[中报]南 玻Ｂ(200012):2024年半年度报告（英文版）
原标题:南 玻Ｂ:2024年半年度报告（英文版） Chairman of the Board: CHEN LIN August 2024 Section I. Important Notice, Content and Paraphrase Board of Directors and the Supervisory Committee of CSG Holding Co., Ltd. (hereinafter referred to as the Company) and its directors, supervisors and senior executives hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the facticity, accuracy and completeness of the whole contents. Ms. Chen Lin, person in charge of the Company, Ms. Wang Wenxin, responsible person in charge of accounting and Ms. Wang Wenxin, principal of the financial department (accounting officer) confirm that the Financial Report enclosed in the semi-annual report of the Company is true, accurate and complete. All directors were present at the meeting of the Board for deliberating the semi-annual report of the Company in person. The future plans and other forward-looking statements mentioned in this report do not constitute a material commitment of the Company to investors. Investors and relevant parties should pay attention to investment risks, and understand the differences between plans, forecasts and commitments. The Company has described the risk factors and countermeasures of the Company's future development in detail in this report. Please refer to Section III. Management Discussion and Analysis. The Company is required to comply with the disclosure requirements of "Non-metallic Building Materials Related Business" in the "Self-regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 3- Industry Information Disclosure (Revised in 2023)". The Company has no plans of cash dividend distribution, bonus shares being sent or converting capital reserve into share capital. This report is prepared both in Chinese and English. Should there be any inconsistency between the Chinese and English versions, the Chinese version shall prevail. 1 Content Section I. Important Notice, Content and Paraphrase ......................................................................... 1 Section II. Company Profile & Financial Highlights .......................................................................... 5 Section III. Management Discussion and Analysis ............................................................................. 8 Section IV. Corporate Governance ...................................................................................................... 26 Section V. Environment and Social Responsibility ............................................................................. 27 Section VI. Important Events .............................................................................................................. 34 Section VII. Changes in Shares and Particulars about Shareholders .................................................. 56 Section VIII. Preferred Shares ............................................................................................................ 60 Section IX. Bonds ............................................................................................................................... 60 Section X. Financial Report ................................................................................................................ 61 2 Documents available for Reference I. Text of the financial report carrying the signatures and seals of the person in charge of the Company, the responsible person in charge of accounting and the principal of the financial department (accounting officer). II. All texts of the Company’s documents and original public notices disclosed in the papers appointed by CSRC in the report period. 3 Paraphrase
4 Section II. Company Profile & Financial Highlights I. Company Profile
1. Way of contact Whether registered address, office address and their postal codes, website address and email address of the Company changed in the report period or not □ Applicable √Not applicable The registered address, office address and their postal codes, website address and email address of the Company did not change in the report period. More details can be found in Annual Report 2023. 2. Information disclosure and preparation place Whether information disclosure and preparation place changed in the report period or not □Applicable √ Not applicable The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing semi- annual report and preparation place of semi-annual report did not change in the report period. More details can be found in Annual Report 2023. 5 3. Other relevant information Whether other relevant information changed in the report period or not □Applicable √ Not applicable IV. Main accounting data and financial indexes Whether it has retroactive adjustment or re-statement on previous accounting data □Yes √No
and Chinese accounting standards □ Applicable √ Not applicable No such differences in the report period. 2. Difference of the net profit and net assets disclosed in financial report prepared under overseas and Chinese accounting standards □ Applicable √ Not applicable No such differences in the report period. 6 VI. Items and amounts of non-recurring gains and losses √ Applicable □ Not applicable Unit: RMB
