Annual Report 2018
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CSG HOLDING CO., LTD. ANNUAL REPORT 2018 Chairman of the Board: CHEN LIN April 2019 CSG Annual Report 2018 Section I Important Notice, Content and Paraphrase Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and completeness of the whole contents. Ms. Chen Lin, Chairman of the Board, Mr. Wang Jian, responsible person in charge of accounting and Ms.Wang Wenxin, principal of the financial department (accounting officer) confirm that the Financial Report enclosed in this 2018 Annual Report is true, accurate and complete. All directors were present at the meeting of the Board for deliberating the annual report of the Company in person. This report involves future plans and some other forward-looking statements, which shall not be considered as virtual promises to investors. Investors are kindly reminded to pay attention to possible risks. Details of the risk factors and countermeasures of future development have been well-described in this report, please find in Section IV Business Discussion and Analysis. The deliberated and approved plan of profit distribution and capital reserve converted into share capital in the Board Meeting is distributing cash dividend of RMB 0.50 yuan (tax included) for every 10 shares to all shareholders based on 2,863,277,201 shares of the total currently share capital. Meanwhile the Company will transfer capital reserve into capital with 1 shares for every 10 shares to all shareholders based on 2,863,277,201 shares of the total currently share capital. (The actual amount of the cash dividend distributed and capital reserve transferred will be determined according to the total share capital on the capital reserved registration date for profit distribution implementation.) This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail. 1 CSG Annual Report 2018 Content Section I Important Notice, Content and Paraphrase .................................................................................... 1 Section II Company Profile & Financial Highlights .......................................................................................... 4 Section III Overview of the Company’s Business ............................................................................................... 9 Section IV. Business Discussion and Analysis .................................................................................................. 13 Section V. Important Events ............................................................................................................................ 37 Section VI. Changes in Shares and Particulars about Shareholders ................................................................ 59 Section VII. Particulars about Directors, Supervisors, Senior Executives and Employees .............................. 70 Section VIII. Corporate Governance ................................................................................................................ 81 Section IX. Financial Report .......................................................................................................................... 88 Section X. Documents Available for Reference .......................................................................................... 173 2 CSG Annual Report 2018 Paraphrase Items Refers to Contents Company, the Company, CSG or the Group Refers to CSG Holding Co., Ltd. Foresea Life Refers to Foresea Life Insurance Co., Ltd. Ultra-thin electronic glass Refers to The electronic glass with thickness between 0.1~1.1mm Second-generation energy-saving glass Refers to Double silver coated glass Third-generation energy-saving glass Refers to Triple silver coated glass AG glass Refers to Anti-glare glass AF glass Refers to Anti-fingerprint galss 3 CSG Annual Report 2018 Section II Company Profile & Financial Highlights I. Company information Code for A-share 000012 Code for B-share 200012 Short form for A-share Southern Glass A Short form for B-share Southern Glass B Listing stock exchange Shenzhen Stock Exchange Legal Chinese name of the Company 中国南玻集团股份有限公司 Abbr. of legal Chinese name of the 南玻集团 Company Legal English name of the Company CSG Holding Co., Ltd. Abbr. of legal English name of the CSG Company Legal Representative Chen Lin Registered Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. Post Code 518067 Office Add. CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P. R.C. Post Code 518067 Internet website www.csgholding.com E-mail [email protected] II. Person/Way to contact Secretary of the Board Representative of security affairs Name Yang Xinyu Chen Chunyan CSG Building, No.1 of the 6th Industrial CSG Building, No.1 of the 6th Industrial Contacts add. Road, Shekou, Shenzhen, P. R.C. Road, Shekou, Shenzhen, P. R.C. Tel. (86)755-26860666 (86)755-26860666 Fax. (86)755-26860685 (86)755-26860685 E-mail [email protected] [email protected] III. Information disclosure and preparation place Securities Times, China Securities Journal, Shanghai Securities News, Securities Newspapers for information disclosure Daily and Hong Kong Commercial Daily Website assigned by CSRC to release the www.cninfo.com.cn annual report The place for preparation of the annual Office of the Board of Directors report IV. Registration changes of the Company Organization code Unified social credit code: 914403006188385775 4 CSG Annual Report 2018 Changes of main business since listing (if No changes applicable) Previous changes for controlling No changes shareholders (if applicable) V. Other relevant information CPA firm engaged by the Company Name of CPA firm Asia Pacific (Group) CPAs (special general partnership) Room 301, building 1, No. 9, Che Gong Zhuang Street, Xicheng District, Beijing, Offices add. for CPA firm China Signing Accountants Zhao Qingjun, Zhou Xianhong Sponsor institute engaged by the Company for performing continuous supervision duties in the report period □ Applicable √ Not applicable Financial consultant engaged by the Company for performing continuous supervision duties in the report period □ Applicable √ Not applicable VI. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not □Yes √No 2018 2017 Changes over last year 2016 Operating income (RMB) 10,609,963,011 10,879,400,746 -2.48% 8,974,083,407 Net profit attributable to shareholders of 452,965,935 825,388,312 -45.12% 797,721,576 the listed company (RMB)* note1 Net profit attributable to shareholders of the listed company after deducting 367,579,835 745,373,108 -50.69% 776,950,973 non-recurring gains and losses (RMB) *note2 Net cash flow arising from operating 2,130,378,100 2,463,446,156 -13.52% 2,240,852,120 activities (RMB) Basic earnings per share (RMB/Share) 0.16 0.30 -46.67% 0.33 *note3 Diluted earnings per share (RMB/Share) 0.16 0.29 -44.83% 0.33 *note4 Weighted average ROE (%) *note5 5.16% 10.15% -4.99% 10.33% Changes over the end As at 31 Dec. As at 31 Dec. 2018 As at 31 Dec. 2017 of last year 2016 Total assets (RMB) 19,114,234,184 19,535,002,368 -2.15% 17,146,815,630 Net assets attributable to shareholders of 9,103,154,571 8,458,587,873 7.62% 7,808,915,004 the listed company (RMB) 5 CSG Annual Report 2018 Influence of equity incentive expense: Note (1): Data in aforesaid table has contained the equity incentive expense RMB 141.49 million yuan shared and included into loss and gain in 2018,and the effect on the net profit attributable to shareholder of listed company was RMB 124.63 million yuan. Excluding the effect of equity incentive expense share, the net profit attributable to shareholder of listed company in 2018 was RMB 577.59 million yuan, a year-on-year decrease of RMB 247.8 million yuan, or 30.02% Note (2): Excluding the effect of equity incentive expense share, the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses in 2018 was RMB 492.21 million yuan, a year-on-year decrease of RMB 253.16 million yuan, or 33.96% Note (3): Excluding the effect of equity incentive expense share, the basic earnings per share in 2018 was RMB 0.21yuan, declined 30% year on year. Note (4): After excluding the effect of equity incentive expense share, the diluted earnings per share in 2018 was RMB 0.20 yuan, declined 31.03% year on year. Note (5): After excluding the effect of equity incentive expense share, the weighted average ROE 2018 was 6.58%, declined 3.57% year on year. The total share capital of the company as of the previous trading day of disclosure (share) 2,863,277,201 Fully diluted earnings per share calculated with latest equity (RMB/share) 0.16 Whether there is corporate bonds □Yes √No Whether there is continuous loss in recent two years □Yes √No VII. Accounting Data Differences under Chinese Accounting Standards (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Net Income and Equity Differences under CAS and IFRS □ Applicable √ Not applicable No such differences for the Report Period.