Company Code：600438 Abbreviation: Tongwei Co., Ltd.
Tongwei Co., Ltd.2020 Annual Report
April 13, 2021
Important NotesI. The Board of Directors and Board of Supervisors, as well as directors and the management ofthe Company guarantee that the present Annual Report is true, accurate and complete incontents without false record, misleading statement or major omission, and undertake theindividual and joint legal responsibilities therefore.II. All directors of the Company attended the board meeting.III. Sichuan Huaxin (Group) CPA Firm (Special General Partnership) has provided a standard andunqualified audit report.IV. Xie Yi, head of the Company, Zhou Bin, the person in charge of accounting work, and LeiJiaowen, the person in charge of the accounting firm (accountant in charge) announce toguarantee the truth, accuracy and integrity of financial reports in the Annual Report.
V. Profit Distribution Plan or Capital Reserves Share Capitalization Plan for the reporting period,reviewed by the Board of DirectorsAccording to the capital and investment situation of the Company in 2021, based on the currentgeneral capital 4,501,548,184 shares of the Company, a cash dividend of RMB 2.41 for every 10 shares(including tax) is distributed to all shareholders of the Company, and the total cash dividend is RMB1,084,873,112.34 yuan. The plan has been reviewed and approved at the eighteenth meeting of the seventhboard of directors of the Company, and needs to be submitted to the shareholders meeting of the Companyfor review and approval.VI. Risk statement of forward-looking statements
√Applicable □Inapplicable
The forward-looking statements of the Company regarding its future development strategies andbusiness plans do not constitute any substantial commitment of the Company to investors; and theinvestors should pay attention to risks.VII. Is any capital occupied by a controlled shareholder or its related parties for non-operatingpurpose?NoVIII. Is there any external guarantee that violates the prescribed decision-making procedures?NoIX. Whether more than half of the directors cannot guarantee the authenticity, accuracy and
completeness of the annual report disclosed by the Company?NoX. Major risk warning
The Company had already elaborated possible risks in this Report. Please refer to the contents aboutthe possible risks and countermeasures included in the discussion and analysis of the Company's futuredevelopment in Section IV Discussion and Analysis on Operation.
XI. Others
□Applicable √Inapplicable
*The 2020 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any discrepancy arises between the English translation and theoriginal Chinese version, the Chinese version shall prevail. The English version here was only used for investors’ reference.
Table of Contents
Section I Definition ...... 4
Section II Company Profile and Major Financial Indexes ...... 5
Section III Summany on Company Business ...... 9
Section IV Discussion and Analysis on Operation ...... 14
Section V Important Matters ...... 40
SectionVI Changes in Common Stock Equity and Shareholders ...... 70
SectionVII Preferred Shares ...... 82
SectionVIII Conditions on Directors, Supervisors and Senior Management and Staff ...... 83
Section IX Company Governance ...... 90
Section X Information on Company Bonds ...... 92
Section XI Financial Report ...... 93Section XII List of Documents Available for Inspection……………………………………….…246
Section I DefinitionI. DefinitionUnless otherwise required, the following terms shall have the following meanings in this report:
| Definition of common terms | ||
| Tongwei Co., Ltd., Company, the Company | refers to | Tongwei Co., Ltd. |
| Tongwei Co., Ltd. | refers to | Tongwei Co., Ltd. |
| Yongxiang | refers to | Sichuan Yongxiang Co., Ltd. |
| Yongxiang Polysilicon | refers to | Sichuan Yongxiang Polysilicon Co., Ltd. |
| Yongxiang New Energy | refers to | Sichuan Yongxiang New Energy Co., Ltd. |
| Inner Mongolia Tongwei | refers to | Inner Mongolia Tongwei High-purity Crystalline Silicon Co., Ltd. |
| Yunnan Tongwei | refers to | Yunnan Tongwei High- purity Crystalline Silicon Co., Ltd. |
| Tongwei New Energy | refers to | Tongwei New Energy Co., Ltd. |
| Tongwei Solar (Hefei) | refers to | Tongwei Solar (Hefei) Co., Ltd. |
| Tongwei Solar (Anhui) | refers to | Tongwei Solar (Anhui) Co., Ltd. |
| Tongwei Solar (Chengdu) | refers to | Tongwei Solar (Chengdu) Co., Ltd. |
| Tongwei Solar (Meishan) | refers to | Tongwei Solar (Meishan) Co., Ltd. |
| Tongyu Property | refers to | Chengdu Tongyu Property Co., Ltd. |
| Leshan Phase-II 50,000MT High-purity Polysilicon Project | refers to | Technical improvement project for PV silicon material (Phase-II high-purity polysilicon project) |
| Baoshan Phase-I 50,000MT High-purity Polysilicon Project | refers to | High-purity polysilicon green energy project (Phase-I 50,000MT high-purity polysilicon project) |
| Baotou Phase-II 50,000MT High-purity Polysilicon Project | refers to | Manufacturing project of PV silicon material (Phase-II 50,000MT high-purity polysilicon project) |
| Meishan Phase-I 7.5GW High-efficiency Solar Cell Project | refers to | The Phase-I application project of domestic intelligent equipment (system) with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells |
| Meishan Phase-II 7.5GW High-efficiency Solar Cell Project | refers to | Smart factory project with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells (Meishan Phase-II) |
| Jintang Phase-I 7.5GW High-efficiency Solar Cell Project | refers to | Smart interconnected factory project with an annual capacity of 7.5GW high-efficiency crystalline silicon solar cells ((Jintang Phase-I) |
| Leshan Monocrystalline Ingots Cutting Project | refers to | 15GW monocrystalline ingots cutting project |
| Tongwei Media | refers to | Chengdu Tongwei Culture Media Co., Ltd. |
| China Securities Regulatory Commission/CSRC | refers to | China Securities Regulatory Commission |
| Shanghai Stock Exchange | refers to | Shanghai Stock Exchange |
| Designated information disclosure media | refers to | China Securities Journal, Shanghai Securities Journal, Securities Daily, Securities Times |
| LONGi | refers to | Xi'an Longi Green Energy Technology Co., Ltd. |
| Zhonghuan | refers to | Tianjin Zhonghuan Semiconductor Co., Ltd. |
| Trina Solar | refers to | Trina Solar Co., Ltd. |
| Jinko Solar | refers to | Jinko Solar Co., Ltd. |
| Sichuan Jinko | refers to | Sichuan Jinko Solar Co., Ltd. |
| Metco Silicon Energy | refers to | Baotou Metco Silicon Energy Co., Ltd. |
| Sichuan Huaxin | refers to | Sichuan Huaxin (Group) CPA Firm (Special General |
| Partnership) | ||
| Conversion efficiency | refers to | Measure the ability of solar cells to convert light energy into electrical energy |
| Convertible bond | refers to | Convertible corporate bond |
| W | refers to | Watt, the unit of power |
| KW, MW, GW | refers to | Power unit, 1KW=1000W, 1MW=1000KW, 1GW=1000MW |
| High-purity polysilicon | refers to | High-purity metal silicon with purity greater than 99.9999999%. |
| 166mm cell | refers to | The cell produced with M6 silicon wafer (with a length of 166mm) with area 12.21% larger than that of conventional M2 silicon wafer (with a length of 156.75mm). |
| 210mm cell | refers to | The cell produced with M12 silicon wafer (with a length of 210mm) with area 80.5% larger than that of conventional M2 silicon wafer (with a length of 156.75mm). |
| PERC cell | refers to | Passivated Emitter and Rear Contact, a high-efficiency crystalline silicon solar cell structure, where a passivation layer forms on the back surface of AL2O3 film or SiNX to deal with the high carrier recombination on the back surface of all aluminum back surface field solar cell, and then the film will be opened to make the aluminum back surface field effectively contact with the silicon substrate. |
| TOPCON cell technology | refers to | Tunnel Oxide Passivated Contact, where an ultra-thin tunnel oxide and a heavily doped polysilicon thin film are prepared on the surface of the cell to form a passivation contact structure, thus increasing the open-circuit voltage and short-circuit current of the cell and then improving the photoelectric conversion efficiency rate of the cell. |
| HJT cell technology | refers to | Hetero-junction with Intrinsic Thin-layer, a high-efficiency crystalline silicon solar cell structure, a hybrid solar cell made of crystalline silicon substrate and amorphous silicon thin film, i.e. adding a non-doped (intrinsic) hydrogenated amorphous silicon thin film between P-type hydrogenated amorphous silicon and N-type hydrogenated amorphous silicon and N-type silicon substrate. HJT cell has the advantages of low process temperature, good passivation effect, high open-circuit voltage, double-sided power generation, etc. |
| CTM value | refers to | The percentage of the total output power of the module to the cell power shows the degree of module power loss. The higher CTM value shows the smaller degree of module package power loss. |
| Reporting period | refers to | From January 1, 2020 to December 31, 2020 |
| CPIA | refers to | China Photovoltaic Industry Association |
| IRENA | refers to | International Renewable Energy Agency |
| Chinese name | 通威股份有限公司 |
| Abbreviation of Chinese name | 通威股份 |
| English name | TONGWEI CO., LTD. |
| Abbreviation of English name | TONGWEI CO., LTD. |
| Legal representative | Xie Yi |
II. Contact and Contact Information
| Secretary of the Board of Directors | Representative of Securities Affairs | |
| Name | Yan Ke | Li Huayu |
| Address | Tongwei International Center (TIC), No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu | Tongwei International Center (TIC), No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu |
| Tel: | 028-86168552 | 028-86168553 |
| Fax | 028-85199999 | 028-85199999 |
| yank@tongwei.com | lihy05@tongwei.com |
| Registered address | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu |
| Postal code | 610041 |
| Business address | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu |
| Postal code | 610041 |
| Website | http://www.tongwei.com.cn |
| zqb@tongwei.com |
| Information disclosure media designated by the Company | China Securities Journal, Shanghai Securities News, Securities Daily, Securities Times |
| Website designated by CSRC for publishing annual report | www.sse.com.cn |
| Place of preparing annual report | Securities Department of the Company |
| Stock information | ||||
| Type | Stock exchange | Stock abbreviation | Stock code | Stock abbreviation before change |
| A-shares | Shanghai Stock Exchange | Tongwei Co., Ltd. | 600438 | |
| Accounting Firm engaged by the Company (domestic) | Name | Sichuan Huaxin (Group) CPA Firm (Special General Partnership) |
| Business address | 28th Floor, Jinmao Lidu South, No. 18, Ximianqiao Street, Chengdu | |
| Name of the accountants with signature | Feng Yuan, He Shoufu, Gou Jing | |
| Sponsor institutions that perform continuous supervision duties during the reporting period | Name | China Securities Co., Ltd. |
| Business address | Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing | |
| Name of sponsor representatives with signature | Pu Fei, Liu Bo | |
| Period of continuous supervision | Continuous supervision period of convertible bonds: from March 18, 2019 to December 31, 2020 | |
| Sponsor institutions that perform continuous | Name | China Securities Co., Ltd. |
| Business address | Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing |
| supervision duties during the reporting period | Name of sponsor representatives with signature | Li Puhai, Pu Fei |
| Period of continuous supervision | Continuous supervision period of non-public offering: from December 10, 2020 to December 31, 2021 |
| Major accounting data | 2020 | 2019 | Increase/decrease in this period over last year (%) | 2018 |
| Operating revenue | 44,200,270,334.23 | 37,555,118,255.70 | 17.69 | 27,535,170,274.25 |
| Net profit attributable to shareholders of the listed company | 3,607,923,359.56 | 2,634,568,828.17 | 36.95 | 2,018,746,008.65 |
| Net profit net of non-recurring gains and losses attributable to shareholders of the listed company | 2,408,554,229.37 | 2,314,484,711.22 | 4.06 | 1,909,390,964.39 |
| Net cash flow from operation activities | 3,024,927,931.94 | 2,357,465,207.68 | 28.31 | 3,099,620,044.15 |
| At the end of 2020 | End of 2019 | Increase/ decrease at the end of this period over last year (%) | At the end of 2018 | |
| Net assets attributable to shareholders of the listed company | 30,541,405,029.73 | 17,577,046,993.09 | 73.76 | 14,737,718,118.23 |
| Total assets | 64,251,948,070.91 | 46,820,950,745.60 | 37.23 | 38,483,631,552.68 |
| Major financial indicators | 2020 | 2019 | Increase/decrease in this period over last year (%) | 2018 |
| Basic earnings per share (yuan/share) | 0.8581 | 0.6786 | 26.45 | 0.5200 |
| Diluted earnings per share (yuan/share) | 0.8466 | 0.6558 | 29.09 | 0.5200 |
| Basic earnings per share net of non-recurring gains and losses(yuan/share) | 0.5729 | 0.5961 | -3.89 | 0.4918 |
| Weighted average return on equity (%) | 16.13 | 16.14 | reduce by 0.01ppt | 14.43 |
| Weighted average return on equity net of non-recurring gains and losses（%） | 10.77 | 14.18 | reduce by 3.41 ppt | 13.65 |
| 1st Quarter (January - March) | 2nd Quarter (April - June) | 3rd Quarter (July - September) | 4th Quarter (October - December) | |
| Operating revenue | 7,825,137,178.03 | 10,913,464,753.53 | 12,939,507,273.67 | 12,522,161,129.00 |
| Net profit attributable to shareholders of the listed company | 344,466,430.76 | 665,992,893.50 | 2,322,106,738.43 | 275,357,296.87 |
| Net profit net of non-recurring profit and loss attributable to shareholders of the listed company | 316,119,847.57 | 642,933,054.92 | 953,578,016.12 | 495,923,310.76 |
| Net cash flow from operating activities | 434,113,263.66 | 582,042,704.85 | 1,022,333,994.49 | 986,437,968.94 |
| Non-recurring profit and loss items | Amount in 2020 | Note (if applicable) | Amount in 2019 | Amount in 2018 |
| Profit and loss on disposal of non-current assets | 1,541,869,733.03 | 149,118,467.74 | 47,863,656.09 | |
| Government subsidies included in current profit and loss, but except the government subsidies closely related to the normal operating businesses of the Company, complying with stipulations of national policies and continuously enjoyed rationally or | 296,657,874.92 | 204,753,562.81 | 79,650,132.05 |
| quantitatively based on a certain standard | ||||
| Profit or loss from debt restructuring | -1,162,174.00 | |||
| Net current profit and loss of the subsidiaries acquired in business combination involving entities under common control from the beginning of the period to the combination date | -1,555,296.53 | |||
| In addition to the effective hedging business related to the normal business operations of the Company, the fair value gains and losses arising from holding transactional financial assets, derivative financial assets, transactional financial liabilities, and derivative financial liabilities, as well as the investment income from the disposal of transactional financial assets, derivative financial from assets, transactional financial liabilities, derivative financial liabilities and other debt investments; | 14,385,110.27 | |||
| Non-operating income and expenses other than aforementioned items | -439,396,332.17 | 29,661,420.53 | 5,130,754.97 | |
| Affected amount of minority equity | -4,655,892.34 | -1,687,142.53 | -1,470,212.96 | |
| Affected amount of the income tax | -209,491,363.52 | -60,600,017.60 | -20,263,989.36 | |
| Total | 1,199,369,130.19 | 320,084,116.95 | 109,355,044.26 |
Note: Core businesses of the Company are in the dashed boxes
In agriculture segment, the major business of the Company is the research and development,production and sales of aquatic feed, livestock feed and other products. Among them, aquatic feed hasalways been the core product of the Company and the main profit source of the Company in agricultureand animal husbandry segment. As of the end of the reporting period, the Company owns more than 70subsidiaries involved in feed business with a business model of adopting on-site production andestablishing a peripheral sales coverage, while providing effective technical, financial and othersupporting services to farmers. The production and sales network of the Company has covered the mostparts of China and Southeast Asian countries such as Vietnam, Bangladesh, and Indonesia.
In new energy segment, the Company focuses on the research, production, and sales of high-puritypolysilicon and solar cells, and is committed to the investment, construction and operation andmaintenance of the "Fishery& PV Integration" powerplant. As of the end of the reporting period, theCompany has formed an annual capacity of 80,000MT of high-purity polysilicon, and an annual capacityof 27.5GW of solar cells, of which the annual capacity of monocrystalline cells is 24.5GW.
On the comprehensive application, the Company focuses on the development and construction oflarge-scale "Fishery& PV Integration" bases, and strives to create a model with core competitiveadvantages of ecological farming + green energy, strengthens the coordinated development of industries,explores new aquaculture models by selecting high-quality water resources and on the premise of ensuringpower consumption conditions, continuously promotes the large-scale, professional and intelligentdevelopment of the "Fishery& PV Integration ", and brings new profit for companies, farmers and otherpartners.
II. Explanation of Major Changes in the Company’s Principal Assets in the Reporting Period
√Applicable □Inapplicable
| Item name | December 31, 2020 | December 31, 2019 | Year-on-year change amount | Change proportion (%) |
| Cash at bank and on hand | 6,264,168,242.03 | 2,692,681,748.77 | 3,571,486,493.26 | 132.64 |
| Receivables financing | 9,711,898,567.92 | 4,392,541,416.88 | 5,319,357,151.04 | 121.10 |
| Prepayments | 1,113,458,878.37 | 389,875,898.15 | 723,582,980.22 | 185.59 |
| Long-term prepaid expenses | 835,269,963.57 | 607,333,082.04 | 227,936,881.53 | 37.53 |
Aquatic seedlingsLivestock babies
Livestock babiesAgricultural industrial chain
Agricultural industrial chainAquatic feed
Aquatic feedLivestock feed
Livestock feedAquatic husbandry
Aquatic husbandryLivestock husbandry
Livestock husbandryAquatic processing
Aquatic processingLivestock processing
Livestock processingAquatic husbandry
Aquatic husbandryPV new energy industrial chain
PV new energy industrial chainPolysilicon
PolysiliconMonocrystallinesilicon rods
Monocrystalline
silicon rodsMulticrystalline
silicon ingots
Multicrystalline
silicon ingotsMonocrystalline
silicon wafer
Monocrystalline
silicon waferMulticrystalline
silicon wafer
Multicrystalline
silicon wafer
Monocrystallinecell
MonocrystallinecellMulticrystalline
cell
Multicrystalline
cellMonocrystalline
module
Monocrystalline
moduleMulticrystalline
module
Multicrystalline
modulePV powerplant
PV powerplantPV powergeneration
PV powergeneration
Fishery& PV Integration
| Deferred tax assets | 415,550,864.14 | 244,903,723.68 | 170,647,140.46 | 69.68 |
| Other non-current assets | 1,547,022,743.45 | 1,056,166,007.39 | 490,856,736.06 | 46.48 |
and obtained 506 authorized patents. The Company is approved to establish a testing methodstandardization working group of the National Feed Industry Standardization Technical Committee, andit indicates that the Company has taken an important step on the road to participate in the nationalstandardization work actively. At the same time, the Company presided over the revision of Determinationof Isothiocyanate in Feed, Determination of Oxazolidine Thione in Feed and the two industry standardsTurbot Formula Feed, Determination of Unsaponifiable Matter in Feed Ingredients- n-hexane ExtractionMethod has been officially released and implemented, and the two industry standards of ProcambarusClarkii Formula Feed and Tanghead Bream Formula Feed have passed preliminary review; and othernine national standards and five industry standards that the Company presided over or participated in theformulation and revision are under study and formulation. In addition, the group standard of GeneralTechnical Specification for the Integration of Fishery and PV, which was initiated by the China FisheryAssociation and formulated by the Company, has been formally implemented in January 2021.For a long time, the Company has established a young, high-quality scientific and technologicalinnovation team, which continuously consolidates the Company's scientific research capabilities andcontinuously improves product competitiveness under the lead of the experts with special governmentallowances from the State Council.
(2) PV new energy segment
To further strengthen independent research and development capabilities, grasp future developmentopportunities in core technologies, products and application fields, continue to strengthen the Company'score competitiveness, and ensure the sustainable and healthy development, the Company has establisheda PV technology center based on the original scientific research system of various PV business segments,and set up a scientific research and technical team mainly composed of well-known experts in the industry,promoted the technology research and development and technology integration in all links of the PVindustrial chain, and focused on the cross-segment link and integration work of new technologies and newproducts (such as TOPCON, HJT) during the mass production process, deepened the university-industrycooperation with domestic and foreign universities, research institutes and other scientific researchinstitutions, and strengthened the follow-up, research and development of cross-generation technologyand cutting-edge technology of the industry (including HBC, perovskite, laminated cell/module, PV +storage Technology).
In terms of high-purity polysilicon, after years of development, the Company has formed a numberof achievements with independent intellectual property rights in the core technology fields of coldhydrogenation, large-scale energy-saving rectification, high-efficiency reduction, tail gas recovery,trichlorosilane synthesis and anti-disproportionation. It is at an advanced level in the industry, theproportion of mono-grade in the current products has reached more than 98%, and the batch supply of N-type materials can be realized, and the situation that domestic high-quality silicon materials still need tobe partly imported is effectively alleviated. As of the end of the reporting period, Yongxiang has appliedfor 365 patents and obtained 222 authorized patents.
In terms of solar cells, the Company has formed a number of technological achievements withindependent intellectual property rights in the core technology fields of atomic layer deposition backpassivation, selective emitter technology, double-sided cells, multi-grid, HJT cells, and high-efficiencymodules. On the one hand, the Company focuses on the current mainstream PERC technology, andimproves and optimizes the technology by superimposing other process technologies (such as multi-grid,high-resistance dense grid, alkali polishing, TOPCON, etc.) to improve conversion efficiency and reduceproduction cost. On the other hand, the Company continues to increase the investment in tracking andresearch and development of new cell technologies. The HJT cell R&D production line of the Companywas officially put into operation in June 2019. After continuous R&D and improvement, the currentmaximum conversion efficiency of HJT cell has reached 25.18%. At the same time, the Company willbuild a 1GW HJT pilot line to further improve equipment selection, optimize process technology andimprove product cost-effectiveness based on the research and development production lines.
(III) Scale and cost advantage
(1) Agriculture and animal husbandry segment
The Company is a national key leading enterprise in the industrialization of agriculture. At present,the business covers China and Southeast Asia with the annual feed capacity is more than 10 million tons.It is the leading aquatic feed and important livestock feed manufacturer in the world. It has intensiveadvantages in raw material purchasing, production organization and market expansion.
(2) PV new energy segment
The Company has formed an annual capacity of 80,000MT of high-purity polysilicon, and the annualcapacity under construction exceeds 150,000MT. Various consumption indicators and costs have beencontinuously reduced. The average cost of Leshan Phase-I and Baotou Phase-I was reduced to36,300yuan/MT in 2020. With the continuous improvement of technical processes and the continuousexpansion of capacity, the cost level will be further optimized after the projects under construction of theCompany reach the target capacity.
In terms of solar cells, with the production of the 7.5GW 21X large-size cell project of MeishanPhase-I in 2020, as of the end of the reporting period, the annual solar cell capacity of the Company hasreached 27.5GW, and the non-silicon cost of monocrystalline PERC cell products has reached within 0.2yuan/w. As the large-scale projects in Meishan and Jintang are put into production one after another, it isestimated that the annual solar cell capacity of the Company will exceed 55GW by the end of 2021, thesize structure will be further optimized, and the cost advantage will be further improved.
(IV) Quality and brand advantages
(1) Agriculture and animal husbandry segment
Since the establishment in 1992, the Company has formed a series of formula feeds that can meet theneeds of various aquatic animals through continuous R&D and improvement. After years of marketverification, the feed quality and market services of the Company have been highly recognized by farmersand have become one of the iconic brands in the domestic aquatic feed industry. At the same time, theCompany has made great efforts to build a well-known fresh fish brand "Tongwei Fish", the aquatic andlivestock food processing bases were built in Sichuan and Hainan, processed and produced strictlypursuant to the requirements of the HACCP quality management system, realized the quality monitoringand traceability “from source to table”, and effectively enhanced the value and competitiveness of theindustrial chain.
(2) PV new energy segment
Relying on the Sichuan Polysilicon Engineering Technology Research Centre, the Companyresearches automatic reduction process technology, multiphase flow technology, reduction heat cascadeutilization, boron/phosphorus/carbon and other impurity removal technologies to ensure that the high-purity polysilicon quality of the Company is at the industry’s leading level, the product structure iscontinuously optimized and the proportion of mono-grade products is increased greatly, and a long-termcooperative relationship with major downstream monocrystalline silicon wafer manufacturers is formed,and the quality has been highly recognized by customers. The high-purity polysilicon segment of theCompany won the "Third National Petrochemical Advanced Group", "Safety Production StandardizationSecond-level Enterprise", "Sichuan Quality Benchmark and Advanced Quality Management Enterprise",and "Sichuan High-purity Crystalline Silicon Preparation Technology Engineering Laboratory", "SichuanProvince Postdoctoral Innovation Practice Base", "Sichuan Province Patent Innovation andEntrepreneurship Award", "Energy Saving and Emission Reduction Pioneer Enterprise", "ExcellentPhotovoltaic Material Supplier", "2020 Environmental and Social Responsibility Enterprise", "PracticingCorporate Responsibility, Promoting Green Development Award" and "OFweek Cup 2020 ExcellentPhotovoltaic Material Supplier" and other honors issued by the national, provincial and industryassociations; and the brand value and social recognition of the Company are reflected completely.
The solar cell conversion efficiency rate, yield rate, fragmentation rate, CTM value and many otherindicators of the Company are at the leading level in the industry, and the quality is widely recognized bycustomers, and it has obtained a number of professional certifications at home and abroad. The cellsegment of the Company has won many honorary titles including "Excellent Quality Supplier" awardedby Jinko Solar Co., Ltd., "Best Quality Supplier" awarded by GCL System Integration Technology Co.,Ltd., "Excellent Supplier" and "Product Quality Inspection-Exempt Supplier" awarded by Canadian SolarInc., "Excellent Supplier" awarded by Trina Solar Co., Ltd. and "Strategic Supplier" awarded by RisenNew Energy Co., Ltd. In 2020, the Company also won the "National Smart Photovoltaic PilotDemonstration Enterprise", "National Enterprise Technology Center", "National Green Supply Chain","National Model Workers Home", "Sichuan Science and Technology Progress Award", "SichuanEngineering Technology Research Center", "Sichuan Technological Innovation DemonstrationEnterprise", "Top 100 Sichuan Enterprises", "Sichuan Province Worker’s Home Demonstration Site","Anhui Province Manufacturing and Internet Integration Pilot Demonstration Enterprise", "AnhuiProvince 100 Excellent Private Enterprise", "Anhui Province Harmonious Labor Relations DemonstrationEnterprise", "China Photovoltaic Top Ten Suppliers of Cells/Modules in 2020" and many other national,provincial and industry awards.
(V) Unique development model of Fishery& PV Integration
The Company has the unique advantages of resource integration in the terminal, and has formed aninnovative development model of "Fishery &PV Integration" with "power generation on the top and fishfarming in the bottom" to realize the green integration of smart farming and clean energy. In terms offishery, the Company guides the intensive, intelligent and efficient development of aquaculture througheffective water surface modification, rational application of fishery facilities, and optimization andinnovation of aquaculture models. In terms of PV power generation, the Company adheres to theimplementation of cost strategic planning, and continuously reduces the installed cost of PV systemsthrough design optimization and technological innovation.
The "Fishery& PV Integration" development model can promote the coordinated development ofprimary, secondary and tertiary industries, integrate and create a "three-new" modern industrial parkintegrating new fishery, new energy, and new rural area, promote industrial transformation and upgrading,provide an effective way for the construction of new rural areas, and form the unique competitive modelof the Company.
(VI) Enriched corporate culture
An effective corporate culture is the key to strengthen cohesion and creativity and an important partof the core competitiveness of the Company. “Striving for Excellence Contributing to Society” is thecorporate purpose, and “For Better Life” is the corporate vision, which indicates the value and goals ofexistence for the Company; “Honesty, Trust, Fairness and Excellence” is the management philosophy,that is, being sincere and candid, winning trust by credibility, running business with fairness andlegitimacy, taking the lead with guaranteed excellence; "three decides" is the important managementprinciple of the Company, that is, efficiency decides profit, detail decides success, speed decides life anddeath; "work hard, work with intelligence, work with the spirit of seizing the day" is the code of conductfor employees. After years of development, the elemental spirit advocated by the Company’s corporateculture is closely integrated with our business targets and daily work, guiding the benchmarking operationsof all business segments, branch companies and subsidiaries of the Company, continuously and deeplyadvancing the fine-tuning of management and constantly boosting the high-quality development of variousbusiness activities.
Section IV Discussion and Analysis on OperationI. Discussion and Analysis on Operation
In 2020, the raging COVID-19, the turbulent international situation and the global economicrecession affected the feed and PV industries seriously. Faced with multiple pressures such as hinderedresumption of work, delayed terminal demand, sharp rise in raw material prices, and rising operating costs,the Company has firmly implemented the business policy of "gathering and focusing, implementing inplace, and efficient operation". On the one hand, the Company coordinated and promoted the Company'sepidemic prevention and control work to ensure the safety of employees, without one confirmed orsuspected case of "COVID-19" throughout the year. On the other hand, it took the lead in the industry toresume work and production, which ensuring the smooth development of the Company's businessoperations throughout the year and the effective implementation of various business plans. During thereporting period, the Company achieved operating revenue of 44.20 billion yuan, with a year-on-yearincrease of 17.69%; net profit attributable to shareholders of the listed company was 3.608 billion yuan,with a year-on-year increase of 36.95%, and net profit net of non-recurring gains and losses attributableto shareholders of the listed company was 2.409 billion yuan, with a year-on-year increase of 4.06%.(I) Feed and industrial chain businessAfter the outbreak of the COVID-19, downstream aquaculture and terminal consumer demands wereaffected. In order to ensure sufficient supply and price stability of residents’ meat products, governmentsat all levels accelerated the implementation of residents’ "vegetable basket" projects, such as supportingthe expansion of live pig production and expanding the farming scale of poultry meat. With the strongsupport of the policy, driven by factors such as the continuous recovery of live pig production, high poultrystocks, and booming production and sales of cattle and sheep products, the national feed output achievedrapid growth, but there were obvious differences between different feed varieties. According to statisticsfrom the National Feed Industry Association, the total domestic feed output in the year was 252.761million tons, with a year-on-year increase of 10.4%. Among them, the output of pig feed was 89.225million tons, with a year-on-year increase of 16.4%; the output of egg and poultry feed was 33.519 milliontons, with a year-on-year increase of 7.5%; the output of meat and poultry feed was 91.758 million tons,with a year-on-year increase of 8.4%; the output of ruminant animal feed was 13.188 million tons, with a
year-on-year increase of 18.9 %; and the output of aquatic feed was 21.236 million tons, with a year-on-year decrease of 3.6%. While the feed industry is welcoming production growth, competition has alsocontinued to intensify and polarization has increased. Among them, large-scale enterprises have rapidlyexpanded the scale of intensive aquaculture by virtue of their advantages in capital, management and theconstruction of the epidemic prevention system. Small-scale aquaculture and free-range breeding havegradually withdrawn from the market, the concentration of aquaculture has accelerated, and the scale ofthe vertically integrated industrial chain of large-scale enterprises has continued to expand. The marketshare has further increased, and the industry competition pattern has shifted from competition in the feedprocessing industry to comprehensive competition in the entire industrial chain of agriculture and animalhusbandry.During the reporting period, the Company standardized the awareness and behavior of all employeeswith the goal of "maximizing farming benefits", strictly controlled the entire process of product qualityformation, design, manufacturing, and use at the level of specialization, standardization, scale, andcontinued to improve the quality management system, provided customers with safe and stable productsand achieve win-win development between the Company and customers. In 2020, the feed, food andrelated businesses of the Company achieved operating revenue of 20.851 billion yuan, with a year-on-yearincrease of 12.14%, and the sales volume of feed was 5,249,200 tons, with a year-on-year increase of
7.12%. Under the situation of the year-on-year decline in the output of the aquatic feed industry, the salesvolume of aquatic feed continued to grow. The proportion of high value-added products continued toincrease. The expanded feed increased 11.37% year-on-year, and specialty materials increased 18.81%year-on-year.The Company focused on the following tasks throughout the year:
1. In-depth practice of the "quality policy" and comprehensive implementation of "standardized"management. During the reporting period, the Company comprehensively upgraded the "Quality Policy",carried out publicity and implementation activities, in-depth interpretation, comprehensiveimplementation and strict implementation, and a normative awareness and corporate culture with the"Quality Policy" everywhere was formed. Based on the "quality policy", the Company promoted theconstruction of "standardization" firstly in the industry, created on-site standardization and operationstandardization, improved product quality, reduced production costs, and formed a Standardization WorkManual and operation mode, and employees' thinking was changed fundamentally, "internalized in heart,externalized in industry" was realized, and a standardized management model in the feed industry wasestablished. With the help of on-site standardization, the Company vigorously carried out "homemarketing", allowing customers to intuitively feel the standardization and normalization of companymanagement, personally experience how a good feed was produced, and enhanced customers' recognitionof the Company's brand and product quality.
2. Broke through the concept and innovatively introduced the business philosophy of "full productionand full sales". It was a common phenomenon in the industry that the capacity utilization rate of feedenterprises fluctuates with the seasons. During the reporting period, the Company broke the conventionalthinking of producing according to sales in the feed industry, changed the concepts, and introduced thebusiness philosophy of "full production and full sales", formulated corresponding implementation plans,and quickly promoted and implemented the plans in various subsidiaries. After several months of pilotpromotion, the capacity utilization rate and per capita efficiency of many companies were effectivelyimproved. The full production and full sales model became an effective way for the Company to increasethe level of scale further.
3. Two-wheel drive of technology and market, consolidate product competitive advantage
During the reporting period, the Company focused on building a leading product terminal expressiveforce, promoting the transformation of technical system functions, allowing technology to deeplyparticipate in operations, relying on technical solutions, solidifying the scientific breeding model, andvigorously promoting the three-in-one breeding and profit model of "product + model + service", realizingthe two-wheel drive of technology and market, and gradually transformed from a product provider to acomprehensive solution provider. At the same time, the integrated product development model (IPD) wasimplemented; starting from customer needs, the precise positioning and rapid development of productswere achieved, a full-process control of the product line was formed, the product terminal competitiveadvantages were consolidated, and more value was created for the Company and customers.
4. Strengthened strategic supplier cooperation and optimized purchasing costs
During the reporting period, the Company continued to optimize the supplier catalog, strengthencooperation with strategic suppliers, change the traditional business cooperation model, and improve
business efficiency and strategic supplier viscosity. Affected by the epidemic, the prices of raw materialsraised sharply. The Company used a professional purchasing team and a centralized purchasing platformto accurately grasp the purchasing nodes, so it can ensure that the purchasing costs of main raw materialswere better than the average market.In terms of food and processing business, through business focus, optimizing the business model anddeepening the management reforms, the annual sales revenue was 1.982 billion yuan, with a year-on-yearincrease of 4.03%. The Company strictly adhered to the red line of food safety, established a whole-process traceability system of the product, and strived to provide terminal consumers with safe, healthyand delicious aquatic and livestock food. Among them, Tongwei brand fresh fish gradually realized "onefish, one yard, scanning code for traceability", which formed a clear difference from other fresh fishproducts, and won the recognition and praise of consumers. In 2020, the "Tongwei Fish" brand won awardssuch as "Leading Brand in China's Food Industry", "Trusted Brand by Chinese Consumers", "Top 100Iconic Brands of China's Agricultural Products" and "Most Influential Brands in China's Agriculture".And the brand recognition and reputation were further improved.
(II) PV new energy businessAt present, climate warming has become a common survival problem faced by all humankind, andenergy transition and green development have become a global consensus. In order to cope with climatechange and implement climate governance, many countries around the world have successively announcedcarbon neutrality targets in recent years. On September 22, 2020, China solemnly promised at the UNGeneral Assembly that China would aim to achieve peak CO
emissions before 2030 and carbon neutralitybefore 2060. On December 12, 2020, President Xi Jinping emphasized at the Climate Ambition Summitthat the non-fossil energy in China will account for about 25% of primary energy consumption in 2030,of which the total installed capacity of wind power and solar power will reach more than 1.2 billion KW.Japan and South Korea announced that they would achieve carbon neutrality by 2050. The EuropeanUnion plans to improve the greenhouse gas emission reductions (compared to 1990) from 40% to 60% in2030. On February 19, 2021, the United States rejoined the Paris Agreement. According to incompletestatistics, more than 40 countries and economic entities around the world have announced carbonneutrality targets and are actively formulating corresponding targets and measures to guide energyconservation, emission reduction, and energy consumption transformation by the end of 2020. Under thisbackground, the renewable clean energy focusing on wind power and PV is developed quickly, theinstalled capacity is steadily increased year by year, and the global green transformation has entered a newstage. Among them, PV will become the main form of clean energy in the world due to the high conversionefficiency, simplicity, reliability, economy and environmental protection, so as to contribute to globalclimate governance and green sustainable development.Affected by the spread of the epidemic in the first half of 2020, global demand for PV installationswas delayed, the operating rate of the industrial chain was generally insufficient, and product prices fellsharply. In the second half of the year, the epidemic was gradually brought under control, demand forinstalled capacity resumed, and the volume and price of PV products rebounded. According to CPIAstatistics, global PV installed capacity was expected to be 130GW in 2020, hitting a new high. Amongthem, domestic PV installed capacity was 48.2GW, with a year-on-year increase of 60.1%. The newlyinstalled capacity has ranked first in the world for 8 consecutive years. At the same time, the global leadingadvantage of PV manufacturing industry in China was further enhanced. In 2020, domestic polysiliconoutput was 392,000MT, with a year-on-year increase of 14.6%; the silicon wafer output was 161.3GW,with a year-on-year increase of 19.7%; the cell output was 134.8GW, with a year-on-year increase of
22.2%; and the module output was 124.6GW, with a year-on-year increase of 26.4%. Although the severeoverseas epidemic, the module export volume of our country in 2020 was about 78.8GW, with a year-on-year increase of 18.3%. With the continuous advancement of technology, the levelized cost of energy(LCOE) of PV power generation continued to decrease. At present, most countries and regions in theworld have achieved parity, and some are even lower than the cost of thermal power. PV power generationwill welcome a broader development space.
Based on the strategic development positioning of "building a world-class clean energy operator" andthe comprehensive advantages of technology, cost, and management accumulated in the PV industrialchain, and actively seizing industry development opportunities, the Company has formulated theDevelopment Plan of High-purity Polysilicon and Solar Cell Business in 2020-2023 (see the relevantannouncement on February 12, 2020 for details), to accelerate the promotion of the capacity expansionand technological progress of the two core business links of high-purity polysilicon and solar cells,continuously consolidate the leading advantages of the Company in the above fields, and maintain the
rapid and steady development of the Company in the industry. During the reporting period, the Companyinitiated the project construction with a total annual capacity of 150,000MT, including high-purity siliconLeshan Phase-II, Baoshan Phase-I, and Baotou Phase-II. It is expected that the Leshan Phase II andBaoshan Phase I projects with a total annual capacity of 100,000MT will be put into operation before theend of 2021. At that time, the Company will form a high-purity polysilicon capacity exceeding 180,000MT.The 50,000MT Baotou Phase- II project is expected to be completed and put into operation in 2022. Interms of solar cells, the Company closely followed the market’s large-size development trend. During thereporting period, the Company invested the Meishan Phase-I 7.5GW 21X large-size cell project, startedthe Meishan Phase-II 7.5GW, Jintang Phase- I 7.5GW, and Jintang 15GW 21X large-size cell projectcooperating with Trina Solar, which will be put into production in 2021. At that time, the capacity willexceed 55GW, of which 166 and above will account for more than 90%, and the product structure will befurther optimized. On the other hand, the monocrystalline ingots and wafers project cooperating with TrinaSolar has been started in 2020. The project is divided into two phases, each phase is 7.5GW. It is expectedto be put into production in 2021 and 2022 respectively, to further guarantee the supply of the large sizesilicon wafers.In order to give full play to the professional advantages of the Company, strengthen upstream anddownstream cooperation in the industrial chain, and promote the industry's professional division of labor,complementary advantages, and win-win cooperation, the Company has established strategic partnershipswith LONGi, Trina Solar, Jinko Solar, etc. to carry out industrial chain project investment cooperationand long-term order purchasing and sales cooperation, and sign long-term supply chain orders with anumber of industry companies.
(1) High-purity polysilicon business
During the reporting period, the Company focused on the implementation of safe production andoperation responsibilities, strengthened team performance and due diligence work style, and ensured thesafe, stable and efficient operation of the production facilities in Leshan and Baotou bases while effectivelyfighting the epidemic and responding to sudden natural disaster. Focusing on optimizing the corecompetitiveness goals of high-purity polysilicon quality, cost, efficiency, on the one hand, the Companystrengthened technological innovation and research and carried out a number of technical research projectsthroughout the year; the monocrystalline rate, density rate, reduction power consumption, steamconsumption and other core technologies indicators achieved phased results; on the other hand, theCompany further promoted "Amoeba management" and "team building" to build an intelligent and smartfactory, improved the level of refined management, and achieved efficient operation and continuous costreduction and efficiency enhancement.During the reporting period, the high-purity polysilicon capacity of the Company was operating atfull load, and various indicators continued to be optimized. The annual sales volume of high-puritypolysilicon was 86,600MT, with a year-on-year increase of 35.79%, and the gross profit margin was
36.78%. The product production costs continued to decrease, with an annual average production cost of38,700 yuan/MT, of which new capacity was 36,300 yuan/MT.
Based on the development trend of further improving the quality and efficiency of products in thePV industry, the Company has continuously improved the quality of high-purity polysilicon productswhile taking into account the advantages of production costs. At present, the proportion of mono-grade inthe products has reached more than 98%, and the batch supply of N-type material can be achieved. At thesame time, the Company is promoting the construction of new projects orderly. The newly-built capacityhas a larger single-line scale and a more complete production process technology, and the cost will befurther reduced.
(2) Solar cell business
During the reporting period, the Company closely mastered the market changes, optimized productstructure, increased the proportion of products with sizes of 166 and above, and met the needs of differentcustomers; strengthened internal and external benchmarking to guide the Company to continuouslyimprove quality and reduce costs; focused on technology research and development, carried out the pilottest and transformation of new technologies such as HJT and TOPCON based on the further improvementand optimization of product conversion efficiency and reliability of the mainstream PERC technology, soas to help the Company maintain its leading technology advantage. Due to the terminal demand impactcaused by the epidemic, the solar cell market fluctuated greatly throughout the year. In the first half of theyear, solar cell market prices fell by 30% year-on-year. In the second half of the year, as demand graduallypicked up, solar cell prices stabilized and rebounded. During the reporting period, the Company continuedto maintain full production and full sales, the cell and module shipments was 22.16GW, with a year-on-
year increase of 66.23%, and the gross profit margin of monocrystalline cells was 16.78%. According todata released by PVInfoLink, the solar cell shipments of the Company continued to rank first in the worldin 2020.
During the reporting period, the Company continued to improve the production process throughtechnology research and development, intelligent manufacturing, and delicacy management and control.The key production indicators such as product A-level rate, fragmentation rate, and CTM value continuedto maintain the leading advantage in the industry. The new project gradually carried out the application of5G in the industrial Internet field, creating a smart park and 5G standard unmanned workshop. At the sametime, process equipment and production processes were automated, intelligent, and informationized tofurther optimize production indicators and reduce non-silicon costs. In terms of marketing, it adhered tovalue marketing, continue to promote the brand value of “Tongwei cells inside”, actively promoted themarket process of large-size products, and use product quality as the backing and market changes as anopportunity to strengthen in-depth cooperation with downstream leading component manufacturers andsign multiple long-term supply order to ensure the stable shipments of the Company. In terms ofcomprehensive management, the Company actively promoted the "cost reduction benchmark line","efficiency golden line", "process baseline", "TQM improvement star", and "TQM excellent team" withinthe Company, and rewarded "innovative proposals" and "reasonable suggestions" timely, a large numberof outstanding employees and valuable proposals emerged to promote the further improvement of multipleproduction indicators and enhance the operating performance of the Company.
(3) PV power generation business
During the reporting period, the Company continued to focus on the development, construction,operation and maintenance of the "Fishery & PV Integration", and achieved cost reduction and efficiencyenhancement of the powerplant through system optimization in the overall project design, centralizedpurchasing, engineering construction, and operation management, created a compound efficiency modelof “generating clean energy on water and high-quality aquatic products underwater” to enhance thedifferentiated competitiveness of the Company. As of the end of the reporting period, the Company built45 main PV powerplants with “Fishery& PV Integration”, with a cumulative installed capacity of morethan 2GW and a total of 2,164,980,000 kWh of power generation throughout the year. At present, PVpower generation has fully entered the era of parity. The Company will continue to focus on cost targetsand the development and operation of "scaled", "clustered", and "beneficial" projects, and graduallyrealize the large-scale layout of "Fishery& PV Integration".