□ Applicable √ Not applicable It did not exist that other profit and loss items met the definition of non-recurring gains and losses. Explanation of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering their Securities to the Public - Non-recurring Gains and Losses as recurring gains and losses □ Applicable √ Not applicable It did not exist that non-recurring profit and loss items listed in the "Explanatory Announcement No. 1 on Information Disclosure of Companies Offering Securities to the Public - Non-recurring Profit and Loss" were defined as recurring profit and loss items in the report period. 7 Section III. Management Discussion and Analysis I. Main business of the Company during the report period (I)Main business of the Company CSG is a leading domestic brand of energy-saving glass and a renowned brand of solar PV products and display devices. Its products and technologies are well-known at home and abroad. Its main business includes R&D, manufacturing and sales of high- quality float glass, architectural glass, photovoltaic glass, new materials and information display products such as ultra-thin electronic glass and display devices, as well as renewable energy products such as silicon materials, photovoltaic cells and modules, and it provides one-stop services for photovoltaic power station project development, construction, operation and maintenance, etc. The Company owns quartz sand raw material processing and production bases in Jiangyou, Sichuan; Qingyuan, Guangdong; Fengyang, Anhui; and Beihai, Guangxi (currently under construction), which ensure a steady supply of raw materials for the Company's glass production. Photovoltaic glass business CSG entered the photovoltaic glass manufacturing industry in 2005. As one of the earliest enterprises engaged in manufacturing in this field in China, the Company is based on independent research and development and has formed a full closed-loop production capacity from photovoltaic glass original sheet production to deep processing, covering 1.6-4mm thickness deep processing products. With nearly 20 years of experience in the production of photovoltaic glass, CSG has accumulated a solid foundation in key equipment and technologies such as kiln, calendaring and deep processing, and its product quality enjoys a high status and reputation in the industry, and has become an important and even strategic cooperative supplier of global module leading enterprises. The ultra-thin photovoltaic glass below 2mm developed and promoted by the Company is a high-quality packaging material for lightweight double-glass photovoltaic modules, and the product capacity, quality and comprehensive manufacturing yield continue to maintain the forefront of the industry. In the context of the era of carbon peak and carbon neutrality, the Company is firmly optimistic about the long-term development of the photovoltaic new energy industry, resolutely responds to the national "dual carbon" strategic goal, and continuously improves and enhances the large-scale layout and business competitiveness of the Group's photovoltaic glass on the basis of relying on the national "14th Five-Year Plan" and the Company's own strategic development plan. As of June 2024, the Company has a total of 9 photovoltaic rolled glass riginal sheet production kilns and supporting deep processing production lines in Dongguan, Wujiang, Fengyang, Xianning and Beihai, of which the first kiln and supporting processing lines in Beihai, Guangxi are in the trial production stage, and the second kiln and supporting processing lines and the technical upgrading project of Wujiang photovoltaic line are under construction in an orderly manner as planned. After the project under construction and technical transformation project are put into production, the Company's photovoltaic glass production capacity will be greatly increased, and the scale advantage will be further improved and consolidated. As the most potential clean energy, photovoltaic will have a broader development space in the future, the technological development speed of the industry will be more rapid, and the requirements for photovoltaic glass will be more professional and 8 personalized. The Company has rich experience and advanced technological R&D advantages in production technology, process concepts, product awareness. In the future, the Company will continue to improve the level of R&D, meet the market demand through technological innovation, optimize the product structure, and strive to become a more professional photovoltaic glass supplier. Architectural glass business As one of the largest high-end building energy-saving glass suppliers in China, CSG integrates R&D and design, technical consulting, production and manufacturing, and marketing and service in the architectural glass business. It always aims to “build green energy-saving products and create quality life” and forms a CSG brand image with quality, service and continuous R&D as its core competitiveness, which is strongly competitive in foreign markets as well. The Company has the world's leading glass deep processing equipment and testing instruments, and its products cover all kinds of engineering and architectural glass. Currently, the Company has seven deep processing bases of energy-saving glass in Tianjin, Dongguan, Xianning, Wujiang, Chengdu, Zhaoqing and Xi’an, and the layout of national bases is being perfected. CSG’s architectural glass business adheres to the customized business strategy of trinity of technical service, marketing, R&D