofproductsandbrands,technologyresearchanddevelopment,industrialchainandlayout,talentteam,andgreendevelopment.

1.Productandbrandadvantages

"CSG"isafamousbrandofdomesticenergy-savingglass,ultra-thinelectronicglass,displayandsolarphotovoltaicproducts.Itsproductsandtechnologyarewell-knownathomeandabroad.TheCompanyhasbeenlistedinthe"PreferredBrandofArchitecturalGlass"inDoorandWindowCurtainWallIndustryandthe"Top20BuildingMaterialsEnterprises"attheBuildingMaterialsEnterpriseDevelopmentForumformanyyears.The"CSG"brandwasrecognizedbytheUnitedNationsIndustrialDevelopmentOrganizationasthefourthbatchof"InternationalReputationBrand"in2018.CSGhasbeenawardedthetitleof"ManufacturingSingleChampionEnterprise"bytheMinistryofIndustryandInformationTechnologyforitslow-Ecoatedglassandultra-thinelectronicglass.

2.TechnologyresearchanddevelopmentadvantagesTheCompanyhasalwaysvaluedtechnologicalR&DandadoptedindependentR&Dasitsfoundationsinceitsestablishment.Asof30June2025,theCompanyhashadatotalof21nationalhigh-techenterprises,2national-levelsinglechampionproductsinthemanufacturingindustry,1national-levelengineeringlaboratory,1national-levelenterprisetechnologycentre,5nationalenterpriseswithintellectualpropertyadvantages,1nationalintellectualpropertydemonstrationenterprise,7national-levelspecialized,sophisticated,distinctive,andinnovativeenterprises("LittleGiants"),1provincial-levelexpertworkstation,1provincial-leveldoctoralworkstation,2titlesofprovincial-level"ManufacturingSingleChampionEnterprise",14provincial-levelenterprisetechnologycentres,5provincial-levelengineeringtechnologyresearchcentres,2provincial-levelengineeringresearchcentres,4provincial-leveldemonstrationenterprisesforintellectualpropertyconstruction,1provincial-levelintellectualpropertydemonstrationenterprise,6provincial-level"LittleGiants",1provincial-levelgovernmentqualityaward,10provincial-levelscientificandtechnologicalprogressawards,and4provincial-levelpatentawards.Asof30June2025,theCompanyhasappliedforatotalof3,513patents,including1,562inventionpatents,1,938utilitymodelpatents,and13designpatents.Moreover,theCompanyhashadatotalof2,596authorizedpatents,including649inventionpatents,1,934utilitymodelpatents,and13designpatents.TheCompanyhascumulativelyobtained3computersoftwareCopyrightsand2dataintellectualpropertyrights.

3.IndustrialchainandlayoutadvantagesTheCompanyhasthreecompleteindustrialchainsofenergy-savingglass,electronicglassanddisplay,andsolarphotovoltaicglass.Withthecontinuousimprovementofthetechnologicallevelofeachprocessoftheindustrialchains,theCompany'sindustrialadvantagebecomesobvious;meanwhile,theCompanypossessesacompleteindustrylayout,withproductionbaseslocatedinSouthChina,NorthChina,EastChina,SouthwestChina,CentralChina,andNorthwestChina.

4.TalentteamadvantagesTheCompany'sadvantageintalentteamsismainlyreflectedintwoaspects:Ontheonehand,theCompanyhasestablishedastrongR&DteamandapowerfulR&Dsystem.Throughtheconstructionofthecoretechnicalteam,continuousR&Dinvestment,andabundanttechnicalreserves,ithasconstitutedanimportanttechnologyandinnovationsupportfortheCompany'sstrategies.Meanwhile,ithasestablishedIndustry-University-Researchcooperation,activelycooperatingwithdomesticcollegesanduniversitieswhichareinadvantageinsilicatematerialsindustry,toacceleratethetransformationofscientificresearchresults,andtostrengthenbasicresearch;ontheotherhand,anexcellentandstablemanagementteamisoneofthemostfundamentalguaranteesfortheCompany'srapidandstabledevelopment.TheCompanyhasformedagoodechelontrainingmechanismforprofessionalmanagers.Atpresent,theCompany'sseniormanagementteamhascomparativeadvantagesinmultipleaspects,suchasacademicbackground,professionalquality,knowledgebase,managementphilosophyandexperienceetc.

5.GreendevelopmentadvantagesWiththecontinuousimpetusofthe"dualcarbon"goals,theCompanyhastakenactiveactionsinvariouscarbon-relatedfields.Forexample,theCompanyhaswidelyconductedprofessionaltrainingoncarbonemission

managementtoimprovetheabilityofrelevantpersonneltobettercopewithcarbon-relatedaffairs.Meanwhile,theCompanyhasactivelypromotedthrough-lifecarbonfootprintcertificationforrelevantproductsasapreparationfordownstreammarketexpansionofgreenandlow-carbonproducts.Furthermore,HebeiCSGGlassCo.,Ltd.,asubsidiaryoftheCompanyandanoutstandingandbenchmarkenterpriseintheflatglassindustry,recognizedasapilotenterpriseforcarbonpeakingintheconstructionmaterialindustry,hasmadeeffortstoexploreandimplementtheactionplansandeffectiveroutesofcarbonpeakingintheindustry.TherelevantsubsidiaryoftheCompanyhasactivelygotteninvolvedintheregionalpilotmarketofcarbontransactionstostriveforacalculationmethodofcarbonquotamatchingtherealsituationoftheCompany'sproduction.Withitstotalemissionshighlyconsistentwiththequotas.Asapioneerofgreendevelopmentintheindustry,theCompanyhas11subsidiariesbeinghonoredasnational"GreenFactories",winningitselfabundantroomfordevelopment.III.MainbusinessanalysisOverviewPleaserefertotherelevantcontentof“I.MainbusinessoftheCompanyinthereportperiod”.Year-on-yearchangesofmainfinancialdata

Unit:RMB

Thereportperiod

Majorchangesonprofitcompositionorprofitresourcesinthereportperiod

□Applicable√NotapplicableTherewasnomajorchangeintheCompany'sprofitcompositionorprofitresourcesduringthereportperiod.

Compositionofoperatingincome

Unit:RMB

Thereportperiod

Listoftheindustries,productsorregionsexceed10%oftheoperatingincomeoroperatingprofitsoftheCompany

√Applicable□Notapplicable

Unit:RMB

UnderthecircumstancesthatthestatisticalstandardsfortheCompany’smainbusinessdataadjustedinthereportperiod,theCompany'smainbusinessdataintherecentyeariscalculatedbasedonadjustedstatisticalstandardsattheendofthereportperiod

□Applicable√Notapplicable

IV.Non-corebusinessanalysis

√Applicable□Notapplicable

Unit:RMB

Amount

V.Analysisofassetsandliabilities

1.Significantchangesinassetscomposition

Unit:RMB

assets

2.Mainoverseasassets

□Applicable√Notapplicable

3.Assetsandliabilitiesatfairvalue

√Applicable□Notapplicable

Unit:RMB

Otherchanges:

Note1:Itreferstotheincreaseordecreaseamountatthebeginningandendoftheperiodforbankacceptancedraftswithhighercreditratings.Duringthereportperiod,whetherthecompany’smainassetmeasurementattributeschangedsignificantlyornot

□Yes√No

4.Limitedassetrightsasoftheendofthereportperiod

Unit:RMB

Item

VI.Investmentanalysis

1.Overallsituation

√Applicable□Notapplicable

2.Themajorequityinvestmentobtainedinthereportperiod

□Applicable√Notapplicable

3.Themajorongoingnon-equityinvestmentinthereportperiod

√Applicable□Notapplicable

Unit:RMB

Projectname

PhaseIUpgradingandTechnicalTransformationProjectofQingyuanCSGEnergy-SavingNewMaterialsCo.,Ltd.

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√NotapplicableTherewasnosecuritiesinvestmentduringthereportperiod.

(2)Derivativeinvestment

□Applicable√NotapplicableTherewasnoderivativeinvestmentduringthereportperiod.

5.Useofraisedfund

□Applicable√NotapplicableTherewasnouseofraisedfundduringthereportperiod.VII.Saleofmajorassetsandequity

1.Saleofmajorassets

□Applicable√NotapplicableTheCompanydidnotsellmajorassetsduringthereportingperiod.

2.Saleofmajorequity

□Applicable√NotapplicableVIII.Analysisofmainsubsidiariesandjoint-stockcompanies

√Applicable□NotapplicableParticularaboutmainsubsidiariesandjoint-stockcompanieswhichhaveinfluenceontheCompany'snetprofitbyover10%

Unit:RMB

Nameofcompany

TechnologyCo.,Ltd.

NewEnergyTechnologyCo.,Ltd.

Particularsaboutsubsidiariesobtainedordisposedinreportperiod

√Applicable□Notapplicable

DescriptionofmainholdingandshareholdingcompaniesTheincreaseinthenetprofitofGuangxiCSGNewEnergyMaterialTechnologyCo.,Ltd.ismainlyduetothecommissioningofnewproductionlinesandtheriseinproductionandsalesvolume.ThedeclineinthenetprofitofQingyuanCSGEnergy-SavingNewMaterialsCo.,Ltd.ismainlyduetothedropinproductprices.TheincreaseinnetprofitofXianningCSGEnergy-savingGlassCo.,Ltd.ismainlyduetotheriseinsalesvolumeandtheimprovementinproductgrossprofit.TheincreaseinnetprofitofZhaoqingCSGEnergy-SavingGlassCo.,Ltd.ismainlyduetotheincreaseinsalesvolume.TheincreaseinnetprofitofHebeiVisionGlassCo.,Ltd.ismainlyduetothereductionininventorywrite-downprovisionsandthedeclineinexpenses.ThedeclineinthenetprofitofYichangCSGPhotoelectricGlassCo.,Ltd.ismainlyduetothedropinproductprices.TheincreaseinnetprofitofYichangCSGDisplayCo.,Ltd.ismainlyduetotheriseinrevenueandtheincreaseingrossprofitofitsproducts.TheincreaseinthenetprofitofDongguanCSGPV-techCo.,Ltd.ismainlyduetotheriseinthegrossprofitmarginofitsproducts.

IX.StructuredmainbodiescontrolledbytheCompany

□Applicable√Notapplicable

X.RiskstheCompanyfacesandcountermeasures

In2025,facingthedynamicchangesinthepoliticalandeconomiclandscapeathomeandabroadandthetaskofbuildinga"CenturyCSG",theCompanywillfacethefollowingrisksandchallenges:

①Theinternationalpoliticalenvironmentstillfacesmanyuncertainties.Affectedbythecomplicatedinternationalpoliticalenvironment,thedomesticeconomystillfacesmanychallengesanduncertainties.In2025,theCompanywillcontinuetoworkhardonitsinternalstrength,reducevariouscosts,strengthenitsattentiontothemarket,intensifyitsanalysisofmarkettrends,flexiblyadjustitsstrategies,andstrivetoachievetheannualcoreworkobjectivesthroughsteadyoperation.

②Theglassindustryisconfrontedwithpriceriskscausedbyfiercecompetitionamongsimilarproductsandthepressureoffluctuatingcostsofmajorrawmaterials.Inthefirsthalfof2025,thein-productioncapacityofthephotovoltaicglassindustrywasrelativelyhighandtherewasalargeamountofcapacityyettobereleased.Coupledwiththeshrinkinginstallationexpectationsafterthedomesticphotovoltaicrushinstallation,themarketfellintoanunbalancedsituationof"strongsupplyandweakdemand",andthemismatchbetweensupplyanddemandintensified,causingmarketpricestodeclinerapidly.Asaresult,theCompany'sphotovoltaicglassperformanceisunderpressure,theaccountsreceivablecyclehasbeenprolonged,anditisfacingindustry-widerisks.Thearchitecturalglassbusinessisencounteringincreasedoperationalpressureandrisinguncertaintyduetointensifiedmarketcompetition.Thefloatglassbusinessfacestheriskoftemporarilydecreaseddemandinthedownstreamarchitecturalglassmarketandisatriskofundergoingcyclicaladjustmentsintheindustry.Theelectronicglassindustryincreasinglyfiercecontradictionbetweensupplyanddemand,thedomesticlikeproductcompetitionrisks.Thesolarenergyindustryisfacingaphasedmismatchbetweensupplyanddemand,withpricesatalllinksoftheindustrialchaindroppingsignificantly.Theindustryisundergoingthechallengeofanadjustmentperiod.Tocopewiththeaforesaidrisks,theCompanywilltakethefollowingmeasures:

A.Inthephotovoltaicglasssector,thebusinesssalesendhascomprehensivelyintensifiedeffortstodevelopthemarketinlinewiththereleaseofnewproductioncapacity,deeplyalignedwithmarketdemands,optimizedtheproductstructure,increasedtheproportionofdifferentiatedsales,andatthesametimelinkedtotheexternalcirculationofthemarket,establishingconnectionswithoverseasmarketstoenhancemarketcompetitivenessandprofitability.Intermsofproductionmanagement,thesystematiccontrolofproductionprocessesisstrengthenedthroughthestandardizationandguidanceofproductionprocedurestoensurethatproductqualityisundercontrolandproductioncostsarereduced.Atthesametime,wewillpromotespecialcostreductionactivitiesandstrivetoprovidethemarketwithphotovoltaicglassproductsthatareofstablequalityandcompetitiveincostundertheseveremarketenvironment.B.Inthearchitecturalglasssector,thecompanywillcontinuetoacceleratethepaceofdigitalandintelligenttransformationofthemanufacturingindustry,reducelabor,materialandenergyconsumptioninproduction,andcontinuouslypromotecostreductionandefficiencyimprovement.Strengthenthedevelopmentandlayoutofhigh-endmarketsandoverseasmarkets,andactivelyrespondtomarketchanges;Continuetodeeplycultivatethemarket,refinethemarketlayout,andincreasethemarketshare.Furtherincreaseinvestmentinresearchanddevelopment,intensifythedevelopmentofnewproductsandtheirapplicationinnewfields,andexpandthebusinessscope.Enhanceservicecapabilitiesandgivefullplaytotheadvantagesofquality,technologyandbrand;Atthesametime,byextendingtheindustrialchaininamarket-orientedmanner,thecompanymaintainsitsleadingpositionintheindustry.C.Inthefloatglasssector,theCompanywillcontinuetopromoteleanmanagementanddifferentiatedoperation,

optimizeproductstructure,andincreasethesalesproportionofhighvalue-addedproducts.Atthesametime,itwillimproveproductionefficiency,reduceproductioncosts,improveprofitability,andenhancethecompetitivenessoftheindustrythroughtechnologicalupgrading.D.Intheelectronicglassanddisplaydevicesector,inthefaceoffiercemarketcompetition,thecompanywilladheretoaprudentbusinessstrategy,increaseR&Defforts,promoteproductiterationandupgradingaswellasqualityoptimization,raisethesalesproportionofmid-to-high-endproducts,andstrivetoexpandthemarketshareofmid-to-high-endproducts.ContinuetoconsolidatethebrandinfluenceofNanshanGlass'selectronicglassandsignificantlyenhancecustomers'brandrecognitionofNanshanGlassinthehigh-endmarket.Atthesametime,wewillcontinuetoexplorenewmarketsanddevelopnewapplications,strivingtomaintainaleadingedgeinthefiercemarketcompetition.E.Inthesolarenergysector,theCompanywillcloselymonitormarketdynamicsandchangesinsupplyanddemand,activelyrespondtopolicyguidance,andrationallyplanproductionandoperationstrategies.Byoptimizingtheproductionprocess,enhanceproductionefficiency;Increaseinvestmentinresearchanddevelopmentandtechnologicalinnovation,andstrengthencompetitiveadvantagesinnichefields;Deepenresourceintegrationandmanagementimprovementtoenhanceoperationalefficiency;Implementcostreductionandefficiencyimprovementmeasurestoensurestableeconomicbenefits.

③Riskoffluctuationofforeignexchangerate:Atpresent,nearly8.34%oftheoperatingrevenueoftheCompanyisfromoverseas,andinthefuture,theCompanywillfurtherdevelopoverseasbusiness.Therefore,thefluctuationofexchangeratewillbringcertainrisktotheoperationoftheCompany.Tocopewithsuchrisk,theCompanywillsettleexchangeinatimelymanner,andusesafeandeffectiveriskevadinginstrumentandproducttorelativelylockexchangerate,thusreducingtheriskcausedbyfluctuationofexchangerate.

XI.Formulationandimplementationofmarketvaluemanagementsystemandvaluationimprovementplan

Whetherthecompanyhasestablishedamarketvaluemanagementsystem.

□Yes√NoWhetherthecompanyhasdisclosedplanstoraiseitsvaluation.

□Yes√No

XII.Implementationofthe“QualityandEarningsDualImprovement”ActionPlanIndicatewhethertheCompanyhasdisclosedthe“QualityandEarningsDualImprovement”ActionPlan.

□Yes√No

SectionIV.CorporateGovernance,EnvironmentandSociety

I.Changesindirectors,supervisorsandseniormanagementofthecompany

□Applicable√NotapplicableTherewerenochangesinthedirectors,supervisorsandseniormanagementoftheCompanyduringthereportingperiod,asdetailedinthe2024annualreport.II.Profitdistributionandconversionofcapitalreservesintoequitycapitalinthereportperiod

□Applicable√NotapplicableTheCompanyhadnoplansofcashdividenddistribution,bonussharesbeingsentorconvertingcapitalreserveintosharecapitalforthefirsthalfoftheyear.III.ImplementationoftheCompany’sstockincentiveplan,employeestockownershipplanorotheremployeeincentives

□Applicable√NotapplicableDuringthereportperiod,theCompanyhadnoequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresandtheirimplementation.IV.EnvironmentalInformationDisclosureSituation

WhetherthelistedCompanyanditsmajorsubsidiariesareincludedinthelistofenterprisesthatdiscloseenvironmentalinformationinaccordancewiththelaw.

√Yes□No

Numberofenterprisesincludedinthelistofenterprisesforlegaldisclosureofenvironmentalinformation(number)

38-f07f-44ce-b55b-9e1159f0bfbc

EnvironmentalincidentsinthelistedcompanyInthefirsthalfof2025,noenvironmentalincidentsoccurred.

Ⅴ.Socialresponsibility

Inthefirsthalfof2025,theCompanyfocusedonthefollowingtasksinfulfillingitssocialresponsibilities:

1.ProtecttheenvironmentandpromotesustainabledevelopmentthroughgreenmanufacturingFormanyyears,theCompanyhasfirmlyadheredtotheconceptof“Greenmountainsandclearwatersareasgoodasmountainsofgoldandsilver”,attachedgreatimportancetoenvironmentalprotectionwork,andtakenmultiplemeasurestobuildabeautifulfactorythatisgreen,low-carbon,energy-efficient,andhigh-performance.Asofthefirsthalfof2025,11subsidiariesofCSGhavebeenratedasnational-level"GreenFactories".TheCompanycontinuestostrengthenthecomprehensiveutilizationandmanagementofresourcesandenergy,takesvariousmeasurestosaveenergy,reduceemissionsandreducecarbon,andmakescontributionstotheCountry'sgoalof"dualcarbon".TheGroupDepartmenthasspeciallyestablishedanenergymanagementteam,whichisresponsibleforsupervisingtheenergyconsumptionmanagementofvarioussubsidiaries,andpromotestheenergyconsumptionperunitproductandcarbonemissionperunitproductoftheGroup'svariousproductstoreachtheadvancedlevelintheindustry.Atpresent,theenergyconsumptionlevelofmostglassmeltingfurnacesintheflatglassbusinessofCSGhasreachedtheadvancedlevelstipulatedbythenationalstandard.ForexamplethesubsidiariesWujiangCSGandXianningCSGhavebeensuccessivelyratedbytheMinistryofIndustryandInformationTechnologyas"leaders"in

energyefficiencyintheflatglassindustry.HebeiCSGisdesignatedbytheMinistryofIndustryandInformationTechnologyastheadvancedbenchmark"TestField"ofCarbonPeak.Atthesametime,CSGhasalwayspaidattentiontotheutilizationofwasteheatinflatglassfactories,andeachproductionbasehasbuiltwasteheatboilersandwasteheatpowerplants;CSGisalsoactivelydevelopingphotovoltaicpowerplants,mostofwhichhavephotovoltaicpowerplantsontheroofsoffactories.Inthefirsthalfof2025,theGroup'swasteheatpowergenerationandphotovoltaicpowergenerationtotaledabout307millionkWh,equivalenttoreducingcarbondioxideemissionsbyabout175,200tons.Inaddition,thesubsidiarycompaniesoftheGroupallconstructpollutionpreventionandcontrolfacilitiesinaccordancewiththeenvironmentalimpactassessmentdocumentsandrelevantspecificationsofconstructionprojects,ensuringsynchronousoperationwithproductionfacilities,andinvestingalargeamountofenergyandfundsinpollutionpreventionandcontroleveryyear,andpayenvironmentaltaxontime.Inthefirsthalfof2025,theoperationofpollutioncontrolfacilitieswasgood,andthedischargeofpollutantswasstable.Meanwhile,thesubsidiariesbuiltandoperatedon-linemonitoringdevicesforwastewaterandexhaustgasinaccordancewithnationallawsandregulations,regularlycarriedoutcomparisonandreviewoftheeffectivenessofon-linemonitoringfacilities,andentrustedathird-partyunittocarryoutmanualenvironmentalmonitoringtocomprehensivelymonitorthepollutantdischarge.Inaddition,inaccordancewiththenationalrequirements,allsubsidiariespreparedemergencyenvironmentalresponseplanforenvironmentincident,organizedandcarriedoutexpertevaluationandfiledwiththelocalenvironmentalprotectiondepartmentasrequired,andconductedtheemergencydrillagainstenvironmentalincidentsasplanned.Andtherewerenomajorenvironmentalincidentsoccurredinthefirsthalfof2025.