II. Major Operation Conditions in the Reporting PeriodRefer to "Discussion and Analysis on Business Conditions" in this Section for details.(I) Major business analysis
1. Analysis of changes in the related items of the income statement and cash flow statement
Unit: Yuan Currency: RMB
| Item | Amount in the current period | Amount in the same period of last year | Change proportion (%) |
| Operating revenue | 44,200,270,334.23 | 37,555,118,255.70 | 17.69 |
| Operating cost | 36,648,405,064.38 | 30,536,001,116.46 | 20.02 |
| Sales expense | 778,030,640.18 | 975,270,497.07 | -20.22 |
| Management cost | 1,808,578,103.39 | 1,513,809,599.62 | 19.47 |
| R&D expense | 1,035,331,434.68 | 1,000,694,593.85 | 3.46 |
| Financial expense | 676,326,528.79 | 707,805,824.00 | -4.45 |
| Net cash flow from operation activities | 3,024,927,931.94 | 2,357,465,207.68 | 28.31 |
| Net cash flow from investment activities | -4,740,250,322.93 | -4,290,774,336.48 | -10.48 |
| Net cash flow from financing activities | 5,795,372,325.96 | 1,441,084,051.50 | 302.15 |
1) Due to the expansion of the production and sales of high-purity polysilicon and solar cells of theCompany, operating revenue increased year-on-year.
2) The Company has implemented the Accounting Standards for Business Enterprises No. 14-Revenue revised by the Ministry of Finance from January 1, 2020, and the transportation costs, exportcosts and other expenses (originally reported as sales expenses) related to the contract performance willbe directly changed to the operating costs. If retrospectively adjusted according to the same caliber, theoperating costs were increased by 19.32% year-on-year, and sales expense was decreased by 2.37% year-on-year.
(1). Major business by industry, product, and region
Unit: Yuan Currency: RMB
| Main business by industry | ||||||
| Industry | Operating revenue | Operating cost | Gross profit rate (%) | Increase/ decrease in the operating revenue over last year (%) | Increase/ decrease in the operating cost over last year (%) | Increase/ decrease in the gross profit rate over last year (%) |
| Agriculture and animal husbandry business | 20,935,749,897.11 | 18,699,941,643.52 | 10.68 | 11.96 | 14.38 | Reduce by 1.89ppt |
| PV business | 22,502,320,432.61 | 17,284,675,795.86 | 23.19 | 26.41 | 31.01 | Reduce by 2.70 ppt |
| Large consolidation offset | -4,426,670.69 | -3,298,026.69 | ||||
| Total | 43,433,643,659.03 | 35,981,319,412.69 | 17.16 | 19.23 | 22.10 | Reduce by 1.95 ppt |
| Main business by product | ||||||
| Product | Operating revenue | Operating cost | Gross profit rate (%) | Increase/ decrease in the operating revenue over last year (%) | Increase/ decrease in the operating cost over last year (%) | Increase/ decrease in the gross profit rate over last year (%) |
| Feed, food and related businesses | 20,850,972,852.84 | 18,660,128,240.51 | 10.51 | 12.14 | 14.73 | Reduce by 2.02 ppt |
| Solar cells, modules and related businesses | 15,499,928,428.90 | 13,246,395,326.61 | 14.54 | 26.31 | 35.30 | Reduce by 5.67 ppt |
| High-purity polysilicon and chemical industry | 6,539,457,937.14 | 4,270,468,575.07 | 34.70 | 26.28 | 15.16 | Increase by 6.30 ppt |
| PV power | 1,171,071,981.74 | 472,672,272.89 | 59.64 | 7.16 | 18.48 | Reduce by 3.86 ppt |
| Other | 84,777,044.27 | 39,813,403.01 | 53.04 | -19.56 | -48.10 | Increase by 25.82 ppt |
| Deductions for internal transactions in the PV segment | -708,137,915.17 | -704,860,378.71 | ||||
| Large consolidation offset | -4,426,670.69 | -3,298,026.69 | ||||
| Total | 43,433,643,659.03 | 35,981,319,412.69 | 17.16 | 19.23 | 22.10 | Reduce by 1.95 ppt |
| Main business by region | ||||||
| Region | Operating revenue | Operating cost | Gross profit rate (%) | Increase/ decrease in the operating revenue over last year (%) | Increase/ decrease in the operating cost over last year (%) | Increase/ decrease in the gross profit rate over last year (%) |
| East China | 14,904,725,487.35 | 12,478,872,316.68 | 16.28 | 24.64 | 28.43 | Reduce by 2.47 ppt |
| South China | 7,057,865,445.24 | 6,228,633,808.18 | 11.75 | 4.37 | 6.38 | Reduce by 1.66 ppt |
| West China | 11,624,549,361.89 | 9,509,249,873.68 | 18.20 | 11.15 | 12.74 | Reduce by 1.16 ppt |
| North China | 5,809,998,538.34 | 4,703,482,998.62 | 19.05 | 34.27 | 37.89 | Reduce by 2.12 ppt |
| Central China | 3,543,478,254.07 | 3,319,364,796.44 | 6.32 | -11.30 | -9.49 | Reduce by 1.87 ppt |
| Overseas | 5,559,881,381.34 | 4,736,916,306.73 | 14.80 | 47.93 | 51.76 | Reduce by 2.15 ppt |
| Total | 48,500,498,468.23 | 40,976,520,100.33 | 15.51 | 17.55 | 19.80 | Reduce by 1.58 ppt |
| Internal offset | -5,066,854,809.20 | -4,995,200,687.64 | ||||
| Total after offset | 43,433,643,659.03 | 35,981,319,412.69 | 17.16 | 19.23 | 22.10 | Reduce by 1.95 ppt |
| Main products | Unit | Production volume | Sales volume | Inventory | Increase / decrease of the output over last year (%) | Increase / decrease of the sales revenue over last year (%) | Increase/ decrease of inventory over last year (%) |
| Feed | 10,000 tons | 525.03 | 524.92 | 7.78 | 4.74 | 7.12 | -14.03 |
| High-purity polysilicon | MT | 86,195.09 | 86,643.09 | 504.20 | 33.92 | 35.79 | -42.38 |
| Solar cells and modules | MW | 22,592.92 | 22,162.63 | 726.70 | 67.72 | 66.23 | 524.69 |
| PV power generation | 10,000 kWh | 222,763.00 | 216,498.00 | / | 29.32 | 29.65 |
| Condition (by industry) | |||||||
| Industry | Cost items | Amount of the current period | Proportion of the amount in the current period out of the total cost (%) | Amount of the same period in the previous year | Proportion of the amount in the same period of the previous year out of the total cost (%) | Proportion of change in the amount of the current period compared with the same period in the previous year (%) | Information notes |
| Agriculture and animal husbandry industry | Raw materials | 17,512,872,870.27 | 93.65 | 15,258,325,641.58 | 93.33 | 14.78 | |
| Agriculture and animal husbandry industry | Labor wages | 335,736,535.67 | 1.80 | 407,066,309.69 | 2.49 | 17.52 | |
| Agriculture and animal husbandry industry | Manufacturing costs | 851,332,237.58 | 4.55 | 683,945,651.61 | 4.18 | 24.47 | |
| PV industry | Raw materials | 12,463,938,323.90 | 72.11 | 9,295,574,129.53 | 70.46 | 34.08 | |
| PV industry | Labor wages | 649,514,991.13 | 3.76 | 633,261,168.60 | 4.80 | 2.57 | |
| PV industry | Manufacturing costs | 4,171,222,480.84 | 24.13 | 3,264,615,743.68 | 24.74 | 27.77 | |
| Condition (by products) | |||||||
| Product | Cost items | Amount of the current period | Proportion of the amount in the current period out of the total cost (%) | Amount of the same period in the previous year | Proportion of the amount in the same period of the previous year out of the total cost (%) | Proportion of change in the amount of the current period compared with the same period in the previous year (%) | Information notes |
| Feed, and related businesses | Raw materials | 17,475,257,167.10 | 93.65 | 15,258,325,641.58 | 93.82 | 14.53 | |
| Labor wages | 335,282,662.87 | 1.80 | 321,598,735.95 | 1.98 | 4.25 | ||
| Manufacturing costs | 849,588,410.53 | 4.55 | 683,945,651.61 | 4.21 | 24.22 | ||
| High-purity polysilicon and chemical industry | Raw materials | 1,601,517,823.84 | 37.50 | 1,460,607,874.62 | 39.39 | 9.65 | |
| Labor wages | 188,287,616.75 | 4.41 | 173,129,473.47 | 4.67 | 8.76 | ||
| Manufacturing costs | 2,480,663,134.48 | 58.09 | 2,074,436,168.28 | 55.94 | 19.58 | ||
| Solar cells, modules and related businesses | Raw materials | 11,466,767,788.76 | 86.57 | 8,234,966,254.90 | 84.11 | 39.24 | |
| Labor wages | 487,871,096.69 | 3.68 | 464,431,583.53 | 4.74 | 5.05 | ||
| Manufacturing costs | 1,291,756,441.16 | 9.75 | 1,091,249,276.04 | 11.15 | 18.37 | ||
| PV power | Manufacturing costs | 472,672,272.89 | 100.00 | 398,930,299.37 | 100.00 | 18.48 | |
(4). Information on major sales customers and suppliers
√Applicable □Inapplicable
The top five customers had sales of RMB 10,312,816,300, accounting for 23.33% of the total annualsales; in the sales of the top five customers, the sales of related parties were RMB 0, which accounted for0% of the total annual sales.The purchasing amount of the top five suppliers was RMB 9,859,830,400, accounting for 25.53% ofthe total annual purchase; in the purchasing amount of the top five suppliers, the purchasing amount ofrelated parties was RMB 0, which accounted for 0% of the total annual purchase.
3. Expense
□ Applicable √Inapplicable
4. R&D investment
(1).R&D investment situation table
√Applicable □Inapplicable
Unit: Yuan
| Current expensing R&D investment | 1,035,331,434.68 |
| Current capitalized R&D investment | 0 |
| Total R&D investment | 1,035,331,434.68 |
| Proportion of total R&D investment to the operating revenue (%) | 2.34 |
| Number of the R&D personnel of the Company | 2,578 |
| Proportion of the number of R&D personnel to the headcount of the Company (%) | 10.09 |
| Proportion of the capitalized R&D investment (%) | 0 |
powerplants were built firstly and got firstly. After the project was completed, it would be included in theannual construction scale of our province in accordance with the order of grid connection. The Companyhas built the first and second phases of Fishery& PV Integration PV powerplants, with a grid-connectedscale of 64.59MW, which were connected to the grid for power generation at the end of July 2017 andJanuary 2018 respectively, and received a subsidy indicator of 3.9MW in March 2020. It was expectedthat the possibility of subsidizing the target was small by the end of 2020.
2) PV Power Project in Fengnan, Tangshan of Hebei
Fishery & PV Integration PV Powerplant in Fengnan Tangshan Hebei obtained record with theJFGNYBZ No. [2017] No. 107 of Hebei Provincial Development and Reform Commission on May 31,2017, and was connected to the grid in December 2018, with a grid size of 74.2MW. The subsidy indicatorof 24MW has been obtained. By the end of 2020, it was expected that the possibility of obtaining thesubsidy indicator in the future was small.The above PV power generation projects were expected to have future cash inflows lower than theinvestment and construction expectations, and there were signs of impairment. For this reason, inaccordance with the principle of prudence, impairment tests were conducted based on the existing subsidyindicators, and impairment reserves of RMB 221,877,000 were accrued.
3. In 2020, there was a loss of 399,711,800 yuan from scrapped fixed assets, mainly including:
1) Sichuan Yongxiang Polysilicon Co., Ltd. dismantled assets and lost 288.4797 million yuan
The Company upgraded the distillation and reduction sections of the original 20,000MT high-puritypolysilicon project, and dismantled part of the equipment. In the fourth quarter of 2020, after on-site surveyand appraisal by engineering technology and equipment management personnel, the corresponding assetswere no longer used, and it was scrapped. The original book value of the scrapped assets was 573,125,100yuan, the book value was 293,318,500 yuan, and the net loss after deducting the estimated residual valuewas 288,479,700 yuan.
2) Tongwei Solar (Hefei) Co., Ltd. lost RMB 60,521,800 from dismantling assets
According to data from PVInfolink, the market share of multicrystalline cells in 2020 was about 10%,and it was expected that the market share of multicrystalline cells would further reduce to 2% in 2022.However, due to the price advantage of multicrystalline modules, there is still a certain market demand inthe market of Southeast Asia, India, etc.; in order to reduce production costs, the Company optimized andupgraded the polycrystalline production line in the fourth quarter of 2020 to extend the life cycle ofpolycrystalline products and scrap the dismounted equipment; the original book value of the scrappedassets was 201,261,800 yuan, the book value was 68,568,500 yuan, and the net loss after deducting theestimated residual value was 60,521,800 yuan.
3) Tongwei Solar (Chengdu) Co., Ltd. lost 27,562,600 yuan from dismantling assets
With the development trend of large-size products in the market, after full demonstration, the originalsmall-size R&D equipment has no further R&D value, and the Company dismantled and scrapped theequipment. At the same time, in order to extend the life cycle of the 156-size production line as much aspossible, the Company carried out technical innovation to the 156-size production line in the fourth quarterof 2020, and part of the equipment was dismantled in the process. The original book value of the aboveassets was RMB 46,827,300, the book value was RMB 29,382,600, and the net loss after deducting theestimated residual value was RMB 27,562,600.
(III) Analysis of assets and liabilities
√Applicable □Inapplicable
1. Assets and liabilities
Unit: Yuan
| Item name | Amount at the end of the current period | Proportion of the amount at the end of the current period out of the total assets (%) | Amount at the end of the previous period | Proportion of the amount at the end of the previous period out of the total assets (%) | Proportion of changes in the amount at the end of current period compared to the amount at the end of | Information notes |
| previous period (%) | ||||||
| Cash at bank and on hand | 6,264,168,242.03 | 9.75 | 2,692,681,748.77 | 5.75 | 132.64 | Mainly due to the non-public offering and receipt of raised funds of the Company |
| Receivables financing | 9,711,898,567.92 | 15.12 | 4,392,541,416.88 | 9.38 | 121.10 | Mainly due to the bill pool business of the Company, and the increased number of bank acceptance bills entering the pool with the expansion of its business scale |
| Prepayments | 1,113,458,878.37 | 1.73 | 389,875,898.15 | 0.83 | 185.59 | Mainly due to the expansion of the Company's business scale, the increased prepaid electricity bills, raw material purchases, etc. |
| Long-term prepaid expenses | 835,269,963.57 | 1.30 | 607,333,082.04 | 1.30 | 37.53 | Mainly due to the expansion of the Company's business scale and the increased water surface leasing fees, etc. |
| Deferred tax assets | 415,550,864.14 | 0.65 | 244,903,723.68 | 0.52 | 69.68 | Mainly due to the provision of asset impairment loss, and deferred income tax assets confirmed by the corresponding tax difference |
| Other non-current assets | 1,547,022,743.45 | 2.41 | 1,056,166,007.39 | 2.26 | 46.48 | Mainly due to the Company's new projects, the increased advance payment for engineering equipment |
| Bill payable | 9,411,924,434.78 | 14.65 | 5,294,623,239.24 | 11.31 | 77.76 | Mainly due to the bill pool business of the Company, and the increased number of the issued bank acceptance bills with the expansion of its business scale |
| Non-current liability due within one year | 2,533,702,158.71 | 3.94 | 1,142,185,072.84 | 2.44 | 121.83 | Mainly due to the increased long-term loans and long-term payables due within one year |
| Other current liabilities | 130,204,120.53 | 0.20 | 1,123,805,086.92 | 2.40 | -88.41 | Mainly due to the repayment of short-term financing bonds at the beginning of the period |
| Long-term loan | 6,296,585,539.34 | 9.80 | 4,088,988,505.70 | 8.73 | 53.99 | Mainly due to the expansion of the Company's investment scale and the corresponding increase in financing through long-term bank loans |
| Bonds payable | 410,096,446.33 | 0.64 | 4,212,346,552.36 | 9.00 | -90.26 | The convertible bonds issued by the Company at the end of the same period of last year have decreased due to the conversion of convertible bonds into equity in the current period. |
| Long-term payables | 2,526,572,275.65 | 3.93 | 1,901,507,753.72 | 4.06 | 32.87 | Mainly due to the increased financial lease payments |
| Deferred income | 782,273,717.14 | 1.22 | 544,324,456.73 | 1.16 | 43.71 | Mainly due to the increased government subsidies received in the current period |
| Deferred income tax liabilities | 311,949,837.40 | 0.49 | 142,204,473.38 | 0.30 | 119.37 | Mainly due to the increased temporary differences in taxation of fixed asset depreciation |
| Item | Number of consolidated statements | Influence number | Number of influence deduction |
| Current assets | 2,559,155.20 | 936,391.47 | 1,622,763.74 |
| Non-current assets | 3,866,039.60 | 3,866,039.60 | |
| Total assets | 6,425,194.81 | 936,391.47 | 5,488,803.34 |
| Current liabilities | 2,238,052.39 | 936,391.47 | 1,301,660.92 |
| Non-current liabilities | 1,032,747.78 | 1,032,747.78 | |
| Total liabilities | 3,270,800.18 | 936,391.47 | 2,334,408.71 |
| Debt-to-asset ratio | 50.91% | 42.53% |
2. Restrictions on major assets by the end of the reporting period
√Applicable □Inapplicable
| Item | Book value at the end of the period | Restricted reason |
| Cash at bank and on hand | 278,125,622.57 | Provide guarantee for Company financing and operation |
| Receivables financing | 9,511,995,347.19 | Provide pledge for the company to issue bank acceptance bills |
| Accounts receivable | 472,806,633.48 | Provide pledge for Company financing |
| Contract assets | 916,383,442.93 | Provide pledge for Company financing |
| Fixed assets | 7,509,245,190.86 | Provide guarantees, financial leases, etc. for Company financing |
| Construction in progress | 10,805,572.28 | Provide pledge for Company financing |
| Intangible assets | 218,700,255.76 | Provide pledge for Company financing |
| Investment real estate | 64,302,088.13 | Provide pledge for Company financing |
| Total | 18,982,364,153.20 |
Analysis of Operational Information in the PV Industry
1. PV equipment manufacturing business
□Applicable √Inapplicable
2. Key technical indicators of PV products
√Applicable □Inapplicable
| Product type | Technical indicator | |
| Solar grade silicon: | Output ratio of products at all levels | Proportion of electricity cost in product cost |
| Solar grade polysilicon | 100% | 39.54% |
| Solar cell: | Average conversion efficiency rate of mass production | Maximum conversion efficiency rate of R&D |
| Monocrystalline silicon cell | 23.44% | 25.18% |
| Cell module: | Average module power of mass production | Maximum module power of R&D |
| Crystalline silicon cell | 390W | 485W |
| Indicator meaning, discussion and analysis: (1) Average conversion efficiency rate of mass production of solar cell: The ratio of the maximum output power of solar cell when it is illuminated to the input optical power on the cell is an important parameter to measure the quality and technical level of the cell. The higher the conversion efficiency rate, the higher the output power of the single wafer of the cell, and the single wafer of the cell with high power can be packaged into high power PV modules. (2) The maximum conversion efficiency rate of R&D of solar cell refers to the highest average conversion efficiency rate of the tested cells in the R&D experiment. The Company strictly follows the primary standard solar cell of Fraunhofer standard in Germany and focuses on the R&D of high-efficiency cells. It further improves the conversion efficiency rate of cells and modules by adopting multi-grid, back passivation, SE process, high-resistance dense grid, alkali polishing, imbrication HJT and other technologies,so that the product quality and various indicators are taking the lead of the industry. | ||
| The development of PV powerplant: | |||||
| Number of existing powerplants and total installed capacity at the beginning of the period | Number of powerplants sold and total installed capacity in the reporting period | Number of existing powerplants and total installed capacity at the end of the period | The existing total installed capacity approved | Total volume of sold powerplant project Amount | Impact of current sale of powerplant on current operating performance of the Company |
| 44 powerplants with grid connected installed capacity of 1.5GW | 0 | 45 powerplants with grid connected installed capacity of 2.1GW | About 2GW | 0 | Powerplants not sold in the current period |
Cumulative operation of PV powerplant in this year:
Region
| Region | Installed capacity (MW) | Power generation (10,000 kWh) | Online power (10,000 kWh) | Settlement power (10,000 kWh) | Online electricity price (yuan/kwh) | Electricity revenue | Subsidy |
| East China | 917.11 | 87,685.96 | 85,954.07 | 85,135.51 | 0.51 | 29,579.62 | 14,038.68 |
| South China | 145.00 | 16,701.75 | 16,516.42 | 16,330.96 | 0.67 | 6,242.81 | 4,669.73 |
| West China | 154.91 | 16,353.47 | 16,013.99 | 15,914.05 | 0.70 | 5,269.42 | 5,926.50 |
| North China | 602.31 | 85,353.16 | 83,605.22 | 82,691.44 | 0.50 | 24,695.24 | 16,653.46 |
| Central China | 221.66 | 8,494.19 | 8,379.74 | 8,448.38 | 0.49 | 3,218.16 | 962.78 |
| Total | 2,040.99 | 214,588.53 | 210,469.44 | 208,520.34 | 2.87 | 69,005.25 | 42,251.15 |
| Distributed: | |||||||
| East China | 22.20 | 2,930.50 | 2,891.63 | 2,961.39 | 0.86 | 1,058.70 | 1,502.63 |
| West China | 20.57 | 3,270.19 | 3,180.23 | 3,143.38 | 0.53 | 1,115.82 | 561.86 |
| Central China | 15.04 | 1,973.70 | 1,880.65 | 1,873.21 | 0.86 | 638.53 | 973.27 |
| Total | 57.81 | 8,174.39 | 7,952.51 | 7,977.98 | 2.25 | 2,813.05 | 3,037.76 |
4. Recommended tables
(1). Capacity of PV products completed and under construction
√Applicable □Inapplicable
Unit:10,000Yuan Currency:RMB
| Product type | Yield | Capacity utilization rate | Production process route | Total investment in production line under construction | Current investment of production line under construction | Design capacity | (Expected) Time of going into production | Process route under construction |
| Solar grade polysilicon | 86,195.09 MT | 107.74% | Modified Siemens process | 6,524.68 | 6,524.68 | 150,000MT | 100,000MTwill be put into production in 2021 50,000MT will be put into production in 2022 | Modified Siemens process |
| Solar cell: | ||||||||
| Multicrystalline silicon cell | 3,045.26MW | 101.51% | / | / | / | / | / | / |
| Monocrystalline silicon cell | 18,321.82MW | 98.15% | PERC/ TOPCON | 100,781.37 | 100,781.37 | 15 GW | 2021 | PERC/ TOPCON |
| Cell module | ||||||||
| Crystalline silicon cell module | 1225.84MW | 71.22% | High-efficiency modules | |||||
| Analysis of the cause and impact of major changes in capacity utilization rate: Inapplicable | ||||||||
| Product type | Production and sales rate (%) | Sales revenue | Gross profit margin (%) |
| Domestic | Overseas | Domestic | Overseas | ||
| Solar grade polysilicon | 100.52 | 533,923.90 | 36.78 | ||
| Solar cell: | |||||
| Multicrystalline silicon cell | 99.06 | 84,565.12 | 52,531.59 | 6.56 | 10.83 |
| Monocrystalline silicon cell | 98.66 | 1,071,606.78 | 184,921.15 | 16.38 | 19.05 |
| Cell module | |||||
| Crystalline silicon cell | 87.21 | 86,537.12 | 64,404.15 | -2.61 | 11.58 |
| Overseas sales of multicrystalline cell products | ||
| Country or region | Sales revenue | Gross profit margin (%) |
| India | 20,556.02 | 16.06 |
| Korea | 16,658.00 | 4.67 |
| Turkey | 7,883.62 | 6.83 |
| Brazil | 1,957.16 | 17.54 |
| Germany | 1,603.80 | 3.82 |
| Philippines | 1,479.90 | 16.71 |
| Hong Kong, China | 1,450.43 | 11.59 |
| Other | 942.66 | 26.94 |
| Overseas sales of monocrystalline cell products | ||
| Country or region | Sales revenue | Gross profit margin (%) |
| Turkey | 53,053.44 | 17.58 |
| Korea | 42,841.27 | 16.54 |
| Hong Kong, China | 19,732.67 | 18.83 |
| Germany | 17,014.69 | 20.35 |
| Vietnam | 16,118.96 | 25.11 |
| France | 10,683.35 | 31.96 |
| Taiwan, China | 6,127.86 | 11.89 |
| Canada | 4,611.78 | 18.87 |
| Japan | 3,963.39 | 15.90 |
| India | 2,834.74 | 21.29 |
| Other | 7,939.00 | 16.81 |
| Overseas sales of cell module products | ||
| Country or region | Sales revenue | Gross profit margin (%) |
| Korea | 28,654.65 | 10.15 |
| Germany | 11,782.68 | 19.18 |
| Italy | 6,497.94 | 10.94 |
| Poland | 5,370.58 | 13.10 |
| Netherlands | 5,004.98 | 6.29 |
| Hong Kong Special Administrative Region | 4,313.52 | 14.21 |
| France | 1,301.87 | -10.24 |
| Ukraine | 1,053.61 | 4.87 |
| Others | 424.31 | 7.26 |
(V) Investment status analysis
1. Overall analysis on external equity investment
√Applicable □Inapplicable
According to the development strategy plan, the Company is committed to the coordinated integrationof the two major industries of “agriculture (fishery) + PV” and the further development and expansion oftheir respective segments, makes full use of the Company's existing technology and cost advantages,accelerates the scale layout, expands the competition gap, and strives to consolidate and builds the leadingposition of the Company in the core link of the industrial chain.
(1) Significant equity investment
□Applicable √Inapplicable
(2) Significant non-equity investment
√Applicable □Inapplicable
Unit: 10,000 Yuan
| Project name | Project budget | Amount invested in the reporting period | Cumulative investment amount | Project progress | Benefits realized during the reporting period | Sources of funds |
| Leshan Phase-II 50,000MT High-purity Polysilicon Project | 401,020.00 | 4,574.63 | 4,574.63 | Under construction | / | Self-raised |
| Baoshan Phase-I 50,000MT High-purity Polysilicon Project | 408,042.00 | 1,892.25 | 1,892.25 | Under construction | / | Self-raised |
| Baotou Phase-II 50,000MT High-purity Polysilicon Project | 413,753.00 | 57.80 | 57.80 | Under construction | / | Self-raised |
| Meishan Phase-II 7.5GW High-efficiency Solar Cell Project | 240,000.00 | 52,313.27 | 52,313.27 | Under construction | / | Raised funds + self-raised |
| Jintang Phase-I 7.5GW High-efficiency Solar Cell Project | 270,061.39 | 48,468.10 | 48,468.10 | Under construction | / | Raised funds + self-raised |
(VII) Analysis of major holding companies and joint-stock companies
√Applicable □Inapplicable
Unit: 10,000 Yuan
| Full name of subsidiaries | Business nature | Registered capital | Total assets | Net assets | Net profit |
| Tongwei Solar (Hefei) Co., Ltd. (consolidated) | PV industry | 215,000.00 | 2,229,164.89 | 310,849.00 | 100,555.24 |
| Sichuan Yongxiang Co., Ltd. (consolidated) | PV industry | 125,550.54 | 1,402,122.07 | 595,713.19 | 78,663.53 |
accounting for 54.6% of the total national feed output, and with increase of 4.1 percent points over theprevious year. In terms of sales methods, the total amount of bulk feed (for large-scale breeding farms)was 58.976 million tons, with a year-on-year increase of 33.6%, accounting for 25.6% of the totalcompound feed output, and it increased by 4.6 percent points over the previous year. With the continuousacceleration of the concentration and intensification of the feed processing industry, the advantages ofleading companies in efficiency, technology, management, capital, and talent have been strengthened, thedifferentiation of the industry echelon is obvious, and the clearance of small-scale feed output hasaccelerated. At the same time, leading companies continue to increase investment in breeding, foodprocessing and trade links, the integrated scale of industrial chain continues to expand, and the competitivelandscape has begun to transform into a comprehensive strength competition in the entire industrial chainof agriculture and animal husbandry.
(4) Accelerate the promotion of green and healthy aquaculture
On April 1, 2020, the General Office of the Ministry of Agriculture and Rural Affairs issued theNotice on Implementing the "Five Actions" for Green and Healthy Aquaculture in 2020; all places wererequired to focus on the promotion action plan of ecological and healthy aquaculture model, the promotionaction plan of farming tail water treatment model, medicine reduction action plan for aquaculture, theaction plan for replacing juvenile trash fish with formula feed, and the "five-action" of action plan forimproving the quality of aquaculture to ensure the stable supply of aquatic products in our countrythroughout the year and the green development of the aquaculture. Affected by this, new aquaculturemodes such as integrated rice farming, factory-based circulating aquaculture, and container-typecirculating aquaculture have emerged in various places, and the demand for high-quality feed that meetsthe requirements of the new aquaculture model is increased. At the same time, 12 provinces (regions)including Liaoning and Jiangsu have successively carried out the test of replacing juvenile trash fish withformula feed, which will further increase the demand for aquatic feed. Leading feed companies activelyparticipate in the development and promotion of new aquaculture models by virtue of their strong technicalresearch and development capabilities and promotion service capabilities, launch supporting feeds andanimal protection products in a targeted manner, and expand their brand influence and product marketshare.
2. PV new energy industry
(1) "Carbon neutrality" has become a global consensus, and PV new energy is ushering in majordevelopment opportunities
On December 12, 2015, the 196 parties to the United Nations Framework Convention on ClimateChange passed the Paris Agreement at the Paris Climate Change Conference, with the purpose of makingarrangements for the global response to climate change after 2020. According to the Paris Agreement,countries need to control the global average temperature rise within 2 degrees Celsius above the pre-industrial level in this century, and strive to control it within 1.5 degrees Celsius. This means that theworld needs to achieve "carbon neutrality" before 2050. In 2020, the COVID-19 seriously dragged theglobal economy. In order to restore economic vitality and revitalize climate governance, many countrieshave successively implemented energy-saving emission reduction and renewable energy developmentplans. As more countries participate in the ranks of "carbon reduction" and "carbon neutrality", the globalgreen transformation has entered a new stage, and as the main force of renewable energy, PV will usherin major development opportunities.
(2) The continuous improvement of PV technology and processes will help continuously reduce thecost of PV power generation
Cost reduction is the forever theme of the development of the PV industry. According to IRENAstatistics, it has found that the cost of solar PV power generation dropped by 82% from 2010 to 2019. Thesharp drop in cost was mainly due to technological progress, economies of scale, supply chain competitionand the increase in developer experience. According to CPIA statistics, the global minimum bid-winningelectricity price for PV power generation was 0.0112 Euro/kWh in 2020, which was equivalent toapproximately RMB 0.091/kWh, and reduced by 19.7% than the lowest bid-winning electricity price in2019; the domestic lowest bid-winning electricity price in 2020 was RMB 0.2427/kWh, which wasreduced by 6.7% than the lowest bid-winning electricity price in 2019. In addition, the initial fullinvestment cost of the ground PV system in our country in 2020 was about 3.99 yuan/W, which wasdecreased by 0.56 yuan/W than 2019, the decrease was12.3%. It was expected that the initial fullinvestment cost of PV systems in 2021 would be reduced to 3.81 yuan/W, so that most areas in our countrycan achieve PV parity online, and promote our country to accelerate the realization of energytransformation and power structure transformation. With the increased proportion of large-size and
double-sided modules, the large-scale mass production of cutting-edge technologies such as HJT andTOPCON, and the wide application of tracking brackets, the cost of PV power generation will continueto decline, and the advantage as the main force of renewable energy will be consolidated.
(3) The scale of newly installed PV capacity continues to grow, and the industrial chain developssteadilyIn the face of the raging COVID-19, the global PV market kept growing in 2020, showing strongtrend. According to CPIA, the newly installed PV capacity in the next five years will maintain an averageannual compound growth rate of 15-20%. In 2025, the global newly installed PV capacity is expected toreach 270-330GW, of which domestic new installed capacity will reach 90-110GW. At present, the PVindustrial chain in our country has the leading advantages of scale, cost, and technology in the world. Upto now, the cumulative installed capacity, newly installed capacity, polysilicon output, and PV moduleoutput in our country have ranked first in the world for 6 consecutive years, 8 years, 10 years, and 14 yearsrespectively. With the continuous expansion of PV installations, the PV industry in our country willcontinue to maintain high growth.
Data source: CPIA Review of 2020 and Outlook of 2021 of China's PV Industry
Data source: CPIA Review of 2020 and Outlook of 2021 of China's PV Industry
Predication of newly added installation of global PV from 2011 to 2025Conservative situation
| Conservative situation | Optimistic situation |
Predication of newly added installation of domestic PV from 2011 to 2025Conservative situation
| Conservative situation | Optimistic situation |
(4) The concentration of the PV industry continues to increase and the Matthew effect continues tostrengthenAt present, leading companies continue to increase their market share by virtue of their leadingadvantages in technology, cost, management, and scale. The backward output is gradually withdrawn fromthe market after multiple rounds of reshuffle, and the industry concentration continues to increase.According to statistics, the output of the top five polysilicon companies accounted for 87.5% of the totaldomestic polysilicon output in 2020; the output of the top five silicon wafer companies accounted for 88.1%of the total domestic silicon wafer output; the output of the top five crystalline silicon cell companiesaccounted for 53.2% of total domestic cell output, the output of the top five crystalline silicon modulecompanies accounted for 55.1% of the total domestic module output, all of which achieved substantialgrowth over the same period. The scale of leading enterprises continues to expand, their profitability iseffectively improved, and their comprehensive competitive advantages continue to increase.(II) Development strategy of the Company
√Applicable □Inapplicable
The Company's development strategy is to build a world-class safe food supplier and clean energyoperator. Utilizing the comprehensive strength and large-scale advantages accumulated for a long time inscientific research, branding, comprehensive operations, etc., it adapts to industry development trends,adheres to the specialization, large-scale, and industrialization process of the PV new energy segment andagriculture and animal husbandry segments, and optimizes and improves their respective industrial chain,strives to promote the Company's sustainable and stable development by both endogenous and extensionalinvestment methods, promotes the continuous and stable development and realizes the Company's visionof "For Better Life".
1. Agriculture and animal husbandry segment: to build a world-class safe food supplier
Feed industry: consolidate the Company's leading position in the global aquatic feed industry, andadhere to the parallel of specialization and large-scale in accordance with the development trend of theindustry. Improve and optimize the industrial chain, and realize the stable development of the industrythrough extensional development and endogenous growth such as overseas plant construction, domesticand foreign mergers and acquisitions.
Aquaculture: based on the Company's leading resource advantages (aquaculture resources, channelresources) in the industry, expand aquaculture to the downstream, and increase output under the premiseof ensuring quality. Improve the automation, intelligence and environmental protection standards ofaquaculture, promote the transformation and upgrading of traditional fishery to modern fishery, and builda leading production base for safe aquatic products with full traceability.
Aquatic product trade and processing: accelerate the promotion of aquatic product trade and deepprocessing business, and open up the industrial chain from the breeding end to the consumer end. TheCompany's green and safe food benchmark "Tongwei Fish" has been highly recognized in the regionalmarket, and the successful model will be replicated in many places in the future. At the same time, it isactively deploying big data for aquatic product sales, combining e-commerce platforms with offlineaquatic product wholesale markets to create a fresh and live aquatic product circulation system. Give fullplay to the advantages of the "Tongwei Fish" brand, and strive to expand along the path of breeding-wholesale-retail-consumer end, to achieve full coverage of breeding, production, processing, and trade.
2. PV new energy segment: build a world-class clean energy operator
The Company has become one of the leading product manufacturers in the PV industry. In the future,it will continue to expand its scale advantages in key aspects of PV manufacturing, accelerate thepromotion of the "Fishery& PV Integration" coordinated development model, and move towards a world-class clean energy operator.
In the field of PV manufacturing, give full play to the Company's leading technology research anddevelopment and cost control capabilities to consolidate the Company's leading position in the productmanufacturing field. Accelerate the expansion of high-purity polysilicon capacity, grasp the time windowfor import substitution and elimination of backward output; in the solar cell link, grasp the opportunity ofincreasing industry concentration, and continue to expand scale and cost leading advantages.
In the field of PV power generation, unswervingly promote the development model of "Fishery&PV Integration". The Company's advantageous agricultural resources are combined with the resources ofthe PV industry to form a three-dimensional "Fishery& PV symbiosis" economy, build a business model
integrating feed, safe aquatic product production and green new energy development, and create thedifferentiated core competitiveness of the Company.(III) Business plan
√Applicable □Inapplicable
In 2021, the Company will resolutely implement the business policy of “gathering and focusing,execution in place, and efficient operation”, continue to consolidate the leading advantages in aquatic feed,high-purity polysilicon, solar cells and other industries, enhance the Company's value, and increaseshareholder returns.
1. Agriculture and animal husbandry segment
In 2021, the Company's feed, food and related industrial chain businesses will strive to achieve ayear-on-year increase of more than 10% in operating revenue, exceeding 23 billion yuan. To ensure thatthe goal is achieved, the Company plans to adopt the following operating measures:
(1) Focus on consolidating product strength. Resolutely implement the "quality policy", take multiplemeasures simultaneously to create stable and leading product quality; continue to optimize the productstructure, focus on superior products, and create a leading product cost performance advantage.
(2) Continue to promote the two-wheel drive of technology and market. Using technology as thestarting point, research and verification of aquaculture solutions are carried out around "product + mode",the three-in-one professional demonstration base of "product + mode + service" is established, acomprehensive aquaculture solution is output for the marketing system to achieve accurate delivery andprecise performance of product value at the aquaculture terminal.
(3) Fully implement standardization. Continue to standardize operation improve on-site managementlevel and professional operation capabilities, and form a highly efficient operation model with well-qualified employees, guaranteed quality, highest efficiency, optimal cost, and continuous value-added.
(4) Continue to promote digital transformation. Provide customers with a more convenient andefficient sales service experience, and help the Company achieve customer-centric marketingtransformation; deepen the promotion and application of new technologies such as RPA, AI, and establisha more efficient and intelligent operation management platform for the Company; and improve theoperation efficiency and strengthen risk management and control.
2. PV new energy segment
In 2021, the high-purity polysilicon business strived to achieve production and sales of more than90,000MT, and the solar cell business strived to achieve production and sales of more than 30GW; the PVpower generation business was expected to invest more than 1GW in the construction of the "Fishery&PV Integration" project. Therefore, the Company intended to take the following operating measures:
(1) High-purity polysilicon business
The Company took safety and environmental protection as the operating premise, consolidated theresponsibility of safe production management during the operation process, and achieved the goal of "zeroaccident, zero unscheduled shutdown, zero instance of non-compliance, zero wrongful operation";continued to carry out technological innovation and refined benchmarking to eliminate the problems anddifficulties in the production and operation process, achieved further improvement of process level andbusiness performance, continued to promote the transformation of technology research and developmentresults; continued to consolidate the leading position of high-purity polysilicon. Firstly, the Companyfocused on creating high-quality projects, used standardized list management to ensure that new projectswere strictly put into operation according to the high standards, high quality and strict requirements.Secondly, the Company continued to build smart factories, focused on the five themes of “safety,environmental protection, quality improvement, cost reduction, and efficiency”, and integrateddigitalization and intelligence into the entire process of design, construction, and plant operationmanagement to realize the high-efficiency operation model of digital production and operation, intelligentoperation and management, and intelligent decision-making support of "Leshan + Baotou + Baoshan"three bases; strengthened the construction of talent echelon, took corporate culture as the link, performanceappraisal as the starting point, and built a team that can know operation and can manage and speak withdata to improve the overall quality and professional capabilities of the team.
(2) Solar cell business
In terms of solar cells, the Company firmly adhered to the "Pareto principle" and continued tomaintain its leading advantages in scale, cost, and technology. In terms of capacity scale, it was guaranteedthat the projects under construction would be put into production within the year as planned. The cellcapacity of the Company was expected to exceed 55GW by the end of 2021. In terms of cost reduction
and efficiency enhancement, the Company continued to promote delicacy management and manufacturingto achieve cost reductions in procurement, production, and management. In terms of technology researchand development, the Company closely followed cutting-edge processes and technologies. On the onehand, it continued to optimize and improve the multi-grid, back passivation, SE technology, highresistance dense grid, alkali polishing of the existing technology; on the other hand, it accelerated thepromotion of the research and development process of TOPCON, HJT and other new technologies. Thesmooth operation of the 1GW scale HJT pilot line will be realized in 2021, which will provide sufficientverification for the mass production introduction of later research and development results. In terms ofmarket development, it focused on improving product cost performance, meeting the high-costperformance needs of downstream customers, using the synergistic advantage of the silicon material tocell industrial chain, strengthening cooperation with strategic suppliers and strategic customers, andachieving mutual trust and win-win results. The Company actively explored domestic and overseasmarkets to cover more customer groups.
(3) PV power generation business
The Company continued to promote the development of the "Fishery& PV Integration" project, inorder to ensure the quality of development, give priority to selecting large-scale bases with good watersurface resources and good consumption conditions, the Company continued to promote the cost reductionprocess of "Fishery& PV Integration", participated in market competition, and continued to make use ofthe unique land efficient use in this model and competitive advantage of multi-industry integration.
（IV）Possible risks
√Applicable □Inapplicable
1. Feed industry
(1) The impact of raw material price fluctuations. The major component of feed cost is the cost ofraw materials. The current raw material prices are very susceptible to many factors such as theinternational political and economic situation, changes in the output of the main producing areas, nationalcollection and storage and subsidies, exchange rate fluctuations, and changes in logistics costs. Largefluctuations of the raw material price may affect the product gross profit level of the Company.
Risk response measures: the Company strengthened team business ability training, closely trackedchanges in disturbance factors, predicted the price trend of raw materials through systematic research andanalysis; combined supply, production, and sales requirements, rationally arranged purchasing plans, andimplemented optimal inventory management; participated in the operation and management of the IPDproduct line together with formula product managers and quality control; ensured the continuous follow-up of research and development, and met the needs of raw material substitution under extreme conditions.
(2) The impact of market fluctuations. Feed sales are directly affected by downstream aquaculture.Natural disasters, abnormal temperature and the spread of diseases will adversely affect aquaculture,leading to fluctuations in feed demand.
Risk response measures: the Company paid close attention to the climate, natural disasters, anddiseases, with prevention first and remedy as the supplement, quickly formulated response measures, andactively helped farmers to resume breeding activities; increased investment in disease prevention andcontrol research, promoted scientific aquaculture model according to the needs of aquaculture species andhelped farmers maximize their benefits; the rich feed varieties of the Company and reasonable regionallayout of branch companies can effectively cope with systemic market fluctuation risks.
(3) Policy impact. With the implementation of the new Environmental Protection Law, greenaquaculture norms and policy subsidies, the aquaculture industry is towards antibiotic-free, green, large-scale, and intelligent development, and scattering raising-households are facing greater challenges.
Risk response measures: according to the development trend of aquaculture, the Company rationallyadjusted the Company's business strategy and increased the development of large-scale farms; resolutelyimplemented antibiotic-free feeds, made reasonable formulas according to the nutritional needs ofdifferent aquaculture species at each growth stage, and launched high-quality feed products, enhanced thelevel of product profitability; guided the transformation and upgrading of scattering raising-householdswith strong operating capabilities, and actively strived for relevant subsidy support policies to achievelarge-scale development.
(4) The risk of exchange rate fluctuations. With the increased international raw material trade demandand the expanded overseas feed business of the Company, frequent two-way fluctuations in the RMBexchange rate will have a more obvious impact on business operations.
Measures taken: the Company paid close attention to and studied the development trends of theinternational foreign exchange market, and selected favorable payment settlement currencies andsettlement methods accordingly; improved the research and forecast capabilities of the foreign exchangemarket, strengthened the management of import and export business, and used financial instruments suchas future foreign exchange settlement, change over and foreign exchange options business to lock theexchange rate risks. The Company made full use of the advantages of the Company in scale, technology,and brand, and actively strived for the initiative in the negotiation and negotiation mechanism for prices,currencies, and settlement cycles.
(5) The risk of force majeure. At present, the domestic COVID-19 has been effectively controlled,and social and economic activities have returned to normal. However, there have been repeated epidemicsoverseas. Due to the continuous international trade and exchanges, the country is still facing potentialthreats of COVID-19.
Measures taken: the Company strengthened the analysis and prediction of force majeure risks suchas the epidemic, and actively took corresponding measures to respond to changes in the marketenvironment.
2. PV industry
(1) The imbalance of supply and demand in the industrial chain and the impact of product pricefluctuations. In 2020, the PV supply chain was affected by the uneven supply and demand, and the overallprice fluctuated greatly. Considering that the COVID-19situation is still uncertain, and the supply of rawmaterials such as polysilicon and glass continues to be tight, there may be large price fluctuations in theindustrial chain, which will have an adverse impact on the construction of PV projects.
Measures taken: the Company strengthened industrial chain tracking and prediction, strictbenchmarking management, continued to promote refined management, continued to consolidate thecompetitive advantages of the Company in quality, scale, technology, and cost, and further increased itsmarket share in the field of high-purity polysilicon and high-efficiency market rate.
(2) Impact risks of industry policies. The cost of PV power generation in most countries and regionsin the world is lower than the cost of traditional fossil energy power generation, so the PV powergeneration has become the main form of energy for most countries to achieve carbon emission reduction,and various countries have successively issued relevant incentive policies to promote the continuousincrease of PV power generation scale. If the policies of various countries are greatly adjusted, the installedcapacity of PV is expected to be significantly affected.
Measures taken: the Company closely followed the changes in related policies, combined its ownstrategic development, and formulated a reasonable business development plan for PV powerplants.
