CSGHOLDINGCO.,LTD.

ANNUALREPORT2024

ChairmanoftheBoard:

CHENLIN

April2025

SectionI.ImportantNotice,ContentandParaphraseTheBoardofDirectorsandtheSupervisoryCommitteeofCSGHoldingCo.,Ltd.(hereinafterreferredtoastheCompany)anditsdirectors,supervisorsandseniorexecutivesherebyconfirmthattherearenoanyfictitiousstatements,misleadingstatements,orimportantomissionscarriedinthisreport,andshalltakeindividualandjointlegalresponsibilityforthefacticity,accuracyandcompletenessofthewholecontents.Ms.ChenLin,ChairmanoftheBoard,Ms.WangWenxinresponsiblepersoninchargeofaccountingandMs.WangWenxin,principalofthefinancialdepartment(accountingofficer)confirmthattheFinancialReportenclosedinthisAnnualReport2024istrue,accurateandcomplete.AlldirectorswerepresentatthemeetingoftheBoardfordeliberatingtheannualreportoftheCompanyinperson.Thefutureplans,developmentstrategiesandotherforward-lookingstatementsmentionedinthisreportdonotconstituteamaterialcommitmentoftheCompanytoinvestors.Investorsandrelevantpartiesshouldpayattentiontoinvestmentrisks,andunderstandthedifferencesbetweenplans,forecastsandcommitments.TheCompanyhasdescribedtheriskfactorsandcountermeasuresoftheCompany'sfuturedevelopmentindetailinthisreport.PleaserefertoSectionIII.ManagementDiscussionandAnalysis.TheCompanyisrequiredtocomplywiththedisclosurerequirementsof"NonmetallicBuildingMaterialsRelatedBusiness"inthe"Self-regulatoryGuidelinesforListedCompaniesontheShenzhenStockExchangeNo.3-IndustryInformationDisclosure".ThedeliberatedandapprovedplanofprofitdistributionintheBoardMeetingisdistributingcashdividendofRMB0.7yuan(taxincluded)forevery10sharestoallshareholdersbasedon3,070,692,107sharesasat31December2024,0bonusshares(includingtax)willbegiven,andnocapitalstockwillbeconvertedfromprovidentfund.TheactualamountofthecashdividenddistributedwillbedeterminedaccordingtothetotalsharecapitalontheregistrationdateoftheCompany'simplementationoftheprofitdistributionplan.ThisreportispreparedbothinChineseandEnglish.ShouldtherebeanyinconsistencybetweentheChineseandEnglishversions,theChineseversionshallprevail.

Content

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

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

SectionIII.ManagementDiscussionandAnalysis.......................................................9

SectionIV.CorporateGovernance.............................................................................39

SectionV.EnvironmentandSocialResponsibility.....................................................57

SectionVI.ImportantEvents.......................................................................................62

SectionVII.ChangesinSharesandParticularsaboutShareholders..........................86

SectionVIII.Preferredshares......................................................................................93

SectionIX.Bonds.........................................................................................................94

SectionX.FinancialReport.........................................................................................97

DocumentsAvailableforReference

I.Textofthefinancialreportcarryingthesignaturesandsealsofthelegalrepresentative,responsiblepersoninchargeofaccountingandpersoninchargeoffinancialinstitution;II.OriginaloftheAuditors'Reportcarryingthesealoftheaccountingfirmandthesignaturesandsealsofthecertifiedpublicaccountants;III.AlltextsoftheCompany'sdocumentsandoriginalpublicnoticesdisclosedonthewebsiteandpapersappointedbyCSRCinthereportperiod.

Paraphrase

Items

SectionII.CompanyProfile&FinancialHighlights

I.Companyinformation

Shortformofthestock

II.Person/Waytocontact

III.Informationdisclosureandpreparationplace

IV.RegistrationchangesoftheCompany

V.Otherrelevantinformation

CPAfirmengagedbytheCompany

NameofCPAfirm

SponsorinstituteengagedbytheCompanyforperformingcontinuoussupervisiondutiesinthereportperiod

□Applicable√NotapplicableFinancialconsultantengagedbytheCompanyforperformingcontinuoussupervisiondutiesinthereportperiod

□Applicable√NotapplicableVI.MainaccountingdataandfinancialindexesWhetherithasretroactiveadjustmentorrestatementonpreviousaccountingdata

□Yes√No

TheloweroftheCompany'snetprofitbeforeandafterthedeductionofnon-recurringgainsandlossesinthelastthreefiscalyearsisnegative,andtheauditor'sreportofthepreviousyearshowsthattheCompany'sgoingconcernabilityisuncertain.

□Yes√NoThelowerofthenetprofitbeforeandafterthedeductionofthenon-recurringgainsandlossesisnegative

□Yes√No

VII.AccountingDataDifferencesunderandForeignAccountingStandards

1.NetIncomeandEquityDifferencesunderCASandIFRS

□Applicable√NotapplicableNosuchdifferencesfortheReportPeriod.

2.NetIncomeandEquityDifferencesunderCASandForeignAccountingStandards

□Applicable√NotapplicableNosuchdifferencesfortheReportPeriod.

VIII.Mainfinancialindexesbyquarter

Unit:RMB

Q1

Whethertherearesignificantdifferencesbetweentheabove-mentionedfinancialindexoritstotalnumberandtherelevantfinancialindexdisclosedintheCompany'squarterlyreportandsemi-annualreportornot

□Yes√No

IX.Itemsandamountsofnon-recurringgainsandlosses

√Applicable□Notapplicable

Unit:RMB

Othernon-operatingincomeandexpenditureexceptfortheaforementioneditems

Particularsaboutothergainsandlossesthatmeetthedefinitionofnon-recurringgainsandlosses:

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

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

SectionIII.ManagementDiscussionandAnalysis

I.ParticularsabouttheindustrytheCompanyengagesinduringthereportperiod

PhotovoltaicglassindustryIn2024,thephotovoltaicmarketcontinuedtogrowasawhole.AccordingtoestimatesbytheChinaPhotovoltaicIndustryAssociation,globalphotovoltaicinstalledcapacityincreasedbyapproximately530GW,representingayear-on-yeargrowthofabout35.9%.DatareleasedbytheNationalEnergyAdministrationshowthatChina'sphotovoltaicinstalledcapacitygrewby277GWin2024,ayear-on-yeargrowthofapproximately28.3%,maintainingaleadingpositionintheglobalphotovoltaicmarket.Asbothdemandandproductioncapacityinoverseasphotovoltaicmarketsincreasedinparallel,coupledwithrisingtariffsandtradebarriersagainstChinesephotovoltaicproductsinvariouscountries,competitionintheglobalphotovoltaicmarketintensified.Intermsofsupply,althoughglobaldemandforphotovoltaicmodulescontinuedtogrowin2024,theimbalancebetweensupplyanddemandinthephotovoltaicglassindustryintensified,leadingtoadownturninend-productpricesandmountingpressuresforphotovoltaicenterprises.ArchitecturalglassindustryThearchitecturalglassbusinesscloselyfollowsthenational"dualcarbon"strategy,focusingonenhancingtheenergyefficiencyandsafetyperformanceofbuildings.Leveragingdeep-processingtechnologyfortheoriginalfloatglasssheet,thebusinessproduceshigh-performancearchitecturalglassproductswithfeaturessuchaslowemissivity,highthermalinsulation,andimpactresistance.Thisbusinesssegmentalignscloselywiththegreenbuildingdevelopmenttrendandplaysacriticalroleinenergyconservationandconsumptionreductionthroughoutthebuildinglifecycle.Althoughdatashowthatindevelopedcountriestheapplicationrateofenergy-savingglasshasexceeded80%,thereremainssubstantialroomforgrowthinmarketpenetrationwithinChina.WiththeimplementationoftheActionPlanfortheEstablishmentofGreenBuildingsjointlyissuedbytheMinistryofHousingandUrban-RuralDevelopmentandotherministries,itisexpectedthatby2025allnewlyconstructedurbanbuildingsinChinawillfullycomplywithgreenbuildingstandards.Combinedwithpolicydocumentssuchasthe14thFive-YearPlanforBuildingEnergyEfficiencyandGreenBuildingDevelopment,themarketforenergy-savingbuildingmaterialsisexpectedtoencounterstructuralgrowthopportunities.TakenintoaccounttheaforesaidpoliciesandthelatestenergyefficiencyrequirementsforpublicbuildingsinthenationalActionPlanforCarbonPeakingBefore2030,itisexpectedthatthearchitecturalglassbusinesswillgainsignificantdevelopmentopportunitiesduringthe"14thFive-YearPlan"period.Inaddition,withthegradualimprovementofdomesticsocialconsumptionlevelinrecentyears,buildingenergyconservation,safetystandards,andqualityrequirementshavebeencontinuouslyimproved.Inpractice,thebadpracticeofwinningthebidbythelowestpriceforconstructionprojectshasbeeninitiallyreversed,andthequalityandinfluenceof"MadeinChina"havebeenincreasinglyrecognizedaroundtheworld,whichwillbringbroaderdevelopmentspacetoadvantageousenterprisesthatattachimportancetoproductqualityandtechnologicalinnovation,aswellasstableindustrialchainandsupplychain.FloatglassindustryIn2024,thefloatglassindustryfacedsignificantpressurefordeepstructuraladjustment.Affectedbythecontinueddownturnintherealestatemarket,demandinthetraditionalbuildingmaterialssectorcontractedsignificantly.AccordingtodatafromSCI99.COM(SublimeChinaInformation),bytheendof2024,thenumberofoperational

floatglassproductionlinesnationwidehaddecreasedto225,withatotaldailymeltingcapacityofapproximately158,000tons,down8.84%year-on-year,indicatingashrinkingtrendinproductioncapacity.Floatglasstraditionallyfindsitsmainapplicationinbuildingmaterials,anditsdemandtrendspositivelycorrelatewithinfrastructureinvestmentsandtheoverallprosperityoftherealestatesector.In2024,withtheconclusionofthe"guaranteeoftimelydeliveryofhousingprojects"policycycle,datafromtheNationalBureauofStatisticsshowthatthetotalhousingcompletionareainChinadeclinedsharplyby27.7%year-on-year,leadingtoamarkedreductionintotaldemandforfloatglass.This,combinedwithcontinueddeclinesincoreindicatorssuchasrealestateinvestment,newhousingconstructionarea,andsalesarea,hasalteredthesupply-demanddynamicsofthedomesticrealestatemarketandincreaseduncertaintyinlong-termmarketdemand.Thefloatglassindustryisundergoingstructuraladjustment.Basedonananalysisofthemarketdemandstructure,althoughoveralldemandisdeclining,withthecontinuedimplementationofthenational"dualcarbon"policyandsteadydevelopmentinthegreenenergy-savingandnewenergysectors,demandforindustrialglass,representedbyautomotiveglass,hasincreasedsignificantly.Simultaneously,aseconomicgrowthcontinuesandlivingstandardsimprove,demandforhigh-qualityproductssuchasultra-whitefloatglassisexpectedtocontinuerising,drivenbyconsumptionupgrades.ElectronicglassanddisplayindustryAccordingtodatafromIDC(InternationalDataCorporation),globalsmartphoneshipmentsreached1.24billionunitsin2024,ayear-on-yearincreaseof6.4%,markingarecoveryaftertwoconsecutiveyearsofdeclineandreversingtherecordlowsetin2023overthepastdecade.IDCforecaststhatthemobilephonemarketwillcontinuetogrowin2025,albeitataslowerpace,enteringaphaseofmoderaterecovery.In2024,bothglobalandChineseautomotiveproductionandsalestrendedupward.AccordingtotheChinaAssociationofAutomobileManufacturers,China'sautomobileproductionandsaleseachexceeded31millionunitsin2024,withproductionandsalesofnewenergyvehiclesreaching12.888millionand12.866millionunits,respectively,representingyear-on-yearincreasesof34.4%and35.5%.Newenergyvehiclesaccountedfor40.9%oftotalnewvehiclesales.Althoughdownstreamdemandforconsumerelectronicsandvehicle-mounteddisplayhasbeguntorecover,industrystatisticsshowthatdomesticelectronicglassproductioncapacityremainedatahighlevelin2024,andtheissueofsupply-demandimbalanceshowednosignificantimprovement.Consequently,electronicglasspricescontinuedtodecline,placingpressureontheindustry'sprofitability.SolarenergyindustryAsastrategicemergingindustryinChina,thephotovoltaicindustryhas,overmorethantwodecadesofrapiddevelopment,achievedahistoricleapfromtechnologicalcatch-uptogloballeadershipandcompleteditstransformationfromasupplementaryenergysourcetoamainenergysource.Amidtheglobalchallengeofclimatechange,China'sphotovoltaicindustryisreshapingtheglobalenergylandscapethroughitscompetitiveadvantageacrosstheentirevaluechain.Currently,theindustryismakinganall-outefforttoexploretrillion-levelmarketsandleadhumanitytowardacleanandlow-carbonfuture.However,theindustryfacedchallengesin2024,asasurgeinproductioncapacitytriggeredpricewarsthatcausedsignificantdeclinesinproductprices.Inthiscontext,smallandmedium-sizedenterprisesaswellasfinanciallytroubledcompaniesfacedbankruptcyrisks,whilemanycross-sectorplayersexitedtheindustry.Onthetechnologyfront,next-generationtechnologiessuchasTOPCon,HJT,andBCaregraduallyreplacingPERC.Notably,HJTand0BBtechnologiesareleadingtheindustrytrendduetotheiroutstandingadvantagesincostreductionandefficiencyenhancement.Intheinternationalmarket,althoughcompaniesareacceleratingglobalexpansionandexploringemergingmarkets,risingtradebarriersinEuropeandtheUnitedStateshaveincreaseduncertaintiesinoverseasmarkets.AccordingtodatafromtheNationalEnergyAdministration,thesolarpowerinstalledcapacitynationwideincreasedby27.8%year-on-yearin2024.Onthepolicyfront,thegovernmenthasissueddocumentstoguideand

regulateindustrydevelopmentandpreventtheconstructionofinefficientproductioncapacity.II.MainbusinessoftheCompanyduringthereportperiodCSGisaleadingdomesticbrandofenergy-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.PhotovoltaicglassbusinessBeingoneofthefirstChinesemanufacturerstoenterthephotovoltaicglassmanufacturingfieldin2005,theCompanyhasaccumulatednearly20yearsofexperienceinthissector.Basedonindependentresearchanddevelopment,ithasformedafullclosed-loopproductioncapacityfromphotovoltaicglassoriginalsheetproductiontodeepprocessing,withasolidfoundationinkeyequipmentandtechnologiessuchaskiln,calendaringanddeepprocessing.Adheringtothephilosophyoftechnologicalinnovationdrivingindustrialupgrading,theCompanyisfullycommittedtothein-depthresearchandpracticeofphotovoltaicglasscalendaringtechnology,processingtechnologyandequipment.Ithasaccumulatedrichexperienceinproductiontechnology,processphilosophiesandproductcognition,andhasadvancedtechnologyresearchanddevelopmentadvantages.Withhigh-qualityproducts,theCompanyenjoysahighstatusandgoodreputationintheindustry,andhasbecomeanimportantandevenstrategiccooperativesupplierofglobalmoduleleadingenterprises.InthecontextofacceleratingglobalenergytransformationandChina'scarbonpeakandcarbonneutrality,theCompanyisfirmlyoptimisticaboutthelong-termdevelopmentofthephotovoltaicnewenergyindustry.Relyingonthenational"14thFive-YearPlan"anditsownstrategicdevelopmentplan,theCompanyfocusesonrampingupproductioninandscalingupitsphotovoltaicglassbusiness.TheCompanyhasatotalof9photovoltaicrolledglassoriginalsheetproductionkilnsandsupportingphotovoltaicglassdeepprocessingproductionlinesinDongguan,Wujiang,Fengyang,XianningandGuangxi,covering1.6-4mmthicknessdeepprocessingproducts.TheCompany'sfirstkilnofphotovoltaicglassandsupportingprocessinglinesinGuangxiwereputintoproductionandcommercialoperationduring2024,thesecondkilnandsupportingprocessinglineswereignitedinMarch2025,andthetechnicalupgradingprojectofWujiangphotovoltaiclineareunderconstructioninanorderlymannerasplanned.Currently,theCompany'sdailymeltingcapacityofphotovoltaicglassisabout9,000tons,whichhasleapttotheforefrontoftheindustryandhasbecomeapillarbusinessoftheCompany.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.Ithascontinuouslyinvestedandaccumulatedrichexperienceintheresearchofproductionautomation,intellectualization,informationtechnologyandequipment,andtheefficiencyimprovementofintelligentupgradingandtransformationoftraditionalequipment.Throughtechnologicalprogressandprocessoptimization,theCompanyhaseffectivelyreducedproductionmanpowerconsumption,materialconsumptionandenergyconsumption,activelypromotingtheCompany'stransformationandupgradingtoachieveintensivemanufacturingandhigh-qualitydevelopment.FloatglassbusinessInthefieldoffloatglass,CSGhas10advancedfloatglassproductionlinesinDongguan,Chengdu,Langfang,WujiangandXianning.In2024,twoproductionlines(oneinChengduFloatCompanyandtheotherinWujiangFloatCompany)wereshutdownfortechnicaltransformation,withanaimtofurtherimproveproductionefficiencyandproductquality.AndthetransformedproductionlineinChengduFloatCompanyhasbeenignitedinFebruary2025.Theproductsthatcoverhigh-qualityfloatglassandultra-whitefloatglasswithvariousthicknessesandspecificationsof1.6-25mmaretrustedbycustomersbecauseoftheirquality.TheproportionofdifferentiatedCSGfloatglassproductswithspecialspecificationsandspecialapplicationscenariossuchasultra-white,ultra-thinandultra-thickislarge,whicharewidelyusedinhigh-endbuildingcurtainwalls,decorationandfurniture,reflectors,automobilewindshields,scannersandphotocopierstransmittingplates,homeappliancepanels,displayprotectionandotherfieldswithhighrequirementsonglassquality.Withhigh-qualityproductsandstablesupply,CSGhasestablishedlong-termandstablebusinesscooperationwithmanywell-knownprocessingenterprises.

Theprofitlevelofthefloatglassbusinessisgenerallypositivelycorrelatedwiththelevelofrealestatedata,andisalsoaffectedbymultiplefactorssuchascurrentenergyandrawmaterialprices,productstructure,andenterprisemanagementlevel.Differentiatedglassproductshavehigheraddedvalueduetospecificapplicationscenarios,higherproductionprocessdifficulties,steadilyincreasingdemand,andrelativelyproactivepricingbymanufacturers.Inresponsetomarketchanges,theCompanyfocusesonimprovingmanagementefficiency,firmlyimplementingthedifferentiatedcompetitionstrategy,carefullycultivatinganddevelopingdifferentiatedproductmarkets,andcontinuouslyincreasingtheproportionofultra-white,ultra-thick,andultra-largefloatglassinsales,soastocontinuouslyconsolidateandenhancemarketcompetitiveness.ElectronicglassanddisplaybusinessUponmorethanadecadeofdevelopment,CSGElectronicGlasshasalwaysadheredtotechnologyleadership,attachedimportancetoR&Dandinnovation,brokenthroughmarketbarrierswithindependentintellectualpropertyrightsandindependentinnovation,andfirmlyfollowedthedevelopmentrouteofqualitypriority.Aftermorethanadecadeofcontinuouscultivationandaccumulation,CSGElectronicGlasshasfullycoveredvariousapplicationscenariosandthehigh,mediumandlow-endmarketsoftheseapplicationscenarios.Itactivelyexploresnewmarketsanddevelopednewapplicationsinintelligentconsumerelectronicsterminals,touchcomponents,automotivewindowglass,vehicledisplays,medicalequipment,industrialcontrolcommercialdisplays,smarthomesandotherapplicationfields,andthemarketshareandbrandeffectoftheCompany'smedium-aluminaandhigh-aluminaelectronicglassproductshavebeensteadilyimproving.CSGhaslongbeencommittedtobecominganindustry-leadingproviderofhigh-endelectronicglassmaterialsolutions,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-mounted2A(ARandAF)coverplates,vehicle-mounted3Acoverplates,andcustomizedcoverplatesofspecialfunctions.Theseproductsaresuppliedindirectlytorenowneddomesticandinternationalautomotivebrandsthroughdownstreamcustomersofvehicle-mounteddevicemanufacturers.SolarenergybusinessAsapioneerinthefieldofphotovoltaicproductmanufacturinginChina,CSGGrouphasbuiltacompleteindustrialchaincoveringhigh-puritycrystallinesilicon,siliconwafers,solarcells,modulesandtheinvestmentandoperationofphotovoltaicpowerplants.Ithasthreenational-levelandsevenprovincial-levelscientificresearchandtechnologyplatforms,includingthe"NationalandLocalJointEngineeringLaboratoryforSemiconductorSiliconMaterialPreparationTechnology"andthe"NationalEnterpriseTechnologyCenter".Inrecentyears,withthein-depthpromotionofthe"dualcarbon"goals,competitioninthephotovoltaicindustryhasbecomeincreasinglyfierce.ThesubsidiariesofCSG'sphotovoltaicsegmentactivelyimplementthestrategicarrangementsoftheGroup,vigorouslypromotingthelow-energy-consumingprojectofYichangbase,thehigh-puritycrystallinesiliconprojectofQinghaibase,themarketexpansionofdifferentiatedproductsofDongguanbase,andthepowerstationprojectofShenzhenbase.Thesemovesareaimedtofurtherexpandbusinessterritoryandenhancemarketcompetitiveness.Facingtheprofoundadjustmentofthephotovoltaicindustrialchainin2024,CSGGrouphascloselyadheredtothecorestrategy

of"reducinglossesandcontrollingrisks"andhastakenaseriesoftargetedmeasurestostrivetonavigatethroughadversity,controllosses,andactivelyexplorenewdevelopmentpaths.III.CoreCompetitivenessAnalysis

CSGGroup,oneofthemostcompetitiveandinfluentiallarge-scaleenterprisesinChina'sglassindustryandnewenergyindustry,iscommittedtothedevelopmentofenergyconservationrenewable,andnewmaterialindustry.Aftermorethanfourdecadesofdevelopmentandaccumulation,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.TheCompanywasawardedthetitlesof"GuangdongBuildingMaterials20-yearMeritoriousEnterprise"and"ShenzhenTop500Enterprisesfor2024"(rankingNo.81).

2.TechnologyresearchanddevelopmentadvantagesTheCompanyhasalwaysvaluedtechnologicalR&DandadoptedindependentR&Dasitsfoundationsinceitsestablishment.Asof31December2024,theCompanyhashadatotalof22nationalhigh-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.Asof31December2024,theCompanyhasappliedforatotalof3,334patents,including1,455inventionpatents,1,866utilitymodelpatents,and13designpatents.Moreover,theCompanyhashadatotalof2,480authorizedpatents,including601inventionpatents,1,866utilitymodelpatents,and13designpatents.

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,managementphilosophyandexperience.

5.GreendevelopmentadvantagesWiththecontinuousimpetusofthe"dualcarbon"goals,theCompanyhastakenactiveactionsinvariouscarbon-relatedfields.Forexample,theCompanyhaswidelyconductedprofessionaltrainingoncarbonemissionmanagementtoimprovetheabilityofrelevantpersonneltobettercopewithcarbon-relatedaffairs.Meanwhile,theCompanyhasactivelypromotedthrough-lifecarbonfootprintcertificationforrelevantproductsasapreparationfordownstreammarketexpansionofgreenandlow-carbonproducts.Furthermore,HebeiCSGGlassCo.,Ltd.,asubsidiaryoftheCompanyandanoutstandingandbenchmarkenterpriseintheflatglassindustry,recognizedasapilotenterpriseforcarbonpeakingintheconstructionmaterialindustry,hasmadeeffortstoexploreandimplementtheactionplansandeffectiveroutesofcarbonpeakingintheindustry.TherelevantsubsidiaryoftheCompanyhasactivelygotteninvolvedintheregionalpilotmarketofcarbontransactionstostriveforacalculationmethodofcarbonquotamatchingtherealsituationoftheCompany'sproduction.Withitstotalemissionshighlyconsistentwiththequotas.Asapioneerofgreendevelopmentintheindustry,theCompanyhas11subsidiariesbeinghonoredasnational"GreenFactories",winningitselfabundantroomfordevelopment.IV.Mainbusinessanalysis

