2016-03-24-深交所-南_玻Ｂ_2015年年度报告（英文版）_147页_5mb

CSG HOLDING CO., LTD. 2015 Annual Report Summary

Core Content Overview

This summary provides a detailed overview of CSG Holding Co., Ltd. (also known as Southern Glass Group) for the year 2015. The report includes information on the company's important notices, financial highlights, business overview, management discussion and analysis, and key financial figures. It also outlines the company's core competitiveness, major changes in assets, and dividend policy.

Key Information

• Chairman of the Board: Zeng Nan
• CFO: Luo Youming
• Principal of the Financial Department: Ding Jiuru
• Company Website: www.csgholding.com
• Contact Email: securities@csgholding.com
• Registered & Office Address: CSG Building, No.1, the 6th Industrial Road, Shekou, Shenzhen, P.R.C.
• Postal Code: 518067
• Stock Exchange: Shenzhen Stock Exchange
• A-share Code: 000012
• B-share Code: 200012
• A-share Short Form: Southern Glass A
• B-share Short Form: Southern Glass B

Financial Highlights

2015 Financial Performance (RMB)

Quarterly Financial Highlights (RMB)

Main Business Overview

Flat Glass Industry

• Production Lines: 10 float glass lines, 2 solar rolled glass lines, 2 ultra-thin electronic glass lines, and 1 high-performance ultra-thin glass line.
• Capacity:
  • High-grade float glass: >2.2 million tons annually
  • Solar rolled glass: >0.4 million tons annually
  • Ultra-thin electronic glass: >60,000 tons annually
  • High-performance ultra-thin glass: 12 million square meters annually
• Raw Material Bases: Jiangyou, Sichuan and Yingde, Guangdong.
• Production Locations: Dongguan, Chengdu, Langfang, Wujiang, Xianning, Yichang.
• Products: High-grade float glass (thickness: 1.1mm–25mm), ultra-clear float glass, ultra-thin electronic glass (thickness: 0.2mm–1.1mm), and used in various applications such as buildings, automotive, and solar energy.
• Technological Advancements: Completed technological transformation projects in 2015, including Chengdu CSG's 700T/D second-line project and Qingyuan high-performance ultra-thin glass project.

Architectural Glass Industry

• Processing Centers: Located in Tianjin, Dongguan, Xianning, Wujiang, and Chengdu.
• Technology: Equipped with advanced glass processing and testing facilities.
• Products: Covers all types of architectural glass, including energy-saving glass.
• Market Presence: LOW-E coated insulating glass has an annual capacity of over 13.2 million square meters, capturing more than 55% of the domestic high-end market.
• Quality Certifications: Approved by UK AOQC and Australia QAS.

Solar Energy Industry

• Industry Chain: From polycrystalline silicon to PV modules and photovoltaic rolled glass.
• Production Expansion:
  • Polycrystalline silicon production capacity increased to 6,000 tons.
  • Solar cell module production capacity planned to expand from 200MW to 350MW.
• PV Power Plant Development:
  • Established Shenzhen CSG PV Energy Co., Ltd. in 2015.
  • Completed PV projects in Wujiang, Dongguan, Xianning, and Chengdu, totaling nearly 80MW.
  • Plans to build 200MW by itself and 140MW in partnership with Kibing Group during 2016–2017.

Core Competitiveness

1. Complete Industrial Chains:
   • Glass industry: quartz sand → high-quality float glass → architectural energy-saving glass.
   • Solar industry: high-purity polycrystalline silicon → silicon wafers → solar cells → modules → photovoltaic rolled glass → PV power plants.
2. Geographic Coverage:
   • Production bases established in North, East, West, South, and Central regions of China.
3. Technology Innovation:
   • Independent intellectual property in high-end float glass.
   • Leading technology in ultra-thin electronic glass and solar energy.
4. Risk Management:
   • Strong internal control system and high-level management of accounts receivable and inventory.
5. Management Team:
   • Aggressive, innovative, and experienced team with a focus on high-end products and quality consciousness.

Profit Distribution

• Dividend Policy:
  • Based on total shares as of December 31, 2015, the Company distributed RMB 3.0 per 10 shares (tax included) to all shareholders.
  • No bonus shares or conversion of capital reserve into share capital.

Risk Factors and Management Strategy

• Risks Mentioned:
  • Existing industry risks, market risks, and exchange rate risks are well described in the report.
• Management Actions:
  • Strengthened cost control and promoted differentiated, high-grade products.
  • Seized opportunities in the photovoltaic market and expanded production capacity.
  • Actively explored new markets and enhanced R&D investment to maintain competitiveness.

Summary of Key Financial Changes

• Construction in Progress: Decreased by 30.77% due to transfer to fixed assets.
• No Major Changes: In equity, fixed, or intangible assets.
• R&D Expenses: Increased by 26.43% due to enhanced investment.
• Financial Expenses: Increased by 20.37% due to higher borrowing.
• Net Cash Flow from Operating Activities: Declined by 22.29% due to increased accounts receivable.
• Net Cash Flow from Investment Activities: Declined by 35.73% due to reduced fixed asset construction payments.
• Net Cash Flow from Financing Activities: Declined by 84.02% due to increased bank loans.

Conclusion

CSG Holding Co., Ltd. demonstrated resilience in 2015 despite a challenging economic environment. The company maintained its core competitiveness through technological innovation, diversified product offerings, and strategic expansion in the solar energy sector. The management team focused on cost control, product differentiation, and R&D investment to navigate industry challenges and promote sustainable growth.