(3) Technology iteration risk. The PV industry is undergoing rapid technology upgrades, and thepressure to reduce costs is forcing companies to continue to develop new technologies. With thecontinuous improvement of cell and module efficiency and further reduction of costs, companies will facesurvival of the fittest. In recent years, PV companies have made breakthroughs in the production ofcrystalline silicon cells such as TOPCON, HJT, and IBC, and have continuously set new records. At thesame time, crystalline silicon cells are also facing competition from thin film, perovskite and otheramorphous silicon technology routes.
Measures taken: the Company actively carried out pilot trials and transformations, including HJT andTOPCON, which may become the mainstream technology routes for next-generation mass production,while maintaining the tracking and R&D demonstration of forward-looking technologies to ensure thetechnological leading of the Company.
(4) The risk of force majeure
The World Health Organization pointed out that humans may continue to coexist with the COVID-19 for a long time. At present, overseas markets account for about 2/3 of the global PV market demand.Combined with the emergence of the mutated COVID-19, if the overseas epidemic cannot be effectivelycontrolled, the weakening of PV terminal demand cannot be ruled out.
Measures taken: the Company strengthened the analysis and prediction of force majeure risks suchas the epidemic, actively took corresponding measures to respond to changes in the market environment,increased the development of strategic customers, enhanced product market competitiveness, and reducedthe adverse effects of force majeure risks.
(V) Others
□Applicable √Inapplicable
IV. Explanation of the situation and reason that the Company does not disclose in accordance
with the Code due to special reasons such as inapplicability of the Code, state secrets, tradesecrets and so on
□Applicable √Inapplicable
Section V Important MattersI. Common Stock Profit Distribution Plan or Capital Reserves Share Capitalization Plan(I) Formulation, implementation or adjustment of cash dividend policy
√Applicable □Inapplicable
In accordance with the requirements of the Guidelines for the Supervision of Listed Company No. 3-Cash Dividend for the Listed Company issued by the China Securities Regulatory Commission, combinedwith the actual situation of the Company, the Company has revised and improved the profit distributionclauses in the Articles of Association for many times; and effective system guarantee is provided for cashdividend and the minimum dividend ratio, and it will be implemented strictly. In 2012, 2015, and 2018,the Company held a general meeting of shareholders to review and approve the Company Dividend Planfor the Next Three Years (2012-2014), Company Dividend Plan for the Next Three Years (2015-2017),Company Dividend Plan for the Next Three Years (2018-2020), which further clarify the implementationrules for cash dividend.During the reporting period, the Company implemented profit distribution in strict accordance withthe above relevant policies. After deliberation at the eighth meeting of the seventh board of directors ofthe Company on April 17, 2020, the Profit Distribution Plan and Capital Reverses Share CapitalizationPlan in 2019 was approved at 2019 general meeting of shareholders of the Company on May 12, 2019;based on the total capital stock of 4,287,855,684 shares, the Company paid a cash dividend of RMB 1.86(tax included) for every 10 shares to all shareholders; 797,541,157.22 yuan of cash dividend weredistributed, and the plan was completed on May 26, 2020.During the reporting period, the profit distribution policy and plan implementation of the Companywere based on the premise of fully protecting the legitimate rights and interests of small and mediuminvestors, conform to the Articles of Association; the corresponding review procedures were performed,and independent directors issued clear opinions.
The distribution plan of the Company in 2020 is: based on the total share capital of 4,501,548,184shares, a cash dividend of 2.41 yuan (tax included) will be distributed to all shareholders for every 10shares, and the total cash dividend will be 1,084,873,112.34 yuan. The plan will be submitted to the 2020annual general meeting of shareholders for deliberation.
On April 9, 2021, the Company held the eighteenth meeting of the seventh board of directors, andreviewed and approved the Shareholder Dividend Plan for the Next Three Years (2021-2023). The planstill needs to be submitted to the 2020 general meeting for deliberation.
(II) The Common Stock Dividend Distribution Plan of the Company for the past three years
(including the reporting period), and the Capital Reserves Share Capitalization Plan
Unit:Yuan Currency:RMB
| Dividend year | Number of bonus shares per 10 shares (shares) | Number of dividends per 10 shares (RMB) (tax included) | Number of transfer per 10 shares (shares) | Amount of cash bonus (tax included) | Net profit attributable to common shareholders of the listed company in consolidated statements in dividend-receiving year | Proportion (%) accounting for net profit attributable to common shareholders of the listed company in consolidated statements |
| 2020 | 0 | 2.41 | 0 | 1,084,873,112.34 | 3,607,923,359.56 | 30.07 |
| 2019 | 0 | 1.86 | 0 | 797,541,157.22 | 2,634,568,828.17 | 30.27 |
| 2018 | 0 | 1.60 | 0 | 621,179,555.20 | 2,018,746,008.65 | 30.77 |
(III) Situation of repurchasing shares in cash and being included in cash dividend
□Applicable √Inapplicable
(IV) In the reporting period, if the parent Company is profitable and the profit available for
distribution to ordinary shareholders is positive, but does not propose a plan for thedistribution of cash profit on common shares, the Company shall disclose the reasons andthe use and use plan of the undistributed profit in detail
□Applicable √Inapplicable
II. Implementation of commitments(I) The actual controllers, shareholders, related parties, acquirers, and the Company promised
the commitments of related parties during the reporting period or continuing into thereporting period
√Applicable □Inapplicable
| Commitment background | Commitments type | Commitment party | Commitments content | Commitment time and duration | Whether the duration for performance is provided | Whether the commitment is performed timely and strictly | Reasons of failure in timely performance | Next plan in case of failure in timely performance |
| Commitments related to major asset restructuring | Solve competition in the same industry | Liu Hanyuan, Tongwei Group | As of the date of issuing this letter of commitment, apart from the target company, I and Tongwei Group have not invested in any company, enterprise or other business entity that has the same or similar business as the target company; apart from the target company, I and Tongwei Group have not operated the same or similar business as the target company. There is no horizontal competition between I, Tongwei Group and other companies under its control and the target company. I, Tongwei Group and other companies under control will not engage in business activities that are the same, similar or competing with the target company’s existing business or products in any form, including not establishing, investing, acquiring, or merging the companies with the same or similar business with the existing business in domestic and overseas or the any form of horizontal competition with economic organizations with the target company. I and Tongwei Group promise to strictly fulfill the above commitments. If the rights and interests of Tongwei Co., Ltd. or the target company are damaged due to violation of the above commitments by I, Tongwei Group and other companies under its control, Tongwei Group and I will bear the responsibility in accordance with the law. | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable |
| Resolve related transactions | Liu Hanyuan, Tongwei Group | There is no apparently unfair related transaction between the promiser and other enterprises under its control and the target company. After completing this transaction, the promiser and other companies under its control will try to avoid or reduce related transactions with the target company; for related transactions that | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable |
| cannot be avoided or exist for reasonable reasons, they will sign a standardized related transaction agreement with the target company in accordance with the law; the approval procedures are performed in accordance with relevant laws, regulations, rules, listing rules and other regulatory documents, as well as Tongwei Co., Ltd.’s Articles of Association; it will conduct transactions with Tongwei Co., Ltd. and its subsidiaries at a fair market price, and will not use such transactions to engage in any actions that damage the interests of Tongwei Co., Ltd. and its subsidiaries; guarantee to perform the information disclosure obligations of related transactions in accordance with relevant laws, regulations, listing rules and Tongwei Co., Ltd.'s Articles of Association. The promiser guarantees to strictly fulfill the above commitments. If the rights and interests of Tongwei Co., Ltd. or the target company are damaged due to the violation of the above promises by the promiser and other enterprises under its control, the promiser will bear the corresponding compensation liabilities in accordance with the law. | |||||||
| Others | Liu Hanyuan, Tongwei Group | The promiser will not damage the independence of Tongwei Co., Ltd. due to this reorganization, maintain independence from Tongwei Co., Ltd. in terms of assets, personnel, finance, organization and business, and strictly abide by the relevant regulations of the China Securities Regulatory Commission on the independence of the listed company, and does not violate regulations or use Tongwei Co., Ltd.to provide guarantees, not to illegally occupy the funds of Tongwei Co., Ltd., and maintains the independence of Tongwei Co., Ltd.. This commitment remains valid for the legal and effective existence of Tongwei Co., Ltd. and during the period when Liu Hanyuan is the actual | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable |
| controller of Tongwei Co., Ltd. and Tongwei Group is the controlling shareholder of Tongwei Co., Ltd. If the promiser violates the above commitment and causes loss to Tongwei Co., Ltd. and other shareholders, the promiser shall bear the corresponding compensation liability. | ||||||||
| Others | Tongwei Group | Secretly appropriate and/or paid use of assets, funds, and other resources of Tongwei Co., Ltd.; if the group company and Tongwei Co., Ltd. have normal capital exchanges, they will strictly abide by relevant laws, regulations, administrative rules, and Articles of Association (including but not limited to regulations on related party transactions). | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable | |
| Commitments relating to the initial public offering | Solve the horizontal competition | Tongwei Group | It will not and cause its affiliates not to develop, operate or assist in the operation, participation, or engagement of the main business of Tongwei Co., Ltd. alone or together on behalf of any person, firm or company (enterprise, unit) that directly or indirectly generates competition. Agree to compensate for all loss, damages and expenses suffered by Tongwei Co., Ltd. due to the violation of the letter of commitment. | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable |
| Solve the horizontal competition | Liu Hanyuan, Guan Yamei | No longer invest in new shares in companies that are related or similar to the company's business. | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable | |
| Other | Tongwei Group | Secretly appropriate and/or paid use of assets, funds, and other resources of Tongwei Co., Ltd.; if the group company and Tongwei Co., Ltd. have normal capital exchanges, they will strictly abide by relevant laws, regulations, administrative rules, and Articles of Association (including but not limited to regulations on related party transactions). | This commitment remains valid and is being implemented. | No | Yes | Inapplicable | Inapplicable |
| Commitments related to refinancing | Restricted shares | Non-public offering object | Qamdo Tongrui Industrial Partnership (Limited Partnership), Shanghai Yusheng Investment Management Co., Ltd., Shanghai Yingshui Investment Management Co., Ltd.-Yingshui Yueyi No. 19 Private Securities Investment Fund, Shanghai Xinghan Asset Management Co., Ltd. (Xinghan Asset Management- Xingyuan No. 5 Single Asset Management Plan), Taikang Life Insurance Co., Ltd. Investment Link Innovation Power Investment Account, E Fund Management Co., Ltd., Yunnan Energy Investment Capital Investment Co., Ltd., Hongde Fund Management Co., Ltd., Dajia Asset Management Co., Ltd. -Blue Chip Selected No. 5 Collective Asset Management Product, Dacheng Fund Management Co., Ltd., Jiutai Fund Management Co., Ltd., Hillhouse Capital Management Co., Ltd.-China Value Fund (Exchange), Caitong Fund Management Co., Ltd., Zhuque Fund Management Co., Ltd., Chengdu Fusenmei Home Furnishing Co., Ltd., and Ruiyuan Fund Management Co., Ltd. obtained the shares through this non-public offering, which shall not be transferred within 6 months from the end of the issuance. | 6 months from December 8, 2020. | Yes | Yes | Inapplicable | Inapplicable |
| Commitments related to refinancing | Other | Tongwei Co., Ltd. | Before using raised funds or within 36 months after the raised funds are in place, capital investment in similar financial services or new capital investment in Tongwei Agricultural Finance Guarantee Co., Ltd. (including capital increase, borrowing, guarantee and other forms of capital investment) shall not be allowed. | Before all raised funds are used up or within 36 months after the funds raised are in place. | Yes | Yes | Inapplicable | Inapplicable |
(II) The assets or projects of the Company have profit forecasts, and the reporting period is still
in the profit forecast period, the Company explains the reasons whether the assets and itemsreach original profit forecast;
□Realized □Unrealized √Inapplicable
(III) Completion of performance commitments and its impact on goodwill impairment test
□Applicable √Inapplicable
III. Occupation of funds during the reporting period and progress in clearing debt
□Applicable √Inapplicable
IV. Explanation of the Company about the "non-standard opinion audit report" of the
accounting firm
□Applicable √Inapplicable
V. The analysis and explanation of the Company about the reasons and impact of changes in
accounting policies, accounting estimates or corrections of major accounting errors(I) The analysis and explanation of the Company about the reasons and impact of changes in
accounting policies and accounting estimates
√Applicable □Inapplicable
The Ministry of Finance revised the Accounting Standards for Business Enterprises No. 14-Revenuein 2017. The revised standard stipulates that for the first implementation of the standard, the amount ofretained earnings and other related items in the financial statements at the beginning of the year should beadjusted according to the cumulative impact, and the information during the comparable period should notbe adjusted.
The Company has implemented the new revenue standard from January 1, 2020. According to thestandards, the Company only adjusts the retained earnings at the beginning of 2020 and the amount ofother related items in the financial statements for the cumulative impact of contracts that have not beencompleted on the date of the first implementation, and the comparative financial statements are notadjusted.
The Company adjusted the receivable electricity price subsidies corresponding to powerplants notincluded in the national subsidy catalog from the original "accounts receivable" item to the "contractassets" item for presentation. The tax-exclusive amount of advance receipts related to sales of goods wasadjusted from the original “advance receipts” item to “contract liabilities” and the corresponding added-value tax and output tax were adjusted from the original “advance receipts” item to “other current liabilities”"or "other non-current liabilities" presentation according to the liquidity, this change only affects thepresentation of financial statements, and does not affect total assets, net assets and net profit.
The impact of the above accounting policy changes on the financial statements is as follows:
① Consolidated balance sheet
Unit: Yuan Currency: RMB
| Report item | December 31, 2019 | Adjustment number | 2020/1/1 |
| Accounts receivable | 1,672,241,936.75 | -998,603,103.27 | 673,638,833.48 |
| Contract assets | 998,603,103.27 | 998,603,103.27 | |
| Advance receipt | 1,571,445,278.97 | -1,521,138,014.69 | 50,307,264.28 |
| Contract liabilities | 1,484,683,326.76 | 1,484,683,326.76 | |
| Other current liabilities | 1,123,805,086.92 | 36,454,687.93 | 1,160,259,774.85 |
| Report item | December 31, 2019 | Adjustment number | 2020/1/1 |
| Advance receipt | 142,278,536.45 | -137,760,053.55 | 4,518,482.90 |
| Contract liabilities | 137,648,472.21 | 137,648,472.21 | |
| Other current liabilities | 1,099,583,333.30 | 111,581.34 | 1,099,694,914.64 |
(II) Analysis and explanation of the Company about the reasons and impact of the correction of
major accounting errors
□Applicable √Inapplicable
(III) Communication with the former accounting firm
□Applicable √Inapplicable
(IV) Other notes
□Applicable √Inapplicable
VI. Appointment and dismissal of accounting firms
Unit: 10,000Yuan Currency: RMB
| Now engaged | |
| Name of domestic accounting firm | Sichuan Huaxin (Group) CPA Firm (Special General Partnership) |
| Remuneration of domestic accounting firm | 381 |
| Audit period of domestic accounting firm | 20 years |
| Name | Remuneration | |
| Internal control auditing accounting firm | Sichuan Huaxin (Group) CPA Firm (Special General Partnership) | 119 |
| Financial consultant | China Securities Co., Ltd. | 0 |
| Sponsor | China Securities Co., Ltd. | 400 |
XI. Punishment and rectification of the listed company and their directors, supervisors, senior
managers, controlling shareholders, actual controllers, and acquirers
□Applicable √Inapplicable
XII. Explanation of the integrity status of the Company and its controlling shareholders and
actual controllers during the reporting period
□Applicable √Inapplicable
XIII. The situation and impact of the Company’s equity incentive plan, employee stock ownership
plan or other employee incentive measures(I) Relevant incentive matters have been disclosed in the temporary announcement and there
is no progress or change in subsequent implementation
□Applicable √Inapplicable
(II) The temporary announcement is not disclosed or has follow-up progress incentivesEquity incentive situation
□Applicable √Inapplicable
Other notes
□Applicable √Inapplicable
Employee stock ownership plan
√Applicable □Inapplicable
The Company held the 20th meeting of the sixth board of directors on December 15, 2017, andreviewed and approved the Employee Stock Ownership Plan (Draft) and its Summary of Tongwei Co., Ltd.in 2017. It was reviewed on the first extraordinary general meeting of shareholders of 2018 held on January5, 2018; please refer to the related announcements of the employee stock ownership plan of the Companyin 2017 published on the designated information disclosure media and the Shanghai Stock Exchangewebsite (www.sse.com.cn) on December 16, 2017 (Hereinafter referred to the "Employee StockOwnership Plan"). On May 7, 2018, the Company’s employee stock ownership plan "Yunxin-Hongrui No.28 Collective Capital Trust Plan" bought 77,703,944 shares of the Company through the trading systemof the Shanghai Stock Exchange, accounting for 2.00% of the Company’s total equity; the total transactionamount was 897,979,400 yuan, the average transaction price was 11.56 yuan/share, the lock-up periodwas from May 8, 2018 to May 7, 2019, and the duration was 36 months, that is, until to January 5, 2021,the Company has sold all company stocks held by the employee stock ownership plan before the expiration,and the employee stock ownership plan has been implemented and terminated.
Other incentive measures
□Applicable √Inapplicable
XIV. Significant related transactions(I) Related transactions related to daily operations
1. Matters that have been disclosed in the temporary announcement and have no progress orchanges in subsequent implementation
□Applicable √Inapplicable
2. Matters that have been disclosed in the temporary announcement, but there are progress or
changes in subsequent implementation
□Applicable √Inapplicable
3. Matters not disclosed in the temporary announcement
□Applicable √Inapplicable
(II) Related transactions in the acquisition or sale of assets or equity
1. Matters that have been disclosed in the temporary announcement and have no progress orchanges in subsequent implementation
□Applicable √Inapplicable
2. Matters that have been disclosed in the temporary announcement, but there are progress or
changes in subsequent implementation
□Applicable √Inapplicable
3. Matters not disclosed in the temporary announcement
□Applicable √Inapplicable
4. If the performance agreements are involved, the performance achieved during the reporting
period shall be disclosed.
□Applicable √Inapplicable
(III) Significant related transactions for joint foreign investment
1. Matters that have been disclosed in the temporary announcement and have no progress or
changes in subsequent implementation
□Applicable √Inapplicable
2. Matters that have been disclosed in the temporary announcement, but there are progress orchanges in subsequent implementation
□Applicable √Inapplicable
3. Matters not disclosed in the temporary announcement
□Applicable √Inapplicable
(IV) Related credit and debt transactions
1. Matters that have been disclosed in the temporary announcement and have no progress orchanges in subsequent implementation
√Applicable □Inapplicable
| Summary of matters | Query index |
| According to the needs of business management and investment development, the Company intended to apply for the circulating liquidity loans with a monthly balance not exceeding RMB 2 billion (conversion does not exceed RMB 1 billion based on the actual occupation for the whole year) from Tongwei Group. The one-year benchmark loan interest rate of People's Bank of China is determined as the borrowing interest rate, and the expected interest to be paid is about RMB 50 million (the borrowing interest rate will be adjusted accordingly with the adjustment of the national one-year benchmark loan interest rate). By the end of the reporting period, the balance of this loan was 0 yuan. | On April 21, 2020, the Company announced Announcement of Tongwei Co., Ltd. on Related Transactions of Borrowing from Tongwei Group Co., Ltd. in 2020 on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media (Announcement No.: 2020-050). |
XV. Major contracts and their performance(I) Custody, contracting and leasing matters
1. Custody situation
□Applicable √Inapplicable
2. Contracting situation
□Applicable √Inapplicable
3. Leasing situation
□Applicable √Inapplicable
(II) Guarantee situation
√Applicable □Inapplicable
Unit:10,000Yuan Currency:RMB
| External guarantee (excluding the guarantee to subsidiaries) | |||||||||||||
| Guarantor | Relation between guarantor and listed company | Guaranteed party | Guaranteed amount | Guarantee date (agreement signing date) | Guarantee Starting date | Guarantee expiration date | Guarantee type | Whether the guarantee has been fulfilled | Whether the guarantee is overdue | Amount overdue | Whether there is counter guarantee | Whether it is related party guarantee | Association relationship |
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiaries | Farmers and distributors | 45,193.48 | - | 2020/1/3 | 2021/12/31 | Joint and several liability guarantee | No | Yes | 2,188.62 | Yes | No | |
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiaries | Farmers (building a rooftop powerplant) | 2,343.01 | - | 2017/9/15 | 2028/5/31 | Joint and several liability guarantee | No | No | - | Yes | No | |
| Total amount of guarantees during the reporting period (excluding guarantees to subsidiaries) | 82,955.16 | ||||||||||||
| Total guarantee balance at the end of the reporting period (A) (excluding guarantees to subsidiaries) | 47,536.49 | ||||||||||||
| The guarantees of the Company and its subsidiaries to its subsidiaries | |||||||||||||
| Total amount of guarantees to subsidiaries during the reporting period | 930,660.32 | ||||||||||||
| Total balance of guarantees to subsidiaries at the end of the reporting period (B) | 755,700.83 | ||||||||||||
| The total guarantee amount of the Company (including guarantees to subsidiaries) | |||||||||||||
| Total guarantee (A+B) | 803,237.32 | ||||||||||||
| The proportion of total guarantees accounting for the net assets of the Company (%) | 25.46 | ||||||||||||
| Of which: | |||||||||||||
| Amount of guarantee provided for shareholders, actual controllers and their related parties (C) | |||||||||||||
| The amount of debt guarantee provided directly or indirectly for the guaranteed object whose debt-to-asset ratio exceeds 70% (D) | 359,204.79 | ||||||||||||
| The amount of the total guarantee exceeding 50% of the net assets (E) | |||||||||||||
| The total amount of the above three guarantees (C+D+E) | 359,204.79 |
| Explanation of unexpired guarantees that may bear joint liability for repayment | |
| Explanation of guarantee | The above overdue guarantee amount refers to the unrecovered guarantee compensation balance at the end of the reporting period |
(III) Situation entrusting others to manage cash assets
1. Situation entrusting financial management
(1) The overall situation of entrusted financial management
√Applicable □Inapplicable
Unit:10,000Yuan Currency:RMB
| Type | Fund source | Amount incurred | Outstanding balance | Overdue irrecoverable amount |
| Floating income | Own funds | 33,500.00 | - | - |
| Floating income | Raise funds | 150,000.00 | 150,000.00 | - |
Unit:10,000Yuan Currency:RMB
| Trustee | Type of entrusted financial management | Entrusted financial management amount | Start date of entrusted financial management | End date of entrusted financial management | Fund source | Fund direction | Remuneration determination method | Annual yield | Expected earnings (if any) | Actual gains or losses | Actual recovery | Has it gone through legal procedures? | Has it gone through legal procedures? | Amount of provision for impairment (if any) |
| Chengdu Xindu branch of Bank of Communications Co., Ltd. | Structured deposit type S | 3,000.00 | 2020/1/20 | 2020/2/10 | Own funds | Structured deposit products | Floating income | 2.70% | / | 4.66 | 3,000.00 | Yes | ||
| Business Department, Chengdu Branch of Industrial Bank | 3-month USD deposit product | 500.00 | 2020/2/28 | 2020/5/29 | Own funds | Large dollar deposit certificate | Floating income | 3.26% | / | 2.26 | 500.00 | Yes | ||
| Harvest Fund Management Co., Ltd. | Harvest Money Fund-Harvest Express Currency A | 5,000.00 | 2020/3/3 | 2020/3/12 | Own funds | Monetary fund | Floating income | 2.27% | / | 2.83 | 5,000.00 | Yes | ||
| Beijing Hengtian Mingze Fund Sales Co., Ltd. | Nord Currency B | 5,000.00 | 2020/3/3 | 2020/3/12 | Own funds | Monetary fund | Floating income | 2.06% | / | 2.58 | 5,000.00 | Yes | ||
| Harvest Fund Management Co., Ltd. | Harvest Money Fund-Harvest Express Currency A | 10,000.00 | 2020/3/19 | 2020/5/7 | Own funds | Monetary fund | Floating income | 2.44% | / | 28.19 | 10,000.00 | Yes | ||
| Beijing Hengtian Mingze Fund Sales Co., Ltd. | Cash Management of central banking institution | 10,000.00 | 2020/3/19 | 2020/5/7 | Own funds | Monetary fund | Floating income | 2.44% | / | 24.04 | 10,000.00 | Yes | ||
| Chongqing Branch of Ping An Bank | Public structured deposits of Ping An Bank (100% guaranteed-linked exchange rate) RMB 18353 products in 2020 | 25,000.00 | 2020/12/14 | 2021/3/15 | Raise funds | Structured deposit products | Floating income | 1.65%/ 4.55% | Yes | |||||
| Chongqing Branch of Ping An Bank | Public structured deposits of Ping An Bank (100% guaranteed-linked exchange rate) RMB 18354 products in 2020 | 25,000.00 | 2020/12/14 | 2021/3/15 | Raise funds | Structured deposit products | Floating income | 1.65%/ 4.55% | Yes | |||||
| Chengdu Branch of Shanghai Pudong Development Bank | The company's stable profit fixed holding period JG9014 period (90-day network exclusive) | 50,000.00 | 2020/12/14 | 2021/3/15 | Raise funds | Structured deposit products | Floating income | 1.4%/ 3.05%/ 3.25% | Yes | |||||
| Xindu branch of Bank of Communications | Yuntong Wealth fixed-term structured deposits for 90 days of Bank of Communications (gold-linked bearish) | 50,000.00 | 2020/12/16 | 2021/3/18 | Raise funds | Structured deposit products | Floating income | 1.59%/ 3.00% | Yes | |||||
| Total | / | 183,500.00 | / | / | / | / | / | 64.57 | 33,500.00 |
Other situations
□Applicable √Inapplicable
(3) Entrusted loan impairment provision
□Applicable √Inapplicable
3. Other situations
□Applicable √Inapplicable
(IV) Other major contracts
√Applicable □Inapplicable
| Overview of major contract matters | Query index |
| The 24th meeting of the sixth board of directors of the Company reviewed and approved the signing of a major sales contract with Xi'an Longi Green Energy Technology Co., Ltd. During the reporting period, the major contract of the Company with Longi was being actively implemented. | The Company announced the Announcement of Tongwei Co., Ltd. about Signing Major Sales Contracts on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on May 23, 2018, (Announcement No.: 2018- 048). |
| The 25th meeting of the sixth board of directors of the Company reviewed and approved the signing of a major sales and procurement framework contract with Tianjin Zhonghuan Semiconductor Co., Ltd. During the reporting period, the major contract of the Company with Zhonghuan was being actively implemented. | The Company announced the Announcement of Tongwei Co., Ltd. about Signing Major Sales Contracts and Purchasing Framework Contracts on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on May 28, 2018, (Announcement No.: 2018- 051). |
| The 14th meeting of the seventh board of directors of the Company deliberated and approved the major sales framework contract signed by subsidiaries Yongxiang Polysilicon, Yongxiang New Energy, Inner Mongolia Tongwei, Yunnan Tongwei and Jinko Solar and its subsidiary Sichuan Jinko. During the reporting period, the major contract of the Company with Jinko Solar shares was being actively implemented. | The Company announced the Announcement of Tongwei Co., Ltd. about Signing Major Sales Contracts on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on November 7, 2020, (Announcement No.: 2020-115). |
| The 15th meeting of the seventh board of directors of the Company deliberated and approved the major sales framework contract signed by subsidiaries Yongxiang Polysilicon, Yongxiang New Energy, Inner Mongolia Tongwei, Yunnan Tongwei and Trina Solar. During the reporting period, the major contract of the Company with Trina Solar shares was being actively implemented. | The Company announced the Announcement of Tongwei Co., Ltd. about Signing Major Sales Contracts with Trina Solar Co., Ltd. on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on November 18, 2020, (Announcement No.: 2020-123). |
| The 15th meeting of the seventh board of directors of the Company deliberated and approved the major sales framework contract signed by subsidiaries Yongxiang Polysilicon, Yongxiang New Energy, Inner Mongolia Tongwei, Yunnan Tongwei and Meike Silicon Energy. During the reporting period, the major contract of the Company with Meike Silicon Energy shares was being actively implemented. | The Company announced the Announcement of Tongwei Co., Ltd. about Signing Major Sales Contracts with Baotou Meike Silicone Energy Co., Ltd. on the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media on November 18, 2020 (Announcement No.: 2020-124). |
On April 17, 2020, the eighth meeting of the Company’s seventh board of directors deliberated andapproved the Proposal on the Company’s Non-public Offering of Stocks and other related proposals. Fordetails, please refer to the related announcements disclosed on the designated information disclosuremedia and the Shanghai Stock Exchange of the Company on April 21, 2020 (www.sse.com.cn). Thismatter has been reviewed and approved by the General Meeting of Shareholders in 2019. On October 14,2020, the Company obtained the China Securities Regulatory Commission’s Reply of Approving Non-public Offering of Shares of Tongwei Co., Ltd. (ZJXK [2020] No. 2492). For details, please refer to therelated announcements disclosed on the designated information disclosure media and the Shanghai StockExchange website (http://www.sse.com.cn). According to the reply document, the Company issued213,692,500 RMB common shares (A-shares) to 16 targets, the face value of each share is RMB 1.00, andthe issue price is RMB 28.00/share. The total amount of funds raised is RMB 5,983,390,000.00, and theactual net amount of funds raised after deducting issuance costs is RMB 5,942,711,270.11. SichuanHuaxin has issued the "CHXY [2020] No.0084 Capital Verification Report" for the matter of the receiptof the raised funds. The net raise funds from the non-public offering of shares will be used for 7.5GWhigh-efficiency crystalline silicon solar cell projects in Meishan and Jintang and supplementing workingcapital. On December 8, 2020, the non-public offering of shares was completed in the Shanghai Branchof China Securities Depository and Clearing Co., Ltd., and the total share capital of the Company waschanged from 4,287,855,684 shares to 4,501,548,184 shares. The shares subscribed in this non-publicoffering shall not be transferred within six months from the end of the issuance.
XVII. Actively fulfill social responsibilities(I) Poverty alleviation work of the listed company
√Applicable □Inapplicable
1. Targeted poverty alleviation planning
√Applicable □Inapplicable
As an energy poverty alleviation model, PV poverty alleviation is also a kind of targeted povertyalleviation. While protecting the ecological environment, it has effectively promoted the steady increaseof per capita income in poverty-stricken areas, and achieved the transformation of poverty alleviationdevelopment from "help- the -poor " to " thoroughgoing ". In 2016, National Energy Administration andNational Development and Reform Commission promulgated the Opinions on the Implementation of PVPower Generation to Alleviate Poverty and Management Measures of PV Powerplants for PovertyAlleviation, which made proposals for the healthy development of PV industry for poverty alleviation andcalled on enterprises to the PV poverty alleviation put into practice.
2. Summary of annual targeted poverty alleviation
√Applicable □Inapplicable
In order to promote the sustainable and healthy development of PV poverty alleviation and activelypractice corporate social responsibility, the Company has constructed a number of PV poverty alleviationpowerplant projects in Jilin, Shandong, Ningxia, Inner Mongolia, Sichuan and other regions. This modelnot only effectively changes the extreme lack of electricity in local production and life, but also providesmonthly income and annual economic sources to poor households. It can solve the problem of economicdevelopment for the next 10 years, 20 years or even a longer period, and take a new road of industrialpoverty alleviation, ecological development for poverty alleviation, and construction of clean energyresources for poverty alleviation. Hence, The Company carries out important exploration and makespositive contribution to China’s PV poverty alleviation, and poverty-stricken groups may get rid of povertyand become rich and prosperous. It sets a complete “Tongwei example” for the poverty alleviation ofChina. During the reporting period, the Company invested RMB 9,586,300 in poverty alleviation.
3. Achievements of targeted poverty alleviation
√Applicable □Inapplicable
Unit:10,000Yuan Currency：RMB
| Index | Quantity and development |
| 1. Overall situation | |
| Of which: 1. Funds | 958.63 |
| 2. Sub-item investment | |
| 1. Poverty alleviation by industrial development | |
| Of which: 1.1 Types of industrial poverty alleviation projects | □ Poverty alleviation in agriculture and forestry industry □Poverty alleviation through tourism □Poverty alleviation through e-commerce √Poverty alleviation through assets income □Poverty alleviation through technology □Other |
| 1.2 Number of industrial poverty alleviation projects (number) | 6 |
| 1.3 Amount of investment in industrial poverty alleviation projects | 958.63 |
interactive platforms, and on-site research. The Company is committed to giving back to shareholders. Ithas revised and improved the relevant articles on profit distribution in the "Regulations" for many times,and formulated the Company Dividend Plan for the Next Three Years (2012-2014), Company DividendPlan for the Next Three Years (2015-2017) and Company Dividend Plan for the Next Three Years (2018-2020) in accordance with the provisions of the Articles of Association and relevant laws and regulations.The Company strictly follows the plan and maintains a relatively high proportion of dividends, which isreally creating value for shareholders. The Company has always resolutely implemented the maintenanceof the legitimate rights and interests of shareholders and the return to shareholders as the established tasksof the Company. Therefore, the Company has been recognized by the regulatory authorities for manyyears.
2. Protection of the creditor's rights and interests
The Company attaches great importance to the protection of the rights and interests of creditors andhas established a complete creditor protection mechanism. The Company has a sound internal controlmanagement system. Through using advanced information management methods, it has achieved efficientand centralized management of funds and financing. Strict graded approval and review management canensure the safety of funds. The Company has a good reputation and maintains long-term cooperation withpolicy banks, state-owned banks, joint-stock banks, and foreign banks. The Company uses credit funds instrict accordance with the relevant regulations of the national regulatory authorities and bank managementrequirements, and conducts complete life-cycle management of loans. During the reporting period, theCompany repaid the principal and interest of various loans in a timely manner and had no bad creditrecords. The Company has a complete purchasing management process system to ensure the unificationof logistics, capital flow, and information flow. During the reporting period, the Company strengthenedits cooperation with strategic suppliers. The Company strictly implemented the purchasing agreement withsuppliers, paid for goods in time, and effectively maintained the interests of the company and creditors,and obtained the good evaluation from the supplier.
3. Protection of the rights and interests of employees
The Company pays attention to protecting employees' rights, caring about the physical and mentalhealth of employees, and is committed to providing employees with a broad development platform. TheCompany strictly abides by the Labor Law, Labor Contract Law, Social Insurance Law, Trade Union Lawand other laws and regulations to fully protect the legitimate rights and interests of employees. In terms ofemployee care, the Company established the “Employee Care Mutual Fund” and established and improvedthe corresponding management system. The fund is mainly used as medical expenses for employees andtheir families, expenses for serious natural disasters, scholarship expenses for college entrance ofemployees’ children, and expenses for employees’ marriage and childbirth. Until now, the funds havebeen widely supported by the employees. The Company has established channels for employees to providesuggestions and complaints, so that they can listen to their voices and build a better working atmospheretogether with them. In terms of employee growth, the Company continues to optimize the two promotionchannels, the management channel and the professional channel, to encourage employees to continuouslyimprove.
4. Supplier management and quality management
The Company has formulated a supplier management system and standardized the full life cyclemanagement of suppliers. Regular evaluations on supplier product qualification rate, customer complaints,return rate and other product performance, delivery time, service quality, product control standards, etc.are carried out, to ensure the product quality of the Company from the source. At the same time, throughclose cooperation with suppliers, the Company promotes the exchange of advanced technology andmanagement concepts, promotes green supplier management, calls on suppliers to save energy, protectthe environment, and promote the coordinated development of industrial economic, environmental andsocial benefits. The Company has established a full-process quality management system and managementsystem to fully ensure product quality, protect the rights and interests of customers and consumers, andimprove customer and consumer satisfaction.
5. Safe production and environmental protection
Safe production is the basic prerequisite for ensuring the steady development of the Company. TheCompany complies with the requirements of relevant national laws and regulations, and has establishedand improved a safety production management system. The Company introduced the Dupont safetymanagement concept earlier. In recent years, the Company has continued to promote the construction ofAmoeba + Team and is committed to making safety production awareness be implemented in every teamand every employee. The Company attaches great importance to environmental protection, and is
committed to strengthening environmental pollution control and developing a circular economy industrialchain. In addition to strictly implementing various environmental protection laws and regulations andnational environmental protection standards and emission standards, the Company also continuouslystrengthens resource recycling, material closed operation, and by-product recycling in the productionprocess, and promotes the implementation of various energy-saving and emission-reduction measures, andactively practices the concept of harmonious development of enterprise development and ecologicalenvironment.
6. Community construction and public welfare undertakings
The Company actively participates in community construction and public welfare activities topromote the harmonious development of the Company and the community. Since its establishment, theCompany always regards the provision of social welfare as its responsibility, insists on the corporateobjective of “Striving for Excellence, Contributing to Society”, gives back to the society with love, widelyparticipates in the public welfare undertakings of construction of education and science popularizationbases, community donations, education donations and PV poverty alleviation, provides the localemployment post.
(III) Environmental information situation
1. Explanation of the environmental protection situation of companies and their important
subsidiaries that are key pollutant discharge units announced by the environmental protection
department
√Applicable □Inapplicable
(1) Emission information
√Applicable □Inapplicable
During the reporting period, the Company strictly implemented related laws and regulations ofenvironmental protection, and the construction and operation of environmental protection facilities canmeet the requirements of environmental protection management. The emission of wastewater, waste gas,and solid waste in the production process of the Company can meet the requirements of relevant emissionstandards, and clean production was realized. The relevant environmental information is as follows:
1) Production of Sichuan Yongxiang Polysilicon
① The main pollutants in wastewater: COD, ammonia nitrogen, and PH;
Emission method: continuous and stable emission.
Number of emission ports: 1 main emission port.
Emission standard: standard value Integrated Wastewater Discharge Standard (GB8978-1996) Table4 First Level Standard); COD≤100mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9;
Emission concentration: COD: 11.77mg/l; ammonia nitrogen: 0.57mg/l; PH: 7.5; all meetenvironmental protection emission standards.
Approved annual emissions: no limit on COD; and no limit on ammonia nitrogen;
Total emissions in 2020: COD: 3.703 tons; ammonia nitrogen: 0.205 tons.
②The main pollutants in boiler flue gas: sulfur dioxide, nitrogen oxides, and particulate matter.
Emission method: continuous and stable emission.
Number of emission ports: 2 emission ports.
Emission standard: standard value: special emission limit value in Table 3 of Emission Standard ofAir Pollutants for Boiler (GB13271-2014), sulfur dioxide ≤50mg/m
; nitrogen oxides ≤150mg/m
(80mg/m
according to EIA requirements); particulate matter ≤20 mg/ m
;
Emission concentration: sulfur dioxide: 1.04mg/m
; nitrogen oxides: 43.34mg/ m
; particulate matter:
1.05mg/ m
, all meet environmental protection emission standards.
Approved annual emissions: no limit on sulfur dioxide; no limit on nitrogen oxides ≤53.1 tons/year;and no limit on particulate matter;
Total emissions in 2020: sulfur dioxide: 0.247 tons; particulate matter: 0.249 tons; nitrogen oxides:
10.329 tons, which are less than the approved annual emissions.
2) Production of Yongxiang New Energy High-purity Polysilicon
① The main pollutants in wastewater are: COD, ammonia nitrogen, and PH;
Emission method: continuous and stable emission.
Number of emission ports: 1 main emission port.
Emission standard: standard value Integrated Wastewater Discharge Standard (GB8978-1996) Table
4 First Level Standard); COD≤100mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9;
Emission concentration: COD: 12.189mg/l; ammonia nitrogen: 1.895mg/l; PH: 7.718, all meetenvironmental protection emission standards.
Approved annual emissions: no limit on COD; and no limit on ammonia nitrogen;
Total emissions in 2020: COD: 7.34 tons; ammonia nitrogen: 1.14 tons, all meet the emissionstandards.
②The main pollutants in boiler flue gas are: sulfur dioxide, nitrogen oxides, and particulate matter.
Emission method: continuous and stable emission.
Number of emission ports: 2 emission ports.
Emission standard: standard value: special emission limit value in Table 3 of Emission Standard ofAir Pollutants for Boiler (GB13271-2014); sulfur dioxide ≤50mg/ m
; nitrogen oxides ≤150mg/m
(80mg/m
according to EIA requirements); particulate matter ≤20mg/ m
.Emission concentration: sulfur dioxide: 0.1585mg/ m
; nitrogen oxide: 49.99mg/ m
; particulatematter: 5.76mg/ m
, all meet environmental protection emission standards.Approved annual emissions: no limit on sulfur dioxide, nitrogen oxides ≤59.904 tons/year; and nolimit on particulate matter;Total emissions in 2020: sulfur dioxide: 0.025 tons; nitrogen oxides: 8.01 tons; particulate matter:
0.924 tons, all meet emission standards.
3) Production of Inner Mongolia Tongwei High-purity Crystalline Silicon
The main pollutants in boiler flue gas are: sulfur dioxide, nitrogen oxides, and particulate matter.Emission method: continuous and stable emission.Number of emission ports: 2 emission ports.Emission standard: Standard value: newly-built boiler emission limits in Table 2 of EmissionStandard of Air Pollutants for Boiler (GB13271-2014); sulfur dioxide ≤50mg/m
; nitrogen oxide≤200mg/m
; particulate matter ≤20mg/m
.Emission concentration: sulfur dioxide: 1.35mg/ m
; nitrogen oxide: 56.2mg/ m
; particulate matter:
9.83mg/ m
, all meet environmental protection emission standards.Approved annual emissions: sulfur dioxide ≤1.36 tons/year; nitrogen oxides ≤67.36 tons/year;Total emissions in 2020: sulfur dioxide: 0.338 tons; nitrogen oxides: 13.027 tons, both of which areless than the approved annual emissions.
4) Production of Yongxiang PVC and Sodium hydroxide:
① The main pollutants in wastewater are: COD, ammonia nitrogen, and PH;
Emission method: continuous and stable emission.Number of emission ports: 1 main emission port.Emission standard: standard value: Emission Standard of Pollutants for Caustic Alkali and PolyvinylChloride Industry (GB15581-2016); COD≤60mg/l; ammonia nitrogen≤15mg/l; 6≤PH≤9.
Emission concentration COD: 20.99mg/l; ammonia nitrogen: 5.19mg/l; PH: 6~9, all meetenvironmental protection emission standards.
Approved annual emissions: COD≤39 tons/year; ammonia nitrogen≤9.75 tons/year;
Total emissions in 2020: COD: 4.89 tons; ammonia nitrogen: 1.21 tons, both of which are less thanthe approved annual emissions.
②Heavy metals: mercury chloride, which is mainly used as the vinyl chloride synthesis catalyst. Theannual output of waste mercury-containing catalysts is 183.49 tons. It is in the Catalogue of NationalHazardous Wastes, the code is HW29, and it will be uniformly sent to qualified manufacturers forrecycling.
5) Production of Yongxiang cement:
The main pollutants in the waste gas: smoke (powder) dust, SO
and NOX.
Emission method: continuous and stable emission.
Number of emission ports: 2 emission ports.
Emission standards: air pollutants: standards in Emission Standards of Air Pollutants for CementIndustry (GB4915-2013).
Emission concentration: smoke (dust) dust: kiln concentration: 3.85 mg/m
, kiln tail concentration:
1.39 mg/m
; kiln emission: 5.55 tons, kiln tail emission: 2.24 tons; SO
: 6.18mg/m
; NOX: 121.32mg/m
;all meet environmental protection emission standards.
Approved annual emissions: SO
: 140 tons/year; NOX: 450.3 tons/year.Total emissions in 2020: SO
: 10.89 tons; NOX: 216.16 tons, both of which are less than the approvedemissions.
6) Production of Chengdu solar cell:
①The main pollutants in wastewater:
General pollutants: COD, ammonia nitrogen, pH;Particular pollutants: fluoride.Emission method: continuous and stable emission.Number of emission ports: 2 emission ports.Emission standard: indirect emission standards for solar cells in Table 2 of the Emission Standard ofPollutants for Battery Industry (GB30484-2013); COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9;fluoride≤8mg/l. Emission concentration: COD: 27.16mg/l; ammonia nitrogen: 5.1 mg/l; pH: 7.51; fluoride:
4.84 mg/l. All meet environmental protection emission standards.
Approved annual emissions: COD≤1109.8 tons/year; ammonia nitrogen≤221.9 tons/year;Total emissions in 2020: COD: 115.64 tons; ammonia nitrogen: 27.5 tons, both of which are less thanthe approved annual emissions.The main pollutants in the waste gas: fluoride, hydrogen chloride, chlorine, sulfuric acid mist,ammonia, particulate matter, and volatile organic compounds;Particular pollutants: fluoride.Emission method: continuous and stable emission.Number of emission ports: 30.Emission standards: ammonia implements the standard limits in Table 2 of the Emission Standardsfor Odor Pollutants (GB14554-1993); volatile organic compound implements the manufacturing standardof electronic product industry in Table 3 of Sichuan Emission Control Standard for Volatile OrganicCompound (DB51/2377-2017); and the remaining waste gas implements the standard values of solar cellsin Table 5 of the Emission Standard of Pollutants for Battery Industry (GB30484-2013). Ammonia≤14kg/h; volatile organic compounds ≤60 mg/m?; fluoride ≤3 mg/m?; chlorine ≤5 mg/m?; particulatematter ≤30 mg/m?; hydrogen chloride ≤5mg/m?; nitrogen oxides ≤30 mg /m?.