1.OverviewTheyear2024sawaslowrecoveryintheglobaleconomyduetoacombinationoffactors.AccordingtothedatareleasedbytheNationalBureauofstatistics,China'snationaleconomypickedupin2024,withtheGDPexceedingRMB130trillionforthefirsttime.TheGDPtotalledRMB134.91trillion,increasingby5.0%year-on-year.Theinvestmentinfixedassets(excludingfarmers)totalledRMB51.44trillion,increasingby3.2%year-on-year.TheinvestmentinrealestatedevelopmenttotalledRMB10.03trillion,decreasingby10.6%year-on-year,andthefloorspaceofbuildingscompletedwas737millionsquaremeters,decreasingby27.7%year-on-year.Facingthedynamicchangesinthepoliticalandeconomiclandscapeathomeandabroad,aswellastheincreasingpressureofmarketcompetition,CSG,underthecorrectleadershipoftheBoardofDirectors,adoptsthegoalofbecomingaworld-classenterprise,andfirmlytakestheroadofhigh-qualitydevelopment.Bycontinuouslyimplementingdifferentiatedoperation,constantlyimprovingitscapacityofleanproductionandintelligentmanufacturing,activelypromotingprojectconstruction,optimizingitsindustriallayout,andconsolidatingresourcereserves,theCompanyfurtherstrengthensitscorecompetitiveness.In2024,theCompany'srevenuetotalledRMB15,455million,decreasingby15%year-on-year,anditsnetprofitreachedRMB248million,decreasingby84%year-on-year;meanwhile,theCompany'snetprofitattributabletoshareholdersofthelistedcompanywasRMB267million,decreasingby84%year-on-year.I.OperationofeachindustryoftheGroupInrecentyears,CSGhascontinuouslypromotedbusinessoptimisation,strengtheneditscompetitiveadvantageintraditionalenergy-savingconstructionmaterials,andacceleratedthedevelopmentofitsnewenergyandnewmaterialindustrialsectors.TheCompany'sadvantageinthediversifiedindustrylayoutbecameprominentin2024,thestrong

supportofitsarchitecturalglassbusiness,floatglassbusinessandphotovoltaicglassbusinesseffectivelydilutingtheimpactofcyclicalfluctuationsinacertainindustry.In2024,theCompany'sglassbusiness(floatglass,photovoltaicglass,andarchitecturalglass)recordedrevenueofRMB13,756millionandanetprofitofRMB857million.GlassbusinesssegmentPhotovoltaicglass:In2024,thesupply-demandmismatchinthephotovoltaicmarketwasprominent.This,coupledwithfactorssuchasinternationaltradebarriersandsupplychainrisks,ledtoasignificantdeclineinindustrialchainprices.Theindustrywasinacyclicaladjustmentphase.Intheprocessofdeepadjustmentofthemarketstructure,theCompanywasfullydedicatedtoprovidinghigh-qualityandhigh-performancephotovoltaicglassproductswhileperfectingitsindustriallayoutandenhancingitseconomiesofscale.Itcontinuedtopromotetheleanproductionmanagementtoimproveefficiencyandunswervinglyimplementedthedifferentiatedbusinessstrategy.Ontheonehand,itreliedonitsownresourceendowmentandgavefullplaytotheadvantagesofunderlyingtechnologytoempowertheenhancementofproductionefficiencyandcostreduction.Ontheotherhand,preciselycombiningwiththedownstreamcustomers'demandforproductdiversification,itmatchedthecharacteristicsofdifferentbatterytechnologiestodevelopandpromotedifferentiatedproducts.Byputtingvariousimportantmanagementinitiativesinplace,theCompany'sphotovoltaicglassbusinessachievedrelativelysoundoperationinthevolatilemarketcondition,andgraduallyformedacorecompetitivenessofsustainabledevelopment.Architecturalglass:AsaleadingbrandinChina'sarchitecturalglassindustry,CSGadherestothedevelopmentphilosophyof"Technology-drivenGrowth,IntelligentManufacturingEmpowerment",deeplyintegratesnewqualityproductivityandindustrialupgrading,buildsaninnovationsystemcoveringtheentirechainof"R&D-intelligentmanufacturing-service",andformsquality,serviceandcontinuousR&Dcapabilitiesthatmatchthebrand.Focusingonthecontinuousimprovementofthebuildingenergy-savingstandardsandhigh-risebuildingsafetystandards,theCompanystrengthensbrandbuildingandadherestothecustomizedbusinessstrategyintegratingtechnicalservice,marketing,andR&Dandmanufacturing,tomeetthepersonalizedneedsofdomesticandforeigncustomersandconstructionprojects.AstheCompany'sshareinthedomestichigh-endconstructionmarketcontinuestorise,italsomaintainsaleadingpositioninmarketscaleandprofitabilityinthefieldofdeepprocessingwithinthesameindustry.Inthecontextofintensifiedeconomiccyclefluctuationsin2024,theCompanybuiltanewparadigmofsmartfactoriesbasedontheindustrialInternetplatform,andachieveddynamicoptimizationofproductionlinesthroughdigitaltwintechnology,soastoshortenthedeliverycycleofcustomizedproductsandimprovetheyieldrate.Inthegreenandlow-carbonfield,theCompanyappliedbuildingintegratedPV(BIPV)glasstechnologytodeveloppowergenerationglassproductsthatcanrealizepower-generatingbuildings.RelatedsolutionshavebeenappliedtotheconstructionoftheZero-carbonDemonstrationParkoftheGuangdong-HongKong-MacaoGreaterBayArea.Additionally,byrefiningthemarketlayout,theCompanycontinuedtoincreasethesigningofhigh-qualityprojects,whichresultedinthedrasticyear-on-yearincreaseoftheordercompoundingdegree.Furthermore,itstronglyadvancedthebusinessofcustomizedproductstoexplorenewbusinessgrowingpoints,andcontinuedtoincreasetheproportionofsalesofdifferentiatedproductstofurtherenhancetheoverallproductprofitability.Withtheadoptionofthisseriesofinitiatives,theCompany'sarchitecturalglassbusinessachievedasteadyoperationinthecurrentcompetitivemarketenvironment,whilethedevelopmentofproductdiversificationfurtherenhancedthemarketcompetitivenessandservicecapabilitiesofarchitecturalglass.Floatglass:Inthecontextofmulti-dimensionalreshapingofthebusinesslandscapein2024,theCompanyfirmlyimplementedthedifferentiatedproductstrategy.Ontheonehand,itfocusedonthedomestichigh-endultra-whiteglassmarket,focusedonbuilding"BlueDiamond",ahigh-endbrandofultra-whiteglassseries,andcontinuouslyincreasedthemarketsharetobecometheleaderintheindustrysegment.Ontheotherhand,itoptimizeditsproductstructure,strengthenedmarketdevelopmentforhighvalue-addedproductssuchasindustrialglassandautomotive

glass,andconstantlyproducedandmarketedmoredifferentiatedproductssuchaslarge-sizeandultra-thickproductsandhigh-gradeproducts.ThesemeasureshaveeffectivelymitigatedtheimpactofthedownwardtrendinthearchitecturalglassmarketandenhancedprofitabilityoftheCompany.Atthesametime,theCompanycontinuedtoreducecostsandincreaseefficiencyinternally,effectivelyreducingtheprocurementcostbycoordinatingthecentralizedprocurementofbulkrawmaterials.Theproductionefficiencywasimprovedandproductioncostswerefurtherreducedbystrengtheningtheleanmanagementoffullproductionprocess.AlthoughthecoldrepairandtechnicaltransformationofChengduFloatGlassLine3andWujiangFloatGlassLine2hadacertainimpactontheCompany'sfloatglassproductioncapacityandprofitabilityin2024,theCompanystillmaintainedthestableoperationofthefloatglassbusinessasawholethroughaseriesofeffectivemeasures.ElectronicglassanddisplaybusinesssegmentAgainstthebackdropoftheprofoundevolutionofthesupplyanddemandstructureonthemarket,theCompany'selectronicglassbusinesscontinuedtostrengthenR&Dinnovationininternalmanagementanddeepenedthestrategyofcostreductionandefficiencyenhancement.Formarketing,theCompanycontinuedtoactivelyexplorenewmarketsanddevelopnewapplicationsinintelligentelectronicterminals,touchcontrolmodules,vehicle-mounteddisplays,medicalequipment,industrialautomaticcontroldisplays&commercialdisplays,smarthomeandotherfields.Althoughthesellingpricesontheelectronicglassmarketfluctuatedanddeclinedin2024,theCompany'soverallmarketshareofmedium-aluminaandhigh-aluminaelectronicglassproductsremainedstable.Fordisplaydevices,in2024,theCompanydeeplyplougheditstraditionaldominantsegmentofopticalcoatingmaterialbusiness,developingnewproductsandnewapplicationscenarios.Samplinghasbeensuccessfullycompletedandmassproductionhasstartedinsomeprojects,representingpreliminaryresults.Ontheotherhand,itcontinuedtodevelopitsvehicle-mountedcoverplatebusiness,thenewproductioncapacityprojectofvehicle-mountedAGglassandvehicle-mountedmultifunctionalcoverplatesachievedmassproductionandthesalevolumeincreasedsubstantiallycomparedwiththesameperiodlastyear.Forthevehicle-mountedtouchpanelsegment,theCompany'sproductionandsalesvolumesdeclinedcomparedwiththesameperiodlastyearduetotheshrinkingglobaldemandforconsumerelectronicsandthepopularityofin-celltouchtechnology.SolarenergybusinesssegmentIn2024,China'sphotovoltaicindustryexhibitedcharacteristicsofdeepstructuraladjustmentinsupplyanddemand.AccordingtodatareleasedbytheNationalEnergyAdministration,China'sphotovoltaicinstalledcapacityincreasedbyover27.8%year-on-year,whilephotovoltaicmoduleexportsgrewby13%year-on-year.Despitethesustainedtwo-waygrowthintheendmarket,thepricesofkeyproductsacrosstheindustrychaindeclinedsharplyyear-on-year,forcingtheindustrytoaccelerateintoacapacityoptimizationcycle.Thecurrentstageofindustrialdevelopmentismarkedbythreesignificanttrends:first,theacceleratedeliminationofoutdatedproductioncapacity;second,therapidpaceoftechnologicaliteration,withanotableincreaseinthemarketshareofN-typeproducts;andthird,intensifyingcostcompetition,withtheentireindustrychainfacinganegativeprofitdilemma.Inthefaceofthismarketenvironment,theCompany'ssolarenergybusinesssegmentwassignificantlyaffectedin2024.TheCompanyrespondedproactivelybyconductingin-depthanalysisofmarkettrendsandindustrydevelopments,promptlyadjustingitsoperatingstrategies,flexiblyregulatingproductioncapacity,enhancingproductqualitythroughprocessinnovation,andimplementingrefinedmanagementtomaximizeequipmentpotential.Italsocomprehensivelylaunchedcost-reductionandefficiency-enhancementinitiatives,whicheffectivelymitigatedpartofthepressurebroughtbythemarket.II.Othermanagementwork

In2024,byfullyimplementingthemarketpolicyof"expandingthemarket,adjustingthestructure,andcontrollingrisks"andthecostcontrolpolicyof"stabilizingproduction,improvingquality,andcontrollingcosts",theCompanyopenedupanewpathintheuncertainenvironment,vigorouslypromotedtheGroup'sdevelopmentstrategies,ensuredthesteadyimplementationofalloperationandmanagementtasks,andpromotedoperationalefficiencythroughmanagementimprovement.Inordertoensuretherapidandhealthydevelopmentofallitsindustrialsectors,theCompanysparednoefforttoensureproductionsafety,continuedtopromotedifferentiatedoperationsandthecapabilityofintelligentproduction,anddeepenedmarketdevelopment.Themultiplemeasuresittookwerelistedbelow.

1.TheCompanyenhancedeffortstoimprovemanagement-basedbenefitcreationastheCompany'sintegralsystemunderthedualcycleof"InternalImprovementandExternalExpansion"withsolidfoundationscouldeffectivelysupportitsoperation.Furthermore,theCompanycontinuouslyconductedcostmanagementinmultipleaspects,suchascostreductionandefficiencyenhancement,centralizedprocurement,strategicprocurementandengineeringconstructionplanoptimization,enhancedthecoordinationandco-developmentofitsteams,improvedefficiencyinservice,regulationanddecision-making,promotedtheGroup'sinformationmanagementandconstructionofdigitalandintelligentfactories,gaveplaytotheleadingroleofinformationinnovationintheimprovementofthecapabilitiesofmanagementandoperation,continuedtopromotemanagementbasedontheoptimizedbasicstandards,andpromotedtheconstructionofthefive-stargreenfactories.Moreover,theCompanymadeeffortstoimprovetheperformanceinsafetymanagement.Itredoubledtheeffortsofhiddendangerinvestigationandrectification,increasedsafetyandenvironmentalprotectiontrainingandeducation,andstrengthenedthesafetyfoundationforcontinuoussafeoperation.Throughtheimplementationofaseriesofprograms,methodsandmeansforinternalcontrol,theCompanyfacilitatedtheachievementoftheCompany'soperationobjectivesandtheresponsetoandremediationofriskincidentsinthebusinessprocesses.Guidedbyriskcontrolandefficiency/effectimprovementandfocusingontheGroup'sstrategiesoftheoperationobjectivesofthecurrentperiod,theCompanypromotedtheimprovementofitsmanagementmechanismsandcomprehensivelyimproveditscapabilitiesofriskcontrolandbusinessmanagement.

2.TheabilitytoconductR&Danditerationoftechnologies,techniquesandproductsisalwaysthekeyguaranteeforthesustainableandhealthydevelopmentofanenterprise.AsthecoreelementofCSGforformingtheindustrialbarrierofhigh-value-addedbusinesslines,theabilityhelpstheCompanymaintainitsindustry-leadingposition.TheCompanyhasmadeitscomprehensivelayoutfromsixperspectives,namelytheorganizationalstructureofitsR&Dsystem,intellectualpropertyrights,top-levelproductdesign,high-levelR&Dplatforms,seniortalentechelonsandthedemandforthesupportingtalentresources.Basedonthelayout,theCompanyhasformulatedtheGroup'sR&DstrategicplantoguidetheCompany'stechnologicalinnovationanditssustainabledevelopmentofproductR&D.TheCompanyhasalsopromotedtheconstructionoftheR&DsystemandstrengthenedR&Dandinnovation,asithasfacilitatedtheindustrializationofitsnewproductsandthecross-industryapplicationofitsproducts.Forexample,ithasapplieditshigh-aluminaelectronicglasstoautomobiles.

3.Energyconservationandenvironmentalprotectionarethelifelinetothesurvivalanddevelopmentofaglasscompanyandthecorefeaturesofthesocialresponsibilitiesofanenterpriseinanindustrywithhighenergyconsumption.TheCompanyhasalwaysbeenattheleadinglevelintheindustryintermsofthecontrolofenergyconsumptionandemissions.CSGtakestheleadintheindustrytorealizecomprehensiveutilizationofenergybymeansofwasteheatpowergenerationanddistributedphotovoltaicpowergeneration.Throughcomprehensiveexhaustgastreatmentsuchasdesulfurization,denitrificationanddustremoval,itachievesultra-lowemission,whichisfarlowerthanthenationalpollutantemissionpermissionvalue.Undertheconditionofthesametonnageandthesamekilnage,thecontrolofenergyconsumptionandthecontrolofemissionperunitofproductioncapacityhavealwaysbeenattheleadinglevelintheindustry.11subsidiariesofCSG,includingWujiangCSGGlassCo.,Ltd.,

TianjinCSGEnergy-SavingGlassCo.,Ltd.,XianningCSGEnergy-SavingGlassCo.,Ltd.,XianningCSGPhotoelectricGlassCo.,Ltd.,XianningCSGGlassCo.,Ltd.YichangCSGPhotoelectricGlassCo.,Ltd.,YichangCSGPolysiliconCo.,Ltd.,HebeiPanelGlassCo.,Ltd.,HebeiCSGGlassCo.,Ltd.,YichangCSGDisplayCo.,Ltd.,andSichuanCSGEnergy-SavingGlassCo.,Ltd.,weresuccessfullyincludedinthelistof“GreenFactory”announcedbytheMinistryofIndustryandInformationTechnology.

4.TheCompanyfurtherimproveditsorganisationalstructuretosafeguardtheimplementationofitsstrategicprojects.Specifically,theCompanyvigorouslypromotedorganisationaltalentdevelopment,optimizedtheorganisationalstructureandthecorrespondingstaffingandimprovedtheconstructionofthehumanresourcesystem.Moreover,theCompanyoptimizedandadjustedthefunctionalorganizationoftheheadquartersandbusinessdivisionstoenhancebusinesssupport,asitspecifiedthefunctions,posts,andstaffingofthethree-levelstructureoftheGroup'sR&DmanagementandcontinuouslypromotedtheimplementationoforganizationaloptimizationofR&Dateachlevel.Indoingso,theCompanyencouragedallsubsidiariesoftheGrouptoestablishtheirownR&Ddepartmentinagradualmanner,soastofurtherimprovetheR&DsystemoftheGroup.

5.TheCompanysteadilypromotedbrandingaccordingtoapplicablerulestoensuretheconsistencyandreputationofCSG'sbrandimageandsafeguardthedevelopmentofCSG.Itpromotedtheshootingandproductionofthehigh-qualityCCTVadvertisementfortheCSGbrandandcontinuouslystrengthenedthebrandpresence.ItdeepenedtheimplementationoftheGroup'sbrandingmanagementmechanism,establishedasupervisionmechanismandmanagementstandardsbasedonthebrandingmanagementmeasures,guidedtheGroup'smediarelationshipmaintenance,self-mediaoperationandinternalpublicitymanagementwiththeaforesaidmanagementmeasures,andfurtherimprovedthebrandingmanagementsystem.

2.Revenueandcost

(1)Constitutionofoperationrevenue

Unit:RMB

2024

MainlandChina

(2)Listoftheindustries,products,regionsorsalesmodelexceed10%oftheoperatingincomeoroperatingprofitsoftheCompany

√Applicable□Notapplicable

Unit:RMB

UnderthecircumstancesthatthestatisticalstandardsfortheCompany'smainbusinessdataadjustedinthereportperiod,theCompany'smainbusinessdataintherecentyeariscalculatedbasedonadjustedstatisticalstandardsattheendofthereportperiod

□Applicable√Notapplicable

(3)WhethertheCompany'sgoodssellingrevenuehigherthantheservicerevenue

√Yes□No

Output

Reasonsformajorchanges(over30%year-on-year)inrelevantdata

√Applicable□Notapplicable

1.Floatglass:Theincreaseintheinventoryoffloatglasswasmainlybecausethequantityofproductionwasgreaterthanthatofsalesduringtheyear.

2.Photovoltaicglass:Theincreasesintheproductionvolume,salesvolumeandinventoryofphotovoltaicglassweremainlyduetotheestablishmentofnewproductionlinesinsomesubsidiaries.

3.Electronicglass:Theincreaseintheinventoryofelectronicglasswasmainlybecausethequantityofproductionwasgreaterthanthatofsalesduringtheyear.

4.High-puritycrystallinesilicon:Thedecreasesintheproductionvolume,salesvolumeandinventoryweremainlybecausenohigh-puritycrystallinesiliconwasproducedduringtheyear.

5.Siliconwafer:Thedecreasesintheproductionvolume,salesvolumeandinventoryweremainlyduetoaweakermarketduringtheyear.

(4)FulfilmentofsignificantsalescontractsandprocurementcontractssignedbytheCompanyuptothereportperiod

√Applicable□NotapplicableFulfilmentofsignificantsalescontractssignedbytheCompanyuptothereportperiod

√Applicable□Notapplicable

Unit:RMB0,000

ChuzhouLONGiSolarTechnologyLtd.,DatongLONGiSolarTechnologyLtd.,LONGi(H.K.)TradingLimited,LONGi(KUCHING)SDN.BHD.,XianyangLONGiSolarTechnologyLtd.,JiangsuLONGiSolarTechnologyLtd.,JiaxingLONGiSolarTechnologyLtd.,Xi'anLONGiGreenBuildingTechnologyLtd.

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

FulfilmentofsignificantprocurementcontractssignedbytheCompanyuptothereportperiod

□Applicable?Notapplicable

(5)Constitutionofoperationcost

Industryandproductclassification

Unit:RMB

Unit:RMB

Note:Themaincomponentsofoperatingcostsincludematerials,laborwages,depreciation,etc.Inordertoavoidthedisclosureofbusinesssecretsanddamagetheinterestsofthelistedcompanyandinvestors,theoperatingcostsareonlyseparatedanddisclosedaccordingtothebusinesssectorandproductclassificationoftheCompany.

(6)Whethertheconsolidatedscopehaschangedduringthereportperiod

√Yes□NoSeenote9,Changesinthescopeofconsolidation,inthefinancialreportofSection10forotherreasons.

(7)Majorchangesoradjustmentinbusiness,productorserviceoftheCompanyinthereportperiod

□Applicable√Notapplicable

(8)MajorcustomersandmajorsuppliersMajorcustomersoftheCompany

Totalsalestothetopfivecustomers(RMB)

InformationofthetopfivecustomersoftheCompany

Otherstatementofmaincustomers

□Applicable√NotapplicableMajorsuppliersoftheCompany

InformationofthetopfivesuppliersoftheCompany

Otherstatementofmajorsuppliers

□Applicable√Notapplicable

3.Expenses

Unit:RMB

2024

4.R&Dexpenses

√Applicable□Notapplicable

ofextendedkilnlifespanforlarge-tonnagelines

R&DstaffoftheCompany

2024

R&DinvestmentoftheCompany

Reasonsandeffectsofmajorchangesinthecompositionofthecompany'sR&Dstaff

□Applicable√NotapplicableReasonofremarkablechangesoverthepreviousyearoftheratioofthetotalR&Dinvestmentamounttotheoperatingincome

□Applicable√NotapplicableReasonofsubstantialchangeoftheratiooftheR&Dinvestmentcapitalizationanditsreasonableexplanation

√Applicable□NotapplicablePartoftheresearchanddevelopmentprojectshavebeencompleted.

5.Cashflow

Unit:RMB

Statementonthemainfactorsinthemajorchangesofyearonyearrelevantdata

√Applicable□Notapplicable

(1)Itwasmainlyduetothedecreaseincashreceivedfromsalesofgoodsorrenderingofservices.

(2)Itwasmainlyduetothedecreaseincashpaidtoacquirefixedassets,intangibleassetsandotherlong-termassets.

(3)Itwasmainlyduetothedecreaseincashrepaymentsofborrowings.

(4)Itwasmainlyduetothechangeinnetcashflowfrominvestingactivity.Statementofthereasonsforsignificantdifferencesbetweenthenetcashflowfromoperatingactivitiesandthenetprofitoftheyearduringthereportperiod

□Applicable√Notapplicable

V.Non-mainbusinessanalysis

√Applicable□Notapplicable

Unit:RMB

Amount

VI.Assetandliabilityanalysis

1.Significantchangesinassetcomposition

Unit:RMB

Fixedassets

Theproportionofoverseasassetswasrelativelyhigh.

□Applicable√Notapplicable

2.Assetsandliabilitiesmeasuredatfairvalue

√Applicable□Notapplicable

Unit:RMB

Item

Otherchanges:

1.Otherchangesinreceivablesfinancingarecausedbychangesinhighcreditratingbillscollectedorendorsed;

2.Otherchangesininvestmentrealestatearecausedbythechangeofusingthehousesobtainedthroughindustrialcompensationforrentalpurposesinthisyear.Duringthereportperiod,whetherthecompany'smainassetmeasurementattributeschangedsignificantlyornot

□Yes√No

3.Limitedassetrightsasoftheendofthereportperiod

Unit:RMB

VII.Investment

1.Overallsituation

√Applicable□Notapplicable

2.Themajorequityinvestmentobtainedinthereportperiod

□Applicable√Notapplicable

3.Themajorongoingnon-equityinvestmentinthereportperiod

√Applicable□Notapplicable

Unit:RMB

Projectname

BaseProject

4.Financialassetsinvestment

(1)Securitiesinvestment

□Applicable√NotapplicableTherewasnosecuritiesinvestmentduringthereportperiod.

(2)Derivativeinvestment

□Applicable√NotapplicableTherewasnoderivativeinvestmentduringthereportperiod.

5.Useofraisedfund

□Applicable√NotapplicableTherewasnouseofraisedfundduringthereportperiod.VIII.Salesofmajorassetsandequity

1.Salesofmajorassets

□Applicable√NotapplicableTheCompanydidnotsellmajorassetsduringthereportperiod.

2.Salesofmajorequity

□Applicable√NotapplicableIX.Analysisofmainholdingcompaniesandjoint-stockcompanies

√Applicable□NotapplicableParticularaboutmainsubsidiariesandjoint-stockcompanieswhichhaveinfluenceontheCompany'snetprofitbyover10%

Unit:RMB

Nameofcompany

components

specialglass

Particularsaboutsubsidiariesobtainedordisposedinreportperiod

√Applicable□NotapplicablePleasereferto"1.Changesinthescopeofconsolidationduetootherreasons"underNote"IX.Changesinthescopeofconsolidation"to"SectionX.FinancialReport".DescriptionofmainholdingandshareholdingcompaniesYichangCSGPolysiliconCo.,Ltd.andDongguanCSGPV-techCo.,Ltd.sawayear-on-yeardecreaseinnetprofitmainlyduetothedeclineinproductionandsalesvolumesandunitpricesoftheirprimaryproductsandtheimpairmentprovisionsforlong-termassetsbasedontheresultsofassetimpairmenttestsduringtheyear.AnhuiCSGNewEnergyMaterialTechnologyCo.,Ltd.,XianningCSGGlassCo.,Ltd.,DongguanCSGSolarGlassCo.,Ltd.,andGuangxiCSGNewEnergyMaterialTechnologyCo.,Ltd.sawayear-on-yeardecreaseinnetprofitmainlyduetothedecreasedpricesofphotovoltaicglass.ChengduCSGGlassCo.,Ltd.sawayear-on-yeardecreaseinnetprofitmainlyduetothedecreasedpricesoffloatglass.AnhuiCSGSiliconValleyMingduMiningDevelopmentCo.,Ltd.sawayear-on-yeardecreaseinnetprofitmainlybecauseitstartedamortizingitsminingrightsfrommid-2023,andtheamortizationperiodin2024waslongerthanthatin2023.HebeiPanelGlassCo.,Ltd.sawayear-on-yeardecreaseinnetprofitmainlyduetothedecreasedpricesofelectronicglassandtheincreasedprovisionsforinventoriesduringtheyear.ShenzhenCSGAppliedTechnologyCoLtd.sawayear-on-yeardecreaseinnetprofitmainlyduetotheincreaseddeferredtaxliabilitiesasaresultofitschangedincometaxrate.X.StructuredmainbodiescontrolledbytheCompany

□Applicable√Notapplicable

1.TendencyofdevelopmentoftheindustriestheCompanyengages

Pleaserefertotherelevantcontentof"I.ParticularsabouttheindustrytheCompanyengagesinduringthereportperiod".

2.TheCompany'sdevelopmentstrategy

TheGroupwillformulatestrategicdevelopmentgoalsandimplementstrategicdevelopmentplansundertheguidanceofthenationalstrategicgoalsof"dualcarbon",withafocuson"lowcarbonandenergysaving,greenandenvironmentalprotection,scientificandtechnologicalinnovation,andintelligentmanufacturing".TheCompanyformsthethreeindustrialclustersofenergy-savingglass,electronicglassandphotovoltaicmaterials,andcreatethethreehigh-gradeproductsof"IceKirin"multi-silverlow-Eglass,"KirinKing"high-gradeelectronicglassand"BlueDiamond"ultra-whiteglass.TheCompanywillintegrateindustrialresources,strengthentheadvantageofrawmaterialresources,improvetechnologyandR&Dstrength,continuetoenhanceitscorecompetitiveness,expandmarketshareandmarketinfluence,occupyadominantpositionintheindustry,andcomprehensivelyimprovethecredibilityandinfluenceoftheCSGbrand.Also,itwillplanthelayoutoftheCSGindustryfromaglobalandmacro

perspective,acceleratethedevelopmentofnewindustriesandconsolidatetheCompany'scapabilitytoresistcyclicalrisks,andbuildCSGintoaninternationallyinfluentialenterprisegroupthatisrelatedtoboththeupstreamanddownstreamportionsoftheglassindustryandtheenergyindustry.

3.BusinessplanoftheCompanyin2025

①Strengthenthecapabilityofgroupoperationandmanagement,improvetheleveloffinemanagementandprofessionalmanagement,andpromotetheimplementationofsuchmeasuresascostreductionandefficiencyenhancementmanagement,supplychainmanagement,leanmanagement,andinternalcontrolprocessmanagementtoensurethecompletionoftheCompany'soperationandconstructionobjectivesin2025.

②BuildaninformationplatformforR&Dmanagement,improvethequalificationoftheR&DinnovationplatformofCSG,planthepipelineforthedevelopmentofthenextgenerationofnewproducts,promotetechnologicalupgradingandproductiteration,andpromotetheR&Dandindustrializationofhigh-valueproducts.

③Enhancetalentmanagement,establisharemunerationincentivesystemthatlinksremunerationwithperformance,improvetheCompany'sincentivemechanism,strengthenemployeetraining,selectandcultivatereservecadres,introducehigh-qualitytalents,andintensifythebuildingoftalentsechelon.

④Continuetodeepenmarketing,consolidatemainbusinessorders,enhancepromotionofdifferentiatedproducts,andstrengthenoverseasmarketdevelopment;

⑤Strengthenthecapitalplanning,controlcapitalrisks,expandfinancingchannels,andreducefinancingcosts.

⑥Continuetopromoteleancostmanagementandreduceproductioncostsbyimprovingyieldrateandenergyefficiencytoenhancemarketcompetitiveness.

⑦Steadilypromotethesafeconstructionandtimelyoperationofprojectsunderconstruction,andexploretherelevantindustrialchainsforbreakthroughs;and

⑧Adheretothe"1+2+5"workingapproach,improvethesafety,environmentalprotectionanddutyperformancecapabilitymanagementsystem,andcarryonwiththebuildingoftheinformatizationmanagementplatformforsafetyandenvironmentalprotectiontocomprehensivelyimprovesafetyandenvironmentalprotectionmanagement.