and manufacturing, relying on its own manufacturing and R&D strength, as well as the marketing and service network formed by domestic and overseas offices, to meet the personalized needs of domestic and foreign customers and construction projects. The Company's R&D and application level in coating technology keep pace with the world, the high-end product technology is internationally leading, and the high-quality energy-saving and environmentally friendly LOW-E insulating glass continues to lead the domestic high-end market share. In 2017, CSG’s low-E coated glass was awarded the title of Single Champion Product by the Ministry of Industry and Information Technology, and it passed the review again in March 2024, which fully proves the leading position of CSG’s architectural glass in the industry. Under the background of the "dual carbon" goal and the national green energy-saving building requirements, the Company has taken the lead in independently developing many energy-saving products, such as innovative and world-leading "Ice Kirin" glass series products, thermal insulation products, BIPV products, etc., among which the "Ice Kirin" glass series products have received unanimous praise from the market for their high performance and stability relying on the Company's advanced coating technology, and have become the benchmark in the domestic product market. The innovation and R&D of energy-saving products with higher energy efficiency is important to the energy conservation and emission reduction of newly constructed buildings and vital to the energy-conservation-oriented transformation of existing buildings. In order to meet the market demand for product innovation, the Company will continue to conduct innovation, so as to provide products with higher energy efficiency for the market. The Company’s quality management system for engineering and architectural glass has been respectively approved by organizations of UK AOQC and Australia QAS. The product quality which meets the national standards of the US, the UK and Australia enables CSG has an advantage in the international tendering and bidding. Since 1988, CSG’s engineers and technicians have been continuously participating in the formulation and compilation of various national standards and industry standards. All kinds of high-quality engineering architectural glass provided by the Company are widely used in landmark buildings such as major city CBDs and transportation hubs at home and abroad, which are too numerous to mention. In addition, the Company has always adhered to the intelligent transformation and digital transformation as the key increment of the development of architectural glass business. It has continuously invested and accumulated rich experience in the research of production automation, intellectualization, information technology and equipment, and the efficiency improvement of intelligent upgrading and transformation of traditional equipment. With technological progress and process optimization, the Company has reduced production manpower consumption, material consumption and energy consumption, actively promoting the Company’s transformation and upgrading to achieve intensive manufacturing and high-quality development. 9 Float glass business In the field of float glass, CSG has 10 advanced float glass production lines in Dongguan, Chengdu, Langfang, Wujiang and Xianning. In the first half of 2024, one production line of Chengdu Float Company was shut down for upgrading and renovation, and as of June 2024, there are a total of 9 production lines in production. The products that cover high-quality float glass and ultra- white float glass with various thicknesses and specifications of 1.6-25 mm are trusted by customers because of their quality. CSG float glass products are high-end products that can be directly used in downstream deep processing, and the proportion of differentiated glass products with special specifications and special application scenarios such as ultra-white, ultra-thin and ultra- thick is large, which are widely used in high-end building curtain walls, decoration and furniture, reflectors, automobile windshields, scanners and photocopiers transmitting plates, home appliance panels, display protection and other application fields with high requirements on glass quality. CSG has established long-term and stable business cooperation with many well-known processing enterprises. The profit level of the float glass business is generally positively correlated with the level of real estate completion data, and is also affected by multiple factors such as current energy and raw material prices, product structure, and enterprise management level. Differentiated glass products have higher added value due to specific application scenarios, higher production process difficulties, stable demand, and relatively proactive pricing by manufacturers. In response to the downward pressure on the market, the Company focuses on improving management efficiency, improving the level of lean production of conventional products, firmly implementing the differentiated competition strategy, carefully cultivating and developing differentiated product markets, and continuously increasing the proportion of high-value-added product sales, such as ultra-white products, so as to continuously consolidate