Emission concentration: fluoride 0.45mg/m
; chlorine 1.61mg/m?; particulate matter 8.09 mg/m?;nitrogen oxides 8.98mg/m?; volatile organic compounds 1.62 mg/m?; hydrogen chloride 0.68mg/m?;ammonia 0.37kg/h; and all meet environmental protection emission standards.
Approved annual emissions: nitrogen oxides ≤107.05 tons/year, volatile organic compounds ≤34.72tons/year;
Total emissions in 2020: nitrogen oxides: 52.29 tons; volatile organic compounds: 7.3 tons, both ofwhich are less than the approved annual emissions.
② Environmental protection facilities and operation conditions:
According to the different natures of the waste gas emitted by the workshop, the Company selectsthe matching treatment process:
Phase-I project
Acid and alkali waste gas: alkali texturing and pickling acid and alkali waste gas, diffusion acid andalkali waste gas are discharged through a 25-meter high exhaust cylinder after being respectively collectedby 2 sets of negative pressure exhaust systems and treated by lye spray tower; PSG cleaning acid andalkali waste gas is discharged through a 25-meter high exhaust cylinder after being treated by a set of four-stage acid and alkali redox scrubbing tower.
Coating waste gas: after burned through 8 combustion chambers, the coating waste gas is collectedby one set of negative pressure exhaust system, and the coating waste gas is discharged through a 25-meterhigh exhaust cylinder after being treated by an acid scrubbing tower.
Organic waste gas: the organic waste gas is discharged through a 15-meter high exhaust cylinder afterbeing treated by 2 sets of activated carbon + low temperature plasma treatment system.
Phase-II project
Acid and alkali waste gas: a set of four-stage acid and alkali scrubbing tower is respectively installedon the first and second floors of the alkali texturing, pickling, and diffusion acid and alkali waste gasworkshops for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder;the first and second floors of PSG cleaning acid and alkali waste gas workshop share a set of four-stageacid alkali rebox scrubbing tower for treatment and then is discharged through a 25-meter high exhaustcylinder.
Coating waste gas: after burned through 14 combustion chambers, the two floors of the coating wastegas are collected by one set of negative pressure exhaust system, and the coating waste gas is dischargedthrough a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.
Organic waste gas: the first and second floors of the organic waste gas are discharged through two
25-meter high exhaust cylinders after being treated by 1 set of activated carbon + low temperature plasmatreatment system.Phase-III projectAcid and alkali waste gas: a set of first-stage acid and alkali scrubbing tower is respectively installedon the alkali texturing, pickling, and diffusion acid and alkali waste gas workshops in south and northareas for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder; a setof four-stage acid alkali rebox scrubbing tower is respectively set in the PSG cleaning acid and alkali wastegas workshop for treatment, and then the waste gas is discharged through a 25-meter high exhaust cylinder.
Coating waste gas: after burned through 12 combustion chambers, the coating waste gas in south andnorth areas is collected by one set of negative pressure exhaust system, and the coating waste gas isdischarged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.Organic waste gas: the organic waste gas in the north and south areas is discharged through a 25-meter high exhaust cylinder after being treated by a set of activated carbon + low-temperature plasmatreatment system.Phase-IV projectAcid and alkali waste gas: a set of first-stage acid and alkali scrubbing tower is set in the south andnorth areas of alkali texturing, pickling, diffusion, and PSG cleaning acid alkali waste gas for treatment,and then the waste gas is discharged by 25-meter high exhaust cylinder.Coating waste gas: after burned through 11 combustion chambers, the coating waste gas in south andnorth areas is collected by one set of negative pressure exhaust system, and the coating waste gas isdischarged through a 25-meter high exhaust cylinder after being treated by an acid scrubbing tower.Organic waste gas: the organic waste gas in the north and south areas is discharged through the 25-meter high exhaust cylinder after being treated by the front-end combustion chamber + the end activatedcarbon treatment system.
Waste gas in wastewater treatment station: a small amount of waste gas will be produced during thewaste water treatment process. The main pollutants are fluoride, hydrogen chloride, hydrogen sulfide, andammonia. The project will cover and seal the waste liquid collection pool, emergency pool and dosingtank system structures of the waste water treatment station, collect and treat the waste gas pollutantsgenerated by each structure, and use the H
SO
/NaOH/NaClO three-stage spray method for treatment, andthe treated waste gas is discharged through a 25m exhaust cylinder.
Production wastewater and domestic wastewater are equipped with different treatment facilities dueto different natures and treatment processes:
Phase-I and phase-II projects: the production wastewater is treated by the self-built sewage treatmentstation through three-stage physical and chemical + two-stage A/O biochemical treatment, with amaximum daily treatment capacity of 4200m?; the domestic wastewater is treated by a set of burieddomestic sewage treatment equipment; after reaching the standard through treatment, the domestic sewageand production wastewater are discharged to the downstream Maojiawan Sewage Treatment Plant througha total sewage treatment emission port of the Company.
Phase-III and phase-IV projects: the production wastewater is treated by the self-built sewagetreatment station through the three-stage physical and chemical + two-stage A/O biochemical treatment,with a maximum daily treatment capacity of 11,600m?. Domestic wastewater is drained to the sewagetreatment station for treatment. After reaching the standard, the wastewater will be discharged to thedownstream Maojiawan Sewage Treatment Plant through a total sewage treatment emission port of theCompany, and the environmental protection treatment facilities are operating normally.
Solid waste: general industrial solid waste is mainly sludge generated in wastewater stations,ammonium sulfate waste liquid, and packaging material waste generated in production; hazardous wastemainly includes acid and alkali hazardous waste, waste activated carbon, waste engine oil, etc.
In 2020, 44473.4 tons of industrial solid waste was generated and 44473.4 tons were treatedreasonably. 77.44 tons of hazardous waste was generated and 67.613 tons were treated reasonably. Up tonow, the industrial solid waste and hazardous waste have been treated in accordance with the requirementsof relevant environmental protection regulations.
7) Production of Meishan solar cell:
① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, total nitrogen;particular pollutants: fluoride.
Emission method: continuous and stable emission.
Number of emission port: there are 3 total wastewater emission ports, namely production wastewateremission port, general wastewater emission port and domestic sewage emission port; the general
wastewater emission port and the production wastewater emission port are located on the west side of theplant, and domestic sewage emission port is located on the south side of the plant.
Emission standard: the production wastewater implements the indirect emission standard in Table 2of the Emission Standard of Pollutants for Battery Industry (GB30484-2013), and the pollution factorsand chlorides meet the design influent water quality standards for the first zone of Xiuwen Town SewageTreatment Plant in Ganmei Industrial Park; the general wastewater implements the design the influentwater quality standards for the auxiliary constructed wetland in the second zone of Xiuwen Town SewageTreatment Plant in Ganmei Industrial Park; the domestic wastewater implements the three-stage standardin Table 4 of the Integrated Wastewater Discharge Standard (GB 8978-1996), and B-level standard limitsin Table 1 of Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) Table1, and meets the designed water quality standards for the second zone of Xiuwen Town Sewage TreatmentPlant in Ganmei Industrial Park;Wastewater emission concentration: COD: 85mg/l; ammonia nitrogen: 20.5mg/l; pH: 7.5; totalnitrogen: 18.4mg/l; fluoride: 4.64mg/l, all meet environmental protection emission standards.Total emissions in 2020: COD: 87.22 tons; ammonia nitrogen: 16.93 tons
②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, hydrogen chloride andvolatile organic compounds; particular pollutants: fluoride.
Emission method: continuous and stable emission.
Number of emission ports: 8 waste gas emission ports.
Emission standard: the emission standard value of solar cell waste gas in Table 5 of EmissionStandard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m?; fluoride ≤3mg/m?; chlorine ≤ 5mg/m?; particulate matter ≤ 30mg/m?; hydrogen chloride ≤5mg/m?; in EmissionStandard for Odor Pollutants (GB14554-93): ammonia ≤14mg/m? (process waste gas); ammonia≤20mg/m? (wastewater station waste gas); hydrogen sulfide ≤0.9kg/ h; odor concentration: in 6000Sichuan Emission Control Standard for Volatile Organic Compound (DB 51/2377-2017) standard: volatileorganic compound ≤60mg/m?.
Emission concentration of waste gas: fluoride: 1.66mg/m
; chlorine: 1.56mg/m
; particulate matter:
20.113mg/m
; hydrogen chloride: 0.49mg/m
, VOCs: 2.34mg/m
, all meet environmental emissionstandards.
Total emissions in 2020: particulate matter: 0.622 tons, VOCs: 3.44 tons.Construction and operation of pollution prevention facilities:
Wastewater treatment facilities: a wastewater treatment station is built in the plant, with a dailytreatment capacity of 5,800 tons, and the "three-stage physical and chemical (coagulation andsedimentation) + two-stage biochemical (A/O)" treatment process is adopted.Waste gas treatment facilities: the Company selects matching treatment processes according to thedifferent natures of the waste gas emitted by the workshop.
Acid and alkali waste gas: the acid and alkali waste gas produced by texturing, diffusion, and PSGcleaning is discharged through two 30m high exhaust cylinders after being treated by 2 sets of alkalinescrubbing towers. One set of waste gas treatment system is respectively installed on the east and west sidesof the workshop.
Coating waste gas: the coating waste gas comes from the PECVD process, and is discharged by two30m exhaust cylinders after being treated by 20 sets of process end burners + 2 sets of two-stage waterand sulfuric acid scrubbing towers.
Organic waste gas: the organic waste gas mainly comes from the printing, drying and sinteringprocesses. The organic waste gas of each workshop is discharged by two 20m exhaust cylinders after beingtreated by 2 parallel combustion towers + three-use and one-standby activated carbon adsorption device.
Boiler waste gas: the powerplant is equipped with two 3.5MW/h gas boilers, the fuel is natural gas,and a low-nitrogen combustion device is installed. The boiler flue gas emission volume is 36050 N m?/h.The main pollutants in the flue gas are NOx, soot and SO
, which are discharged through a 15m chimney.
Waste gas in wastewater treatment station: a small amount of waste gas will be produced during thewaste water treatment process. The main pollutants are fluoride, hydrogen chloride, hydrogen sulfide, andammonia. The project will cover and seal the waste liquid collection pool, emergency pool and dosingtank system structures of the waste water treatment station, collect and treat the waste gas pollutantsgenerated by each structure, and use the H
SO
/NaOH/NaClO three-stage spray method for treatment, andthe treated waste gas is discharged through a 25m exhaust cylinder.
Solid waste: general industrial solid waste is mainly sludge generated in wastewater stations,ammonium sulfate waste liquid, and packaging material waste generated in production; hazardous waste
mainly includes acid and alkali hazardous waste, waste activated carbon, waste engine oil, etc.
In 2020, 6,156 tons of industrial solid waste was generated and 6,156 tons were treated reasonably.
0.788 tons of hazardous waste was generated. Up to now, the industrial solid waste and hazardous wastehave been processed in accordance with the requirements of relevant environmental protection regulations.
8) Production of Hefei solar cell:
① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, total nitrogen;particular pollutants: fluoride.
Emission method: continuous and stable emission.
Number of emission ports: 1 main wastewater emission port.
Emission standard: the indirect emission limit of solar cells in Emission Standard of Pollutants forBattery Industry (GB30484-2013) and the takeover standard of Hefei Western Group WastewaterTreatment Plant; COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9, total nitrogen≤40mg/l;fluoride≤8mg/l.
Wastewater emission concentration: COD: 24.75mg/l; ammonia nitrogen: 12.30mg/l; pH: 6.73; totalnitrogen: 16.95mg/l; fluoride: 4.43mg/l, all meet environmental protection emission standards.
Total emissions in 2020: COD: 44.129 tons; ammonia nitrogen: 21.386 tons
②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, nitrogen oxides,hydrogen chloride and volatile organic compounds; Particular pollutants: fluoride.
Emission method: continuous and stable emission.
Number of emission ports: 31 waste gas emission ports of Hefei Company.
Emission standard: the emission standard value of solar cell waste gas in Table 5 of EmissionStandard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m?; fluoride ≤3mg/m?; chlorine ≤ 5mg/m?; particulate matter ≤ 30mg/m?; hydrogen chloride ≤5mg/m?; volatile organiccompounds refer to the Tianjin Industrial Enterprise Volatile Organic Compound Emission ControlStandard (DB16297-2014): volatile organic compounds ≤50mg/m?.
Emission concentration of waste gas: nitrogen oxide: 9.75mg/m
; fluoride: 0.07mg/m
; chlorine:
2.36mg/m
; particulate matter: 4.56mg/m
; hydrogen chloride: 1.0mg/m
, VOCs: 1.65mg/m
, all meetenvironmental protection emission standards.
Total emissions in 2020: nitrogen oxides: 12.84 tons, VOCs: 3.183 tons.In 2020, 9003.73 industrial solid wastes and 64.64 tons of hazardous wastes were generated, 8247.9tons of solid wastes and 64.64 tons of hazardous wastes were treated reasonably. Up to now, the industrialsolid waste and hazardous waste have been processed in accordance with the requirements of relevantenvironmental protection regulations.
Construction and operation of pollution prevention facilities:
Wastewater treatment facilities: there is a set of three-stage physical and chemical + biochemicalpretreatment + two-stage A/O wastewater treatment system, with a designed daily treatment capacity of4,320 tons and normal operation;Waste gas treatment facilities: the Company selects matching treatment processes according to thedifferent natures of the waste gas emitted by the workshop.Acid and alkali waste gas: the waste gas generated in the cleaning and texturing process is processedby the oxidation spray tower + reduction spray tower, the waste gas generated in the diffusion process isprocessed by the first-stage NaOH solution sieve packing tower, and the waste gas generated by the etchingis discharged by a 25-meter exhaust cylinder after being treated by the three-stage SDG chemical catalyticadsorption tower.Coating waste gas: the waste gas generated in the PECVD process is treated by an incinerator + waterspray, and the waste gas from the above process is discharged through a 25-meter exhaust cylinder afterthe treatment.
Organic waste gas: the waste gas generated in the printing and sintering processes is dischargedthrough a 15-meter exhaust cylinder after on-line combustion + activated carbon adsorption treatment; thewaste gas generated in the module M1 workshop is discharged through a 15-meter exhaust cylinder afteractivated carbon adsorption treatment, and the waste gas generated in module M2 workshop is dischargedthrough a 25-meter high exhaust cylinder after low-temperature plasma + activated carbon adsorptiontreatment, and the waste gas generated in the M3 workshop is discharged through a 25-meter high exhaustcylinder after low-temperature plasma + activated carbon adsorption treatment.
9) Production of Anhui solar cell:
① The main pollutants in wastewater: general pollutants: COD, ammonia nitrogen, pH, totalnitrogen; Particular pollutants: fluorine.
Emission method: continuous and stable emission.Number of emission ports: 1 main wastewater emission port.Emission standard: the indirect emission limit of solar cells in Emission Standard of Pollutants forBattery Industry (GB30484-2013) and the takeover standard of Hefei Western Group WastewaterTreatment Plant; COD≤150mg/l; ammonia nitrogen≤30mg/l; 6≤pH≤9, total nitrogen≤40mg/l;fluoride≤8mg/l.Wastewater emission concentration: COD: 48.55mg/l; ammonia nitrogen: 7.10mg/l; pH: 7.15; totalnitrogen: 17.56mg/l; fluoride: 4.015mg/l. All meet environmental protection emission standards.Total emissions in 2020: COD: 139.23 tons; ammonia nitrogen: 14.106 tons
②The main pollutants in the waste gas: fluoride, chlorine, particulate matter, nitrogen oxides,hydrogen chloride and volatile organic compounds; particular pollutants: fluoride.
Emission method: continuous and stable emission.
Number of emission ports: 10 waste gas emission ports of the Anhui Company.
Emission standard: the emission standard value of solar cell waste gas in Table 5 of EmissionStandard of Pollutants for Battery Industry (GB30484-2013): nitrogen oxide ≤ 30mg/m?; fluoride ≤3mg/m?; chlorine ≤ 5mg/m?; particulate matter ≤ 30mg/m?; hydrogen chloride ≤5mg/m?; volatile organiccompounds refer to the Tianjin Industrial Enterprise Volatile Organic Compound Emission ControlStandard (DB16297-2014): volatile organic compounds ≤50mg/m?.
Emission concentration of waste gas: nitrogen oxide: 13mg/m
; fluoride: 0.89mg/m
; chlorine:
1.99mg/m
; particulate matter: 9.31mg/m
; hydrogen chloride: 0.58mg/m
, VOCs: 5.67mg/m
, all meetenvironmental protection emission standards.
Total emissions in 2020: nitrogen oxides: 8.141 tons, VOCs: 11.461 tons.In 2020, 10235.6 industrial solid wastes and 46.31 tons of hazardous wastes were generated,10189.31 tons of solid wastes and 44.11 tons of hazardous wastes were treated reasonably. Up to now, theindustrial solid waste and hazardous waste have been treated in accordance with the requirements ofrelevant environmental protection regulations.Construction and operation of pollution prevention facilities:
Wastewater treatment facilities: there is a set of two-stage physical and chemical + biochemicalpretreatment + two-stage A/O wastewater treatment system, with a designed daily treatment capacity of8,000 tons and normal operation.Waste gas treatment facilities: the Company selects matching treatment processes according to thedifferent natures of the waste gas emitted by the workshop.Acid and alkali waste gas: the waste gas generated in the cleaning and texturing process is treated bythe alkali spray tower, the waste gas generated in the diffusion process is treated by the NaOH solutionsieve packing tower, and the waste gas generated by etching is treated by the oxidation spray tower +reduction spray tower, and then discharged at high altitude through a 30-meter exhaust cylinder.
Coating waste gas: the waste gas generated in the PECVD process is treated by incineration tower +water spray, and the waste gas generated in the printing and sintering process is treated by on-linecombustion + low temperature plasma + activated carbon adsorption and discharged by a 30-meter exhaustcylinder.
(2) Construction and operation of pollution prevention facilities
√Applicable □Inapplicable
In accordance with the requirements of the environmental assessment report, various pollution controlfacilities have been constructed:
1) Wastewater treatment facilities mainly include: domestic sewage treatment devices, sewage treatmentstations, and high-salt wastewater concentration devices, all operate normally;
2) Waste gas treatment facilities mainly include: process waste gas leaching devices, dust removal systems,etc., all operate normally;
3) The solid waste related facilities mainly include: waste slag shed, hazardous waste temporary storageroom, etc., which are managed in strict accordance with environmental protection requirements;
4) Noise control facilities mainly include: noise reduction and vibration reduction measures are taken forthe noise equipment, and silencers are installed at the vents, and they are operating normally.
(3) Environmental impact assessment of construction projects and other environmental protection
administrative permits
√Applicable □Inapplicable
Tongwei Solar:
1) Annual capacity of 3.8GW high-efficiency solar cell project of Chengdu Solar passed independentacceptance and online registration on August 26, 2020. At present, the output of the workshop is stable,and various environmental protection facilities and equipment are operating normally. Chengdu Solarstrictly follows the emission permit for major pollutants in Shuangliu District, Chengdu. The permitnumber is: 915101225722584966001Q.
2) On January 10, 2020, Meishan Solar obtained the Approve of the Environmental Impact Report onthe Application Project of Tongwei Solar (Meishan) Co., Ltd. with an Annual Capacity of 3.8GW High-efficiency Crystalline Silicon Solar Cell Domestic Intelligent Equipment (System) from the MeishanMunicipal Bureau of Ecology and Environment. (MSHJH [2020] No. 8). In April 2020, the Companychanged the cell size used in the first phase of the project. Before and after the change, the cell size waschanged from 156mm*156mm to 210mm*210mm; after the change, the power generation of the cell isincreased, and the power generation of the product has changed from the original annual capacity of
3.8GW to the annual capacity of 7.5GW, but the number of purchased silicon wafers and the total numberof cells will not change. The project does not involve major changes, after being approved by MeishanEcological Environment Bureau, 3.8GW project of our Company was renamed as "application project ofdomestic intelligent equipment (system) with an annual capacity of 7.5GW high-efficiency crystallinesilicon solar cells". The original environmental assessment approve is still valid. On April 16, 2020, itobtained the "Explanation on the Relevant Situation of the Tongwei High-efficiency Crystalline SiliconSolar Cell Project" from the Meishan City Ecological Environment Bureau. On July 17, 2020, the projectobtained the "emission permits" issued by the Leshan Ecological Environment Bureau, with the pollutantdischarge permit number: 91511400MA686MWR2C001Q. Project acceptance and online registrationwere completed on October 28, 2020.
3) The Meishan Phase-II 7.5GW high-efficiency solar cell project was put on record at the MeishanDevelopment and Reform Commission on February 27, 2020 (CTZB [2020-511400-38-03-426415]FGQB-0019 No.), the project obtained the Approve of the Environmental Impact Report of Tongwei Solar(Meishan) Co., Ltd. with Annual Capacity of 7.5GW High-efficiency Crystalline Silicon Solar CellDomestic Intelligent Factory Project On June 15, 2020 from Meishan City Ecological and EnvironmentBureau (MSHJH [2020] No. 37).
4) Hefei solar high-efficiency module project: the project obtained Approval Opinions on High-efficiency Module Project Environmental Impact Report Form about Tongwei solar (Hefei) Co., Ltd. fromhigh-tech branch of Hefei Environmental Protection Bureau on October 16, 2019 (HGS [2019] No.088).The project carried out the design and construction of environmental protection facilities in accordancewith environmental protection laws and regulations and environmental assessment requirements. TheCompany strictly implements pollution emission in accordance with the emission permit, the permitnumber is 91340100560687779D001V.
5) Anhui Solar high-efficiency solar cell project with annual capacity of 250MW: the project obtainedthe Approve of Environmental Impact Assessment Report for 250MW Annual Output High-efficiency SolarCell Project about Tongwei Solar (Anhui) Co., Ltd. from Hefei Environmental Protection Bureau onAugust 5, 2020 (HJS [2020] No. 34). The project carried out the design and construction of environmentalprotection facilities in accordance with environmental protection laws and regulations and environmentalassessment requirements. The Company strictly implements pollution emission in accordance with theemission permit, the permit number is 91340100083692631N001V. On June 3, 2020, a letter that thecleaning production audit report of Tongwei Solar (Anhui) Co., Ltd. is passed from the EcologicalEnvironment Branch of Hefei High-tech Industrial Development Zone (HGHQS [2020] No. 4) wasobtained.Yongxiang:
1) Leshan Phase-II 50,000MT High-purity Polysilicon Project
On December 31, 2020, the approval opinion of Leshan Ecological Environment Bureau wasobtained (LSHS [2020] No. 56). The project was designed in accordance with relevant laws andregulations, environmental assessment and environmental assessment approval requirements, and iscurrently under construction.
2) Baoshan Phase-I 50,000MT High-purity Polysilicon Project
On December 14, 2020, the approval opinions of Baoshan Ecological Environment Bureau (BHZ[2020] No. 29) and the project environmental impact report were obtained. The project was designed inaccordance with relevant laws and regulations, environmental assessment and environmental assessmentapproval requirements, and is currently under construction.
(4) Emergency plans for environmental emergencies
√Applicable □Inapplicable
In order to prevent and reduce environmental pollution accidents, standardize the emergencymanagement and emergency response procedures of the Company for environmental emergencies,establish a unified command, hierarchical responsibility, and rapid response emergency work mechanism,carry out emergency rescue work in a timely and effective manner, and form a strong prevention, ordercommand, fast, efficient and coordinated environmental pollution emergency response system, TongweiSolar and Yongxiang have formulated emergency plans for environmental emergencies and reported themto the local ecological environment bureau. The record numbers are as follows:
1) Emergency Plan for Environmental emergencies in east plan of Tongwei Solar (Chengdu) Co.,Ltd. (record number: 510122-2020-875-M).
2) Emergency Plan for Environmental emergencies of application project of Tongwei Solar (Meishan)Co., Ltd. with annual output of 7.5GW high-efficiency crystalline silicon solar cell domestic intelligentequipment (system), record number: 51140020200031-L.
3) Emergency Plan for Environmental emergencies of Tongwei Solar (Hefei) Co., Ltd., recordnumber: 340105-2019-013-M.
4) Emergency Plan for Environmental emergencies of Tongwei Solar (Anhui) Co., Ltd., recordnumber: 340105-2019-026-M.
5) Emergency Plan for Environmental emergencies of Sichuan Yongxiang Co., Ltd., record number:
511112-2018-025-H.
(5) Environmental self-monitoring plan
√Applicable □Inapplicable
1) Tongwei Solar: It has a safety environment department, complete safety and environmentalprotection technicians and advanced environmental testing instruments. The main emission port of theCompany is equipped with online detection equipment to monitor wastewater COD, NH
-N, pH, fluorideion and other items online in real time, and regularly transmit the detection data to the environmentalprotection information platform. At the same time, the wastewater station of the Company is equippedwith a wastewater testing laboratory, and laboratory technicians regularly test all links of wastewatertreatment to ensure that the wastewater emission reaches the standards. In addition, the Company hasformulated an annual environmental testing plan, entrusted a third-party testing unit to conduct monthlytesting on the waste gas, wastewater, noise, plant boundary waste gas, and groundwater.
2) Yongxiang: It has a safety environment department, complete safety and environmental protectiontechnicians and advanced environmental monitoring instruments. At the same time, the emission ports areequipped with online monitoring equipment for wastewater and waste gas according to the specifications,which can monitor the wastewater flow, COD, ammonia nitrogen, total nitrogen, pH and other items, andthe waste gas SO
, NOX, particulate matter and other items in real time, and transmit them to the pollutionsource monitoring platform in real time. Environmental protection staff conducts daily inspections on theonline equipment of the emission port. The quality control department of the Company conducts manualanalysis of various indicators of the wastewater emission port and compares with the online monitoringdata to ensure the accuracy of the online equipment analysis data and the standard emission of allindicators. In accordance with the environmental impact assessment report and the technical specificationsof the industry’s pollutant emission permit, the self-monitoring plan has been compiled, and qualified unitsare entrusted to carry out the monitoring according to the plan.
(6) Other environmental information that should be disclosed
□Applicable √Inapplicable
2. Explanation of the environmental protection situation of companies other than the key
pollutant discharging units
√Applicable □Inapplicable
The waste gas of the feed industry has the characteristics of high temperature, high humidity, highdust, and large air volume. The Company has developed a "water spray + biological treatment" processbased on the research and analysis of the pollutant composition and its physical and chemical propertiesby the professional environmental protection team for a long time. The environmental treatment processstandards of the Company are determined according to the difference in odor during the production.During the reporting period, after a comprehensive assessment of the environmental protectionengineering effects in recent years, and combining with industry waste gas treatment processes andparameters, the existing environmental protection standards of the Company have been revised, especiallythe waste gas treatment process and parameters produced during the production of special water materialsare designed again; the complex composition of special water waste gas and large peculiar smell are fullyconsidered; the design safety factor is increased, and the effective treatment effects are ensured. At thesame time, the operation guidelines for environmental protection equipment have been formulated toensure the effective operation of on-site equipment and ensure that operators have the ability to basicallyidentify and deal with common equipment faults. At present, the waste gas emission indicators of theCompany are far below the emission standards for odor pollutants (GB14554). The Company still sparesno effort to promote environmental protection innovation and technological research. On the basis of the"zero waste gas emission process technology" proposed in 2019, the technology has been fully replicatedand promoted through continuous optimization, adjustment, and verification. Now, it has been promotedand applied in a number of feed subsidiaries.
3. Explanation of the reasons why companies other than key pollutant discharging units did not
disclose environmental information
□Applicable √Inapplicable
4. Explanation of the follow-up progress or changes of the environmental information content
disclosed during the reporting period
□Applicable √Inapplicable
(IV) Other notes
□Applicable √Inapplicable
XVIII Convertible corporate bonds
√Applicable □Inapplicable
(I) Issuance of convertible bonds
√Applicable □Inapplicable
Approved by the China Securities Regulatory Commission on Approve of the Public Issuance ofConvertible Bonds by Tongwei Co., Ltd. (ZJXU [2018] No.1730), the Company publicly issued 50 millionconvertible bonds on March 18, 2019 (bond abbreviation: Tongwei Convertible Bonds, bond code:
110054), the issue price is 100 yuan/piece, the total amount of raised funds is 5 billion yuan, and the actualnet amount of raised funds is 4,937,801,000 yuan. The conversion period is from September 23, 2019 toMarch 17, 2025. The convertible bonds issued on April 10, 2019 can be listed on the Shanghai StockExchange.
(II) Status of convertible bond holders and guarantors during the reporting period
√Applicable □Inapplicable
| Name of convertible corporate bond | Tongwei Convertible Bonds |
| Number of convertible bond holders at the end of the period | 0 |
| Convertible bond guarantor of the Company | None |
| The top ten holders of convertible bonds are as follows: | ||
| Name of the holder of the convertible corporate bond | Amount of debt held at the end of the period (Yuan) | Holding ratio (%) |
| Inapplicable | Inapplicable | Inapplicable |
| Name of convertible corporate bond | Before this change | Increase /decrease of this change | After this change | ||
| Conversion | Redemption | Sell back | |||
| Tongwei Convertible Bonds | 4,997,269,000 | 4,976,622,000 | 20,647,000 | - | 0 |
| Name of convertible corporate bond | Tongwei Convertible Bonds |
| Conversion amount during the reporting period (Yuan) | 4,976,622,000 |
| Number of conversion during the reporting period (shares) | 405,261,088 |
| Cumulative number of conversion (shares) | 405,483,464 |
| The cumulative number of conversion accounted for the total number of issued shares of the Company before the conversion (%) | 10.44 |
| Amount not yet conversion (Yuan) | 0 |
| Proportion of non-converted convertible bonds in total issuance of convertible bonds (%) | 0.41 |
| Name of convertible corporate bond | Tongwei Convertible Bonds | |||
| Conversion price adjustment date | Adjusted conversion price | Disclosure time | Disclosure media | Conversion price adjustment explanation |
| May 23, 2019 | 12.28 | May 24, 2019 | Shanghai Stock Exchange website and China Securities Journal, Shanghai Securities Journal, Securities Daily and Securities Times. | The 2018 profit distribution plan of the Company: to distribute cash dividend of 1.60 yuan (tax included) to all shareholders for every 10 shares. According to the relevant provisions of the Prospectus for the Public Issuance of A-Shares Convertible Corporate Bonds by Tongwei Co., Ltd., the conversion price of convertible bonds needs to be adjusted, and the conversion price before the adjustment is 12.44 yuan/share. |
| The latest conversion price by the end of the reporting period | Inapplicable | |||
(2019), the entity credit rating of the Company was maintained as "AA+", and the rating outlook is stable;the credit rating of this bond is maintained as "AA+". During the reporting period, neither the company'srating nor the current convertible bond rating changed. During the reporting period, the Companyexercised the early redemption right of "Tongwei Convertible Bonds". As of the redemption registrationdate, a total of 4,979,353,000 yuan of "Tongwei Convertible Bonds" has been converted into companystocks, and the Company implemented compulsory redemption for the remaining 20,647,000 yuan of"Tongwei Convertible Bonds". By the end of the reporting period, the Company had no convertible bondsin circulation, and there was no cash arrangement for subsequent redemption of convertible bonds.(VI) Explanation of other circumstances of convertible bonds
√Applicable □Inapplicable
According to the Prospectus for the Company’s Public Issuance of A-Shares Convertible CorporateBonds: “during the conversion period of this issue of convertible bonds, if the closing price of A-shares ofthe Company is not lower than 130% (including 130%) of the current conversion price for at least 15trading days in 30 consecutive trading days, or the non-converted balance of the convertible bonds issuedthis time is less than RMB 30 million, the Company has the right to redeem all or part of the convertiblebonds that have not been converted according to the bond face value and the current accrued interest price".From January 14, 2020 to March 3, 2020, the closing price of 15 trading days within 30 consecutivetrading days of the Company is not less than 130% of the current conversion price of "TongweiConvertible Bonds" (namely, 15.96 yuan/share), the redemption clause of "Tongwei Convertible Bonds"has been triggered.
On March 3, 2020, the Company held the sixth meeting of the seventh board of directors, at whichthe Proposal on Early Redemption of "Tongwei Convertible Bonds" was reviewed and approved, and theCompany was approved to exercise the early redemption right of "Tongwei Convertible Bonds", andredeem all "Tongwei Convertible Bonds" registered on the "Redemption Registration Date".
By the market close on the redemption registration date (March 16, 2020), the face value balance ofthe "Tongwei Convertible Bonds" was RMB 20,647,000, accounting for 0.41% of the total amount ofRMB 5,000,000,000 of the "Tongwei Convertible Bonds". On March 17, 2020, the Company redeemedall balance of the above "Tongwei Convertible Bonds". By the market close on the redemption registrationdate, the cumulative face value of RMB 4,979,353,000 "Tongwei Convertible Bonds" was converted intocompany shares, accounting for 99.59% of the total amount of “Tongwei Convertible Bonds”; thecumulative conversion number was 405,483,464 shares, accounting for 10.44% of the total number ofissued shares of the Company before the "Tongwei Convertible Bonds". After completing the conversion,the total number of shares of the Company has changed from 3,882,372,220 shares to 4,287,855,684 shares.From March 17, 2020, "Tongwei Convertible Bonds" and "Tongwei Convertible Shares" will be delistedon the Shanghai Stock Exchange.
Section VI Changes in Common Stock Equity and ShareholdersI. Changes in common capital shares(I) List of changes in common shares
1. List of changes in common shares
Unit: share
| Before this change | Increase / decrease of this change (+, -) | After this change | |||||||
| Quantity | Proportion (%) | Issue new shares | Share donation | Capital reserves | Other | Subtotal | Quantity | Proportion (%) | |
| I．Restricted shares | 213,692,500 | 213,692,500 | 213,692,500 | 4.75 | |||||
| 1. State shareholding | |||||||||
| 2. State-owned legal person shareholding | |||||||||
| 3. Other domestic shareholding | 213,692,500 | 213,692,500 | 213,692,500 | 4.75 | |||||
| Of which: domestic non-state-owned legal persons shareholding | |||||||||
| Domestic natural person shareholding | |||||||||
| 4. Foreign shareholding | |||||||||
| Of which: foreign legal person shareholding | |||||||||
| Foreign natural person shareholding | |||||||||
| II. Unrestricted tradable shares | 3,882,594,596 | 100 | 405,261,088 | 405,261,088 | 4,287,855,684 | 95.25 | |||
| 1. RMB common shares | 3,882,594,596 | 100 | 405,261,088 | 405,261,088 | 4,287,855,684 | 95.25 | |||
| 2. Domestically listed foreign shares | |||||||||
| 3. Foreign shares listed overseas | |||||||||
| 4. Other | |||||||||
| III．Total number of common shares | 3,882,594,596 | 100 | 213,692,500 | 405,261,088 | 618,953,588 | 4,501,548,184 | 100 |
| Shareholder name | Number of restricted shares at the beginning of the year | Number of restricted shares lifted this year | Number of restricted shares increased this year | Number of restricted shares at the end of the year | Reasons for restricted sale | Release of restricted date |
| Qamdo Tongrui Industrial | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering | June 7, 2021 |
| Partnership (Limited Partnership) | of shares locked up | |||||
| Shanghai Yusheng Investment Management Co., Ltd. | 0 | 0 | 14,300,000 | 14,300,000 | Non-public offering of shares locked up | June 7, 2021 |
| Shanghai Yingshui Investment Management Co., Ltd.-Yingshui Yueyi No. 19 Private Securities Investment Fund | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Xinghan Asset Management-CIB "Xingye Golden Snowball-Priority No.3 RMB financial plan -Xinghan Asset Management- Xingyuan No. 5 Single Asset Management Plan | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Taikang Life Insurance Co., Ltd.-Ltd.-Investment-Innovation | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Combination of Basic Pension Insurance Fund 1205 | 0 | 0 | 1,428,572 | 1,428,572 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-E Fund New Economy Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 714,285 | 714,285 | Non-public offering of shares locked up | June 7, 2021 |
| Bank of China Limited-E Fund Balanced Growth Equity Securities Investment Fund | 0 | 0 | 4,285,714 | 4,285,714 | Non-public offering of shares locked up | June 7, 2021 |
| Bank of China-E Fund Stable Growth Securities Investment Fund | 0 | 0 | 714,285 | 714,285 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-E Fund Kexiang Hybrid Securities Investment Fund | 0 | 0 | 1,428,572 | 1,428,572 | Non-public offering of shares locked up | June 7, 2021 |
| Bank of Communications Co., Ltd.-E Fund Kexun Hybrid Securities Investment Fund | 0 | 0 | 1,428,572 | 1,428,572 | Non-public offering of shares locked up | June 7, 2021 |
| Yunnan Energy Investment Capital Investment Co., Ltd. | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-Hongde Yuxiang Bond Securities Investment Fund | 0 | 0 | 232,143 | 232,143 | Non-public offering of shares locked up | June 7, 2021 |
| China Construction Bank Corporation-Hongde Hongye Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 357,143 | 357,143 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co. Ltd.-Hongde Hongye Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 214,286 | 214,286 | Non-public offering of shares locked up | June 7, 2021 |
| China Construction Bank Corporation-Hongde Strategic Transformation Equity Securities Investment Fund | 0 | 0 | 1,071,428 | 1,071,428 | Non-public offering of shares locked up | June 7, 2021 |
| China Merchants Bank Co., Ltd.-Hongde Ruize Hybrid Securities Investment Fund | 0 | 0 | 2,500,000 | 2,500,000 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co. Ltd.-Hongde Hongye Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 571,428 | 571,428 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co. Ltd.-Hongde Quantitative Selection Hybrid Securities Investment Fund | 0 | 0 | 357,143 | 357,143 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-Hongde | 0 | 0 | 714,286 | 714,286 | Non-public offering of shares locked up | June 7, 2021 |
| Yukang Bond Securities Investment Fund | ||||||
| China Everbright Bank Co., Ltd.-Hongde Optimal Growth Hybrid Securities Investment Fund | 0 | 0 | 535,714 | 535,714 | Non-public offering of shares locked up | June 7, 2021 |
| Bank of Communications Co., Ltd.-Hongde Youshi Linghang Flexible Configuration Hybrid Securities Investment Funds | 0 | 0 | 107,143 | 107,143 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co. Ltd.-Hongde Research Selection Hybrid Securities Investment Fund | 0 | 0 | 214,286 | 214,286 | Non-public offering of shares locked up | June 7, 2021 |
| China Merchants Bank Co., Ltd.-Hongde Ruixing Three-year Holding Period Hybrid Securities Investment Fund | 0 | 0 | 892,857 | 892,857 | Non-public offering of shares locked up | June 7, 2021 |
| China Postal Savings Bank Co., Ltd.-Hongde Ruixiang One-year holding Hybrid Securities Investment Fund | 0 | 0 | 100,000 | 100,000 | Non-public offering of shares locked up | June 7, 2021 |
| Dajia Assets-Industrial and Commercial Bank of China-Dajia Assets-Blue Chip Featured No. 5 Collective Asset Management Product | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Dacheng Fund-Huaneng Trust·Jiayue No. 4 Single Fund Trust-Dacheng Fund Excellence No. 1 Single Asset Management Plan | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Dacheng Fund-Huaneng Trust·Jiayue No. 7 Single Fund Trust-Dacheng Fund Excellence No. 2 Single Asset Management Plan | 0 | 0 | 24,285,715 | 24,285,715 | Non-public offering of shares locked up | June 7, 2021 |
| Dacheng Fund-Huaneng Trust·Yueying No. 13 Single Fund Trust-Dacheng Fund Excellence No. 9 Single Asset Management Plan | 0 | 0 | 21,071,428 | 21,071,428 | Non-public offering of shares locked up | June 7, 2021 |
| China CITIC Bank Co., Ltd.-Jiutai Ruiyi Fixed Increased Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 3,571,429 | 3,571,429 | Non-public offering of shares locked up | June 7, 2021 |
| China Merchants Securities Co., Ltd.-Jiutai Taifu Fixed Increase Theme Flexible Configuration Hybrid Securities Investment Fund | 0 | 0 | 285,714 | 285,714 | Non-public offering of shares locked up | June 7, 2021 |
| Jiutai Fund-China Guangfa Bank-Sichuan Jinduo Investment Co., Ltd. | 0 | 0 | 4,285,714 | 4,285,714 | Non-public offering of shares locked up | June 7, 2021 |
| Jiutai Fund-China Guangfa Bank-Orient Securities Co., Ltd. | 0 | 0 | 500,000 | 500,000 | Non-public offering of shares locked up | June 7, 2021 |
| Hillhouse Capital Management Co., Ltd.-China Value Fund (Exchange) | 0 | 0 | 17,857,142 | 17,857,142 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Huaneng Trust ? Yueying No. 15 Single Fund Trust-Caitong Fund Excellence No. 2 Single Asset Management Plan | 0 | 0 | 9,368,328 | 9,368,328 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Huaneng Trust·Jiayue No. 5 Single Fund Trust-Caitong Fund Excellence | 0 | 0 | 20,674,931 | 20,674,931 | Non-public offering of shares locked up | June 7, 2021 |
| No. 3 Single Asset Management Plan | ||||||
| Caitong Fund-Pan Xuhong-Caitong Fund Shaoxia No. 1 Single Asset Management Plan | 0 | 0 | 96,914 | 96,914 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Gao Xueqing-Caitong Fund Haohai Fixed Increase No. 1 Single Asset Management Plan | 0 | 0 | 35,535 | 35,535 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Qingdao Haisi Qingyun Equity Investment Fund Enterprise (Limited Partnership)-Caitong Fund Haisi Qingyun Single Asset Management Plan | 0 | 0 | 484,569 | 484,569 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-Caitong domestic demand growth for 12 months to regularly open hybrid securities investment funds | 0 | 0 | 648,353 | 648,353 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-China Construction Bank-China Life-China Life Insurance (Group) Company entrust Caitong Fund Management Co., Ltd. for fixed increase and combination | 0 | 0 | 807,614 | 807,614 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Liang Dekang-Caitong Fund Hengneng New Energy No. 1 Single Asset Management Plan | 0 | 0 | 321,431 | 321,431 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Chen Yanru-Caitong Fund Hengneng New Energy No. 2 Single Asset Management Plan | 0 | 0 | 321,431 | 321,431 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Chengdu Maxis Online Technology Co., Ltd.-Caitong Fund Hengneng New Energy No. 3 Single Asset Management Plan | 0 | 0 | 642,861 | 642,861 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Sichuan Debord Pharmaceutical Co., Ltd.-Caitong Fund Hengneng New Energy No. 4 Single Asset Management Plan | 0 | 0 | 321,431 | 321,431 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Liu Fangbai-Caitong Fund Hengneng New Energy No. 5 Single Asset Management Plan | 0 | 0 | 482,953 | 482,953 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Suzhou Industrial Park Zhongxin Energy Development Co., Ltd.-Caitong Fund Zhongxin No. 1 Single Asset Management Plan | 0 | 0 | 1,611,352 | 1,611,352 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Jiang Yong-Caitong Fund Yuquan No. 892 Single Asset Management Plan | 0 | 0 | 263,282 | 263,282 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Shaanxi Investment Fund Management Co., Ltd.-Caitong Fund Yuquan No. 838 Single Asset Management Plan | 0 | 0 | 962,676 | 962,676 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Luzhou Puxin Equity Investment Fund Partnership (Limited Partnership)-Caitong Fund Puxin No. 3 Single Asset Management Plan | 0 | 0 | 646,092 | 646,092 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Zhongyuan Securities Co., Ltd.-Caitong Fund Tianxi Dingzeng No. 66 Single | 0 | 0 | 323,046 | 323,046 | Non-public offering of shares locked up | June 7, 2021 |
| Asset Management Plan | ||||||
| Caitong Fund-Capital Securities Co., Ltd.-Caitong Fund Huitong No. 1 Single Asset Management Plan | 0 | 0 | 32,304 | 32,304 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Shanghai Lu'an Investment Co., Ltd.-Caitong Fund Lutou Fixed Increased Optimal Single Asset Management Plan | 0 | 0 | 96,914 | 96,914 | Non-public offering of shares locked up | June 7, 2021 |
| Caitong Fund-Huang Zheng-Caitong Fund Dongxian No. 1 Single Asset Management Plan | 0 | 0 | 96,914 | 96,914 | Non-public offering of shares locked up | June 7, 2021 |
| Zhuque Fund-Shaanxi Coal Industry Co., Ltd.-Shaanxi Coal Zhuque New Energy Industry Single Asset Management Plan | 0 | 0 | 6,785,714 | 6,785,714 | Non-public offering of shares locked up | June 7, 2021 |
| China Merchants Bank Co., Ltd.-Zhuque Industry Selected Hybrid Securities Investment Fund | 0 | 0 | 214,286 | 214,286 | Non-public offering of shares locked up | June 7, 2021 |
| Industrial and Commercial Bank of China Co., Ltd.-Zhuque Industrial Intelligent Selection Hybrid Securities Investment Fund | 0 | 0 | 39,286 | 39,286 | Non-public offering of shares locked up | June 7, 2021 |
| Ping An Bank Co., Ltd.-Zhuque Enterprise Winning Stock Securities Investment Fund | 0 | 0 | 103,571 | 103,571 | Non-public offering of shares locked up | June 7, 2021 |
| Chengdu Fusenmei Home Furnishing Co., Ltd. | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| China Merchants Bank Co., Ltd.-Ruiyuan Growth Value Hybrid Securities Investment Fund | 0 | 0 | 7,142,857 | 7,142,857 | Non-public offering of shares locked up | June 7, 2021 |
| Total | 0 | 0 | 213,692,500 | 213,692,500 | / | / |
| Type of Stocks and their derivatives | Issuing date | Issuing price (or interest rate) | Issuing number | Listing date | Number of approved listing transactions | Transaction termination date | |
| Common share | |||||||
| Non-public offering of shares | November 17, 2020 | 28yuan/share | 213,692,500 | December 8, 2021 | 213,692,500 | Inapplicable | |
RMB 4,979,353,000 "Tongwei Convertible Bonds" has been converted into company shares, and thecumulative number of shares converted was 405,483,464 shares. After completing the conversion, thetotal number of shares of the Company was changed from 3,882,594,596 shares to 4,287,855,684 sharesat the beginning of the reporting period.