4.Funddemand,useplanandfundsourceIn2025,theCompany'scapitalexpenditureisexpectedtobeapproximatelyRMB2,695million,whichismainlyusedforconstructionoftheprojectoflightweight&high-permeabilitypanelforsolarenergyequipmentandcomplementarysandoreprojects,constructionoftheQinghaihigh-puritycrystallinesiliconproject,technicalupgradeandtransformationinallrelevantindustries,capacityexpansion,etc.Themainsourcesoffundsareownfundsandloansfromfinancialinstitutions.

5.Riskfactorsandcountermeasures

In2025,facingthedynamicchangesinthepoliticalandeconomiclandscapeathomeandabroadandthetaskofbuildinga"CenturyCSG",theCompanywillfacethefollowingrisksandchallenges:

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

②Theglassindustryissubjecttopricingriskscausedbyintensemarketcompetitioninsimilarproductsandcostfluctuationsinrawmaterialsandfuel.Inthephotovoltaicglassindustry,substantialproductioncapacityispendingrelease,andthemismatchbetweensupplyanddemandremainsprominent.ThishasplacedperformancepressureontheCompany'sphotovoltaicglassbusiness,ledtoalengthenedaccountsreceivablecycle,andposedseverechallengestocashflow.Thearchitecturalglassbusinessisencounteringincreasedoperationalpressureandrisinguncertaintyduetointensifiedmarketcompetition.Thefloatglassbusinessfacestheriskoftemporarilydecreaseddemandinthedownstreamarchitecturalglassmarket.Theelectronicglassbusinessisexposedtorisksfromrapidtechnologicaliterationandsignificantfluctuationsinmarketdemand.Thesolarenergybusinessfacestheriskoftemporarysupply-demandmismatchandfallingpricesduetothecontinuedreleaseofnewproductioncapacity.Tocopewiththeaforesaidrisks,theCompanywilltakethefollowingmeasures:

A.Inthephotovoltaicglasssegment,ontheproductside,theCompanywillaligndeeplywithmarketdemand,optimisetheproductstructure,continuetopromoteleanmanagementanddifferentiatedoperation,andenhanceprofitability.Onthecostside,theCompanyisfullycommittedtothestabilityoftheproductionprocessandtheeffectiveimprovementofproductquality,andwillunswervinglyandcontinuouslypromotecostreductionandefficiencyenhancementandadvancespecialcostcontrolcampaigns,soastostrengthenthecorecompetitiveness.Onthesalesside,theCompanywillactivelyexploremarkets,integrateintoexternalmarketcycles,andestablishstrongconnectionswithoverseasmarketstoensuretimelyfundrecoveryandsecureprofitmargins.Itwillalsoincreaseeffortstodevelophigh-qualitykeycustomers,solidifypartnerships,enhanceindustrycompetitiveness,andmaintaincontrollablerisklevels.B.Inthearchitecturalglasssegment,theCompanywillfocusonreducingthethreeconsumptionindicatorsattheproductionend,andimplementsystem-levelintelligentupgradestostreamlinelabourcosts,optimisemateriallossrates,andmanageenergyconsumptionperunitoutput,therebycomprehensivelyimprovingtotal-factorproductivityandresourceintensification.Meanwhile,theCompanywillexpanditspresenceinhigh-endandoverseasmarketstoproactivelyrespondtomarketchanges.TheCompanywillcontinuouslydeepenmarketdevelopment,refinemarketlayout,andincreasemarketshare.FurtherinvestmentwillbemadeinR&Dtosupportnewproductdevelopmentandapplicationexpansioninemergingsectorsandexpandtheapplicationtrack.TheCompanywillenhanceservicecapabilitiesandgivefullplaytoquality,technologyandbrandadvantages,andatthesametime,maintaintheadvantageouspositionoftheCompanythroughmarket-orientedextensionoftheindustrialchain.C.Inthefloatglasssegment,theCompanywillpersistinpursuingdifferentiatedoperations,refiningproductstructure,andboostingtheshareofhigh-value-addedofferings.Additionally,throughtechnologicalupgrades,theCompanyaimstoenhanceproductionefficiencyandlowermanufacturingcosts,therebyconsistentlyenhancingitscompetitiveedgeintheindustry.D.Intheelectronicglassanddisplaysegment,facingfiercemarketcompetition,theCompanywilladheretoaprudentbusinessstrategyandcontinuetostrengthenCSG'sbrandpresenceforelectronicglass.TheCompanywillincreaseR&Dinvestment,continuouslyimproveproductcompetitiveness,raisetheproportionofmid-to-high-endproductsales,significantlyenhancecustomerrecognitionofCSG'sbrandinhigh-endmarkets,andstrivetoincreasesharesinmid-to-high-endmarkets.Meanwhile,theCompanywillalsocontinuetoexpandintonewmarketsanddevelopnewapplicationstomaintainaleadingedgeinthefiercelycompetitivelandscape.E.Inthesolarenergysegment,theCompanywillcomprehensivelystrengthentheintegrationofresourcesacrosstheindustrychain,closelytrackmarketdynamics,andrespondswiftlytokeysupplychainindicators.Itwillcloselymonitorpricetrends,supply-demandrelationships,andchangesinterminaldemandacrossupstreamanddownstreamprocurementandsalessegments.ThroughincreasedinvestmentinR&D,theCompanyaimstobuildacoretechnologypatentpoolandimproveoperationalmanagementcapabilitiestoensurecompetitivenessinnichemarkets.Atthesametime,theCompanywillcontinuetoimplementthecostreductionandefficiencyenhancementstrategy,

promoteenergy-savingandconsumption-reductionmeasures,andstrengthencostcontrol.TheCompanywillprogressivelyupgradeequipmentthroughintelligenttransformationandphasedreplacement,establishaflexibleandadaptiveproductionsystem,andscientificallymanageinventorylevels.Byleveragingthetechnicalandcostadvantagesofnewproductionlinesandtheefficientandprofessionaloperationalcapabilitiesofteams,theCompanywillcontinuetoconsolidateandenhanceitsleadershippositionintheindustry.

③Riskoffluctuationofforeignexchangerate:Atpresent,nearly7.76%oftheoperatingrevenueoftheCompanyisfromoverseas,andinthefuture,theCompanywillfurtherdevelopoverseasbusiness.Therefore,thefluctuationofexchangeratewillbringcertainrisktotheoperationoftheCompany.Tocopewithsuchrisk,theCompanywillsettleexchangeinatimelymanner,andusesafeandeffectiveriskevadinginstrumentandproducttorelativelylockexchangerate,thusreducingtheriskcausedbyfluctuationofexchangerate.

XII.Receptionofresearch,communicationandinterview

□Applicable√NotapplicableNoreceptionofresearch,communication,interviewandotheractivitiesoccurredduringthereportingperiod.

XIII.FormulationandimplementationofmarketvaluemanagementsystemandvaluationimprovementplanWhetherthecompanyhasestablishedamarketvaluemanagementsystem.

□Applicable√Notapplicable

Whetherthecompanyhasdisclosedplanstoraiseitsvaluation.

□Applicable√NotapplicableXIIII.Implementationofthe"QualityandEarningsDualImprovement"ActionPlanIndicatewhethertheCompanyhasdisclosedthe"QualityandEarningsDualImprovement"ActionPlan.

□Yes√No

SectionIV.CorporateGovernance

1.BasicSituationofCorporateGovernance

InstrictcompliancewiththerequirementsoftherelevantlawsandregulationincludingTheCompanyLaw,SecuritiesLawandRuleofGovernanceforListedCompany,theCompanyhasbeenputtingeffortsinimprovingthecorporategovernance,strengtheningmanagementofinformationdisclosure,regulatingoperationactivitiesandestablishingamoderncorporatesystem.Atpresent,thesystemforcorporategovernanceoftheCompanyisbasicallysound,operationisregulated,corporategovernanceisconsummated,whichaccordwiththerequirementsofrelevantdocumentsoncorporategovernanceoflistedcompanyissuedbyCSRC.Accordingtothe"CompanyLaw"andotherrelevantlawsandregulationsandthe"ArticlesofAssociation",theCompanyhasestablishedandimprovedarelativelystandardizedcorporategovernancestructure,andformedadecision-makingandoperationmanagementsystemwiththeshareholders'meeting,theboardofdirectors,theboardofsupervisorsandtheCompany'smanagementasthemainstructure.Thepowerorgans,decision-makingbodies,supervisionbodiesandmanagershaveclearrightsandresponsibilities,performtheirrespectivedutiesandeffectivelymonitorandbalance,andperformvariousdutiesstipulatedinthe"CompanyLaw"and"ArticlesofAssociation"inaccordancewiththelaw.Accordingtothe"ArticlesofAssociation"andotherrelevantcorporategovernanceregulations,theCompanyhasformulatedthe"ProcedureRulesforShareholders'Meeting","ProcedureRulesfortheBoardofDirectors","ProcedureRulesfortheSupervisoryCommittee","GeneralManager'sWorkRules"andotherrelevantsystems,whichprovidesaninstitutionalguaranteeforthestandardizedoperationofthecorporategovernancestructureoftheCompany.TheCompany's"ThreeCommittees"(GeneralMeetingofShareholders,BoardofDirectorsandBoardofSupervisors)operateinastandardizedmanner,andtheproceduresforconveningandconveningmeetingscomplywithrelevantregulations.Thecurrentdirectors,supervisors,andseniormanagementareabletoactivelyandeffectivelyfulfillrelevantresponsibilitiesandobligations.Independentdirectorshaveputforwardopinionsorsuggestionsonthecompany'sdevelopmentdecisions.TheCompanyrespectsandlistenstotheopinionsandsuggestionsofindependentdirectors,andimplementstheminaccordancewiththefinalresolutionsoftheboardofdirectorsandtheshareholders'meeting,playingapositiveroleinsafeguardingtheinterestsofthecompanyandsmallandmedium-sizedshareholders.Atthesametime,theCompanyalsoprovidessufficientprotectionfortheperformanceofindependentdirectorsandsupervisors.TheBoardofDirectorshasestablishedfourspecialcommittees,namely,theStrategyCommittee,theAuditCommittee,theNominationCommittee,andtheRemunerationandEvaluationCommittee,toassisttheBoardofDirectorsinperformingrelevantfunctionsandprovideprofessionalsuggestionsandopinionsfortheBoardofDirectors'decision-making.TheBoardofDirectorsandtheBoardofSupervisorsoftheCompanyreporttotheGeneralMeetingofShareholdersontheperformanceoftheirdutiesbydirectorsandsupervisors,andtheindependentdirectorsmakeadebriefingreporttotheGeneralMeetingofShareholders.Theseniormanagementpersonnelhaveacleardivisionoflabor,clearresponsibilitiesandauthorities,andoperateincompliancewithlawsandregulations.InstrictaccordancewiththerequirementsoftheListingRulesofShenzhenStockExchangeandotherrelevantlawsandregulations,theCompanyearnestlyperformstheobligationofinformationdisclosuretoensuretheauthenticity,accuracy,integrityandtimelinessofinformationdisclosure.TheCompanyearnestlyfulfillsitsinformationdisclosureobligationsinstrictaccordancewiththerequirementsoftheShenzhenStockExchangeListingRulesandotherrelevantlawsandregulationstoensurethetruthfulness,accuracy,completenessandtimelinessofinformationdisclosure.ShanghaiSecuritiesNews,SecuritiesDailyandJuchaoWebsite(www.cninfo.com.cn)aredesignated

mediafortheCompany'sinformationdisclosuretoensurethatallshareholdersoftheCompanyhaveequalaccesstotheCompany'sbusinessinformation.TheCompanyhasestablishedtheInformationDisclosureManagementSystemandpromptlyimproveditinaccordancewithnewlyissuedlawsandregulations,clarifiedthestandardsofinsiderinformation,andestablishedinsideinformationinsiderregistrationsystemandrecordmanagementsystem.InordertofurtherstrengthentheCompany'sinternalinformationdisclosurecontrol,enhancethedisclosureconsciousnessofrelevantpersonnel,andimprovethequalityofcorporateinformationdisclosure,in2016,theCompanysetupaninformationDisclosureCommittee,andformulateRulesfortheimplementationoftheinformationdisclosureCommittee.Duringthereportperiod,theCompanydisclosedinformationwithfacticity,completeness,timelinessandfairness,strictlyfulfilledtheresponsibilitiesandobligationsofinformationdisclosureoflistedcompaniestoensurethatinvestorsareabletokeepabreastoftheCompany'soperationanddevelopmentstrategies.Therewasnoregulatorypunishmentcausedbyinformationdisclosureinthereportperiod.Meanwhile,theCompanydeliveredtheInsideInformationInsiderTabletoShenzhenStockExchangewhensubmittingperiodicreports.TheCompanyhasseriouslyimplementedtherequirementsoftherelevantregulatorytocashdividends.TheCompanyformulatedtheReturnplanforShareholdersofCSGHoldingCo.,Ltd.intheNextThreeYears(2022-2024)accordingtorelevantregulationsoftheNoticeofFurtherImplementationofCashDividendsoftheListedCompanies(ZJFNo.:[2012]37)andtheRegulatoryGuidelinesofListedCompaniesNo.3-CashDividendsofListedCompaniesissuedbyChinaSecuritiesRegulatoryCommission,furtherimprovedtheCompany'sdecision-makingandsupervisionmechanismfordistributionofprofits,andprotectedtheinterestsofinvestors.Duringthereportperiod,itdidnotexistthattheCompanyprovidedtheundisclosedinformationtothelargestshareholder.Anditdidnotexistthatthenon-operatingfundofalistedcompanywasoccupiedbythelargestshareholderanditsaffiliatedenterprises.Whethertheactualconditionofcorporategovernanceismateriallydifferentfromthelaws,administrativeregulationsandtheprovisionsonthegovernanceoflistedcompaniesissuedbytheCSRC

□Yes√NoTheactualconditionofcorporategovernanceisnotmateriallydifferentfromlaws,administrativeregulationsandtheprovisionsonthegovernanceoflistedcompaniesissuedbytheCSRC.II.IndependencyoftheCompanyrelativetothelargestshareholderinaspectofbusinesses,personnel,assets,organizationandfinanceDuringthereportperiod,theCompanyhasbeenabsolutelyindependentinbusiness,personnel,assets,organizationandfinancefromitslargestshareholder.TheCompanyhasanindependentandcompletebusinesssystemandindependentmanagementcapability.

1.Intermsofbusiness:TheCompanyownsindependentpurchaseandsupplysystemoftherawresources,completeproductionsystems,independentsalesystemandcustomers.TheCompanyiscompletelyindependentfromthelargestshareholderinbusiness.ThelargestshareholderanditssubsidiariesdonotengageanyidenticalbusinessorsimilarbusinessastheCompany.

2.Intermsofpersonnel:TheCompanyestablishedintegratedmanagementsystemoflabor,personnel,salariesandsocialsecurity,whichwereabsolutelyindependentfromitsholdingshareholder's.Personnelofthemanagers,personinchargeofthefinancialandotherexecutivemanagersareobtainedremunerationfromtheCompanysinceondutyintheCompany,andneverreceivedremunerationortakepart-timejobsinthelargestshareholder’companyandotherenterprisescontrolledbythelargestshareholder.TherecruitmentanddismissalofDirectorsareconductedthroughlegalprocedureandthemanagerhasbeenappointedordismissedbytheBoardofDirectors.TheBoardofDirectorsandtheShareholders'GeneralMeetinghavenotreceivedanyinterferenceofdecisionsonpersonnel

appointmentandremovalfromthelargestshareholder.

3.Intermsofasset:theCompanyisabletooperatebusinessindependentlyandenjoysfullcontrolovertheproductionsystem,auxiliaryproductionsystemandfacilities,landuseright,industrypropertyandnon-patenttechnologyownedorusedbytheCompany.Thelargestshareholderhasneveroccupied,damagedorintervenedtooperationontheseassets.

4.Intermsoforganization:TheCompanypossessedsoundcorporategovernancestructure,establishedShareholders'GeneralMeeting,BoardofDirectors,SupervisoryBoard,appointedSeniormanagement,andfixedrelatedfunctiondepartments.TheCompanyhadbeentotallyindependentfromitslargestshareholderinorganizationstructure.TheCompanyhasitsownofficeandproductionsitesthataredifferentfromthoseofthelargestshareholder.ThelargestshareholderhasnotinanywayaffectedtheindependenceoftheCompany'soperationandmanagement.

5.Intermsoffinance:TheCompanyhassetupindependentfinancialdepartment,establishedindependentaccountingcalculationsystemandfinancialmanagementsystem(includedmanagementsystemofitssubsidiaries).ThefinancialpersonneloftheCompanydidn'ttakepart-timejobsinunitsofthelargestshareholderoritssubordinateunits.TheCompanyhasindependentbankaccounts,separatedfromthelargestshareholder.TheCompanyisindependenttaxpayer,paidtaxesindependentlyaccordingthelawsanddidn'tpaymixedtaxeswiththelargestshareholder.Thefinancialdecision-makingoftheCompanywasindependent,andtheuseandmanagementoffundswereindependent.TheCompanyneverofferedguaranteetotheirlargestshareholderanditssubordinateunitsandotherrelatedparty.ThelargestshareholderanditsrelatedhaveneveroccupiedordisguisedlyoccupiedthecapitaloftheCompany.III.Horizontalcompetition

□Applicable√Notapplicable

IV.Informationontheannualgeneralmeetingandextraordinarygeneralmeetingheldduringthereportperiod

1.TheGeneralMeetingofShareholdersduringthereportperiod

Sessionofmeeting

2.Thepreferenceshareholderswhosevotingrightshavebeenrestoredrequesttheconveningofanextraordinarygeneralmeeting

□Applicable√Notapplicable

V.Directors,supervisorsandseniorexecutives

1.Basicinformation

Name

Duringthereportperiod,whethertherewasanyresignationofdirectorsandsupervisorsanddismissalofseniorexecutivesduringtheirtermsofoffice

√Yes□No

OnSeptember13,2024,theBoardofDirectorsoftheCompanyreceivedawrittenresignationreportfromMs.ChenChunyan,secretaryoftheBoardofDirectorsoftheCompany,whoappliedforresignationfromthepositionofSecretaryoftheBoardofDirectorsoftheCompanyduetoworkadjustment.

Changesindirectors,supervisorsandseniorexecutivesofthecompany

√Applicable□Notapplicable

Name

2.Post-holding

Majorprofessionalbackgroundsandworkingexperienceofdirectors,supervisorsandseniorexecutivesandtheirmajorresponsibilitiesintheCompanyatpresentChenLin:Atpresent,sheisChairmanoftheSupervisoryCommitteeofForeseaLifeInsuranceCo.,Ltd.andChairmanoftheBoardoftheCompany.ShenChengfang:HetookthepostsofChiefActuaryofPingAnLifeInsuranceCompanyofChina,Ltd.andChiefActuaryandDeputyGeneralManagerofForeseaLifeInsuranceCo.,Ltd.Atpresent.HeisGeneralManagerandExecutiveDirectorofForeseaLifeInsuranceCo.,Ltd.,andDirectoroftheCompany.ZhuQianyu:Atpresent,sheisanassociateprofessorandasupervisorofmastersattheRenminUniversityofChinaandaresearcherattheInstituteforRuralEconomyandFinance,InstituteforNationalDevelopmentandStrategies,andInstituteforCarbonPeakandNeutralityoftheRenminUniversityofChina.ShehasundertakenmorethantenresearchprojectsfundedbytheNationalNaturalScienceFoundationofChina,theNationalSocialScienceFundofChina,theSocialScienceFundofBeijing,theNationalDevelopmentandReformCommission,theMinistryofScienceandTechnologyofthePeople'sRepublicofChina,andtheMinistryofIndustryandInformationTechnologyofthePeople'sRepublicofChina,andhadover50paperspublishedbyforeignSSCIandSCIjournalsanddomesticjournals.Additionally,herscientificresearchachievementswonthefirst,second,andthirdprizesforsocialscienceresearchachievementsfromtheNationalEthnicAffairsCommissionofthePeople'sRepublicofChina,thethirdprizeforexcellentresultsfromtheNationalBureauofStatistics,thesecondprizeinthe13thBeijingOutstandingAchievementAwardinPhilosophyandSocialScience,andthethirdprizeintheAwardforExcellentAchievementsinScientificResearchinInstitutesofHigherEducationoftheMinistryofEducation(HumanitiesandSocialScience).SheisservingasaprojecttrainingandevaluationexpertattheWorldBank,theNationalRuralRevitalizationAdministration,andtheHeadOfficeofAgriculturalBankofChina,andarevieweroftheNationalNaturalScienceFoundationofChina.SheisalsoIndependentDirectorofChongqingBreweryCo.,Ltd.,BankofGuiyangCo.,Ltd.,andtheCompany.ZhangMin:Heservedasalecturer,anassociateprofessor,asupervisorofdoctors,andDeputyDirectoroftheDepartmentofAccountingofRenminBusinessSchoolattheRenminUniversityofChina,aswellasIndependentDirectorofBeijingSPCEnvironmentProtectionTechCo.,Ltd.Atpresent,heisaprofessor,asupervisorofdoctors,andDirectoroftheDepartmentofAccountingofRenminBusinessSchoolattheRenminUniversityofChina.Concurrently,heisIndependentDirectorofSDICCapitalCo.,Ltd.,BYDCo.,Ltd.,andtheCompany.ShenYunqiao:HeservedasanassistantprofessorattheFacultyofLaw,MacauUniversityofScienceandTechnology,alegaladviserforGuangzhouNanshaNewZoneandtheChina(Guangdong)PilotFreeTradeZoneNanshaArea,andIndependentDirectorofGuangdongDelianGroupCo.,Ltd.Atpresent,heisanassociateprofessorandasupervisorofdoctorsattheFacultyofLawandDirectoroftheResearchCentreforArbitrationandDispute

Resolution,MacauUniversityofScienceandTechnology.HeisalsoIndependentDirectoroftheCompany.Concurrently,heisIndependentDirectorofShenzhenUtimesIntelligentEquipmentCompanyLimitedandHunanNucienPharmaceuticalCo.,Ltd.,DirectoroftheCommercialLawInstituteofChinaLawSocietyandLegislativeCouncilInstituteofChinaLawSociety,anoff-campussupervisorofpostgraduatesandaresearcheroftheAsia-PacificInstituteofLaw,RenminUniversityofChina,DeputyDirectoroftheAsia-PacificArbitrationResearchCommitteeoftheAsia-PacificInstituteofLaw,RenminUniversityofChina,anexportoftheExpertPoolforOffshoreServicesofPazhouArtificialIntelligenceandDigitalEconomyLawIdentificationandCommercialMediationCentre,HaizhuDistrict,Guangzhou,DeputySecretaryGeneraloftheLawCommitteeoftheCouncilforthePromotionofGuangdong-HongKong-MacaoCooperation,amemberofthe100-MemberGroupoftheShandongForeignArbitrationServiceoftheDepartmentofJustice,Shandong,ViceChairmanofMacauAssociationforLegalProfessionals,anarbitratoroftheConsumerMediationandArbitrationCentre,MacaoSARGovernmentConsumerCouncil,andViceChairmanofRenminUniversityofChinaAlumniAssociationofMacao.Moreover,heisanarbitratorofmorethan20arbitrationinstitutions,includingtheChinaInternationalEconomicandTradeArbitrationCommission,BeijingArbitrationCommission,ShanghaiInternationalArbitrationCentre,ShanghaiArbitrationCommission,ShenzhenCourtofInternationalArbitration.GuangzhouArbitrationCommission,ZhuhaiCourtofInternationalArbitration,FoshanArbitrationCommission,HainanInternationalArbitrationCourt,NanjingArbitrationCommission,QingdaoArbitrationCommission,andXi'anArbitrationCommission.ChengJinggang:HetookthepostsofSeniorCreditAnalystoftheFixedIncomeDepartmentofFundeSinoLifeInsuranceCo.,Ltd.andSeniorManageroftheCreditEvaluationDepartmentofSinoLifeAssetManagementCo.,Ltd.Atpresent,heisJointDirectoroftheAssetManagementCentreofForeseaLifeInsuranceCo.,Ltd.andDirectoroftheCompany.YaoZhuanghe:HetookthepostsofDeputyDirectoroftheDepartmentofFoodScienceandEngineeringatSouthChinaUniversityofTechnology,DeputyGeneralManagerandGeneralManagerofGuangdongUnitedFoodEnterpriseCentre,DirectorofGuangdongYuehuaInternationalTradeGroup,DeputyGeneralManagerofGuangdongGuangyeEconomicDevelopmentGroup,DirectorandGeneralManagerofGuangdongGuangyeInvestmentConsultingCo.,Ltd.,DirectorandDeputyPartyCommitteeSecretaryofGuangdongGuangyeEnvironmentalConstructionGroup(formerGuangdongGuangyeRealEstateGroup).Atpresent,heisDirectoroftheCompany.ChengXibao:ShetookthepostsofManager,VicePresident,andExecutiveVicePresidentoftheFinancialDepartmentandPresidentAssistant,VicePresident,andSeniorVicePresidentofShenzhenBaonengInvestmentGroupCo.,Ltd.,DirectorofForeseaLifeInsuranceCo.,Ltd.,SupervisorofGuizhouBaonengAutomobileCo.,Ltd.,VicePresidentofBaonengMotorGroupCo.,Ltd.,andExecutiveVicePresidentofBaonengCityDevelopmentandConstructionGroupCo.,Ltd.Atpresent,sheisSeniorVicePresidentofShenzhenBaonengInvestmentGroupCo.,Ltd.,SupervisorofXinjiangQianhaiUnitedProperty&CasualtyInsuranceCo.,Ltd.,andDirectorofBaonengMotorGroupCo.,Ltd.,QorosAutomobileCo.,Ltd.,ShenzhenBaonengTravelCo.,Ltd.,andtheCompany.LiJianghua:HetookthepostsofAssistantGeneralManageroftheOperationServiceDepartmentandDeputyGeneralManagerofthePublicDevelopmentDepartmentoftheInformationManagementCentreofForeseaLifeInsuranceCo.,Ltd.,DeputyGeneralManageroftheITDepartmentofXinjiangQianhaiUnitedProperty&CasualtyInsuranceCo.,Ltd.,andGeneralManageroftheIntegratedFinancialDevelopmentDepartmentoftheInformationManagementCentreofForeseaLifeInsuranceCo.,Ltd.Atpresent,heisChairmanoftheSupervisoryCommitteeandDirectoroftheInformationManagementDepartmentoftheCompany.MengLili:Atpresent,sheisDeputyDirectoroftheHumanResourcesCentre,GeneralManageroftheOfficeoftheBoardofDirectorsandEmployeeSupervisorofForeseaLifeInsuranceCo.,Ltd.,andSupervisoroftheCompany.DaiPingsheng:HetookthepostsofFinancialManagerofDongguanCSGSolarGlassCo.,Ltd.,DeputyManager,

AssistantDirectorandDeputyDirectoroftheFinancialManagementDepartmentofCSG,andVicePresidentoftheArchitecturalGlassDivisionofCSG.Atpresent,heisAssistantPresident,DirectoroftheStrategicInvestmentDepartment,andEmployeeSupervisoroftheCompany.HeJin:HetookthepostsofGeneralManagerofShenzhenCSGFloatGlassCo.,Ltd.,VicePresidentofFloatGlassDivision,GeneralManagerofDongguanCSGSolarGlassCo.,Ltd.,GeneralManagerofChengduCSGGlassCo.,Ltd.,GeneralManagerofQingyuanCSGEnergySavingNewMaterialsCo.,Ltd.,AssistantPresidentoftheCompanyandPresidentofFlatGlassDivision,andVicePresidentoftheCompany.Atpresent,heisSecretaryofthePartyCommittee,ActingChiefExecutiveOfficer,ExecutiveVicePresident,andChairmanoftheManagementCommitteeoftheCompany.WangWenxin:ShetookthepostsofAssistantPresident,DirectoroftheFinancialManagementDepartment,andExecutiveVicePresidentofCSG.Atpresent,sheisVicePresidentandChiefFinancialOfficeroftheCompany.