2.ProtectemployeesandcontinuouslystrengthenoccupationalhealthmanagementTheCompanyalwaysadherestotheconceptof"SafetyFirst,EnvironmentalProtectionFirstandGreenDevelopment",TheGroup'sSafetyandEnvironmentalProtectionDepartmentcoordinatessafetyandenvironmentalprotectionmanagementwork,establishestheGroup'sthree-levelcontrolsystemofsafety,environment.TheCompanyhasacompletesafetymanagementstructureandsafetymanagementsystem,strictlyimplementsthesafetyproductionresponsibilitysystemofallemployees,andallemployeeshavesignedthesafetyproductionresponsibilitystatement.TheCompanyattachesgreatimportancetothesafetytrainingofemployees,strictlystrengthensthethree-levelsafetyeducationandtrainingofnewemployeesandthecontinuingeducationofoldemployees,andorganizesvariousspecialtrainingaccordingtothecharacteristicsofemployees'poststoimprovetheirsafetyliteracyandsafetyskills.Themanagementofspecialequipmentandspecialoperationsshallbestrictlycarriedout,andspecialoperatorsshallworkwithcertificates.Specialoperationscanonlybecarriedoutafterapprovalandconfirmationofsafetymeasures.Regularlycarryoutemergencydrills,strengthentheconstructionofemergencyresponsecapabilities,improveemergencyresponsecapabilities,eliminatehiddendangersinthebud,andresolutelydefendthelastlineofdefense.Eachsubsidiaryhasestablishedasystemfortheextractionanduseofproductionsafetyexpenses,whichisstrictlyinaccordancewiththerequirementsofrelevantlawsandregulationstoextractandstandardizetheuseofproductionsafetyexpenses.TheCompanyhasalsocarriedoutvarioushiddendangersinvestigationoftheheadquartersandsubsidiaries,acceptedthesupervisionandinspectionoflocalemergencymanagementdepartments,andorganizedtherectificationandimprovementofvarioushiddendangers.Inaddition,theCompanyattachesgreatimportancetothestandardizationconstructionandoperationofsafetymanagement.AsoftheendofJune2025,CSGhasobtainedsafetystandardizationcertificatesfor18subsidiaries,ofwhich6subsidiarieshavereachedthesecondlevelofsafetyproductionstandardization,12subsidiarieshavereachedthethirdlevelofsafetyproductionstandardization,andafewothersubsidiariesarealsoactivelycreatingandapplying.

3.SteadyoperationhassafeguardedtheinterestsofshareholdersandcreditorsTheCompanyhaslongfocusedonthedevelopmentofitsprimaryglassbusiness,adheringtostableoperationsandenhancingprofitability.Inthefirsthalfof2025,facingtheunfavorablesituationofweakmarketdemandfortheCompany'sleadingproducts,theCompanyactivelyrespondedbystrengtheningleanmanagement,inthefirsthalfof2025,theCompany’soperatingrevenuetotalledRMB6.484billion,itsnetprofitreachedRMB64million,andthenetprofitattributabletoshareholdersofthelistedcompanywasRMB75million.Atthesametime,theCompanyactivelyimplementsaprudentcashdividendpolicytorewardshareholders,theequitydistributionof2024hadbeencompleted,afterexcludingthenumberofsharesrepurchased,theactualcashdividendamount(includingtax)wasRMB211,673,021.98,accountingfor79.35%ofthenetprofitattributabletoshareholdersoflistedcompanyin2024,strivingtomaximizeshareholderinterests.Intermsofcreditorprotection,theCompanyimplementedaprudentfinancialpolicy,andalldueloanswererepaidontime,whichprotectedthelegitimaterightsandinterestsofcreditors.

4.Adheretoindependentresearchanddevelopment,andcontributetotechnologicalprogressintheindustryTheCompanyhasalwaysadheredtoindependentresearchanddevelopment,relyingontechnologytoestablishitselfandpromotehigh-qualitydevelopment.Inthefirsthalfof2025,theCompanypubliclyannounced208patentsforthefirsttime,including114authorizedpatentsand94publicinventionapplications.Asof30June2025,theCompanyhasappliedforatotalof3,513patents,including1,562inventionpatents,1,938utilitymodelpatents,and13designpatents.Moreover,theCompanyhashadatotalof2,596authorizedpatents,including649inventionpatents,1,934utilitymodelpatents,and13designpatents.Meanwhile,theCompanyhasobtainedatotalof3computersoftwarecopyrightsand2dataintellectualpropertyrights.Theresearchanddevelopmenthasachievedfruitfulresults,boostingtechnologicalprogressintheindustry.

5.Safeguardemployees'rightsandinterests,andbuildharmoniouslaborrelationsFormanyyears,theCompanyhasactivelysafeguardedthevitalinterestsofitsemployeesandstrivedtobuildaharmoniousenterprisewhere"theenterprisethrivesandtheemployeesarehappy".Westrictlyimplementsthenationalandlocalsocialsecuritymechanism,andpurchasesfiveinsurancesandonefundandothercomprehensivewelfareinsuranceforemployees.Ithasafairandequitablepostpromotionsystemandbroadenthedevelopmentchannelsofemployees.Andimplementsastatutoryleavesystemforemployees,andemployeesenjoyvariousstatutoryholidaysandotherpaidholidaysstipulatedbythestate.Itactivelyorganizesvariousemployeeculturalandsportsactivities,andemployeesalsoenjoybenefitssuchasemployeecanteens,employeephysicalexaminations,subsidiesandotherbenefits.Itstrengthensoccupationalhealthmonitoringandmanagementtoensurethephysicalandmentalhealthofemployees.Itcaresforemployeesinneed,andestablishedacarefund,inthefirsthalfof2025,thecarefundprovidednearlyRMB260,000inassistancetoemployeesandtheirfamilies,helpedemployeesovercomedifficulties.

6.ParticipateinpublicwelfareundertakingsandfulfillsocialresponsibilitiesAllalong,whileensuringstableoperation,thecompanyhasactivelytakenoncorporatesocialresponsibility,vigorouslypromotingthetraditionalvirtuesofmutualassistance,povertyrelief,andassistanceintimesofneedthroughvariousmeanssuchasactivelyparticipatinginvariouspublicwelfareactivities,makingdonations,anddonatingbloodwithoutcompensation.Inthefirsthalfof2025,theCompanydonatedoverRMB100,000worthoffundsandmaterialstotheRedCrossandsocialwelfareinstitutions,givenbacktosocietythroughpracticalactions,spreadingthepositiveenergyofCSG.

SectionV.ImportantEvents

I.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√NotapplicableTheCompanydidnotexperienceanymattersrelatedtobankruptcyreorganizationduringthereportingperiod.

VIII.LawsuitsSignificantlawsuitsandarbitrations

√Applicable□Notapplicable

Basicinformation

Otherlawsuits

□Applicable√NotapplicableIX.Penaltyandrectification

□Applicable√NotapplicableDuringthereportperiod,therewasnopenaltyorrectification.X.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers

√Applicable□NotapplicableTheCompanyhasnocontrollingshareholderandactualcontroller.Accordingtothedisclosurerequirements,theCompany’slargestshareholderForeseaLifeInsuranceCo.,Ltd.,shareholderZhongshanRuntianInvestmentCo.,Ltd.,ShareholderShenzhenGuanlongLogisticsCo.,Ltd.shalldisclosethecorrespondinginformation.Thedetailsareasfollows:

i.IntegrityoftheCompany

Duringthereportperiod,itdidnotexistthattheCompanyfailedtoperformtheeffectivejudgmentofthecourtorowedcomparativelylargeamountofdebtwhichwasoverdue.TheCompany’sintegritywasgood.ii.TheintegrityoftheCompany’sshareholdersTheCompany,inaccordancewithrelevantregulations,senttheLetteronMattersConcerningAssistanceinProvidingMaterialsRequiredforthe2025Semi-annualReporttoitslargestshareholderForeseaLifeInsuranceCo.,Ltd.,shareholderZhongshanRuntianInvestmentCo.,Ltd.,andshareholderShenzhenGuanlongLogisticsCo.,Ltd.,byemailon2July2025.Theseshareholderswereaskedtoexaminetheirownintegritystatusduringthereportperiod,includingbutnotlimitedto:whethertheyfailedtoperformanyeffectivejudgmentofthecourtorowedanycomparativelylargeamountofdebtwhichwasoverdue,etc.Therelevantrepliesareasfollows:

1.ReplyfromtheCompany’slargestshareholderForeseaLifeInsuranceCo.,Ltd.:Asof30June2025,itdidnotexistthatForeseaLifeInsuranceCo.,Ltd.failedtoperformtheeffectivejudgmentofthecourtorowedcomparativelylargeamountofdebtwhichwasoverdue.

2.AsofthedateofdisclosureofthisReport,theCompanyhasnotreceivedanyrelevantrepliesfromZhongshanRuntianandGuanlongLogisticsabout"theintegrityofyourCompanyandtheactualcontrollerduringthereportingperiod",andunabletoupdatetheintegritystatusoftheseshareholdersandtheiractualcontroller,Mr.YaoZhenhua.TheCompanyhasdisclosedtheintegritystatusofshareholdersZhongshanRuntian,GuanlongLogisticsandtheiractualcontrollerYaoZhenhuain“XIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers”under“SectionVI.ImportantEvents”oftheCompany’s2023AnnualReport,thespecificcontentisasfollows:

AccordingtothereplyoftheshareholderZhongshanRuntianInvestmentCo.,Ltd.,theoriginalcontentisasfollows:

AsofDecember31,2023,thecasesexecutedbyZhongshanRuntianInvestmentCo.,Ltd.(hereinafterreferredtoas“ZhongshanRuntian”)areasfollows:

(1)Duetothecaseofexecutionofnotarisingcreditor’srightsdocumentsbetweenGreatWallGuoxingFinancialLeasingCo.,Ltd.and16companiesincludingShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.andZhongshanRuntianInvestmentCo.,Ltd.,GreatWallGuoxingFinancialLeasingCo.,Ltd.appliedtothecourtforcompulsoryexecution.AstheguarantorofthedebtofRMB164million,ZhongshanRuntianwasjointlyandseverallyliableforthedebt,andits5.57millionsharesofJonjeeHigh-techwereusedascollateral.AccordingtotheAnnouncementontheResultsofJudicialDisposalofCertainSharesofShareholderHoldingMoreThan5%oftheSharesdisclosedbytheBoardofDirectorsofJonjeeHigh-techonDecember18,2023,GreatWallGuoxingFinancialLeasingCo.,Ltd.appliedforcompulsoryexecution.

5.57millionsharesinJonjeeHigh-techhavebeendisposedof,withadisposalamountofRMB160,422,600andadebtjointandseveralliabilityfulfilmentamountofRMB160,422,600.

(2)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenChongqingXinyuFinancialLeasingCo.,Ltd.andthedefendantsShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenBaonengAutomobileCo.,Ltd.,andZhongshanRuntian,ChongqingXinyuFinancialLeasingCo.,Ltd.appliedtothecourtforcompulsoryexecution.AstheguarantorofthedebtofRMB260million,ZhongshanRuntianusedits67.65millionAsharesofCSGascollateral.AsofJune29,2022,ithasdisposedof55,628,900AsharesofCSG,withatotalamountofRMB319,999,300.00.Atpresent,thecourthastransferredRMB301,717,392.44tothecreditor,andZhongshanRuntian'sguaranteeliabilityhasbeenenforced.

(3)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenGuangdongFinanceTrustCo.,Ltd.andZhongshanRuntian,ShenzhenJushenghuaCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,andMr.YaoZhenhua,FinanceTrustappliedtothecourtforcompulsoryexecution.The

26,550,000sharesofJonjeeHigh-techheldbyZhongshanRuntianInvestmentCo.,Ltd.havebeensoldonSeptember13,2022,andtheamountcreditedintotheaccountwasRMB793,755,369.22,whichwasapproximatelyRMB90milliondifferentfromthedebtamountofRMB882,199,570.79submittedtothecourtbytheexecutionapplicant.Asaresult,thecaseremainedunsettled.

(4)DuetothedisputeoverthefinancialloancontractbetweenAVICTrustCo.,Ltd.andZhongshanRuntian,ZhongshanRuntian,astheborrowerofthedebtprincipalofRMB1.05billion,andHefeiBaohuiRealEstateCo.,Ltd.,HefeiBaonengRealEstateDevelopmentCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,ShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ChiaTai(Shenzhen)DevelopmentCo.,Ltd.andMr.YaoZhenhuawerejointlyandseverallyliableforthedebt.AsofDecember31,2023,ithasdisposedatotalof11,156,871sharesofJonjeeHigh-tech;amongthem,thefirstroundoffreezingof2,125,605sharesbyAVICTrustCo.,Ltd.andthejudicialmarkof8,056,410shares.

(5)Duetothecaseofexecutionofnotarisingcreditor’srightsdocumentsbetweenChongqingInternationalTrustCo.,Ltd.andShenzhenJushenghuaCo.,Ltd.,ZhongshanRuntian,ShenzhenBaonengInvestmentGroupCo.,Ltd.andMr.YaoZhenhua,thecourtruledtosealupandfreezethepropertyofRMB541millionofJushenghua,BaonengGroupandYaoZhenhua,andtofreezethe22millionsharesofJonjeeHigh-techpledgedbyZhongshanRuntiantoChongqingTrust.Atpresent,ChongqingTrusthasappliedforcompulsoryexecution.AsofFebruary2,2023,ithasdisposedof21,025,100sharesofJonjeeHigh-tech,withatotalamountofRMB617,383,579.06.

(6)DuetothecaseoftheloancontractdisputebetweenZhongshanRuntianandShanghaiPudongDevelopmentBankCo.,Ltd.,thePeople’sCourtofFutianDistrict,ShenzhenhasissuedanExecutionRuling,rulingthat12millionsharesheldbyZhongshanRuntianin“JonjeeHigh-tech”,theentitysubjecttoenforcement,shallbeauctionedoffandrealisedforthepurposeofsettlingthedebt.Asthebidderfailedtopaythefinalpaymentwithintheprescribedtime,accordingtotheNotificationofSalefromthePeople’sCourtofFutianDistrict,ShenzhenissuedonFebruary16,2023,theaforesaid12millionshareswouldbere-auctioned.OnMarch22,2023,ShanghaiPudongDevelopmentBankCo.,Ltd.disposedofthe12millionsharesheldbyZhongshanRuntianin“JonjeeHigh-tech”bywayofajudicialauction.The12millionshareshavebeendisposedofforRMB405,684,000.NoticeofauctionwasreceivedonDecember12,2023:theFutianCourtintendedtojudiciallyauction9millionunrestrictedpublicsharesofJonjeeHigh-techheldbyZhongshanRuntianontheJudicialAuctionOnlinePlatformfrom10:00a.m.onJanuary16,2024to10:00a.m.onJanuary17,2024(exceptfortheextensionofthetime),whichhasbeensuspendedduetothesupplementalsecurity.

(7)DuetothecaseoftheloancontractdisputebetweenZhongshanRuntianandChongqingTrustInc.,ShenzhenIntermediatePeople’sCourthasissuedanexecutionnotificationdemandingthedisposalof22millionsharesheldbyZhongshanRuntianin“JonjeeHigh-tech”atarealisedprice.OnJanuary17,2023,ChongqingTrustdisposedofatotalof5.7millionsharesheldbyZhongshanRuntianbywayofblocktrading.

(8)DuetothecaseoftheloancontractdisputebetweenZhongshanRuntianandBankofCommunicationsFinancialLeasingCo.,Ltd.,theIntermediatePeople’sCourtofZhongshanCity,GuangdongProvincehasissuedanexecutionrulingtoauctionoff8,329,457sharesheldbyZhongshanRuntianin“JonjeeHigh-tech”.On11May2023,BankofCommunicationsFinancialLeasingCo.,Ltd.disposedofthe8,329,457sharesheldbyZhongshanRuntianin“JonjeeHigh-tech”bywayofajudicialauction.TheauctionproceedsofRMB284.27million,whichhasbeenuseduptopayoffRMB202,451,688.15inthiscase,RMB269,851.69inexecutionfees,andRMB50,000inauxiliaryauctionfees.

(9)DuetothecaseoftheloancontractdisputebetweenZhongshanRuntianandBohaiTrust,theIntermediatePeople'sCourtofZhongshanCity,GuangdongProvincehasissuedanExecutionRuling,rulingthemandatoryrealisationof13.7millionsharesheldbytheentitysubjecttoenforcement,ZhongshanRuntian,in"JonjeeHigh-tech".AsofJune6,2023,all13.7millionshareshadbeendisposedof.ThecourthasdisbursedatotalofRMB

458,173,319.95toBohaiTrust,withapproximatelyRMB10millionoutstanding.BohaiTrusthasinitiatedseparatelegalproceedingsattheShenzhenCourtofInternationalArbitrationtorecovertheoutstandingbalanceandrealisethecollateral,andthepledgeguaranteeamountstoRMB35,504,500.Currently,thecaseisawaitingacourthearing.

(10)Duetothecaseofthetransferandbuy-backcontractdisputebetweenZhongshanRuntianandShenzhenQianhaiDongfangVenture,theIntermediatePeople'sCourtofShenzhenMunicipalityhasissuedanExecutionRuling,rulingthatthepropertyoftheentitiessubjecttoenforcement,includingShenzhenHualitong,ZhongshanRuntian,BaonengInvestmentandJushenghua,shouldbeseized,frozen,sequestered,withheld,withdrawnorallocatedtotheextentofatotalamountofRMB623,102,565.76(includingRMB43,513,215.76ofZhongshanRuntianInvestmentCo.,Ltd.),aswellasinterestonthedebtduringtheperiodofdelayedperformance,costsofenforcementapplications,andactualexpensesincurredduringtheenforcement.

(11)DuetothecaseofthefinancialloancontractdisputebetweenBankofTibetandLhasaBaochuangandZhongshanRuntian,thetotalenforcementamountstandsatRMB828,970,067.74,withRMB821,439,159.19alreadyenforced.InAugust2023,thecourtissuedaReinstatementofExecutionRuling,whichruledtowithholdandfreezethebankdepositsoftheentitiessubjecttoenforcementinthesumofRMB50,943,534.03,atotalenforcementfeeofRMB118,343.53,aswellasinterest,interestonthedebtduringtheperiodofdelayedperformance,andcaseacceptancefee.

(12)DuetothecaseoftheloancontractdisputebetweenShenzhenBaotaiHonghuaandZhongshanRuntian,HualitongandShenzhenJixiangService,ShenzhenBaotaiHonghuaappliedforenforcementofRMB1,205,000,000andinterest.Inanothercase,assetdisposalresultedinthedistributionofdisposalproceedsofRMB356,272,071.65.

(13)DuetothecaseoftheequitypledgedisputebetweenEssenceSecuritiesandZhongshanRuntian,theamountofthelitigationisRMB352,912,928.76.TheIntermediatePeople'sCourtofNanchangCityhasissuedafirst-instancejudgement,whichruledtorejectthelitigationrequestofEssenceSecurities.InSeptember2023,EssenceSecuritiesfiledanotherlawsuitwiththeFutiancourtinShenzhen,seekingpaymentfromZhongshanRuntianforfinancingfundsandinterest.TheclaiminthiscaseamountstoRMB128million.Thecaseiscurrentlyundergoingfirst-instanceproceedings.

(14)DuetothethreecasesofclaimtransactiondisputesbetweenGuangdongHuaxingBankCo.,Ltd.andJushenghua,ShumYipLogistics,BaonengInvestment,Hualitong,andZhongshanRuntian,judgementshavebeenrenderedinthefirstinstance.InCaseNo.(2022)Y.0303M.C.19249,ZhongshanRuntianisheldjointlyandseverallyliableforsettlingtheprincipalofRMB150,000,000andassociatedinterest.InCaseNo.(2022)Y.0303M.C.19248,ZhongshanRuntianbearsthejointandseveralliabilityforsettlingtheprincipalofRMB300,000,000andinterestofRMB22,500,000onthebondsinquestion.InCaseNo.(2022)Y.0303M.C.19250,ZhongshanRuntianisjointlyandseverallyliableforsettlingtheprincipalofRMB200,000,000andassociatedinterestonthebondsinquestion.Allthesecasesarecurrentlyinthesecondinstance.

(15)DuetothecaseofthefinanceleasecontractdisputebetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andKunshanJuTronNewEnergyTechnologyCo.,Ltd.,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,TaiyuanBaojuRealEstate,QianhaiHuabaoSupplyChain,ZhongshanRuntian,andPingAnSecurities,ZhongshanRuntianactsasaguarantorforthedebtofRMB120million.Thefirst-instancejudgementhasyettoberendered.

(16)DuetothecaseofthecorporatebondtradingdisputebetweenGuangdongHuaxingBankCo.,Ltd.andShumYipLogistics,Jushenghua,BaonengNewEnergyAutomobile,ShenzhenBaonengAutomobile,YaoZhenhua,BaonengInvestment,Hualitong,andZhongshanRuntian,ZhongshanRuntianactsasaguarantorforthedebtofRMB450million.Thecaseisstillatthestageofthefirstinstance.

(17)DuetothetwocasesoffinanceleasecontractdisputesbetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andQorosAutomotive,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,YaoZhenhua,TaiyuanBaojuRealEstate,ChongqingBaonengSupplyChain,GuangzhouBaonengCultureEntertainment,QianhaiHuabao

SupplyChain,ZhongshanRuntian,andPingAnSecurities,thetotalclaimamountisRMB186million,andZhongshanRuntianactsastheguarantorinthecases.Thecasesarecurrentlyinthefirst-instancestage.

(18)DuetothecaseofthefinanceleasecontractdisputebetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andShenzhenBaonengAutomobile,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,YaoZhenhua,TaiyuanBaojuRealEstate,GuangzhouBaonengCultureEntertainment,QianhaiHuabaoSupplyChain,ZhongshanRuntian,andPingAnSecurities,ZhongshanRuntianactsasaguarantorforthedebtofRMB210million.Thecaseiscurrentlyinthefirst-instancestage.

(19)DuetothecaseofthefinanceleasecontractdisputebetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andShenzhenHua'aiIndustrialDevelopment,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,YaoZhenhua,TaiyuanBaojuRealEstate,GuangzhouBaonengCultureEntertainment,QianhaiHuabaoSupplyChain,ZhongshanRuntian,andPingAnSecurities,ZhongshanRuntianactsasaguarantorforthedebtofRMB20.33million.Thecaseiscurrentlyinthefirst-instancestage.

(20)DuetothecaseofthefinanceleasecontractdisputebetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andBaonengAutomotiveResearchandDevelopment,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,YaoZhenhua,TaiyuanBaojuRealEstate,GuangzhouBaonengCultureEntertainment,QianhaiHuabaoSupplyChain,ZhongshanRuntian,andPingAnSecurities,ZhongshanRuntianactsasaguarantorforthedebtofRMB

22.38million.Thecaseiscurrentlyinthefirst-instancestage.

(21)DuetothetwocasesoffinanceleasecontractdisputesbetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andShenzhenBaonengAutomobile,QorosAutomotive,BaonengInvestment,Jushenghua,BaonengUrbanDevelopment,ZhongshanRuntian,YaoZhenhua,TengchongBeihaiWetland,GuangzhouBaonengCultureEntertainment,QianhaiHuabaoSupplyChain,andChuangbangGroup,thetotalclaimamountisRMB142million,andZhongshanRuntianactsastheguarantor.Thetwocasesarecurrentlyinthefirst-instancestage.