After the Reply of Approving Non-public Offering of Shares of Tongwei Co., Ltd. (ZJXK [2020] No.2492) of China Securities Regulatory Commission, the Company issued 213,692,500 RMB commonshares (A-shares) with a face value of 1.00 each to 16 subjects, the issue price is RMB 28.00/share. OnDecember 8, 2020, the non-public offering of shares was completed in the Shanghai Branch of ChinaSecurities Depository and Clearing Co., Ltd., and the total share capital of the Company was changed from4,287,855,684 shares to 4,501,548,184 shares.
In view of the above equity changes, as the controlling shareholder, the shareholding ratio of TongweiGroup has changed from 51.47% to 44.39%, and it is still the controlling shareholder of the Company. Atthe end of the reporting period, the total assets of the Company were 64.252 billion, total liabilities were
32.708 billion yuan, and the debt-to-asset ratio was 50.91%.
(III) Existing internal employee shares
□Applicable √Inapplicable
III. Actual controller situation(I) Total number of shareholders
| Total number of common shareholders as of the end of the reporting period (Nr.) | 184,897 |
| Total number of common shareholders at the end of the previous month before disclosure of the annual report (Nr.) | 355,999 |
| Total number of preferred shareholders with restored voting rights up to the end of the reporting period (Nr.) | 0 |
| Total number of preferred shareholders with restored voting rights at the end of the month before the disclosure date of the annual report (Nr.) | 0 |
Unit:Share
| Shareholding of the top ten shareholders | |||||||
| Name of shareholder (full name) | Increase/decrease during reporting period | Number of shares held at the end of the period | Proportion (%) | Number of holding shares with trading limited condition | Pledged or frozen status | Shareholder nature | |
| Shares status | Quantity | ||||||
| Tongwei Group Co., Ltd. | 0 | 1,998,422,515 | 44.39 | 0 | Pledge | 738,900,000 | Domestic non-state-owned legal persons |
| Hong Kong Securities Clearing Company Ltd. | 125,715,166 | 184,492,222 | 4.10 | 0 | None | 0 | Unknown |
| China Life Insurance Company Limited-dividends-individual dividends-—005L —FH002 Shanghai | -32,207,411 | 87,930,989 | 1.95 | 0 | None | 0 | Unknown |
| China Construction Bank Corporation-Guangfa Kexian Hybrid Securities Investment Fund | 51,898,803 | 51,898,803 | 1.15 | 0 | None | 0 | Unknown |
| Huaneng Guixin Trust Co., Ltd.-Huaneng Trust·Danhua Growth Accumulative Capital Trust Plan | 49,656,515 | 49,656,515 | 1.10 | 0 | None | 0 | Unknown |
| Industrial and Commercial Bank of China Co., Ltd.-Guangfa Shuangqing Upgraded Hybrid Securities Investment Fund | 43,127,208 | 43,127,208 | 0.96 | 0 | None | 0 | Unknown |
| Shanghai Pudong Development Bank Co., Ltd.-Guangfa Xiaopan Growth Hybrid Securities Investment Fund (LOF) | 37,546,507 | 37,546,507 | 0.83 | 0 | None | 0 | Unknown |
| Industrial and Commercial Bank of China Co., Ltd.-Guangfa Innovation and Upgrade Flexible Configuration Hybrid Securities Investment Fund | 29,950,085 | 29,950,085 | 0.67 | 0 | None | 0 | Unknown |
| Bank of China Limited-Huatai Bai Rui CSI Photovoltaic Industry Trading Open Index Securities Investment Fund | 27,996,400 | 27,996,400 | 0.62 | 0 | None | 0 | Unknown |
| Dacheng Fund-Huaneng Trust·Jiayue No. 7 Single Fund Trust-Dacheng Fund Excellence No. 2 Single Asset Management Plan | 24,285,715 | 24,285,715 | 0.54 | 24,285,715 | None | 0 | Unknown |
| Shareholdings of top ten shareholders without trading limited condition | |||||||
| Name of shareholder (full name) | Number of tradable shares without trading limited condition | Share type and number | |
| Category | Quantity | ||
| Tongwei Group Co., Ltd. | 1,998,422,515 | RMB common stock | 1,998,422,515 |
| Hong Kong Securities Clearing Company Ltd. | 184,492,222 | RMB common stock | 184,492,222 |
| China Life Insurance Company Limited-dividends-individual dividends-—005L —FH002 Shanghai | 87,930,989 | RMB common stock | 87,930,989 |
| China Construction Bank Corporation-Guangfa Kexian Hybrid Securities Investment Fund | 51,898,803 | RMB common stock | 51,898,803 |
| Huaneng Guixin Trust Co., Ltd.-Huaneng Trust·Danhua Growth Accumulative Capital Trust Plan | 49,656,515 | RMB common stock | 49,656,515 |
| Industrial and Commercial Bank of China Co., Ltd.-Guangfa Shuangqing Upgraded Hybrid Securities Investment Fund | 43,127,208 | RMB common stock | 43,127,208 |
| Shanghai Pudong Development Bank Co., Ltd.-Guangfa Xiaopan Growth Hybrid Securities Investment Fund (LOF) | 37,546,507 | RMB common stock | 37,546,507 |
| Industrial and Commercial Bank of China Co., Ltd.-Guangfa Innovation and Upgrade Flexible Configuration Hybrid Securities Investment Fund | 29,950,085 | RMB common stock | 29,950,085 |
| Bank of China Limited-Huatai Bai Rui CSI Photovoltaic Industry Trading Open Index Securities Investment Fund | 27,996,400 | RMB common stock | 27,996,400 |
| Industrial and Commercial Bank of China Co., Ltd.- agricultural bank Huili New Energy Theme Flexible Configuration Hybrid Securities Investment Fund | 23,828,895 | RMB common stock | 23,828,895 |
| Explanations of relationships between or concerted actions of the aforementioned shareholders | Tongwei Group Co., Ltd. has no relationship with the other shareholders mentioned above. In addition, it is not known whether other shareholders have any relationship. | ||
| Explanation of preferred shareholders with restored voting rights and shareholdings | Inapplicable | ||
Shares held by the top ten shareholders with trading conditions and the detailed information about the trading conditions
√Applicable □Inapplicable
Unit: Share
| S/N | Name of shareholders with trading conditions | Number of holding shares with trading limited condition | Conditions of listing shares with trading conditions | Restricted conditions | |
| Available trading time | The number of newly listed shares | ||||
| 1 | Dacheng Fund-Huaneng Trust·Jiayue No. 7 Single Fund Trust-Dacheng Fund Excellence No. 2 Single Asset Management Plan | 24,285,715 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 2 | Dacheng Fund-Huaneng Trust·Yueying No. 13 Single Fund Trust-Dacheng Fund Excellence No. 9 Single Asset Management Plan | 21,071,428 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 3 | Caitong Fund-Huaneng Trust·Jiayue No. 5 Single Fund Trust-Caitong Fund Excellence No. 3 Single Asset Management Plan | 20,674,931 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 4 | Hillhouse Capital Management Co., Ltd.-China Value Fund (Exchange) | 17,857,142 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 5 | Shanghai Yusheng Investment Management Co., Ltd. | 14,300,000 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 6 | Caitong Fund-Huaneng Trust ? Yueying No. 15 Single Fund Trust-Caitong Fund Excellence No. 2 Single Asset Management Plan | 9,368,328 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Taikang Life Insurance Co., Ltd.-Ltd.-Investment-Innovation | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Dajia Assets-Industrial and Commercial Bank of China-Dajia Assets-Blue Chip Featured No. 5 Collective Asset Management Product | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Qamdo Tongrui Industrial Partnership (Limited Partnership) | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Shanghai Yingshui Investment Management Co., Ltd.-Yingshui Yueyi No. 19 Private Securities Investment Fund | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Xinghan Asset Management-CIB "Xingye Golden Snowball-Priority No.3 RMB financial plan -Xinghan Asset Management- Xingyuan No. 5 Single Asset Management Plan | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Yunnan Energy Investment Capital Investment Co., Ltd. | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Dacheng Fund-Huaneng Trust·Jiayue No. 7 Single Fund Trust-Dacheng Fund Excellence No. 1 Single Asset Management Plan | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | Chengdu Fusenmei Home Furnishing Co., Ltd. | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 7 | China Merchants Bank Co., Ltd.-Ruiyuan Growth Value Hybrid Securities Investment Fund | 7,142,857 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 8 | Zhuque Fund-Shaanxi Coal Industry Co., Ltd.-Shaanxi Coal Zhuque New Energy Industry Single Asset Management Plan | 6,785,714 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 9 | Bank of China Limited-E Fund Balanced Growth Equity Securities Investment Fund | 4,285,714 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 9 | Jiutai Fund-China Guangfa Bank-Sichuan Jinduo Investment Co., Ltd. | 4,285,714 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| 10 | China CITIC Bank Co., Ltd.-Jiutai Ruiyi Fixed Increased Flexible Configuration Hybrid Securities Investment Fund | 3,571,429 | June 7, 2021 | - | The Company privately issues shares to it, and the subscribed shares shall not be transferred within 6 months from the end of the issuance. |
| Explanations of relationships between or concerted actions of the aforementioned shareholders | In addition, it is not known whether other shareholders have any relationship. | ||||
(III) Strategic investor or general legal entity becoming top ten shareholders due to rights issue
□Applicable √Inapplicable
IV. Controlling Shareholders and Actual Controllers(I) Controlling shareholders1 Legal person
√Applicable □Inapplicable
| Name | Tongwei Group Co., Ltd. |
| Head of unit or legal representative | Guan Yamei |
| Date of establishment | October 14, 1996 |
| Main businesses | Wholesale and retail of commodities; livestock husbandry; science and technology promotion and application service industry; software and information technology services; import and export service; real estate development and management; property management; rental service; solar power generation (the above excludes items requiring prior approval, and items subject to ex-post approval are operated with license or approval documents) |
| Equity situation of other domestic and foreign listed company of share controlling or participation during the reporting period | None |
| Explanation of other conditions | None |
| Name | Liu Hanyuan |
| Nationality | China |
| Whether the actual controller has right of residence in other countries and regions | No |
| Major position and title | Chairman of Tongwei Group Board of Directors, Director of the 7th Board of Directors of the Company, Member of the Standing Committee of the 11th National Committee of the Chinese People's Political Consultative Conference, Representative of the National People's Congress, Standing Committee Member of the All-China Federation of Industry and Commerce, Executive Chairman of CNECC, Executive |
Tongwei Group Co., Ltd.Shareholdingproportion 44.39%
Shareholdingproportion 44.39%Tongwei Co., Ltd.
| Vice-chairman of China Feed Industry Association | |
| Domestic and foreign listed company controlled in past 10 years | None |
Liu HanyuanShareholdingproportion 80%
Shareholdingproportion 80%
Tongwei Group Co., Ltd.
Tongwei Group Co., Ltd.Shareholdingproportion 44.39%
Shareholdingproportion 44.39%
Tongwei Co., Ltd.
Section VIII Conditions on Directors, Supervisors, Senior Management and StaffI. Changes in Shareholding and Compensation(I) Changes in shareholding and compensations of directors, supervisors and senior management currently in office and leaving posts during reporting
period
√Applicable □Inapplicable
Unit:Share
| Name | Position (note) | Sex | Age | Starting date of tenure | Ending date of tenure | Number of shares held at the beginning of year | Number of shares held at the end of year | Share changes within the year | Causes for changes | Total pre-tax compensation acquired from the Company during reporting period (RMB 0,000) | Whether receiving compensation from related parties of the Company |
| Liu Hanyuan | Director | Male | 56 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 496.33 | No | |
| Xie Yi | Chairman | Male | 37 | 2019-05-08 | 2022-05-07 | 377,448 | 290,122 | -87,336 | Note | 503.76 | No |
| Yan Hu | Vice chairman | Male | 57 | 2011-05-10 | 2022-05-07 | 836,650 | 836,650 | 0 | 257.35 | No | |
| Duan Yong | Director | Male | 47 | 2016-05-03 | 2022-05-07 | 1,290,090 | 1,061,628 | -228,822 | Note | 416.31 | No |
| Wang Xiaohui | Director | Male | 44 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 0 | No | |
| Ding Yi | Director | Female | 56 | 2020-05-12 | 2022-05-07 | 0 | 0 | 0 | 3.33 | No | |
| Du Kunlun | Independent director | Male | 52 | 2016-01-15 | 2022-01-14 | 0 | 0 | 0 | 10.00 | No | |
| Wang Jin | Independent director | Male | 54 | 2016-05-03 | 2022-05-02 | 0 | 0 | 0 | 10.00 | No | |
| Fu Daiguo | Independent director | Male | 56 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 10.00 | No | |
| Deng San | Chairman of the Board of Suoervisors | Female | 36 | 2017-05-05 | 2022-05-07 | 279,600 | 225,880 | -53,720 | Note | 104.68 | No |
| Yang Shixian | Supervisor | Male | 48 | 2007-04-30 | 2022-05-07 | 281,000 | 210,800 | -70,200 | Note | 55.98 | No |
| Chen Xiaohua | Supervisor | Male | 51 | 2016-05-03 | 2022-05-07 | 0 | 0 | 0 | 3.00 | No | |
| Guo Yizhong | General Manager | Male | 50 | 2016-03-03 | 2022-05-07 | 500,450 | 500,450 | -166,150 | Note | 268.88 | No |
| Chen Pingfu | Deputy General Manager | Male | 55 | 2010-04-27 | 2022-05-07 | 498,450 | 444,730 | -53,720 | Note | 266.98 | No |
| Wang Shangwen | Deputy General Manager | Male | 57 | 2013-05-07 | 2022-05-07 | 659,050 | 659,050 | 0 | 283.69 | No |
| Song Gangjie | Deputy General Manager | Male | 57 | 2013-05-07 | 2022-05-07 | 550,100 | 425,075 | -125,025 | Note | 112.47 | No |
| Shen Jinzhu | Deputy General Manager | Male | 55 | 2016-05-09 | 2022-05-07 | 373,800 | 280,400 | -93,400 | Note | 230.08 | No |
| Zhang Lu | Deputy General Manager | Male | 42 | 2017-03-12 | 2022-05-07 | 375,400 | 281,600 | -93,800 | Note | 123.93 | No |
| Zhou Bin | Chief Financial Officer | Male | 52 | 2019-05-08 | 2022-05-07 | 55,211 | 55,211 | 0 | 144.29 | No | |
| Yan Ke | Secretary of the Board of Directors | Male | 36 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 115.31 | No | |
| Total | / | / | / | / | / | 6,077,249 | 5,271,596 | -972,173 | / | 3,416.37 | / |
| Name | Main work experiences |
| Liu Hanyuan | Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer, former chairman of the board of directors of Tongwei Group (from 1st to 6th board), and currently the board chairman of Tongwei Group and a director of the 7th board of directors. Other social positions include the 11th Standing Committee of the CPPCC National Committee, deputy to the NPC (National People's Congress), member of Standing Committee of All-China Federation of Industry and Commerce, executive chairman of CNECC, executive vice chairman of China Feed Industry Association. |
| Xie Yi | Male, born in 1984, MIM from Imperial College London, UK, member of the CPC, deputy to the 13th CPC Chengdu Congress, vice chairman of the 14th Committee of Sichuan Youth Federation, member of the 15th CPPCC Chengdu Committee, member of the 11th CPPCC Standing Committee of Shuangliu District, Chengdu; vice chairman of the second council of CPIA; secretary of the Party Committee of Tongwei Group, chairman of the 7th board of directors of Tongwei Co., Ltd., chairman of Tongwei Solar (Hefei) Co., Ltd., chairman of Tongwei Solar (Chengdu) Co., Ltd., and chairman of Tongwei Solar (Meishan) Co., Ltd. |
| Yan Hu | Male, born in 1964, MBA of Guanghua School of Management, Peking University, senior accountant. He was the director and the chief financial officer of New Hope Group, and the director of New Hope Liuhe Co., Ltd. After joining Tongwei, he has served as the chief accountant of Tongwei Co., Ltd., the president of Tongwei Co., Ltd., the director (1st, 2nd, 4th, 5th, 6th board of directors) of the Company and the vice chairman of the 6th board of directors. He is currently a director and vice-chairman of the 7th board of directors of the Company. At present, he is vice-chairman of Sichuan Enterprise Confederation, vice-chairman of Sichuan Association of Feed Industry, vice-chairman of Sichuan Society for Fishery, vice-chairman of The Listed Company Association of Sichuan, etc. |
| Duan Yong | Male, born in 1974, MBA and Master from Lingnan University, Hong Kong. He once served as deputy chief financial officer and secretary of the board of directors of Shanghai Topslane Medical Devices Co., Ltd.; chief financial officer, assistant to president, executive president and president of East Hope Group (Baotou). He is currently chairman of Yongxiang Co., Ltd. and a director of the 7th board of directors of the Company. |
| Wang Xiaohui | Male, born in 1976, master's degree. He was the former auditor of Beijing KPMG Huazhen Accounting Firm, industry analyst of CITIC Securities Research Department, senior manager and director of energy industry group of Investment Banking Committee of CITIC Securities, executive general |
| manager of M&A Department of Investment Banking Committee of CITIC Securities. Now, he is the executive director of China Life Asset Management Co., Ltd. and director of Beijing Jingneng Power Co., Ltd. and director of the 7th board of directors of the Company. | |
| Ding Yi | Female, born in 1964, member of the Communist Party of China, doctoral degree in economics, Renmin University of China. She worked in Huaneng Power International Co., Ltd., and successively served as the chairman of Huaneng Capital Services Co., Ltd., Great Wall Securities and other companies. She is currently a director of the Seventh Board of Directors of the Company and also serves as an independent director of Huaxia Bank Co., Ltd and Huatai Asset Management Co., Ltd. |
| Du Kunlun | Male, born in 1969, doctor of economics, CPA (Certified Public Accountant), CPV (Certified Public Valuer), researcher, master supervisor of Institute of Finance of Sichuan Academy of Social Sciences; and he served as a member of the 12th and 13th Main Board Issuance Examination Commission of China Securities Regulatory Commission. He is currently an independent director of the 5th and 6th board of directors of the Company. In addition, he is the independent director of Luzhou Laojiao Co., Ltd., Cscec Scimee Sci.&Tech. Co., Ltd. |
| Fu Daiguo | Male, born in 1964, dean of the Western Business School of Southwestern University of Finance and Economics, professor of accounting, doctoral supervisor, and vice president of Chengdu Accounting Society. He has served as an independent director of several companies such as Sichuan Crun Co., Ltd., Lier Chemical Co., Ltd., Ingenic Semiconductor Inc. Currently, he is an independent director of the 7th board of directors of the Company, and also an independent director of Maccura Biotechnology Co., Ltd. and Sichuan Langjiu Group Co., Ltd. |
| Wang Jin | Male, born in 1966, doctor of economics and professor from Emory University, USA. He once worked in Emory University, Georgian College, Georgia Public Affairs, Federal Reserve Bank and other institutions and served as a teacher at Renmin University of China and Shanghai University. Since March 2012, he has been the director of the International Energy Research Institute. At present, he is an independent director of the 7th board of directors of the Company and an independent director of CECEP Solar Energy Co., Ltd. and Shuangdeng Cable Co., Ltd. |
| Deng San | Female, born in 1984, CPC member, MBA of Sichuan University. She serves as head of the secretary department of Tongwei Co., Ltd. and assistant to the chairman of the board of directors, chairman of the 6th and 7th supervisory boards of the Company. |
| Yang Shixian | Male, born in 1972, master of market economics. He serves as finance manager of Fuling Tongwei Feed Co., Ltd., project manager of the Company's development department, manager of finance department and assistant to the general manager of He'nan Tongwei Feed Co., Ltd. He is currently the supervisor of supervisory board (from 3rd to 6th boards) of the Company. |
| Chen Xiaohua | Male, born in 1969, CPA (Certified Public Accountant). He worked at Chengdu Zhongda Accounting Firm, Sichuan Branch of Beijing Jingdu Public Accounting Firm and Sichuan Shenghe Public Accounting Firm. Now, he is the director of Sichuan Branch of Beijing Xinghua Public Accounting Firm (Special General Partnership) and the supervisor of the 6th and 7th supervisory boards of the Company. |
| Guo Yizhong | Male, born in 1970, college degree. He served as general manager of Jieyang Tongwei Feed Co., Ltd., general manager of Guangdong Tongwei Feed Co., Ltd. and general manager of Guangdong Area. Since March 2016, he has been as the general manager of the Company. |
| Chen Pingfu | Male, born in 1965, EMBA, CPA (Certified Public Accountant). He successively served as manager, deputy general manager and general manager of Finance Department of Sichuan Tongwei Feed Co., Ltd.; member of the 4th and the 5th boards of directors of the Company. He is currently the deputy general manager of the Company and the general manager of Vietnam Area I. |
| Wang Shangwen | Male, born in 1963, MBA, doctor's degree. He successively served as assistant to the president, director of human resources, marketing director and technical director of the Company. He is currently the deputy general manager of the Company. |
| Song Gangjie | Male, born in 1964, aquaculture engineer, EMBA in Agriculture from School of Continuing Education, Tsinghua University (2002-2003). He successively served as assistant to the president of the Company, general manager of Chongqing Area, general manager of Jiangsu and Zhejiang Area, general manager of Yangze River and Huai River Area, general manager of Suzhou Tongwei Feed Co., Ltd., general manager of Nanjing Tongwei |
| Aquatic Products Technology Co., Ltd., etc. Now, he is the deputy general manager of the Company. | |
| Shen Jinzhu | Male, born in 1966, bachelor degree, aquaculture engineer. He successively served as the general manager of Shashi Tongwei Feed Co., Ltd., assistant general manager of Guangdong Tongwei Feed Co., Ltd., general manager of Vietnam Area and general manager of Vietnam Tongwei. He is now the deputy general manager of the Company and general manager of Central China Area I. |
| Zhang Lu | Male, born in 1979, doctor's degree, researcher. He was the technical director of fish feed in Guangdong Yuehai Feeds Group. He successively served as the Company's technical deputy director and aquaculture technical director. Currently, he is vice president, technical director and deputy general manager of the Company's research institute. |
| Zhou Bin | Male, born in 1968, bachelor degree in accounting from Shanghai University of Finance and Economics, master degree from Southwest Jiaotong University, MBA from University of South Australia, CPA (Certified Public Accountant) and CPV (Certified Public Valuer). He was the legal representative and executive director of Sichuan Beite Certified Public Accounting Firm, the general manager of Sichuan Zhongfa Certified Tax Accountant Firm and the chief financial officer of Sichuan Yongxiang Co., Ltd. and now, he is the chief financial officer of the Company. |
| Yan Ke | Male, born in 1985, bachelor degree, accounting major of Southwest University of Finance and Economics. He served as the Company's securities affairs representative. Now, he is the secretary of the 7th board of directors of the Company. |
| Name of employees | Name of the firm of shareholders | Post held in the firm of shareholders | Starting date of tenure | Ending date of tenure |
| Liu Hanyuan | Tongwei Group Co., Ltd. | Chairman of Board of Directors | 2008-03-24 | |
| Conditions on service in shareholder unit | None | |||
| Name of employees | Name of other organizations | Position held in other organizations | Starting date of tenure | Ending date of tenure |
| Du Kunlun | Sichuan Academy of Social Sciences | Master supervisor | 2012-12-01 | |
| Du Kunlun | Luzhou Laojiao Co., Ltd | Independent Director | 2015-06-30 | |
| Du Kunlun | Tianqi Lithium Corporation. | Independent Director | 2017-02-10 | 2020-09-09 |
| Du Kunlun | Sichuan Jule Food Co., Ltd. (To be listed) | Independent Director | 2017-05-14 | 2020-09-09 |
| Du Kunlun | Cscec Scimee Sci.&Tech. Co., Ltd. | Independent Director | 2019-01-28 | |
| Wang Jin | International Energy Research Institute | Director | 2012-06-01 | |
| Wang Jin | Chongqing Zongshen Power | Independent Director | 2016-04-01 | 2019-10-31 |
| Wang Jin | CECEP Solar Energy Co., Ltd. | Independent Director | 2014-03-01 | |
| Wang Jin | Shuangdeng Cable Co., Ltd. | Independent Director | 2020-08-01 | |
| Fu Daiguo | Southwestern University of Finance and Economics | Professor | 2002-12-01 | |
| Fu Daiguo | Maccura Biotechnology Co., Ltd. | Independent Director | 2019-01-22 | |
| Fu Daiguo | Sichuan Langjiu Group Co., Ltd. | Independent Director | 2019-07-31 | |
| Ding Yi | Huaxia Bank Co., Ltd. | Independent Director | 2020-09-09 | |
| Ding Yi | Huatai Asset Management Co., Ltd. | Independent Director | 2020-09-04 | |
| Chen Xiaohua | Beijing Xinghua Public Accounting Firm (Special General Partnership) | Director of Sichuan Branch | 2012-09-01 | |
| Wang Xiaohui | China Life Asset Management Co., Ltd. | Executive director | 2017-03-08 | |
| Wang Xiaohui | Beijing Jingneng Power Co., Ltd. | Director | 2017-12-28 | |
| Conditions on service in other units | None | |||
| Compensation decision-making process of directors, supervisors and senior management | According to the Company's Management Rules for Performance Appraisal, decisions shall be made by the shareholders meeting and the board of directors. |
| Compensation decision basis of directors, supervisors and senior management | The basis shall be determined according to the requirements of the salary level of the industry, the Company's operating performance and job responsibilities, and the qualitative and quantitative indicators such as the work plan formulated by the board of directors at the beginning of the year and the completion of individual work performance. |
| Compensation actually paid to directors, supervisors and senior management | The compensation of the Company's directors, supervisors and senior management shall be reasonably paid according to their performance of duties, annual performance appraisal results, post-performance appraisal results and the Company's Management Rules for Performance Appraisal. |
| Total compensation paid to all the directors, supervisors and senior management at the end of the reporting period | RMB 34.164 million yuan |
| Name | Post | Status of change | Reasons for change |
| Ding Yi | Director | Elected | On May 12, 2020, the 2019 annual general meeting of shareholders of the Company deliberated and passed the proposal on the election of Ms. Ding Yi as the director of the seventh board of directors of the Company. |
V. Explanation on the Punishment from the Securities Regulatory Commission in Last Three Years
□Applicable √Inapplicable
VI. Employee Status of Parent Company and Major Subsidiaries
(I) Employee status
| Number of employees on active duty in the parent company | 2,797 |
| Number of employees on active duty in the main subsidiaries | 22,752 |
| Number of employees on active duty in total | 25,549 |
| Number of the retired staff with expenses borne by the parent company and main subsidiaries | 19 |
| Type of professions | |
| Professions | Number of professional persons |
| Production personnel | 14,617 |
| Sales personnel | 3,724 |
| Technician | 3,653 |
| Financial personnel | 616 |
| Administrative personnel | 2,939 |
| Total | 25,549 |
| Education background | |
| Education level | Quantity (Nr.) |
| Master or above | 497 |
| Bachelor | 4,829 |
| College degree | 5,396 |
| Below college degree | 14,827 |
| Total | 25,549 |
Section IX Company Governance
I. Explanation on the Company Governance
√Applicable □Inapplicable
During the reporting period, the Company further improved its company governance structure andvarious internal systems based on the actual situation of the Company in strict accordance with theCompany Law, Code of Corporate Governance for Listed Company and other laws requirements. Theshareholders meeting, the board of directors, the board of supervisors and the management of the Companyhave clear powers and responsibilities. The decision-making power, the supervision power and themanagement power perform respective functions, check and balance and operate in coordination; and astandardized corporate governance structure is formed. The board of directors of the Company believesthat the actual status of the corporate governance structure of the Company complies with the requirementsof the Code of Corporate Governance for Listed Company, and there is no difference.(I) Organization of three meetingsDuring the reporting period, the Company held one annual and two interim shareholders meeting.The procedures of the Company's shareholders meeting comply with the relevant provisions of RulesGoverning the Listing of Stocks on the Shanghai Stock Exchange, Company Articles of Association andRules of Procedure for Shareholders Meeting, safeguarding the legitimate rights and interests of theCompany and the majority of shareholders. A total of 12 meetings of the Board of Directors were heldduring the reporting period. The directors of the Company attended the board meeting in accordance withthe Articles of Association and the Rules of Procedures for the Board of Directors and other systems. Theydiscussed deeply on various proposals submitted for deliberation, provided suggestions for the Company'soperation and development and fully considered the interests and demands of small and mediumshareholders when making decisions, which has improved the scientificity of their decisions and promotedthe stable and healthy development of the Company's production and operation. During the reportingperiod, a total of 11 meetings of the board of supervisors were held. Supervisors of the Company attendedthe meetings of the board of supervisors in accordance with the regimes such as Articles of Associationand the Rules of Procedure for the Board of supervisors. The supervisors of the Company have performedtheir supervisory duties earnestly.
(II) Implementation of information disclosure
The Company has always attached great importance to information disclosure. In accordance withthe Shanghai Stock Exchange's requirements for implementing the relevant regulations on informationdisclosure of listed company in the new Securities Law, the directors, supervisors and senior executivesof the Company signed written confirmation opinions on the company’s periodic reports to ensure that theinformation disclosure is true, accurate and complete. At the same time, the Company strictly abides bythe principle of "openness, fairness and justice" to ensure that all shareholders have equal opportunities toobtain the disclosed information.
(III) Registration system for insiders of inside information
Regarding the registration of insider information, in accordance with the refinancing requirements ofthe new Securities Law, the chairman of the Company and secretary of the board of directors have issuedrelevant written commitments in strict accordance with the requirements. In the daily work of theCompany, the Company has also done a good job of keeping inside information confidential in strictaccordance with the requirements of the system, maintaining the principle of fairness in the company'sinformation disclosure, and effectively protecting the legitimate rights and interests of the Company'sshareholders.
(IV) Investor relations management
In the process of daily operation and management, the Company strictly abides by relevant laws andregulations, answers investors’ calls, mails, visits, and Shanghai Stock Exchange E-interaction questionscarefully and patiently, and continuously strengthens communication with investors, which enhancesinvestors’ understanding and trust to the Company; and the Company's image in the capital market ismaintained well.
(V) Return to shareholders
During the reporting period, the Company continued to perform its due social responsibilityobligations and actively shared the Company's operating results with investors. The Companyimplemented the profit distribution for 2019 in strict accordance with the Dividend Plan for the Next Three
Years (2018-2020). By implementing dividends strictly according to the plan, the Company has createdvalue for shareholders while also enhancing social reputation and social image.
The Company has a complete governance structure, a sound internal control system, and a stableoperation. Through the strengthening of corporate governance from top to bottom, the level of corporategovernance continues to improve, and all links and tasks are carried out legally and orderly.
Is there any significant difference between the Company governance and the requirements of theChina Securities Regulatory Commission (CSRC)? If any, the reasons shall be given.
□Applicable √Inapplicable
II. Introduction to Shareholders Meeting
| Session | Holding date | Query indexes on specified website for published resolutions | Date for disclosure of published resolutions |
| The 1st Interim Shareholders Meeting in 2021 | February 27, 2020 | http://www.sse.com.cn | February 28, 2020 |
| Stockholders meeting in 2019 | May 12, 2020 | http://www.sse.com.cn | May 13, 2020 |
| The 2nd Interim Shareholders Meeting in 2021 | July 30, 2020 | http://www.sse.com.cn | July 31, 2020 |
| Director name | Independent director or not | Attendance at the board of directors | Attendance at shareholders meeting | |||||
| Time(s) of supposed annual attendance at the board of directors | Time(s) of attendance in person | Time(s) of attendance via telecommunication | Time(s) of entrusted attendance | Time(s) of absence | Does he/she fail to attend in person for two successive times? | Time(s) of attendance at shareholders meeting | ||
| Liu Hanyuan | No | 12 | 12 | 10 | 0 | 0 | No | 2 |
| Xie Yi | No | 12 | 12 | 10 | 0 | 0 | No | 2 |
| Yan Hu | No | 12 | 12 | 10 | 0 | 0 | No | 3 |
| Duan Yong | No | 12 | 12 | 10 | 0 | 0 | No | 2 |
| Wang Xiaohui | No | 12 | 12 | 10 | 0 | 0 | No | 1 |
| Ding Yi | No | 8 | 8 | 8 | 0 | 0 | No | 0 |
| Du Kunlun | Yes | 12 | 12 | 10 | 0 | 0 | No | 3 |
| Wang Jin | Yes | 12 | 12 | 10 | 0 | 0 | No | 1 |
| Fu Daiguo | Yes | 12 | 12 | 10 | 0 | 0 | No | 3 |
| Annual meeting(s) of board of directors | 12 |
| Wherein: on-site meeting(s) | 1 |
| Number of meetings held by communication | 10 |
| Meeting(s) convened in on-site and telecommunication mode | 1 |
IV. The specific information should be disclosed in case of any objections to the important opinionsand suggestions raised by the Special Committee under the Board of Directors during itsperformance of duties in the reporting period.
√Applicable □Inapplicable
Under the Company's board of directors, there are four special committees: Audit Committee,Remuneration and Evaluation Committee, Strategic Decision Committee, and Nomination Committee.During the reporting period, the four special committees carried out relevant work in strict accordancewith the regulations and requirements of the working rules formulated by the Company, and effectivelyperformed the duties of the members of the special committees. During the reporting period, the fourspecial committees raised no objections to any of the proposals.
V. Explanation by the Board of Supervisors on the Company’s risks
□Applicable √Inapplicable
VI. The Company’s Explanation on Failure of the Company and Its Controlling Shareholders toRemain Independent and Autonomous Management Capacity in Respect of Business, Personnel,Assets, Institution and Financial Affairs
□Applicable √Inapplicable
The Company should prepare the solution measures, job schedule and follow-up work plan to cope withhorizontal competition.
□Applicable √Inapplicable
VII. About the Establishment and Implementation of the Evaluation System and IncentiveMechanism for Senior Management in the Reporting Period
√Applicable □Inapplicable
The remuneration of the Company's senior management is based on the Company's RemunerationManagement System and linked to the Company's operating performance and personal performance.
VIII. Whether the Report on Internal Control Self-evaluation should be disclosed?
√Applicable □Inapplicable
The Company's Report on Internal Control Self-evaluation in 2020 was disclosed on the ShanghaiStock Exchange's website (www.sse.com.cn) on April 13, 2021.
Explanation of great defects in internal control during reporting period
□Applicable √Inapplicable
IX. Information on Internal Control Audit Report
√Applicable □Inapplicable
Sichuan Huaxin employed by the Company has audited the Company's internal control in 2020 andissued a standard and unqualified auditor's report on internal control. For details, please refer to the"Internal Control Audit Report of Tongwei Co., Ltd. in 2020" disclosed on April 13, 2021 by the Companyon the website of Shanghai Stock Exchange (www.sse.com.cn).Whether internal control audit reports are disclosed：YesType of opinion of internal control audit report: standard and unqualified opinionX. Others
□Applicable √Inapplicable
Section X Information on Company Bonds
□Applicable √Inapplicable
Section XI Financial ReportI. Auditor’s Report
√Applicable □Inapplicable
The Company's annual financial report has been audited by Feng Yuan, He Shoufu and Gou Jing,certified public accountants of Sichuan Huaxin, and an unqualified auditor's report has been issued.
Auditor’s Report
CHXS (2021) No.0014All shareholders of Tongwei Co., Ltd.:
I. Audit OpinionWe have audited the financial statements of Tongwei Co., Ltd. (hereinafter referred to as “TongweiCo., Ltd.”), including Consolidated and Parent Company’s Balance Sheets dated on December 31, 2020,as well as 2020 Consolidated and Parent Company’s Income Statements, Consolidated and ParentCompany’s Cash Flow Statements, Consolidated and Parent Company’s Statements of Changes inOwner’s Equity, and Notes to Financial Statements.In our opinion, the attached financial statements were compiled as per the provisions of AccountingStandards for Business Enterprises in all major aspects and can fairly present the merger of Tongwei Co.,Ltd. on December 31, 2020 and parent company’s financial position as well as the merger in 2020 andbusiness performance and cash flows of parent company.II. Basis Forming Audit OpinionsWe have performed the audit work in accordance with the provisions of the auditing rules of ChineseCertified Public Accountant. The "Responsibility of Certified Public Accountants for Auditing FinancialStatements" in the audit report further explains our responsibilities under these guidelines. In accordancewith the Code of Professional Ethics of Chinese Certified Public Accountant, we are independent ofTongwei Co., Ltd. and have fulfilled other responsibilities in aspect of professional ethics. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance inour audit of the financial statements of current year. These matters were addressed in the context of ouraudit for the entire financial statements and the formation of our opinions thereon. We do not declare aseparate opinion on these matters.(I) Revenue recognition
1. Matter explanation
As shown in Note V. 45 "Operating Revenue and Operating Cost" of Financial Statements and NoteXIV. 2 "Segment Information" of Financial Statements, in 2020, Tongwei Co., Ltd.'s consolidatedoperating revenue was RMB 44.20 billion, of which: PV business was the main business revenue of 22.502billion yuan, and the main business revenue of agriculture and animal husbandry business was 20.936billion yuan. Operating revenue is a key performance indicator of Tongwei Co, Ltd.. There is an inherentrisk of management manipulating revenue recognition in order to achieve specific goals or expectations.Therefore, we identify revenue recognition as a key audit matter.
2. Audit response
(1) Understand whether the design and operation of internal control related to test sales andcollection are effective, and evaluate the rationality of the basis and timing of revenue recognition.
(2) Implement analysis procedures on sales revenue, including comparison with the same period,comparison by product category, etc., to evaluate the rationality of related changes.
(3) Select major customers, check contracts, orders, invoices, customer signatures, etc., and verifythe transaction amount and balance of the end of the period to confirm the authenticity, completeness andaccuracy of the transaction; for other customers, randomly check sales contracts, customer purchasingorders, shipping documents, transportation documents, payment receipts, customer receipt records andother materials to verify the authenticity, completeness and accuracy of the sales revenue amount.
(4) Recalculate and verify PV power generation revenue according to the unit price and settlementpower confirmed in the electricity purchase and sale agreement and related documents of power generationsubsidies; send a letter to the State Grid Electric Power Company for the settlement of power and thesettlement of desulfurization electricity fees.
(5) Check export sales and shipments and customs declaration data, combined with theimplementation of letter verification procedures for export sales customers’ advance payment balances toverify the authenticity, completeness and accuracy of export sales revenue.
(6) Query the industrial and commercial information of important customers and ask the relevantpersonnel of Tongwei Co., Ltd. to confirm whether these customers have an associated relationship withTongwei Co., Ltd.
(7) Select the cut-off test for sales revenue recognition before and after the balance sheet date, payattention to the date when the customer signs the receipt, and also pay attention to whether there is a largereturn after the period to verify whether the corresponding revenue is included in the appropriateaccounting period.
(II) The existence of bank acceptance bills receivable and the integrity of bank acceptancebills payable
1. Matter explanation
As shown in Note V. 5 "Financing of Accounts Receivable" and Note V. 25 "Notes Payable-BankAcceptance Draft" of the financial statements, as of December 31, 2020, accounts receivable financing,bills payable-bank acceptance balances were respectively 9.712 billion yuan and 9.364 billion yuan, whichaccounted for 15.12% of total assets and 28.63% of total liabilities respectively, affecting 8.38 percentpoints of the debt-to-asset ratio. The PV industry of Tongwei Co., Ltd. generally uses bill settlement. Withthe growth of business scale and the development of its "bill pool" business with banks, Tongwei Co., Ltd.has a relatively large balance of bank acceptance bills receivable and payable, and the bills receivable hasthe situation of pledged restricted. The amount of bank acceptance bills receivable and payable issignificant. Therefore, we consider the existence of bank acceptance bills receivable and the integrity ofbank acceptance bills payable as key audit matters.
2. Audit response
(1) Understand and test the design and operation of key internal controls related to the managementbills, and evaluate whether they are effective.
(2) Obtain the reference book of Tongwei Co., Ltd., check the consistency of the record of thereference book and the amount of the book, and take a sample from the receipt and payment records ofthe bill for inspection, check the bill information, etc.
(3) Check the bill discount agreement and bill pool agreement, check whether the discount interestand accounting treatments are correct, and check the bill margin, pledged bills receivable and the billspayable that are restricted due to the issuance of bills payable.
(4) Information on bills payable, pledged bills receivable and discounted bills issued at the end ofbank confirmation;
(5) Obtain the corporate credit report and check whether the information on the notes payable anddiscounted notes issued at the end of the period is consistent with the book records.
(6) At the end of the period, the bills receivable shall be monitored to confirm whether the billsreceivable at the end of the period actually exist and the accuracy of the bill information, and at the sametime check the restrictions on the pledge of the bills receivable.
(7) Review whether the consideration of bill settlement in the cash flow statement prepared by themanagement of Tongwei Co., Ltd. is appropriate and whether the relevant presentation is correct.
IV. Other InformationThe Management of Tongwei Co., Ltd. shall be responsible for other information. Other informationcomprises the information included in the 2020 Annual Report, but does not include the financialstatements and our audit report thereon.Our opinion on the financial statements does not cover the other information and we do not expressany form of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If we conclude that there is a material misstatement in such other information based on the work wehave performed, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and Governance for the Financial Statements
The Management of Tongwei Co., Ltd. shall be responsible for preparing Financial Statements thatgive a true and fair presentation in accordance with Accounting Standards for Business Enterprises, anddesigning, implementing and maintaining necessary internal control to prevent material misstatementcaused by fraud or error in Financial Statements.When preparing the financial statements, the management is responsible for assessing the sustainableoperation ability of Tongwei Co., Ltd., disclosing matters related to the sustainable operation (ifapplicable), and applying the sustainable operation assumption, unless the management plans to liquidateTongwei Co., Ltd., terminate operations or has no other realistic choice.The Governance shall be responsible for supervising the financial reporting process of Tongwei Co.,Ltd.VI. CPA's Responsibilities for Auditing the Financial StatementsOur objective is to obtain reasonable assurance that the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee to detect a materialmisstatement in an audit conducted in accordance with Auditing Standards. Misstatement can arise fromfraud or error is considered material if, individually or in aggregate, they could reasonably be expected toinfluence the economic decisions users would take on the basis of these financial statements.As part of an audit in accordance with Auditing Standards, we exercise professional judgment andmaintain professional skepticism throughout the audit. Meanwhile, we also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinions. The risk of failing to detect a materialmisstatement due to fraud is higher than that of failing to detect a material misstatement resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or overriding ofinternal control.
(2) Understand the audit-related internal control to design appropriate audit procedures.
(3) Assess the appropriateness of adopted accounting policies and the reasonableness of accountingestimates and relevant disclosures made by the Management.
(4) Conclude the appropriateness of the going-concern assumption made by the Management. Besides,based on the audit evidence obtained, whether a material uncertainty exists related to events or conditionsthat may cast a significant doubt on the Tongwei Co., Ltd.’s ability to continue as a going concern; if weconclude that the material uncertainty does exist, according to the Auditing Standards, we shall bring theusers’ attention in our auditor’s report to the relevant disclosures in the financial statements; if thedisclosures are inadequate, we shall modify our opinion. Our conclusions are based on the informationthat has been available till the date of our auditor’s report. However, future events or conditions may causeTongwei Co., Ltd. to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whetherthe Financial Statements provide a fair representation of the underlying transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of the entitiesor business activities within Tongwei Co., Ltd. to express an opinion on the Financial Statements. We areresponsible for the direction, supervision and performance of the audit on the Group, and we remain solelyresponsible for our audit opinion.We communicate with those charged with Governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings etc., including any significant deficiencies ininternal control that we identify during our audit.We also provide those charged with Governance with a statement that we have complied with thoserelevant ethical requirements regarding independence, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence and related safeguards, whereapplicable.From the matters communicated with the Governance, we determine those matters that were of mostsignificance in the audit of the financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor’s report unless the laws or regulations preclude publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter shall notbe communicated in our report because the adverse consequences of doing so will reasonably be expectedto outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA Firm China Certified Public Accountants: Feng Yuan
(Project partner)(Special General Partnership) China Certified Public Accountant: He Shoufu
Chengdu, China China Certified Public Accountant: Gou Jing
April 9, 2021
II. Financial Statement
Consolidated Balance SheetDecember 31, 2020Prepared by: Tongwei Co., Ltd.