XuLei:FormeranalystofDagongInternationalCreditEvaluationCo.,LTD.,deputydirectorofRiskcontrolofAssetManagementCenterofForeseaLifeInsuranceCo.,LTD.,securitiesaffairsrepresentativeofChinaSouthernGlassGroupCo.,LTD.,deputydirectoroftheOfficeoftheBoardofDirectors;Atpresent,heisSecretaryoftheBoardofDirectorsandDirectoroftheOfficeoftheBoardofDirectorsoftheCompany.Post-holdinginshareholder'sunit

√Applicable□Notapplicable

Name

Post-holdinginotherunits

√Applicable□Notapplicable

ShenzhenUtimesIntelligentEquipmentCo.,ltd.

PunishmentofsecuritiesregulatoryauthorityinthelastthreeyearstotheCompany'scurrentandretireddirectors,supervisorsandseniormanagementduringthereportperiod

□Applicable√Notapplicable

3.Remunerationofdirectors,supervisorsandseniorexecutives

Decision-makingprocedures,recognitionbasisandpaymentfordirectors,supervisorsandseniorexecutives

1.Decision-makingprocedures:Theallowancesforindependentdirectors,externaldirectorsfromnon-shareholder'sunitareplannedandproposedbytheRemuneration&AssessmentCommitteeoftheBoardandapprovedbytheShareholders'GeneralMeetingafterdeliberationoftheBoard.RemunerationforseniorexecutivesisproposedbytheRemuneration&AssessmentCommitteeoftheBoardanddecidedbytheBoardafterdiscussion.

2.Confirmationbasisofremuneration:TheallowancesforindependentdirectorsandexternaldirectorsareconfirmedbasedonindustrystandardsandtherealsituationoftheCompany.Theremunerationforseniorexecutivesimplementsfloatingrewardmechanismwithreferencetobasicsalaryandbusinessperformance.Bonusforperformancerewardsiswithdrawalbyproportionquarterlyaccordingtoreturnonequityandbasedonthetotalnetprofitaftertaxation.

3.Actualremunerationpayment:TheallowancesforeachoftheCompany'sindependentdirectors,externaldirectorfromnon-shareholder'sunitareRMB0.3millionperyear,paidbyactualmonthofservice.Thetotalremunerationfordirectors,supervisorandseniorexecutivesinthereportperiodwasRMB14.5412million.Remunerationofdirectors,supervisorsandseniorexecutivesofthecompanyduringthereportperiod

Unit:RMB0,000

LiJianghua

Otherinformationnote

□Applicable√Notapplicable

VI.Directors'performanceofdutiesduringthereportperiod

1.Boardofdirectorsinthereportperiod

NinthBoardofDirectors

2.Attendanceofdirectorsattheboardofdirectorsandshareholders'meeting

NinthBoardofDirectors

Attendanceofdirectorsattheboardofdirectorsandshareholders'meeting

NotetofailuretoattendtheboardmeetingsuccessivelytwiceNotapplicable

3.ObjectionsraisedbydirectorsonmattersrelatedtotheCompany

WhetherdirectorsraisedanyobjectiontotherelevantmattersoftheCompany

√Yes□No

4.Othernotestodutyperformanceofdirectors

Whetherthedirectors'suggestionsontheCompanyhavebeenadopted

√Yes□NoNotestotheadoptionoforafailuretoadoptdirectors'suggestionsontheCompanyDuringthereportperiod,thecurrentdirectorsoftheCompanystrictlyfollowedtheCompanyLaw,SecuritiesLaw,ShenzhenStockExchangeListingRules,GuidelinesforSelf-disciplineandSupervisionofListedCompaniesNo.1-StandardizedOperationofListedCompaniesontheMainBoard,Measuresfortheadministrationofindependentdirectorsoflistedcompaniesandotherlawsandregulations,aswellastheArticlesofAssociationandotherrelevantsystems,toattendtheBoardofDirectorsandGeneralMeetingofShareholdersoftheCompany,conscientiouslyperformduties,andprovidecommentsorsuggestionsondecisionsfortheCompany'sdevelopment.TheCompanyrespectedandlistenedtodirectors'commentsandsuggestionsandimplementedthemaccordingtothefinalresolutionsoftheBoardofDirectorsandtheGeneralMeetingofShareholders.

VII.DutyperformanceofspecialcommitteesundertheBoardofDirectorsinthereportperiod

NameoftheCommittee

approved.

VIII.WorkSummaryoftheSupervisoryCommittee

DidtheSupervisoryCommitteefindanyriskinvolvedinperformingthesupervisionactivitiesinthereportperiod

□Yes√NoTheSupervisoryCommitteehadnoobjectiontothesupervisionmattersduringthereportperiod.

IX.Employees

1.Number,ProfessionalCompositionandEducationBackgroundofEmployees

Salesman

2.Staffremunerationpolicy

In2024,theCompanycontinuedtoemphasizetheprincipleof"PerformanceOrientation"incompensationmanagement,strengthenedtheapplicationoforganizationalperformanceresultsandindividualperformanceresults,andadvocatedthatsalaryincentivesshouldbeinclinedtohigh-performingorganizations.

3.StafftrainingplanTheCompanyhasalwaysattachedgreatimportancetothetalentteamconstructionandstafftraininganddevelopment.WithintheGroup'sHumanResourcesDepartment,dedicatedtrainingmoduleshavebeenestablished;andwithinsubsidiaries'humanresourcesdepartments,trainingpostsaresetup.Anddedicatedstaffandfundsareearmarkedtosupportthegrowthandliteracyenhancementofemployees.TheCompanyhasestablishedtraininganddevelopmentsystemsforemployeesatdifferentlevels,includingthe"NavigationSeries"designedformanagementacrossdifferenttiersandthe"StarPlan"aimedatnurturingtalentfromcampusrecruitstoelites.Additionally,ithasdevelopedpersonalizedtraininganddevelopmentprogramsfordiverseprofessionals,withadjustmentsmadetothetrainingplanaccordingtothebusinessplaneveryyear.Thisapproachaimstostimulatethedriveofemployees,enhancethecompetitivenessoftheenterprise,andprovideastrongguaranteeforthedevelopmentofCSGGroup.In2024,theCompanycontinuedtoadvancetheiterativeupgradeofthe"NavigationSeries"developmentsystemandlaunchedadedicated"EscortInitiative",focusingonenhancingthecorecompetenciesofnewlyappointedseniormanagementpersonnel.Throughasystematicempowermentprogram,strategicthinking,riskcontrol,andteamleadershipcapabilitieswerestrengthened,furthersolidifyingthefoundationfortheGroup'sechelonmanagementconstruction.Intermsofnext-generationtalentdevelopment,the"StarPlan",theGroup'ssignaturecampusrecruitmentinitiative,enteredits17thyearofimplementation.Positionedaroundthetri-dimensionalapproachof"Inspire?Integrate?Empower",theprogramintroducedinnovativemodulessuchasexecutivedialoguesandcross-generationalexperienceinheritance,significantlyimprovingthejobalignmentandculturalintegrationofyoungemployees.Forthefirsttime,theCompanyalsoimplementedasystematicenhancementinitiativeforpreviouscampusrecruitsandestablishedalong-termdevelopmentmechanismthroughworkreporttracking,specialactivityassessments,andempowermenttraining,achievingaclosed-loop,full-cycletalentmanagementprocess.In2025,theCompanywillcontinuetodeepentheimplementationanditerationofthe"NavigationSeries"and"StarPlan"withafocusonempoweringkeytalentsandupgradingthedigitallearningplatform.Itwillcontinuously

optimizetheeffectivenessofthetalentsupplychainandprovidesustainableorganizationalmomentumforachievingstrategicobjectives.

4.Laboroutsourcing

□Applicable√NotapplicableX.ProfitDistributionandReserveCapitalization

Preparation,implementationoradjustmentofthepolicyforprofitdistribution,especiallythepolicyforcashdividenddistributioninthereportperiod

√Applicable□NotapplicableTheprofitdistributionplanfor2023wasapprovedbytheAnnualGeneralShareholders'Meetingof2023heldon20June2024whichdistributeddistributingcashdividendofRMB2.5(taxincluded)forevery10sharestoallshareholders.NoticeofthedistributionwaspublishedonChinaSecuritiesJournal,SecuritiesTimes,ShanghaiSecuritiesNews,SecuritiesDailyandJuchaoWebsite(www.cninfo.com.cn)on9July2024,andtheprofithadbeendistributed.

Specialexplanationoncashdividendpolicy

TheCompanygainsprofitsinthereportperiodandtheretainedprofitoftheparentcompanyispositivebutnoplanofcashdividendisproposed

□Applicable√NotapplicableProposalofprofitdistributionpreplanorshareconversionfromcapitalpublicreserveinthereportperiod

√Applicable□Notapplicable

Ifthecompany'sdevelopmentstageisnoteasytodistinguishbuttherearemajorcapitalexpenditurearrangements,whentheprofitisdistributed,theproportionofcashdividendsinthisprofitdistributionshouldbeatleast20%.

XI.ImplementationoftheCompany'sEquityIncentivePlan,EmployeeStockOwnershipPlanorOtherEmployeeIncentiveMeasures

□Applicable√NotapplicableDuringthereportperiod,theCompanyhadnoequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresandtheimplementation.

XII.ConstructionandImplementationoftheInternalControlSystemduringtheReportingPeriod

1.ConstructionandImplementationoftheInternalControlSystemDuringthereportperiod,theCompanyestablishedasoundandcompleteinternalcontrolmanagementsysteminaccordancewiththerequirementsoftheCompanyLaw,theSecuritiesLaw,theBasicNormsforEnterpriseInternalControlandotherinternalcontrolregulatoryrules,orientedbyriskmanagement,andoperatediteffectively.ItstrengthenedandstandardizeditsinternalcontrolwhichensuredthestandardizedoperationoftheCompanyandimprovedthemanagementlevelandefficiencyoftheCompany,promotingthesustainabledevelopmentoftheCompanyandprotectingthelegitimaterightsandinterestsofinvestors.

2.Particularcasefoundinvolvingmaterialdefectsintheinternalcontrolduringthereportingperiod

□Yes√No

XIII.ManagementandControloftheSubsidiariesduringtheReportPeriod

Duringthereportperiod,byestablishinganeffectiveinternalcontrolmechanismandimplementingtheinternalcontrolmanagementplan,theinternaloperationsupervisionofsubsidiarieswasstrengthened;byestablishingasoundinternalcontrolsystemofsubsidiaries,theimplementationandcontinuousimprovementwaspromoted;bycarryingoutprocessmonitoringandspecialevaluation,theprocessriskmanagementofsubsidiarieswasstrengthened;byorganizingtheinternalcontrolpublicityandtrainingofsubsidiaries,agoodinternalcontrolenvironmentwascreated;bysupervisingthekeybusinessesofsubsidiaries,thelegalcompliance,reliabilityoffinancialreports,assetsafetyandoperationefficiencyofsubsidiarieswasreasonableguaranteed.

XIV.InternalControlassessmentReportorInternalControlAuditReport.

1.AssessmentReportoftheInternalControl

Disclosuredateoffulltextofself-appraisalreportofinternalcontrol

A.Fraudofdirectors,supervisorsandseniormanagement;B.Ineffectivecontrolenvironment;C.Invalidinternalsupervision;D.Majorinternalcontroldefectsfoundandreportedtothemanagementbuthaven'tbeencorrectedafterareasonabletime;E.Materialmisstatementsarefoundbytheexternalauditbuthaven'tbeenfoundintheprocessofinternalcontrol;F.Financialreportssubmittedduringthereportingperiodcompletelycannotmeettheneedsandareseverelypunishedbyregulatoryagencies;G.Othermajordefectsthatmayaffectthereportusers'correctjudgment.Significantdefects:

A.Defectsorinvalidationofimportantfinancialcontrolprocedures;B.Significantmisstatementsarefoundbytheexternalauditbuthaven'tbeenfoundintheprocessofinternalcontrol;C.Financialreportssubmittedduringthereportingperiodhavemistakesfrequently;D.Othersignificantdefectsthatmayaffectthereportusers'correctjudgment.Commondefects:Othercontroldefectsexceptformajordefectsandsignificantdefects.

affectedbymisstatements(basedonconsolidatedstatements):amountaffectedbymisstatementsisequaltoorgreaterthan0.5%oftotalassetsbutlessthan1%oftotalassets.Commondefects:Defectsexceptformajorandsignificantdefects.

2.Auditreportofinternalcontrol

√Applicable□Notapplicable

WhethertheCPAsfirmissuedanAuditReportonInternalControlwithnon-standardopinionornot

□Yes√NoWhethertheAuditReportonInternalControlfromtheCPAsfirmisinconsistentwiththeSelf-appraisalReportfromtheBoardornot

√Yes□No

XV.RectificationoftheProblemsFoundintheSelf-inspectionduringtheSpecialCampaigntoImprovetheGovernanceofListedCompanies

NotApplicable

SectionV.EnvironmentandSocialResponsibilityI.Majorenvironmentalissues

Whetherthelistedcompanyanditssubsidiariesbelongtothekeypollutantdischargeunitsannouncedbytheenvironmentalprotectiondepartment

√Yes□NoEnvironmentalprotectionrelatedpoliciesandindustrystandardsTheCompanyimplementedtheEnvironmentalProtectionLawofthePeople'sRepublicofChina,theLawofthePeople'sRepublicofChinaonthePreventionandControlofAirPollution,theLawofthePeople'sRepublicofChinaonthePreventionandControlofWaterPollution,theLawofthePeople'sRepublicofChinaonthePreventionandControlofNoisePollution,theEnvironmentalProtectionTaxLawofthePeople'sRepublicofChinaandotherrelevantenvironmentalprotectionlawsandregulations,andimplementedtheEmissionStandardofAirPollutantsforGlassIndustry,theIntegratedEmissionStandardofAirPollutants,theSewageIntegratedEmissionStandards,theEnvironmentalNoiseEmissionStandardsattheBoundaryofIndustrialEnterprisesandothernational,industryandlocalpollutantdischargestandards.AdministrativelicenseforenvironmentalprotectionTheconstructionprojectsofeachsubsidiarycarriedoutenvironmentalimpactassessmentworkandobtainEIAapprovalinstrictaccordancewiththerequirementsoftheEnvironmentImpactAssessmentLawofthePeople'sRepublicofChinaandtheCatalogueofClassifiedManagementofEnvironmentalImpactAssessmentofConstructionProjects.Duringtheconstructionoftheproject,theconstructionofpollutionpreventionandcontrolfacilitiesshallbecarriedoutinstrictaccordancewiththerequirementsoftheproject"ThreeSimultaneous"andputintoproductionanduseatthesametimeasthemainproject.Duringthetrialproductionperiod,theinspectionandacceptanceshallbeorganizedinaccordancewiththerelevantregulationsonenvironmentalprotectionacceptanceofthecompletionoftheconstructionprojectinordertoensurethattheconstructionprojectcompletestheinspectionandacceptanceworkbeforeitisofficiallyputintooperation.Allsubsidiarieshaveobtainedthepollutantdischargepermitwithinthevalidityperiod,andregularlysubmittedtheimplementationreportofpollutantdischargepermit.Industryemissionstandardsandspecificconditionsofpollutantemissioninvolvedinproductionandoperationactivities

Nameofcompanyorsubsidiary

Co.,Ltd.

nitrogen

TreatmentofpollutantsAllsubsidiarieshavebuiltpollutionpreventionandcontrolfacilitiesinaccordancewiththeenvironmentalimpactassessmentdocumentsofconstructionprojectsandrelevantspecifications,andadoptedairpollutioncontrolprocesssuchaselectrostaticprecipitator+SCRdenitrification+semi-drydesulfurization+bagdustremoval,ceramicfiltercartridgedesulfurization,denitrificationanddustremovalintegration,bagdustremovalandwatertreatmentprocesssuchasneutralization+precipitation,fluidizedbed,andbiologicaloxidation,forwhichthetechnologiesusedwereallinlinewiththerequirementsofthe"GuidelinesforFeasibleTechnologiesforPollutionPreventionandControlinGlassManufacturingIndustry"andotherdocuments.In2024,thepollutioncontrolfacilitieswereingoodoperationandthepollutantsweredischargedstablyuptothestandard.Theairpollutantemissionconcentrationsofmostofthesubsidiarieswerelowerthan50%oftheemissionstandardandenjoyedthepreferentialpolicyofhalvingenvironmentaltax.Thepollutantemissionsofmanysubsidiariesreachedandimplementedlocalultra-lowemissionstandards.EmergencyresponseplansystemofenvironmentincidentInaccordancewiththenationalrequirements,allsubsidiariespreparedenvironmentalemergencyresponseplans,organizedexpertevaluationandfiledwiththelocalenvironmentalprotectiondepartmentasrequired,andconducted

theemergencydrillagainstenvironmentalemergencyasplanned.Nomajorenvironmentalemergencyoccurredin2024.Environmentalself-monitoringschemeThesubsidiarieshavebuiltandoperatedon-linemonitoringdevicesforwastewaterandexhaustgasinaccordancewithnationallawsandregulations,environmentalimpactassessmentdocumentsofconstructionprojectsandtherequirementsoftheirreplies,regularlycarriedoutcomparisonandreviewoftheeffectivenessofon-linemonitoringfacilities,andentrustedathird-partyunittocarryoutmanualenvironmentalmonitoringtocomprehensivelymonitorthepollutantdischarge.Themonitoringfrequencyisimplementedinaccordancewithrelevantmonitoringtechnicalguidelinesorpollutantdischargepermits.InvestmentinenvironmentalgovernanceandprotectionandpaymentofenvironmentalprotectiontaxAllsubsidiarieshavebuiltpollutioncontrolfacilitiesinaccordancewiththerequirementsofenvironmentalimpactassessment,andmaintainedthestableoperationofthesefacilitiestoensuretheirsimultaneousoperationwithproductionequipment.Considerableenergyandfundsareinvestedinpollutioncontroleveryyeartoensurethestabledischargeofpollutantsuptothestandard,andreducepollutionemissionasmuchaspossible.Manysubsidiarieshavereachedultra-lowemissionstandards.AllsubsidiarieshavemaderegularemissiondeclarationsandpaidenvironmentaltaxestothelocaltaxauthoritiesinfullandontimeinaccordancewiththerequirementsoftheEnvironmentalProtectionTaxLaw.Measurestakentoreducecarbonemissionsduringthereportperiodandtheireffects

√Applicable□NotapplicableTheCompanyhascontinuouslystrengthenedthecomprehensiveutilizationandmanagementofresourcesandenergy,activelyfulfilledthecorporatesocialresponsibility,takenvariousmeasurestosaveenergyandreducecarbonemissions,makingourowncontributionstothenationalgoalof"CarbonPeaking"and"CarbonNeutrality".TheGrouphasspeciallyestablishedanenergymanagementteam,whichwasresponsibleforsupervisingtheenergyconsumptionmanagementofvarioussubsidiaries,andpromotedtheenergyconsumptionperunitproductandcarbonemissionperunitproductoftheGroup'svariousproductstoreachtheadvancedlevelintheindustry.Atpresent,theenergyconsumptionlevelofmostglassmeltingfurnacesintheflatglassbusinessofCSGhasreachedtheadvancedlevelstipulatedbythenationalstandard.Atthesametime,CSGhasalwayspaidattentiontotheutilizationofwasteheatinflatglassfactories.Itsfirstwasteheatpowerplantwasputintooperationasearlyas2009andeachproductionbasehasbuiltwasteheatboilersandwasteheatpowerstations;CSGhasbeenactivelydevelopingphotovoltaicpowerplantssince2012,mostofwhichhavephotovoltaicpowerstationsontheroofsoffactories.In2024,CSG'swasteheatpowergenerationandphotovoltaicpowergenerationtotalledabout586millionkWh,equivalenttoreducingcarbondioxideemissionsbymorethan334,000tons.AdministrativepenaltiescausedbyenvironmentalprotectionissuesduringthereportperiodNilOtherenvironmentalinformationthatshouldbedisclosedNilOtherrelevantenvironmentalprotectioninformation

NilEnvironmentalincidentsinthelistedcompanyIn2024,noenvironmentalincidentsoccurred.II.SocialresponsibilityThe2024AnnualSocialResponsibilitiesReportofCSGisthe17

thsocialresponsibilityreportreleasedbytheCompanyconsecutively.Focusingontheyearof2024,thereportsystemicallydescribedtheconcreteactionsoftheCompanytoactivelyperformitssocialresponsibilitiesanditseffortstoimplementthe"ScientificDevelopmentPerspective",buildupaharmonioussociety,andadvancethesustainabledevelopmentoftheeconomyandsociety.Seethefullreportonwww.cninfo.com.cn.

III.ConsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalizationDuringthereportperiod,theCompanyanditssubsidiariesactivelycarriedoutsocialwelfareandpovertyalleviationactivities.Fordetails,seethe2024AnnualSocialResponsibilitiesReportofCSGdisclosedonwww.cninfo.com.cn.

SectionVI.ImportantEventsI.Implementationofcommitment

1.Commitmentscompletedbytheactualcontrollers,theshareholders,therelatedparties,thepurchasers,theCompanyortheotherrelatedpartiesduringthereportperiodandthosethathadn'tbeencompletedexecutionbytheendofthereportperiod

√Applicable□Notapplicable

Commitments

Note:ShenzhenJushenghuaCo.,Ltd.transferredits86,633,447unrestrictedtradableAsharesofCSGGrouptoitswholly-ownedsub-subsidiaryZhongshanRuntianInvestmentCo.,Ltd.throughagreementtransferonMarch16,2020.ZhongshanRuntianInvestmentCo.,Ltd.isobligedtocontinuetofulfillthecommitmentsmadebyShenzhenJushenghuaCo.,Ltd.Asoftheendofthereportperiod,theabove-mentionedshareholdershadstrictlyfulfilledtherelevantcommitments.

2.IfthereareassetsorprojectsoftheCompany,whichhasprofitforecastandthereportperiodisstillintheforecastingperiod,theCompanyshouldexplainthereasonswhytheyreachtheoriginalprofitforecast.

□Applicable√Notapplicable

II.Particularsaboutnon-operatingfundoflistedcompanywhichisoccupiedbycontrollingshareholderanditsaffiliatedenterprises

□Applicable√NotapplicableIII.Illegalexternalguarantee

□Applicable√NotapplicableTheCompanyhadnoillegalexternalguaranteeduringthereportperiod.IV.ExplanationfromtheBoardofDirectorsforthelatest"Non-standardauditreport"

□Applicable√NotapplicableV.ExplanationfromBoardofDirectors,SupervisoryCommitteeandIndependentDirectors(ifapplicable)for"Non-standardauditreport"oftheperiodthatissuedbyCPA

□Applicable√NotapplicableVI.Explanationofchangesinaccountingpolicies,accountingestimatesorcorrectionofsignificantaccountingerrorscomparedwiththefinancialreportofthepreviousyear

√Applicable□Notapplicable

Thecontentandreasonofaccountingpolicychange

VII.Descriptionofchangesinconsolidationstatement'sscopecomparedwiththefinancialreportofthepreviousyear

√Applicable□NotapplicablePleasereferto"1.Changesinthescopeofconsolidationduetootherreasons"underNote"IX.Changesinthescopeofconsolidation"to"SectionX.FinancialReport".

VIII.EngaginganddismissingofCPAfirm

CPAfirmengaged

NameofdomesticCPAfirm

Whetherchangedaccountingfirmsinthisperiodornot

□Yes√NoAppointmentofinternalcontrolauditingaccountingfirm,financialconsultantorsponsor

√Applicable□NotapplicableGrantThorntonZhitongCertifiedPublicAccountantsLLPwasengagedasauditinstituteofinternalcontrolforthe

Companyinthereportperiod,andcontractedchargeswasRMB0.30million(costofbusinesstripsandaccommodationatitsownexpense).IX.Delistingafterthedisclosureoftheannualreport

□Applicable√Notapplicable

X.Issuesrelatedtobankruptcyandreorganization

□Applicable√NotapplicableTherewerenobankruptcyorrestructuringrelatedmattersduringthereportingperiodofthecompany.XI.Significantlawsuitsandarbitrations

√Applicable□Notapplicable

ornot

XII.Penaltyandrectification

□Applicable√NotapplicableTherewerenopenaltiesorrectificationsduringthereportperiodoftheCompany.XIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers

√Applicable□NotapplicableTheCompanyhasnocontrollingshareholderandactualcontroller.Accordingtothedisclosurerequirements,theCompany'slargestshareholderForeseaLifeInsuranceCo.,Ltd.,shareholderZhongshanRuntianInvestmentCo.,Ltd.,andshareholderShenzhenGuanlongLogisticsCo.,Ltd.shalldisclosethecorrespondinginformation.Thedetailsareasfollows:

iIntegrityoftheCompanyDuringthereportperiod,itdidnotexistthattheCompanyfailedtoperformtheeffectivejudgmentofthecourtorowedacomparativelylargeamountofdebtwhichwasoverdue.Thecompany'sintegritywasgood.ii.TheintegrityoftheCompany'sshareholdersTheCompany,inaccordancewithrelevantregulations,senttheLetteronMattersConcerningAssistanceinProvidingMaterialsRequiredforthe2024AnnualReporttoitslargestshareholderForeseaLifeInsuranceCo.,Ltd.,shareholderZhongshanRuntianInvestmentCo.,Ltd.,andshareholderShenzhenGuanlongLogisticsCo.,Ltd.,byemailonFebruary6,2025.Theseshareholderswereaskedtoprovidetheirownintegritystatusduringthereportperiod,includingbutnotlimitedto:whethertheyfailedtoperformanyeffectivejudgmentofthecourtorowedanycomparativelylargeamountofdebtwhichwasoverdue,etc.Theirrepliesareasfollows:

1.ReplyfromtheCompany'slargestshareholderForeseaLifeInsuranceCo.,Ltd.:AsofDecember31,2024,itdidnotexistthatForeseaLifeInsuranceCo.,Ltd.failedtoperformtheeffectivejudgmentofthecourtorowedacomparativelylargeamountofdebtwhichwasoverdue.