(22)DuetothecaseofthefinanceleasecontractdisputebetweenShandongTongdaFinancialLeasingCo.Ltd.andShenzhenBaonengAutomobile,BaonengInvestment,ZhongshanRuntian,WuhuBaonengRealEstate,ShenzhenXinchangEnterpriseManagementCo.,Ltd.,andChuangbangGroup,ZhongshanRuntianactsasaguarantorforthedebtofRMB260million.Thecaseiscurrentlyinthefirst-instancestage.

(23)DuetothecaseofthefinanceleasecontractdisputebetweenShandongTongdaFinancialLeasingCo.Ltd.andShumYipLogistics,BaonengInvestment,BaonengRealEstate,ZhongshanRuntian,WuhuBaonengRealEstate,andShenzhenHualitong,ZhongshanRuntianactsasaguarantorforthedebtofRMB160million.Thecaseiscurrentlyinthefirst-instancestage.

(24)DuetothetwocasesoffinanceleasecontractdisputesbetweenScienceCity(GZ)FinancialLeasingCo.,Ltd.andShenzhenHua'aiIndustrialDevelopment,YaoZhenhua,GuangzhouBaonengCultureEntertainment,QianhaiHuabaoSupplyChain,ZhongshanRuntian,andJushenghua,thetotalclaimamountisRMB122million,andZhongshanRuntianactsastheguarantor.Thetwocasesarecurrentlyinthefirst-instancestage.AsofDecember31,2023,thedetailsofZhongshanRuntian’scomparativelylargeamountofdebtwhichwasoverdueareasfollows:

Serialnumber

Note:AsofOctober31,2023,relatedstocksheldbyZhongshanRuntianhadbeenliquidatedbyAVICTrustthroughvariouschannels.However,sinceitisnotthefirstpledgee,theproceedsfromliquidationmustberetainedforwithdrawalbythefirstpledgee,EssenceSecurities.AVICTrusthaswithdrawnonlypartofthefundssofar.Duetothelargenumberofissuesandquantitiesoftrustproducts,theCompanyisstillnegotiatingwithAVICTrustonthedeductionmethodforprincipalandinterest,andnosolutionhasbeenfinalized.Therefore,theoutstandingloancannotbeadjustedfornow.Onceasolutionisfinalized,furtherdisclosurewillbemade.AsofDecember31,2023,Mr.YaoZhenhua’spersonalexecutioncasesareasfollows:

(1)Duetothecaseofdisputeovernotarisingcreditor’srightsdocumentsbetweenPingAnTrustCo.,Ltd.andShaoxingBaoruiRealEstateCo.,Ltd.,BaonengCityCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.,ShanghaiKaiyueInvestmentCo.,Ltd.andMr.YaoZhenhua,whichwasappliedforcompulsoryexecutionbyPingAnTrust,Mr.YaoZhenhuawasjointlyandseverallyliablefortheprincipalandinterestofthedebtofRMB420million.

(2)DuetothetrustloandisputebetweentheNationalTrustandShenzhenXinaoTradingCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,Mr.YaoZhenhuaandotherssignedrelevantguaranteecontracts,orderingShenzhenXinaoTradingCo.,Ltd.torepaytheloanprincipalofRMB290millionandrelatedinterestandlawsuitcosts.ShenzhenBaonengInvestmentGroupCo.,Ltd.,Mr.YaoZhenhuaandotherswerejointlyandseverallyliableforthedebt.

(3)DuetothefinancialborrowingbetweenZhongrongInternationalTrustCo.,Ltd.andBaonengAutomobileCo.,Ltd.,itappliedtotheBeijingThirdIntermediatePeople’sCourtforcompulsoryexecutionfornotarisationonthematter.SinceMr.YaoZhenhuaprovidedaguaranteeforthisloanbusinessandsignedtherelevantnotariseddocuments,hewasjointlyandseverallyliableforthedebtofRMB1,048million.

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

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

(6)DuetothedisputeovertheloancontractbetweenFuzhouBranchofXiamenInternationalBankCo.,Ltd.andShenzhenJushenghuaCo.,Ltd.,FuzhouBranchofXiamenInternationalBankCo.,Ltd.appliedtoShenzhenIntermediatePeople’sCourtforcompulsoryexecution.Mr.YaoZhenhua,astheguarantoroftheloanprincipalofRMB2.16billion,signedthecorrespondingGuaranteeContractandassumedjointandseveralliabilitiesforthedebt.

(7)DuetothefinancialloandisputebetweenGuangdongFinanceTrustCo.,Ltd.andZhongshanRuntian,GuangdongFinanceTrustCo.,Ltd.appliedtoShenzhenIntermediatePeople’sCourtforcompulsoryexecution.Mr.YaoZhenhua,astheguarantoroftheloan,signedthecorrespondingGuaranteeContractandwasjointlyandseverallyliableforthedebtofRMB720million.The26,550,000sharesofJonjeeHigh-techheldbyZhongshanRuntianInvestmentCo.,Ltd.havebeenrealisedonSeptember13,2022,withareceivedamountofRMB793,755,369.22,whichisaboutRMB90milliondifferentfromtheowedamountofRMB882,199,570.79submittedtothecourtbytheapplicantforexecution.Therefore,thecasehasnotbeensettledforthetimebeing.

(8)DuetothefinancialdebtdisputebetweenChinaRailwayTrustCo.,Ltd.andBaonengAutomobileGroupCo.,Ltd.andKunmingBaojunRealEstateCo.,Ltd.,itappliedtoChengduIntermediatePeople’sCourtofSichuanProvinceforcompulsoryexecution.Astheguarantorofthedebt,Mr.YaoZhenhuasignedthecorresponding

GuaranteeContractandwasjointlyandseverallyliableforthedebtofRMB2,095million.Asettlementagreementhasbeensignedinthiscase.

(9)DuetothefinancialdebtdisputebetweenChinaRailwayTrustCo.,Ltd.andBaonengAutomobileGroupCo.,Ltd.andKunmingJianpengRealEstateDevelopmentCo.,Ltd.,itappliedtoChengduIntermediatePeople’sCourtofSichuanProvinceforcompulsoryexecution.Mr.YaoZhenhua,astheguarantorofthedebt,signedthecorrespondingGuaranteeContractandwasjointlyandseverallyliableforthedebtofRMB836million.Asettlementagreementhasbeensignedinthiscaseandtheexecutionhasbeenterminated.

(10)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenChanganInternationalTrustCo.,Ltd.andShenzhenBaonengInvestmentGroupCo.,Ltd.,WuxiBaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,ChanganTrustappliedforcompulsoryexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB925million.

(11)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenChanganInternationalTrustCo.,Ltd.andShenzhenBaonengInvestmentGroupCo.,Ltd.,WuxiBaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,ChanganTrustappliedforcompulsoryexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB1,117million.

(12)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenChinaMinshengTrustCo.,Ltd.andthedefendantsShenzhenBaonengInvestmentGroupCo.,Ltd.,HefeiBaohuiRealEstateCo.,Ltd.,ShenzhenBaonengEnterpriseManagementCo.,Ltd.,AnhuiBaonengLandCo.,Ltd.,andMr.YaoZhenhua,MinshengTrustappliedforcompulsoryexecution.Astheguarantorofthedebt,Mr.YaoZhenhuaboreunlimitedseveralandjointliabilityforthedebtofRMB4,207million.

(13)Duetothecaseofnotarisingcreditor’srightsdocumentsbetweenShanghaiAijianTrustCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ChiaTai(Shenzhen)DevelopmentCo.,Ltd.,HefeiBaohuiRealEstateCo.,Ltd.,HefeiBaonengRealEstateDevelopmentCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andMr.YaoZhenhua,AijianTrustappliedtothecourtforcompulsoryexecution.Astheguarantorofthedebt,Mr.YaoZhenhuawasjointlyandseverallyliableforthedebtofRMB416million.

(14)DuetothedisputeovertheloancontractwithBaonengAutomobileGroupCo.,Ltd.,ChongqingInternationalTrustappliedtothecourtforcompulsoryexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB2,186million.

(15)Duetothecaseofnotarisingcreditor’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,MinshengTrustappliedtothecourtforcompulsoryexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB2,238million.

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

(18)DuetothefinancialloancontractdisputebetweenAVICTrustCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,BaonengReal

EstateCo.,Ltd.,andWuhuBaonengRealEstateCo.,Ltd.,BaonengCityCo.,Ltd.,TengchongBeihaiWetlandEco-TourismInvestmentCo.,Ltd.,andMr.YaoZhenhua,AVICTrustappliedtothecourtforexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB549million(principal,exclusiveofinterest,penaltyinterest,etc.).

(19)DuetotheloancontractdisputebetweenShenzhenBranchofPingAnBankCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengRealEstateCo.,Ltd.,ShenzhenFirstSpaceOperationManagementCo.,Ltd.,Mr.YaoZhenhuaandBaonengCityCo.,Ltd.,ShenzhenBranchappliedtothecourtforexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB3,433million.Asettlementhasbeenreachedinthiscaseandtheexecutionhasbeenterminated.

(20)DuetotheexecutionoflawsuitcostsoftheloancontractdisputebetweenShenzhenBranchofPingAnBankCo.,Ltd.andBaonengCityCo.,Ltd.,BaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,Mr.YaoZhenhuaandShenzhenLiujinInvestmentCo.,Ltd.,theHigherPeople’sCourtofGuangdongProvinceappointedShenzhenIntermediatePeople’sCourtofGuangdongProvincetoexecutethecase.Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,wasjointlyandseverallyliableforthelawsuitcostsofRMB13,920,800arisingfromtheloancontractdispute.Thesaidlawsuitcostshavebeentransferredandexecuted.

(21)DuetotheloancontractdisputebetweenShenzhenBranchofPingAnBankCo.,Ltd.andBaonengCityCo.,Ltd.,BaonengRealEstateCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.,Mr.YaoZhenhuaandShenzhenLiujinInvestmentCo.,Ltd.,ShenzhenBranchofPingAnBankCo.,Ltd.appliedtothecourtforexecution.Mr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB5,562million.Inthiscase,RMB3,674millionwasobtainedfromauctionofresidentialunit,andRMB2,226millionwasrepaidtoPingAnBankfordebtrepaymentafterdeductingtheappropriatetaxesandfees.

(22)Duetothecaseofexecutionofnotarisingcreditor’srightsdocumentsbetweenChongqingInternationalTrustCo.,Ltd.andShenzhenJushenghuaCo.,Ltd.,ZhongshanRuntian,ShenzhenBaonengInvestmentGroupCo.,Ltd.,andMr.YaoZhenhua,ChongqingInternationalTrustCo.,Ltd.ChongqingInternationalTrustCo.,Ltd.appliedtothecourtforexecution,andMr.YaoZhenhua,astheguarantorofthedebt,wasjointlyandseverallyliableforthedebtofRMB541million.

(23)DuetothecasethatTibetBankCo.,Ltd.suedLhasaBaochuangAutomobileSalesCo.,Ltd.,Mr.YaoZhenhua,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.,andShenzhenShumYipLogisticsGroupCo.,Ltd.werejointlyandseverallyliableforthelawsuitcostsoftheloancontractdispute,whichwasexecutedbytheLhasaIntermediatePeople’sCourtoftheTibetAutonomousRegion,Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,wasjointlyandseverallyliableforthelawsuitcostsofRMB5.11millionarisingfromtheloancontractdispute.

(24)DuetothecasethatTibetBankCo.,Ltd.suedLhasaBaochuangAutomobileSalesCo.,Ltd.,Mr.YaoZhenhua,ShenzhenBaonengInvestmentGroupCo.,Ltd.,ShenzhenJushenghuaCo.,Ltd.andShenzhenShumYipLogisticsGroupCo.,Ltd.werejointlyandseverallyliableforthedebtsarisingfromtheloancontractdisputeandwereexecutedbyLhasaIntermediatePeople’sCourtoftheTibetAutonomousRegion.Mr.YaoZhenhua,astheguarantoroftheloancontractdispute,borejointandseveralguaranteeliabilityforthedebtofRMB829millionarisingfromtheloancontractdispute,whichhasbeenpaidoff.

(25)DuetothecasethatChongqingInternationalTrustCo.,Ltd.suedBaonengAutomobileGroupCo.,Ltd.,NanjingBaonengUrbanDevelopmentCo.,Ltd.,ShenzhenBaonengInvestmentGroupCo.,Ltd.,BaonengHoldings(China)Co.,Ltd.andYaoZhenhua,astheguarantorofthedebt,Mr.YaoZhenhuawasexecutedbytheChongqingNo.5IntermediatePeople’sCourt,andhewasjointlyandseverallyliableforthedebtofRMB2,186million.Mr.YaoZhenhuahadnodebtwithcomparativelylargeamountthathadnotbeenpaidwhendue.

AccordingtothereplyoftheshareholderShenzhenGuanlongLogisticsCo.,Ltd.:AsofDecember31,2023,ShenzhenGuanlongLogisticsCo.,Ltd.hasnotreceivedrelevantinformationonsharefreezingandlawsuit,andithadnodebtwithcomparativelylargeamountthathadnotbeenpaidwhendue.”

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

ExternalguaranteesoftheCompanyanditssubsidiaries(excludingtheguaranteesforsubsidiaries)

Energy-SavingGlassCo.,Ltd.

ArchitecturalGlassCo.,Ltd.

GlassCo.,Ltd.

GlassCo.,Ltd.

DongguanCSGPV-techCo.,Ltd.

AnhuiCSGNewEnergyMaterialTechnologyCo.,Ltd.

MiningCo.,Ltd.

EnergyTechnologyCo.,Ltd.

guarantee

Totalamountofapprovedguaranteesduringthereportperiod(A1+B1+C1)

Note:1.The2024AnnualGeneralMeetingoftheCompanyreviewedandpassedtheProposalforthe2025GuaranteePlan,andapprovedtheCompanyanditssubsidiariestoprovideguaranteesinatotalamountofnotexceedingRMB25,800million(includingtheeffectiveandunexpiredamount)forthe2025creditlinesfromfinancialinstitutionstoguaranteedentitieswithinthescopeofconsolidatedstatements.Amongthem,thetotalamountofguaranteesforallguaranteedentitieswithassetliabilityratioof70%oraboveshallnotexceedtheequivalentamountofRMB6,200million(includingtheeffectiveandunexpiredamount).TheCompany'sexternalguaranteesareallprovidedforsubsidiarieswithinthescopeoftheconsolidatedstatement.AsofJune30,2025,theactualguaranteebalancewasRMB8,139.54million(ofwhichtheactualguaranteebalancewithliability/assetratioof70%orabovewasRMB651.73million),accountingfor60.13%oftheparentcompany'snetassetsofRMB13,535.9498millionattheendof2024,and26.07%ofthetotalassetsofRMB31,220.4179millionTheCompanyhasnooverdueguarantee.

2.TheCompany's2024AnnualGeneralMeetingreviewedandpassedtheProposalontheDevelopmentofAssetPoolBusiness.InordertoachievetheoverallmanagementoftheCompany'sassetssuchasbillsandlettersofcredit,theGeneralMeetingofShareholdersapprovedtheCompanyanditssubsidiariestoconductassetpoolbusinessofnomorethanRMB2billion.Underthepremiseofcontrollablerisks,variousguaranteemethodssuchasmaximumpledge,generalpledge,depositcertificatepledge,billpledge,andmarginpledgecanbeadoptedforbusinessdevelopment.AsofJune30,2025,theactualpledgeamountoftheassetpoolbusinesswasRMB683.01million,andthefinancingbalancewasRMB682.64million.ExplanationoncompoundguaranteesNil

3.EntrustedFinancing

√Applicable□Notapplicable

Unit:RMB0,000

Type

Detailsofhigh-riskentrustedfinancingwithsignificantsingleamountorlowsecurityandpoorliquidity

□Applicable√NotapplicableEntrustedfinancingexpectedtobeunabletorecovertheprincipalorothercircumstancesthatmayleadtoimpairment

□Applicable√Notapplicable

4.Othermaterialcontracts

√Applicable□Notapplicable

CSGHoldingCo.,Ltd.

Note:Theabovematerialcontractsarelong-termsalescontractssignedbetweentheCompanyandcustomers.Atotalsupplyvolumeisgiveninsuchacontract,thespecificpriceisnegotiatedonamonthlybasis,andthetotalcontractamountissubjecttothefinaltransactionamount.XIII.Statementonotherimportantmatters

√Applicable□Notapplicable

1.Ultra-short-termfinancingbillsOnMay16,2022,theCompany's2021AnnualGeneralMeetingreviewedandapprovedthe"ProposalonApplicationforRegistrationandIssuanceofMedium-TermNotesandUltra-short-termFinancingBills",whichagreedthattheCompanywouldregisterandissueultra-short-termfinancingbillswitharegisteredamountofnotmorethanRMB1billion.TheCompanycanissueoneormoretimeswithinthevalidityperiodoftheregistrationaccordingtotheactualcapitalneedsandthecapitalsituationoftheinter-bankmarket.OnOctober30,2023,theDealersAssociationheldthe128thregistrationmeetingin2023anddecidedtoaccepttheregistrationofultra-short-termfinancingnoteswithatotalamountofRMB1billionandavalidityperiodoftwoyears.OnDecember12,2024,theCompanyissuedthefirstphaseof2024ultra-short-termfinancingnotes(KechuangNotes)withatotalamountof300millionyuanandatermof270days,withanissueinterestrateof2.4%andpaymentdateofSeptember9,2025.OnApril25,2025,thecompanyissuedthefirstphaseof2025supershort-termfinancingbond(KechuangNote)withatotalamountof300millionyuanandatermof270days,theissueinterestrateis2.27%,andtheredemptiondateisJanuary23,2026.

2.Medium-termnotesOnMay16,2022,theCompany's2021AnnualGeneralMeetingreviewedandapprovedthe"ProposalonApplicationforRegistrationandIssuanceofMedium-termNotesandUltra-short-termFinancingBills",whichagreedthattheCompanywouldregisterandissuemedium-termnoteswitharegisteredamountofnotmorethanRMB2billion.Actualcapitalneedsandinter-bankmarketcapitalstatus,canbeissuedoneormoretimeswithinthevalidityperiodofregistration.OnOctober30,2023,theDealersAssociationheldits128thregistrationmeetingfor2023anddecidedtoaccepttheregistrationofmedium-termnoteswithatotalvalueofRMB2billionandavalidityperiodoftwoyears.

3.ThematterofthespecialfundofRMB171millionfortalentintroductionRegardingthespecialfundofRMB171millionfortalentintroduction,theCompanyfiledaninfringementcompensationlawsuitagainstZengNanandothersandYichangHongtaiRealEstateCo.,Ltd.onDecember15,2021,andtheShenzhenIntermediatePeople'sCourtofficiallyaccepteditonJanuary28,2022.ThefirsttrialofthecasewascompletedinShenzhenIntermediatePeople'sCourtonJune21,2022.On4June2024,theCompanyreceived

theCivilJudgmentofthefirstinstanceissuedbyShenzhenIntermediatePeople'sCourt,whichrejectedalloftheCompany'slitigationrequests.InJune2024,theCompanyfiledanappealtotheGuangdongHigherPeople'sCourt.ThesecondtrialofthecasewasheldintheGuangdongHigherPeople'sCourtonSeptember12,2024,andthecaseiscurrentlyintheprocessofsecondtrial.

4.Postponedre-electionoftheBoardofDirectorsandtheSupervisoryCommitteeThetermofofficeoftheninthBoardofDirectorsandSupervisoryCommitteeoftheCompanyexpiredon21May2023,andre-electionisprogressingsteadilyasofnow.AccordingtoArticles96and138oftheArticlesofAssociationofCSGHoldingCo.,Ltd.,ifanewdirector/supervisorisnotre-electedintimeupontheexpiryofthetermofofficeofadirector/supervisor,beforethere-electeddirector/supervisorassumeshis/heroffice,theformerdirector/supervisorshallstillperformthedutiesofadirector/supervisorinaccordancewiththeprovisionsoflaws,administrativeregulations,departmentalrulesandtheArticlesofAssociation.Therefore,themembersoftheninthBoardofDirectorsandSupervisoryCommitteearestillperformingtheirdutiesinanormalmanner,andthere-electionoftheBoardofDirectorsandtheSupervisoryCommitteewouldnothaveanyadverseimpactontheCompany'soperationandgovernance.