Unit:Yuan Currency: RMB
| Item | Note | December 31, 2020 | December 31, 2019 |
| Current assets: | |||
| Cash at bank and on hand | 6,264,168,242.03 | 2,692,681,748.77 | |
| Settlement reserves | |||
| Lending funds | |||
| Trading financial assets | 1,531,863,068.12 | ||
| Derivative financial assets | |||
| Notes receivable | 530,962,356.27 | 457,074,006.31 | |
| Accounts receivable | 1,069,352,776.17 | 1,672,241,936.75 | |
| Receivables financing | 9,711,898,567.92 | 4,392,541,416.88 | |
| Advance payment | 1,113,458,878.37 | 389,875,898.15 | |
| Premiums receivable | |||
| Reinsurance premium receivable | |||
| Reinsurance contract reserves receivable | |||
| Other receivables | 797,517,755.34 | 805,398,204.90 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Redemptory cash at bank and on hand for sale | |||
| Inventories | 2,773,077,527.98 | 2,415,680,873.20 | |
| Contract assets | 988,680,196.66 | ||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 810,572,652.99 | 917,830,014.66 | |
| Total current assets | 25,591,552,021.85 | 13,743,324,099.62 | |
| Non-current assets: | |||
| Loans and advances | |||
| Debt investment | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 477,736,082.22 | 439,741,224.58 | |
| Other equity instrument investments | 153,445,100.85 | 153,385,357.94 | |
| Other non-current financial assets | 1,258,097.00 | ||
| Investment real estate | 102,993,048.15 | 107,112,223.47 | |
| Fixed assets | 29,829,602,625.00 | 24,533,684,430.23 | |
| Construction in progress | 2,997,901,620.59 | 3,587,311,808.76 | |
| Productive biological assets | 91,397.35 | 2,417,050.59 | |
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 1,663,705,788.75 | 1,709,753,019.31 | |
| Development expenditure | |||
| Goodwill | 635,818,717.99 | 635,818,717.99 | |
| Long-term prepaid expenses | 835,269,963.57 | 607,333,082.04 | |
| Deferred income tax assets | 415,550,864.14 | 244,903,723.68 | |
| Other non-current assets | 1,547,022,743.45 | 1,056,166,007.39 | |
| Total non-current assets | 38,660,396,049.06 | 33,077,626,645.98 | |
| Total assets | 64,251,948,070.91 | 46,820,950,745.60 | |
| Current liabilities | |||
| Short-term loan | 2,349,154,525.77 | 3,622,853,209.83 | |
| Borrowings from the central bank | |||
| Loans from other banks | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 9,411,924,434.78 | 5,294,623,239.24 | |
| Accounts payable | 3,917,320,980.64 | 3,609,038,689.71 | |
| Advance receipt | 35,072,100.83 | 1,571,445,278.97 | |
| Contract liabilities | 2,302,728,492.73 |
| Financial assets sold for repurchase | |||
| Deposits from customers and interbank | |||
| Receivings from vicariously traded securities | |||
| Receivings from vicariously sold securities | |||
| Employee compensation payable | 736,363,100.05 | 692,632,415.17 | |
| Taxes and fees payable | 220,414,765.91 | 173,544,507.36 | |
| Other payables | 743,639,264.91 | 613,261,268.85 | |
| Including: Interest payable | 53,828,469.22 | ||
| Dividend payable | 1,188,940.27 | ||
| Fees and commissions payable | |||
| Reinsurance amounts payable | |||
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 2,533,702,158.71 | 1,142,185,072.84 | |
| Other current liabilities | 130,204,120.53 | 1,123,805,086.92 | |
| Total current liabilities | 22,380,523,944.86 | 17,843,388,768.89 | |
| Non-current liabilities: | |||
| Insurance contract reserves | |||
| Long-term loan | 6,296,585,539.34 | 4,088,988,505.70 | |
| Bonds payable | 410,096,446.33 | 4,212,346,552.36 | |
| Including: Preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payables | 2,526,572,275.65 | 1,901,507,753.72 | |
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred incomes | 782,273,717.14 | 544,324,456.73 | |
| Deferred income tax liabilities | 311,949,837.40 | 142,204,473.38 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 10,327,477,815.86 | 10,889,371,741.89 | |
| Total liabilities | 32,708,001,760.72 | 28,732,760,510.78 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or share capital) | 4,501,548,184.00 | 3,882,594,596.00 | |
| Other equity instruments | 854,235,969.85 | ||
| Including: Preferred shares | |||
| Perpetual bond | |||
| Capital reserves | 16,105,693,787.44 | 5,672,664,800.50 | |
| Less: Treasury shares | |||
| Other comprehensive income | -73,914,221.72 | -31,800,201.05 | |
| Special reserves | 16,401,063.07 | 18,057,814.87 | |
| Surplus reserves | 925,322,362.44 | 564,141,320.54 | |
| General risk provision | |||
| Undistributed profit | 9,066,353,854.50 | 6,617,152,692.38 | |
| Total owners' equity (or shareholders' equity) attributable to the parent company | 30,541,405,029.73 | 17,577,046,993.09 | |
| Non-controlling interest | 1,002,541,280.46 | 511,143,241.73 | |
| Total owners' equity (or shareholders' equity) | 31,543,946,310.19 | 18,088,190,234.82 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 64,251,948,070.91 | 46,820,950,745.60 |
| Item | Note | December 31, 2020 | December 31, 2019 |
| Current assets: | |||
| Cash at bank and on hand | 5,430,260,350.86 | 1,471,405,136.59 | |
| Trading financial assets | 1,500,000,000.00 | ||
| Derivative financial assets | |||
| Notes receivable | 192,411,653.25 |
| Accounts receivable | 3,002,746.85 | 11,818,819.45 | |
| Receivables financing | 69,390,676.70 | ||
| Advance payment | 16,500,340.59 | 20,317,564.39 | |
| Other receivables | 12,569,916,260.88 | 12,954,465,620.37 | |
| Including: Interest receivable | |||
| Dividend receivable | 1,371,854.15 | ||
| Inventories | 235,553,546.57 | 286,015,214.02 | |
| Contract assets | |||
| Held-for-sale assets | |||
| Non-current assets due within one year | |||
| Other current assets | 11,747,755.66 | 18,065,477.24 | |
| Total current assets | 19,836,371,678.11 | 14,954,499,485.31 | |
| Non-current assets: | |||
| Debt investment | |||
| Other debt investments | |||
| Long-term receivables | 3,821,033,136.03 | 2,633,845,533.29 | |
| Long-term equity investments | 13,836,401,258.90 | 10,949,592,149.18 | |
| Other equity instrument investments | 153,445,100.85 | 153,385,357.94 | |
| Other non-current financial assets | |||
| Investment real estate | 38,690,960.02 | 40,379,903.86 | |
| Fixed assets | 298,259,368.75 | 338,148,583.81 | |
| Construction in progress | 26,343,888.97 | 13,972,100.27 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 60,200,180.33 | 72,308,833.45 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | 18,576,273.26 | 28,898,156.41 | |
| Deferred income tax assets | 1,610,507.55 | 1,833,741.44 | |
| Other non-current assets | 4,559,373.00 | ||
| Total non-current assets | 18,254,560,674.66 | 14,236,923,732.65 | |
| Total assets | 38,090,932,352.77 | 29,191,423,217.96 | |
| Current liabilities | |||
| Short-term loan | 1,899,865,349.31 | 2,796,114,779.39 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 300,000,000.00 | 85,940,000.00 | |
| Accounts payable | 81,247,275.28 | 138,318,934.51 | |
| Advance receipt | 1,921,719.85 | 142,278,536.45 | |
| Contract liabilities | 122,226,302.00 | ||
| Employee compensation payable | 93,517,635.88 | 115,251,165.67 | |
| Taxes and fees payable | 6,703,834.73 | 4,670,323.26 | |
| Other payables | 3,898,411,472.34 | 3,317,703,159.73 | |
| Including: Interest payable | 50,682,524.91 | ||
| Dividend payable | |||
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 370,178,150.11 | 62,384,300.00 | |
| Other current liabilities | 126,263.87 | 1,099,583,333.30 | |
| Total current liabilities | 6,774,198,003.37 | 7,762,244,532.31 | |
| Non-current liabilities: | |||
| Long-term loan | 3,405,262,828.00 | 2,032,538,604.00 | |
| Bonds payable | 410,096,446.33 | 4,212,346,552.36 | |
| Including: Preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payables | 875,898,885.36 | 1,575,898,885.36 | |
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred incomes | |||
| Deferred income tax liabilities | |||
| Other non-current liabilities |
| Total non-current liabilities | 4,691,258,159.69 | 7,820,784,041.72 | |
| Total liabilities | 11,465,456,163.06 | 15,583,028,574.03 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or share capital) | 4,501,548,184.00 | 3,882,594,596.00 | |
| Other equity instruments | 854,235,969.85 | ||
| Including: Preferred shares | |||
| Perpetual bond | |||
| Capital reserves | 17,084,837,736.04 | 6,646,802,814.79 | |
| Less: Treasury shares | |||
| Other comprehensive income | 6,757,300.85 | 6,697,557.94 | |
| Special reserves | |||
| Surplus reserves | 925,322,362.44 | 564,141,320.54 | |
| Undistributed profit | 4,107,010,606.38 | 1,653,922,384.81 | |
| Total owners' equity (or shareholders' equity) | 26,625,476,189.71 | 13,608,394,643.93 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 38,090,932,352.77 | 29,191,423,217.96 |
| Item | Note | 2020 | 2019 |
| I. Total operating revenue | 44,200,270,334.23 | 37,555,118,255.70 | |
| Including: operating revenue | 44,200,270,334.23 | 37,555,118,255.70 | |
| Interest incomes | |||
| Premiums earned | |||
| Handling charges and commission incomes | |||
| II. Total operating costs | 41,070,717,427.55 | 34,856,442,766.60 | |
| Including: operating costs | 36,648,405,064.38 | 30,536,001,116.46 | |
| Interest expenses | |||
| Fees and commissions expenses | |||
| Refunded premiums | |||
| Net amount for insurance claims | |||
| Net amount for insurance contract reserves | |||
| Policyholder dividend expenses | |||
| Reinsurance expenses | |||
| Taxes and surcharges | 124,045,656.13 | 122,861,135.60 | |
| Sales expenses | 778,030,640.18 | 975,270,497.07 | |
| General and administrative expenses | 1,808,578,103.39 | 1,513,809,599.62 | |
| R&D expenses | 1,035,331,434.68 | 1,000,694,593.85 | |
| Financial expenses | 676,326,528.79 | 707,805,824.00 | |
| Including: interest expenses | 682,296,633.96 | 764,775,422.92 | |
| Interest incomes | 57,540,093.05 | 56,710,422.17 | |
| Add: other incomes | 303,549,939.09 | 214,303,960.33 | |
| Investment incomes (loss to be listed with “-”) | 1,569,378,017.50 | 118,366,118.06 | |
| Including: incomes from investments in associates and joint ventures | 22,506,526.78 | 107,669,300.53 | |
| Incomes from derecognition of financial assets at amortized cost | |||
| Foreign exchange incomes (loss to be listed with “-”) | |||
| Net exposure hedging incomes (loss to be listed with “-”) | |||
| Incomes from fair value changes (loss to be listed with “-” | 4,863,068.12 | ||
| Credit impairment loss (loss to be listed with “-”) | -25,239,864.43 | -43,006,733.75 | |
| Asset impairment loss (loss to be listed with “-”) | -267,765,939.43 | -4,917,914.50 | |
| Incomes from assets disposal (loss to be listed with “-”) | -1,148,829.24 | 139,601,655.37 | |
| III. Operating profit (loss to be listed with “-”) | 4,713,189,298.29 | 3,123,022,574.61 |
| Add: non-operating income | 36,995,627.30 | 42,382,735.16 | |
| Less: non-operating expenses | 476,391,959.47 | 13,883,488.63 | |
| IV Total profit (total loss to be listed with “-”) | 4,273,792,966.12 | 3,151,521,821.14 | |
| Less: income tax expenses | 559,054,175.03 | 469,185,830.00 | |
| V Net profit (net loss to be listed with “-”） | 3,714,738,791.09 | 2,682,335,991.14 | |
| (I) Classified by operating continuity | |||
| 1. Net profit from continuing operations (net loss to be listed with“-”） | 3,714,738,791.09 | 2,682,335,991.14 | |
| 2. Net profit from termination of operations (net loss to be listed with“-”） | |||
| (II) Classified by attribution of the ownership | |||
| 1. Net profit attributable to the shareholders of the parent company (net loss to be listed with “-”) | 3,607,923,359.56 | 2,634,568,828.17 | |
| 2. Minority interest profit and loss (net loss to be listed with “-”) | 106,815,431.53 | 47,767,162.97 | |
| VI. Net of tax of other comprehensive income | -42,114,020.67 | 7,882,420.01 | |
| (I) Net of tax of other comprehensive income attributable to the owners of parent company | -42,114,020.67 | 7,882,420.01 | |
| 1. Other comprehensive incomes that cannot be reclassified through profit or loss | 59,742.91 | 5,298,046.85 | |
| (1) Changes arising from re-measurement of the defined benefit plan | |||
| (2) Other comprehensive incomes that cannot be reclassified into profit or loss under the equity method | |||
| (3) Changes in fair value of investment by other equity instruments | 59,742.91 | 5,298,046.85 | |
| (4) Changes in fair value of the enterprise’s credit risk | |||
| 2. Other comprehensive incomes that cannot be reclassified through profit or loss in the future | -42,173,763.58 | 2,584,373.16 | |
| (1) Other comprehensive income which can be transferred to profit or loss under equity method | |||
| (2) Changes in fair value of other debt investments | |||
| (3) Amount of financial assets reclassified into other comprehensive income | |||
| (4) Credit depreciation reserves of other investment on bonds | |||
| (5) Cash flow hedge reserves | |||
| (6) Converted differences of foreign currency financial statements | -42,173,763.58 | 2,584,373.16 | |
| (7) Others | |||
| (II) Net after-tax amount of other comprehensive income attributable to minority shareholders | |||
| VII. Total comprehensive income | 3,672,624,770.42 | 2,690,218,411.15 | |
| (I) Total comprehensive income attributable to the owners of parent company | 3,565,809,338.89 | 2,642,451,248.18 | |
| (II) Total comprehensive income attributable to minority shareholders | 106,815,431.53 | 47,767,162.97 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | 0.8581 | 0.6786 | |
| (II) Diluted earnings per share (RMB/share) | 0.8466 | 0.6558 | |
| Item | Note | 2020 | 2019 |
| I. Operating revenue | 4,192,495,277.69 | 4,608,001,044.23 | |
| Subtract: business costs | 3,637,398,495.75 | 4,069,405,797.97 | |
| Taxes and surcharges | 11,378,524.54 | 9,500,119.27 | |
| Sales expenses | 102,341,946.30 | 135,977,514.41 | |
| General and administrative expenses | 263,765,902.77 | 275,243,555.26 | |
| R&D expenses | 82,199,172.38 | 94,651,070.38 | |
| Financial expenses | 136,659,179.77 | 249,040,595.61 | |
| Including: interest expenses | 304,013,432.37 | 603,413,663.20 | |
| Interest incomes | 35,879,830.81 | 354,041,684.83 | |
| Add: other incomes | 14,854,162.45 | 12,271,154.52 | |
| Investment incomes (loss to be listed with “-”) | 3,696,091,743.61 | 1,490,069,535.76 | |
| Including: incomes from investments in associates and joint ventures | -3,090,231.86 | 6,605,886.65 | |
| Incomes from derecognition of financial assets at amortized cost | |||
| Net exposure hedging incomes (loss to be listed with “-”) | |||
| Incomes from fair value changes (loss to be listed with “-” | |||
| Credit impairment loss (loss to be listed with “-”) | -57,089,598.72 | 124,079,446.16 | |
| Asset impairment loss (loss to be listed with “-”) | |||
| Incomes from assets disposal (loss to be listed with “-”) | 293,836.91 | 113,518,456.73 | |
| II. Operating profit (loss to be listed with “-”) | 3,612,902,200.43 | 1,514,120,984.50 | |
| Add: non-operating income | 1,719,398.03 | 1,778,011.79 | |
| Less: non-operating expenses | 3,745,810.54 | 2,763,173.55 | |
| III. Total profit (loss to be listed with “-”) | 3,610,875,787.92 | 1,513,135,822.74 | |
| Less: income tax expenses | -934,631.09 | 213,682.96 | |
| IV Net profit (net loss to be listed with “-”） | 3,611,810,419.01 | 1,512,922,139.78 | |
| (I) Net profit from continuing operations (net loss to be listed with “-”） | 3,611,810,419.01 | 1,512,922,139.78 | |
| (II) Net profit from termination of operations (net loss to be listed with“-”） | |||
| V. Net other comprehensive income after tax | 59,742.91 | 5,298,046.85 | |
| (I) Other comprehensive incomes that cannot be reclassified through profit or loss | 59,742.91 | 5,298,046.85 | |
| 1. Changes arising from re-measurement of the defined benefit plan | |||
| 2. Other comprehensive incomes that cannot be reclassified into profit and loss under the equity method | |||
| 3. Changes in fair value of investment by other equity instruments | 59,742.91 | 5,298,046.85 | |
| 4. Changes in fair value of the enterprise’s credit risk | |||
| (II) Other comprehensive incomes that will be re-classified through profit or loss | |||
| 1. Other comprehensive income which can be transferred to profit or loss under equity method | |||
| 2. Changes in fair value of other debt investments | |||
| 3. Amount of financial assets reclassified into other comprehensive income | |||
| 4. Amount of financial assets reclassified into other comprehensive income | |||
| 5.Cash flow hedge reserves | |||
| 6.Converted difference in foreign currency statements | |||
| 7.Others | |||
| VI. Total comprehensive income | 3,611,870,161.92 | 1,518,220,186.63 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (RMB/share) | |||
| (II) Diluted earnings per share (RMB/share) |
| Item | Note | 2020 | 2019 |
| I. Cash flows from operating activities: | |||
| Cash received from sales of goods and rendering of services | 37,442,245,418.41 | 27,794,872,880.68 | |
| Net increase in customer deposits and interbank deposits | |||
| Net increase in borrowings from the central bank | |||
| Net increase in placements from other financial institutions | |||
| Cash received for receiving premium of original insurance contract | |||
| Net cash received from reinsurance business | |||
| Net increase in deposits of the insured and investment | |||
| Cash received from interests, fees and commissions | |||
| Net increase in placements from banks and other financial institutions | |||
| Net increase in repurchasing | |||
| Net cash received from securities brokering | |||
| Cash received from taxes refund | 423,961,983.83 | 193,736,805.80 | |
| Cash received relating to other operating activities | 775,771,262.55 | 590,419,243.74 | |
| Sub-total of cash inflows from operating activities | 38,641,978,664.79 | 28,579,028,930.22 | |
| Cash paid for goods and services | 31,447,680,659.72 | 22,185,676,505.26 | |
| Net increase in loans and advances | |||
| Net increase in deposits in the Central Bank and other financial institutions | |||
| Cash paid for claim settlements on original insurance contract | |||
| Net increase in placements to banks and other financial institutions | |||
| Cash paid for interests, fees and commissions | |||
| Cash paid for policy dividends | |||
| Cash paid to and for employees | 2,730,865,444.91 | 2,451,933,363.64 | |
| Payments of taxes and surcharges | 709,964,246.65 | 874,191,910.53 | |
| Cash paid relating to other operating activities | 728,540,381.57 | 709,761,943.11 | |
| Sub-total of cash outflows from operating activities | 35,617,050,732.85 | 26,221,563,722.54 | |
| Net cash flow from operating activities | 3,024,927,931.94 | 2,357,465,207.68 | |
| II. Cash flows from investing activities: | |||
| Cash received from return of investments | 384,107,500.00 | 561,877,193.62 | |
| Cash received from investments income | 96,464,234.31 | 9,120,463.00 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 133,040,127.00 | 71,491,065.83 | |
| Net cash received from disposal of subsidiaries and other business units | 1,778,884,791.31 | 872,519.11 | |
| Cash received relating to other investing activities | 502,607,812.51 | 292,255,854.99 | |
| Sub-total of cash inflows from investing activities | 2,895,104,465.13 | 935,617,096.55 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 5,486,604,092.60 | 4,208,168,887.19 | |
| Cash paid for investments | 1,981,421,297.00 | 621,196,638.17 | |
| Net increase in pledge loans | |||
| Net cash paid to acquire subsidiaries and other business units | 2,966,998.32 | ||
| Cash paid relating to other investing activities | 167,329,398.46 | 394,058,909.35 | |
| Sub-total of cash outflow from investing activities | 7,635,354,788.06 | 5,226,391,433.03 | |
| Net cash flows from investing activities | -4,740,250,322.93 | -4,290,774,336.48 | |
| III. Cash flows from financing activities: | |||
| Cash received from investment absorption | 6,419,669,790.00 | 48,335,000.00 | |
| Including: Cash received by subsidiaries from investment absorption of minority interest | 476,130,300.00 | 48,335,000.00 | |
| Cash received from loans granted | 14,436,194,796.08 | 16,467,251,676.76 | |
| Cash received relating to other financing activities | 1,094,045,631.00 | 943,358,344.18 | |
| Sub-total of cash inflows from financing activities | 21,949,910,217.08 | 17,458,945,020.94 | |
| Cash paid for settlement of borrowings | 13,143,663,135.37 | 12,351,309,057.71 | |
| Cash paid for dividends, profit appropriation or payments of interest | 1,299,112,282.65 | 1,128,765,089.39 | |
| Including: dividends and profit paid to minority interests | 64,286,181.74 | 27,927,672.38 | |
| Cash paid relating to other financing activities | 1,711,762,473.10 | 2,537,786,822.34 |
| Sub-total of cash outflows from financing activities | 16,154,537,891.12 | 16,017,860,969.44 | |
| Net cash flows from financing activities | 5,795,372,325.96 | 1,441,084,051.50 | |
| IV. Effect of changes in foreign exchange rate on cash and cash equivalents | -36,746,892.76 | 6,940,067.92 | |
| V. Net increase in cash and cash equivalents | 4,043,303,042.21 | -485,285,009.38 | |
| Add: beginning balance of cash and cash equivalents | 1,942,739,577.25 | 2,428,024,586.63 | |
| VI. Ending balance of cash and cash equivalents | 5,986,042,619.46 | 1,942,739,577.25 |
| Item | Note | 2020 | 2019 |
| I. Cash flows from operating activities: | |||
| Cash received from sales of goods and rendering of services | 4,347,037,676.95 | 4,596,818,155.72 | |
| Cash received from taxes refund | 68,193.57 | ||
| Cash received relating to other operating activities | 97,529,785.17 | 65,121,145.13 | |
| Sub-total of cash inflows from operating activities | 4,444,635,655.69 | 4,661,939,300.85 | |
| Cash paid for goods and services | 3,641,589,698.05 | 4,437,400,673.50 | |
| Cash paid to and for employees | 346,227,657.01 | 336,283,267.65 | |
| Payments of taxes and surcharges | 11,736,797.15 | 11,095,558.30 | |
| Cash paid relating to other operating activities | 137,244,175.61 | 132,440,576.88 | |
| Sub-total of cash outflows from operating activities | 4,136,798,327.82 | 4,917,220,076.33 | |
| Net cash flow from operating activities | 307,837,327.87 | -255,280,775.48 | |
| II. Cash flows from investing activities: | |||
| Cash received from return of investments | 571,180,300.00 | 562,365,187.04 | |
| Cash received from investments income | 4,060,910,871.57 | 1,489,316,904.17 | |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 117,199,544.67 | 3,873,056.72 | |
| Net cash received from disposal of subsidiaries and other business units | |||
| Cash received relating to other investing activities | |||
| Sub-total of cash inflows from investing activities | 4,749,290,716.24 | 2,055,555,147.93 | |
| Cash paid to acquire fixed assets, intangible assets and other long-term assets | 49,489,656.66 | 40,088,161.36 | |
| Cash paid for investments | 5,347,326,300.00 | 2,230,689,032.59 | |
| Net cash paid to acquire subsidiaries and other business units | |||
| Cash paid relating to other investing activities | |||
| Sub-total of cash outflow from investing activities | 5,396,815,956.66 | 2,270,777,193.95 | |
| Net cash flows from investing activities | -647,525,240.42 | -215,222,046.02 | |
| III. Cash flows from financing activities: | |||
| Cash received from investment absorption | 5,943,539,490.00 | ||
| Cash received from loans granted | 10,630,759,167.28 | 12,650,668,159.25 | |
| Cash received relating to other financing activities | 3,946,866,493.29 | 2,668,712,469.61 | |
| Sub-total of cash inflows from financing activities | 20,521,165,150.57 | 15,319,380,628.86 | |
| Cash paid for settlement of borrowings | 10,573,275,246.67 | 9,763,854,825.58 | |
| Cash paid for dividends, profit appropriation or payments of interest | 1,080,839,135.95 | 984,738,056.66 | |
| Cash paid relating to other financing activities | 4,372,171,885.77 | 4,009,408,217.62 | |
| Sub-total of cash outflows from financing activities | 16,026,286,268.39 | 14,758,001,099.86 | |
| Net cash flows from financing activities | 4,494,878,882.18 | 561,379,529.00 | |
| IV. Effect of changes in foreign exchange rate on cash and cash equivalents | -1,798,024.13 | 694,976.78 | |
| V. Net increase in cash and cash equivalents | 4,153,392,945.50 | 91,571,684.28 | |
| Add: beginning balance of cash and cash equivalents | 1,276,646,954.78 | 1,185,075,270.50 | |
| VI. Ending balance of cash and cash equivalents | 5,430,039,900.28 | 1,276,646,954.78 |
Consolidated Statement of Changes in Owners’ Equity
January-December 2020
Unit:Yuan Currency:RMB
| Item | 2020 | ||||||||||||||
| Equity attributable to the owners of the parent company | Non-controlling interest | Total owners’ equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk provision | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Ending balance of previous year | 3,882,594,596.00 | 854,235,969.85 | 5,672,664,800.50 | -31,800,201.05 | 18,057,814.87 | 564,141,320.54 | 6,617,152,692.38 | 17,577,046,993.09 | 511,143,241.73 | 18,088,190,234.82 | |||||
| Add: changes in accounting policies | |||||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business merger under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 3,882,594,596.00 | 854,235,969.85 | 5,672,664,800.50 | -31,800,201.05 | 18,057,814.87 | 564,141,320.54 | 6,617,152,692.38 | 17,577,046,993.09 | 511,143,241.73 | 18,088,190,234.82 | |||||
| III. Increase/decrease in the current period (decrease to be listed with “-”） | 618,953,588.00 | -854,235,969.85 | 10,433,028,986.94 | -42,114,020.67 | -1,656,751.80 | 361,181,041.90 | 2,449,201,162.12 | 12,964,358,036.64 | 491,398,038.73 | 13,455,756,075.37 | |||||
| (I) Total comprehensive income | -42,114,020.67 | 3,607,923,359.56 | 3,565,809,338.89 | 106,815,431.53 | 3,672,624,770.42 | ||||||||||
| (II) Invested and decreased capital of owners | 618,953,588.00 | -854,235,969.85 | 10,438,034,921.25 | 10,202,752,539.40 | 476,130,300.00 | 10,678,882,839.40 | |||||||||
| 1. Common share invested by owners | 213,692,500.00 | 5,729,018,770.11 | 5,942,711,270.11 | 476,130,300.00 | 6,418,841,570.11 | ||||||||||
| 2. Capital contributed by the holders of other equity instruments | 405,261,088.00 | -854,235,969.85 | 4,709,016,151.14 | 4,260,041,269.29 | 4,260,041,269.29 | ||||||||||
| 3．Amount of share-based payments recognized as owners5 equity | |||||||||||||||
| 4．Others | |||||||||||||||
| (III) Profit distribution | 361,181,041.90 | -1,158,722,197.44 | -797,541,155.54 | -64,286,181.74 | -861,827,337.28 | ||||||||||
| 1. Appropriation to surplus reserves | 361,181,041.90 | -361,181,041.90 | |||||||||||||
| 2. Appropriation to general risk provision | |||||||||||||||
| 3．Distribution to owners (or shareholders) | -797,541,155.54 | -797,541,155.54 | -64,286,181.74 | -861,827,337.28 | |||||||||||
| 4．Others | |||||||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||||||
| 1. Transfer from capital reserves to paid-in capital (or capital stock) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or capital stock) | |||||||||||||||
| 3．Recovery of loss by surplus reserves | |||||||||||||||
| 4．Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6．Others | |||||||||||||||
| (V) Reserves for specific projects | -1,656,751.80 | -1,656,751.80 | -1,656,751.80 | ||||||||||||
| 1. Appropriation in the current period | 46,066,158.86 | 46,066,158.86 | 46,066,158.86 | ||||||||||||
| 2. Amount used in the current period | 47,722,910.66 | 47,722,910.66 | 47,722,910.66 | ||||||||||||
| (VI) Others | -5,005,934.31 | -5,005,934.31 | -27,261,511.06 | -32,267,445.37 | |||||||||||
| IV. Ending balance in the current period | 4,501,548,184.00 | 16,105,693,787.44 | -73,914,221.72 | 16,401,063.07 | 925,322,362.44 | 9,066,353,854.50 | 30,541,405,029.73 | 1,002,541,280.46 | 31,543,946,310.19 |
| Item | 2019 | ||||||||||||||
| Equity attributable to the owners of the parent company | Non-controlling interest | Total owners’ equity | |||||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | General risk provision | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Ending balance of previous year | 3,882,372,220.00 | 5,712,534,456.10 | -41,082,132.15 | 15,988,834.33 | 412,849,106.56 | 4,755,055,633.39 | 14,737,718,118.23 | 488,920,372.70 | 15,226,638,490.93 | ||||||
| Add: changes in accounting policies | 1,399,511.09 | 1,399,511.09 | 1,399,511.09 | ||||||||||||
| Correction of prior period errors | |||||||||||||||
| Business merger under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Beginning balance of the current year | 3,882,372,220.00 | 5,712,534,456.10 | -39,682,621.06 | 15,988,834.33 | 412,849,106.56 | 4,755,055,633.39 | 14,739,117,629.32 | 488,920,372.70 | 15,228,038,002.02 | ||||||
| III. Increase/decrease in the current period (decrease to be listed with “-”） | 222,376.00 | 854,235,969.85 | -39,869,655.60 | 7,882,420.01 | 2,068,980.54 | 151,292,213.98 | 1,862,097,058.99 | 2,837,929,363.77 | 22,222,869.03 | 2,860,152,232.80 | |||||
| (I) Total comprehensive income | 7,882,420.01 | 2,634,568,828.17 | 2,642,451,248.18 | 47,767,162.97 | 2,690,218,411.15 | ||||||||||
| (II) Invested and decreased capital of owners | 222,376.00 | 854,235,969.85 | 2,529,589.35 | 856,987,935.20 | 9,783,857.00 | 866,771,792.20 | |||||||||
| 1. Common share invested by owners | 9,783,857.00 | 9,783,857.00 | |||||||||||||
| 2. Capital contributed by the holders of other equity instruments | 222,376.00 | 854,235,969.85 | 2,529,589.35 | 856,987,935.20 | 856,987,935.20 | ||||||||||
| 3．Amount of share-based payments recognized as owners5 equity | |||||||||||||||
| 4．Others | |||||||||||||||
| (III) Profit distribution | 151,292,213.98 | -772,471,769.18 | -621,179,555.20 | -27,927,672.38 | -649,107,227.58 | ||||||||||
| 1. Appropriation to surplus reserves | 151,292,213.98 | -151,292,213.98 | |||||||||||||
| 2. Appropriation to general risk provision | |||||||||||||||
| 3．Distribution to owners (or shareholders) | -621,179,555.20 | -621,179,555.20 | -27,927,672.38 | -649,107,227.58 | |||||||||||
| 4．Others | |||||||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||||||
| 1. Transfer from capital reserves to paid-in capital (or capital stock) | |||||||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or capital stock) | |||||||||||||||
| 3．Recovery of loss by surplus reserves | |||||||||||||||
| 4．Retained earnings carried forward from changes in defined benefit plans | |||||||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||||||
| 6．Others | |||||||||||||||
| (V) Reserves for specific projects | 2,068,980.54 | 2,068,980.54 | 2,068,980.54 | ||||||||||||
| 1. Appropriation in the current period | 36,794,382.36 | 36,794,382.36 | 36,794,382.36 | ||||||||||||
| 2. Amount used in the current period | 34,725,401.82 | 34,725,401.82 | 34,725,401.82 | ||||||||||||
| (VI) Others | -42,399,244.95 | -42,399,244.95 | -7,400,478.56 | -49,799,723.51 | |||||||||||
| IV. Ending balance in the current period | 3,882,594,596.00 | 854,235,969.85 | 5,672,664,800.50 | -31,800,201.05 | 18,057,814.87 | 564,141,320.54 | 6,617,152,692.38 | 17,577,046,993.09 | 511,143,241.73 | 18,088,190,234.82 | |||||
Statement of Changes in Owner's Equity of the Parent Company
January-December 2020
Unit:Yuan Currency: RMB
| Item | 2020 | ||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profit | Total owners’ equity | |||
| Preferred shares | Perpetual bond | Others | |||||||||
| I. Ending balance of previous year | 3,882,594,596.00 | 854,235,969.85 | 6,646,802,814.79 | 6,697,557.94 | 564,141,320.54 | 1,653,922,384.81 | 13,608,394,643.93 | ||||
| Add: changes in accounting policies | |||||||||||
| Correction of prior period errors | |||||||||||
| Others | |||||||||||
| II. Beginning balance of the current year | 3,882,594,596.00 | 854,235,969.85 | 6,646,802,814.79 | 6,697,557.94 | 564,141,320.54 | 1,653,922,384.81 | 13,608,394,643.93 | ||||
| III. Increase/decrease in the current period (decrease to be listed with “-”） | 618,953,588.00 | -854,235,969.85 | 10,438,034,921.25 | 59,742.91 | 361,181,041.90 | 2,453,088,221.57 | 13,017,081,545.78 | ||||
| (I) Total comprehensive income | 59,742.91 | 3,611,810,419.01 | 3,611,870,161.92 | ||||||||
| (II) Invested and decreased capital of owners | 618,953,588.00 | -854,235,969.85 | 10,438,034,921.25 | 10,202,752,539.40 | |||||||
| 1. Common share invested by owners | 213,692,500.00 | 5,729,018,770.11 | 5,942,711,270.11 | ||||||||
| 2. Capital contributed by the holders of other equity instruments | 405,261,088.00 | -854,235,969.85 | 4,709,016,151.14 | 4,260,041,269.29 | |||||||
| 3．Amount of share-based payments recognized as owners5 equity | |||||||||||
| 4．Others | |||||||||||
| (III) Profit distribution | 361,181,041.90 | -1,158,722,197.44 | -797,541,155.54 | ||||||||
| 1. Appropriation to surplus reserves | 361,181,041.90 | -361,181,041.90 | |||||||||
| 2. Distribution to owners (or shareholders) | -797,541,155.54 | -797,541,155.54 | |||||||||
| 3．Others | |||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. Transfer from capital reserves to paid-in capital (or capital stock) | |||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or capital stock) | |||||||||||
| 3．Recovery of loss by surplus reserves | |||||||||||
| 4．Retained earnings carried forward from changes in defined benefit plans | |||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||
| 6．Others | |||||||||||
| (V) Reserves for specific projects | |||||||||||
| 1. Appropriation in the current period | |||||||||||
| 2. Amount used in the current period | |||||||||||
| (VI) Others | |||||||||||
| IV. Ending balance in the current period | 4,501,548,184.00 | 17,084,837,736.04 | 6,757,300.85 | 925,322,362.44 | 4,107,010,606.38 | 26,625,476,189.71 | |||||
| Item | 2019 | ||||||||||
| Paid-in capital (or share capital) | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Special reserves | Surplus reserves | Undistributed profit | Total owners’ equity | |||
| Preferred shares | Perpetual bond | Others | |||||||||
| I. Ending balance of previous year | 3,882,372,220.00 | 6,644,233,173.78 | 412,849,106.56 | 913,472,014.21 | 11,852,926,514.55 | ||||||
| Add: changes in accounting policies | 1,399,511.09 | 1,399,511.09 | |||||||||
| Correction of prior period errors | |||||||||||
| Others | |||||||||||
| II. Beginning balance of the current year | 3,882,372,220.00 | 6,644,233,173.78 | 1,399,511.09 | 412,849,106.56 | 913,472,014.21 | 11,854,326,025.64 | |||||
| III. Increase/decrease in the current period (decrease to be listed with “-”） | 222,376.00 | 854,235,969.85 | 2,569,641.01 | 5,298,046.85 | 151,292,213.98 | 740,450,370.60 | 1,754,068,618.29 | ||||
| (I) Total comprehensive income | 5,298,046.85 | 1,512,922,139.78 | 1,518,220,186.63 | ||||||||
| (II) Invested and decreased capital of owners | 222,376.00 | 854,235,969.85 | 2,529,589.35 | 856,987,935.20 | |||||||
| 1. Common share invested by owners | |||||||||||
| 2. Capital contributed by the holders of other equity instruments | 222,376.00 | 854,235,969.85 | 2,529,589.35 | 856,987,935.20 | |||||||
| 3．Amount of share-based payments recognized as owners5 equity | |||||||||||
| 4．Others | |||||||||||
| (III) Profit distribution | 151,292,213.98 | -772,471,769.18 | -621,179,555.20 | ||||||||
| 1. Appropriation to surplus reserves | 151,292,213.98 | -151,292,213.98 | |||||||||
| 2. Distribution to owners (or shareholders) | -621,179,555.20 | -621,179,555.20 | |||||||||
| 3．Others | |||||||||||
| (IV) Internal carry-forward of owners’ equity | |||||||||||
| 1. Transfer from capital reserves to paid-in capital (or capital stock) | |||||||||||
| 2. Transfer from surplus reserves to paid-in capital (or capital stock) | |||||||||||
| 3．Recovery of loss by surplus reserves | |||||||||||
| 4．Retained earnings carried forward from changes in defined benefit plans | |||||||||||
| 5. Retained earnings carried forward from other comprehensive income | |||||||||||
| 6．Others | |||||||||||
| (V) Reserves for specific projects | |||||||||||
| 1. Appropriation in the current period | |||||||||||
| 2. Amount used in the current period | |||||||||||
| (VI) Others | 40,051.66 | 40,051.66 | |||||||||
| IV. Ending balance in the current period | 3,882,594,596.00 | 854,235,969.85 | 6,646,802,814.79 | 6,697,557.94 | 564,141,320.54 | 1,653,922,384.81 | 13,608,394,643.93 | ||||
III. Company Information
1. Company profile
√Applicable □Inapplicable
(1) History of the Company
Tongwei Co., Ltd. (hereinafter referred to as "the Company") is a limited liability company foundedfrom the overall change of the Sichuan Tongwei Feed Co., Ltd. and incorporated under sponsorship. OnOctober 21, 2000, with the approval of Official Reply of Sichuan Provincial People’s Government onEstablishing Sichuan Tongwei Co., Ltd. of CFH [2000] No. 311 of the People's Government of SichuanProvince official, Sichuan Tongwei Feed Co., Ltd. changed as a whole and set up Tongwei Co., Ltd. inthe form of incorporation by means of sponsorship. The total share capital of the Company is convertedinto shares at a ratio of 1: 1 with a net asset of RMB 111.88 million of Sichuan Tongwei Feed Co., Ltd.audited by Sichuan Huaxin (Group) CPA Firm as of August 31, 2000, totaling 111.88 million shares. OnNovember 8, 2000, the Sichuan Administration for Industry and Commerce issued the business license ofTongwei Co., Ltd. (registration number: [5100001812986]). On November 19, 2001, the StateAdministration for Industry and Commerce approved the change of the Company name to "Tongwei Co.,Ltd." according to (Guo) MCBHNZ [2001] No.419 of the Enterprise Name Change Approval Notice.On February 16, 2004, the Company publicly issued 60 million RMB common shares (A-shares) asapproved by the document ZJFXZ [2004] No.10 of CSRC. The method of pricing and placing to secondarymarket investors was used for all issues, with the issuance price of RMB 7.50 per share. The post-changeregistered capital was RMB 171,880,000.On February 20, 2006, the Company's equity division reform plan was reviewed and approved by theshareholders meeting on the equity division reform plan of Tongwei Co., Ltd. According to the plan, thetradable shareholders of the Company received 1.5 shares of consideration paid by non-tradableshareholders for every 10 shares of Tongwei, and the tradable shareholders received a total of 9 millionshares of consideration. The Company completed the share change registration for the equity divisionreform on March 3, 2006.
On May 25, 2006, the Company converted and increased its share capital with capital reserves,converting and increasing 5 shares for every 10 shares, awarding 5 shares for every 10 shares with profit,and the total share capital after conversion and bonus was 343.76 million shares; on May 23, 2007, theCompany converted and increased its share capital with capital reserves, converting and increasing 7shares for every 10 shares, awarding 3 shares for every 10 shares with profit, and the share capital afterconversion and bonus was 687.52 million shares.
On July 4, 2013, the Company issued 129,589,632 shares to Tongwei Group Co., Ltd. The sharecapital after the issuance was 817,109,600 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and RaiseSupporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 190) from the CSRCon January 27, 2016, the Company issued 238,324,880 RMB common shares to 17 legal persons such asTongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such as Tang Guangyue,the face value of each share was RMB 1.00, and the share capital after issuance was 1,055,434,512 shares.
On May 19, 2016, the Company converted and increased its share capital with capital reserves,converting and increasing 4 shares for every 10 shares, awarding 6 shares for every 10 shares with profit,and the total share capital after conversion and bonus was 2,110,869,024 shares.
On June 22, 2016, the Company issued 350,262,697 shares to eight institutions such as TianhongAsset Management Co., Ltd. The share capital after the issuance was 2,461,131,721 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and RaiseSupporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 2054) from the CSRCon September 8, 2016, the Company issued 922,901,629 RMB common shares to Tongwei Group Co.,Ltd., the face value of each share was RMB 1.00, and the share capital after issuance was 3,384,033,350shares.
On December 23, 2016, the Company issued 498,338,870 shares to 5 institutions such as EssenceFund Management Co., Ltd. The share capital after the issuance was 3,882,372,220 shares.
Approved by the document (ZJXK [2018] No. 1730) from the CSRC, the Company issued 50 millionpieces convertible corporate bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; afterapproved by the document (ZLJGJDS [2019] No.052) from the Shanghai Stock Exchange, the convertiblecorporate bonds are listed for transaction on the Shanghai Stock Exchange from April 10, 2019; the bondsare named as Tongwei Convertible Bonds for short, the bond code is 110054; the corporate stock was not
lower than 130% (namely 15.96yuan/share ) of the current conversion price of Tongwei ConvertibleBonds for at least 15 trading days in 30 consecutive trading days from January 14, 2020 to March 3, 2020;the redemption clause of "Tongwei Convertible Bonds" has been triggered. Through the sixth meeting ofthe seventh board of directors, the Company is approved to exercise the early redemption right to redeemall "Tongwei Convertible Bonds" registered on the "Redemption Registration Date"; the deadline of theredemption registration date is March 16, 2020; the face value of RMB 4,979,353,000 "TongweiConvertible Bonds" was converted into company shares, the conversion number was 405,483,464 shares,and the conversion shares was 4,287,855,684.
On November 20, 2020, the Company issued additional 213,692,500 shares to 16 institutionsincluding Qamdo Tongrui Industrial Partnership (Limited Partnership). After the additional issuance, theshare capital was 4,501,548,184 shares.
(2) Registered address, organizational form and headquarters address of the Company
The registered address of the Company is No. 588 Middle Section Tianfu Avenue, High-Tech Zone,Chengdu, and its organizational form is Limited Liability Company. Its headquarters is located at No. 588,Tianfu Avenue Middle Section, High-Tech Zone, Chengdu.
(3) Nature of businesses and main operating activities of the Company
1) Business nature
The Company involved Agriculture, Forestry, livestock husbandry and Fishery. In 2016, after theCompany completed the merger of Sichuan Yongxiang Co., Ltd., Tongwei New Energy Co., Ltd. andTongwei Solar (Hefei) Co., Ltd. under the same control, it added "PV new energy business".
2) Main business activities
Main business activities: Production and sale of Tongwei brand fish feed, pig feed, poultry feed andfresh water and seawater aquaculture feed; aquaculture and seedling cultivation; production, wholesaleand retail of veterinary drugs and feed additives; slaughtering and processing fish, pig and duck food andselling live fish; production and sales of polysilicon and monocrystalline silicon, polyvinyl chloride andits series products, sodium hydroxide and ancillary products, carbide slag cement; research anddevelopment of new chemical products; production and sales of monocrystalline and multicrystallinesilicon wafers, solar cell wafers, solar cell modules, solar heat pipes, solar water heaters, water heatingsystems and solar photothermal applications; energy technology research and development; research anddevelopment of solar power generation technology and technical consultation; design and construction ofpower engineering and power system installation engineering; sales of PV equipment and providingtechnical advice; solar power generation; electricity supply; electrical installation; engineering design;science and technology promotion and application service industry; comprehensive utilization of wasteresources; environmental governance industry; wholesale and retail of commodities; rental andcommercial services; import and export industry; internet information service, etc.