2.AsofthedateofdisclosureofthisReport,theCompanyhasnotreceivedanyrepliesfromshareholdersZhongshanRuntianInvestmentCo.,Ltd.,andShenzhenGuanlongLogisticsCo.,Ltd.regarding"theintegrityofyourcompanyandtheactualcontrollerduringthereportperiod".Therefore,theCompanyisunabletoupdatetheintegritystatusoftheaforesaidshareholdersandtheiractualcontrollerMr.YaoZhenhua.TheCompanyhasdisclosedtheintegritystatusofshareholdersZhongshanRuntianandGuanlongLogisticsandtheiractualcontrollerMr.YaoZhenhuain"XIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers"under"SectionVI.ImportantEvents"ofthe2023AnnualReport,withdetailsasfollows:

"ii.TheintegrityoftheCompany'sshareholdersAccordingtothereplyoftheshareholderZhongshanRuntianInvestmentCo.,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.The26,550,000sharesofJonjeeHigh-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,thefirstroundoffreezingof2,125,605sharesbyAVIC

TrustCo.,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.ThecourthasdisbursedatotalofRMB458,173,319.95toBohaiTrust,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,QianhaiHuabaoSupplyChain,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,andnosolutionhasbeenfinalised.Therefore,theoutstandingloancannotbeadjustedfornow.Onceasolutionisfinalised,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.YaoZhenhuasignedthecorrespondingGuaranteeContractandwasjointlyandseverallyliableforthedebtofRMB2,095million.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.,BaonengRealEstateCo.,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.Asettlementhasbeenreachedinthiscaseandthe

executionhasbeenterminated.

(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,RMB3,674millionwasobtainedfromtheauctionofaresidentialunit,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."XIV.Majorrelatedtransaction

1.Relatedtransactionwithroutineoperationconcerned

□Applicable√Notapplicable

2.Relatedtransactionwithacquisitionofassetsorequity,salesofassetsorequityconcerned

□Applicable√Notapplicable

3.Relatedtransactionwithjointlyexternalinvestmentconcerned

□Applicable√Notapplicable

4.Creditsandliabilitieswithrelatedparties

□Applicable√Notapplicable

5.Transactionswithrelatedfinancialcompanies

□Applicable√Notapplicable

6.Transactionsbetweenfinancialcompaniescontrolledbythecompanyandrelatedparties

□Applicable√Notapplicable

7.Othermajorrelatedtransaction

□Applicable√Notapplicable

XV.Significantcontractsandtheirimplementation

1.Trusteeship,contractingandleasing

(1)Trusteeship

□Applicable√Notapplicable

(2)Contract

□Applicable√Notapplicable

(3)Leasing

□Applicable√Notapplicable

2.Majorguarantees

√Applicable□Notapplicable

Unit:RMB0,000

ExternalguaranteesoftheCompanyanditssubsidiaries(excludingtheguaranteesforsubsidiaries)

Co.,Ltd.

guarantee

Co.,Ltd.

DongguanCSGSolarGlassCo.,Ltd.

YichangCSGPolysiliconCo.,Ltd.

Co.,Ltd.

TechnologyCo.,Ltd.

TechnologyCo.,Ltd.

period(C4)

Note:1.The2023AnnualGeneralMeetingoftheCompanyreviewedandpassedtheProposalforthe2024GuaranteePlan,andapprovedtheCompanyanditssubsidiariestoprovideguaranteesinatotalamountofnotexceedingRMB24,400million(includingtheeffectiveandunexpiredamount)forthe2024creditlinesfromfinancialinstitutionstoguaranteedentitieswithinthescopeofconsolidatedstatements.Amongthem,thetotalamountofguaranteesforallguaranteedentitieswithassetliabilityratioof70%oraboveshallnotexceedtheequivalentamountofRMB2,000million(includingtheeffectiveandunexpiredamount).TheCompany'sexternalguaranteesareallprovidedforsubsidiarieswithinthescopeoftheconsolidatedstatement.AsofDecember31,2024,theactualguaranteebalancewasRMB8,207.18million(ofwhichtheactualguaranteebalancewithliability/assetratioof70%orabovewasRMB684.6million),accountingfor60.63%oftheparentcompany'snetassetsofRMB13,535.9498millionattheendof2024,and26.29%ofthetotalassetsofRMB31,220.4179millionTheCompanyhasnooverdueguarantee.

2.TheCompany's2022AnnualGeneralMeetingreviewedandpassedtheProposalontheDevelopmentofAssetPoolBusinessin2023.InordertoachievetheoverallmanagementoftheCompany'sassetssuchasbillsandlettersofcredit,theGeneralMeetingofShareholdersapprovedtheCompanyanditssubsidiariestoconductassetpoolbusinessofnomorethanRMB1.6billion.Underthepremiseofcontrollablerisks,variousguaranteemethodssuchasmaximumpledge,generalpledge,depositcertificatepledge,billpledge,andmarginpledgecanbeadoptedforbusinessdevelopment.AsofDecember31,2024,theactualpledgeamountoftheassetpoolbusinesswasRMB857.81million,andthefinancingbalancewasRMB856.45million.ExplanationoncompoundguaranteesNil

3.Entrustotherstomanagecashassets

(1)EntrustedFinancing

√Applicable□NotapplicableOverviewofentrustedfinancingduringthereportperiod

Unit:RMB0,000

Type

Detailsofhigh-riskentrustedfinancingwithsignificantsingleamountorlowsecurityandpoorliquidity

□Applicable√NotapplicableEntrustedfinancingexpectedtobeunabletorecovertheprincipalorothercircumstancesthatmayleadtoimpairment

□Applicable√Notapplicable

(2)Entrustedloans

□Applicable√Notapplicable

4.Othermaterialcontracts

□Applicable√NotapplicableXVI.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.

2.Medium-termnotesOnMay16,2022,theCompany's2021AnnualGeneralMeetingreviewedandapprovedthe"ProposalonApplication

forRegistrationandIssuanceofMedium-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,theCompanyreceivedtheCivilJudgmentofthefirstinstanceissuedbyShenzhenIntermediatePeople'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.XVII.SignificanteventsofsubsidiariesoftheCompany

□Applicable√Notapplicable

SectionVII.ChangesinSharesandParticularsaboutShareholdersI.ChangesinShareCapital

1.ChangesinShareCapital

Unit:Share

BeforetheChange

Reasonforequitychanges

√Applicable□NotapplicableDuringthereportperiod,ChinaSecuritiesDepositoryandClearingCorporationLimitedadjustedthelocked-upsharesofseniormanagementinaccordancewithregulations,andtheCompany'srestrictedsharesandunrestrictedshareschangedaccordingly.Approvalonequitychanges

□Applicable√NotapplicableTransferofownershipofchangesinshares

□Applicable√NotapplicableInfluenceonthebasicEPSanddilutedEPSaswellasotherfinancialindexesofnetassetspershareattributabletocommonshareholdersoftheCompanyinthelatestyearandperiod

□Applicable√NotapplicableOtherinformationnecessarytobedisclosedorneedtobedisclosedunderrequirementfromsecurityregulators

□Applicable√Notapplicable

2.Changesofrestrictedshares

√Applicable□Notapplicable

Unit:Share

Shareholders'name

II.IssuanceandlistingofSecurities

1.Securityissued(excludingpreferredstock)inthereportperiod

□Applicable√Notapplicable

2.Particularsaboutchangesoftotalsharesandshareholderstructureaswellaschangesofassetsandliabilitystructure

□Applicable√Notapplicable

3.Existinginternalstaffshares

□Applicable√Notapplicable

III.ParticularsaboutshareholderandactualcontrolleroftheCompany

1.AmountofshareholdersoftheCompanyandparticularsaboutsharesholding

Unit:Share

Totalshareholdersattheendofthereportperiod

Co.,Ltd,throughShenzhenHualitongInvestmentCo.,Ltd.

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.

2.ControllingshareholderoftheCompanyThenatureofcontrollingshareholders:NoholdingbodyThetypeofcontrollingshareholder:NotexistExplanationontheCompanywithoutcontrollingshareholderCurrentlytheCompanyhasnocontrollingshareholder.ForeseaLifeInsuranceCo.,Ltd.istheCompany'slargestshareholderthathastotallyheld657,577,954sharesoftheCompanyviaForeseaLifeInsuranceCo.,Ltd.–HailiNiannian,ForeseaLifeInsuranceCo.,Ltd.–universalinsuranceproducts,ForeseaLifeInsuranceCo.,Ltd.–ownfund,ForeseaLifeInsuranceCo.,Ltd.–acombinationofitsownfundstogetherwithHuataitilltheendofthereportperiod,whichaccountsfor21.41%oftheCompany'stotalshares.ShenzhenJushenghuaCo.,Ltd.,witha51%interestintheCompany'sshareholderForeseaLifeInsuranceCo.,Ltd.,holdsa51%interestintheCompany'sshareholderShenzhenGuanlongLogisticsCo.,Ltd.viaShenzhenHualitongInvestmentCo.,Ltd.,inadditiontotheholdingof100%equityinterestsintheCompany'sshareholdersZhongshanRuntianInvestmentCo.,Ltd..And,ZhongshanRuntianInvestmentCo.,Ltd.,ShenzhenGuanlongLogisticsCo.,Ltd.,andForeseaLifeInsuranceCo.,Ltd.combinedhold676,721,401sharesintheCompany,accountingfor22.04%oftheCompany'stotalshares,whichislessthan30%.Meanwhile,thenumberofdirectorsrecommendedbytheaforesaidshareholderswasnomorethanhalfofthetotalnumberofmembersoftheCompany'sBoardofDirectors.OthershareholdersoftheCompanyholdlessthan5%oftheshares.Changesofcontrollingshareholdersinthereportperiod

□Applicable√Notapplicable

3.ActualcontrolleroftheCompanyanditsconcertedactors

Thenatureoftheactualcontroller:noactualcontrollerThetypeofactualcontroller:NotexistExplanationontheCompanywithoutactualcontrollerCurrentlytheCompanyhasnoactualcontroller.ForeseaLifeInsuranceCo.,Ltd.istheCompany'slargestshareholderthathastotallyheld657,577,954sharesoftheCompanyviaForeseaLifeInsuranceCo.,Ltd.–HailiNiannian,ForeseaLifeInsuranceCo.,Ltd.–universalinsuranceproducts,ForeseaLifeInsuranceCo.,Ltd.–ownfund,ForeseaLifeInsuranceCo.,Ltd.–acombinationofitsownfundstogetherwithHuataitilltheendofthereportperiod,whichaccountsfor21.41%oftheCompany'stotalshares.ShenzhenJushenghuaCo.,Ltd.,witha51%interestintheCompany'sshareholderForeseaLifeInsuranceCo.,Ltd.,holdsa51%interestintheCompany'sshareholderShenzhenGuanlongLogisticsCo.,Ltd.viaShenzhenHualitongInvestmentCo.,Ltd.,inadditiontotheholdingof100%equityinterestsintheCompany'sshareholdersZhongshanRuntianInvestmentCo.,Ltd..And,ZhongshanRuntianInvestmentCo.,Ltd.,ShenzhenGuanlongLogisticsCo.,Ltd.,andForeseaLifeInsuranceCo.,Ltd.combinedhold676,721,401sharesintheCompany,accountingfor22.04%oftheCompany'stotalshares,whichislessthan30%.Meanwhile,thenumberofdirectorsrecommendedbytheaforesaidshareholderswasnomorethanhalfofthetotalnumberofmembersoftheCompany'sBoardofDirectors.Shareholderswithover10%sharesheldinultimatecontrollinglevel

√Yes□No

□Legalperson√NaturalpersonSharesheldinultimatecontrollinglevel

Shareholders

Changesofactualcontrollerinthereportperiod

□Applicable√NotapplicablePropertyrightandcontrollingrelationshipbetweenthelargestshareholderandtheCompanyisasfollow:

ActualcontrollercontrollingoftheCompanybyentrustorotherassetsmanagement

□Applicable√Notapplicable

4.Thecompany'scontrollingshareholderorthelargestshareholderanditsconcertedactor'scumulativepledgedsharesaccountfor80%ofthecompany'ssharesheldbythem

□Applicable√Notapplicable

5.Particularsaboutotherlegalpersonshareholdersholdingover10%ofthecompany'sshares

□Applicable√Notapplicable

6.Limitationonsharereductionofcontrollingshareholders,actualcontrollers,recombinationpartyandothercommitmentsubjects

□Applicable√NotapplicableIV.SpecificimplementationofsharerepurchaseinthereportperiodImplementationprogressofsharerepurchase

□Applicable√NotapplicableImplementationprogressofreducingsharerepurchasedbycentralizedbidding

□Applicable√Notapplicable

SectionVIII.Preferredshares

□Applicable√NotapplicableTherewerenopreferredsharesintheCompanyduringthereportperiod.

SectionIX.Bonds

√Applicable□NotapplicableI.Enterprisebonds

□Applicable√NotapplicableTheCompanyhadnoenterprisebondsduringthereportperiod.II.Corporatebonds

√Applicable□NotapplicableThecompanyhadnocorporatebondsduringthereportingperiod.

III.Debtinstrumentsasanon-financialenterprise

√Applicable□Notapplicable

1.Basicinformationaboutcorporatebonds

Unit:RMB0,000

Bondname

Overduebonds

□Applicable√Notapplicable

2.Triggeringandexecutionofissuerorinvestoroptionclausesandinvestorprotectionclauses

□Applicable√Notapplicable

3.Intermediaryagencies

Bondname

Changeoftheagenciesinthetableaboveduringthereportperiod

□Yes√No

4.Useofraisedfunds

Unit:RMB0,000

Useofraisedfundsinconstructionprojects

□Applicable√NotapplicableIndicatewhethertheraisedfundswerere-purposedduringthereportperiod

□Applicable√Notapplicable

5.Adjustmentofcreditratingresultsduringthereportperiod

□Applicable√Notapplicable

6.Theimplementationandchangesofguarantees,debtrepaymentplansandotherdebtrepaymentguaranteemeasuresduringthereportingperiodandtheirimpactontherightsandinterestsofbondinvestors

□Applicable√Notapplicable

IV.Convertiblecorporatebonds

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

□Applicable√Notapplicable

VI.Overduesituationofinterest-bearingdebtsotherthanbondsattheendofthereportperiod

□Applicable√Notapplicable

VII.Whetherthereisanyviolationofrulesandregulationsduringthereportingperiod

□Yes√NoVIII.KeyfinancialinformationoftheCompanyinthepasttwoyears

Unit:RMB0,000

Item

SectionX.FinancialReport

I.ReportoftheAuditors

TypeofAuditor’sOpinion

Auditor’sReport

TotheshareholdersofCSGGroupCo.,Ltd.I.OpinionWehaveauditedthefinancialstatementsofCSGHoldingCo.,Ltd.(hereinafterreferredtoas"theGroup"),whichcomprisetheconsolidatedandcompanybalancesheetsasofDecember31,2024,andtheconsolidatedandcompanystatementsofprofitorloss,consolidatedandcompanystatementsofcashflows,consolidatedandcompanystatementsofchangesinequity,andrelatednotestothefinancialstatementsfortheyearthenended.

Inouropinion,theaccompanyingfinancialstatementspresentfairly,inallmaterialrespects,theconsolidatedandcompanyfinancialpositionoftheGroupasofDecember31,2024,andtheconsolidatedandcompanyfinancialperformanceandcashflowsfortheyearthenendedinaccordancewiththeChineseAccountingStandardsforBusinessEnterprises(ASBE).II.BasisforFormingAuditOpinionWeconductedourauditinaccordancewiththeChineseStandardsonAuditingasapplicableinChina.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheGroupinaccordancewiththeCodeofEthicsforProfessionalAccountantsinChinaandhavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

III.KeyAuditMatters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,areofthemost

significanceinourauditofthefinancialstatementsforthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,wedonotprovideaseparateopiniononthesematters.(I)RevenuerecognitionFordetaileddisclosures,pleaserefertonotestothefinancialstatements.

1.MatterDescriptionTheGroup'ssalesrevenueprimarilycomesfromprovidingfloatglass,photovoltaicglassarchitecturalglass,solarindustry-relatedproducts,electronicglass,anddisplaydevicestocustomers.Inthefiscalyear2024,theGroupachievedoperatingrevenueof15,455,386,401yuan.SincerevenueisoneoftheGroup'skeyperformanceindicatorsandhasacrucialimpactonthefinancialstatements,weidentifiedrevenuerecognitionasakeyauditmatter.

2.AuditResponseWeperformedthefollowingauditproceduresmainlyrelatedtorevenuerecognition:

(1)Understandingandevaluatingthedesignofinternalcontrolsrelatedtorevenuerecognition,andtestingtheeffectivenessofkeycontrolprocesses.

(2)Samplinginspectionofsignificantsalescontractstoidentifycontracttermsandconditionsrelatedtothecontroltransferpoint,andassesswhetherthespecificmethodofrevenuerecognitionbytheGroupcomplieswiththeChineseAccountingStandardsforBusinessEnterprises(ASBE).

(3)Substantiveanalyticalproceduresonoperatingrevenueandgrossprofitmarginsbymonth,product,customer,etc.,toidentifysignificantorabnormalfluctuationsandanalyzethereasonsforthefluctuations.

(4)Selectingsamplesandperformingdetailedtestingonsalesrevenueforthecurrentperiod,reviewingsalescontracts,verifyingsupportingdocumentsrelatedtorevenuerecognition(includingorders,deliverynotes,customsdeclarations,invoices,etc.),andconfirmingtheauthenticityandaccuracyofrevenueinconjunctionwithcustomersalesreceipts.

(5)Employingsamplingtoselectcustomersandperformingcircularizationproceduresontheirannualtransactionamountsandaccountsreceivablebalances.

(6)Conductingcutofftestsonrevenuerecognizedbeforeandafterthebalancesheetdate,obtainingrelevantsupportingdocuments,verifyingkeytimingpointsofrevenuerecognition,

toascertainwhetherrevenueisrecognizedintheappropriateperiod.

(7)Checkingwhetherrevenue-relatedinformationhasbeenappropriatelypresentedanddisclosedinthefinancialstatements.(II)ProvisionforimpairmentoffixedassetsandconstructioninprogressFordetaileddisclosures,pleaserefertonotestothefinancialstatements.

1.MatterDescriptionAsofDecember31,2024,thebookvalueoffixedassetsintheconsolidatedfinancialstatementsoftheGroupwasRMB13,166,391,449,accountingfor42.17%ofthetotalassetsoftheconsolidatedfinancialstatements,andthebookvalueofconstructioninprogresswasRMB5,350,375,132,accountingfor17.14%ofthetotalassetsoftheconsolidatedfinancialstatements;theimpairmentlossoffixedassetsaccruedduringthereportingperiodwasRMB256,805,904,andtheimpairmentlossofconstructioninprogresswasRMB174,171,999.ThemanagementofCSGGroup(hereinafterreferredtoasthemanagement)evaluatedwhetherthereweresignsofimpairmentofsuchfixedassetsandconstructioninprogress;forfixedassetsandconstructioninprogresswithsignsofimpairment,themanagementestimatedtherecoverableamountoffixedassetsandconstructioninprogressandcomparedtherecoverableamountwiththebookvaluetoconfirmtheamountofimpairmentprovisiontobeaccrued.Astheidentificationofimpairmentsignsoffixedassetsandconstructioninprogressandthemeasurementofrecoverableamountsinvolvesignificantaccountingestimatesandprofessionaljudgmentsofmanagement,weregardtheprovisionforimpairmentoffixedassetsandconstructioninprogressasakeyauditmatter.

2.AuditResponse

Weperformedthefollowingauditproceduresmainlyrelatedtotheprovisionforimpairmentoffixedassets:

(1)Understoodandevaluatedtheinternalcontroldesignrelatedtothemanagementoffixedassetsandprojectsunderconstruction,andtestedtheeffectivenessoftheoperationofkeycontrolprocesses;

(2)ReviewingthemethodsandassumptionsusedbytheGroupforimpairmenttestingoffixedassetsandconstructioninprogress,andevaluatewhethertheassetimpairmentmethodsusedbymanagementcomplywiththerequirementsoftheChineseAccountingStandardsforBusinessEnterprises(ASBE);

(3)Physicallyinspectingfixedassetsandprojectsunderconstructiontoobservetheirstorageandusagestatus;

(4)Recalculatetherecoverableamountsoffixedassetsandconstructioninprogress,andhavecertifiedpublicaccountantvaluationexpertsreviewthevaluationmethodsandkeyassumptionsusedbytheexternalvaluationagencyhiredbythemanagement;

(5)Evaluatingthecompetence,professionalism,andobjectivityoftheassessmentexpertsappointedbymanagementandtheassessmentexpertsappointedbyregisteredaccountants.

IV.OtherMatters

ThemanagementofCSGHoldingCo.,Ltd.isresponsibleforotherinformation.Otherinformationincludestheinformationcoveredinthe2024annualreportofCSGHoldingCo.,Ltd.,butexcludesthefinancialstatementsandourauditreport.

Ourauditopiniononthefinancialstatementsdoesnotcoverotherinformation,andwedonotprovideanyformofassuranceconclusiononotherinformation.

Inconjunctionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedduringtheauditprocessorappearstobemateriallymisstated.

Ifwedetermine,basedontheworkwehaveperformed,thatotherinformationismateriallymisstated,weshouldreportthatfact.Wehavenothingtoreportinthisregard.

V.Responsibilitiesofmanagementandgovernanceforthefinancialstatements

ThemanagementofCSGHoldingCo.,Ltd.isresponsibleforpreparingthefinancialstatementsinaccordancewiththeChineseAccountingStandardsforBusinessEnterprises(ASBE)toachievefairpresentationandfordesigning,implementing,andmaintaininginternalcontrolnecessarytoensurethatthefinancialstatementsarefreefrommaterialmisstatementduetofraudorerror.

Inpreparingthefinancialstatements,managementisresponsibleforassessingtheGroup'sabilitytocontinueasagoingconcern,disclosingmattersrelatedtogoingconcern,andusingthegoingconcernassumption,unlessmanagementintendstoliquidatetheGroup,ceaseoperations,orhavenootherrealisticoption.

ThegovernanceisresponsibleforoverseeingthefinancialreportingprocessofCSG

HoldingCo.,Ltd..

VI.CertifiedPublicAccountants’ResponsibilitiesforAuditingFinancialStatementsOurobjectiveistoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatementduetofraudorerrorandtoissueanauditreportthatincludesourauditopinion.Reasonableassuranceisahighlevelofassurance,butitisnotaguaranteethatanauditconductedinaccordancewithauditingstandardswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanresultfromfraudorerror,andtheyareconsideredmaterialifitcouldreasonablybeexpectedthat,individuallyorintheaggregate,theywouldinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.Intheprocessofperformingauditworkinaccordancewithauditingstandards,weexerciseprofessionaljudgmentandmaintainprofessionalskepticism.Atthesametime,wealsoperformthefollowingtasks:

(1)Identifyandassesstheriskofmaterialmisstatementofthefinancialstatementsduetofraudorerror,designandimplementauditprocedurestoaddresstheserisks,andobtainsufficientandappropriateauditevidenceasabasisforissuingtheauditopinion.Sincefraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,oroverrideofinternalcontrols,theriskofnotdetectingamaterialmisstatementduetofraudishigherthantheriskofnotdetectingamaterialmisstatementduetoerror.

(2)Understandinternalcontrolsrelatedtotheauditanddesignappropriateauditproceduresaccordingly.

(3)Evaluatetheappropriatenessofmanagement'sselectionofaccountingpoliciesandthereasonablenessofaccountingestimatesandrelateddisclosures.

(4)Concludeontheappropriatenessofmanagement'suseofthegoingconcernassumption.Atthesametime,basedontheauditevidenceobtained,concludewhetherthereisasignificantuncertaintythatmaycastsignificantdoubtontheGroup'sabilitytocontinueasagoingconcern.Ifweconcludethatthereisasignificantuncertainty,auditingstandardsrequireustodrawattentionintheauditreporttotherelateddisclosuresinthefinancialstatements;ifthedisclosuresareinadequate,weshouldissueamodifiedauditopinion.Ourconclusionisbasedoninformationavailableasofthedateoftheauditreport.However,futureeventsorcircumstancesmaycausetheGrouptobeunabletocontinueasagoingconcern.

(5)Evaluatetheoverallpresentation,structure,andcontentofthefinancialstatementsandassesswhetherthefinancialstatementsreflectthetransactionsandeventsrelevanttothemfairly.

(6)ObtainsufficientandappropriateauditevidenceregardingthefinancialinformationofentitiesorbusinessactivitieswithintheCSGHoldingCo.,Ltd.inordertoissueanauditopinion.Weareresponsiblefordirecting,supervising,andexecutingthegroupaudit,andwebearfullresponsibilityfortheauditopinion.

Wecommunicatewithgovernanceregardingmatterssuchastheplannedscopeoftheaudit,timingoftheaudit,andsignificantauditfindings,includingsignificantinternalcontroldeficienciesidentifiedduringtheaudit.

Wealsoprovideastatementtogovernanceregardingcompliancewithprofessionalethicalrequirementsrelatedtoindependenceandcommunicatewithgovernanceallrelationshipsandothermattersthatmaybereasonablyconsideredtoaffectourindependence,aswellasthesafeguardsimplementedinrelationtothesematters.

Fromthematterscommunicatedwithgovernance,wedeterminewhichmattersareofmostsignificanceinourauditofthefinancialstatementsforthecurrentperiodandthusconstitutekeyauditmatters.Wedescribethesemattersintheauditreport,unlessprohibitedbylawsandregulationsfrompubliclydisclosingthem,orinveryrarecases,ifitisreasonablyexpectedthatcommunicatingamatterintheauditreportwouldcausenegativeconsequencesoutweighingthebenefitsinthepublicinterest.

GrantThorntonZhitongCertifiedPublicAccountantsLLP

BeijingChina?

FinancialStatementNotes

I.BasicinformationofthecompanyCSGHOLDINGCO.,LTD.(hereinafterreferredtoasthe"Group"),formerlyknownasCSGCO.,LTD.isinvestedbyChinaMerchantsSteamNavigationCompany,Ltd,ShenzhenBuildingMaterialsIndustry(Group)Company,ChinaNorthIndustriesShenzhenCorp.andGuangdongInternationalTrust&InvestmentCo.,Ltd.whichisaChinese-foreignjointventureandestablishedinSeptember1984.TheGroupisregisteredandheadquarteredinShenzhen,GuangdongProvince,thePeople'sRepublicofChina.TheGrouppubliclyissuedRMBordinaryshares("Ashares")andforeignshares("Bshares")tothepublicinOctober1991andJanuary1992respectively,andlistedthemontheShenzhenStockExchange("ShenzhenStockExchange")inFebruary1992."")listedfortrading.Asof31December,2024,thetotalsharecapitaloftheGroupwas3,070,692,107yuan,withaparvalueof1yuanpershare.ThemainbusinessoftheGroupanditssubsidiaries(hereinaftercollectivelyreferredtoasthe"Group")areproductionandsalesoffloatglass,photovoltaicglass,specialglass,engineeringglass,energy-savingandglass-basedenergyproducts,andproductionofpolysiliconandsolarmodules.andsales,productionandsalesofelectronicglassanddisplaydevice,andconstructionandoperationofphotovoltaicpowerplants,etc.ThesefinancialstatementsandnotestothefinancialstatementswereapprovedforissuancebytheGroup'sBoardofDirectorson24April,2025.Pleaserefertothenotesfordetailsofthemainsubsidiariesincludedinthescopeofconsolidationthisyear.II.BasisofpreparationoffinancialstatementsThesefinancialstatementsarepreparedinaccordancewiththeAccountingStandardsforBusinessEnterprisesandtheirapplicationguidelines,interpretationsandotherrelevantregulationsissuedbytheMinistryofFinance(collectively:"AccountingStandardsforBusinessEnterprises").Inaddition,theGroupalsodisclosesrelevantfinancialinformationinaccordancewiththeChinaSecuritiesRegulatoryCommission's"InformationDisclosureandPreparationRulesforCompaniesthatOfferSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReports(Revisedin2023)".Thesefinancialstatementshavebeenpreparedonagoingconcernbasis.TheGroup'saccountingisbasedontheaccrualbasis.Exceptforcertainfinancialinstrumentsandinvestmentproperties,thesefinancialstatementsaremeasuredonahistoricalcostbasis.Ifanassetisimpaired,correspondingimpairmentprovisionswillbemadeinaccordancewithrelevantregulations.III.SignificantaccountingpoliciesandaccountingestimatesThedepreciationoffixedassets,amortizationofintangibleassets,capitalizationconditionsforR&Dexpensesandrevenuerecognitionpoliciesbasedonitsownproductionandoperationcharacteristics.Forspecificaccountingpolicies,pleaserefertonotestothefinancialstatements.