XIV.SignificanteventsofsubsidiariesoftheCompany

□Applicable√Notapplicable

SectionVI.ChangesinSharesandParticularsaboutShareholders

I.ChangesinShareCapital

1.ChangesinShareCapital

Unit:Share

BeforetheChange

Reasonforequitychanges

□Applicable√NotapplicableApprovalonequitychanges

□Applicable√NotapplicableTransferofownershipforequitychanges

□Applicable√NotapplicableImplementationprogressofsharebuyback

√Applicable□Notapplicable

TheCompanyheldanInterimMeetingoftheNinthBoardofDirectorsandtheFirstExtraordinaryGeneralShareholders'Meetingof2025on13February2025,and4March2025,respectively.ThemeetingsreviewedandapprovedtheProposalontheBuybackofCertainRMBOrdinaryShares(AShares)andDomesticallyListedForeignShares(BShares)oftheCompany,authorizingtheCompanytouseitsownfundsandself-pooledfunds(includingspecialbuybackloanfromcommercialbank)tobuybackcertainRMBordinaryshares(AShares)anddomesticallylistedforeignshares(BShares)throughtheShenzhenStockExchangetradingsysteminacentralizedbiddingprocess.ThetotalamountoffundsusedforthebuybackofAshareswillbenolessthanRMB243millionandnomorethanRMB485million,includingtransactionfeesandotherrelatedexpenses;andthetotalamountoffundsusedforthebuybackofBshareswillbenolessthanHKD50millionandnomorethanHKD100million,includingforeignexchangepurchases,transactionfees,andotherrelatedexpenses.ThebuybackpriceofAshareswillnotexceedRMB7.60pershare,andthebuybackpriceofBshareswillnotexceedHKD3.13pershare.AllAsharesboughtbackbytheCompanywillbeusedforequityincentivesoremployeestockownershipplans(implementationofwhichrequiresapprovalfromtheCompany'sBoardofDirectorsandgeneralshareholders'meeting).AllBsharesboughtbackwillberetired.ThebuybackperiodistwelvemonthsfromthedatethebuybackplanisapprovedbytheCompany'sgeneralshareholders'meeting.Fordetails,pleaserefertotheReportontheBuybackofCertainRMBOrdinaryShares(AShares)andDomesticallyListedForeignShares(BShares)oftheCompanydisclosedon25March2025onwww.cninfo.com.cn.AftertheimplementationoftheCompany's2024annualequitydistribution,theupperlimitoftheCompany'sbuybackpriceofAshareshasbeenadjustedfromnomorethanRMB7.60persharetonomorethanRMB7.53pershare.Theestimatedbuybackquantityaftertheadjustmentwillbenolessthan44,443,773sharesandnomorethan76,581,887shares.ThebuybackpriceofBshareshasbeenadjustedfromnomorethanHKD3.13persharetonomorethanHKD3.05pershare.Theestimatedbuybackquantityaftertheadjustmentwillbenolessthan22,139,398sharesandnomorethan38,532,841shares.Asof30June2025,theCompanyhadboughtbackatotalof33,034,797Asharesand13,186,096Bsharesthroughadedicatedbuybacksecuritiesaccountthroughcentralizedbidding,togetherrepresenting1.5052%oftheCompany'stotalsharecapital.ThehighesttransactionpricefortheserepurchasedAshareswasRMB5.04pershare(withintheupperlimitofRMB7.60persharestipulatedinthebuybackplan),andthelowesttransactionpricewasRMB4.54pershare.ThetotalamountpaidforthebuybackofAshareswasRMB157,090,412.04(excludingtransactionfeessuchasstampdutyandcommissions).ThehighesttransactionpricefortherepurchasedBshareswasHKD1.94pershare(withintheupperlimitofHKD3.13persharestipulatedinthebuybackplan),andthelowesttransactionpricewasHKD1.65pershare.ThetotalamountpaidforthebuybackofBshareswasHKD23,397,035.25(RMB21,336,926.30,excludingtransactionfeessuchasstampdutyandcommissions,basedonthecentralparityrateofHKD1toRMB0.91195asof30June2025).ThisbuybackcompliedwithapplicablelawsandregulationsandwasinlinewiththeCompany'sestablishedbuybackplan.Fordetails,pleaserefertotheCompany'sAnnouncementonShareBuybackProgresspublishedon2July2025onwww.cninfo.com.cn.Implementationprogressofsharebuybackreductionthroughcentralizedbidding

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributableto

commonshareholdersofCompanyinthelatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytobedisclosedorneedtobedisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesofrestrictedshares

√Applicable□Notapplicable

Unit:Share

Shareholders’name

II.IssuanceandlistingofSecurities

□Applicable√NotapplicableIII.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding

Unit:share

ForeseaLifeInsuranceCo.,Ltd.–HailiNiannian

end

Specialnote:OnJuly11,2022,attheCompany'sSecondExtraordinaryGeneralMeetingin2022,ForeseaLifeInsuranceCo.,Ltd.votedinfavorofallproposals,andZhongshanRuntianInvestmentCo.,Ltd.votedagainstallproposals,onAugust3,2022,attheCompany'sThirdExtraordinaryGeneralMeetingin2022,ForeseaLifeInsuranceCo.,Ltd.votedinfavorofallproposals,andZhongshanRuntianInvestmentCo.,Ltd.votedagainstallproposals.Top10shareholdersinvolvedinrefinancingshareslending

□Applicable√NotapplicableThetop10shareholdersandthetop10shareholdersofunlimitedoutstandingshareshavechangedfromthepreviousperiodduetorefinancinglending/restitutionreasons

□Applicable√NotapplicableWhetherthecompany’stop10commonshareholdersandthetop10shareholdersofordinarysharessubjecttounlimitedsaleshaveagreedtobuybacktransactionsduringthereportperiod

□Yes√NoThetop10shareholdersofordinarysharesandthetop10shareholdersofordinaryshareswithunrestrictedsalesconditionsdidnotengageinanyagreedrepurchasetransactionsduringthereportingperiod.

IV.Changesintheshareholdingofdirectors,supervisorsandseniorexecutives

□Applicable√Notapplicable

TheshareholdingsituationoftheCompany'sdirectors,supervisorsandseniormanagersdidnotchangeduringthereportingperiod,whichcanbedetailedinthe2024annualreport.V.Changesofcontrollingshareholderoractualcontroller

Changesofcontrollingshareholdersinthereportperiod

□Applicable√NotapplicableChangesofactualcontrollerinthereportperiod

□Applicable√Notapplicable

VI.PreferredShares

□Applicable√NotapplicableTherewerenopreferredsharesintheCompanyduringthereportperiod.

SectionVII.Bonds

√Applicable□NotapplicableI.Enterprisebonds

□Applicable√NotapplicableTheCompanyhadnoenterprisebondsduringthereportperiod.

II.Corporatebonds

□Applicable√NotapplicableThecompanyhadnocorporatebondsduringthereportingperiod.

III.Debtinstrumentsasanon-financialenterprise

√Applicable□Notapplicable

1.Basicinformationaboutcorporatebonds

Unit:RMB0,000

Bondname

Tradingsystemapplicable

Overduebonds

□Applicable√Notapplicable

2.Triggeringandexecutionofissuerorinvestoroptionclausesandinvestorprotectionclauses

□Applicable√Notapplicable

3.Adjustmentofcreditratingresultsduringthereportperiod

□Applicable√Notapplicable

4.Theimplementationandchangesofguarantees,debtrepaymentplansandotherdebtrepaymentguaranteemeasuresduringthereportingperiodandtheirimpactontherightsandinterestsofbondinvestors

□Applicable√Notapplicable

IV.Convertiblecorporatebonds

□Applicable√NotapplicableDuringthereportperiod,theCompanydidnothaveconvertiblecorporatebonds.V.Thelosswithinthescopeofconsolidatedstatementsinthereportperiodexceeded10%ofthenetassetsattheendofthepreviousyear

□Applicable√NotapplicableVI.KeyaccountingdataandfinancialinformationoftheCompanyinthepasttwoyears

Unit:RMB0,000

SectionVIII.FinancialReport

I.ReportoftheauditorsWhethertheSemi-annualReporthasbeenauditedornot

□Yes√No

II.FinancialstatementsAllamountsinthetablesintheNotestotheFinancialStatementsareexpressedinRMB.

1.ConsolidatedbalancesheetPreparedby:CSGHoldingCo.,Ltd.

30June2025

Unit:RMB

Item

Item

Legalrepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinHeadofaccountingdepartment:

WangWenxin

2.Balancesheetoftheparentcompany

Unit:RMB

Cashatbankandonhand

Totalliabilitiesandequity

3.Consolidatedincomestatement

Unit:RMB

Item

Legalrepresentative:ChenLinPrincipalinchargeofaccounting:WangWenxinHeadofaccountingdepartment:

WangWenxin

4.Incomestatementoftheparentcompany

Unit:RMB

5.Consolidatedcashflowstatement

Unit:RMB

Item

6.Cashflowstatementoftheparentcompany

Unit:RMB

Item

7.ConsolidatedstatementofchangesinequityH12025

Unit:RMB

Item

H12024

Unit:RMB

Item

2.Distributiontoshareholders

Item

8.Statementofchangesinequityoftheparentcompany

H12025

Unit:RMB

Item

H12024

Unit:RMB

Item

III.GENERALINFORMATIONCSGHoldingCo.,Ltd.(the“Group”)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).TheGroupwasregisteredinShenzhen,GuangdongProvinceofthePeople'sRepublicofChinaanditsheadquartersislocatedinShenzhen,GuangdongProvinceofthePeople'sRepublicofChina.TheGroupissuedRMB-denominatedordinaryshares(“A-share”)andforeignshares(“B-share”)publiclyinOctober1991andJanuary1992respectively,andwaslistedonShenzhenStockExchangeonFebruary1992.TheGroupanditssubsidiaries(collectivelyreferredtoasthe“Group”)aremainlyengagedinthemanufactureandsalesoffloatglass,photovoltaicglass,specializedglass,engineeringglass,energysavingglass,siliconrelatedmaterials,polycrystallinesiliconandsolarcomponentsandelectronic-gradedisplaydeviceglassandtheconstructionandoperationofphotovoltaicplantetc.Detailsonthemajorsubsidiariesincludedintheconsolidatedscopeinthecurrentperiodwerestatedinthenotestothefinancialstatements.

IV.BASISOFPREPARATIONOFFINANCIALSTATEMENTS

1.BasisofpreparationoffinancialstatementsThesefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisesandtheirapplicationguidelines,interpretationsandotherrelevantregulationsissuedbytheMinistryofFinance(collectively:

“AccountingStandardsforBusinessEnterprises”).Inaddition,theGroupalsodisclosesrelevantfinancialinformationinaccordancewiththeChinaSecuritiesRegulatoryCommission’sInformationDisclosureandPreparationRulesforCompaniesthatOfferSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReports(Revisedin2023).TheGroup’saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstrumentsandinvestmentproperties,thesefinancialstatementsaremeasuredonahistoricalcostbasis.Ifanassetisimpaired,correspondingimpairmentprovisionswillbemadeinaccordancewithrelevantregulations.

2.Goingconcern

Thepresentfinancialreporthasbeenpreparedonthebasisofgoingconcernassumptions.

V.SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATESThedepreciationoffixedassets,amortizationofintangibleassets,capitalizationconditionsforR&Dexpensesandrevenuerecognitionpoliciesbasedonitsownproductionandoperationcharacteristics.Forspecificaccountingpolicies,pleaserefertoNote.

1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises

ThisfinancialstatementcomplieswiththerequirementsoftheAccountingStandardsforBusinessEnterprisesandtrulyandcompletelyreflectstheGroup’sconsolidatedandcompanyfinancialstatusasof30June2025,aswellastheconsolidatedandcompanyoperatingresults,consolidatedandcompanycashflowsandotherrelevantinformationfromJanuarytoJune2025.

2.AccountingperiodTheGroupadoptstheGregoriancalendaryear,thatis,from1Januaryto31Decembereachyear.

3.OperatingcycleTheGroup’soperatingcycleis12months.

4.RecordingcurrencyTheGroupanditsdomesticsubsidiariesuseRMBastheirfunctionalcurrencyforaccounting.TheGroup’soverseassubsidiariesdeterminetheirrecordingcurrencybasedonthecurrencyofthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheGroupinpreparingthesefinancialstatementsisRMB.

5.Materialitycriteriadeterminationmethodandselectionbasis

?Applicable□Notapplicable

Item

6.Accountingtreatmentofbusinesscombinationsunderthecommoncontrolandundernon-commoncontrol

(1)BusinesscombinationsinvolvingenterprisesundercommoncontrolForbusinessmergersundercommoncontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyduringthemergershallbemeasuredbasedonthebookvalueofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthemergerdate.Thedifferencebetweenthebookvalueofthemergerconsideration(orthetotalfacevalueofthesharesissued)andthebookvalueofthenetassetsobtainedinthemergerisadjustedtothecapitalreserve(sharepremium).Ifthecapitalreserve(sharepremium)isinsufficienttooffsetit,theretainedearningsareadjusted.Themergerofenterprisesunderthesamecontrolisrealizedstepbystepthroughmultipletransactions.Theassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyinthemergershallbemeasuredbasedonthebookvalueintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthedateofmerger;thebookvalueoftheinvestmentsheldbeforethemergerplusthebookvalueofthenewlypaidconsiderationonthedateofmergerThedifferencebetweenthesumandthebookvalueofthenetassetsobtainedinthemergershallbeadjustedtothecapitalreserve(equitypremium).Ifthecapitalreserveisinsufficientforoffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythemergingpartybeforeitobtainedcontrolofthemergedpartyhasbeenconfirmedtoberelevantbetweenthedateofacquiringtheoriginalequityandthedatewhenthemergingpartyandthemergedpartyareunderthefinalcontrolofthesameparty,whicheverislater,tothedateofmerger.Changesinprofitsandlosses,othercomprehensiveincomeandotherowners’equityshouldbeoffsetagainsttheopeningretained

earningsorcurrentprofitsandlossesduringthecomparativestatementperiodrespectively.

(2)Businesscombinationnotundercommoncontrol

Forbusinesscombinationsnotundercommoncontrol,thecombinationcostshallbetheassetspaid,liabilitiesincurredorassumed,andthefairvalueofequitysecuritiesissuedtoobtaincontrolofthepurchasedpartyontheacquisitiondate.Onthepurchasedate,theacquiredassets,liabilitiesandcontingentliabilitiesofthepurchasedpartyarerecognizedatfairvalue.Ifthemergercostisgreaterthanthefairvalueshareoftheacquiree’sidentifiablenetassetsobtainedinthemerger.Thedifferenceisrecognizedasgoodwill,andissubsequentlymeasuredatcostlessaccumulatedimpairmentreserves;ifthemergercostislessthantheacquiree’sidentifiablenetassetsacquiredinthemerger,thedifferenceisrecognizedasgoodwill.Thedifferencebetweenthefairvalueofthenetassetswillbeincludedinthecurrentprofitandlossafterreview.Themergerofenterprisesnotundercommoncontrolisrealizedstepbystepthroughmultipletransactions.Themergercostisthesumoftheconsiderationpaidonthepurchasedateandthefairvalueofthepurchasedparty’sequityheldbeforethepurchasedateonthepurchasedate.Fortheequityofthepurchasedpartythathasbeenheldbeforethepurchasedate,itwillberemeasuredaccordingtothefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvaluewillbeincludedintheinvestmentincomeofthecurrentperiod;Thepurchaser’sequityheldbeforethepurchasedateinvolvesothercomprehensiveincome,changesinotherowners’equityareconvertedintocurrentincomeonthepurchasedate,othercomprehensiveincomearisingfromtheinvestee’sremeasurementofthenetliabilitiesorchangesinnetassetsofthedefinedbenefitplan,andothercomprehensiveincomeoriginallydesignatedasfairvalueExceptforothercomprehensiveincomerelatedtoinvestmentsinnon-tradingequityinstrumentsthataremeasuredandwhosechangesareincludedinothercomprehensiveincome.

(3)HandlingofTransactionCostsinBusinessCombinations

Intermediaryfeessuchasauditing,legalservices,evaluationandconsulting,andotherrelatedmanagementfeesincurredforbusinessmergersareincludedinthecurrentprofitandlosswhenincurred.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedasconsiderationforthemergershallbeincludedintheinitialrecognitionamountoftheequitysecuritiesordebtsecurities.

7.Judgmentstandardsforcontrolandmethodsforpreparingconsolidatedfinancialstatements

(1)Controlcriteria

Thescopeofconsolidationinconsolidatedfinancialstatementsisdeterminedbasedoncontrol.ControlmeansthattheGrouphaspowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelevantactivitiesoftheinvestedunit,andhastheabilitytouseitspowerovertheinvestedunittoaffectitsreturnamount.TheGroupwillreassesswhenchangesinrelevantfactsandcircumstancesleadtochangesintherelevantelementsinvolvedinthedefinitionofcontrol.Whenjudgingwhethertoincludestructuredentitiesintothescopeofconsolidation,theGroupcomprehensivelyconsidersallfactsandcircumstances,includingassessingthepurposeanddesignofthestructuredentities,identifyingthetypesofvariablereturns,andwhetheritbearspartorallofthereturnsbyparticipatinginitsrelatedactivities.Evaluatewhetherthestructuredentityiscontrolledbasedonvariability,etc.

(2)HowtoprepareconsolidatedfinancialstatementsTheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheGroupanditssubsidiaries,andarepreparedbytheGroupbasedonotherrelevantinformation.Whenpreparingconsolidatedfinancialstatements,theaccountingpoliciesandaccountingperiodrequirementsoftheGroupanditssubsidiariesareconsistent,andsignificantinter-companytransactionsandbalancesareoffset.

SubsidiariesandbusinessesthatareaddedduetobusinesscombinationsunderthesamecontrolduringthereportingperiodaredeemedtobeincludedinthescopeofconsolidationoftheGroupfromthedatetheyarebothcontrolledbytheultimatecontrollingparty.Theoperatingresultsandcashflowsfromthedateoftheannouncementareincludedintheconsolidatedincomestatementandconsolidatedcashflowstatementrespectively.Forsubsidiariesandbusinessesthatareaddedduetobusinesscombinationsnotundercommoncontrolduringthereportingperiod,theincome,expenses,andprofitsofthesubsidiariesandbusinessesfromthedateofacquisitiontotheendofthereportingperiodareincludedintheconsolidatedincomestatement,andtheircashflowsareincludedintheconsolidatedcashflowstatement.Thepartofthesubsidiary’sshareholders’equitythatisnotownedbytheGroupislistedseparatelyasminorityshareholders’equityintheconsolidatedbalancesheetundershareholders’equity;theshareofthesubsidiary’scurrentnetprofitandlossthatisminorityshareholders’equityislistedintheconsolidatedincomestatement.Thenetprofititemislistedundertheitem“Profitsandlossesofminorityshareholders”.Ifthelossesofasubsidiarysharedbyminorityshareholdersexceedtheminorityshareholders’shareoftheopeningowner’sequityofthesubsidiary,thebalancewillstilloffsettheminorityshareholders’equity.

(3)Purchaseofminorityshareholders’equityinsubsidiaries

Thedifferencebetweenthenewlyacquiredlong-termequityinvestmentcostduetothepurchaseofminoritysharesandtheshareofthesubsidiary’snetassetscalculatedcontinuouslyfromthedateofpurchaseormergerbasedonthenewshareholdingratio,andwithoutlosingcontrolThedifferencebetweenthedisposalpriceobtainedfromthepartialdisposaloftheequityinvestmentinthesubsidiaryandthecorrespondingshareofthesubsidiary’snetassetscalculatedcontinuouslyfromthedateofpurchaseormergerdatecorrespondingtothedisposalofthelong-termequityinvestmentshallbeadjustedintheconsolidatedbalancesheet.Capitalreserve(equitypremium/capitalpremium),ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.

(4)Treatmentoflossofcontrolofsubsidiaries

Ifthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityshallberemeasuredaccordingtoitsfairvalueonthedateoflossofcontrol;thesumoftheconsiderationobtainedfromthedisposaloftheequityandthefairvalueoftheremainingequityshallbelessCalculatedbasedontheoriginalshareholdingratio,thesumoftheshareofthebookvalueofthenetassetsandgoodwilloftheoriginalsubsidiarycalculatedcontinuouslyfromthedateofpurchaseshallbeincludedintheinvestmentincomeinthecurrentperiodwhencontrolislost.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiaryshouldbeaccountedforonthesamebasisastheoriginalsubsidiary’sdirectdisposalofrelevantassetsorliabilitieswhenthecontrolislost.Anyincomerelatedtotheoriginalsubsidiarythatinvolvesaccountingundertheequitymethodotherchangesinowners’equityshouldbetransferredtothecurrentprofitsandlosseswhencontrolislost.

8.Determinationcriteriaforcashandcashequivalents

Cashreferstocashonhandanddepositsthatcanbeusedforpaymentatanytime.CashequivalentsrefertoinvestmentsheldbytheGroupthatareshort-term,highlyliquid,easilyconvertibleintoknownamountsofcash,andhavelittleriskofvaluechanges.

9.Foreigncurrencybusinessandforeigncurrencystatementconversion

(1)Foreigncurrencybusiness

TheGroup’sforeigncurrencybusinessisconvertedintotherecordingcurrencyamountbasedonthespotexchangerateonthedateofthetransaction.Onthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedusingthespotexchangerateonthebalance

sheetdate.Theexchangedifferencearisingfromthedifferencebetweenthespotexchangerateonthebalancesheetdateandthespotexchangerateatthetimeofinitialrecognitionorthepreviousbalancesheetdateisincludedinthecurrentprofitandloss;forforeigncurrencynon-monetaryitemsmeasuredathistoricalcost,thespotexchangerateonthedateofthetransactionisstillusedTheforeigncurrencynon-monetaryitemsmeasuredatfairvalueshallbeconvertedatthespotexchangerateonthedatewhenthefairvalueisdetermined.Thedifferencebetweentheconvertedaccountingfunctionalcurrencyamountandtheoriginalaccountingfunctionalcurrencyamountshallbeconvertedaccordingtothenon-monetaryaccountingcurrencyamount.Thenatureofmonetaryitemsisincludedincurrentprofitsandlossesorothercomprehensiveincome.

(2)TranslationofforeigncurrencyfinancialstatementsOnthebalancesheetdate,whenconvertingtheforeigncurrencyfinancialstatementsofoverseassubsidiaries,theassetandliabilityitemsinthebalancesheetaretranslatedusingthespotexchangerateonthebalancesheetdate.Exceptfor“undistributedprofits”,shareholders’equityitemsincludeotheritems.Convertedusingthespotexchangerateonthedateofoccurrence.Incomeandexpenseitemsintheincomestatementaretranslatedusingthespotexchangerateonthedateoftransaction.Allitemsinthecashflowstatementaretranslatedaccordingtothespotexchangerateonthedatewhenthecashflowoccurs.Theimpactofexchangeratechangesoncashisregardedasanadjustmentitemandisreflectedinthe“Impactofexchangeratechangesoncashandcashequivalents”separatelyinthecashflowstatement.Differencesarisingfromthetranslationoffinancialstatementsarereflectedinthe“othercomprehensiveincome”itemundertheshareholders’equityiteminthebalancesheet.Whenanoverseasoperationisdisposedofandcontrolislost,thetranslationdifferenceoftheforeigncurrencystatementslistedundertheshareholders’equityiteminthebalancesheetandrelatedtotheoverseasoperationshallbetransferredtothecurrentprofitandlossofthedisposalinfullorinproportiontothedisposaloftheoverseasoperation.

10.FinancialinstrumentsAfinancialinstrumentisacontractthatformsafinancialassetofonepartyandafinancialliabilityorequityinstrumentofanotherparty.

(1)Recognitionandderecognitionoffinancialinstruments

TheGrouprecognizesafinancialassetorfinancialliabilitywhenitbecomesapartytoafinancialinstrumentcontract.Financialassetsshallbederecognizediftheymeetoneofthefollowingconditions:

①Thecontractualrighttoreceivecashflowsfromthefinancialassetterminates;

②Thefinancialassethasbeentransferredandmeetsthefollowingconditionsforderecognitionoffinancialassettransfer.Ifthecurrentobligationofafinancialliabilityhasbeendischargedinwholeorinpart,thefinancialliabilityorpartofitshallbederecognised.IftheGroup(debtor)signsanagreementwithitscreditorstoreplaceexistingfinancialliabilitiesbyassumingnewfinancialliabilities,andthecontracttermsofthenewfinancialliabilitiesaresubstantiallydifferentfromtheexistingfinancialliabilities,theexistingfinancialliabilitieswillbederecognizedandthenewfinancialliabilitieswillberecognizedatthesametime.Whenfinancialassetsareboughtandsoldinaregularmanner,accountingrecognitionandderecognitionwillbecarriedoutbasedonthetransactiondate.