and enhance the industry competitiveness of the Company’s float glass business. In the first half of 2024, the new construction and completion volume in the real estate industry showed a significant decline compared with the same period last year, the supply and demand relationship in the real estate market changed, the domestic architectural glass market demand continued to slow down, the market was declining, and the float glass industry was undergoing cyclical adjustments. However, with the continuous promotion of the national "dual carbon" policy and the improvement of people's living standards, the market demand for differentiated products such as ultra-white float glass is relatively stable. Electronic glass and display business For more than a decade, CSG Electronic Glass has always adhered to technology leadership, attached importance to R&D and innovation, broken through market barriers with independent intellectual property rights and independent innovation, and firmly followed the development route of quality priority. After more than a decade of continuous cultivation and accumulation, CSG Electronic Glass has completed the comprehensive coverage of electronic glass products in various application scenarios of high, medium and low-end applications. It actively explores new markets and developed new applications in intelligent consumer electronics terminals, touch components, automotive window glass, vehicle displays, medical equipment, industrial control commercial displays, smart homes and other application fields, and the market share and brand effect of the Company's medium- alumina and high-alumina electronic glass products remain stable. CSG has long been committed to becoming an industry-leading glass material solution provider, and it will develop new application materials in the fields of smart home, vehicle display, advanced medical, new energy vehicles, and smart home appliances in the future. In the touch display field, CSG has formed a complete touch industry chain from vacuum magnetron sputtering coating, 3A (AG, AR, and AF) cover plate processing and fine pattern lithography processing, to touch display modules. The main business includes optical coating materials, vehicle-mounted cover plates and vehicle-mounted touch panels. Among them, the optical coating material segment includes the two business types of ITO conductive glass and ITO conductive film, and the products are 10 positioned at middle and high-end customers at home and abroad and are concentrated in differentiated high-value-added ones. The vehicle-mounted cover plate business segment comprises a variety of products, including vehicle-mounted AG glass, vehicle- mounted 2A (AR and AF) cover plates, vehicle-mounted 3A cover plates, and customized cover plates of special functions. These products are supplied indirectly to renowned domestic and international automotive brands through downstream customers of vehicle-mounted device manufacturers. Solar energy business CSG Group is a pioneer in the field of photovoltaic product manufacturing in China, with a complete industrial chain covering high-purity crystalline silicon, silicon wafers, solar cells, modules and the investment and operation of photovoltaic power plants. CSG has three national-level scientific research and technology platforms and seven provincial-level scientific research and technology platforms, including the "National and Local Joint Engineering Laboratory for Semiconductor Silicon Material Preparation Technology" and the "National Enterprise Technology Center". In recent years, under the trend of "dual carbon", the photovoltaic track has become hot, and the expansion momentum of different links in the industrial chain is strong. After entering 2024, the supply-demand imbalance has led to a significant decline in market prices at various links of the industrial chain, market competition has intensified in the short run, and the elimination of outdated production capacity has accelerated and the photovoltaic industry has entered a deep water zone of reshuffle. In the long run, with the increasing demand for clean energy and continuous technological progress around the world, the photovoltaic industry will continue to maintain a steady and rising development trend and make greater contributions to the transformation and upgrading of the energy structure. The subsidiaries of CSG's photovoltaic sector fully implement the strategic decisions and arrangements made by the Group's management. The low-energy-consuming project of Yichang base is smoothly promoted. The 50,000 tons/year high-purity crystalline silicon project in Qinghai base is under construction as planned, which will further expand the scale of the Group's solar energy business and enhance the overall competitiveness of the Group after it is put into operation. Dongguan base increases efforts to develop differentiated product markets and enhance market share. Shenzhen base continues to increase the development of power station projects. (II) Overview of operation during the report period In the first half of 2024, under the impact of multiple factors such as the complicated and volatile international economic situation, increase in trade barriers, deep adjustment of the domestic real estate sector as well as accelerated decline in the prices throughout the