1、Statementoncompliancewithcorporateaccountingstandards

ThisfinancialstatementcomplieswiththerequirementsoftheAccountingStandardsforBusinessEnterprisesandtrulyandcompletelyreflectstheGroup'sconsolidatedandcompanyfinancialstatusasofDecember31,2024,aswellastheconsolidatedandcompanyoperatingresults,consolidatedandcompanycashflowsandotherrelevantinformationin2024.

、Accountingperiod

TheGroupadoptstheGregoriancalendaryear,thatis,fromJanuary1toDecember31eachyear.

3、Businesscycle

TheGroup'soperatingcycleis12months.

、ReportingcurrencyTheGroupanditsdomesticsubsidiariesuseRMBastheirfunctionalcurrencyforaccounting.TheGroup'soverseassubsidiariesdeterminetheirrecordingcurrencybasedonthecurrencyofthemaineconomicenvironmentinwhichtheyoperate.ThecurrencyusedbytheGroupinpreparingthesefinancialstatementsisRMB.

、Materialitycriteriadeterminationmethodandselectionbasis

Item

、Accountingtreatmentmethodsforbusinesscombinationsunderthesamecontrolandthosenot

underthesamecontrol

（1）Businesscombinationundercommoncontrol

Forbusinessmergersundercommoncontrol,theassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyduringthemergershallbemeasuredbasedonthebookvalueofthemergedpartyintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthemergerdate.Thedifferencebetweenthebookvalueofthemergerconsideration(orthetotalfacevalueofthesharesissued)andthebookvalueofthenetassetsobtainedinthemergerisadjustedtothecapitalreserve(sharepremium).Ifthecapitalreserve(sharepremium)isinsufficienttooffsetit,theretainedearningsareadjusted.

Themergerofenterprisesunderthesamecontrolisrealizedstepbystepthroughmultipletransactions.Theassetsandliabilitiesofthemergedpartyacquiredbythemergingpartyinthemergershallbemeasuredbasedonthebookvalueintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyonthedateofmerger;thebookvalueoftheinvestmentsheldbeforethemergerplusthebookvalueofthenewlypaidconsiderationonthedateofmergerThedifferencebetweenthesumandthebookvalueofthenetassetsobtainedinthemergershallbeadjustedtothecapitalreserve(equitypremium).Ifthecapitalreserveisinsufficientforoffset,theretainedearningsshallbeadjusted.Thelong-termequityinvestmentheldbythemergingpartybeforeitobtainedcontrolofthemergedpartyhasbeenconfirmedtoberelevantbetweenthedateofacquiringtheoriginalequityandthedatewhenthemergingpartyandthemergedpartyareunderthefinalcontrolofthesameparty,whicheverislater,tothedateofmerger.Changesinprofitsandlosses,othercomprehensiveincomeandotherowners'equityshouldbeoffsetagainsttheopeningretainedearningsorcurrentprofitsandlossesduringthecomparativestatementperiodrespectively.

（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.Thetransactioncostsofequitysecuritiesordebtsecuritiesissuedas

considerationforthemergershallbeincludedintheinitialrecognitionamountoftheequitysecuritiesordebtsecurities.

7、Judgmentstandardsforcontrolandmethodsforpreparingconsolidatedfinancialstatements（1）ControlcriteriaThescopeofconsolidationinconsolidatedfinancialstatementsisdeterminedbasedoncontrol.ControlmeansthattheGrouphaspowerovertheinvestedunit,enjoysvariablereturnsbyparticipatingintherelevantactivitiesoftheinvestedunit,andhastheabilitytouseitspowerovertheinvestedunittoaffectitsreturnamount.TheGroupwillreassesswhenchangesinrelevantfactsandcircumstancesleadtochangesintherelevantelementsinvolvedinthedefinitionofcontrol.Whenjudgingwhethertoincludestructuredentitiesintothescopeofconsolidation,theGroupcomprehensivelyconsidersallfactsandcircumstances,includingassessingthepurposeanddesignofthestructuredentities,identifyingthetypesofvariablereturns,andwhetheritbearspartorallofthereturnsbyparticipatinginitsrelatedactivities.Evaluatewhetherthestructuredentityiscontrolledbasedonvariability,etc.

（2）Methodsofpreparingconsolidatedfinancialstatements

TheconsolidatedfinancialstatementsarebasedonthefinancialstatementsoftheGroupanditssubsidiaries,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,and

withoutlosingcontrolThedifferencebetweenthedisposalpriceobtainedfromthepartialdisposaloftheequityinvestmentinthesubsidiaryandthecorrespondingshareofthesubsidiary'snetassetscalculatedcontinuouslyfromthedateofpurchaseormergerdatecorrespondingtothedisposalofthelong-termequityinvestmentshallbeadjustedintheconsolidatedbalancesheet.Capitalreserve(equitypremium/capitalpremium),ifthecapitalreserveisinsufficienttooffset,theretainedearningswillbeadjusted.

（4）TreatmentofLossofControlofSubsidiariesIfthecontrolovertheoriginalsubsidiaryislostduetothedisposalofpartoftheequityinvestmentorotherreasons,theremainingequityshallberemeasuredaccordingtoitsfairvalueonthedateoflossofcontrol;thesumoftheconsiderationobtainedfromthedisposaloftheequityandthefairvalueoftheremainingequityshallbelessCalculatedbasedontheoriginalshareholdingratio,thesumoftheshareofthebookvalueofthenetassetsandgoodwilloftheoriginalsubsidiarycalculatedcontinuouslyfromthedateofpurchaseshallbeincludedintheinvestmentincomeinthecurrentperiodwhencontrolislost.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiaryshouldbeaccountedforonthesamebasisastheoriginalsubsidiary'sdirectdisposalofrelevantassetsorliabilitieswhenthecontrolislost.Anyincomerelatedtotheoriginalsubsidiarythatinvolvesaccountingundertheequitymethodotherchangesinowners'equityshouldbetransferredtothecurrentprofitsandlosseswhencontrolislost.

、Determiningcriteriaforcashandcashequivalents

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

9、Foreigncurrencybusinessandforeigncurrencystatementconversion

（1）Foreigncurrencybusiness

TheGroup'sforeigncurrencybusinessisconvertedintotherecordingcurrencyamountbasedonthespotexchangerateonthedateofthetransaction.Onthebalancesheetdate,foreigncurrencymonetaryitemsareconvertedusingthespotexchangerateonthebalancesheetdate.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）RecognitionandderecognitionoffinancialinstrumentsTheGrouprecognizesafinancialassetorfinancialliabilitywhenitbecomesapartytoafinancialinstrumentcontract.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'sbusinessmodelformanagingthisfinancialassetisaimedatcollecting

contractualcashflows;?Thecontractualtermsofthefinancialassetprovidethatthecashflowsgeneratedonaspecificdatearesolelypaymentsofprincipalandinterestbasedontheoutstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaremeasuredatamortizedcostusingtheeffectiveinterestratemethod.Gainsorlossesarisingfromfinancialassetsthataremeasuredatamortizedcostandarenotpartofanyhedgingrelationshipareincludedinthecurrentprofitandlosswhentheyarederecognized,amortizedaccordingtotheeffectiveinterestmethod,orimpairmentisrecognized.FinancialassetsmeasuredatfairvaluethroughothercomprehensiveincomeTheGroupclassifiesfinancialassetsthatmeetthefollowingconditionsandarenotdesignatedasmeasuredatfairvaluethroughprofitorlossasfinancialassetsatfairvaluethroughothercomprehensiveincome:

?TheGroup'sbusinessmodelformanagingthefinancialassetsaimsatboth

collectingcontractualcashflowsandsellingthefinancialassets;?Thecontractualtermsofthefinancialassetprovidethatthecashflowsgeneratedon

aspecificdatearesolelypaymentsofprincipalandinterestbasedonthe

outstandingprincipalamount.Afterinitialrecognition,suchfinancialassetsaresubsequentlymeasuredatfairvalue.Interest,impairmentlossesorgainsandexchangegainsandlossescalculatedusingtheeffectiveinterestratemethodareincludedinthecurrentprofitandloss,andothergainsorlossesareincludedinothercomprehensiveincome.Whenderecognitionisterminated,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomewillbetransferredoutofothercomprehensiveincomeandincludedinthecurrentprofitandloss.FinancialassetsmeasuredatfairvaluethroughprofitsandlossesExceptfortheabove-mentionedfinancialassetsmeasuredatamortizedcostandatfairvaluethroughothercomprehensiveincome,theGroupclassifiesallremainingfinancialassetsasfinancialassetsatfairvaluethroughprofitorloss.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,theGroupirrevocablydesignated

somefinancialassetsthatshouldhavebeenmeasuredatamortizedcostoratfairvaluethroughothercomprehensiveincomeasfinancialassetsmeasuredthroughprofitsandlosses.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）ClassificationandmeasurementoffinancialliabilitiesTheGroup'sfinancialliabilitiesareclassifieduponinitialrecognitioninto:financialliabilitiesmeasuredatfairvaluethroughprofitorloss,andfinancialliabilitiesmeasuredatamortizedcost.Forfinancialliabilitiesthatarenotclassifiedasmeasuredatfairvaluethroughprofitandloss,relevanttransactioncostsareincludedintheirinitialrecognitionamount.FinancialliabilitiesmeasuredatfairvaluethroughprofitorlossFinancialliabilitiesatfairvaluethroughprofitorlossincludetradingfinancialliabilitiesandfinancialliabilitiesdesignatedasfairvaluethroughprofitorlossuponinitialrecognition.Suchfinancialliabilitiesaresubsequentlymeasuredatfairvalue,andgainsorlossesarisingfromchangesinfairvalue,aswellasdividendsandinterestexpensesrelatedtosuchfinancialliabilities,areincludedinthecurrentprofitsandlosses.Financialliabilitiesmeasuredatamortizedcost.

Otherfinancialliabilitiesadopttheactualinterestratemethodandaresubsequentlymeasuredatamortizedcost.Gainsorlossesarisingfromderecognitionoramortizationareincludedinthecurrentprofitsandlosses.ThedifferencebetweenfinancialliabilitiesandequityinstrumentsFinancialliabilitiesrefertoliabilitiesthatmeetoneofthefollowingconditions:

①Contractualobligationtodelivercashorotherfinancialassetstootherparties.

②Contractualobligationstoexchangefinancialassetsorfinancialliabilitieswithotherpartiesunderpotentiallyadverseconditions.③Non-derivativecontractsthatmustorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,andtheenterprisewilldeliveravariablenumberofitsownequityinstrumentsaccordingtothecontract.

④Derivativecontractsthatmustorcanbesettledwiththeenterprise'sownequityinstrumentsinthefuture,exceptforderivativecontractsthatexchangeafixednumberofitsownequityinstrumentsforafixedamountofcashorotherfinancialassets.Equityinstrumentsrefertocontractsthatproveownershipoftheremainingequityintheassetsofanenterpriseafterdeductingallliabilities.IftheGroupcannotunconditionallyavoiddeliveringcashorotherfinancialassetstofulfillacontractualobligation,thecontractualobligationmeetsthedefinitionofafinancialliability.IfafinancialinstrumentmustbesettledorcanbesettledwiththeGroup'sownequityinstruments,itisnecessarytoconsiderwhethertheGroup'sownequityinstrumentsusedtosettletheinstrumentareusedasasubstituteforcashorotherfinancialassets,ortoenabletheholdersoftheinstrumenttoTheremaininginterestintheissuer'sassetsafterdeductingallliabilities.Ifitistheformer,theinstrumentisafinancialliabilityoftheGroup;ifitisthelatter,theinstrumentisanequityinstrumentoftheGroup.（4）FairvalueoffinancialinstrumentsPleaserefertonotestothefinancialstatementsforthemethodofdeterminingthefairvalueoffinancialassetsandfinancialliabilities.

（5）Impairmentoffinancialassets

Basedonexpectedcreditlosses,theGroupperformsimpairmentaccountingonthefollowingitemsandrecognizeslossprovisions:

?Financialassetsmeasuredatamortisedcost;?Receivablesanddebtinvestmentsmeasuredatfairvaluethroughother

comprehensiveincome;?Contractassetsasdefinedin"AccountingStandardsforBusinessEnterprisesNo.

14-Revenue";?Leasereceivables;

?Financialguaranteecontracts(exceptthosethataremeasuredatfairvalueandwhosechangesareincludedincurrentprofitsandlosses,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,ifthecreditriskcharacteristicsofacertaincustomerare

significantlydifferentfromothercustomersintheportfolio,orthecreditriskofthecustomerIfthecharacteristicsofthereceivableschangesignificantly,theGroupshallmakeaseparateprovisionforbaddebtsforthereceivables.Inadditiontothereceivablesforwhichbaddebtprovisionsaremadeindividually,theGroupdividesthereceivablesintogroupsbasedoncreditriskcharacteristicsandcalculatesbaddebtprovisionsonagroupbasis.Notesreceivable,accountsreceivableandcontractassetsFornotesreceivableandaccountsreceivable,regardlessofwhetherthereisasignificantfinancingcomponent,theGroupalwaysmeasuresitslossprovisionsatanamountequivalenttotheexpectedcreditlossesduringtheentireduration.Whentheinformationonexpectedcreditlossescannotbeassessedatareasonablecostforasinglefinancialasset,theGroupdividesnotesreceivableandaccountsreceivableintogroupsbasedoncreditriskcharacteristics,andcalculatesexpectedcreditlossesonthebasisofthegroups.Thebasisfordeterminingthegroupisasfollows:

A.Notesreceivable

?Notesreceivableportfolio1:Bankacceptancebills?Notesreceivableportfolio2:CommercialacceptancebillsB.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,theGroupcalculatesexpectedcreditlossesthroughthedefaultriskexposureandtheexpectedcreditlossratewithinthenext12months

orthroughouttheduration.Forotherreceivablesgroupedbyaging,theagingiscalculatedfromthedateofconfirmation.Debtinvestment,otherdebtinvestmentFordebtinvestmentsandotherdebtinvestments,theGroupcalculatesexpectedcreditbasedonthenatureoftheinvestmentandvarioustypesofcounterpartiesandriskexposuresthroughdefaultriskexposureandexpectedcreditlossratewithinthenext12monthsorthroughouttheduration.AssessmentofsignificantincreaseincreditriskTheGroupcomparestheriskofdefaultofafinancialinstrumentonthebalancesheetdatewiththeriskofdefaultontheinitialrecognitiondatetodeterminetherelativechangeinthedefaultriskofthefinancialinstrumentduringitsexpecteddurationtoassesswhetherthecreditriskofthefinancialinstrumenthasincreasedsignificantlysinceitsinitialrecognition.Whendeterminingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theGroupconsidersreasonableandsupportableinformation,includingforward-lookinginformation,thatcanbeobtainedwithoutunnecessaryadditionalcostoreffort.InformationconsideredbytheGroupincludes:

?Thedebtorfailstopaytheprincipalandinterestontheduedateofthecontract;?anactualorexpectedsignificantdeteriorationintheexternalorinternalcredit

rating(ifany)ofthefinancialinstrument;?Theactualorexpectedseriousdeteriorationinthedebtor'soperatingresults;?Existingorexpectedchangesinthetechnological,market,economicorlegal

environmentwillhaveasignificantadverseimpactonthedebtor'sabilitytorepay

theGroup'sdebt.Dependingonthenatureofthefinancialinstrument,theGroupassesseswhetherthereisasignificantincreaseincreditriskonthebasisofasinglefinancialinstrumentoracombinationoffinancialinstruments.Whenevaluatingbasedonaportfoliooffinancialinstruments,theGroupcanclassifyfinancialinstrumentsbasedoncommoncreditriskcharacteristics,suchasoverdueinformationandcreditriskratings.Ifitisoverdueformorethan30days,theGroupdeterminesthatthecreditriskofthefinancialinstrumenthasincreasedsignificantly.TheGroupbelievesthatfinancialassetsdefaultinthefollowingcircumstances:

?ItisunlikelythattheborrowerwillpayinfullwhatitowestheGroup,an

assessmentthatdoesnottakeintoaccountrecourseactionsbytheGroupsuchas

therealizationofcollateral(ifheld);?Financialassetsareoverdueformorethan90days.Credit-impairedfinancialassetsTheGroupassesseswhethercreditimpairmenthasoccurredonfinancialassetsmeasuredatamortizedcostanddebtinvestmentsmeasuredatfairvaluethroughothercomprehensive

incomeonthebalancesheetdate.Whenoneormoreeventsoccurthathaveanadverseimpactontheexpectedfuturecashflowsofafinancialasset,thefinancialassetbecomesacredit-impairedfinancialasset.Evidencethatafinancialassethasbeencredit-impairedincludesthefollowingobservableinformation:

?Theissuerordebtorencounterssignificantfinancialdifficulties;?Thedebtorbreachesthecontract,suchasdefaultoroverduepaymentofinterestor

principal;?TheGroupgrantsthedebtorconcessionsthatitwouldnothavemadeunderany

othercircumstancesduetoeconomicorcontractualconsiderationsrelatedtothe

debtor'sfinancialdifficulties;?Thelikelihoodthatthedebtorwillgobankruptorundergootherfinancial

reorganization;?Financialdifficultiesoftheissuerordebtorresultinthedisappearanceofanactive

marketforthefinancialasset.PresentationofexpectedcreditlossprovisionsInordertoreflectchangesinthecreditriskoffinancialinstrumentssinceinitialrecognition,theGroupre-measuresexpectedcreditlossesoneachbalancesheetdate,andtheresultingincreaseorreversaloflossprovisionsshallbeaccountedforasimpairmentlossesorgainsintocurrentprofitandloss.Forfinancialassetsmeasuredatamortizedcost,thelossprovisionisreducedbythebookvalueofthefinancialassetslistedinthebalancesheet;fordebtinvestmentsmeasuredatfairvaluethroughothercomprehensiveincome,theGroup'sothercomprehensiveincomeThelossprovisionisrecognizedinincomeanddoesnotdeductthebookvalueofthefinancialasset.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,thefinancialassetsandfinancialliabilitieswillbeFinancialliabilitiesarepresentedinthebalancesheetattheamountafteroffsettingeachother.Otherwise,financialassetsandfinancialliabilitiesarepresentedseparatelyinthebalancesheetandarenotoffsetagainsteachother.

、FairvaluemeasurementFairvaluereferstothepricethatcanbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsonthemeasurementdate.TheGroupmeasuresrelevantassetsorliabilitiesatfairvalue,assumingthatanorderlytransactiontosellassetsortransferliabilitiesisconductedinthemainmarketfortherelevantassetsorliabilities;ifthereisnomainmarket,theGroupassumesthatthetransactionisinthemostadvantageousmarketfortherelevantassetsorliabilities.Themarketproceeds.Themainmarket(orthemostadvantageousmarket)isthetradingmarketthattheGroupcanenteronthemeasurementdate.TheGroupadoptstheassumptionsusedbymarketparticipantstomaximizetheireconomicinterestswhenpricingtheassetorliability.Forfinancialassetsorfinancialliabilitiesthathaveanactivemarket,theGroupdeterminestheirfairvalueusingquotedpricesintheactivemarket.Ifthereisnoactivemarketforafinancialinstrument,theGroupusesvaluationtechniquestodetermineitsfairvalue.Whenmeasuringnon-financialassetsatfairvalue,theabilityofmarketparticipantstousetheassetforitsbestpurposetogenerateeconomicbenefitsisconsidered,ortheabilitytoselltheassettoothermarketparticipantsthatcanbeusedforitsbestpurposetogenerateeconomicbenefits.TheGroupadoptsvaluationtechniquesthatareapplicableunderthecurrentcircumstancesandsupportedbysufficientavailabledataandotherinformation.Itgivesprioritytotheuseofrelevantobservableinputvaluesandunobservableinputvaluesonlyuseswhentheobservableinputvaluescannotbeobtainedorareimpracticaltoobtain..Forassetsandliabilitiesmeasuredordisclosedatfairvalueinfinancialstatements,thefairvalueleveltowhichtheybelongisdeterminedbasedonthelowestlevelinputvaluethatissignificanttotheoverallfairvaluemeasurement:thefirstlevelinputvalueisthevaluethatcanbemeasuredonthemeasurementdate.Theunadjustedquotedpriceofthesameassetorliabilityobtainedintheactivemarket;thesecondlevelinputvalueisthedirectlyorindirectlyobservableinputvalueoftherelevantassetsorliabilitiesinadditiontothefirstlevelinputvalue;thethirdlevelinputvalueisUnobservableinputstorelatedassetsorliabilities.

Ateachbalancesheetdate,theGroupreassessestheassetsandliabilitiesrecognizedinthefinancialstatementsthatcontinuetobemeasuredatfairvaluetodeterminewhetherthereisatransitionbetweenfairvaluemeasurementlevels.

12、Inventories（1）InventoryclassificationTheGroup'sinventoriesaredividedintorawmaterials,workinprogress,inventorygoodsandturnovermaterials.

（2）Valuationmethodforissuedinventory

TheGroup'sinventoriesarevaluedatactualcostwhenacquired.Rawmaterials,inventory,etc.arepricedusingtheweightedaveragemethodwhenshipped.（3）MethodsofProvisionforinventoriesOnthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Whenthenetrealizablevalueislowerthanthecost,aprovisionforinventorydepreciationismade.Netrealizablevalueistheestimatedsellingpriceoftheinventoryminustheestimatedcoststobeincurreduponcompletion,estimatedsellingexpensesandrelatedtaxes.Whendeterminingthenetrealizablevalueofinventories,itisbasedontheconclusiveevidenceobtainedandthepurposeofholdingtheinventoriesandtheimpactofeventsafterthebalancesheetdatearealsoconsidered.TheGroupusuallyaccruesinventorydepreciationprovisionsbasedonindividualinventoryitems.Forinventorieswithlargequantitiesandlowunitprices,inventorydepreciationprovisionsaremadeaccordingtotheinventorycategory.Onthebalancesheetdate,ifthefactorsthatpreviouslycausedtheinventoryvaluetobewrittendownhavedisappeared,theinventorydepreciationprovisionshallbereversedwithintheamountoriginallyaccrued.（4）InventorysystemTheGroupadoptstheperpetualinventorysystem.

13、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）Subsequentmeasurementandprofitandlossrecognitionmethods

Investmentsinsubsidiariesareaccountedforusingthecostmethod,unlesstheinvestmentqualifiesasheldforsale;investmentsinassociatesandjointventuresareaccountedforusingtheequitymethod.Forlong-termequityinvestmentsaccountedforusingthecostmethod,inadditiontotheactualpricepaidwhenacquiringtheinvestmentorthecashdividendsorprofitsthathavebeendeclaredbutnotyetdistributedincludedintheconsideration,thecashdividendsorprofitsdeclaredtobedistributedbytheinvesteeshallberecognizedasinvestmentincomeforcurrentprofitandloss.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheinitialinvestmentcostisgreaterthanthefairvalueshareoftheinvestee’sidentifiablenetassetsthatshouldbeenjoyedatthetimeofinvestment,theinvestmentcostofthelong-termequityinvestmentwillnotbeadjusted;iftheinitialinvestmentcostislessthantheinvestment,theinvestee’sshareoftheidentifiablenetassetsshouldbeenjoyedIfthefairvalueshareofnetassetsisidentified,thebookvalueofthelong-termequityinvestmentwillbeadjusted,andthedifferencewillbeincludedinthecurrentprofitandlossoftheinvestment.Whenaccountingusingtheequitymethod,investmentincomeandothercomprehensiveincomearerecognizedrespectivelyaccordingtotheshareofthenetprofitorlossandothercomprehensiveincomerealizedbytheinvesteethatshouldbeenjoyedorshared,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,theremainingequityafterthedisposalshallbechangedtothe"AccountingStandardsforBusinessEnterprisesNo.22-FinancialInstrumentRecognitionandSignificantInfluence"onthedateoflossofjointcontrolorsignificant

influence.Measurement"isusedforaccountingtreatment,andthedifferencebetweenthefairvalueandthebookvalueisincludedinthecurrentprofitandloss.Othercomprehensiveincomerecognizedduetotheuseoftheequitymethodforaccountingintheoriginalequityinvestmentwillbeaccountedforonthesamebasisastheinvestee'sdirectdisposalofrelevantassetsorliabilitieswhentheequitymethodisterminated;otherchangesinowner'sequityrelatedtotheoriginalequityinvestmentTransferredtocurrentprofitandloss.Ifthecontrolovertheinvestedunitislostduetothedisposalofpartoftheequityinvestmentorotherreasons,andtheremainingequityafterthedisposalcanjointlycontrolorexertsignificantinfluenceontheinvestedunit,itshallbeaccountedforaccordingtotheequitymethod,andtheremainingequityshallberegardedasowned.Adjustmentswillbemadeusingtheequitymethoduponacquisition;iftheremainingequityafterdisposalcannotjointlycontrolorexertsignificantinfluenceontheinvestedunit,therelevantprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments"willbefollowed.Accountingtreatment,thedifferencebetweenitsfairvalueandbookvalueonthedateoflossofcontrolisincludedinthecurrentprofitandloss.IftheGroup'sshareholdingratiodecreasesduetocapitalincreasebyotherinvestors,therebylosingcontrolbutitcanexercisejointcontrolorexertsignificantinfluenceontheinvestedunit,theGroup'sshareoftheinvestedunitduetothecapitalincreaseshallbeconfirmedbasedonthenewshareholdingratio.Thedifferencebetweentheshareofnetassetsincreasedduetoshareexpansionandtheoriginalbookvalueofthelong-termequityinvestmentcorrespondingtothedecreaseinshareholdingratiothatshouldbecarriedforwardisincludedinthecurrentprofitandloss;then,thenewshareholdingratioisdeemedtohavebeencalculatedsincetheinvestmentwasobtained.Thatis,adjustmentsaremadeusingtheequitymethodofaccounting.UnrealizedgainsandlossesfrominternaltransactionsbetweentheGroupanditsassociatesandjointventuresarecalculatedbasedontheshareholdingratioandareattributabletotheGroup,andinvestmentgainsandlossesarerecognizedonanoffsettingbasis.However,iftheunrealizedinternaltransactionlossesbetweentheGroupandtheinvesteeareimpairmentlossesonthetransferredassets,theywillnotbeoffset.