(2)Classificationandmeasurementoffinancialassets

Uponinitialrecognition,theGroupclassifiesfinancialassetsintothefollowingthreecategoriesbasedonthebusinessmodelofmanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincomeandfinancialassetsmeasuredatfairvaluethroughprofitsandlosses.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvaluethroughprofitandloss,therelevanttransactioncostsaredirectlyincludedinthecurrentprofitandloss;forothertypesoffinancialassets,therelevanttransactioncostsareincludedintheinitialrecognitionamount.Forreceivablesarisingfromthesaleofproductsorprovisionofservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponents,theamountofconsiderationthattheGroupisexpectedtobeentitledtoreceiveshallbedeemedastheinitialrecognitionamount.FinancialassetsmeasuredatamortizedcostTheGroupclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedasmeasuredatfairvaluethroughprofitorlossasfinancialassetsmeasuredatamortizedcost:

?TheGroup’sbusinessmodelformanagingthisfinancialassetisaimedatcollectingcontractualcashflows;?Thecontractualtermsofthefinancialassetprovidethatthecashflowsgeneratedonaspecificdatearesolely

paymentsofprincipalandinterestbasedontheoutstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaremeasuredatamortizedcostusingtheeffectiveinterestratemethod.Gainsorlossesarisingfromfinancialassetsthataremeasuredatamortizedcostandarenotpartofanyhedgingrelationshipareincludedinthecurrentprofitandlosswhentheyarederecognized,amortizedaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomeTheGroupclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedasmeasuredatfairvaluethroughprofitorlossasfinancialassetsatfairvaluethroughothercomprehensiveincome:

?TheGroup’sbusinessmodelformanagingthefinancialassetsaimsatbothcollectingcontractualcashflowsand

sellingthefinancialassets;?Thecontractualtermsofthefinancialassetprovidethatthecashflowsgeneratedonaspecificdatearesolely

paymentsofprincipalandinterestbasedontheoutstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaresubsequentlymeasuredatfairvalue.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedusingtheeffectiveinterestratemethodareincludedinthecurrentprofitandloss,andothergainsorlossesareincludedinothercomprehensiveincome.Whenderecognitionisterminated,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomewillbetransferredoutofothercomprehensiveincomeandincludedinthecurrentprofitandloss.FinancialassetsmeasuredatfairvaluethroughprofitsandlossesExceptfortheabove-mentionedfinancialassetsmeasuredatamortizedcostandatfairvaluethroughothercomprehensiveincome,theGroupclassifiesallremainingfinancialassetsasfinancialassetsatfairvaluethroughprofitorloss.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theGroupirrevocablydesignatedsomefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvaluethroughothercomprehensiveincomeasfinancialassetsmeasuredthroughprofitsandlosses.Afterinitialrecognition,suchfinancialassetsaresubsequentlymeasuredatfairvalue,andtheresultinggainsorlosses(includinginterestanddividendincome)areincludedinthecurrentprofitsandlosses,unlessthefinancialassetsarepartofahedgingrelationship.

ThebusinessmodelformanagingfinancialassetsreferstohowtheGroupmanagesfinancialassetstogeneratecashflow.ThebusinessmodeldetermineswhetherthesourceofcashflowfromthefinancialassetsmanagedbytheGroupiscollectionofcontractualcashflow,saleoffinancialassetsorboth.TheGroupdeterminesthebusinessmodelformanagingfinancialassetsbasedonobjectivefactsandspecificbusinessobjectivesformanagingfinancialassetsdeterminedbykeymanagementpersonnel.TheGroupevaluatesthecontractualcashflowcharacteristicsoffinancialassetstodeterminewhetherthecontractualcashflowsgeneratedbytherelevantfinancialassetsonaspecificdateareonlypaymentsofprincipalandinterestbasedontheoutstandingprincipalamount.Amongthem,principalreferstothefairvalueofthefinancialassetatthetimeofinitialrecognition;interestincludesconsiderationforthetimevalueofmoney,thecreditriskassociatedwiththeoutstandingprincipalamountinaspecificperiod,andotherbasiclendingrisks,costsandprofits.Inaddition,theGroupevaluatescontracttermsthatmaycausechangesinthetimedistributionoramountofcontractualcashflowsoffinancialassetstodeterminewhethertheymeettherequirementsoftheabovecontractualcashflowcharacteristics.OnlywhentheGroupchangesitsbusinessmodelformanagingfinancialassets,allaffectedrelevantfinancialassetswillbereclassifiedonthefirstdayofthefirstreportingperiodafterthechangeinbusinessmodel.Otherwise,financialassetsshallnotbereclassifiedafterinitialrecognition.Financialassetsaremeasuredatfairvalueuponinitialrecognition.Forfinancialassetsmeasuredatfairvaluethroughprofitandloss,therelevanttransactioncostsaredirectlyincludedinthecurrentprofitandloss;forothertypesoffinancialassets,therelevanttransactioncostsareincludedintheinitialrecognitionamount.Foraccountsreceivablearisingfromthesaleofproductsorprovisionofservicesthatdonotincludeortakeintoaccountsignificantfinancingcomponents,theamountofconsiderationthattheGroupisexpectedtobeentitledtoreceiveshallbedeemedastheinitialrecognitionamount.

(3)Classificationandmeasurementoffinancialliabilities

TheGroup’sfinancialliabilitiesareclassifieduponinitialrecognitioninto:financialliabilitiesmeasuredatfairvaluethroughprofitorloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvaluethroughprofitandloss,relevanttransactioncostsareincludedintheirinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludetradingfinancialliabilitiesandfinancialliabilitiesdesignatedasfairvaluethroughprofitorlossuponinitialrecognition.Suchfinancialliabilitiesaresubsequentlymeasuredatfairvalue,andgainsorlossesarisingfromchangesinfairvalue,aswellasdividendsandinterestexpensesrelatedtosuchfinancialliabilities,areincludedinthecurrentprofitsandlosses.FinancialliabilitiesmeasuredatamortizedcostOtherfinancialliabilitiesadopttheactualinterestratemethodandaresubsequentlymeasuredatamortizedcost.Gainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.ThedifferencebetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:

①Contractualobligationtodelivercashorotherfinancialassetstootherparties.

②Contractualobligationstoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyadverseconditions.

③Non-derivativecontractsthatmustorcanbesettledwiththeenterprise’sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.

④Derivativecontractsthatmustorcanbesettledwiththeenterprise’sownequityinstrumentsinthefuture,exceptforderivativecontractsthatexchangeafixednumberofitsownequityinstrumentsforafixedamountofcashorotherfinancialassets.Equityinstrumentsrefertocontractsthatproveownershipoftheremainingequityintheassetsofanenterpriseafterdeductingallliabilities.IftheGroupcannotunconditionallyavoiddeliveringcashorotherfinancialassetstofulfilacontractualobligation,thecontractualobligationmeetsthedefinitionofafinancialliability.IfafinancialinstrumentmustbesettledorcanbesettledwiththeGroup’sownequityinstruments,itisnecessarytoconsiderwhethertheGroup’sownequityinstrumentsusedtosettletheinstrumentareusedasasubstituteforcashorotherfinancialassets,ortoenabletheholdersoftheinstrumenttoholdtheremaininginterestintheissuer’sassetsafterdeductingallliabilities.Ifitistheformer,theinstrumentisafinancialliabilityoftheGroup;ifitisthelatter,theinstrumentisanequityinstrumentoftheGroup.

(4)Fairvalueoffinancialinstruments

Fairvalueisthepricethatamarketparticipantwouldpaytosellanassetortransferaliabilityinanorderlytransactionthatoccurredonthemeasurementdate.TheGroupmeasuresrelatedassetsorliabilitiesatfairvalue,assumingthattheorderlytransactiontosellassetsortransferliabilitiesiscarriedoutintheprincipalmarketforrelatedassetsorliabilities.Ifnoprincipalmarketexists,theGroupassumesthatthetransactioniscarriedoutinthemostadvantageousmarketforrelatedassetsorliabilities.Theprincipalmarket(orthemostadvantageousmarket)isthetransactionmarketwhichtheGroupcanenteronthemeasurementdate.TheGroupadoptstheassumptionsusedbymarketparticipantstomaximizetheireconomicbenefitswhenpricingtheassetsorliabilities.Forfinancialassetsorliabilitieswithanactivemarket,theGroupadoptsthequotedpriceintheactivemarkettodetermineitsfairvalue.Forafinancialinstrumentwithoutanactivemarket,theGroupadoptsvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theCompanyconsiderstheabilityofmarketparticipantstousetheassetsforthebestusetogenerateeconomicbenefits,ortoselltheassetstoothermarketparticipantswhocanusetheassetsforthebestusetogenerateeconomicbenefits.TheGroupadoptsvaluationtechniquesthatareapplicabletothecurrentsituationandwithsufficientdataavailableandotherinformationsupportandgivesprioritytotheuseoftherelatedobservableinputvalue.Itusesunobservableinputvaluesonlyiftheinputvaluecannotbeobservedorisnotfeasible.Theassetsandliabilitiesmeasuredordisclosedatfairvalueinthefinancialstatementsareinlinewiththelowestleveloftheinputvaluesthatisimportanttofairvaluemeasurementasawholetodeterminetheleveloffairvalue.Thefirstleveloftheinputvaluesmeansanunadjustedquotedpriceinanactivemarketforthesameassetsandliabilitiesavailableonthemeasurementdate.Thesecondleveloftheinputvaluesarethedirectlyorindirectlyobservableinputvaluesofrelatedassetsandliabilitiesexceptforthefirstleveloftheinputvalues.Thethirdleveloftheinputvaluesaretheunobservableinputvaluesofrelatedassetsandliabilities.Oneachbalancesheetdate,theGroupre-assessestheassetsandliabilitiesthatarecontinuouslymeasuredatfairvalueinthefinancialstatementssoastodeterminewhethertheconversionoccursatdifferentlevelsofthefairvaluemeasurement.

(5)Impairmentoffinancialassets

Basedonexpectedcreditlosses,theGroupperformsimpairmentaccountingonthefollowingitemsandrecognizeslossprovisions:

?Financialassetsmeasuredatamortizedcost;?Receivablesanddebtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome;?ContractassetsasdefinedinAccountingStandardsforBusinessEnterprisesNo.14-Revenue;?Leasereceivables;?Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedin

currentprofitsandlosses,thetransferoffinancialassetsdoesnotmeettheconditionsforderecognition,orthefinancialassetscontinuetobeinvolvedinthetransferredfinancialassets).MeasurementofexpectedcreditlossesExpectedcreditlossesrefertotheweightedaverageofthecreditlossesoffinancialinstrumentswiththeriskofdefaultastheweight.CreditlossreferstothedifferencebetweenallcontractualcashflowsreceivableunderthecontractandallcashflowsexpectedtobereceivedbytheGroupdiscountedattheoriginaleffectiveinterestrate,thatis,thepresentvalueofallcashshortfalls.TheGroupconsidersreasonableandwell-foundedinformationaboutpastevents,currentconditions,andpredictionsoffutureeconomicconditions,andweightstheriskofdefaulttocalculatethedifferencebetweenthecashflowsreceivableunderthecontractandthecashflowsexpectedtobereceived.Theprobability-weightedamountofthepresentvalueisrecognizedastheexpectedcreditloss.TheGroupmeasurestheexpectedcreditlossesoffinancialinstrumentsatdifferentstagesrespectively.Ifthecreditriskofafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition,itisinthefirststage,andtheGroupwillmeasurelossprovisionsbasedontheexpectedcreditlossesinthenext12months;ifthecreditriskofafinancialinstrumenthasincreasedsignificantlysinceinitialrecognitionbuthasnotyetoccurredIfthefinancialinstrumentiscredit-impaired,itisinthesecondstage,andtheGroupmeasuresthelossprovisionbasedontheexpectedcreditlossesfortheentiredurationoftheinstrument;ifthefinancialinstrumenthasbeencredit-impairedsinceinitialrecognition,itisinthethirdstage,andtheGroupmeasurestheexpectedcreditlossesfortheentiredurationoftheinstrument.Theexpectedcreditlossesduringthedurationaremeasuredaslossprovisions.Forfinancialinstrumentswithlowcreditriskonthebalancesheetdate,theGroupassumesthatitscreditriskhasnotincreasedsignificantlysinceinitialrecognitionandmeasureslossprovisionsbasedonexpectedcreditlosseswithinthenext12months.Lifetimeexpectedcreditlossesrefertotheexpectedcreditlossescausedbyallpossibledefaulteventsthatmayoccurduringtheentireexpectedlifeofafinancialinstrument.Expectedcreditlossesinthenext12monthsrefertothedefaulteventsoffinancialinstrumentsthatmayoccurwithin12monthsafterthebalancesheetdate(iftheexpecteddurationofthefinancialinstrumentislessthan12months,theexpectedduration)Expectedcreditlossesarepartoftheexpectedcreditlossesthroughouttheentireduration.Whenmeasuringexpectedcreditlosses,themaximumperiodthattheGroupneedstoconsideristhelongestcontractperiodforwhichtheenterprisefacescreditrisk(includingconsiderationofrenewaloptions).Forfinancialinstrumentsinthefirstandsecondstagesandwithlowercreditrisk,theGroupcalculatesinterestincomebasedonitsCarryingAmountbeforeimpairmentprovisionsandactualinterestrate.Forfinancialinstrumentsinthethirdstage,interestincomeiscalculatedbasedonitsCarryingAmountminustheamortizedcostandactualinterestrateafterimpairmentprovisionshavebeenmade.Forreceivablessuchasnotesreceivable,accountsreceivable,receivablefinancing,otherreceivables,andcontractassets,ifthecreditriskcharacteristicsofacertaincustomeraresignificantlydifferentfromothercustomersintheportfolio,orthecreditriskofthecustomerIfthecharacteristicsofthereceivableschangesignificantly,theGroupshallmakeaseparateprovisionforbaddebtsforthereceivables.Inadditiontothereceivablesforwhichbaddebtprovisionsaremadeindividually,theGroupdividesthereceivablesintogroupsbasedoncreditriskcharacteristicsandcalculates

baddebtprovisionsonagroupbasis.Notesreceivable,accountsreceivableandcontractassetsFornotesreceivableandaccountsreceivable,regardlessofwhetherthereisasignificantfinancingcomponent,theGroupalwaysmeasuresitslossprovisionsatanamountequivalenttotheexpectedcreditlossesduringtheentireduration.Whentheinformationonexpectedcreditlossescannotbeassessedatareasonablecostforasinglefinancialasset,theGroupdividesnotesreceivableandaccountsreceivableintogroupsbasedoncreditriskcharacteristics,andcalculatesexpectedcreditlossesonthebasisofthegroups.Thebasisfordeterminingthegroupisasfollows:

A.Notesreceivable?NotesReceivablePortfolio1:BankAcceptanceBill?NotesReceivablePortfolio2:CommercialAcceptanceBillB.Accountsreceivable?Accountsreceivableportfolio1:Non-relatedpartycustomers?AccountsReceivablePortfolio2:RelatedPartyCustomersFornotesreceivableandcontractassetsdividedintoportfolios,theGroupreferstohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,andcalculatesexpectedcreditlossesthroughdefaultriskexposureandtheexpectedcreditlossratethroughouttheduration.Foraccountsreceivabledividedintoportfolios,theGroupreferstohistoricalcreditlossexperience,combinedwithcurrentconditionsandpredictionsoffutureeconomicconditions,toprepareacomparisontablebetweentheaging/overduedaysofaccountsreceivableandtheexpectedcreditlossratefortheentireduration.Calculateexpectedcreditlosses.Theagingofaccountsreceivableiscalculatedfromthedateofconfirmation/thenumberofoverduedaysiscalculatedfromthedateofexpirationofthecreditperiod.OtherreceivablesTheGroupdividesotherreceivablesintoseveralcombinationsbasedoncreditriskcharacteristics,andcalculatesexpectedcreditlossesonthebasisofthecombinations.Thebasisfordeterminingthecombinationsisasfollows:

?Otherreceivablesportfolio1:Amountsduefromnon-relatedparties?Otherreceivablesportfolio2:AmountsduefromrelatedpartiesForotherreceivablesclassifiedintoportfolios,theGroupcalculatesexpectedcreditlossesthroughthedefaultriskexposureandtheexpectedcreditlossratewithinthenext12monthsorthroughouttheduration.Forotherreceivablesgroupedbyaging,theagingiscalculatedfromthedateofconfirmation.Debtinvestment,otherdebtinvestmentFordebtinvestmentsandotherdebtinvestments,theGroupcalculatesexpectedcreditbasedonthenatureoftheinvestmentandvarioustypesofcounterpartiesandriskexposuresthroughdefaultriskexposureandexpectedcreditlossratewithinthenext12monthsorthroughouttheduration.

AssessmentofsignificantincreaseincreditriskTheGroupcomparestheriskofdefaultofafinancialinstrumentonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondatetodeterminetherelativechangeinthedefaultriskofthefinancialinstrumentduringitsexpecteddurationtoassesswhetherthecreditriskofthefinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognition.Whendeterminingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformation,includingforward-lookinginformation,thatcanbeobtainedwithoutunnecessaryadditionalcostoreffort.InformationconsideredbytheGroupincludes:

?Thedebtorfailstopaytheprincipalandinterestontheduedateofthecontract;?Anactualorexpectedsignificantdeteriorationintheexternalorinternalcreditrating(ifany)ofthefinancialinstrument;?Theactualorexpectedseriousdeteriorationinthedebtor’soperatingresults;?Existingorexpectedchangesinthetechnological,market,economicorlegalenvironmentwillhaveasignificant

adverseimpactonthedebtor’sabilitytorepaytheGroup’sdebt.Dependingonthenatureofthefinancialinstrument,theGroupassesseswhetherthereisasignificantincreaseincreditriskonthebasisofasinglefinancialinstrumentoracombinationoffinancialinstruments.Whenevaluatingbasedonaportfoliooffinancialinstruments,theGroupcanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Ifitisoverdueformorethan30days,theGroupdeterminesthatthecreditriskofthefinancialinstrumenthasincreasedsignificantly.TheGroupbelievesthatfinancialassetsdefaultinthefollowingcircumstances:

?ItisunlikelythattheborrowerwillpayinfullwhatitowestheGroup,anassessmentthatdoesnottakeinto

accountrecourseactionsbytheGroupsuchastherealizationofcollateral(ifheld);?Financialassetsareoverdueformorethan90days.Credit-impairedfinancialassetsTheGroupassesseswhethercreditimpairmenthasoccurredonfinancialassetsmeasuredatamortizedcostanddebtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincomeonthebalancesheetdate.Whenoneormoreeventsoccurthathaveanadverseimpactontheexpectedfuturecashflowsofafinancialasset,thefinancialassetbecomesacredit-impairedfinancialasset.Evidencethatafinancialassethasbeencredit-impairedincludesthefollowingobservableinformation:

?Theissuerordebtorencounterssignificantfinancialdifficulties;?Thedebtorbreachesthecontract,suchasdefaultoroverduepaymentofinterestorprincipal;?TheGroupgrantsthedebtorconcessionsthatitwouldnothavemadeunderanyothercircumstancesdueto

economicorcontractualconsiderationsrelatedtothedebtor’sfinancialdifficulties;?thelikelihoodthatthedebtorwillgobankruptorundergootherfinancialreorganization;?Financialdifficultiesoftheissuerordebtorresultinthedisappearanceofanactivemarketforthefinancialasset.

PresentationofexpectedcreditlossprovisionsInordertoreflectchangesinthecreditriskoffinancialinstrumentssinceinitialrecognition,theGroupre-measuresexpectedcreditlossesoneachbalancesheetdate,andtheresultingincreaseorreversaloflossprovisionsshallbeaccountedforasimpairmentlossesorgainsintocurrentprofitandloss.Forfinancialassetsmeasuredatamortizedcost,thelossprovisionisreducedbythebookvalueofthefinancialassetslistedinthebalancesheet;fordebtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,theGroup’sothercomprehensiveincome.Thelossprovisionisrecognizedinincomeanddoesnotdeductthebookvalueofthefinancialasset.WriteoffIftheGroupnolongerreasonablyexpectsthatthecontractualcashflowsofafinancialassetcanbefullyorpartiallyrecovered,itwilldirectlywritedowntheCarryingAmountofthefinancialasset.Suchawrite-downconstitutesthederecognitionoftherelevantfinancialasset.ThissituationusuallyoccurswhentheGroupdeterminesthatthedebtordoesnothavetheassetsorsourcesofincometogeneratesufficientcashflowtorepaytheamountthatwillbewrittendown.However,inaccordancewiththeGroup’sproceduresforrecoveringdueamounts,financialassetsthatarewrittendownmaystillbeaffectedbyexecutionactivities.Ifafinancialassetthathasbeenwrittendownislaterrecovered,thereversaloftheimpairmentlosswillbeincludedintheprofitandlossofthecurrentperiodofrecovery.

(6)FinancialassettransferThetransferoffinancialassetsreferstothetransferordeliveryoffinancialassetstoanotherparty(thetransfer-inparty)otherthantheissuerofthefinancialassets.IftheGrouphastransferredsubstantiallyallrisksandrewardsofownershipofafinancialassettothetransferee,thefinancialassetshallbederecognised;iftheGrouphasretainedsubstantiallyallrisksandrewardsofownershipofthefinancialasset,thefinancialassetshallnotbederecognised.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofafinancialasset,itshallhandlethefollowingsituationsrespectively:ifitgivesupcontrolofthefinancialasset,thefinancialassetshallbederecognisedandtheassetsandliabilitiesincurredshallberecognized;ifithasnotgivenupcontrolofthefinancialasset,Ifthefinancialassetiscontrolled,therelevantfinancialassetsshallberecognizedtotheextentofitscontinuedinvolvementinthetransferredfinancialassets,andtherelevantliabilitiesshallberecognizedaccordingly.

(7)Offsetoffinancialassetsandfinancialliabilities

WhentheGrouphasthelegalrighttooffsettherecognizedfinancialassetsandfinancialliabilitiesandiscurrentlyabletoenforcesuchlegalrights,andtheGroupplanstosettleonanetbasisortorealizethefinancialassetsandpayoffthefinancialliabilitiesatthesametime,thefinancialassetsandfinancialliabilitieswillbepresentedinthebalancesheetattheamountafteroffsettingeachother.Otherwise,financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffsetagainsteachother.