photovoltaic industry due to periodical supply-demand imbalance, the overall situation of the industries that the Company engaged in was severe, the pressure on the enterprises’ production and operation increased, and the operational quality and efficiency of the industry was under stress. With the ups and downs of the economic environment, the Company maintained its strategic focus and actively responded to the market changes, analyzed the market and industry dynamics in a timely manner, duly adjusted the business strategies, and fully implemented lean management and cost reduction and efficiency increase to achieve maximum control of various costs. Meanwhile, the Company gave full play to its advantages of scale and industrial chain, deepened the differentiated business strategy, and strived to maximize the economic benefits. In the first half of 2024, the Company’s operating revenue totalled RMB 8.079 billion, decreasing by 4% year-on-year; its net profit reached RMB 0.721 billion, decreasing by 18% year-on-year; and the net profit attributable to shareholders of the listed company was RMB 0.733 billion, decreasing by 18% year-on-year. 11 Glass business segment Photovoltaic glass: In the first half of 2024, the supply-demand mismatch in the photovoltaic market remained prominent, with a significant decline in industry chain prices and factors such as international trade barriers,, and the photovoltaic industry was in a cyclical adjustment phase. The Company was fully dedicated to providing high-quality and high-performance photovoltaic glass products while perfecting its industrial layout and enhancing its economies of scale. It unswervingly implemented the differentiated business strategy and continued to promote the lean production management to improve efficiency. In the face of the industry’s rapid technological upgrading, the Company quickly adapted to market needs and strengthened technological innovation, achieving significant results in the research and sales of differentiated products.. The Company independently developed high- transmittance double-coated photovoltaic glass, colourless double-coated photovoltaic glass, anti-glare photovoltaic glass, dust- proof photovoltaic glass and so on. These products meet the customers’ regular performance requirements while greatly satisfying their specific needs in terms of high transmittance, aesthetics, anti-glare, cleaning, etc., representing a perfect combination of industrialisation and humanisation. Facing the price fluctuations in the photovoltaic glass market, the Company focused on improving quality and efficiency and differentiated layout. On the one hand, it relied on its own resource endowment and gave full play to the advantages of underlying technology to empower the enhancement of production efficiency and cost reduction. On the other hand, precisely combining with the downstream customers’ demand for product diversification, it matched the characteristics of different battery technologies to develop and promote differentiated products, giving photovoltaic glass various characteristics such as high efficiency, aesthetics and scenarization. By putting various important management initiatives in place, the Company’s photovoltaic glass business achieved steady operation in the volatile market condition, and gradually formed a core competitiveness of sustainable development. Architectural glass: As the golden brand of CSG, the Company’s architectural glass business has been equipped with quality, service and continuous R&D capabilities that match the brand. Focusing on the continuous improvement of the building energy- saving standards and high-rise building safety standards, the Company strengthens brand building and adheres to the customized business strategy integrating technical service, marketing, and R&D and manufacturing, to meet the personalized needs of domestic and foreign customers and construction projects. As the Company’s share in the domestic high-end construction market continues to rise, it also maintains a leading position in market scale and profitability in the field of deep processing within the same industry. In the first half of 2024, faced with a complex external economic situation, the Company’s architectural glass business adjusted its business strategies, actively explored the market to seek diversified development, strengthened the operation of product differentiation, and thus the overall operation remained stable. By refining the market layout, the Company continued to increase the signing of high-quality projects, which resulted in the drastic year-on-year increase of the order compounding degree. Furthermore, it strongly advanced the business of customized products to explore new business growing points, continued to increase the proportion of sales of differentiated products to enhance the overall product profitability, and expanded the influence of the brand of CSG by strengthening brand promotion and opening up emerging markets. Moreover, it promoted the digital transformation to improve the automation and informatization level of production line and constantly enhance the production efficiency of equipment, and continuously strengthened the cost reduction and efficiency increase and lean management to improve core competitiveness. With adoption of this series of