（3）Basisfordeterminingjointcontrolandsignificantinfluenceontheinvestedunit

Jointcontrolreferstothesharedcontroloveranarrangementinaccordancewithrelevantagreements,andtherelevantactivitiesofthearrangementmustbedecidedonlywiththeunanimousconsentoftheparticipantssharingcontrolrights.Whenjudgingwhetherthereisjointcontrol,firstjudgewhetherthearrangementiscollectivelycontrolledbyallparticipantsoracombinationofparticipants,andsecondlywhetherdecisionsonactivitiesrelatedtothearrangementmustbeunanimouslyagreeduponbytheparticipantswhocollectivelycontrolthearrangement.Ifallparticipantsoragroupofparticipantsmustactinconcerttodeterminetherelevantactivitiesofanarrangement,allparticipantsoragroupofparticipantsareconsideredtocollectivelycontrolthearrangement;iftherearetwoormorecombinationsofparticipantsthatcancollectivelyControlofanarrangementdoesnotconstitutejointcontrol.Whendeterminingwhetherjointcontrolexists,theprotectiverightsenjoyedarenottakenintoaccount.Significantinfluencemeansthattheinvestorhasthepowertoparticipateindecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butitisnotabletocontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritcanexertasignificantinfluenceontheinvestee,itisconsideredthattheinvestor'sdirector

indirectholdingsofvotingsharesintheinvesteeandthecurrentexecutablepotentialvotingrightsheldbytheinvestorandotherpartiesareassumedtobeconvertedintocontrolovertheinvestee.Theimpactarisingfromtheacquisitionofequityincludestheimpactofcurrentconvertiblewarrants,shareoptionsandconvertiblecorporatebondsissuedbytheinvestee.WhentheGroupdirectlyorindirectlythroughsubsidiariesownsmorethan20%(inclusive)butlessthan50%ofthevotingsharesoftheinvestedunit,itisgenerallyconsideredtohaveasignificantinfluenceontheinvestedunit,unlessthereisclearevidencethatthissituationItisunabletoparticipateintheproductionandoperationdecisionsoftheinvestedunitanddoesnothaveasignificantimpact;whentheGroupownslessthan20%(exclusive)ofthevotingsharesoftheinvestedunit,itisgenerallynotconsideredtohaveasignificantimpactontheinvestedunit,unlessthereisclearevidencethatthisUndersuchcircumstances,wecanparticipateintheproductionandoperationdecisionsoftheinvestedunitandhaveasignificantinfluence.

（4）Impairmenttestingmethodandimpairmentprovisionaccrualmethod

Forinvestmentsinsubsidiaries,associatesandjointventures,pleaserefertonotesforthemethodofcalculatingassetimpairment.

、InvestmentpropertiesInvestmentpropertyispropertyheldtoearnrentalsorforcapitalappreciation,orboth.TheGroup'sinvestmentpropertiesincludesleasedlanduserights,landuserightsheldandpreparedtobetransferredafterappreciation,andleasedbuildings.ThereisanactiverealestatetradingmarketinthelocationwheretheGroup'sinvestmentrealestateislocated,andtheGroupisabletoobtainmarketpricesandotherrelevantinformationofsimilarorsimilarrealestatefromtherealestatetradingmarket,sothatitcanmakeareasonableestimateofthefairvalueoftheinvestmentrealestate.Therefore,theGroupadoptsthefairvaluemodelforsubsequentmeasurementofinvestmentrealestate,andchangesinfairvaluethroughprofitandloss.Whendeterminingthefairvalueofinvestmentproperties,refertothecurrentmarketpriceofthesameorsimilarrealestateintheactivemarket;ifthecurrentmarketpriceofthesameorsimilarrealestatecannotbeobtained,refertothelatesttransactionpriceofthesameorsimilarrealestateintheactivemarket,andConsiderthetransactionsituation,transactiondate,locationandotherfactorstomakeareasonableestimateofthefairvalueoftheinvestmentproperty;ordetermineitsfairvaluebasedontheexpectedfuturerentalincomeandthepresentvalueoftherelevantcashflows.Inrarecases,ifthereisevidencethattheGroupacquiresaninvestmentpropertythatisnotunderconstructionforthefirsttime(oranexistingpropertybecomesaninvestmentpropertyforthefirsttimeaftercompletingconstructionordevelopmentactivitiesorchangingitsuse),theGroupwillIfthefairvalueofinvestmentrealestatecannotbeobtainedcontinuouslyandreliably,theinvestmentrealestatewillbemeasuredusingthecostmodeluntildisposal,anditisassumedthatthereisnoresidualvalue.Thedifferencebetweenthedisposalincomefromthesale,transfer,scrappingordamageofinvestmentpropertiesafterdeductingitsbookvalueandrelevanttaxesisincludedinthecurrentprofitandloss.

、Fixedassets

（1）Fixedassetrecognitionconditions

TheGroup'sfixedassetsrefertotangibleassetsheldfortheproductionofgoods,provisionoflaborservices,leasingoroperationandmanagement,andwithausefullifeofmorethanoneaccountingyear.Afixedassetcanonlyberecognizedwhentheeconomicbenefitsrelatedtothefixedassetarelikelytoflowintotheenterpriseandthecostofthefixedassetcanbemeasuredreliably.TheGroup'sfixedassetsareinitiallymeasuredbasedontheactualcostwhenacquired.SubsequentexpendituresrelatedtofixedassetsshallbeincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbereliablymeasured;dailyrepaircostsoffixedassetsthatdonotmeettheconditionsforsubsequentexpendituresforcapitalizationoffixedassetsshallbeincludedinthecostoffixedassetswhentheeconomicbenefitsrelatedtothemarelikelytoflowintotheGroupandtheircostscanbemeasuredreliably.Whenincurred,itshallbeincludedinthecurrentprofitandlossorincludedinthecostofrelatedassetsaccordingtothebeneficiaryobject.Forthereplacedpart,itsbookvalueisderecognized.（2）DepreciationmethodsforvarioustypesoffixedassetsFixedassetsaredepreciatedusingthestraight-linemethodbasedontheircostslessestimatedresidualvaluesovertheirestimatedusefullivesDepreciationbeginswhenafixedassetreachesitsintendedusablecondition,anddepreciationstopswhenitisderecognizedorclassifiedasanon-currentassetheldforsale.Withoutconsideringimpairmentprovisions,theGroupdeterminestheannualdepreciationratesofvarioustypesoffixedassetsbasedonfixedassetcategory,estimatedservicelifeandestimatedresidualvalueasfollows:

Category

Amongthem,forfixedassetsforwhichimpairmentprovisionshavebeenmade,thedepreciationrateshouldalsobecalculatedanddeterminedbydeductingtheaccumulatedamountoffixedassetimpairmentprovisions.

（3）Pleaserefertonotestothefinancialstatementsfortheimpairmenttestingmethodand

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

（5）Fixedassetdisposal

Whenafixedassetisdisposedofornoeconomicbenefitsareexpectedtobegeneratedthroughuseordisposal,thefixedassetisderecognised.Theamountofdisposalincomefromthesale,transfer,scrappingordamageoffixedassetsafterdeductingtheirbookvalueandrelevanttaxesisincludedinthecurrentprofitandloss.

16、Constructioninprogress

ThecostoftheGroup'sconstruction-in-progressisdeterminedbasedonactualprojectexpenditures,includingvariousnecessaryprojectexpendituresincurredduringtheconstructionperiod,borrowingcoststhatshouldbecapitalizedbeforetheprojectreachesitsintendedusablestate,andotherrelatedexpenses.Constructioninprogressistransferredtofixedassetswhenitreachestheintendedusablestate.Thecriteriaforjudgingtheintendedusablestatusshouldmeetoneofthefollowingconditions:

Thephysicalconstruction(includinginstallation)ofthefixedassetshasbeencompletedorsubstantiallycompleted,trialproductionortrialoperationhasbeencarriedout,andtheresultsshowthattheassetscanoperatenormally.Oritcanproducestably,orthetrialoperationresultsshowthatitcanoperatenormally.Theamountofexpenditureonthefixedassetsconstructedisverysmalloralmostnolongeroccurs,andthefixedassetspurchasedhavemetthedesignorcontractrequirements,orarebasicallyconsistentwiththedesignorcontractrequirements.Pleaserefertonotestothefinancialstatementsforthemethodofaccruingassetimpairmentforconstructioninprogress.

、EngineerMaterialsTheGroup'sengineeringmaterialsrefertovariousmaterialspreparedforprojectsunderconstruction,includingengineeringmaterials,equipmentthathasnotyetbeeninstalled,andtoolsandequipmentpreparedforproduction.Thepurchasedengineeringmaterialsaremeasuredatcost,theengineeringmaterialsreceivedaretransferredtotheprojectunderconstruction,andtheremainingengineeringmaterialsafterthecompletionoftheprojectaretransferredtoinventory.Pleaserefertonotestothefinancialstatementsfortheassetimpairmentmethodofconstructionmaterials.Inthebalancesheet,theclosingbalanceofconstructionmaterialsislistedinthe"ConstructioninProgress"item.

、Borrowingcosts

（1）Recognitionprinciplesforcapitalizationofborrowingcosts

IftheborrowingcostsincurredbytheGrouparedirectlyattributabletotheacquisition,constructionorproductionofassetsthatmeetthecapitalizationconditions,theyshallbecapitalizedandincludedinthecostoftherelevantassets;otherborrowingcostsshallberecognizedasexpensesbasedontheamountincurredwhenincurredandshallbeincludedinthecostoftherelevantassetsforcurrentprofitandloss.Borrowingcostswillbegintobecapitalizediftheymeetthefollowingconditionsatthesametime:

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

②Theborrowingcostshavebeenincurred;③Thenecessarypurchase,constructionorproductionactivitiestobringtheassettoitsintendedusableorsalablestatehavebegun.

（2）Borrowingcostscapitalizationperiod

Whentheassetspurchased,constructedorproducedbytheGroupthatmeetthecapitalizationconditionsarereadyforintendeduseorsale,thecapitalizationofborrowingcostswillcease.Borrowingcostsincurredaftertheassetsthatmeetthecapitalizationconditionsreachtheintendedusableorsalablestatearerecognizedasexpensesbasedontheamountincurredwhenincurredandincludedinthecurrentprofitandloss.Ifanassetthatmeetsthecapitalizationconditionsisabnormallyinterruptedduringtheacquisition,constructionorproductionprocess,andtheinterruptionlastsformorethan3months,thecapitalizationofborrowingcostswillbesuspended;theborrowingcostsduringthenormalinterruptionperiodwillcontinuetobecapitalized.（3）CalculationmethodofcapitalizationrateofborrowingcostsandcapitalizationamountTheinterestexpensesactuallyincurredonspecialborrowingsinthecurrentperiod,minustheinterestincomefromunusedborrowedfundsdepositedinbanksorinvestmentincomefromtemporaryinvestments,arecapitalized;generalborrowingsarecapitalizedbasedontheexcessoftheaccumulatedassetexpendituresoverthespecialborrowings.Thecapitalizationamountisdeterminedbymultiplyingtheweightedaverageofassetexpendituresbythecapitalizationrateofthegeneralborrowingsoccupied.Thecapitalizationrateiscalculatedanddeterminedbasedontheweightedaverageinterestrateofgeneralborrowings.Duringthecapitalizationperiod,allexchangedifferencesonspecialforeigncurrencyborrowingsarecapitalized;exchangedifferencesongeneralforeigncurrencyborrowingsareincludedinthecurrentprofitsandlosses.

、IntangibleassetsTheGroup'sintangibleassetsincludelanduserights,patentrightsandproprietarytechnologies,mineralminingrightsandothers.Intangibleassetsareinitiallymeasuredbasedoncost,andtheirservicelifeisanalyzedandjudgedwhentheintangibleassetsareacquired.Iftheservicelifeislimited,fromthetimewhentheintangibleassetbecomesavailableforuse,anamortizationmethodthatcanreflecttheexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheassetshallbeused,andamortizationwillbeamortizedwithintheestimatedusefullife;iftheexpectedrealizationmethodcannotbereliablydetermined,Amortizationiscarriedoutusingthestraight-linemethod;intangibleassetswithindefiniteservicelifearenotamortized.Theamortizationmethodofintangibleassetswithlimitedusefullifeisasfollows:

Category

Attheendofeachyear,theGroupreviewstheusefullifeandamortizationmethodofintangibleassetswithlimitedservicelife.Ifitisdifferentfromthepreviousestimate,theoriginalestimateisadjustedandtreatedasachangeinaccountingestimate.Ifitisexpectedthatanintangibleassetwillnolongerbringfutureeconomicbenefitstotheenterpriseonthebalancesheetdate,theentirebookvalueoftheintangibleassetwillbetransferredtothecurrentprofitandloss.Pleaserefertonotestothefinancialstatementsforthemethodofimpairmentforintangibleassets..20、R&Dexpenditure

TheGroup'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;thereistheintentiontocompletetheintangibleassetanduseorsellit;theintangibleassetThewaytogenerateeconomicbenefitsincludesbeingabletoprovethatthereisamarketfortheproductsproducedusingtheintangibleassetsorthattheintangibleassetsthemselveshaveamarket.Iftheintangibleassetswillbeusedinternally,theycanprovetheirusefulness;therearesufficienttechnical,financialandotherresourcesupports.,inordertocompletethedevelopmentoftheintangibleassetandhavetheabilitytouseorselltheintangibleasset;theexpendituresattributabletothedevelopmentstageoftheintangibleassetcanbemeasuredreliably.Developmentexpendituresthatdonotmeettheaboveconditionsareincludedinthecurrentprofitandloss.TheGroup'sresearchanddevelopmentprojectswillenterthedevelopmentstageaftermeetingtheaboveconditionsandpassingtechnicalfeasibilityandeconomicfeasibilitystudiestoformaproject.

Capitalizedexpendituresinthedevelopmentphasearelistedasdevelopmentexpendituresonthebalancesheetandareconvertedintointangibleassetsfromthedatetheprojectreachesitsintendeduse.CapitalizationconditionsforspecificR&Dprojects:

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

?Thedevelopmentoftheproductionprocesshasbeenfullydemonstratedbythe

technicalteam;?Managementhasapprovedthebudgetforproductionprocessdevelopment;?Preliminarymarketresearchandanalysisshowsthattheproductsproducedbytheproductionprocesshavemarketpromotioncapabilities;?Thereissufficienttechnicalandfinancialsupporttocarryoutproductionprocess

developmentactivitiesandsubsequentlarge-scaleproduction;andtheexpenditure

onproductionprocessdevelopmentcanbereliablycollected.Ifitisimpossibleto

distinguishbetweenresearchanddevelopmentexpenditures,allR&Dexpenditures

incurredwillbeincludedinthecurrentperiod'sprofitandloss.

21、Assetsimpairment

Forsubsidiaries’long-termequityinvestments,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.Relatedassetgroupcombinations.Therelevantassetgrouporassetgroupcombinationisanassetgrouporassetgroupcombinationthatcanbenefitfromthesynergyeffectsofthebusinesscombination,andisnolargerthanthereportingsegmentdeterminedbythegroup.Duringimpairmenttesting,iftherearesignsofimpairmentinanassetgrouporcombinationofassetgroupsrelatedtogoodwill,firstconductanimpairmenttestontheassetgrouporcombinationofassetgroupsthatdoesnotincludegoodwill,calculatetherecoverableamount,andconfirmthecorrespondingimpairment.Thenconductanimpairmenttestontheassetgrouporassetgroupcombinationcontaininggoodwill,andcompareitsbookvaluewiththerecoverableamount.Iftherecoverableamountislowerthanthebookvalue,theimpairmentlossofgoodwillisrecognized.Oncetheassetimpairmentlossisrecognized,itwillnotbereversedinsubsequentaccountingperiods.

22、Long-termprepaidexpenses

Thelong-termdeferredexpensesincurredbytheGrouparemeasuredatactualcostandamortizedevenlyovertheexpectedbeneficialperiod.Forlong-termdeferredexpenseitemsthatcannotbenefitfutureaccountingperiods,theiramortizedvalueshallbefullyincludedinthecurrentprofitandloss.

、EmployeeCompensation

（1）Rangeofemployeecompensation

Employeecompensationreferstovariousformsofremunerationorcompensationgivenbyenterprisestoobtainservicesprovidedbyemployeesortoterminatelaborrelations.Employeecompensationincludesshort-termcompensation,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.Benefitsprovidedbyanenterprisetoemployees’spouses,children,dependents,survivorsofdeceasedemployeesandotherbeneficiariesarealsoemployeebenefits.

（2）Short-termcompensation

Duringtheaccountingperiodwhenemployeesprovideservices,theGrouprecognizestheactualemployeewages,bonuses,socialinsurancepremiumssuchasmedicalinsurancepremiums,work-relatedinjuryinsurancepremiums,maternityinsurancepremiums,andhousingprovidentfundspaidforemployeesbasedonprescribedstandardsandproportionsasaliabilitiesandincludedinthecurrentprofitandlossorrelatedassetcosts.（3）Post-employmentbenefitsPost-employmentbenefitplansincludedefinedcontributionplansanddefinedbenefitplans.Amongthem,adefinedcontributionplanreferstoapost-employmentbenefitplaninwhichtheenterprisenolongerbearsfurtherpaymentobligationsafterdepositingafixedfeeintoanindependentfund;adefinedbenefitplanreferstoapost-employmentbenefitplanotherthanadefinedcontributionplan.

DefinedcontributionplansDefinedcontributionplansincludebasicpensioninsurance,unemploymentinsurance,etc.Duringtheaccountingperiodwhenemployeesprovideservices,thedepositamountpayablecalculatedaccordingtothedefinedcontributionplanisrecognizedasaliabilityandincludedinthecurrentprofitandlossorrelatedassetcosts.

（4）Terminationbenefits

IftheGroupprovidesdismissalbenefitstoemployees,theemployeecompensationliabilitiesarisingfromthedismissalbenefitswillberecognizedattheearliestofthefollowingtwotimesandincludedinthecurrentprofitandloss:WhentheGroupcannotunilaterallywithdrawthedismissalbenefitsprovidedduetotheterminationoflaborrelationsplanorlayoffproposal;WhentheGrouprecognizescostsorexpensesrelatedtorestructuringinvolvingpaymentofterminationbenefits.（5）Otherlong-termbenefitsOtherlong-termemployeebenefitsprovidedbytheGrouptoemployeesthatmeettheconditionsofadefinedcontributionplanwillbehandledinaccordancewiththeabove-mentionedrelevantregulationsondefinedcontributionplans.Ifitisincompliancewiththedefinedbenefitplan,itshallbehandledinaccordancewiththerelevantprovisionsonthedefinedbenefitplanmentionedabove,butthe"changescausedbytheremeasurementofthenetliabilitiesornetassetsofthedefinedbenefitplan"intherelevantemployeecompensationcostsshallbeincludedinthecurrentprofitandlossorrelatedAssetcost.

24、ProvisionsIftheobligationsrelatedtocontingenciesmeetthefollowingconditionsatthesametime,theGroupwillrecognizethemasestimatedliabilities:

(1)TheobligationisacurrentobligationbornebytheGroup;

(2)TheperformanceofthisobligationislikelytoresultintheoutflowofeconomicbenefitsfromtheGroup;

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

25、Revenue

（1）GeneralPrinciplesTheGrouprecognizesrevenuewhenitfulfillsitsperformanceobligationsinthecontract,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）Specificmethods

TheGroup'srevenuemainlycomesfromthefollowingbusinesstypes:salesofproducts,externalprovisionofconsultingandprocessingservices.ProductssoldTheGroupproducesandsellsfloatglass,photovoltaicglass,engineeringglass,solarindustryrelatedproducts,electronicglassanddisplaydevice,etc.Fordomesticsales,theGrouptransportstheproductstotheagreeddeliverylocationinaccordancewiththeagreementorpicksitupbythebuyer.Revenueisrecognizedafterthebuyerconfirmsreceiptorpick-up.Forexportsales,accordingtothetradetermsstipulatedinthesalescontract,theGrouprecognizesrevenueaftertheexportproductsgothroughexportcustomsdeclarationproceduresandareshippedinaccordancewiththecontract,oraftertheyareshippedtothedesignateddeliverylocation.Forsolarenergyandotherindustries'photovoltaicpowergenerationrevenue,,theGrouprecognizestheelectricitywhenitissuppliedtotheprovincialpowergridcompanywhereeachelectricfieldislocated,usesthesettledelectricityvolumeconfirmedbybothpartiesastheelectricitysalesforthatmonth,andusestheon-gridelectricitypriceapprovedbytheNationalDevelopmentandReformCommissionortheelectricitypriceagreedinthecontractasthesalesunitprice.ThecreditperiodsgrantedbytheGrouptocustomersinvariousindustriesareconsistentwiththepracticesofvariousindustries,andthereisnosignificantfinancingcomponent.TheGroupprovidesproductqualityassurancefortheproductssoldandrecognizescorrespondingestimatedliabilities.TheGroupdoesnotprovideanyadditionalservicesoradditionalqualityassurance,sotheproductqualityassurancedoesnotconstituteaseparateperformanceobligation.Glassproductswithsalesreturnclauses,revenuerecognitionislimitedtotheamountofaccumulatedrecognizedrevenuethatisunlikelytoresultinasignificantreversal.TheGrouprecognizesliabilitiesbasedontheexpectedreturnamount,andatthesametime,recognizesthebalanceasanassetbasedonthebookvalueofthegoodsexpectedtobereturnedwhenthegoodsaretransferred,minustheexpectedcostsofrecoveringthegoods(includingtheimpairmentofthevalueofthereturnedgoods).ProvideconsultingandprocessingservicesTheGroupprovidesexternalconsultingandprocessingservicesbecausecustomersobtainandconsumetheeconomicbenefitsbroughtbythecompany'sperformanceofthecontractwhilethecompanyperformsthecontract.TheGrouprecognizesrevenuebasedontheprogressofcontractperformance.Theprogressofcontractperformanceisdeterminedbasedontheproportionofcostsincurredtotheestimatedtotalcosts.Onthebalancesheetdate,theGroupre-estimatestheperformanceprogressofcompletedservicestoreflectchangesinperformance.WhentheGrouprecognizesrevenuebasedontheprogressofcompletedservices,theportionforwhichtheGrouphasobtainedtheunconditionalrighttoreceivepaymentisrecognizedas

accountsreceivable,andtheremainingportionisrecognizedascontractassets.Accountsreceivableandcontractassetsarerecognizedasexpectedcreditlosses.Lossprovisionsarerecognizedasthebasis;ifthecontractpricereceivedorreceivablebytheGroupexceedsthelaborservicescompleted,theexcesswillberecognizedascontractliabilities.TheGroup'scontractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasis.

26、Contractcosts

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

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

②Thiscostincreasesthecompany’sresourcesforfulfillingitsperformanceobligationsinthefuture;③Thecostisexpectedtoberecovered.Assetsrecognizedforcontractacquisitioncostsandassetsrecognizedforcontractperformancecosts(hereinafterreferredtoas"assetsrelatedtocontractcosts")areamortizedonthesamebasisastherecognitionofrevenuefromgoodsorservicesrelatedtotheassetsandincludedinthecurrentprofitandloss.Whenthebookvalueofassetsrelatedtocontractcostsishigherthanthedifferencebetweenthefollowingtwoitems,thecompanymakesimpairmentprovisionsfortheexcessandrecognizesitasassetimpairmentlosses:

①Theremainingconsiderationthatthecompanyexpectstoobtainfromthetransferofgoodsorservicesrelatedtotheasset;

②Theestimatedcostthatwillbeincurredtotransfertherelevantgoodsorservices.

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

GovernmentsubsidiesrelatedtoassetsrefertogovernmentsubsidiesobtainedbytheGroupforthepurchase,constructionorotherformationoflong-termassets;inaddition,governmentsubsidiesrelatedtoincomeareregardedasgovernmentsubsidies.Forgovernmentdocumentsthatdonotclearlystipulatethesubsidyobjectsandcanformlong-termassets,thepartofthegovernmentsubsidycorrespondingtotheassetvalueshallberegardedasthegovernmentsubsidyrelatedtotheasset,andtheremainingpartshallberegardedasthegovernmentsubsidyrelatedtoincome;ifitisdifficulttodistinguish,thegovernmentsubsidyshallberegardedasthegovernmentsubsidyrelatedtotheasset.Thewholeisregardedasagovernmentsubsidyrelatedtoincome.Governmentsubsidiesrelatedtoassetsarerecognizedasdeferredincomeandareincludedinprofitsandlossesininstallmentsaccordingtoareasonableandsystematicmethodduringtheuseperiodoftherelevantassets.Ifgovernmentsubsidiesrelatedtoincomeareusedtocompensateforrelevantcostsorlossesthathavealreadyoccurred,theywillbeincludedinthecurrentprofitsandlosses;iftheyareusedtocompensateforrelevantcostsorlossesinsubsequentperiods,theywillbeincludedindeferredincomeandwillbeincludedintherelevantcostsorlosses.Thelossisincludedinthecurrentprofitandlossduringtheperiodduringwhichthelossisrecognized.Governmentsubsidiesmeasuredaccordingtothenominalamountaredirectlyincludedinthecurrentprofitandloss.TheGroupadoptsaconsistentapproachtothesameorsimilargovernmentsubsidybusiness.Governmentsubsidiesrelatedtodailyactivitiesshallbeincludedinotherincomeaccordingtotheeconomicbusinessessence.Governmentsubsidiesunrelatedtodailyactivitiesareincludedinnon-operatingincome.Whenaconfirmedgovernmentsubsidyneedstobereturned,ifthebookvalueoftherelevantassetsisreducedatthetimeofinitialrecognition,thebookvalueoftheassetsisadjusted;ifthereisabalanceofrelevantdeferredincome,theCarryingAmountoftherelevantdeferredincomeisreduced,andtheexcessisincludedinthecurrentprofitandloss;itisInothercases,itwillbedirectlyincludedinthecurrentprofitandloss.