(4) Names of the largest shareholder and the ultimate substantive controller
At present, the largest shareholder of the Company is Tongwei Group Co., Ltd. (hereinafter referredto as "Tongwei Group"), and the ultimate actual controller is Liu Hanyuan.
(5) Approver of financial statements
The Company's financial statements are approved by the Company's board of directors. This financialstatement was approved by the 18th meeting of the Company's 7th board of directors on April 9, 2021.
2. Scope of consolidated financial statements
√Applicable □Inapplicable
(1) The 80 first-level subsidiaries included in the consolidation scope in the current period are listedas follows:
| S/N | Name of subsidiaries | Abbreviation | Subsidiaries (Nr.) | Shareholding proportion (%) | Proportion of voting right (%) |
| 1 | Sichuan Yongxiang Co., Ltd. | Yongxiang | 5 | 100 | 100 |
| 2 | Tongwei Solar (Hefei) Co., Ltd. | Tongwei Solar (Hefei) | 10 | 100 | 100 |
| 3 | Tongwei New Energy Co., Ltd. | Tongwei New Energy | 94 | 100 | 100 |
| 4 | Chongqing Tongwei Feed Co., Ltd. | Chongqing Feed | 100 | 100 | |
| 5 | Xiamen Tongwei Feed Co., Ltd. | Xiamen Feed | 100 | 100 | |
| 6 | Yuanjiang Tongwei Feed Co., Ltd. | Yuanjiang Feed | 100 | 100 | |
| 7 | Wuhan Tongwei Feed Co., Ltd. | Wuhan Feed | 100 | 100 |
| 8 | Shashi Tongwei Feed Co., Ltd. | Shashi feed | 100 | 100 | |
| 9 | Guangdong Tongwei Feed Co., Ltd. | Guangdong Feed | 100 | 100 | |
| 10 | Shandong Tongwei Feed Co., Ltd. | Shandong Feed | 92 | 92 | |
| 11 | ZaozhuangTongwei Feed Co., Ltd. | Zaozhuang feed | 100 | 100 | |
| 12 | Suzhou Tongwei Special Feed Co., Ltd. | Suzhou Feed | 100 | 100 | |
| 13 | He'nan Tongwei Feed Co., Ltd. | Changchun Tongwei Feed Co., Ltd. | 100 | 100 | |
| 14 | Changchun Tongwei Feed Co., Ltd. | Changchun Feed | 100 | 100 | |
| 15 | Chengdu Tongwei Aquatic Products Technology Co., Ltd. | Chengdu Technology | 100 | 100 | |
| 16 | Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | Sanxin Pharmaceutical | 70 | 70 | |
| 17 | Tongwei (Hainan) Aquatic Products Co., Ltd. | Hainan Products | 100 | 100 | |
| 18 | Hainan Haiyi Aquatic Products Feed Co., Ltd. | Hainan Haiyi | 100 | 100 | |
| 19 | Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Zhuhai Haiyi | 100 | 100 | |
| 20 | Hainan Haiyi Aquatic Seed Co., Ltd. | Hainan Seed | 1 | 49.95 | 49.95 |
| 21 | Nantong Bada Feed Co., Ltd. | Nantong Bada | 2 | 100 | 100 |
| 22 | Hainan Haiyi Biotechnology Co., Ltd. | Hainan Biotechnology | 51 | 51 | |
| 23 | Nanning Tongwei Feed Co., Ltd. | Nanning Feed | 100 | 100 | |
| 24 | Tianjin Tongwei Feed Co., Ltd. | Tianjin Feed | 100 | 100 | |
| 25 | Huai’an Tongwei Feed Co., Ltd. | Huai’an Feed | 100 | 100 | |
| 26 | Jieyang Tongwei Feed Co., Ltd. | Jieyang Feed | 100 | 100 | |
| 27 | Chengdu Ronglai Tongwei Feed Co., Ltd. | Ronglai Feed | 80 | 80 | |
| 28 | Yangzhou Tongwei Feed Co., Ltd. | Yangzhou Feed | 100 | 100 | |
| 29 | Langfang Tongwei Feed Co., Ltd. | Langfang Feed | 100 | 100 | |
| 30 | Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Animal Nutrition | 100 | 100 | |
| 31 | Panzhihua Tongwei Feed Co., Ltd. | Panzhihua Tongwei | 100 | 100 | |
| 32 | Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Foshan Technology | 100 | 100 | |
| 33 | Tongwei Agricultural Financing Guarantee Co., Ltd. | Tongwei Guarantee | 100 | 100 | |
| 34 | Tongwei (Chengdu) Agriculture Investment Holding Co., Ltd. | Agriculture Holding | 100 | 100 | |
| 35 | Sichuan Tongguang Construction Engineering Co., Ltd. | Tongguang Construction | 100 | 100 | |
| 36 | Chongqing Changshou Tongwei Feed Co., Ltd. | Changshou Feed | 100 | 100 | |
| 37 | Qianxi Tongwei Feed Co., Ltd. | Qianxi Feed | 100 | 100 | |
| 38 | Lianyungang Tongwei Feed Co., Ltd. | Lianyungang Feed | 100 | 100 | |
| 39 | Chengdu Tongwei Automation Equipment Co., Ltd. | Chengdu Automation | 80 | 80 | |
| 40 | Foshan Tongwei Feed Co., Ltd. | Foshan Feed | 100 | 100 | |
| 41 | Zibo Tongwei Feed Co., Ltd. | Zibo Feed | 76 | 76 | |
| 42 | Tongwei (Dafeng) Feed Co., Ltd. | Dafeng Feed | 51 | 51 | |
| 43 | Kunming Tongwei Feed Co., Ltd. | Kunming Feed | 100 | 100 | |
| 44 | Zibo Tongwei Food Co., Ltd. | Zibo Food | 100 | 100 | |
| 45 | Foshan Gaoming Tongwei Feed Co., Ltd. | Gaoming Feed | 100 | 100 | |
| 46 | Tianmen Tongwei Biotechnology Co., Ltd. | Tianmen Biotechnology | 100 | 100 | |
| 47 | Binyang Tongwei Feed Co., Ltd. | Binyang Feed | 100 | 100 | |
| 48 | Fuzhou Tongwei Willianm Feed Co., Ltd. | Fuzhou Feed | 65 | 65 | |
| 49 | Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan Feed | 100 | 100 | |
| 50 | Harbin Tongwei Feed Co., Ltd. | Harbin Feed | 100 | 100 | |
| 51 | Nanjing Tongwei Aquatic Products Technology Co., Ltd. | Nanjing Technology | 100 | 100 | |
| 52 | Tongwei Holdings PTE. Ltd. in Singapore | Singapore Holdings | 8 | 100 | 100 |
| 53 | Tongwei Industrial (Tibet) Co., Ltd. | Tibet Industrial | 1 | 100 | 100 |
| 54 | Chizhou Tongwei Feed Co., Ltd. | Chizhou Feed | 100 | 100 | |
| 55 | Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu Seed | 100 | 100 | |
| 56 | Hengshui Tongwei Feed Co., Ltd. | Hengshui Feed | 100 | 100 | |
| 57 | Qingyuan Tongwei Feed Co., Ltd. | Qingyuan Feed | 100 | 100 | |
| 58 | Honghu Tongwei Feed Co., Ltd. | Honghu Feed | 100 | 100 | |
| 59 | Sichuan Tongwei Food Co., Ltd. | Sichuan Food | 10 | 80 | 80 |
| 60 | Hanshou Tongwei Feed Co., Ltd. | Hanshou Tongwei | 100 | 100 | |
| 61 | Tianmen Tongwei Aquatic Products Technology Co., Ltd. | Tianmen Technology | 100 | 100 | |
| 62 | Sichuan Fishery-PV Wulian Technology Co., Ltd. | Fishery-PV Wulian | 60 | 60 | |
| 63 | Sichuan Willtest Technology Co., Ltd. | Sichuan Willtest | 1 | 83.04 | 83.04 |
| 64 | Wuxi Tongwei Biotechnology Co., Ltd. | Wuxi Biotechnology | 100 | 100 | |
| 65 | Tongwei New Energy Engineering Design (Sichuan) Co., Ltd. | New Energy Design | 100 | 100 | |
| 66 | Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang Solar | 100 | 100 | |
| 67 | Sichuan Tongwei Feed Co., Ltd. | Sichuan Tongwei | 100 | 100 | |
| 68 | Sichuan Yongxiang New Material Co., Ltd. | Yongxiang New Material | 1 | 100 | 100 |
| 69 | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | Qingdao Hairen | 51 | 51 | |
| 70 | Nanning Tongwei Biotechnology Co., Ltd. | Nanning Biotechnology | 100 | 100 | |
| 71 | Nanchang Tongwei Biotechnology Co., Ltd. | Yangjiang Haiyi Biotechnology Co., Ltd. | 80 | 80 | |
| 72 | Yangjiang Haiyi Biotechnology Co., Ltd. | Yangjiang Haiyi | 100 | 100 | |
| 73 | Gongan County Tongwei Aquatic Products Technology Co., Ltd. | Gongan Technology | 100 | 100 | |
| 74 | Zhanjiang Haixianfeng Bio-tech Co., Ltd. | Zhanjiang Haixianfeng | 51 | 51 | |
| 75 | Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. | Xintaifeng Farming | 100 | 100 | |
| 76 | Sichuan Chunyuan Ecological Farming Co., Ltd. | Chunyuan Farming | 100 | 100 | |
| 77 | Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu Fishery-PV Technology | 100 | 100 | |
| 78 | Maoming Tongwei Biotechnology Co., Ltd. | Maoming Biotechnology | 100 | 100 | |
| 79 | Maoming Tongwei Biotechnology Co., Ltd. | Hainan Biotechnology | 100 | 100 | |
| 80 | Guangdong Tongwei Biotechnology Co., Ltd. | Guangdong Biotechnology | 100 | 100 | |
| Total | 133 |
| Name of subsidiaries | Reason for change |
| Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Newly established due to investment |
| Maoming Tongwei Biotechnology Co., Ltd. | Newly established due to investment |
| Maoming Tongwei Biotechnology Co., Ltd. | Newly established due to investment |
| Guangdong Tongwei Biotechnology Co., Ltd. | Newly established due to investment |
| Name of subsidiaries | Reason for change |
| Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. | Cancelled |
| Tongwei (Chengdu) Agriculture Investment Holding Co., Ltd. | Cancelled |
| Suzhou Tongwei Special Feed Co., Ltd. | Cancelled |
| Hainan Haiyi Biotechnology Co., Ltd. | Cancelled |
| Gongan County Tongwei Aquatic Products Technology | Cancelled |
Co., Ltd.
(4) First-level subsidiaries that have not been absorbed, merged or disposed of in the current periodPlease refer to "Change of Consolidation Scope" and "Rights and Interests in Other Entities" for details.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The Company's financial statements were prepared based on the assumption of going concern andactual transactions and events, in accordance with the Accounting Standards for Business Enterprisesissued by the Ministry of Finance and its supporting guidelines as well as explanations (hereinaftercollectively referred to as "ASBE") and the disclosure provisions in the Rules for the CompilationSubmission of Information Disclosure by Companies That Offer Securities to the Public (No. 15)—General Rules on the Financial Statements revised by CSRC in 2014.
2. Going concern
√Applicable □Inapplicable
The Company's business activities have sufficient financial support. Based on the informationcurrently obtained from the Company and considering the macro-policy risks, market operation risks,current or long-term profitability, solvency and financial resources support of the enterprise and otherfactors, the Company believes that there are no matters or situations that have serious doubts about theCompany's going concern ability in the next 12 months, and it is reasonable to prepare financial statementson the basis of going concern.
V. Significant Accounting Policies and Accounting EstimatesNotes to the specific accounting policies and accounting estimates:
□Applicable √Inapplicable
1. Declaration on compliance with ASBE
The financial statements and notes prepared by the Company meet the requirements of ASBE, trulyand fully reflect its financial status on December 31, 2020 and relevant information such as businessperformance and cash flow in 2020. Additionally, all major aspects of the Company’s financial statementscomply with the requirements for the disclosure of the financial statements and the notes in the Rules forthe Compilation and Submission of Information Disclosure by Companies That Offer Securities to thePublic (No. 15) — General Rules on the Financial Statements revised by CSRC in 2014.
2. Accounting period
The accounting year of the Company runs from January 1 to December 31.
3. Business cycle
√Applicable □Inapplicable
The normal business cycle refers to the period from the time when the Company buys assets forprocessing to the time when such assets become cash or cash equivalents. For the Company, 12months/year constitute a business cycle and this business cycle is used as a criterion for determining theliquidity of assets and liabilities.
4. Recording currency
The Company takes RMB as its recording currency.
5. Accounting for business merger under common control and different control
√Applicable □Inapplicable
Business merger refers to a transaction or event that two or more individual enterprises form into areporting entity through merging. The merger is divided into business merger under common control andbusiness merger under different controls.
(1) Business merger under common control
A business merger under common control is a business merger in which all of the merging companiesare ultimately controlled by the same party or parties both before and after the business merger, and thatcontrol is not transitory. In a business merger under common control, the party which obtains control ofother merging companies on the merger date is the merging party, the other merging companies are themerged parties. Merger date refers to the date on which the merging party actually obtains control rightson the merged party.The initial investment cost of long-term equity investments is taken to be the share acquired of theowners' equity of the merged party, at its book value in the consolidated financial statements of the ultimatecontrolling party. The balance between the net book value of assets acquired by the merging party andbook value of the paid merging consideration (or total face value of issued shares) shall be used to adjustthe capital reserves (share premium); where capital reserves (share premium) cannot be charged off,retained earnings shall be adjusted.Direct expenses incurred to the merging party during the business merger shall be included in thecurrent profit or loss when incurred.
(2) Business merger under different control
A business merger not under common control is a business merger in which the merging companiesare not ultimately controlled by the same party or the same parties both before and after the businessmerger. In a business merger under different control, the party that acquires the right of controlling othercompanies involved in the merger on acquisition date is the acquirer, and other enterprises involved in themerger are the acquirees. Acquisition date refers to the date on which the acquirer actually obtains controlrights on the acquiree.
In a business merger under different control, the merger cost consists of assets paid, liabilitiesincurred or borne and the fair value of issued equity securities paid by the acquirer on the acquisition dateto obtain control rights on the acquiree. Intermediation costs such as audit, legal service, assessment andconsultation fees and other general and administrative expenses shall be included in the current profit orloss when incurred. The transaction expenses of equity securities or debt securities issued by the acquireras merging consideration will be included in the initially recognized amount of equity securities or debtsecurities. Involved contingent consideration must be included in merger cost at the fair value at theacquisition date; where the contingent consideration is to be adjusted due to new or further evidence forexisting conditions at acquisition date within 12 months after acquisition date, consolidated goodwill mustbe correspondingly adjusted. The merger cost incurred to the acquirer and net identifiable assets obtainedduring business merger must be measured as per the fair value at the acquisition date. Where the mergercost is greater than the fair value of net identifiable assets obtained on the acquisition date from theacquiree, the balance between them must be recognized as goodwill. Where the merger cost is less thanthe fair value of net identifiable assets obtained from the acquiree during business merger, the fair valueand merger cost of various identifiable assets, liabilities and contingent liabilities from the acquiree mustbe rechecked. Where the merger cost is, after recheck, still less than the fair value of net identifiable assetsobtained from the acquiree during business merger, the balance must be included in the current profit orloss.
Where the temporary deductible difference obtained by the acquirer from the acquiree is notrecognized due to its non-compliance with deferred income tax assets recognition criteria at the acquisitiondate, new or further information obtained within 12 months since the acquisition date reveals that relevantconditions were present at the acquisition date, and the economic benefit brought by temporary deductibledifference at the acquisition date can be realized for expected acquiree, relevant deferred income tax assetsmust be recognized, business reputation be decreased (where the business reputation is not sufficient tooffset, the balance must be recognized as current profit and loss); except aforementioned conditions,deferred income tax assets which are confirmed to be linked with business merger must be included incurrent profit and loss.
As to business merger under different control that was accomplished step by step through multipletransactions, judge whether the multiple transactions belong to “package deal” in accordance withjudgment standard of “package deal” stipulated in Notice of the Ministry of Finance on IssuingInterpretation No. 5 of the Accounting Standards for Business Enterprises issued by Ministry of Finance(CK [2012] No. 19) and Article 51 of Accounting Standards for Business Enterprises No. 33 -Consolidated Financial Statements (refer to "preparation method of consolidated financial statements").For transactions that belong to “package deal”, refer to “Long-term equity investment” to make accountingtreatment; for transactions that do not belong to “package deal”, distinguish individual financial statementand consolidated financial statement to make relevant accounting treatment.
In individual financial statements, the sum of book value of the equity investment from the acquireeheld before the acquisition date and the newly added investment cost on the acquisition date shall be takenas initial investment costs of the investment; for acquiree’s equity held before the acquisition date thatinvolve other comprehensive incomes, the investment and its related other comprehensive incomes shallbe subject to accounting treatment using the same basis on which the acquiree directly disposes relatedassets or liabilities (namely, except for the corresponding shares for the changes arising from the acquiree’sre-measurement of net liabilities or net assets of defined benefit plan calculated by equity method, the restwill be transferred to investment income of current period at the acquisition date.).In the consolidated financial statements, acquiree’s equity held prior to the acquisition date must bere-measured as per its fair value at the acquisition date, and the balance between fair value and book valuemust be included in the investment income of current period; for acquiree’s equity held prior to theacquisition date involving other comprehensive incomes, the incomes shall be subject to accountingtreatment using the same basis on which the acquiree directly disposes relevant assets or liabilities (namely,except for the corresponding shares for the changes arising from the acquiree’s re-measurement of netliabilities or net assets of defined benefit plan calculated by equity method, the rest will be transferred toinvestment income of current period at the acquisition date.).
6. Preparation method of consolidated financial statements
√Applicable □Inapplicable
(1) Principles for determining consolidation scope
The consolidation scope of consolidated financial statements is determined on the basis of control.Control means the power of the Company over the investee, and the investor can enjoy variable returnsthrough participating in related activities of the investee and is able to influence its amount of return withthe power over the investee. The consolidation scope consists of the Company and all its subsidiaries."Subsidiaries" refer to the entities under control of the Company.
(2) Preparation method of consolidated financial statements
The Company shall incorporate the subsidiaries into the scope of consolidation since its acquisitionof the actual control over the subsidiaries' net assets and rights of management and decision-making andexclude it from the scope of consolidation when losing such control over the subsidiaries. For subsidiarieswent through settlement, their financial performance and cash flows before the disposal date have beenproperly included in the consolidated income statement and consolidated cash flow statement; while forsubsidiaries going through settlement, the opening balance in the consolidated balance sheet is not adjusted.For subsidiaries acquired through business merger under different control, their financial performance andcash flows after the acquisition date have been properly included in the consolidated income statementand consolidated cash flow statement; in addition, the beginning balance and comparative amount in theconsolidated financial statements are not adjusted. For subsidiaries acquired through business mergerunder common control and merged parties, their financial performance and cash flow from the opening ofthe current period of business merger to the merging date have been properly included in the consolidatedincome statement and consolidated cash flow statement; meanwhile, comparative amount in theconsolidated financial statements are adjusted.
During compilation of consolidated financial statements, in the event that accounting policy oraccounting period adopted by the subsidiaries are not in line with those of the Company, the financialstatements of the subsidiaries shall be adjusted according to the accounting policy and accounting periodof the Company. For subsidiaries acquired through business merger under different control, their financialstatements shall be adjusted based on the fair value of net identifiable assets on the acquisition date.
Balance of major dealings and transactions and unrealized profit of the Company shall be offsetduring preparation of the consolidated financial statements.
The portion of stockholders equity and that of current net profit or loss of subsidiaries which are notowned by the Company must be respectively recognized as minority equity and minority interest incomeand separately listed under the shareholders’ equity and net income in the consolidated financial statements.The portion current net profit or loss of the subsidiaries which belongs to minority equity shall be presentedas “Minority profit and loss” in the Net Profit column in the Consolidated Income Statement. If the lossof the subsidiaries borne by minority shareholders exceeds the amount of shareholders' equity share in thesubsidiaries at the beginning of the current period, the excess shall write down the minority equity.
In the event the Group loses the right of control over its subsidiaries due to disposal of partial equityinvestment or other reasons, the residual equity must be recalculated according to its fair value on the day
when the Group loses the right of control. The difference by using the sum of value received from disposalof equity and fair value of the residual equity to deduct share in net assets continually counted from theacquisition date of the original subsidiaries (calculated as per original shareholding proportion) shall berecorded in the investment income of the current period without the right of control. Other comprehensiveincomes in connection with equity investment of the original subsidiaries shall be subject to accountingtreatment using the same basis on which the acquiree directly disposes relevant assets or liabilities whenthe right of control is lost (namely, except for the changes arising from the original subsidiaries’-measurement of net liabilities or net assets of defined benefit plan, the rest will be transferred to investmentincome of current period). Subsequently, the residual equity shall be measured as per the AccountingStandards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting Standards forBusiness Enterprises No.22 - Financial Instrument Recognition and Measurement or other relevantregulations. See “Long-term equity investments” or “Financial instrument” for details.
For the various transactions for step-by-step equity disposal by the Company that lead to the loss ofcontrolling power over the subsidiaries, it is necessary to distinguish whether the transactions belong tothe package deal. When the terms, conditions and economic impacts of the transactions for subsidiariesequity investment disposal conform to one or more following situations, then it indicates that thetransactions shall be subject to accounting treatment as part of the package deal:① the transactions areestablished simultaneously or at the consideration of mutual impact;② the transactions can constitute acomplete commercial result only when operating as a whole;③ the occurrence of one transaction restswith that of another one or more;④ individually, a single transaction is not economical while, whencombined with other transactions, it is economical. For those that do not belong to the package deal, thetransactions shall be subject to accounting treatment as per “disposes of the long-term equity investmentto its subsidiaries partially without losing the right of control” (refer to the “Disposal of long-term equityinvestment” for details) and “Company losses the right of control over its subsidiaries due to disposal ofpartial equity investment or other reasons” (refer to the preceding paragraph for details). For the varioustransactions belong to the package deal for equity disposal by the Group that lead to the loss of controllingpower over the subsidiaries, the transactions are subject to the accounting treatment oriented forsubsidiaries disposal and loss of controlling power; but, the difference between each disposal amount andthe corresponding subsidiaries net asset shares entitled to the disposal investment is recognized as othercomprehensive income in the consolidated financial statements, which is not transferred into the currentprofit or loss until the controlling power is lost.
7. Classification of joint operation arrangement and accounting treatment methods for joint
operations
√Applicable □Inapplicable
Joint venture arrangement refers to an arrangement jointly controlled by two or more participants.The Company, based on the rights and obligations under the joint arrangement, divides the jointarrangement into joint operation and joint venture. Joint operation refers to an arrangement that theCompany enjoys assets related to the arrangement and bears liabilities related to the arrangement. Jointventure refers to an arrangement that the Company only has the power governing net assets of thearrangement.
The Company's investment in joint venture is calculated with equity method and handled byaccounting policies described in long-term equity investment of "Long-term equity investment calculatedby equity method".
The Company, as a part of a joint operation, fully recognizes assets and liabilities held/owed aloneand assets and liabilities jointly held/owed based on its share. It fully recognizes income from selling itsshare of joint operations output, and the income from sales of jointly-produced output based on its share;it fully recognizes expenses solely incurred itself, and expenses jointly incurred based on its share.
Where the Company, as a joint party, invests or sells assets (excluding the asset constituting business,similarly hereinafter) to a joint operation, or purchase asset from a joint operation, before the said assetsare sold to a third party by joint operation, the Company shall only recognize the part of profit or lossattributable to itself and other participants in the joint operation. When any impairment specified inAccounting Standards for Business Enterprises No. 8 - Asset Impairment, occurs to said assets in thecourse of investing or selling assets to a joint operation, the Company shall recognize the full amount ofthe loss; in case of purchasing asset from a joint operation, the Company shall recognize based on its shareof the assets purchased.
8. Standards for recognition of cash and cash equivalents
The Company’s cash equivalents determined during the preparation of the cash flow statement arerecognized as investment that is short-term (generally due within three months since the acquisitiondate), highly liquid and readily convertible to a known amount of cash, and has an insignificant risk ofchanges in value.Restricted bank deposits are not regarded as cash and cash equivalents in the cash flow statement.
9. Foreign currency conversion and foreign currency statement translation
√Applicable □Inapplicable
(1) Foreign currency business accounting method:
When foreign currency business occurs, it shall be converted into standard money for bookkeepingaccording to the benchmark exchange rate published by the People's Bank of China on the actual date ofoccurrence (generally referred to as the middle rate of the foreign exchange quote price of that dayannounced by the People’s Bank of China, the same below); At the end of the period, the foreign currencymonetary items should be converted at the ending spot rate; foreign currency non-monetary itemsmeasured at historical cost should still be converted at the spot rate; the foreign currency non-monetaryitems measured at fair value should be converted at the spot rate on the date of determination of the fairvalue. For the occurred balance from conversion that is related to acquisition and construction of fixedassets and has reached the expected serviceable condition should be included in acquisition andconstruction cost of fixed assets, and that is unrelated to acquisition and construction of fixed assets andin the start-up period should be included in the administration expense, and that is unrelated to acquisitionand construction of fixed assets and in the production and operation period should be included in currentfinancial expenses.
(2) Conversion method for foreign currency financial statements:
The asset items and liability items in the balance sheet adopt the exchange rate of the balance sheetdate for conversion; the owner’s equity items adopt the exchange rate of date when the transactionsoccurred, except for the items of “undistributed profit”. Income and expense items in the income statementare converted using the approximate exchange rate of the current spot exchange rate. The differencesarising from the translation of financial statements dominated in foreign currencies by the above-mentioned method are separately listed in the “other comprehensive incomes” under the ownership rightsand interests items in the balance sheet.
Foreign currency cash flow and cash flow of overseas subsidiaries shall be converted at theapproximate exchange rate of spot rate on the cash flow date.
10. Financial instruments
√Applicable □Inapplicable
Financial instruments refer to contracts that form the financial assets of a party, and form financialliabilities or equity instruments of other parties. When the Company becomes a party to a financialinstrument, it recognizes a financial asset or liability.
(1) Classification of financial assets
Financial assets transacted in a conventional way are subject to accounting recognition andderecognition on the transaction day. Financial assets are divided into the following categories upon initialrecognition: financial assets measured at amortized cost; financial assets measured at fair value withchanges included in other comprehensive income; financial assets measured at fair value with changesincluded in current profit and loss.
Where the financial assets of the Company meet all the following conditions, they will be classifiedas financial assets measured at amortized cost:① The business mode of the Company for managing suchfinancial assets is to collect contract cash flows.② The contract of such financial assets specifies that thecash flows generated at a particular date are only for the payment of principal and interest based on theamount of outstanding principal.
Where the financial assets of the Company meet all the following conditions, they will be classifiedas financial assets measured at the fair value through other comprehensive income. ① The business modeof the Company for managing such financial assets is to collect contract cash flows and to sell the financial
assets.② The contract of such financial assets specifies that the cash flows generated at a particular dateare only for the payment of principal and interest based on the amount of outstanding principal.
The Company will classify the financial assets other than the financial assets measured at theamortized cost and the financial assets at fair value through other than comprehensive income into thefinancial assets at fair value through current profit and loss. At the time of initial recognition, if eliminatingor significantly reducing accounting mismatch, financial assets can be designated as financial assetsmeasured at fair value and whose changes are included in the profit and loss of the current period. Suchdesignation, once made, shall not be revoked.
(2) Measurement of financial assets
The financial assets and financial liabilities initially recognized by the Company are measured at thefair value. For financial assets at fair value through profit or loss, related transaction expenses shall bedirectly included in the current profit or loss; the related transaction expenses of other financial assets shallbe included in the initially recognized amount. For accounts receivable or bills receivable arising from thesale of products or the provision of services that do not include or take into account significant financingcomponents, the Company takes the consideration amount entitled to receive in expectation as the initiallyrecognized amount. Subsequent measurement of financial instruments depends on their classification.
1) Financial assets measured at amortized cost
The Company adopts the effective interest rate method for financial assets measured at amortizedcost and carries out subsequent measurement at amortized cost. Gains or losses arising on financial assetsmeasured at amortized cost that are not any hedging relationship are included in current profit and losswhen derecognized, reclassified, amortized using the effective interest method or recognized forimpairment.
2) Debt instruments investment measured at fair value with its changes included in othercomprehensive incomes
For such financial assets, follow-up measurement shall be based on fair value in the Company.Interest, impairment losses or gains and exchange gains and losses of such financial assets calculated bythe effective interest rate method are included in the profit and loss of the current period, and other gainsor losses arising therefrom are included in other comprehensive income. At the derecognition, theaccumulated gains or losses previously included in other comprehensive incomes are transferred fromthere to the current profit or loss.
3) Non-tradable equity instrument investments measured at fair value and whose changes areincluded in other comprehensive income
The Company carries out follow-up measurement of such financial assets at fair value. Except fordividends (except those that belong to the part of investment cost recovery) which are included in thecurrent profit and loss, other relevant gains or losses (including exchange gains and losses) shall beincluded in other comprehensive income, and shall not be transferred into the current profit and loss. Whenits recognition is terminated, the accumulated gains or losses previously booked into other comprehensiveincomes shall be transferred from other comprehensive incomes and recorded into retained earnings.
4) Financial assets measured at fair values and whose changes are included in current profit and loss
For financial assets measured at fair value and whose changes are included in the current profit andloss (except for those related to hedge accounting), the gains or losses resulting from changes in fair valueare included in the current profit and loss.
(3) Impairment of financial assets
Based on the expected credit loss, the Company conducts impairment accounting of financial assetsclassified as measured at amortized cost, financial assets classified as measured at fair value and whosechanges are included in other comprehensive income and recognizes loss reserves.
The Company considers reasonable and reliable information about past events, current situation andforecast of future economic situation, taking the risk of default as the weight, calculates the probabilityweighted amount of the present value of the difference between the cash flow receivable from the contractand the cash flow expected to be received, and recognizes the expected credit loss.
On each balance sheet date, the Company separately measures the expected credit loss of financialinstruments at different stages. If the credit risk of financial instruments has not increased significantlysince the initial recognition, it is in the first stage. The Company will measure the provision for lossaccording to the expected credit loss in the next 12 months. If the credit risk of a financial instrument hasincreased significantly since its initial recognition but no credit impairment has occurred, it is in the secondstage, and the Company measures the provision for loss according to the expected credit loss of theinstrument throughout its life. If a financial instrument has suffered credit impairment since its initial
recognition, it is in the third stage. The Company measures the provision for loss according to the expectedcredit loss of the instrument throughout its life.For financial instruments with low credit risk on the balance sheet date, the Company assumes thatthe credit risk has not increased significantly since the initial recognition, and measures the provision forloss according to the expected credit loss in the next 12 months.For financial instruments in the first and second stages and with low credit risk, the Companycalculates interest income according to the book balance before deducting provision for impairment andthe actual interest rate. The interest income shall be calculated according to their book balance minus theamortized cost after impairment provision and the effective interest rate for financial instruments in thethird stage.For notes receivable, accounts receivable and receivables financing arising from daily businessactivities such as selling commodities and providing labor services, regardless of whether there is anysignificant financing component, the Company measures the provision for loss based on expected creditloss over the whole duration.
For accounts receivable without objective evidence of impairment or when information of theexpected credit loss for a single financial asset cannot be evaluated at a reasonable cost, the Companydivides the accounts receivable into several portfolios according to the credit risk characteristics, calculatesthe expected credit loss on the basis of the portfolios, and determines the portfolio on the following basis:
| Classification of portfolio | Type of portfolio | Basis for portfolio determination | Accrual method of bad debt provision according to the portfolio |
| Portfolio 1 | Bills or letters of credit receivable (excluding commercial acceptance bills), prepayments, deposit receivable and deposit during the settlement period; Project construction projects that will be reimbursed and offset by project expenditures will borrow reserves funds and other receivables that have sufficient evidence to show no risk | Payment nature | No provision |
| Portfolio 2 | Accounts receivable from relevant government departments | Credit risk characteristics note 1 | Expected credit loss |
| Portfolio 3 | Accounts receivable from related parties within the scope of the company's merger, and accounts receivable from joint ventures temporarily formed due to unified transfers of operating funds participating in the company. | Payment nature | No provision |
| Portfolio 4 | Receivables other than the above | Credit risk characteristics note 2 | Expected credit loss |
| Account receivable age | Provision proportion (%) |
| Within one year | 5.00 |
| 1-2 years | 10.00 |
| 2-3 years | 50.00 |
| Over 3 years | 100.00 |
(4) Recognition basis and measurement method of financial asset transfer
Financial assets should be derecognized when any of the following conditions is met:① thecontractual right to acquire cash flow of the said financial assets is terminated;② the financial assets havebeen transferred and almost all risks and rewards from the ownership of the said financial assets aretransferred to the transferee;③ the financial assets has been transferred and the transferor waives itscontrol over the said assets, despite the enterprise has not transferred or retained any risks and rewardsfrom the ownership of the said financial assets.Where the enterprise neither transfers nor retains any risks and rewards on the financial assetownership, if the control over the financial asset is not waived, relevant financial asset shall be recognizedto the extent of continuing involvement in the transferred financial assets, and relevant liabilities shall berecognized correspondingly. “Continuing involvement in the transferred financial assets” refers to the risklevel that the Company will be faced with due to the change in value of such financial assets.If the entire transfer of the financial assets meets derecognition conditions, the difference betweenthe book value of the transferred financial asset and the sum of the consideration received due to thetransfer and the cumulative changes in fair value that has been formerly recognized in other comprehensiveincomes, is included in the current profit or loss.Where the partial transfer of the financial assets meets derecognition conditions, the book value ofthe transferred financial assets shall be amortized between the derecognized and non-derecognizedportions as per their relative fair values respectively; and the balance between the sum of the considerationfrom the transfer and the accumulative amount of changes in fair value which was previously recognizedin other comprehensive incomes of the derecognized portion and aforementioned book value shall beincluded in the current profit or loss.For non-transactional equity instruments which are designated to be measured at fair value with theirchanges included in other comprehensive income. If the investment termination is recognized, theaccumulated gains or losses previously included in other comprehensive income will be transferred outfrom other comprehensive income and included in retained earnings.
(5) Classification and measurement of financial liabilities
1) Financial liabilities measured at fair value with their changes included in current profit and loss
Financial liabilities measured at fair value with their changes included in current profit and lossinclude transactional financial liabilities (including the derivative instruments which belong to financialliabilities) and financial liabilities designated to be measured at fair value with their changes included incurrent profit and loss. The financial liabilities which are measured at fair value and whose changes arerecognized in the current period profit or loss are subsequently measured at fair value. The gains or lossesresulting from the changes in fair value and the dividends and interest expenses related to such financialliabilities are recorded in the current period profit or loss.
2) Other financial liabilities
If derivative financial liabilities have no quotation in an active market and they are linked with equityinstruments which cannot be reliably measured for fair value and settled by delivering such equityinstruments, they are measured subsequently at cost. Other financial liabilities are subsequently measuredat amortized cost by using the effective interest method. Gains or losses resulting from derecognition oramortization is included in current profit and loss.
(6) Derecognition of financial liabilities
When the current obligations of financial liabilities have been wholly or partially released, suchfinancial liabilities or part of them can be derecognized. The Company (the Debtor) and the Creditor signan agreement in which the existing financial liabilities are replaced by means of undertaking new financialliabilities; and the contractual terms of the new financial liabilities and those of existing financial liabilitiesare different in essence. Therefore, the existing financial liabilities shall be derecognized and the newfinancial liabilities shall be recognized.
If the financial liabilities, are entirely or the partially derecognized, the difference between the bookvalue of the portion terminated in recognition and the consideration afforded (including the non-cash assetstransferred or the new financial liabilities assumed) is recognized into current profit or loss.
(7) Offset of financial assets and financial liabilities
When the Group is entitled to offset the recognized financial assets and financial liabilities, this legalright is currently enforceable, and meanwhile the Group intends to either settle on the net basis or realizethe financial assets and repay the financial liabilities simultaneously, financial assets and financialliabilities are presented in the balance sheet with the amount obtained after mutually offsetting. Besides,
financial assets and financial liabilities are presented separately in the balance sheet and are not mutuallyoffset.
(8) Determining fair value of financial instruments
Fair value refers to the price to be received for sale of an asset or to be paid for transfer of a liabilityby market participants in the orderly transaction on the measurement date. When a financial instrumenthas active market, the Company uses the quotation in the active market to recognize the fair value. Thequotation in the active market refers to the price to be readily and regularly obtained from the exchange,broker, industry association, pricing service agency and the like and represents the actual markettransaction price in a fair deal. When a financial instrument does not have active market, the Companyuses the valuation techniques to recognize the fair value. Valuation techniques include reference to theprices used by the well-briefed and willing-to-transact parties in the latest market transactions, referenceto the current fair values of other financial instruments similar in nature, discounted cash flow techniqueand option pricing models.
11. Notes receivable
Recognition method and accounting treatment of expected credit loss of notes receivable
√Applicable □Inapplicable
Notes receivable refer to banker’s acceptance bill, commercial acceptance bills and letters of creditthat are held until maturity to recover principal and interest. Commercial acceptance bills use the samemethod as accounts receivable to accrue bad debt reserves. See "Financial Instruments" for details.
12. Accounts receivable
Recognition method and accounting treatment of expected credit loss of accounts receivable
√Applicable □Inapplicable
See "Financial Instruments" for details.
13. Receivables financing
√Applicable □Inapplicable
Receivable financing refers to banker's acceptance bill received by the company for the purpose ofrecovering principal and interest at maturity, endorsement transfer and bank discount. If the remainingterm of a banker's acceptance bill is short and the book balance is close to the fair value, the book valueshall be taken as its fair value. See "Financial Instruments" for details.
14. Other receivables
Recognition method and accounting treatment of expected credit loss of other receivables
√Applicable □Inapplicable
See "Financial Instruments" for details.
15. Inventories
√Applicable □Inapplicable
(1) Classification of inventories
Classification of inventories: raw materials, packaging materials, in-process products, inventorygoods, goods in transit, turnover materials (including packaging materials, low-value consumables,scaffolding of construction enterprises, etc.), consigned goods, issued goods, consigned processed goods,consumable biological assets, engineering construction, etc.
(2) Pricing method for sent out inventory
Inventories are priced at the actual cost at the time of acquisition. Inventory collection and issueexcept revolving materials shall be accounted for according to the weighted average method.
(3) Basis for determining the inventory’s net realizable value and drawing methods for provision forobsolete inventories
At the end of the year, the inventories shall be valued by the lower one between cost and net realizablevalue. If the inventory cost is greater than the balance of net realizable value, provision for inventoryfalling price shall be withdrawn and included in current profit and loss. As to inventories related to theseries produced and sold in the same area which have similar purposes or final application and are hard to
separate from other items, the provision can be drawn by combination; as to inventories large in quantitiesand low in price, the provision is drawn by classification.
For material held for production, if the net realizable value of the finished product is higher than thecost, the material shall be measured with the cost; if the reduction of the material price indicates that thenet realizable value of the finished product is lower than the cost, the material shall be measured with thenet realizable value.
(4) Inventory system
The perpetual inventory system is applied to inventories.
(5) Amortization method for revolving materials
When the revolving materials (low-value consumables) are collected and used, the 50%-50%amortization method shall be adopted for the unit value above RMB 500 and one-time amortization forthe unit value below RMB 500. Tongwei Solar (Hefei) Co., Ltd., a wholly-owned subsidiary of theCompany, and its subsidiaries' low-value consumables are amortized at one time when they are collected.The impact is small, and the amount of impact is difficult to calculate accurately. It has not been adjustedin the consolidated statement.
16. Contract assets
(1). Recognition methods and standards of contract assets
√Applicable □Inapplicable
The Company considers that the customer has not yet paid the contract consideration, but thecompany has fulfilled its performance obligations in accordance with the contract, and is notunconditionally (that is, only depending on the passage of time) right to collect payments from thecustomer, which is listed as contract assets in the balance sheet. Contract assets and contract liabilitiesunder the same contract are listed in net amount, and contract assets and contract liabilities under differentcontracts are not offset.
(2). Recognition method and accounting treatment method of contract assets' expected credit loss
√Applicable □Inapplicable
See "Financial Instruments" for details.
17. Held-for-sale assets
√Applicable □Inapplicable
Where the Company recovers its book value mainly through the sales (including the exchange ofnon-monetary assets of commercial nature, similarly hereinafter) other than the continuous use of a non-current asset or disposal group, the non-current asset or disposal group shall be classified as held-for-sale.
Non-current assets or disposal groups classified as held for sale shall meet the following conditions:
(1) Based on the practice of selling such assets or disposal groups in similar transactions, those canbe sold immediately under current conditions;
(2) Their sales are very likely to happen, that is, the Company has already made a resolution on asales plan and obtained a certain purchase commitment and their sales are expected to be completed withinone year. The relevant approval has been obtained from relevant authorities of the Company or regulatorsfor those available for sale as required by the relevant regulations.
The Company measures the non-current assets or disposal group held for sale at the book value andnet value of the fair value minus the selling expenses. If the book value is higher than the net amount offair value minus selling expenses, the net amount of fair value minus selling expenses shall be reducedfrom the book value to the net amount of fair value. The reduced amount shall be recognized as an assetimpairment loss and included in the current profit and loss. At the same time, provision for impairment ofassets held for sale shall be made. If the net amount obtained by deducting the selling expenses from thefair value of non-current assets or disposal groups held for sale on the subsequent balance sheet dateincreases, the previous write-down amount shall be recovered and reversed from the asset impairment lossrecognized after being classified as the held-for-sale assets, and the reversed amount shall be included inthe current profit or loss. The book value of goodwill in the disposal group held for sale that has beenoffset and the impairment loss of assets recognized before the non-current assets held for sale are classifiedas held for sale shall not be reversed.
No depreciation or amortization is provided for non-current assets held for sale or non-current assetsin the disposal group. The interest of liabilities and other expenses in the disposal group held for sale shallbe recognized continuously.When non-current assets or disposal groups are no longer classified as held for sale because they nolonger meet the classification criteria for held for sale categories, and non-current assets are removed fromthe held for sale disposal groups, they shall be measured according to the lower of the followings:
(1) The book value before being classified as held for sale, adjusted according to depreciation,amortization or impairment that should have been recognized if it had not been classified as held for sale;
(2) Recoverable amount.
18. Debt investment
(1). Recognition method and accounting treatment of expected credit loss of debt investment
□Applicable √Inapplicable
19. Investment in other debentures
(1). Recognition method and accounting treatment of expected credit loss of other debt investments
□Applicable √Inapplicable
20. Long-term receivables
(1). Recognition method and accounting treatment of expected credit loss of long-term receivables
□Applicable √Inapplicable
21. Long-term equity investments
√Applicable □Inapplicable
The long-term equity investments of the Company refers that investors control the investees's equityinvestment or significantly influence the investees, and the equity investments of the joint venture.
(1) Determination of investment cost
Long-term equity investments forming in business merger: as to long-term equity investmentsforming in merger of enterprises under common control, the portion of book value in the consolidatedfinancial statement of the final controlling party based on the shareholder's equity of the merged party onthe merger date shall be taken as the initial capitalized costs. As to that forming in merger of corporationsunder different control, the merger costs consist of assets paid, liabilities incurred or undertaken and fairvalue of equity securities issued by the purchaser. Intermediation costs such as audit, legal service andassessment and consultation and other administration costs shall be included in current profit and losswhen incurred during business merger. The transaction expenses of equity securities or debt securitiesissued as merger consideration by the purchaser shall be included in the initially recognized amountthereof.
Other equity investment other than that forming in business merger shall be calculated initially as percosts. According to acquiring ways of long-term equity investment, the costs shall be determined as percash purchasing price actually paid by the Company, the fair value of equity securities issued by theCompany, value agreed in investment contract or agreement, fair or book values of exchanged assets innon-monetary asset exchanging, fair value of the long-term equity investment itself, and other ways.Expenses, taxes and other necessary expenditures directly related to the acquisition of the long-term equityinvestments shall be included in the investment cost.
(2) Methods of subsequent measurement and recognition of profit and loss
Long-term equity investment having common control (except for joint operation) or significantinfluence on the investee shall be calculated with the equity method. In addition, long-term equityinvestments, regarding which the Company can exercise control on the investee, are accounted for underthe cost method.
① Long-term equity investment calculated by using cost method
When calculated by cost method, the long-term equity investment will be valued as per initialinvestment costs. Except the declared but not released cash dividend or profit which is included in actualamount or consideration paid for acquiring investment, the current investment profit will be determinedas per the cash dividend or profit which is declared to release in the investee.
② Long-term equity investments calculated by equity method
For long-term equity investments calculated by the equity method, where their initial investmentcosts exceed the share of the fair value of the investee’s identifiable net assets at the time of the investment,the initial investment costs of the long-term equity investment are not adjusted; where their initialinvestment costs are less than the share of the fair value of the investee’s identifiable net assets at the timeof the investment, the balance shall be included in the current profit or loss and the costs of the long-termequity investment are adjusted accordingly.