initiatives, the Company’s architectural glass business achieved a 12 steady operation in current competitive market environment, while the development of product diversification further enhanced the market competitiveness and service capabilities of architectural glass. Float glass: In the first half of 2024, the industry went through a cyclical adjustment. Facing the severe business environment, the Company firmly implemented the differentiated product strategy. On the one hand, it focused on the domestic high-end ultra-white glass market, created “Blue Diamond”, a high-end brand of ultra-white glass series, and continuously increased the market share to become the leader in the industry segment. On the other hand, it constantly produced and marketed more high value-added products such as large-size and ultra-thick products and high-grade products, to stay among the top in the segment market of high- grade float glass and enhance profitability. At the same time, the Company continued to reduce costs and increase efficiency, effectively reducing the procurement cost by coordinating and organizing the centralized procurement of bulk raw materials. The production efficiency was steadily improved by strengthening the lean management of full production process. Electronic glass and display business segment According to the data released by industry research organizations, after a downturn of more than two years, the global shipment volume of smartphones in the first quarter of 2024 amounted to approximately 290 million units, up 8.9% year-on-year, and this figure is expected to grow by 4.0% for the year to reach 1.21 billion units. However, there is still a wide gap compared with 1,405 million units in 2018, and the global smartphone market is still facing certain challenges. In the first half of 2024, with the domestic electronic glass market being impacted by the continued release of new production capacity, the contradiction between supply and demand became more intense, the industry was more competitive, the price in the electronic glass market continued to decline, and the industry’s operational efficiency was affected to a certain extent. Facing the severe market environment, the Company’s electronic glass business constantly strengthened the research and development and promoted the cost reduction and efficiency increase in terms of internal management. For marketing, it continued to actively explore new markets and develop new applications in intelligent electronic terminals, touch control modules, vehicle- mounted displays, medical equipment, industrial automatic control displays & commercial displays, smart home and other fields. In the first half of the year, the Company’s overall market share of medium-alumina and high-alumina electronic glass products remained stable. For display devices, in the first half of 2024, the Company deeply ploughed its traditional dominant segment of optical coating material business. On the other hand, it continued to develop its vehicle-mounted cover plate business, the newly expanded project Phase II achieved mass production and the sale volume increased substantially compared with the same period last year. For vehicle-mounted touch panel segment, the Company’s production and sales volumes declined compared with the same period last year due to the shrinking global demand for consumer electronics and the popularity of in-cell touch technology. Solar energy business segment In the first half of 2024, China’s photovoltaic new installation scale and exports of photovoltaic products continued to grow and the overall demand was improving. However, the price of main products in the industrial chain was substantially affected by intensified market competition due to concentrated rapid growth of the supply, and thus declined sharply year-on-year. The solar photovoltaic industry is facing serious challenges of supply-demand mismatch, accelerated elimination of backward production capacity and persistently depressed product-end price. Under the background of industry reshuffle, all processes of the whole 13 industrial chain are being operated under pressure. In the first half of 2024, the overall profitability of photovoltaic enterprises fell dramatically year-on-year, losses for almost all types of business from silicon materials to silicon wafers and from solar cells to modules. The photovoltaic industry is currently in the course of gradually returning to rational development from explosive growth, and the industrial chain has wholly entered a period of adjusting and reshaping market pattern. As the photovoltaic industry entered a new round of adjustment cycle, with the cost pressures and squeezed profit margins as well as under the double challenges of intensified market competition and slowdown in the growth rate of end demand, the solar photovoltaic business segment of the Company was impacted significantly in the first half of 2024 and the Company took actions promptly to address this impact. Through the analysis of market trends and industry development and dynamics, it responded quickly to market changes, reasonably planned its pace of production and operation. By improving the process, it enhanced the product quality, strengthened lean management, deeply dug the potential of equipment, fully implemented the strategy of cost reduction and efficiency increase, and thus effectively offset some of the market pressures. II. Core Competitiveness Analysis CSG Group, one of the most competitive and influential large-scale enterprises in China's glass industry and new energy industry, is committed to the development of energy conservation renewable, and new material industry. After four decades of development and accumulation, the Company has gradually formed a comprehensive competitive advantage in terms of products and brands, technology research and development, industrial chain and layout, talent team, and green development. 