28、Deferredtaxassetsanddeferredtaxliabilities

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

(1)Initialrecognitionofgoodwill,ortheinitialrecognitionofassetsorliabilitiesarisingfromatransactionwiththefollowingcharacteristics:thetransactionisnotabusinesscombination,andthetransactionaffectsneitheraccountingprofitsnortaxableincomewhenthetransactionoccurs(initialrecognition(Exceptforindividualtransactionsthatresultinequalamountsoftaxabletemporarydifferencesanddeductibletemporarydifferencesarisingfromtheassetsandliabilities);

(2)Fortaxabletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventuresandassociates,thetimeofreversalofthetemporarydifferencescanbecontrolledandthetemporarydifferencesarelikelynottobereversedintheforeseeablefuture.Fordeductibletemporarydifferences,deductiblelossesandtaxcreditsthatcanbecarriedforwardtofutureyears,theGroupshalluseittooffsetthedeductibletemporarydifferences,deductiblelossesandtaxcreditstotheextentthatitisprobablethatitwillbeavailable.Thedeferredincometaxassetsgeneratedwillberecognizedtothelimitofthefuturetaxableincome,unlessthedeductibletemporarydifferenceisgeneratedinthefollowingtransactions:

(1)Thetransactionisnotabusinesscombination,andwhenthetransactionoccurs,itaffectsneitheraccountingprofitsnortaxableincome(asingletransactioninwhichtheinitialrecognitionofassetsandliabilitiesresultsinanequalamountoftaxabletemporarydifferencesanddeductibletemporarydifferencesareexcepted);

(2)Fordeductibletemporarydifferencesrelatedtoinvestmentsinsubsidiaries,jointventuresandassociates,andifthefollowingconditionsaremetatthesametime,thecorrespondingdeferredincometaxassetsarerecognized:thetemporarydifferencesarelikelytobereversedintheforeseeablefuture,Anditislikelytoobtaintaxableincomeinthefuturethatcanbeusedtooffsetdeductibletemporarydifferences.Onthebalancesheetdate,theGroup'sdeferredincometaxassetsanddeferredincometaxliabilitiesaremeasuredattheapplicabletaxrateduringtheperiodwhentheassetisexpectedtoberecoveredortheliabilityissettled,andtheincometaximpactoftheexpectedmethodofrecoveringtheassetorsettlingtheliabilityonthebalancesheetdateisreflected.Onthebalancesheetdate,theGroupreviewsthebookvalueofdeferredincometaxassets.Ifitisprobablethatsufficienttaxableincomewillnotbeavailableinfutureperiodstooffsetthebenefitsofdeferredtaxassets,thecarryingamountofthedeferredtaxassetswillbereduced.Theamountofthewrite-downisreversedwhenitisprobablethatsufficienttaxableincomewillbeobtained.Onthebalancesheetdate,deferredincometaxassetsanddeferredincometaxliabilitiesarepresentedasthenetamountafteroffsettingwhenthefollowingconditionsaremetatthesametime:

(1)Thetaxpayerwithinthegrouphasthelegalrighttosettlecurrentincometaxassetsandcurrentincometaxliabilitiesonanetbasis;

(2)Deferredincometaxassetsanddeferredincometaxliabilitiesarerelatedtoincometaxesleviedbythesametaxcollectionandadministrationdepartmentonthesametaxpayerwithinthegroup.

29、leases

（1）Identificationofleases

Onthecontractinceptiondate,theGroup,asalesseeorlessor,evaluateswhetherthecustomerinthecontracthastherighttoobtainsubstantiallyalltheeconomicbenefitsgeneratedfromtheuseoftheidentifiedassetsduringtheuseperiod,andhastherighttodirecttheuseoftheidentifiedassetsduringtheuseperiod.Ifapartyinacontracttransferstherighttocontroltheuseofoneormoreidentifiedassetswithinacertainperiodinexchangeforconsideration,theGroupdeterminesthatthecontractisaleaseorcontainsalease.

（2）TheGroupactsaslesseeOnthecommencementdateoftheleaseperiod,theGrouprecognizesright-of-useassetsandleaseliabilitiesforallleases,exceptforsimplifiedtreatmentshort-termleasesandlow-valueassetleases.Theaccountingpoliciesforright-of-useassetsareshowninnotes.Leaseliabilitiesareinitiallymeasuredbasedonthepresentvalueoftheunpaidleasepaymentsatthebeginningoftheleasetermusingtheinterestrateimplicitinthelease.Iftheinterestrateimplicitintheleasecannotbedetermined,theincrementalborrowingrateisusedasthediscountrate.Leasepaymentsinclude:fixedpaymentsandsubstantivefixedpayments,ifthereareleaseincentives,theamountrelatedtoleaseincentivesisdeducted;variableleasepaymentsthatdependontheindexorratio;theexercisepriceofthepurchaseoption,providedthatthelesseeisreasonableItiscertainthattheoptionwillbeexercised;theamountrequiredtobepaidtoexercisetheoptiontoterminatethelease,providedthattheleasetermreflectsthatthelesseewillexercisetheoptiontoterminatethelease;andtheamountexpectedtobepaidbasedontheresidualvalueoftheguaranteeprovidedbythelessee.Subsequently,theinterestexpenseoftheleaseliabilityforeachperiodduringtheleasetermiscalculatedbasedonthefixedperiodicinterestrateandincludedinthecurrentprofitandloss.Variableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesareincludedinthecurrentprofitandlosswhenactuallyincurred.Short-termleaseAshort-termleasereferstoaleasewithaleasetermofnomorethan12monthsonthestartdateoftheleaseperiod,exceptforleasesthatincludeapurchaseoption.TheGroupwillincludetheleasepaymentsofshort-termleasesintotherelevantassetcostsorcurrentprofitsandlossesonastraight-linebasisduringeachperiodoftheleaseterm.LowvalueassetleasingLow-valueassetleasesrefertoleaseswherethevalueofasingleleasedassetislessthan100,000yuanwhenitisabrand-newasset.TheGroupwillincludetheleasepaymentsforlow-valueassetleasesintotherelevantassetcostsorcurrentprofitsandlossesonastraight-linebasisduringeachperiodoftheleaseterm.Forlow-valueassetleases,theGroupchoosestoadopttheabovesimplifiedtreatmentmethodbasedonthespecificcircumstancesofeachlease.LeasechangesIfaleasechangesandthefollowingconditionsaremetatthesametime,theGroupwillaccountfortheleasechangeasaseparatelease:

①Theleasechangeexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;②IncreasedTheconsiderationisequivalenttotheindividualpriceoftheextendedportionofthelease,adjustedforthecircumstancesofthecontract.Iftheleasechangeisnotaccountedforasaseparatelease,ontheeffectivedateoftheleasechange,theGroupre-allocatestheconsiderationofthecontractafterthechange,re-

determinestheleaseterm,andcalculatesitbasedonthechangedleasepaymentandthereviseddiscountrate.Presentvalueremeasurementoftheleaseliability.Ifachangeintheleaseresultsinareductioninthescopeoftheleaseorashorteningoftheleaseperiod,theGroupwillaccordinglyreducethebookvalueoftheright-of-useassets,andincludethegainsorlossesrelatedtothepartialorcompleteterminationoftheleaseintothecurrentprofitsandlosses.Ifotherleasechangesresultintheremeasurementofleaseliabilities,theGroupwilladjustthebookvalueoftheright-of-useassetsaccordingly.

（3）TheGroupactsaslessor

WhentheGroupactsasalessor,leasesthatsubstantiallytransferallrisksandrewardsrelatedtoassetownershiparerecognizedasfinanceleases,andleasesotherthanfinanceleasesarerecognizedasoperatingleases.FinancialleaseInfinancialleases,theGroup'snetleaseinvestmentonthedateoftheleasetermisrecordedastheaccountingvalueoffinanceleasereceivables.Thenetleaseinvestmentistheunguaranteedresidualvalueandtheleasereceivablesthathavenotbeenreceivedonthedateoftheleasetermarecalculatedbasedontheamountincludedinthelease.Thesumofpresentvaluesdiscountedwithinterestrates.Asthelessor,theGroupcalculatesandrecognizesinterestincomeforeachperiodduringtheleasetermbasedonfixedperiodicinterestrates.VariableleasepaymentsobtainedbytheGroupasalessorthatarenotincludedinthemeasurementofthenetleaseinvestmentareincludedinthecurrentprofitandlosswhenactuallyincurred.Thederecognitionandimpairmentoffinanceleasereceivablesshallbeaccountedforinaccordancewiththeprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments"and"AccountingStandardsforBusinessEnterprisesNo.23-TransferofFinancialAssets".OperatingleaseForrentsinoperatingleases,theGrouprecognizescurrentprofitsandlossesaccordingtothestraight-linemethodineachperiodduringtheleaseterm.Theinitialdirectexpensesincurredinconnectionwiththeoperatingleaseshallbecapitalized,amortizedduringtheleaseperiodonthesamebasisastherentalincomerecognition,andincludedinthecurrentprofitandlossininstallments.Variableleasepaymentsrelatedtooperatingleasesthatarenotincludedintheleasereceiptsareincludedinthecurrentprofitandlosswhentheyactuallyoccur.LeasechangesIfanoperatingleasechanges,theGroupwillaccountforitasanewleasefromtheeffectivedateofthechange,andtheamountofleasereceiptsreceivedinadvanceorreceivablerelatedtotheleasebeforethechangeisregardedastheamountofreceiptsfromthenewlease.Ifafinancialleasechangesandthefollowingconditionsaremetatthesametime,theGroupwillaccountforthechangeasaseparatelease:①Thechangeexpandsthescopeoftheleasebyaddingtherighttouseoneormoreleasedassets;②TheincreasedconsiderationThe

amountisequivalenttotheindividualpriceoftheextendedportionoftheleaseadjustedforthecircumstancesofthecontract.Ifafinancialleaseischangedandisnotaccountedforasaseparatelease,theGroupwilltreatthechangedleaseunderthefollowingcircumstances:①Ifthechangetakeseffectontheleasecommencementdate,theleasewillbeclassifiedasanoperatinglease,andtheGroupwillFromtheeffectivedateoftheleasechange,itwillbeaccountedforasanewlease,andthenetleaseinvestmentbeforetheeffectivedateoftheleasechangewillbeusedasthebookvalueoftheleasedasset;②Ifthechangetakeseffectontheleasecommencementdate,theleasewillbeclassifiedasfinancingForleases,theGroupshallconductaccountingtreatmentinaccordancewiththeprovisionsof"AccountingStandardsforBusinessEnterprisesNo.22-RecognitionandMeasurementofFinancialInstruments"regardingmodificationorrenegotiationofcontracts.

、Right-of-useassets

（1）Right-of-useassetrecognitionconditions

Right-of-useassetsrefertotheGroup'srightsasalesseetousetheleasedassetsduringtheleaseterm.Onthecommencementdateoftheleaseterm,theright-of-useassetisinitiallymeasuredatcost.Thiscostincludes:theinitialmeasurementamountoftheleaseliability;theleasepaymentamountpaidonorbeforethestartdateoftheleaseterm,ifthereisaleaseincentive,deducttheamountrelatedtotheleaseincentivethathasbeenenjoyed;theinitialdirectcostsincurredbytheGroupasalessee;TheGroup,asthelessee,expectstoincurcostsfordismantlingandremovingtheleasedassets,restoringthesitewheretheleasedassetsarelocated,orrestoringtheleasedassetstothestateagreeduponintheleaseterms.Asalessee,theGrouprecognizesandmeasurescostssuchasdemolitionandrestorationinaccordancewithAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Adjustmentsaremadesubsequentlyforanysubsequentremeasurementoftheleaseliability.

（2）Depreciationmethodforright-of-useassets

TheGroupusesthestraight-linemethodtocalculatedepreciation.IftheGroup,asthelessee,canreasonablydeterminethatitwillobtainownershipoftheleasedassetwhentheleasetermexpires,depreciationwillbeaccruedovertheremainingusefullifeoftheleasedasset.Ifitisnotreasonablycertainthattheownershipoftheleasedassetwillbeobtainedattheexpirationoftheleaseterm,depreciationwillbeaccruedduringtheshorteroftheleasetermandtheremainingusefullifeoftheleasedasset.（3）Pleaserefertonotestothefinancialstatementsfortheimpairmenttestingmethodandimpairmentprovisionaccrualmethodforright-of-useassets.

、SafetyproductioncostsAccordingtorelevantdocumentsfromtheMinistryofFinanceandtheStateAdministrationofWorkSafety,theGroup'ssubsidiariesengagedintheproductionandsalesofpolysiliconarebasedontheactualoperatingincomeofthepreviousyearanduseanexcessregressivemethodtowithdrawproductionsafetyexpensesmonthly:

(a)Iftheoperatingincomeis10millionyuanorless,4.5%shallbewithdrawn;

(b)TheportionofoperatingincomebetweenRMB10millionandRMB100million(inclusive)shallbewithdrawnat2.25%;(c)TheportionofoperatingincomebetweenRMB100millionandRMB1billion(inclusive)shallbewithdrawnat0.55%;(d)FortheportionofoperatingincomeaboveRMB1billion,0.2%willbewithdrawn.AccordingtotheAdministrativeMeasuresfortheExtractionandUseofEnterpriseSafetyProductionExpenses(CaiZi[2022]No.136),theGroup'ssubsidiariesengagedinminingandprocessingarebasedonminingvolume.Safetyproductionexpenseextractionstandards:Fornon-metallicmines,open-pitminesat3yuanperton,undergroundminesat8yuanperton.Safetyproductionexpensesaremainlyusedtoimprove,transformandmaintainsafetyprotectionequipmentandfacilities.Safetyproductionexpensesareincludedinthecostofrelatedproductsorcurrentprofitsandlosseswhenwithdrawn,andarealsorecordedinspecialreserveaccounts.Wheninuse,expenditureswithintheprescribedscopeofusewillbedirectlyoffsetagainstthespecialreservewhentheexpendituresareincurred;forcapitalexpenditures,expendituresincurredthroughtheaccountsofprojectsunderconstructionwillbeuseduntiltheprojectiscompletedandreachesthescheduledavailability.Wheninuse,theyaretransferredtofixedassets,andthespecialreservesareoffsetaccordingtothecostofformingthefixedassets,andthecorrespondingamountofaccumulateddepreciationisrecognizedatthesametime.Thisfixedassetwillnolongerbedepreciatedinfutureperiods.

32、Significantaccountingjudgmentsandestimates

TheGroupcontinuouslyevaluatestheimportantaccountingestimatesandkeyassumptionsadoptedbasedonhistoricalexperienceandotherfactors,includingreasonableexpectationsforfutureevents.Theimportantaccountingestimatesandkeyassumptionsthatarelikelytocauseasignificantadjustmentinthebookvalueofassetsandliabilitiesinthenextfiscalyearareasfollows:

ClassificationoffinancialassetsTheGroup'ssignificantjudgmentsinvolvedindeterminingtheclassificationoffinancialassetsincludeanalysisofbusinessmodelsandcontractualcashflowcharacteristics.TheGroupdeterminesthebusinessmodelformanagingfinancialassetsattheleveloffinancialassetportfolios.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.Impairmentoccurswhenthebookvalueofanassetorassetgroupexceedsitsrecoverableamount,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.DeferredtaxassetsDeferredtaxassetsshouldberecognizedforallunusedtaxlossestotheextentthatitisprobablethatsufficienttaxableprofitswillbeavailableagainstwhichthelossescanbeutilised.Thisrequiresmanagementtousealotofjudgmenttoestimatethetimingandamountoffuturetaxableprofits,combinedwithtaxplanningstrategies,todeterminetheamountofdeferredincometaxassetsthatshouldberecognized

33、ChangesinSignificantAccountingPoliciesandAccountingEstimates

（1）ChangesinSignificantAccountingPolicies

1AccountingStandardsforBusinessEnterprisesInterpretationNo.17

OnOctober25,2023,TheMinistryofFinanceissuedthe"InterpretationNo.17ofAccountingStandardsforBusinessEnterprises"(FinancialAccounting[2023]No.21,hereinafterreferredtoas"InterpretationNo.17"),itcomesintoeffectonJanuary1,2024.TheCompanyhasappliedtheprovisionsofInterpretationNo.17fromJanuary1,2024.TheimplementationoftherelevantprovisionsofInterpretationNo.17hasnomaterialimpactontheCompany’sfinancialstatementsduringthereportingperiod.

2AccountingStandardsforBusinessEnterprisesInterpretationNo.18OnDecember6,2024,TheMinistryofFinanceissuedthe"InterpretationNo.18ofAccountingStandardsforBusinessEnterprises"(FinancialAccounting[2024]No.24,hereinafterreferredtoas"InterpretationNo.18").InterpretationNo.18stipulatesthat,whenaccountingforprovisionsrelatedtoguarantee-typequalityassurancesthatdonotconstituteseparateperformanceobligations,enterprisesshallrecognizeaprovisioninaccordancewiththerelevantrequirementsofAccountingStandardforBusinessEnterprisesNo.13—Contingencies.Theamountoftheprovisionshallbedebitedtoaccountssuchas"CostofMainOperations"or"CostofOtherOperations,"andcreditedtothe"Provisions"account.Correspondingdisclosuresshallbemadeintheincomestatementunder"OperatingCosts,"andinthebalancesheetunderitemssuchas"OtherCurrentLiabilities,""Non-currentLiabilitiesDueWithinOneYear,"and"Provisions."TheGrouhasappliedthisprovisionfromtheissuancedateofInterpretationNo.18andhasmaderetrospectiveadjustments.Theimpactofimplementingtheaboveaccountingpolicyontheconsolidatedincomestatementfortheyear2024isasfollows:

Consolidatedincomestatementitems(2024)

implementingtheaboveaccountingpoliciesontheconsolidatedincomestatementfor2023isasfollows:

IV.Taxes

、Maintaxesandtaxrates

Category

、TaxincentivesandapprovalsTianjinCSGEnergy-SavingGlassCo.,Ltd.(hereinafterreferredtoas“TianjinEnergy-SavingCompany”)passedthere-evaluationofitsHighandNewTechnologyEnterprise(HNTE)qualificationin2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligibleforareducedenterpriseincometax(EIT)rateof15%forthreeconsecutiveyears.DongguanCSGEngineeringGlassCo.,Ltd.(hereinafterreferredtoas“DongguanEngineeringCompany”)passedtheHNTEre-evaluationin2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.WujiangCSGEastChinaEngineeringGlassCo.,Ltd.(hereinafterreferredtoas“WujiangEngineeringCompany”)passedtheHNTEre-evaluationin2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.DongguanCSGSolarGlassCo.,Ltd.(hereinafterreferredtoas“DongguanSolarCompany”)passedtheHNTEre-evaluationin2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.YichangCSGSiliconMaterialsCo.,Ltd.(hereinafterreferredtoas“YichangSiliconMaterialsCompany”)passedtheHNTEre-evaluationin2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.DongguanCSGPhotovoltaicTechnologyCo.,Ltd.(hereinafterreferredtoas“DongguanPVCompany”)passedtheHNTEre-evaluationin2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.HebeiVisionGlassCo.,Ltd.(hereinafterreferredtoas“HebeiVisionCompany”)passedtheHNTEre-evaluationin2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.WujiangCSGGlassCo.,Ltd.(hereinafterreferredtoas“WujiangCSGCompany”)passedtheHNTEre-evaluationin2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.

XianningCSGGlassCo.,Ltd.(hereinafterreferredtoas“XianningFloatGlassCompany”)passedtheHNTEre-evaluationin2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.XianningCSGEnergy-SavingGlassCo.,Ltd.(hereinafterreferredtoas“XianningEnergy-SavingCompany”)passedtheHNTEre-evaluationin2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligiblefora15%EITrateforthreeyears.YichangCSGOptoelectronicGlassCo.,Ltd.(hereinafterreferredtoas“YichangOptoelectronicsCompany”)passedtheHNTEre-evaluationin2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligiblefora15%EITrateforthreeyears.YichangCSGDisplayDevicesCo.,Ltd.(hereinafterreferredtoas“YichangDisplayCompany”)passedtheHNTEre-evaluationin2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligiblefora15%EITrateforthreeyears.QingyuanCSGEnergy-SavingNewMaterialsCo.,Ltd.(hereinafterreferredtoas“QingyuanEnergy-SavingCompany”)passedtheHNTEre-evaluationin2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.HebeiCSGGlassCo.,Ltd.(hereinafterreferredtoas“HebeiCSGCompany”)passedtheHNTEre-evaluationin2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligiblefora15%EITrateforthreeyears.XianningCSGOptoelectronicGlassCo.,Ltd.(hereinafterreferredtoas“XianningOptoelectronicsCompany”)passedtheHNTEre-evaluationin2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.ZhaoqingCSGEnergy-SavingGlassCo.,Ltd.(hereinafterreferredtoas“ZhaoqingEnergy-SavingCompany”)wasrecognizedasaHighandNewTechnologyEnterprisein2022andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2022,thecompanyiseligiblefora15%EITrateforthreeyears.SichuanCSGEnergy-SavingGlassCo.,Ltd.(hereinafterreferredtoas“SichuanEnergy-SavingCompany”)enjoystheWesternDevelopmententerpriseincometaxincentive,andappliesanEITrateof15%forthecurrentyear.ChengduCSGGlassCo.,Ltd.(hereinafterreferredtoas“ChengduCSGCompany”)enjoystheWesternDevelopmententerpriseincometaxincentive,andappliesanEITrateof15%forthecurrentyear.Xi’anCSGEnergy-SavingGlassTechnologyCo.,Ltd.(hereinafterreferredtoas“Xi’anEnergy-SavingCompany”)enjoystheWesternDevelopmententerpriseincometaxincentive,andappliesanEITrateof15%forthecurrentyear.

GuangxiCSGNewEnergyMaterialsTechnologyCo.,Ltd.(hereinafterreferredtoas“GuangxiNewEnergyMaterialsCompany”)enjoystheWesternDevelopmententerpriseincometaxincentive,andappliesanEITrateof15%forthecurrentyear.QinghaiCSGNewEnergyTechnologyCo.,Ltd.(hereinafterreferredtoas“QinghaiNewEnergyCompany”)enjoystheWesternDevelopmententerpriseincometaxincentive,andappliesanEITrateof15%forthecurrentyear.YichangCSGNewEnergyCo.,Ltd.(“YichangNewEnergyCompany”),ZhaoqingCSGNewEnergyTechnologyCo.,Ltd.(“ZhaoqingNewEnergyCompany”),XianningCSGPhotovoltaicNewEnergyCo.,Ltd.(“XianningPVCompany”),andAnhuiCSGPhotovoltaicEnergyCo.,Ltd.(“AnhuiPVCompany”)fallunderthecategoryofkeypublicinfrastructureprojectssupportedbythestateasspecifiedinArticle87ofthe*ImplementationRegulationsoftheEnterpriseIncomeTaxLaw*,andareentitledtothe“three-yearexemptionandthree-yearhalf-reduction”taxincentive.Thatis,fromthetaxyearinwhichthefirstproductionandbusinessincomeisearned,theyareexemptfromEITforthefirsttothirdyears,andsubjecttoa50%reductioninEITforthefourthtosixthyears.AnhuiCSGQuartzMaterialsCo.,Ltd.(hereinafterreferredtoas“AnhuiQuartzCompany”)wasrecognizedasaHighandNewTechnologyEnterprisein2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.AnhuiCSGNewEnergyMaterialsTechnologyCo.,Ltd.(hereinafterreferredtoas“AnhuiNewEnergyCompany”)wasrecognizedasaHighandNewTechnologyEnterprisein2023andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2023,thecompanyiseligiblefora15%EITrateforthreeyears.DongguanCSGIntelligentEquipmentCo.,Ltd.(hereinafterreferredtoas“DongguanEquipmentCompany”)wasrecognizedasaHighandNewTechnologyEnterprisein2024andhasobtainedthe*HighandNewTechnologyEnterpriseCertificate*.Thecertificateisvalidforthreeyears,andfrom2024,thecompanyiseligiblefora15%EITrateforthreeyears.Accordingtothe*AnnouncementonthePolicyofAdditionalDeductionofInputVATforAdvancedManufacturingEnterprises*(AnnouncementNo.43[2023]oftheMinistryofFinanceandtheStateTaxationAdministration),theCompany’ssubsidiariesqualifiedasHighandNewTechnologyEnterprisesareentitledtoanadditionaldeductionof5%ofthedeductibleinputVATfromtheVATpayableduringtheperiodfromJanuary1,2023toDecember31,2027.V.NotestoConsolidatedFinancialStatements

1、Cashatbankandonhand

Item

Attheendoftheperiod,theamountofmoneyusedfordepositsandfreezesbythisgroupwasRMBRMB53,654,096.

2、Financialassetsatfairvaluethroughprofitorloss

Item

、NotesReceivable

（1）Noteseceivablepledgedattheendoftheperiod

（2）NotesreceivablethathavebeenendorsedordiscountedbytheGroupbuthavenotyet

maturedattheendoftheperiod.

（3）Classificationbybaddebtaccrualmethod

Continued:

Category

（4）Baddebtprovisionsaccrued,recoveredorreversedinthecurrentperiod

（5）Thereisnoactualwrite-offofnotesreceivableinthisperiod

4、Accountsreceivable

（1）Disclosurebyage

（2）Classifieddisclosureaccordingtobaddebtaccrualmethod

Category

Continued:

Accountsreceivableforwhichbaddebtprovisionismadeonanindividualbasis

Continued:

Name

AccountsreceivablewithprovisionforbaddebtsonaportfoliobasisPortfolioaccrualitems:accountsreceivablefromnon-relatedparties

（3）Baddebtprovisionaccrued,recoveredorreversedinthecurrentperiod

（4）Actualwrite-offofaccountsreceivableinthecurrentperiod

（5）Thetopfivecompanieswithclosingbalancesofaccountsreceivablecollectedby

debtors

UnitName

、ReceivablesFinancing

TheGroupdiscountsandendorsespartofthebankacceptancebillsbasedonitsdailycapitalmanagementneeds,sothesubsidiary'sbankacceptancebillsareclassifiedasfinancialassetsmeasuredatfairvaluewithchangesincludedinothercomprehensiveincome.TheGrouphasnosinglebankacceptancebillforwhichimpairmentprovisionismade.Attheendofthecurrentperiod,theGroupbelievesthatthereisnosignificantcreditriskinthebankacceptancebillsheldandnosignificantlosseswillbeincurredduetobankdefaults.

6、Prepayment

（1）Prepaymentsaredisclosedbasedonaging

（2）Thetopfiveunitswithclosingbalanceofprepaymentscollectedbyprepaymentobjects

7、Otherreceivables

Item

（1）Disclosurebyage

(2)Disclosureaccordingtothenatureofthepayment

Note:ThefundsinquestionaregovernmentsubsidiesgrantedtotheGroup.TheCompanyentrusteditswholly-ownedsubsidiary,YichangCSGSiliconMaterialCo.,Ltd.,toreceivethefunds.In2014,theYichangHigh-TechZoneAdministrativeCommitteedisbursedtheentireamountofthefundstoYichangCSGSiliconMaterial.Afterreceivingthefunds,YichangCSGSiliconMaterialCo.,Ltd.transferredtheentireamounttoYichangHongtaiRealEstateCo.,Ltd.withoutproperapprovalfromtheCompany’sBoardofDirectorsorotherauthorizedbodiesatthetime.ThetransferoccurredbetweenFebruary21,2014andApril28,2014.OnDecember15,2021,theCompanyfiledatortcompensationlawsuitagainstZengNanandYichangHongtaiRealEstateCo.,Ltd.TheShenzhenIntermediatePeople'sCourtofficiallyacceptedthecaseonJanuary28,2022.Thefirst-instancetrialwasconcludedonJune21,2022attheShenzhenIntermediatePeople’sCourt.OnJune4,2024,theCompanyreceivedtheCivilJudgmentfromtheShenzhenIntermediatePeople’sCourtforthefirstinstance,whichruledtodismissalloftheCompany’sclaims.InJune2024,theCompanyfiledanappealwiththeGuangdongHighPeople’sCourt.Thesecond-instancehearingwasheldonSeptember12,2024,andthecaseiscurrentlyundersecond-instanceproceedings.

(3)ProvisionforbaddebtsBaddebtprovisionattheendoftheperiodinthefirststage

Category

ThereisnobaddebtprovisioninthesecondstageattheendoftheperiodBaddebtprovisionatthethirdstageattheendoftheperiod