11.Inventories

(1)InventoryclassificationTheGroup’sinventoriesaredividedintorawmaterials,workinprogress,inventorygoodsandturnovermaterials.

(2)ValuationmethodforissuedinventoryTheGroup’sinventoriesarevaluedatactualcostwhenacquired.Rawmaterials,inventory,etc.arepricedusingtheweightedaveragemethodwhenshipped.

(3)MethodsofaccrualandprovisionforinventoriesOnthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Whenthenetrealizablevalueislowerthanthecost,aprovisionforinventorydepreciationismade.Netrealizablevalueistheestimatedsellingpriceoftheinventoryminustheestimatedcoststobeincurreduponcompletion,estimatedsellingexpensesandrelatedtaxes.Whendeterminingthenetrealizablevalueofinventories,itisbasedontheconclusiveevidenceobtainedandthepurposeofholdingtheinventoriesandtheimpactofeventsafterthebalancesheetdatearealsoconsidered.TheGroupusuallyaccruesinventorydepreciationprovisionsbasedonindividualinventoryitems.Forinventorieswithlargequantitiesandlowunitprices,inventorydepreciationprovisionsaremadeaccordingtotheinventorycategory.Onthebalancesheetdate,ifthefactorsthatpreviouslycausedtheinventoryvaluetobewrittendownhavedisappeared,theinventorydepreciationprovisionshallbereversedwithintheamountoriginallyaccrued.

(4)InventorysystemTheGroupadoptstheperpetualinventorysystem.

12.Long-terminvestmentLong-termequityinvestmentsincludeequityinvestmentsinsubsidiaries,jointventuresandassociates.TheassociatesoftheGrouparethosethattheGroupcanexertsignificantinfluenceontheinvestedunits.

(1)InitialmeasurementofinvestmentcostLong-termequityinvestmentsresultingfrombusinesscombinations:Forlong-termequityinvestmentsobtainedfrombusinesscombinationsundercommoncontrol,theshareofthebookvalueoftheowner’sequityofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartywillbeusedastheinvestmentcostonthedateofmerger;notunderthesamecontrolForlong-termequityinvestmentsobtainedthroughabusinessmerger,theinvestmentcostofthelong-termequityinvestmentshallbebasedonthemergercost.Forlong-termequityinvestmentsobtainedbyothermeans:forlong-termequityinvestmentsobtainedbypayingcash,theactualpurchasepricepaidwillbeusedastheinitialinvestmentcost;forlong-termequityinvestmentsobtainedbyissuingequitysecurities,thefairvalueoftheequitysecuritiesissuedwillbeusedastheinitialinvestmentcost.

(2)SubsequentmeasurementandprofitandlossrecognitionmethodsInvestmentsinsubsidiariesareaccountedforusingthecostmethod,unlesstheinvestmentqualifiesasheldforsale;investmentsinassociatesandjointventuresareaccountedforusingtheequitymethod.Forlong-termequityinvestmentsaccountedforusingthecostmethod,inadditiontotheactualpricepaidwhenacquiringtheinvestmentorthecashdividendsorprofitsthathavebeendeclaredbutnotyetdistributedincludedintheconsideration,thecashdividendsorprofitsdeclaredtobedistributedbytheinvesteeshallberecognizedasinvestmentincomeforcurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsthatshouldbeenjoyedatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentwillnotbeadjusted;iftheinitialinvestmentcostislessthantheinvestment,theinvestee’sshareoftheidentifiablenetassetsshouldbeenjoyedIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentwillbeadjusted,andthedifferencewillbeincludedinthecurrentprofitandlossoftheinvestment.Whenaccountingusingtheequitymethod,investmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvesteethat

shouldbeenjoyedorshared,andthebookvalueofthelong-termequityinvestmentisadjustedatthesametime;inaccordancewiththedeclarationoftheinvesteeTheportionofthedistributedprofitsorcashdividendsthatshouldbecalculatedwillreducethebookvalueofthelong-termequityinvestmentaccordingly;forotherchangesintheowner’sequityoftheinvesteeotherthannetprofitandloss,othercomprehensiveincomeandprofitdistribution,thebookvalueofthelong-termequityinvestmentwillbeadjustedandIncludedincapitalreserves(othercapitalreserves).Whenconfirmingtheshareoftheinvestee’snetprofitsandlosses,thefairvalueoftheinvestee’sidentifiableassetswhentheinvestmentisobtainedisusedasthebasis,andinaccordancewiththeGroup’saccountingpoliciesandaccountingperiods,thenetprofitoftheinvesteeisdetermined.Makeadjustmentsandconfirm.Ifitispossibletoexertsignificantinfluenceontheinvesteeorimplementjointcontrolbutdoesnotconstitutecontrolduetoadditionalinvestmentorotherreasons,ontheconversiondate,thesumofthefairvalueoftheoriginalequityplusthecostofthenewinvestmentwillbeusedastheinitialinvestmentcosttobeaccountedforbytheequitymethod.Iftheoriginalequityisclassifiedasanon-tradingequityinstrumentinvestmentmeasuredatfairvalueanditschangesareincludedinothercomprehensiveincome,therelatedcumulativefairvaluechangesoriginallyincludedinothercomprehensiveincomewillbetransferredtoretainedearningswhenitisaccountedforundertheequitymethod.Ifthejointcontrolorsignificantinfluenceontheinvestedunitislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityafterthedisposalshallbechangedtotheAccountingStandardsforBusinessEnterprisesNo.22-FinancialInstrumentRecognitionandSignificantInfluenceonthedateoflossofjointcontrolorsignificantinfluence.Measurementisusedforaccountingtreatment,andthedifferencebetweenthefairvalueandthebookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedduetotheuseoftheequitymethodforaccountingintheoriginalequityinvestmentwillbeaccountedforonthesamebasisastheinvestee’sdirectdisposalofrelevantassetsorliabilitieswhentheequitymethodisterminated;otherchangesinowner’sequityrelatedtotheoriginalequityinvestmentTransferredtocurrentprofitandloss.Ifthecontrolovertheinvestedunitislostduetothedisposalofpartoftheequityinvestmentorotherreasons,andtheremainingequityafterthedisposalcanjointlycontrolorexertsignificantinfluenceontheinvestedunit,itshallbeaccountedforaccordingtotheequitymethod,andtheremainingequityshallberegardedasowned.Adjustmentswillbemadeusingtheequitymethoduponacquisition;iftheremainingequityafterdisposalcannotjointlycontrolorexertsignificantinfluenceontheinvestedunit,therelevantprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentswillbefollowed.Accountingtreatment,thedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.IftheGroup’sshareholdingratiodecreasesduetocapitalincreasebyotherinvestors,therebylosingcontrolbutitcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theGroup’sshareoftheinvestedunitduetothecapitalincreaseshallbeconfirmedbasedonthenewshareholdingratio.Thedifferencebetweentheshareofnetassetsincreasedduetoshareexpansionandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseinshareholdingratiothatshouldbecarriedforwardisincludedinthecurrentprofitandloss;then,thenewshareholdingratioisdeemedtohavebeencalculatedsincetheinvestmentwasobtained.Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.UnrealizedgainsandlossesfrominternaltransactionsbetweentheGroupanditsassociatesandjointventuresarecalculatedbasedontheshareholdingratioandareattributabletotheGroup,andinvestmentgainsandlossesarerecognizedonanoffsettingbasis.However,iftheunrealizedinternaltransactionlossesbetweentheGroupandtheinvesteeareimpairmentlossesonthetransferredassets,theywillnotbeoffset.

(3)BasisfordeterminingjointcontrolandsignificantinfluenceontheinvestedunitJointcontrolreferstothesharedcontroloveranarrangementinaccordancewithrelevantagreements,andtherelevantactivitiesofthearrangementmustbedecidedonlywiththeunanimousconsentoftheparticipantssharingcontrolrights.Whenjudgingwhetherthereisjointcontrol,firstjudgewhetherthearrangementiscollectivelycontrolledbyallparticipantsoracombinationofparticipants,andsecondlywhetherdecisionsonactivitiesrelatedtothearrangementmustbeunanimouslyagreeduponbytheparticipantswhocollectivelycontrolthearrangement.Ifallparticipantsoragroupofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,allparticipantsoragroupofparticipantsareconsideredtocollectivelycontrolthearrangement;iftherearetwoormorecombinationsofparticipantsthatcancollectivelyControlofanarrangementdoesnotconstitutejointcontrol.Whendeterminingwhetherjointcontrolexists,theprotectiverightsenjoyedarenottakenintoaccount.

Significantinfluencemeansthattheinvestorhasthepowertoparticipateindecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butitisnotabletocontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertasignificantinfluenceontheinvestee,itisconsideredthattheinvestor’sdirectorindirectholdingsofvotingsharesintheinvesteeandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintocontrolovertheinvestee.Theimpactarisingfromtheacquisitionofequityincludestheimpactofcurrentconvertiblewarrants,shareoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheGroupdirectlyorindirectlythroughsubsidiariesownsmorethan20%(inclusive)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantinfluenceontheinvestedunit,unlessthereisclearevidencethatthissituationItisunabletoparticipateintheproductionandoperationdecisionsoftheinvestedunitanddoesnothaveasignificantimpact;whentheGroupownslessthan20%(exclusive)ofthevotingsharesoftheinvestedunit,itisgenerallynotconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatthisUndersuchcircumstances,wecanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantinfluence.

(4)ImpairmenttestingmethodandimpairmentprovisionaccrualmethodForinvestmentsinsubsidiaries,associatesandjointventures,pleaserefertoNoteforthemethodofcalculatingassetimpairment.

13.Investmentproperties

Investmentpropertiesarepropertiesheldtoearnrentalsorforcapitalappreciation,orboth.TheGroup’sinvestmentpropertiesincludeleasedlanduserights,landuserightsheldandpreparedtobetransferredafterappreciation,andleasedbuildings.ThereisanactiverealestatetradingmarketinthelocationwheretheGroup’sinvestmentpropertiesarelocated,andtheGroupisabletoobtainmarketpricesandotherrelevantinformationofsimilarorsimilarrealestatefromtherealestatetradingmarket,sothatitcanmakeareasonableestimateofthefairvalueoftheinvestmentrealestate.Therefore,theGroupadoptsthefairvaluemodelforsubsequentmeasurementofinvestmentrealestate,andchangesinfairvaluethroughprofitandloss.Whendeterminingthefairvalueofinvestmentproperties,refertothecurrentmarketpriceofthesameorsimilarrealestateintheactivemarket;ifthecurrentmarketpriceofthesameorsimilarrealestatecannotbeobtained,refertothelatesttransactionpriceofthesameorsimilarrealestateintheactivemarket,andConsiderthetransactionsituation,transactiondate,locationandotherfactorstomakeareasonableestimateofthefairvalueoftheinvestmentproperty;ordetermineitsfairvaluebasedontheexpectedfuturerentalincomeandthepresentvalueoftherelevantcashflows.Inrarecases,ifthereisevidencethattheGroupacquiresaninvestmentpropertythatisnotunderconstructionforthefirsttime(oranexistingpropertybecomesaninvestmentpropertyforthefirsttimeaftercompletingconstructionordevelopmentactivitiesorchangingitsuse),theGroupwillIfthefairvalueofinvestmentrealestatecannotbeobtainedcontinuouslyandreliably,theinvestmentrealestatewillbemeasuredusingthecostmodeluntildisposal,anditisassumedthatthereisnoresidualvalue.Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentpropertiesafterdeductingitsbookvalueandrelevanttaxesisincludedinthecurrentprofitandloss.

14.Fixedassets

(1)FixedassetrecognitionconditionsTheGroup’sfixedassetsrefertotangibleassetsheldfortheproductionofgoods,provisionoflabourservices,leasingoroperationandmanagement,andwithausefullifeofmorethanoneaccountingyear.Afixedassetcanonlyberecognizedwhentheeconomicbenefitsrelatedtothefixedassetarelikelytoflowintothe

enterpriseandthecostofthefixedassetcanbemeasuredreliably.TheGroup’sfixedassetsareinitiallymeasuredbasedontheactualcostwhenacquired.SubsequentexpendituresrelatedtofixedassetsshallbeincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbereliablymeasured;dailyrepaircostsoffixedassetsthatdonotmeettheconditionsforsubsequentexpendituresforcapitalizationoffixedassetsshallbeincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbemeasuredreliably.Whenincurred,itshallbeincludedinthecurrentprofitandlossorincludedinthecostofrelatedassetsaccordingtothebeneficiaryobject.Forthereplacedpart,itsbookvalueisderecognized.

(2)DepreciationmethodsDepreciationmethodsforvarioustypesoffixedassetsFixedassetsaredepreciatedusingthestraight-linemethodbasedontheircostslessestimatedresidualvaluesovertheirestimatedusefullivesDepreciationbeginswhenafixedassetreachesitsintendedusablecondition,anddepreciationstopswhenitisderecognizedorclassifiedasanon-currentassetheldforsale.Withoutconsideringimpairmentprovisions,theGroupdeterminestheannualdepreciationratesofvarioustypesoffixedassetsbasedonfixedassetcategory,estimatedservicelifeandestimatedresidualvalueasfollows:

Category

Amongthem,forfixedassetsforwhichimpairmentprovisionshavebeenmade,thedepreciationrateshouldalsobecalculatedanddeterminedbydeductingtheaccumulatedamountoffixedassetimpairmentprovisions.

(3)Notefortheimpairmenttestingmethodandimpairmentprovisionaccrualmethodforfixedassets.

(4)Attheendofeachyear,theGroupreviewstheusefullife,estimatednetresidualvalueanddepreciationmethodoffixedassets.Ifthereisadifferencebetweentheestimatedusefullifeandtheoriginalestimate,theusefullifeofthefixedassetswillbeadjusted;ifthereisadifferencebetweentheexpectednetresidualvalueandtheoriginalestimate,theestimatednetresidualvaluewillbeadjusted.

(5)FixedassetdisposalWhenafixedassetisdisposedofornoeconomicbenefitsareexpectedtobegeneratedthroughuseordisposal,thefixedassetisderecognised.Theamountofdisposalincomefromthesale,transfer,scrappingordamageoffixedassetsafterdeductingtheirbookvalueandrelevanttaxesisincludedinthecurrentprofitandloss.

15.ConstructioninprogressThecostoftheGroup’sconstruction-in-progressisdeterminedbasedonactualprojectexpenditures,includingvariousnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachesitsintendedusablestate,andotherrelatedexpenses.Constructioninprogressistransferredtofixedassetswhenitreachestheintendedusablestate.Thecriteriaforjudgingtheintendedusablestatusshouldmeetoneofthefollowingconditions:Thephysicalconstruction(includinginstallation)ofthefixedassetshasbeencompletedorsubstantiallycompleted,trialproductionortrialoperationhasbeencarriedout,andtheresultsshowthattheassetscanoperatenormally.Oritcanproducestably,orthetrialoperationresultsshow

thatitcanoperatenormally.Theamountofexpenditureonthefixedassetsconstructedisverysmalloralmostnolongeroccurs,andthefixedassetspurchasedhavemetthedesignorcontractrequirements,orarebasicallyconsistentwiththedesignorcontractrequirements.Noteforthemethodofaccruingassetimpairmentforconstructioninprogress.TheGroup’sengineeringmaterialsrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentthathasnotyetbeeninstalled,andtoolsandequipmentpreparedforproduction.Thepurchasedengineeringmaterialsaremeasuredatcost,theengineeringmaterialsreceivedaretransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectaretransferredtoinventory.Notefortheassetimpairmentmethodofconstructionmaterials.Inthebalancesheet,theclosingbalanceofconstructionmaterialsislistedinthe“ConstructioninProgress”item.

16.Borrowingcosts

(1)RecognitionprinciplesforcapitalizationofborrowingcostsIftheborrowingcostsincurredbytheGrouparedirectlyattributabletotheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditions,theyshallbecapitalizedandincludedinthecostoftherelevantassets;otherborrowingcostsshallberecognizedasexpensesbasedontheamountincurredwhenincurredandshallbeincludedinthecostoftherelevantassetsforcurrentprofitandloss.Borrowingcostswillbegintobecapitalizediftheymeetthefollowingconditionsatthesametime:

①Assetexpenditureshaveoccurred.Assetexpendituresincludeexpendituresintheformofcashpayments,transfersofnon-cashassetsorinterest-bearingdebtsfortheacquisition,constructionorproductionofassetsthatmeetcapitalizationconditions;

②Theborrowingcostshavebeenincurred;

③Thenecessarypurchase,constructionorproductionactivitiestobringtheassettoitsintendedusableorsaleablestatehavebegun.

(2)BorrowingcostcapitalizationperiodWhentheassetspurchased,constructedorproducedbytheGroupthatmeetthecapitalizationconditionsarereadyforintendeduseorsale,thecapitalizationofborrowingcostswillcease.Borrowingcostsincurredaftertheassetsthatmeetthecapitalizationconditionsreachtheintendedusableorsaleablestatearerecognizedasexpensesbasedontheamountincurredwhenincurredandincludedinthecurrentprofitandloss.Ifanassetthatmeetsthecapitalizationconditionsisabnormallyinterruptedduringtheacquisition,constructionorproductionprocess,andtheinterruptionlastsformorethan3months,thecapitalizationofborrowingcostswillbesuspended;theborrowingcostsduringthenormalinterruptionperiodwillcontinuetobecapitalized.

(3)CalculationmethodofcapitalizationrateofborrowingcostsandcapitalizationamountTheinterestexpensesactuallyincurredonspecialborrowingsinthecurrentperiod,minustheinterestincomefromunusedborrowedfundsdepositedinbanksorinvestmentincomefromtemporaryinvestments,arecapitalized;generalborrowingsarecapitalizedbasedontheexcessoftheaccumulatedassetexpendituresoverthespecialborrowings.Thecapitalizationamountisdeterminedbymultiplyingtheweightedaverageofassetexpendituresbythecapitalizationrateofthegeneralborrowingsoccupied.Thecapitalizationrateiscalculatedanddeterminedbasedontheweightedaverageinterestrateofgeneralborrowings.

Duringthecapitalizationperiod,allexchangedifferencesonspecialforeigncurrencyborrowingsarecapitalized;exchangedifferencesongeneralforeigncurrencyborrowingsareincludedinthecurrentprofitsandlosses.

17.Intangibleassets

(1)Usefullifeanditsdeterminationbasis,estimation,amortizationmethod,orreviewprocedureTheGroup’sintangibleassetsincludelanduserights,patentrightsandproprietarytechnologies,mineralminingrightsandothers.Intangibleassetsareinitiallymeasuredbasedoncost,andtheirservicelifeisanalysedandjudgedwhentheintangibleassetsareacquired.Iftheservicelifeislimited,fromthetimewhentheintangibleassetbecomesavailableforuse,anamortizationmethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetshallbeused,andamortizationwillbeamortizedwithintheestimatedusefullife;iftheexpectedrealizationmethodcannotbereliablydetermined,Amortizationiscarriedoutusingthestraight-linemethod;intangibleassetswithindefiniteservicelifearenotamortized.Theamortizationmethodofintangibleassetswithlimitedusefullifeisasfollows:

Category

Attheendofeachyear,theGroupreviewstheusefullifeandamortizationmethodofintangibleassetswithlimitedservicelife.Ifitisdifferentfromthepreviousestimate,theoriginalestimateisadjustedandtreatedasachangeinaccountingestimate.Ifitisexpectedthatanintangibleassetwillnolongerbringfutureeconomicbenefitstotheenterpriseonthebalancesheetdate,theentirebookvalueoftheintangibleassetwillbetransferredtothecurrentprofitandloss.Noteforthemethodofimpairmentforintangibleassets.

(2)ThescopeofR&DexpenditurecollectionandtherelatedaccountingtreatmentTheGroup'sR&Dexpendituresareexpendituresdirectlyrelatedtothecompany'sR&Dactivities,includingR&Dstaffsalaries,directinvestmentcosts,depreciationexpensesandlong-termdeferredexpenses,designexpenses,equipmentcommissioningexpenses,intangibleassetamortizationexpenses,entrustedexternalresearchanddevelopmentexpenses,otherexpensesetc.ThewagesofR&DpersonnelareincludedinR&Dexpendituresbasedonprojectworkinghours.Equipment,productionlines,andsitessharedbetweenR&DactivitiesandotherproductionandoperationactivitiesareincludedinR&Dexpensesaccordingtotheproportionofworkinghoursandtheproportionofarea.TheGroupdividesexpendituresoninternalresearchanddevelopmentprojectsintoexpendituresintheresearchphaseandexpendituresinthedevelopmentphase.Expendituresintheresearchstageareincludedinthecurrentprofitsandlosseswhenincurred.Expendituresinthedevelopmentstagecanonlybecapitalizediftheymeetthefollowingconditions:itistechnicallyfeasibletocompletetheintangibleassetsothatitcanbeusedorsold;thereistheintentiontocompletetheintangible

assetanduseorsellit;theintangibleassetThewaytogenerateeconomicbenefitsincludesbeingabletoprovethatthereisamarketfortheproductsproducedusingtheintangibleassetsorthattheintangibleassetsthemselveshaveamarket.Iftheintangibleassetswillbeusedinternally,theycanprovetheirusefulness;therearesufficienttechnical,financialandotherresourcesupports,inordertocompletethedevelopmentoftheintangibleassetandhavetheabilitytouseorselltheintangibleasset;theexpendituresattributabletothedevelopmentstageoftheintangibleassetcanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsareincludedinthecurrentprofitandloss.TheGroup’sresearchanddevelopmentprojectswillenterthedevelopmentstageaftermeetingtheaboveconditionsandpassingtechnicalfeasibilityandeconomicfeasibilitystudiestoformaproject.Capitalizedexpendituresinthedevelopmentphasearelistedasdevelopmentexpendituresonthebalancesheetandareconvertedintointangibleassetsfromthedatetheprojectreachesitsintendeduse.CapitalizationconditionsforspecificR&Dprojects:

Expendituresintheresearchstageareincludedinthecurrentprofitsandlosseswhenincurred.Beforelarge-scaleproduction,expendituresrelatedtothedesignandtestingphaseofthefinalapplicationoftheproductionprocessareexpendituresinthedevelopmentphase.Ifthefollowingconditionsaremetatthesametime,theywillbecapitalized:

·Thedevelopmentoftheproductionprocesshasbeenfullydemonstratedbythetechnicalteam;·Managementhasapprovedthebudgetforproductionprocessdevelopment;·Theresearchandanalysisofthepreliminarymarketresearchshowsthattheproductsproducedbytheproductionprocesshavemarketpromotioncapabilities;·Havesufficienttechnicalandfinancialsupporttocarryoutproductionprocessdevelopmentactivitiesandsubsequentlarge-scaleproduction;andtheexpenditureonproductionprocessdevelopmentcanbereliablycollected.Ifitisimpossibletodistinguishbetweenexpendituresintheresearchstageandexpendituresinthedevelopmentstage,allR&Dexpendituresincurredwillbeincludedinthecurrentprofitandloss.