1. Product and brand advantages "CSG" is a famous brand of domestic energy-saving glass, ultra-thin electronic glass, display and solar photovoltaic products. Its products and technology are well-known at home and abroad. The trademarks "南玻" and "SG" held by the Company are both "Famous Trademark of China". The Company has been listed in the "Preferred Brand of Architectural Glass" in Door and Window Curtain Wall Industry for many years and the "Top 20 Building Materials Enterprises in China" in 2023. "CSG" brand was recognized by the United Nations Industrial Development Organization as the fourth batch of "International Reputation Brand" in 2018. CSG’s low-E coated glass and ultra-thin electronic glass were awarded the title of "Single Champion Product" by the Ministry of Industry and Information Technology, and it is the only manufacturer in the domestic glass industry that has two single champion products at the same time. The Company was awarded the title of "Outstanding Green Manufacturing Enterprise" in the building materials industry of Guangdong Province for the period of 2018-2022, and the title of “Shenzhen Top 500 Enterprises for 2023” (ranking No. 94). 2. Technology research and development advantages The Company has always valued technological R&D and adopted independent R&D as its foundation since its establishment. As of 30 June 2024, the Company has had a total of 22 national high-tech enterprises, 2 national-level single champion products in the manufacturing industry, 1 national-level engineering laboratory, 1 national-level enterprise technology centre, 5 national enterprises with intellectual property advantages, 1 national intellectual property demonstration enterprise, 6 national-level specialized, sophisticated, distinctive, and innovative enterprises (“Little Giants”), 2 provincial-level expert workstation, 1 provincial-level doctoral workstation, 13 provincial-level enterprise technology centres, 6 provincial-level engineering technology research centres, 2 provincial-level engineering research centres, 4 provincial-level demonstration enterprises for intellectual property construction, 1 provincial-level intellectual property demonstration enterprise, 7 provincial-level “Little Giants”, 1 provincial-level government quality award, 10 provincial-level scientific and technological progress awards, and 4 provincial-level patent awards. As of 30 June 2024, the Company has applied for a total of 3,210 patents, including 1,383 invention patents, 1,814 14 utility model patents, and 13 design patents. Moreover, the Company has had a total of 2,361 authorized patents, including 540 invention patents, 1,808 utility model patents, and 13 design patents. 3. Industrial chain and layout advantages The Company has three complete industrial chains of energy-saving glass, electronic glass and display, and solar photovoltaic glass. With the continuous improvement of the technological level of each process of the industrial chains, the Company’s industrial advantage becomes obvious; meanwhile, the Company possesses a complete industry layout, with production bases located in South China, North China, East China, Southwest China, Central China, and Northwest China. 4. Talent team advantages The Company’s advantage in talent teams is mainly reflected in two aspects: On the one hand, the Company has established a strong R&D team and a powerful R&D system. Through the construction of the core technical team, continuous R&D investment, and abundant technical reserves, it has constituted an important technology and innovation support for the Company’s strategies. Meanwhile, it has established Industry-University-Research cooperation, actively cooperating with domestic colleges and universities which are in advantage in silicate materials industry, to accelerate the transformation of scientific research results, and to strengthen basic research; on the other hand, an excellent and stable management team is one of the most fundamental guarantees for the Company’s rapid and stable development. The Company has formed a good echelon training mechanism for professional managers. At present, the Company’s senior management team has comparative advantages in multiple aspects, such as academic background, professional quality, knowledge base, management philosophy and experience. 5. Green development advantages With the continuous impetus of the “dual carbon” goals, the Company has taken active actions in various carbon-related fields. For example, the Company has widely conducted professional training on carbon emission management to improve the ability of relevant personnel to better cope with carbon-related affairs. Meanwhile, the Company has actively promoted through-life carbon （未完）  |