18.Long-termassetsimpairmentForsubsidiaries’long-terminvestments,fixedassets,constructioninprocess,right-of-useassets,intangibleassets,goodwill,etc.(excludinginventories,investmentpropertiesmeasuredaccordingtothefairvaluemodel,deferredtaxassets,andfinancialassets)value,determinedasfollows:

Onthebalancesheetdate,itisjudgedwhetherthereareanysignsofpossibleimpairmentoftheassets.Iftherearesignsofimpairment,theGroupwillestimateitsrecoverableamountandconductanimpairmenttest.Goodwillformedduetobusinesscombinations,intangibleassetswithindefiniteusefullivesandintangibleassetsthathavenotyetreachedausablestatearesubjecttoimpairmenttestingeveryyearregardlessofwhethertherearesignsofimpairment.Therecoverableamountisdeterminedbasedonthehigheroftheasset’sfairvaluelessdisposalcostsandthepresentvalueoftheasset’sexpectedfuturecashflows.TheGroupestimatestherecoverableamountonthebasisofasingleasset;ifitisdifficulttoestimatetherecoverableamountofanindividualasset,theGroupdeterminestherecoverableamountoftheassetgroupbasedontheassetgrouptowhichtheassetbelongs.Theidentificationofanassetgroupisbasedonwhetherthemaincashinflowgeneratedbytheassetgroupisindependentofthecashinflowsofotherassetsorassetgroups.Whentherecoverableamountofanassetorassetgroupislowerthanitsbookvalue,theGroupwillwritedownitsbookvaluetotherecoverableamount,andtheamountofthewrite-downwillbeincludedinthecurrentprofitandloss,andthecorrespondingassetimpairmentprovisionwillbemade.Asfarastheimpairmenttestofgoodwillisconcerned,thebookvalueofgoodwillformedduetoabusinesscombinationshallbeapportionedtotherelevantassetgroupinareasonablemannerfromthedateofpurchase;ifitisdifficulttoapportionittotherelevantassetgroup,itshallbeapportionedtotherelevantassetgroup.Relatedasset

groupcombinations.Therelevantassetgrouporassetgroupcombinationisanassetgrouporassetgroupcombinationthatcanbenefitfromthesynergyeffectsofthebusinesscombination,andisnolargerthanthereportingsegmentdeterminedbythegroup.Duringimpairmenttesting,iftherearesignsofimpairmentinanassetgrouporcombinationofassetgroupsrelatedtogoodwill,firstconductanimpairmenttestontheassetgrouporcombinationofassetgroupsthatdoesnotincludegoodwill,calculatetherecoverableamount,andconfirmthecorrespondingimpairment.Thenconductanimpairmenttestontheassetgrouporassetgroupcombinationcontaininggoodwill,andcompareitsbookvaluewiththerecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossofgoodwillisrecognized.Oncetheassetimpairmentlossisrecognized,itwillnotbereversedinsubsequentaccountingperiods.

19.Long-termprepaidexpenses

Thelong-termdeferredexpensesincurredbytheGrouparemeasuredatactualcostandamortizedevenlyovertheexpectedbeneficialperiod.Forlong-termdeferredexpenseitemsthatcannotbenefitfutureaccountingperiods,theiramortizedvalueshallbefullyincludedinthecurrentprofitandloss.

20.Employeebenefits

(1)AccountingforShort-termcompensationDuringtheaccountingperiodwhenemployeesprovideservices,theGrouprecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,work-relatedinjuryinsurancepremiums,maternityinsurancepremiums,andhousingprovidentfundspaidforemployeesbasedonprescribedstandardsandproportionsasliabilitiesandincludedinthecurrentprofitandlossorrelatedassetcosts.

(2)Accountingforpost-employmentbenefitsPost-employmentbenefitplansincludedefinedcontributionplansanddefinedbenefitplans.Amongthem,adefinedcontributionplanreferstoapost-employmentbenefitplaninwhichtheenterprisenolongerbearsfurtherpaymentobligationsafterdepositingafixedfeeintoanindependentfund;adefinedbenefitplanreferstoapost-employmentbenefitplanotherthanadefinedcontributionplan.DefinedcontributionplansDefinedcontributionplansincludebasicpensioninsurance,unemploymentinsurance,etc.Duringtheaccountingperiodwhenemployeesprovideservices,thedepositamountpayablecalculatedaccordingtothedefinedcontributionplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.

(3)AccountingforTerminationbenefitsIftheGroupprovidesdismissalbenefitstoemployees,theemployeecompensationliabilitiesarisingfromthedismissalbenefitswillberecognizedattheearliestofthefollowingtwotimesandincludedinthecurrentprofitandloss:WhentheGroupcannotunilaterallywithdrawthedismissalbenefitsprovidedduetotheterminationoflabourrelationsplanorlayoffproposal;WhentheGrouprecognizescostsorexpensesrelatedtorestructuringinvolvingpaymentofterminationbenefits.

(4)AccountingforOtherlong-termbenefitsOtherlong-termemployeebenefitsprovidedbytheGrouptoemployeesthatmeettheconditionsofadefinedcontributionplanwillbehandledinaccordancewiththeabove-mentionedrelevantregulationsondefinedcontributionplans.Ifitisincompliancewiththedefinedbenefitplan,itshallbehandledinaccordancewiththerelevantprovisionsonthedefinedbenefitplanmentionedabove,butthe“changescausedbytheremeasurementofthenetliabilitiesornetassetsofthedefinedbenefitplan”intherelevantemployeecompensationcostsshallbeincludedinthecurrentprofit

andlossorrelatedAssetcost.

21.EstimatedliabilitiesIftheobligationsrelatedtocontingenciesmeetthefollowingconditionsatthesametime,theGroupwillrecognizethemasestimatedliabilities:

(1)TheobligationisacurrentobligationbornebytheGroup;

(2)TheperformanceofthisobligationislikelytoresultintheoutflowofeconomicbenefitsfromtheGroup;

(3)Theamountoftheobligationcanbemeasuredreliably.Estimatedliabilitiesareinitiallymeasuredbasedonthebestestimateoftheexpenditurerequiredtofulfiltherelevantcurrentobligations,andfactorssuchasrisks,uncertainties,andtimevalueofmoneyrelatedtocontingenciesarecomprehensivelyconsidered.Ifthetimevalueofmoneyhasasignificantimpact,thebestestimateisdeterminedbydiscountingtherelevantfuturecashoutflows.TheGroupreviewsthebookvalueofestimatedliabilitiesonthebalancesheetdateandadjuststhebookvaluetoreflectthecurrentbestestimate.Ifallorpartoftheexpensesrequiredtosettletherecognizedestimatedliabilitiesareexpectedtobecompensatedbyathirdpartyorotherparties,thecompensationamountcanonlyberecognizedseparatelyasanassetwhenitisbasicallycertainthatitwillbereceived.Theamountofcompensationrecognizedshallnotexceedthebookvalueoftheliabilityrecognized.

22.Revenue

(1)GeneralprinciplesTheGrouprecognizesrevenuewhenitfulfilsitsperformanceobligationsinthecontract,thatis,whenthecustomerobtainscontroloftherelevantgoodsorservices.Ifthecontractcontainstwoormoreperformanceobligations,theGroupwillallocatethetransactionpricetoeachindividualperformanceobligationbasedontherelativeproportionofthestand-alonesellingpriceofthegoodsorservicespromisedbyeachindividualperformanceobligationonthecontractcommencementdate.Revenueismeasuredatthetransactionpriceofeachindividualperformanceobligation.Whenoneofthefollowingconditionsismet,theperformanceobligationisperformedwithinacertainperiodoftime;otherwise,theperformanceobligationisperformedatacertainpointintime:

①WhentheGroupperformsthecontract,thecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheGroup’sperformance.

②CustomerscancontrolthegoodsunderconstructionduringtheperformanceofthecontractbytheGroup.

③ThegoodsproducedbytheGroupduringtheperformanceofthecontracthaveirreplaceableuses,andtheGrouphastherighttocollectpaymentforthecumulativeperformancepartcompletedsofarduringtheentirecontractperiod.Forperformanceobligationsfulfilledwithinacertainperiodoftime,theGrouprecognizesrevenuebasedontheperformanceprogresswithinthatperiodoftime.Whentheprogressofcontractperformancecannotbereasonablydetermined,ifthecostsincurredbytheGroupareexpectedtobecompensated,revenuewillberecognizedbasedontheamountofcostsincurreduntiltheprogressofcontractperformancecanbereasonablydetermined.Forperformanceobligationsfulfilledatacertainpointintime,theGrouprecognizesrevenueatthepointwhenthecustomerobtainscontroloftherelevantgoodsorservices.Whendeterminingwhetheracustomerhasobtainedcontrolofgoodsorservices,theGroupwillconsiderthefollowingsigns:

①TheGrouphasthecurrentrighttoreceivepaymentforthegoodsorservices,thatis,thecustomerhascurrentpaymentobligationsforthegoods.

②TheGrouphastransferredthelegalownershipofthegoodstothecustomer,whichmeansthatthecustomeralreadyownsthelegalownershipofthegoods.

③TheGrouphasphysicallytransferredthegoodstothecustomer,thatis,thecustomerhasphysicallytakenpossessionofthegoods.

④TheGrouphastransferredthemainrisksandrewardsofownershipofthecommoditytothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsofownershipofthecommodity.

⑤Thecustomerhasacceptedthegoodsorservices.

⑥Othersignsindicatingthatthecustomerhasobtainedcontroloftheproduct.

(2)Specificmethod

TheGroup’srevenuemainlycomesfromthefollowingbusinesstypes:salesofproducts,externalprovisionofconsultingandprocessingservices.SellinggoodsProductssoldTheGroupproducesandsellsfloatglass,photovoltaicglass,engineeringglass,solarindustryrelatedproducts,electronicglassanddisplaydevice,etc.Fordomesticsales,theGrouptransportstheproductstotheagreeddeliverylocationinaccordancewiththeagreementorpicksitupbythebuyer.Revenueisrecognizedafterthebuyerconfirmsreceiptorpick-up.Forexportsales,theGrouprecognizestherevenuewhenitfinishedclearinggoodsforexportanddeliverthegoodsonboardthevessel,orwhenthegoodsaredeliveredtoacertainplacespecifiedinthecontract.Forsolarenergyandotherindustries’photovoltaicpowergenerationrevenue,theGrouprecognizestheelectricitywhenitissuppliedtotheprovincialpowergridcompanywhereeachelectricfieldislocated,usesthesettledelectricityvolumeconfirmedbybothpartiesastheelectricitysalesforthatmonth,andusestheon-gridelectricitypriceapprovedbytheNationalDevelopmentandReformCommissionortheelectricitypriceagreedinthecontractasthesalesunitprice.ThecreditperiodsgrantedbytheGrouptocustomersinvariousindustriesareconsistentwiththepracticesofvariousindustries,andthereisnosignificantfinancingcomponent.TheGroupprovidesproductqualityassurancefortheproductssoldandrecognizescorrespondingestimatedliabilities.TheGroupdoesnotprovideanyadditionalservicesoradditionalqualityassurance,sotheproductqualityassurancedoesnotconstituteaseparateperformanceobligation.Glassproductswithsalesreturnclauses,revenuerecognitionislimitedtotheamountofaccumulatedrecognizedrevenuethatisunlikelytoresultinasignificantreversal.TheGrouprecognizesliabilitiesbasedontheexpectedreturnamount,andatthesametime,recognizesthebalanceasanassetbasedonthebookvalueofthegoodsexpectedtobereturnedwhenthegoodsaretransferred,minustheexpectedcostsofrecoveringthegoods(includingtheimpairmentofthevalueofthereturnedgoods).ProvideconsultingandprocessingservicesTheGroupprovidesexternalconsultingandprocessingservicesbecausecustomersobtainandconsumetheeconomicbenefitsbroughtbythecompany’sperformanceofthecontractwhilethecompanyperformsthecontract.TheGrouprecognizesrevenuebasedontheprogressofcontractperformance.Theprogressofcontractperformanceisdetermined

basedontheproportionofcostsincurredtotheestimatedtotalcosts.Onthebalancesheetdate,theGroupre-estimatestheperformanceprogressofcompletedservicestoreflectchangesinperformance.WhentheGrouprecognizesrevenuebasedontheprogressofcompletedservices,theportionforwhichtheGrouphasobtainedtheunconditionalrighttoreceivepaymentisrecognizedasaccountsreceivable,andtheremainingportionisrecognizedascontractassets.Accountsreceivableandcontractassetsarerecognizedasexpectedcreditlosses.Lossprovisionsarerecognizedasthebasis;ifthecontractpricereceivedorreceivablebytheGroupexceedsthelabourservicescompleted,theexcesswillberecognizedascontractliabilities.TheGroup’scontractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasis.

23.Contractcosts

Contractcostsincludeincrementalcostsincurredtoobtainthecontractandcontractperformancecosts.Theincrementalcostsincurredtoobtainthecontractrefertocoststhatthecompanywouldnothaveincurredifithadnotobtainedthecontract(suchassalescommissions,etc.).Ifthecostisexpectedtoberecovered,thecompanywillrecognizeitasthecontractacquisitioncostandasanasset.OtherexpensesincurredbytheCompanytoobtainthecontract,exceptfortheincrementalcostsexpectedtoberecovered,areincludedinthecurrentprofitsandlosseswhenincurred.Ifthecostincurredtofulfilthecontractdoesnotfallwithinthescopeofotheraccountingstandardsforenterprisessuchasinventoryandmeetsthefollowingconditions,thecompanywillrecognizeitasanassetasthecontractperformancecost:

①Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabour,directmaterials,manufacturingoverhead(orsimilarexpenses),costsclearlybornebythecustomer,andothercostsincurredsolelybecauseofthecontract;

②ThiscostincreasestheCompany’sresourcesforfulfillingitsperformanceobligationsinthefuture;

③Thecostisexpectedtoberecovered.Assetsrecognizedforcontractacquisitioncostsandassetsrecognizedforcontractperformancecosts(hereinafterreferredtoas“assetsrelatedtocontractcosts”)areamortizedonthesamebasisastherecognitionofrevenuefromgoodsorservicesrelatedtotheassetsandincludedinthecurrentprofitandloss.Whenthebookvalueofassetsrelatedtocontractcostsishigherthanthedifferencebetweenthefollowingtwoitems,thecompanymakesimpairmentprovisionsfortheexcessandrecognizesitasassetimpairmentlosses:

①Theremainingconsiderationthatthecompanyexpectstoobtainfromthetransferofgoodsorservicesrelatedtotheasset;

②Theestimatedcostthatwillbeincurredtotransfertherelevantgoodsorservices.

24.GovernmentsubsidiesGovernmentsubsidiesarerecognizedwhentheconditionsattachedtothegovernmentsubsidiesaremetandcanbereceived.Governmentsubsidiesformonetaryassetsaremeasuredbasedontheamountreceivedorreceivable.Governmentsubsidiesfornon-monetaryassetsaremeasuredatfairvalue;ifthefairvaluecannotbeobtainedreliably,theyaremeasuredatanominalamountof1yuan.

GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheGroupforthepurchase,constructionorotherformationoflong-termassets;inaddition,governmentsubsidiesrelatedtoincomeareregardedasgovernmentsubsidies.Forgovernmentdocumentsthatdonotclearlystipulatethesubsidyobjectsandcanformlong-termassets,thepartofthegovernmentsubsidycorrespondingtotheassetvalueshallberegardedasthegovernmentsubsidyrelatedtotheasset,andtheremainingpartshallberegardedasthegovernmentsubsidyrelatedtoincome;ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedasthegovernmentsubsidyrelatedtotheasset.Thewholeisregardedasagovernmentsubsidyrelatedtoincome.Governmentsubsidiesrelatedtoassetsarerecognizedasdeferredincomeandareincludedinprofitsandlossesininstalmentsaccordingtoareasonableandsystematicmethodduringtheuseperiodoftherelevantassets.Ifgovernmentsubsidiesrelatedtoincomeareusedtocompensateforrelevantcostsorlossesthathavealreadyoccurred,theywillbeincludedinthecurrentprofitsandlosses;iftheyareusedtocompensateforrelevantcostsorlossesinsubsequentperiods,theywillbeincludedindeferredincomeandwillbeincludedintherelevantcostsorlosses.Thelossisincludedinthecurrentprofitandlossduringtheperiodduringwhichthelossisrecognized.Governmentsubsidiesmeasuredaccordingtothenominalamountaredirectlyincludedinthecurrentprofitandloss.TheGroupadoptsaconsistentapproachtothesameorsimilargovernmentsubsidybusiness.Governmentsubsidiesrelatedtodailyactivitiesshallbeincludedinotherincomeaccordingtotheeconomicbusinessessence.Governmentsubsidiesunrelatedtodailyactivitiesareincludedinnon-operatingincome.Whenaconfirmedgovernmentsubsidyneedstobereturned,ifthebookvalueoftherelevantassetsisoffsetatthetimeofinitialrecognition,thebookvalueoftheassetsisadjusted;ifthereisabalanceofrelevantdeferredincome,theCarryingAmountoftherelevantdeferredincomeisoffset,andtheexcessisincludedinthecurrentprofitandloss;inothercases,itwillbedirectlyincludedinthecurrentprofitandloss.

25.Deferredtaxassetsanddeferredtaxliabilities

Incometaxincludescurrentincometaxanddeferredincometax.Exceptforadjustmentstogoodwillarisingfrombusinesscombinations,ordeferredincometaxesrelatedtotransactionsoreventsdirectlyincludedinowners’equity,whichareincludedinowners’equity,theyareallincludedincurrentprofitsandlossesasincometaxexpenses.TheGroupadoptsthebalancesheetliabilitymethodtorecognizedeferredincometaxbasedonthetemporarydifferencesbetweenthebookvaluesofassetsandliabilitiesonthebalancesheetdateandtheirtaxbasis.Eachtaxabletemporarydifferenceisrecognizedasarelateddeferredincometaxliability,unlessthetaxabletemporarydifferenceisgeneratedinthefollowingtransactions:

(1)Initialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromatransactionwiththe

followingcharacteristics:thetransactionisnotabusinesscombination,andthetransactionaffectsneitheraccountingprofitsnortaxableincomewhenthetransactionoccursinitialrecognition(Exceptforindividualtransactionsthatresultinequalamountsoftaxabletemporarydifferencesanddeductibletemporarydifferencesarisingfromtheassetsandliabilities);

(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventuresandassociates,thetimeof

reversalofthetemporarydifferencescanbecontrolledandthetemporarydifferencesarelikelynottobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardtofutureyears,theGroupshalluseittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitisprobablethatitwillbeavailable.Thedeferredincometaxassetsgeneratedwillberecognizedtothelimitofthefuturetaxableincome,unlessthedeductibletemporarydifferenceisgeneratedinthefollowingtransactions:

(1)Thetransactionisnotabusinesscombination,andwhenthetransactionoccurs,itaffectsneitheraccountingprofits

nortaxableincome(asingletransactioninwhichtheinitialrecognitionofassetsandliabilitiesresultsinanequalamountoftaxabletemporarydifferencesanddeductibletemporarydifferencesareexcepted);

(2)Fordeductibletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventuresandassociates,andifthe

followingconditionsaremetatthesametime,thecorrespondingdeferredincometaxassetsarerecognized:thetemporarydifferencesarelikelytobereversedintheforeseeablefuture.Anditislikelytoobtaintaxableincomeinthefuturethatcanbeusedtooffsetdeductibletemporarydifferences.Onthebalancesheetdate,theGroup’sdeferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredattheapplicabletaxrateduringtheperiodwhentheassetisexpectedtoberecoveredortheliabilityissettled,andtheincometaximpactoftheexpectedmethodofrecoveringtheassetorsettlingtheliabilityonthebalancesheetdateisreflected.Onthebalancesheetdate,theGroupreviewsthebookvalueofdeferredincometaxassets.Ifitisprobablethatsufficienttaxableincomewillnotbeavailableinfutureperiodstooffsetthebenefitsofdeferredtaxassets,thecarryingamountofthedeferredtaxassetswillbereduced.Theamountofthewrite-downisreversedwhenitisprobablethatsufficienttaxableincomewillbeobtained.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarepresentedasthenetamountafteroffsettingwhenthefollowingconditionsaremetatthesametime:

(1)Thetaxpayerwithinthegrouphasthelegalrighttosettlecurrentincometaxassetsandcurrentincometax

liabilitiesonanetbasis;

(2)Deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxesleviedbythesametaxcollectionandadministrationdepartmentonthesametaxpayerwithinthegroup.

26.LeasesOnthecontractinceptiondate,theGroup,asalesseeorlessor,evaluateswhetherthecustomerinthecontracthastherighttoobtainsubstantiallyalltheeconomicbenefitsgeneratedfromtheuseoftheidentifiedassetsduringtheuseperiod,andhastherighttodirecttheuseoftheidentifiedassetsduringtheuseperiod.Ifapartyinacontracttransferstherighttocontroltheuseofoneormoreidentifiedassetswithinacertainperiodinexchangeforconsideration,theGroupdeterminesthatthecontractisaleaseorcontainsalease.

(1)Theaccountingpoliciesforright-of-useassetsareshowninNote.

Leaseliabilitiesareinitiallymeasuredbasedonthepresentvalueoftheunpaidleasepaymentsatthebeginningoftheleasetermusingtheinterestrateimplicitinthelease.Iftheinterestrateimplicitintheleasecannotbedetermined,theincrementalborrowingrateisusedasthediscountrate.Leasepaymentsinclude:fixedpaymentsandsubstantivefixedpayments,ifthereareleaseincentives,theamountrelatedtoleaseincentivesisdeducted;variableleasepaymentsthatdependontheindexorratio;theexercisepriceofthepurchaseoption,providedthatthelesseeisreasonableItiscertainthattheoptionwillbeexercised;theamountrequiredtobepaidtoexercisetheoptiontoterminatethelease,providedthattheleasetermreflectsthatthelesseewillexercisetheoptiontoterminatethelease;andtheamountexpectedtobepaidbasedontheresidualvalueoftheguaranteeprovidedbythelessee.Subsequently,theinterestexpenseoftheleaseliabilityforeachperiodduringtheleasetermiscalculatedbasedonthefixedperiodicinterestrateandincludedinthecurrentprofitandloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesareincludedinthecurrentprofitandlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleasewithaleasetermofnomorethan12monthsonthestartdateoftheleaseperiod,exceptforleasesthatincludeapurchaseoption.TheGroupwillincludetheleasepaymentsofshort-termleasesintotherelevantassetcostsorcurrentprofitsandlossesonastraight-linebasisduringeachperiodoftheleaseterm.Low-valueassetleasing

Low-valueassetleasesrefertoleaseswherethevalueofasingleleasedassetislessthan100,000yuanwhenitisabrand-newasset.TheGroupwillincludetheleasepaymentsforlow-valueassetleasesintotherelevantassetcostsorcurrentprofitsandlossesonastraight-linebasisduringeachperiodoftheleaseterm.Forlow-valueassetleases,theGroupchoosestoadopttheabovesimplifiedtreatmentmethodbasedonthespecificcircumstancesofeachlease.LeasechangesIfaleasechangesandthefollowingconditionsaremetatthesametime,theGroupwillaccountfortheleasechangeasaseparatelease:①Theleasechangeexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;

②Increasedtheconsiderationisequivalenttotheindividualpriceoftheextendedportionofthelease,adjustedforthecircumstancesofthecontract.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theGroupre-allocatestheconsiderationofthecontractafterthechange,re-determinestheleaseterm,andcalculatesitbasedonthechangedleasepaymentandthereviseddiscountrate.Presentvaluere-measurementoftheleaseliability.Ifachangeintheleaseresultsinareductioninthescopeoftheleaseorashorteningoftheleaseperiod,theGroupwillaccordinglyreducethebookvalueoftheright-of-useassets,andincludethegainsorlossesrelatedtothepartialorcompleteterminationoftheleaseintothecurrentprofitsandlosses.Ifotherleasechangesresultinthere-measurementofleaseliabilities,theGroupwilladjustthebookvalueoftheright-of-useassetsaccordingly.

(2)TheaccountingpoliciesfortheGroupactsaslessorWhentheGroupactsasalessor,leasesthatsubstantiallytransferallrisksandrewardsrelatedtoassetownershiparerecognizedasfinanceleases,andleasesotherthanfinanceleasesarerecognizedasoperatingleases.FinancialleaseInfinancialleases,theGroup’snetleaseinvestmentonthedateoftheleasetermisrecordedastheaccountingvalueoffinanceleasereceivables.Thenetleaseinvestmentistheunguaranteedresidualvalueandtheleasereceivablesthathavenotbeenreceivedonthedateoftheleasetermarecalculatedbasedontheamountincludedinthelease.Thesumofpresentvaluesdiscountedwithinterestrates.Asthelessor,theGroupcalculatesandrecognizesinterestincomeforeachperiodduringtheleasetermbasedonfixedperiodicinterestrates.VariableleasepaymentsobtainedbytheGroupasalessorthatarenotincludedinthemeasurementofthenetleaseinvestmentareincludedinthecurrentprofitandlosswhenactuallyincurred.ThederecognitionandimpairmentoffinanceleasereceivablesshallbeaccountedforinaccordancewiththeprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsandAccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets.OperatingleaseForrentsinoperatingleases,theGrouprecognizescurrentprofitsandlossesaccordingtothestraight-linemethodineachperiodduringtheleaseterm.Theinitialdirectexpensesincurredinconnectionwiththeoperatingleaseshallbecapitalized,amortizedduringtheleaseperiodonthesamebasisastherentalincomerecognition,andincludedinthecurrentprofitandlossininstalments.Variableleasepaymentsrelatedtooperatingleasesthatarenotincludedintheleasereceiptsareincludedinthecurrentprofitandlosswhentheyactuallyoccur.Leasechanges

Ifanoperatingleasechanges,theGroupwillaccountforitasanewleasefromtheeffectivedateofthechange,andtheamountofleasereceiptsreceivedinadvanceorreceivablerelatedtotheleasebeforethechangeisregardedastheamountofreceiptsfromthenewlease.Ifafinancialleasechangesandthefollowingconditionsaremetatthesametime,theGroupwillaccountforthechangeasaseparatelease:①Thechangeexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;②Theincreasedconsideration.Theamountisequivalenttotheindividualpriceoftheextendedportionoftheleaseadjustedforthecircumstancesofthecontract.Ifafinancialleaseischangedandisnotaccountedforasaseparatelease,theGroupwilltreatthechangedleaseunderthefollowingcircumstances:①Ifthechangetakeseffectontheleasecommencementdate,theleasewillbeclassifiedasanoperatinglease,andtheGroupwillFromtheeffectivedateoftheleasechange,itwillbeaccountedforasanewlease,andthenetleaseinvestmentbeforetheeffectivedateoftheleasechangewillbeusedasthebookvalueoftheleasedasset;②Ifthechangetakeseffectontheleasecommencementdate,theleasewillbeclassifiedasfinancingForleases,theGroupshallconductaccountingtreatmentinaccordancewiththeprovisionsofAccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstrumentsregardingmodificationorrenegotiationofcontracts.

27.Criticalaccountingpoliciesandaccountingestimates

SafetyproductioncostsAccordingtorelevantregulationsoftheMinistryofFinanceandNationalAdministrationofWorkSafety,asubsidiaryoftheGroupwhichisengagedinproducingandsellingpolysiliconappropriatessafetyproductioncostsonfollowingbasis:

(a)4.5%forrevenuebelowRMB10million(inclusive)oftheyear;(b)2.25%fortherevenuebetweenRMB10milliontoRMB100million(inclusive)oftheyear;(c)0.55%fortherevenuebetweenRMB100milliontoRMB1billion(inclusive)oftheyear;(d)0.2%fortherevenueaboveRMB1billionoftheyear.AccordingtotheAdministrativeMeasuresfortheExtractionandUseofEnterpriseSafetyProductionExpenses(CaiZi[2022]No.136),theGroup'ssubsidiariesengagedinminingandprocessingarebasedonminingvolume.Safetyproductionexpenseextractionstandards:Fornon-metallicmines,open-pitminesatRMB3perton,undergroundminesatRMB8perton.Thesafetyproductioncostsaremainlyusedfortheoverhaul,renewalandmaintenanceofsafetyfacilities.Thesafetyproductioncostsarechargedtocostsofrelatedproductsorprofitorlosswhenappropriated,andsafetyproductioncostsinequityaccountarecreditedcorrespondingly.Whenusingthespecialreserve,iftheexpendituresareexpensesinnature,theexpensesincurredareoffsetagainstthespecialreservedirectlywhenincurred.Iftheexpendituresarecapitalexpenditures,whenprojectsarecompletedandtransferredtofixedassets,thespecialreserveshouldbeoffsetagainstthecostoffixedassets,andacorrespondingaccumulateddepreciationarerecognized.Thefixedassetsarenolongerbedepreciatedinfuture.SignificantaccountingjudgmentsandestimatesTheGroupcontinuouslyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedbasedonhistoricalexperienceandotherfactors,includingreasonableexpectationsforfutureevents.Theimportantaccountingestimatesandkeyassumptionsthatarelikelytocauseasignificantadjustmentinthebookvalueofassetsandliabilitiesinthenextfiscalyearareasfollows:

Classificationoffinancialassets

TheGroup’ssignificantjudgmentsinvolvedindeterminingtheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.Factorsconsideredincludethewaytoevaluateandreporttheperformanceoffinancialassetstokeymanagementpersonnel,therisksthataffecttheperformanceoffinancialassetsandtheirmanagementmethods,andrelevantbusinessmanagers.Howtogetpaid,etc.WhentheGroupevaluateswhetherthecontractualcashflowsoffinancialassetsareconsistentwiththebasiclendingarrangements,itmakesthefollowingmainjudgments:whetherthetimedistributionoramountoftheprincipalmaychangeduringthedurationduetoearlyrepayment;whethertheinterestisonlyIncludestimevalueofmoney,creditrisk,otherfundamentallendingrisksandconsiderationagainstcostsandprofits.Forexample,whethertheamountofearlyrepaymentonlyreflectstheunpaidprincipalandinterestbasedontheunpaidprincipal,aswellasreasonablecompensationpaidforearlyterminationofthecontract.MeasurementofexpectedcreditlossesonaccountsreceivableTheGroupcalculatestheexpectedcreditlossesofaccountsreceivablethroughthedefaultriskexposureofaccountsreceivableandtheexpectedcreditlossrate,anddeterminestheexpectedcreditlossratebasedontheprobabilityofdefaultandthelossgivendefaultrate.Whendeterminingtheexpectedcreditlossrate,theGroupusesinternalhistoricalcreditlossexperienceandotherdata,andadjustshistoricaldatabasedoncurrentconditionsandforward-lookinginformation.Whenconsideringforward-lookinginformation,theGroupusesindicatorsincludingtheriskofeconomicdownturn,changesintheexternalmarketenvironment,technicalenvironmentandcustomerconditions.TheGroupregularlymonitorsandreviewsassumptionsrelatedtothecalculationofexpectedcreditlosses.ImpairmentofFixedAssetsandConstructioninProgressAsofthebalancesheetdate,theCompanyassesseswhetherthereareanyindicationsofimpairmentfornon-currentassetsotherthanfinancialassets.Whenthereareindicationsthatthecarryingamountofanassetcannotberecovered,impairmenttestingisconducted.Impairmentoccurswhenthecarryingamountofanassetorassetgroupexceedsitsrecoverableamount,whichisthehigherofthenetamountafterdeductingdisposalcostsfromfairvalueandthepresentvalueofestimatedfuturecashflows.Thenetamountafterdeductingdisposalcostsfromfairvalueisdeterminedbyreferencingthesalesagreementpricesofsimilarassetsinfairtransactionsorobservablemarketprices,minusincrementalcostsdirectlyattributabletotheasset’sdisposal.Significantjudgmentsaremaderegardingtheexpectedfuturecashflowpresentvalue,includingtheasset’s(orassetgroup’s)output,sellingprice,relevantoperatingcosts,andthediscountrateusedinthepresentvaluecalculation.TheCompanyutilizesallrelevantinformationavailabletoestimatetherecoverableamount,includingforecastsofoutput,sellingprices,andrelatedoperatingcostsbasedonreasonableandsupportableassumptions.GoodwillimpairmentTheGroupassesseswhethergoodwillisimpairedatleastannually.Thisrequiresanestimateofthevalueinuseoftheassetgrouptowhichgoodwillisassigned.Whenestimatingvalueinuse,theGroupneedstoestimatefuturecashflowsfromtheassetgroupandselectanappropriatediscountratetocalculatethepresentvalueoffuturecashflows.R&DexpenditureWhendeterminingtheamounttobecapitalized,managementmustmakeassumptionsregardingtheexpectedfuturecashgenerationoftheasset,thediscountratethatshouldbeapplied,andtheexpectedperiodofbenefit.DeferredtaxassetsDeferredtaxassetsshouldberecognizedforallunusedtaxlossestotheextentthatitisprobablethatsufficienttaxableprofitswillbeavailableagainstwhichthelossescanbeutilized.Thisrequiresmanagementtousealotofjudgmenttoestimatethetimingandamountoffuturetaxableprofits,combinedwithtaxplanningstrategies,todeterminetheamountofdeferredincometaxassetsthatshouldberecognized.

28.ChangesinimportantaccountingpoliciesandaccountingestimatesTherewerenochangesinimportantaccountingpoliciesoraccountingestimatesinthecurrentperiod.VI.TAXATION

1.Themaincategoriesandratesoftaxes

Category

2.Taxincentives

TianjinCSGEnergy-SavingGlassCo.,Ltd.(“TianjinEnergyConservation”)passedreviewonahighandnewtechenterprisein2024andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2024.DongguanCSGArchitecturalGlassCo.,Ltd.(“DongguanCSG”)passedreviewonahighandnewtechenterprisein2022andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.WujiangCSGEastChinaArchitecturalGlassCo.,Ltd.(“WujiangCSGEngineering”)passedreviewonahighandnewtechenterprisein2023andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2023.DongguanCSGSolarGlassCo.,Ltd.(“DongguanCSGSolar”)passedreviewonahighandnewtechenterprisein2023andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2023.YichangCSGPolysiliconCo.,Ltd.(“YichangCSGPolysilicon”)passedreviewonahighandnewtechenterprisein2023andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2023.DongguanCSGPV-techCo.,Ltd.(“DongguanCSGPV-tech”)passedreviewonahighandnewtechenterprisein2022andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.HebeiShichuangGlassCo.,Ltd.(“HebeiShichuang”)passedreviewonahighandnewtechenterprisein2022andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.WujiangCSGGlassCo.,Ltd.(“WujiangCSG”)passedreviewonahighandnewtechenterprisein2023,andobtained

theCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2023.XianningCSGGlassCoLtd.(“XianningCSG”)passedreviewonahighandnewtechenterprisein2023,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2023.XianningCSGEnergy-SavingGlassCo.,Ltd.(“XianningCSGEnergy-Saving”)passedreviewonahighandnewtechenterprisein2024,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2024.YichangCSGPhotoelectricGlassCo.,Ltd.(“YichangCSGPhotoelectric”)passedreviewonahighandnewtechenterprisein2024,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2024.YichangCSGDisplayCo.,Ltd(“YichangCSGDisplay”)passedreviewonahighandnewtechenterprisein2024,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2024.QingyuanCSGNewEnergy-SavingMaterialsCo.,Ltd.(“QingyuanCSGEnergy-Saving”)passedreviewonahighandnewtechenterprisein2022,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.HebeiCSGGlassCoLtd.(“HebeiCSG”)passedreviewonahighandnewtechenterprisein2024,andobtainedtheCertificateofHighandNewTechEnterprise,andtheperiodofvaliditywasthreeyears.Itappliesto15%taxrateforthreeyearssince2024.XianningCSGPhotoelectricGlassCo.,Ltd.(“XianningPhotoelectric”)passedreviewonahighandnewtechenterprisein2022andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.ZhaoqingCSGEnergySavingGlassCo.,Ltd.(hereinafterreferredtoas"ZhaoqingEnergySavingCompany")passedreviewonahighandnewtechenterprisein2022andobtainedtheCertificateofHighandNewTechEnterprise,theperiodofvalidityisthreeyears.Itappliesto15%taxrateforthreeyearssince2022.Asthecompanyiscurrentlygoingthroughthe2025reviewofitshighandnewtechenterprisecertificate,theincometaxrateof15%wasprovisionallyadoptedforthereportperiod.SichuanCSGEnergyConservationGlassCo.,Ltd.(“SichuanCSGEnergyConservation”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.ChengduCSGGlassCo.,Ltd.(“ChengduCSG”)obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.Xi'anCSGEnergySavingGlassTechnologyCo.,Ltd.(hereinafterreferredtoas"Xi'anEnergySavingCompany")obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.GuangxiCSGNewEnergyMaterialsTechnologyCo.,Ltd.(hereinafterreferredtoas"GuangxiNewEnergyMaterialsCompany")obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometaxatataxrateof15%forcurrentyear.QinghaiCSGNewEnergyTechnologyCo.,Ltd.(hereinafterreferredtoas"QinghaiNewEnergyCompany")obtainsenterpriseincometaxpreferentialtreatmentforWesternDevelopment,andtemporarilycalculatesenterpriseincometax

atataxrateof15%forcurrentyear.YichangCSGNewEnergyCo.,Ltd.(hereinafterreferredtoas"YichangNewEnergyCompany"),ZhaoqingCSGNewEnergyTechnologyCo.,Ltd.(hereinafterreferredtoas"ZhaoqingNewEnergyCompany"),XianningCSGPVEnergyCo.,Ltd.(“XianningPVEnergy”),AnhuiCSGPhotovoltaicEnergyCo.,Ltd.(“AnhuiPVEnergy”),andSuzhouCSGPhotovoltaicEnergyCo.,Ltd.(“SuzhouPVEnergy”)arepublicinfrastructureprojectspeciallysupportedbythestateinaccordancewiththeArticle87inImplementingRegulationsoftheLawofthePeople'sRepublicofChinaonEnterpriseIncomeTax,andcanenjoythetaxpreferentialpolicyof“three-yearexemptionsandthree-yearhalves”,thatis,startingfromthetaxyearwhenthefirstrevenuefromproductionandoperationoccurs,theenterpriseincometaxisexemptedfromthefirsttothethirdyear,whilehalfoftheenterpriseincometaxiscollectedforthefollowingthreeyears.AnhuiCSGQuartzMaterialCo.,Ltd.(hereinafterreferredtoas"AnhuiQuartzCompany")wasrecognizedasahigh-techenterprisein2023andhasobtainedthe"High-techEnterpriseCertificate".Thecertificateisvalidforthreeyearsanda15%incometaxrateisapplicableforthreeyearsstartingfrom2023.AnhuiCSGNewEnergyMaterialsTechnologyCo.,Ltd.(hereinafterreferredtoas"AnhuiNewEnergyCompany")wasrecognizedasahigh-techenterprisein2023andhasobtainedthe"High-techEnterpriseCertificate".Thecertificateisvalidforthreeyearsanda15%incometaxrateisapplicableforthreeyearsstartingfrom2023.DongguanCSGIntelligentEquipmentCo.,Ltd.(hereinafterreferredtoas"DongguanEquipmentCompany")wasrecognizedasahigh-techenterprisein2024andhasobtainedthe"High-techEnterpriseCertificate".Thecertificateisvalidforthreeyearsanda15%incometaxrateisapplicableforthreeyearsstartingfrom2024.Accordingtothe"AnnouncementontheAdditionalValue-AddedTaxDeductionPolicyforAdvancedManufacturingEnterprises"(AnnouncementNo.43,2023,oftheMinistryofFinanceandtheStateAdministrationofTaxation),regardingtheCompany'shigh-techenterprises,fromJanuary1,2023toDecember31,2027,advancedmanufacturingenterprisesareallowedtodeductanadditional5%ofthedeductibleinputtaxforthecurrentperiodtodeductthevalue-addedtaxpayable.

VII.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS

1.Cashatbankandonhand

Unit:RMB

Item

2.Tradingfinancialassets

Unit:RMB

3.Notesreceivable

（1）Notesreceivablelistedbycategory

Unit:RMB

Item

（2）Classificationbybaddebtaccrualmethod

Unit:RMB

Continued

Provisionforbaddebtsonabasisoftradeacceptanceportfolio:

Unit:RMB

（3）Baddebtprovisionsaccrued,recoveredorreversedinthecurrentperiod

Baddebtprovisionsinthecurrentperiod:

Unit:RMB

Category

（4）NotesreceivablesthattheCompanyhaspledgedattheendoftheperiod

Unit:RMB

（5）Endorsedordiscountednotesreceivablehavenotyetmaturedonthebalancesheet

Unit:RMB

4.Accountsreceivable

（1）Disclosurebyage

Unit:RMB

（2）Classificationbybaddebtaccrualmethod

Unit:RMB

individualbasis

Continued

Provisionforbaddebtsonanindividualbasis:

Provisionforbaddebtsonaportfoliobasis:

（3）Baddebtprovisionsaccrued,recoveredorreversedinthecurrentperiod

Baddebtprovisionsinthecurrentperiod:

Unit:RMB

Category

（4）Accountsreceivableandcontractassetsdetailsofthetop5closingbalancesbydebtors

Unit:RMB

5.Receivablesfinancing

（1）Classificationofreceivablesfinancing

Unit:RMB

6.Otherreceivables

Unit:RMB

（1）Otherreceivables1）Otherreceivablescategorizedbynature

Unit:RMB

Nature

Note:ThisfundisasubsidyfundgiventotheGroupbythegovernment.TheCompanyentrusteditswholly-ownedsubsidiaryYichangCSGSiliconMaterialsCo.,Ltd.tocollectthefund.TheYichangHigh-techZoneManagementCommitteealsopaidthefullamounttoYichangCSGSiliconin2014.Afterreceivingthefunds,YichangCSGSiliconMaterialsCo.,Ltd.transferredthefullamounttoYichangHongtaiRealEstateCo.,Ltd.withoutappropriateapprovalbythethenCompany'sboardofdirectorsandothercompetentauthorities.YichangCSGSiliconMaterialsCo.,Ltd.receivedtheabovefundsfrom21February2014to28April2014andthentransferredtheentireamounttoYichangHongtaiRealEstateCo.,Ltd.TheCompanyfiledaninfringementcompensationlawsuitagainstZengNanandothersandYichangHongtaiRealEstateCo.,Ltd.on15December2021,andShenzhenIntermediatePeople'sCourtofficiallyacceptedthelawsuiton28January2022.ThefirstinstanceofthecasewascompletedinShenzhenIntermediatePeople'sCourton21June2022.On4June2024,theCompanyreceivedthefirstinstanceCivilJudgmentissuedbyShenzhenIntermediatePeople'sCourt,whichrejectedalloftheCompany'slitigationrequests.InJune2024,theCompanyfiledanappealtoGuangdongHigherPeople'sCourt.Thesecond-instancehearingwasheldon12September2024,andthecaseiscurrentlyundersecond-instanceproceedings.

2）Disclosurebyage

Unit:RMB

3）Classificationbybaddebtaccrualmethod

Unit:RMB

Provisionforbaddebtsonaportfoliobasis

Continued

Provisionforbaddebtsaccruedonthebasisofageneralmodelofexpectedcreditlosses:

Unit:RMB

4）Baddebtprovisionsaccrued,recoveredorreversedinthecurrentperiod

Baddebtprovisionsinthecurrentperiod:

Unit:RMB

Category

5）Actualwrite-offofotherreceivablesinthecurrentperiod

Unit:RMB

6）Otherreceivablesdetailsofthetop5closingbalancesbydebtors

Unit:RMB

7.Advancestosuppliers

（1）Listingbyages

Unit:RMB

（2）Advancepaymentofthetop5closingbalancesbyprepaymentobjects

8.Inventories

（1）Inventoryclassification

Unit:RMB

Item

（2）Provisionfordeclineinthevalueofinventoriesandcontractperformancecostimpairmentprovision

Unit:RMB

9.Othercurrentassets

Unit:RMB

10.Investmentproperties

（1）Investmentpropertiesmeasuredinfairvalue

Unit:RMB

rights

11.Fixedassets

Unit:RMB

（1）Listoffixedassets

Unit:RMB

progress

（2）Fixedassetswithoutownershipcertificate

Unit:RMB

12.Constructioninprogress

Unit:RMB

（1）Detailsofconstructioninprogress

Unit:RMB

Item

（2）Movementinthecurrentperiodofsignificantprojectsofconstructioninprogress

Unit:RMB

Projectname