When calculated by equity method, the current investment profit or loss shall be the portion of thenet profit or loss of the investee in the current year to be enjoyed or shared. When determining the portionto enjoy in the investee, the Company will adjust the net profit of the investee based on the fair value ofidentifiable assets in the investee during acquiring of investment, and accounting policies and period ofthe Company. The internal trading profit and loss incurred but not realized between the Group and jointventure/cooperative enterprise will be offset by the portion belonging to the Group as per shareholdingratio and then the investment profit and loss will be determined accordingly. But internal transaction profitor loss incurred but not realized between the Company and the investee which belong to impairment lossof transferred assets as per the Accounting Standards for Business Enterprises No. 8 - Asset Impairment,shall not be offset. Other comprehensive income of the investee shall be recognized as othercomprehensive income by corresponding adjustment of the book value of the long-term equity investment.For other changes of the owner's equity except net profit and loss of interested entities, othercomprehensive profit and profit distribution in investee, the book value of long-term equity investmentshould be adjusted and included in the shareholders' equity. In the subsequent disposal of the long-termequity investment, the amount included in the shareholders' equity shall be transferred to the investmentincome in proportion or in full.
When determining the net loss occurring in the Investee to share, the long-term equity of the netinvestment in the Investee shall be written off by the book value of the long-term equity investment andother essential parts till the equity is nil. In addition, if the Company has obligation to bear extra loss ofthe investee, the estimated liabilities shall be recognized by the estimated obligation and included in thecurrent investment loss. When the investees realize net profit later, the Company will recover the sharingamount of recognized profit after the sharing amount offsets the unrecognized sharing loss.
③ Purchase of minority share holding
When consolidated financial statements are prepared, the capital reserves are adjusted by offsettingthe difference between the newly increased long-term equity investment from purchase of minorityholding and the net asset portion of the subsidiaries to share which is continuously calculated sinceacquisition date (or merger date) as per newly increased holding ratio; where the capital reserves are notsufficient to be offset, the retained earnings shall be adjusted.
④ Disposal of long-term equity investment
In consolidated financial statements, the parent company disposes the long-term equity investmentto its subsidiaries partially without losing the right of control. The difference between the disposal amountand the net assets enjoyed in the subsidiaries corresponding to disposal of long-term equity is included inthe shareholders' equity; if the parent company loses its control power to subsidiaries because of disposalof the long-term equity investment in the subsidiaries, the disposal shall be dealt with by relevantaccounting policies stated in “Method for preparation of consolidated financial statements”.
As for the disposal of the long-term equity investment under other circumstances, the differencebetween the book value and the actual purchase price will be included in the current profit and loss; forthe long-term equity investment calculated by equity method, other comprehensive income originallyrecorded in the stockholder's equity is subject to accounting treatment in proportion on the same basis asthe investee directly disposing related assets or liabilities. For the remaining equity, it will be recognizedas long-term equity investment or other relevant financial assets according to its book value and measuredsubsequently in the light of above-mentioned accounting policies of long-term equity investment orfinancial assets. If the remaining equity will be measured with equity method instead of cost method, itwill be retroactively adjusted in accordance with relevant stipulations.
(3) Basis for determining existence of jointly control or significant influence over investees
Control refers to the power of the investor over the investee, the exposure of the investor to variablereturns by participating in related activities of the investee and the ability to use the power of the investorover the investee to influence the amount of the investor's returns. Common control refers to the sharingof control over certain arrangement under related agreements, and related activities of the arrangementcan be determined only when the unanimous consent of the parties sharing the control is obtained. Material
influence refers to the situation that a company has power to participate in making financial and operatingdecisions of an enterprise, but cannot control or jointly control with other parties over the formulation ofthese policies. In determining whether the control or significant influence can be imposed on the investee,such potential factors concerning voting rights as the current convertible bonds and current executablewarrants of both the investor and the invested entity have been considered.
(4) Impairment test methods and drawing methods for impairment provisionThe Company checks whether there are signs of possible asset impairment for the long-term equityinvestment at every balance sheet date. If any evidence shows that there is possible asset impairment, therecoverable amount thereof will be estimated. If the recoverable value of the asset is less than its carryingamount, the impairment provision is provided according to the balance and included in current profit orloss.
Once any impairment loss of long-term equity investment is recognized, it will not be reversed in thefuture accounting period.
22. Investment real estate
(1). If measured at cost:
Depreciation or amortization method
Investment property is property held to earn rentals or for capital appreciation or for both. It includesa land use right that is leased out; a land use right held for transfer upon capital appreciation; and a buildingthat is leased out.
1) Initial measurement
When the Company is able to obtain rental income or value-added income related to investmentreal estate and the cost of investment real estate can be measured reliably, the Company will initiallymeasure it according to the actual expenditure of purchase or construction:
The cost of outsourcing investment real estate, including the purchase price and relevant taxes andfees directly attributable to the asset;
The cost of self-built investment property includes all the necessary expenses for constructing theasset to achieve the intended usable status;
The cost of investment property acquired by other methods shall be determined as per regulationsof relevant accounting standards.
2) Subsequent measurement
In general, the Company adopts the cost model to carry out subsequent measurement on thesubsequent expenditure of investment real estate. Depreciation or amortization shall be accrued forinvestment real estate according to the Company's accounting policies for fixed assets or intangibleassets.
Where there is conclusive evidence that the fair value of the investment properties can be obtainedcontinuously and reliably, in principle, use the fair value model to measure the investment propertiessubsequently. When using the fair value model for measurement, the Company does not drawdepreciation for or amortize investment properties. It also adjusts its book value based on the fair valueof investment properties on the balance sheet date and includes the difference between the fair value andthe original book value in current profit and loss.
3) When the Company changes the use of investment real estate, it will transfer the relevantinvestment real estate to other assets.
23. Fixed assets
(1). Recognition conditions
√Applicable □Inapplicable
Fixed assets refer to houses, buildings, machinery and equipment, means of transportation and othertools and appliances related to production and operation held by the Company for the purpose of producingcommodities, providing labor services, leasing or operation management with a service life of more thanone year. Only when the relevant economic benefits in connection to such fixed assets are likely to flowinto the enterprise and their costs can be reliably measured, the fixed assets can be recognized.
The leased fixed assets meet the finance lease conditions, and the company shall recognize andpresent it as fixed assets.
(2). Depreciation method
√Applicable □Inapplicable
| Category | Depreciation method | Depreciation life (year) | Residual rate | Annual depreciation rate |
| Houses and buildings | Straight-line method | 5—35 | 5% | 19%—2.71% |
| Where: office building | Straight-line method | 35 | 5% | 2.71% |
| Houses and buildings for PV cell and module production | Straight-line method | 30 | 5% | 3.17% |
| Simple building | Straight-line method | 5 | 5% | 19% |
| Other houses and buildings | Straight-line method | 15—20 | 5% | 6.33%—4.75% |
| Privatized land abroad | Non-amortization | Long-term | ||
| Machinery equipment | Straight-line method | 5—12 | 5% | 19%—7.92% |
| Where: chemical equipment | Straight-line method | 12 | 5% | 7.92% |
| Cell processing equipment | Straight-line method | 10 | 5% | 9.5% |
| Feed equipment | Straight-line method | 8—10 | 5% | 11.875%—9.5% |
| Food processing equipment | Straight-line method | 8—10 | 5% | 11.875%—9.5% |
| Electronic equipment | Straight-line method | 5 | 5% | 19% |
| PV power generation equipment | Straight-line method | 25 | 5% | 3.8% |
| Transportation equipment | Straight-line method | 4—5 | 5% | 23.75%—19% |
| Office equipment | Straight-line method | 5 | 5% | 19% |
use but has not yet completed final accounts, it shall be valued and transferred to fixed assets according tothe data such as construction budget, construction cost or actual cost of construction, and depreciationshall be accrued. After the completion of the final accounts, the original valuation and drawn depreciationshall be adjusted according to the final accounts.On the balance sheet date, construction in progress is priced according to the lower of book value andrecoverable amount.
(2) Provision for impairment of construction in progress
In case of one or several of the following circumstances, the Company shall make provision forimpairment of construction in progress based on the difference between the recoverable amount at the endof the construction in progress and its book value. Once recognized, the impairment loss of assets shallnot be reversed in future accounting periods.
① The construction has been suspended for a long time and will not be restarted within three years;
② The construction in progress has fallen behind both functionally and technologically, and it willbring great uncertainties to the Company's economic benefit;
③ Other circumstances sufficient to prove that impairment has occurred in the construction inprogress.
25. Borrowing costs
√Applicable □Inapplicable
The Company only capitalizes the related borrowing costs that can be directly attributed to assets thatmeet the capitalization conditions during the capitalization period. Capitalization of borrowing costs startswhen the following three conditions are met at the same time:① expenditures for the asset have alreadybeen incurred;② borrowing costs have already been incurred;③ the necessary acquisition andconstruction activities have been started to make the assets reach the expected serviceable condition andwill end when the fixed assets reach the expected serviceable condition. Capitalization of borrowing costswill be suspended and recognized as current expenses when abnormal interruption occurs in the acquisitionand construction activities of fixed assets, with the interruption lasting for more than three consecutivemonths.
The capitalization amount of borrowing costs is calculated as follows: As to special borrowingsborrowed for the acquisition, construction or production of assets eligible for capitalization, the amountshall be determined by interest expenses from special borrowings actually occurred in the current perioddeducting the interest income acquired from unused borrowings which are deposited in banks, ordeducting investment profit gained from the unused borrowings temporarily invested; as for generalborrowings for the acquisition, construction or production of assets eligible for capitalization, the amountshall be determined by multiplying the weighted average of difference between accumulative assetsexpenditure and assets expenditure of specially borrowed loans by the capitalization rate of generalborrowings; the capitalization amount of interest in each accounting period shall not exceed the actualinterest of relevant borrowings incurred in the current period. If there is a discount or premium on theborrowings, the amount of discount or premium to be amortized in each accounting period shall berecognized according to the actual interest rate method, and the amount of interest in each period shall beadjusted. Ancillary expenses incurred by special borrowings, which occurred before the relevant assetsreached the expected serviceable or saleable condition, are capitalized according to the incurred amountwhen they occurred, and those occurred after the relevant assets reached the expected serviceable orsaleable condition, are recognized as expenses and included in the current profit and loss.
26. Biological assets
√Applicable □Inapplicable
(1) Classification of productive biological assets
The productive biological assets of the Company are divided into: boars, parent ducks, parent fish(shrimp), etc.
(2) Valuation of productive biological assets
① Cost valuation of purchased productive biological assets, including purchase price, relevant taxes,traffic expenses, insurance premiums and other expenditures directly attributable to the purchase of theassets;
②The cost of self-created or propagated productive biological assets includes necessary expendituressuch as feed, labor and indirect expenses that shall be amortized before reaching the intended productionand operation purpose (reaching maturity).
(3) Subsequent measurement of productive biological assets
The Company determines the service life, residual value rate, and depreciation rate according to the nature,use of productive biological assets, and the expected realization of related economic benefits as follows:
| Category | Service life | Residual rate | Annual rate of depreciation |
| Parent livestock | 3 years | 5% | 31.67% |
| Parent poultry | 3 years | 5% | 31.67% |
| Parent fish | 3 years | 5% | 31.67% |
| Parent shrimp | 7 months | 0% | Amortization completed in the breeding season |
⑤ With reliable measurement of the expenditures belonging to development stage of the intangibleassets.
30. Impairment of long-term assets
√Applicable □Inapplicable
As to fixed assets, construction in progress, intangible assets with limited service life, investmentproperties measured by cost model, long-term equity investment to subsidiaries, joint ventures andassociates, and other non-current and non-financial assets, the Company will determine whether they havesigns of impairment on the balance sheet date. If any, the recoverable amount shall be estimated and theimpairment tests shall be conducted. Impairment test shall be conducted on intangible assets every yearwith uncertain goodwill and service life and the intangible assets not yet available, no matter whether thereis any sign of impairment.If the impairment test result shows that the recoverable amount of the assets is less than the carryingamount, the impairment provision shall be provided as per their difference and included in impairmentloss. The recoverable amount is the net amount of the fair value of the assets after deducting the disposalexpenses or the present value of the expected future cash flow of the assets, whichever is higher. The fairvalue of the assets shall be recognized as per the price in sales agreement of fair dealing. If there is nosales agreement but assets active market exists, the fair value shall be recognized as per the buyer’s price.If there is neither sales agreement nor assets active market, the fair value of the assets shall be estimatedbased on the best information available. Disposal expenses shall include legal expenses, relevant taxes andhandling expenses arising from assets disposal and other direct expenses for enabling the assets to beavailable for sale. The discounted present value of the expected future cash flow of the assets shall berecognized at suitable discount rate as per the expected future cash flow generated in the process ofcontinuous use and final disposal of the assets. Impairment provisions of assets shall be calculated andrecognized on a single asset basis. If it is difficult to estimate the recoverable value of the single assets,the recoverable value shall be recognized as per the asset portfolio to which the single asset belongs. Anasset portfolio is the smallest portfolio of assets that is able to generate independent cash inflows.In conducting the impairment test, the book value of goodwill presented in the financial statementsshall be allocated to the related asset portfolios or groups of asset portfolios which are expected to benefitfrom the synergies of the business merger. If the test result indicates that the recoverable value of an assetportfolio or group of asset portfolios, including the allocated goodwill, is lower than its carrying amount,the corresponding impairment loss shall be recognized. The impairment loss shall be first deducted fromthe book value of goodwill that is allocated to the asset portfolio or group of asset portfolios, and thendeducted from the carrying amounts of other assets within the asset portfolios or groups of asset portfoliosin proportion to the book values of assets other than goodwill.
Once impairment loss is recognized for the above-mentioned asset, the part with value recoveredshall not be reversed.
31. Long-term prepaid expenses
√Applicable □Inapplicable
Long-term prepaid expense shall be recorded according to the actual amount incurred and amortizedwithin the benefit period or the specified amortization period by the straight-line method. If the long-termprepaid expenses are no longer beneficial to the subsequent accounting periods, the amortized value ofunamortized expenses will be completely carried forward to profit and loss of current period.
32. Contract liabilities
(1). Confirmation method of contract liabilities
√Applicable □Inapplicable
Contract liabilities refer to the Company's obligation to transfer goods to customers for considerationreceived or receivable from customers. If the customer has already paid the contract consideration or theCompany has obtained the unconditional right to receive payment before the Company transfers the goodsto the customer, the Company shall list the received or receivables as contract liabilities at the earlier ofthe time between the actual payment by the customer and the payment due. Contract assets and contractliabilities under the same contract are listed in net amount, and contract assets and contract liabilities underdifferent contracts are not offset.
33. Employee compensation
(1). Accounting treatment methods for short-term compensation
√Applicable □Inapplicable
Short-term compensation mainly includes salary, bonus, allowances and subsidies, employee welfareexpenses, medical insurance premiums, birth insurance premium, work injury insurance premium, housingfund, labor union funds and personnel education fund, non-monetary welfare, etc. During the period ofaccountant when staffs provide services for the Company, the actual short-term employee compensationwould be recognized as liabilities by the Company and be included in the current profit and loss or relevantasset cost. The non-monetary welfare shall be measured based on the fair value.
(2). Accounting treatment methods for post-employment welfare
√Applicable □Inapplicable
The post-employment benefit plan includes the defined contribution plan and defined benefit plan.The defined contribution plan mainly includes basic pension insurance premiums and unemploymentinsurance premiums. The corresponding amount payable is included in the cost of a relevant asset or thecurrent profit and loss upon occurring. The Company's defined benefit plans specifically provides benefitssuch as living allowance and medical expenses for retirees according to relevant national policies,company regulations and considering the length of service for the Company.
For defined benefit plans, the Company performs actuarial valuation on the balance sheet date.Actuarial gains and losses are recognized in other comprehensive income. Service costs and net intereston net liabilities or net assets of defined benefit plans are included in current profit and loss.
(3). Accounting treatment methods for dismissal welfare
√Applicable □Inapplicable
Dismissal welfare refers to compensation provided to employees for terminating the laborrelationship with employees before the expiration of the labor contract between the Company and theemployee, or for encouraging the employees to voluntarily accept the reduction. The Company willinclude the dismissal welfare arising therefrom into the employee compensation liabilities and the currentprofit and loss when paying. If it is expected that such dismissal welfare cannot be paid off within 12months at the end of the annual reporting period, then the dismissed employees shall be paid the same asother long-term employee.
The Company provides social insurance premiums and living allowances for the internally retiredstaff before their formal retirement. The internal retirement plan is treated by using the same principlesfor dismissal welfare as described above. Salaries and social insurance premiums to be paid by theCompany to the internally retired staff during the period from the date when the staff ceases to provideservices to the normal retirement date are included in current profit and loss when the recognition criteriafor provisions are met (dismissal welfare).
(4). Accounting treatment methods for other long-term employee welfare
√Applicable □Inapplicable
Other long-term employee welfare provided for employees by the Company are under accountingtreatment by defined contribution plan for that meets defined contribution plan, and is under accountingtreatment by defined benefit plan for the rest part.
34. Lease liabilities
□Applicable √Inapplicable
35. Estimated liabilities
√Applicable □Inapplicable
If obligations related to contingencies occur and meet the following conditions at the same time, theywill be recognized as estimated liabilities.
① Such obligation is a current obligation undertaken by the Company;
② The performance of such obligation will probably cause outflow of economic interest of theCompany;
③ The amount of such obligation can be measured reliably.
If all or part of payment necessary for the estimated liabilities are expected to be compensated by athird party or the other party, only when the amount of compensation is basically recognized to be received,it can be independently recognized as assets, while recognized amount of compensation cannot exceed thebook value of the recognized liabilities.
The book value of estimated liabilities shall be reviewed by the Company on the balance sheet date.If there is concrete evidence showing that the book value cannot truly reflect the current best estimate, thebook value shall be adjusted as per the current best estimate.
36. Share-based payment
□Applicable √Inapplicable
37. Other financial instruments as preferred shares and perpetual bond
□Applicable √Inapplicable
38. Revenue
(1). Accounting policies used in revenue recognition and measurement
√Applicable □Inapplicable
Applicable from January 1, 2020
1) General principles of revenue recognition
Revenue is the total inflow of economic benefits formed in the Company's daily activities that willincrease the owner's equity and have nothing to do with the owner's capital invested.
The Company has fulfilled the performance obligations in the contract, that is, when the customerobtains control of the relevant goods or services, the revenue is recognized.
If the contract contains two or more performance obligations, the Company will allocate thetransaction price to each individual performance obligation in accordance with the relative proportion ofthe stand-alone selling price of the goods or services promised by each individual performance obligationon the date of the contract. The income is measured according to the transaction price of each individualperformance obligation.
The transaction price is the amount of consideration that the Company expects to be entitled to receivedue to the transfer of goods or services to customers, excluding payments collected on behalf of thirdparties. The transaction price confirmed by the Company does not exceed the amount at which theaccumulated confirmed income will most likely not be subject to a significant reversal when the relevantuncertainty is eliminated. It is expected that the money returned to the customer will not be included inthe transaction price as a liability. If there is a significant financing component in the contract, theCompany shall determine the transaction price based on the amount payable in cash when the customerassumes control of the goods or services. The difference between the transaction price and the contractconsideration shall be amortized by the effective interest method during the contract period. On the startingdate of the contract, the Company expects that the interval between the customer's acquisition of controlof the goods or services and the customer's payment of the price will not exceed one year, regardless ofthe significant financing components in the contract.
When one of the following conditions is met, the Company will perform its performance obligationswithin a certain period of time, otherwise, it will perform its performance obligations at a certain time:
①The customer obtains and consumes the economic benefits brought by the company's performanceat the same time as the company's performance;
②The customer can control the products under construction during the performance of the Company;
③ The goods produced by the Company during the performance of the contract have irreplaceableuses, and the Company has the right to collect payment for the cumulative performance part that has beencompleted so far during the entire contract period.
For performance obligations performed within a certain period of time, the Company recognizesrevenue in accordance with the performance progress during that period of time. When the performanceprogress cannot be reasonably determined, if the cost incurred by the Company is expected to be
compensated, the revenue shall be recognized according to the amount of the cost incurred until theperformance progress can be reasonably determined.For performance obligations performed at a certain point in time, the Company recognizes revenueat the point when the customer obtains control of the relevant goods or services. When judging whether acustomer has obtained control of goods or services, the Company will consider the following signs:
①The Company has the current right to receive payment for the goods or services;
② The Company has transferred the goods in kind to the customer;
③ The Company has transferred the legal ownership of the product or the main risks and rewards ofownership to the customer;
④ The customer has accepted the goods or services.
The Company’s unconditional (only depending on the time lapses) right to collect consideration fromcustomers are listed as receivables; the Company has transferred goods or services to customers and hasthe right to collect consideration (and this right also depends on other factors other than the time lapses)are listed as contract assets, and contract assets are impaired on the basis of expected credit loss; theCompany’s obligation to transfer goods or services to customers for consideration received or receivablefrom customers is listed as contract liabilities.
2) The specific method recognition for revenue
① Revenue from commodity sales
The Company recognizes revenue when it transfers control of goods to customers.
The Company mainly produces and sells high-purity polysilicon, cells and components, polyvinylchloride, sodium hydroxide and cement, feed, fish, pigs, ducks and other products, which belong to theperformance obligations performed at a certain point time, including:
Conditions that must be met for revenue recognition of domestic sales: the Company has deliveredthe product to the purchaser in accordance with the contract and the purchaser has signed for the receiptor the transportation company entrusted by the customer to sign for the receipt, the amount of productsales revenue has been determined, and the payment has been recovered or obtained the receipt of paymentrights certificate and related economic benefits are likely to flow in, and product-related costs can bereliably measured.
Conditions that must be met for the recognition of income from export products: according to theinterpretation of the general rules of interpretation of international trade terms, combined with revenuerecognition standards and contract law, the realization of revenue is recognized when the control of goodsis transferred to the customer under different trading terms.
The Company's PV powerplants sell electricity online, and revenue is recognized when the gridcompany confirms the electricity online.
② Revenue from rendering labor services
The Company provides labor services such as engineering construction and equipment installation,which belong to the performance obligation performed in a certain period. The revenue is recognizedaccording to the performance progress, and the performance progress is recognized according to theproportion of the invested cost to its budgeted cost. If the labor cost incurred is not expected to becompensated, no revenue will be recognized, and the incurred cost will be included in the current profitand loss.
③ Revenue from abalienation of right to use asset
Use the straight-line method to apportion and confirm revenue within the period of the transfer ofasset use rights
The following revenue accounting policies are applicable to 2019 and previous years;
1) Revenue from commodity sales
Revenue realization is recognized when the following conditions are met: the Company hastransferred the main risks and remunerations related to the proprietary rights of the commodity to thepurchaser; the Company does not reserve the continuing management rights which are always related tothe proprietary rights, or executes control on the sold commodities; the economic benefits related to tradescan inflow into the Company; and relevant revenues and costs can be measured reliably.
The Company produces and sells food and animal drugs such as feed, fish, pigs and ducks, and thespecific conditions for revenue recognition are: for domestic products after delivery and receipt bycustomers, and for export products after declaration and release. The Company produces and sells high-purity polysilicon, polyvinyl chloride, sodium hydroxide, cement products, cells, components, etc. and the
specific conditions for revenue confirmation are: for products after delivery and receipt by customers orthe transportation companies entrusted by the customers.
2) Revenue from rendering labor services
The earning of the labor service provided and finished in the same accounting year shall berecognized when the labor service is finished; the relevant earning of the labor service provided andfinished in different accounting years shall be recognized by the percentage of completion method on thebalance sheet date, given that the result of the labor service provided can be reliably estimated; if the resultof the labor service provided cannot be reliably estimated, the earning of the labor service shall berecognized and measured in accordance with the principle of prudence.
3) Revenue from abalienation of right to use asset
Provided that the economic benefits related to transactions can flow into the enterprise and that theamount can be reliably measured, the revenue from such use can be recognized.
(2). Differences in accounting policies for revenue recognition caused by the adoption of different
business models for similar businesses
□Applicable √Inapplicable
39. Contract cost
√Applicable □Inapplicable
Contract costs are divided into contract performance costs and contract acquisition costs.
(1) Contract performance cost
The cost incurred by the Company for the performance of the contract is recognized as an asset ofthe contract performance cost when the following conditions are met at the same time:
① The cost is directly related to a current or anticipated contract, including direct labor, directmaterials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and othercosts incurred solely due to the contract.
② This cost increases the Company's future resources for fulfilling contract performance obligations.
③ The cost is expected to be recovered.
The asset is presented in inventory or other non-current assets based on whether the amortizationperiod at the time of initial recognition exceeds a normal operating cycle.
(2) Contract acquisition cost
The incremental cost incurred by the Company in order to obtain the contract is expected to berecovered, and it shall be recognized as an asset when obtaining the cost.Incremental costs refer to costs that the Company will not incur without obtaining a contract, such assales commissions. If the amortization period does not exceed one year, it shall be included in thecurrent profit and loss when occurred.
(3) Amortization of contract costs
Assets related to contract costs are amortized when the performance obligation is performed oraccording to the performance of the performance obligation on the same basis as the revenue recognitionof goods or services related to the asset, and included in the current profit and loss.
(4) Impairment of contract costs
If the book value of the asset related to the contract cost is higher than the difference between theremaining consideration that the Company can expect to obtain due to the transfer of the commodityrelated to the asset and the estimated cost for the transfer of the related commodity, the excess shall beprovided for impairment; if it is confirmed as an asset impairment loss, and it shall further considerwhether to withdraw the estimated liabilities related to the loss contract:
① The remaining consideration expected to be obtained due to the transfer of goods or servicesrelated to the asset;
② Estimate the cost that will be incurred for the transfer of the related goods or services.
After the provision for impairment is made, if the impairment factors in the previous period changeand the difference between the above two items is higher than the book value of the asset, the originalprovision for asset impairment shall be reversed and included in the current profit and loss, but transferredbook value of the asset does not exceed the book value of the asset on the return date under the assumptionthat no impairment provision is made.
40. Government subsidies
√Applicable □Inapplicable
(1) Judgment basis and accounting treatment method of asset-related government subsidiesAsset-related government subsidies refer to the governmental subsidies that are obtained by theCompany and used for acquisition or construction, or forming the long-term assets in other ways; if nogovernment document specifies the grant object, the judgment basis for dividing the government subsidiesinto asset-related or income-related shall be explained separately.
Accounting treatment method: from the month when the relevant assets reach the expectedserviceable condition and begin depreciation and amortization, asset-related government subsidies arerecognized as deferred revenue, and are distributed evenly over their service life (i.e. within thedepreciation and amortization period) and included in the current profit and loss. In case of early disposalof relevant assets, the remaining deferred revenue will be included in the current profit and loss at onetime when the assets are disposed of. However, the government subsidies measured as per nominal amountshall be directly included in current profit and loss.
(2) Judgment basis and accounting treatment method of revenue-related government subsidies
The revenue-related government subsidies refer to those obtained by the Company other thangovernment subsidies related to assets;
Accounting treatment methods:
① The amount used to compensate for related expense or loss during future periods of the Company,it shall be recognized as deferred revenue, and shall be included in current profit and loss or offset therelated costs during the period of recognizing the related expenses;
② The amount used to compensate for the incurred related expenses or loss of the enterprise shall beincluded to current profit and loss or offset the related costs directly.
③ Timing for government subsidies recognition
The government subsidies shall be recognized when all the attached conditions can be satisfied andthe government subsidies can be received by the Company.
④ Measurement of government subsidies
If government subsidies are monetary assets, they shall be measured as per amount received oramount receivable. If the government subsidies are non-monetary assets, they shall be measured based onfair value; if the fair value cannot be acquired reliably, they shall be measured based on the nominalamount.
41. Deferred income tax assets/Deferred income tax liabilities
√Applicable □Inapplicable
The accounting of the Company's income tax shall be conducted by using the balance sheet liabilitymethod.
The Company recognizes deferred income tax assets when the following conditions are met at thesame time: (1) the temporary differences are likely to be reversed in the foreseeable future; (2) the amountof taxable income that can be used to offset temporary deductible differences is likely to be obtained inthe future, and is limited to the amount of taxable income that is likely to be obtained.
On the balance sheet date, the current income tax liabilities (or assets) formed in the current periodand previous period shall be measured at the amount of income tax to be paid (or returned) calculated asper the tax laws; deferred income tax assets and deferred income tax liabilities shall be measured accordingto the applicable tax rate during the period when the assets are expected to be recovered or the liabilitiesare settled according to the tax laws.
On the balance sheet date, the Company reviews the book value of deferred income tax assets anddeferred income tax liabilities. Except for income tax arising from business mergers, transactions or eventsdirectly recognized in owner's equity, the current income tax and deferred income tax of the Company areincluded in the current profit and loss as income tax expenses or income.
42. Lease
(1). Accounting treatment methods of operating lease
√Applicable □Inapplicable
1) The lease expenses paid for renting the assets by the Company shall be amortized based on thestraight-line method and included in the current expenses during the whole lease period including the rent-
free period. The initial direct expenses related to the lease transaction paid by the Company shall beincluded in current expenses.
When the asset lessor bears the lease-related expenses that shall be borne by the Company, theCompany will deduct this part of the expenses from the total rent, and amortize the lease expenses afterdeduction within the lease period and include them in current expenses.
2) The rent charged for leasing the assets by the Company shall be amortized based on the straight-line method and included in lease-related revenue during the whole lease period including the rent-freeperiod. The initial direct expenses related to the lease transaction paid by the Company shall be includedin current expenses; if the amount is relatively large, it shall be subject to the capitalization, and beincluded by stages in current revenue as per the same basis for lease-related income recognition within thewhole lease term.
Where the Company bears the lease-related expenses that shall be borne by the lessee, the Companywill deduct this part of the expenses from the total rent, and allocate the lease expenses after deductionwithin the lease period.
(2). Accounting treatment methods of finance lease
√Applicable □Inapplicable
1) Basis to determine finance lease
Finance lease is a kind of lease in which all or most of risks and rewards regarding the ownership ofthe said assets are actually transferred. Its ownership may be transferred or not in the end. The lease whichmeets one or more standards below shall be recognized as the finance lease:
First, upon the expiration of the lease term, ownership of the leasing assets is transferred to the lessee.It usually means that the lessor can transfer the ownership of the asset to the lessee when the lease termexpires, either as agreed in the lease contract or after making a reasonable judgment based on relevantconditions on the lease start date.
Second, the lessee has option on the purchase of leasing assets. The purchase price is expected to fallfar below the fair value when the option is performed so that it can be reasonably determined since thecommencement date of the lease that the lessee will exercise the option.
Third, even if the ownership of the leasing assets is not transferred, the lease term accounts for mostof the service life of the leasing assets. Among them, the “most” is usually controlled above 75%(including 75%) which the lease term accounts the service life of the leasing assets.
Fourth, the present value of the minimum amount paid by the lessee at the commencement of thelease is almost equal to the fair value of the leasing assets at that time. The present value of the minimumamount received by the leaser at the commencement of the lease is almost equal to the fair value of theleasing assets at that time. Among them, "almost equal to" is usually controlled above 90% (including90%).
Fifth, the property of the leasing assets is special. The leasing assets can be used by the lessee only ifnot changed significantly.
2) Accounting treatment methods of finance lease
① Financing lease assets: on the commencement date of the lease term, the Company recognizes thefair value of leasing assets or the present value of minimum lease payment (whichever is lower) as theentry value of the leasing assets, and recognizes the minimum lease payment as the entry value of long-term payables and the difference between the entry values as the unrecognized financing charges. Theunrecognized finance charge shall be amortized by the Company by the effective interest method duringthe asset lease period and included in financial expenses. The initial direct costs incurred in the Companyshall be included in value of leased assets.
② Financing leased assets: on the commencement date of the lease, the Company shall recognize thefinance lease receivables and the balance between the sum of unguaranteed residual value and the presentvalue as the unrealized financing income, and as the lease revenue in future periods when the rents arereceived. The initial direct expenses related to the lease transaction incurred by the Company shall beincluded in initial measurement of the finance lease receivables, and the amount of income recognized inthe lease period shall be reduced.
(3) Accounting treatment method of recognizing sale and leaseback transactions as a finance lease
The contract, signed by and between the Company and the leasing company, does not change theright of use and management of the assets, and is essentially the sale-leaseback business financed by assetmortgage. It is recognized as a long-term payable when it obtains the finance lease payment, and the
payable rent and service fee during the finance lease payment period are recognized as unrecognizedfinance charges, which are amortized according to the actual interest rate during the lease period andincluded in the cost expense.
The sale and leaseback transaction recognized as an operating lease shall be provided with accountingtreatment separately based on asset disposal and lease.
(3). Determination method and accounting treatment method of lease under new lease standards
□Applicable √Inapplicable
43. Other significant accounting policies and accounting estimates
□Applicable √Inapplicable
44. Changes of significant accounting policies and accounting estimates
(1). Change of significant accounting policies
√Applicable □Inapplicable
| Contents and reasons of changes in the accounting policies | Approval procedures | Notes (name and amount of the significantly affected statement items) |
| The Ministry of Finance issued the Accounting Standards for Business Enterprises No. 14-Revenue (2017 Revision) (ck[2017] No. 22) (hereinafter referred to as the "New Revenue Standards") on July 5, 2017. Companies that are required to list domestically will implement the new revenue standards from January 1, 2020. | The tenth meeting of the seventh board of directors | The Ministry of Finance issued the Accounting Standards for Business Enterprises No. 14-Revenue in 2017. The revised standard stipulates that for the first implementation of the standard, the amount of retained earnings and other related items in the financial statements at the beginning of the year should be adjusted according to the cumulative impact, and the information during the comparable period should not be adjusted. The Company has implemented the new revenue standard from January 1, 2020. According to the standards, the Company only adjusts the retained earnings at the beginning of 2020 and the amount of other related items in the financial statements for the cumulative impact of contracts that have not been completed on the date of first implementation, and the comparative financial statements are not adjusted. The Company adjusted the receivable electricity price subsidies corresponding to powerplants not included in the national subsidy catalog from the original "accounts receivable" item to the "contract assets" item for presentation. The tax-exclusive amount of advance receipts related to sales of goods was adjusted from the original “advance receipts” item to “contract liabilities” and the corresponding added-value tax and output tax were adjusted from the original “advance receipts” item to “other current liabilities” "or "other non-current liabilities" presentation according to the liquidity, this change only affects the presentation of financial statements, and does not affect total assets, net assets and net profit. |
| Statement item | December 31, 2019 | Adjustment number | January 1, 2020 |
| Accounts receivable | 1,672,241,936.75 | -998,603,103.27 | 673,638,833.48 |
| Contract assets | 998,603,103.27 | 998,603,103.27 | |
| Advance receipt | 1,571,445,278.97 | -1,521,138,014.69 | 50,307,264.28 |
| Contract liabilities | 1,484,683,326.76 | 1,484,683,326.76 | |
| Other current liabilities | 1,123,805,086.92 | 36,454,687.93 | 1,160,259,774.85 |
| Statement item | 2019/12/31 | Adjustment number | 2020/1/1 |
| Advance receipt | 142,278,536.45 | -137,760,053.55 | 4,518,482.90 |
| Contract liabilities | 137,648,472.21 | 137,648,472.21 |
| Other current liabilities | 1,099,583,333.30 | 111,581.34 | 1,099,694,914.64 |
| Item | December 31, 2019 | January 1, 2020 | Adjustment number |
| Current assets: | |||
| Cash at bank and on hand | 2,692,681,748.77 | 2,692,681,748.77 | |
| Settlement reserves | |||
| Lending funds | |||
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 457,074,006.31 | 457,074,006.31 | |
| Accounts receivable | 1,672,241,936.75 | 673,638,833.48 | -998,603,103.27 |
| Receivables financing | 4,392,541,416.88 | 4,392,541,416.88 | |
| Advance payment | 389,875,898.15 | 389,875,898.15 | |
| Premiums receivable | |||
| Reinsurance premium receivable | |||
| Reinsurance contract reserves receivable | |||
| Other receivables | 805,398,204.90 | 805,398,204.90 | |
| Including: interest receivable | |||
| Dividend receivable | |||
| Redemptory cash at bank and on hand for sale | |||
| Inventories | 2,415,680,873.20 | 2,415,680,873.20 | |
| Contract assets | 998,603,103.27 | 998,603,103.27 | |
| Held-for-sale assets | |||
| Current portion of non-current assets | |||
| Other current assets | 917,830,014.66 | 917,830,014.66 | |
| Total current assets | 13,743,324,099.62 | 13,743,324,099.62 | |
| Non-current assets: | |||
| Loans and advances | |||
| Debt investment | |||
| Investment in other debentures | |||
| Long-term receivables | |||
| Long-term equity investment | 439,741,224.58 | 439,741,224.58 | |
| Other equity instrument investments | 153,385,357.94 | 153,385,357.94 | |
| Other non-current financial assets | |||
| Investment real estate | 107,112,223.47 | 107,112,223.47 | |
| Fixed assets | 24,533,684,430.23 | 24,533,684,430.23 | |
| Construction in progress | 3,587,311,808.76 | 3,587,311,808.76 | |
| Productive biological assets | 2,417,050.59 | 2,417,050.59 | |
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 1,709,753,019.31 | 1,709,753,019.31 | |
| Development expenditure | |||
| Goodwill | 635,818,717.99 | 635,818,717.99 | |
| Long-term prepaid expenses | 607,333,082.04 | 607,333,082.04 | |
| Deferred income tax assets | 244,903,723.68 | 244,903,723.68 | |
| Other non-current assets | 1,056,166,007.39 | 1,056,166,007.39 | |
| Total non-current assets | 33,077,626,645.98 | 33,077,626,645.98 | |
| Total assets | 46,820,950,745.60 | 46,820,950,745.60 | |
| Current liabilities: | |||
| Short-term loan | 3,622,853,209.83 | 3,622,853,209.83 | |
| Borrowings from the central bank | |||
| Loans from other banks | |||
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 5,294,623,239.24 | 5,294,623,239.24 | |
| Accounts payable | 3,609,038,689.71 | 3,609,038,689.71 | |
| Advance receipt | 1,571,445,278.97 | 50,307,264.28 | -1,521,138,014.69 |
| Contract liabilities | 1,484,683,326.76 | 1,484,683,326.76 | |
| Financial assets sold for repurchase | |||
| Deposits and placements from other financial institutions | |||
| Customer brokerage deposits | |||
| Acting underwriting securities | |||
| Employee compensation payable | 692,632,415.17 | 692,632,415.17 | |
| Taxes and fees payable | 173,544,507.36 | 173,544,507.36 | |
| Other payables | 613,261,268.85 | 613,261,268.85 | |
| Including: interest payable | 53,828,469.22 | 53,828,469.22 | |
| Dividend payable | 1,188,940.27 | 1,188,940.27 | |
| Fees and commissions payable | |||
| Reinsurance amounts payable | |||
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 1,142,185,072.84 | 1,142,185,072.84 | |
| Other current liabilities | 1,123,805,086.92 | 1,160,259,774.85 | 36,454,687.93 |
| Total current liabilities | 17,843,388,768.89 | 17,843,388,768.89 | |
| Non-current liabilities: | |||
| Insurance contract reserves | |||
| Long-term loan | 4,088,988,505.70 | 4,088,988,505.70 | |
| Bonds payable | 4,212,346,552.36 | 4,212,346,552.36 | |
| Including: preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payables | 1,901,507,753.72 | 1,901,507,753.72 | |
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred incomes | 544,324,456.73 | 544,324,456.73 | |
| Deferred income tax liabilities | 142,204,473.38 | 142,204,473.38 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 10,889,371,741.89 | 10,889,371,741.89 | |
| Total liabilities | 28,732,760,510.78 | 28,732,760,510.78 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or share capital) | 3,882,594,596.00 | 3,882,594,596.00 | |
| Other equity instruments | 854,235,969.85 | 854,235,969.85 | |
| Including: preferred shares | |||
| Perpetual bond | |||
| Capital reserves | 5,672,664,800.50 | 5,672,664,800.50 | |
| Less: treasury shares | |||
| Other comprehensive income | -31,800,201.05 | -31,800,201.05 | |
| Special reserves | 18,057,814.87 | 18,057,814.87 | |
| Surplus reserves | 564,141,320.54 | 564,141,320.54 | |
| General risk provision | |||
| Undistributed profit | 6,617,152,692.38 | 6,617,152,692.38 | |
| Total owners' equity (or shareholders' equity) attributable to the parent company | 17,577,046,993.09 | 17,577,046,993.09 | |
| Non-controlling interest | 511,143,241.73 | 511,143,241.73 | |
| Total owners' equity (or shareholders' equity) | 18,088,190,234.82 | 18,088,190,234.82 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 46,820,950,745.60 | 46,820,950,745.60 |
| Item | December 31, 2019 | January 1, 2020 | Adjustment number |
| Current assets: | |||
| Cash at bank and on hand | 1,471,405,136.59 | 1,471,405,136.59 | |
| Trading financial assets | |||
| Derivative financial assets | |||
| Notes receivable | 192,411,653.25 | 192,411,653.25 | |
| Accounts receivable | 11,818,819.45 | 11,818,819.45 | |
| Receivables financing | |||
| Advance payment | 20,317,564.39 | 20,317,564.39 | |
| Other receivables | 12,954,465,620.37 | 12,954,465,620.37 | |
| Including: interest receivable | |||
| Dividend receivable | 1,371,854.15 | 1,371,854.15 | |
| Inventories | 286,015,214.02 | 286,015,214.02 | |
| Contract assets | |||
| Held-for-sale assets | |||
| Current portion of non-current assets | |||
| Other current assets | 18,065,477.24 | 18,065,477.24 | |
| Total current assets | 14,954,499,485.31 | 14,954,499,485.31 | |
| Non-current assets: | |||
| Debt investment | |||
| Investment in other debentures | |||
| Long-term receivables | 2,633,845,533.29 | 2,633,845,533.29 | |
| Long-term equity investment | 10,949,592,149.18 | 10,949,592,149.18 | |
| Other equity instrument investments | 153,385,357.94 | 153,385,357.94 | |
| Other non-current financial assets | |||
| Investment real estate | 40,379,903.86 | 40,379,903.86 | |
| Fixed assets | 338,148,583.81 | 338,148,583.81 | |
| Construction in progress | 13,972,100.27 | 13,972,100.27 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 72,308,833.45 | 72,308,833.45 | |
| Development expenditure | |||
| Goodwill | |||
| Long-term prepaid expenses | 28,898,156.41 | 28,898,156.41 | |
| Deferred income tax assets | 1,833,741.44 | 1,833,741.44 | |
| Other non-current assets | 4,559,373.00 | 4,559,373.00 | |
| Total non-current assets | 14,236,923,732.65 | 14,236,923,732.65 | |
| Total assets | 29,191,423,217.96 | 29,191,423,217.96 | |
| Current liabilities: | |||
| Short-term loan | 2,796,114,779.39 | 2,796,114,779.39 | |
| Trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 85,940,000.00 | 85,940,000.00 | |
| Accounts payable | 138,318,934.51 | 138,318,934.51 | |
| Advance receipt | 142,278,536.45 | 4,518,482.90 | -137,760,053.55 |
| Contract liabilities | 137,648,472.21 | 137,648,472.21 | |
| Employee compensation payable | 115,251,165.67 | 115,251,165.67 | |
| Taxes and fees payable | 4,670,323.26 | 4,670,323.26 | |
| Other payables | 3,317,703,159.73 | 3,317,703,159.73 | |
| Including: interest payable | 50,682,524.91 | 50,682,524.91 | |
| Dividend payable | |||
| Held-for-sale liabilities | |||
| Non-current liabilities due within one year | 62,384,300.00 | 62,384,300.00 | |
| Other current liabilities | 1,099,583,333.30 | 1,099,694,914.64 | 111,581.34 |
| Total current liabilities | 7,762,244,532.31 | 7,762,244,532.31 | |
| Non-current liabilities: | |||
| Long-term loan | 2,032,538,604.00 | 2,032,538,604.00 | |
| Bonds payable | 4,212,346,552.36 | 4,212,346,552.36 | |
| Including: preferred shares | |||
| Perpetual bond | |||
| Lease liabilities | |||
| Long-term payables | 1,575,898,885.36 | 1,575,898,885.36 | |
| Long-term employee compensation payable | |||
| Estimated liabilities | |||
| Deferred incomes | |||
| Deferred income tax liabilities | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 7,820,784,041.72 | 7,820,784,041.72 | |
| Total liabilities | 15,583,028,574.03 | 15,583,028,574.03 | |
| Owners' equity (or shareholders' equity): | |||
| Paid-in capital (or share capital) | 3,882,594,596.00 | 3,882,594,596.00 | |
| Other equity instruments | 854,235,969.85 | 854,235,969.85 | |
| Including: preferred shares | |||
| Perpetual bond | |||
| Capital reserves | 6,646,802,814.79 | 6,646,802,814.79 | |
| Less: treasury shares | |||
| Other comprehensive income | 6,697,557.94 | 6,697,557.94 | |
| Special reserves | |||
| Surplus reserves | 564,141,320.54 | 564,141,320.54 | |
| Undistributed profit | 1,653,922,384.81 | 1,653,922,384.81 | |
| Total owners' equity (or shareholders' equity) | 13,608,394,643.93 | 13,608,394,643.93 | |
| Total liabilities and owners’ equity (or shareholders’ equity) | 29,191,423,217.96 | 29,191,423,217.96 | |
Explanation of adjustment of each item:
□Applicable √Inapplicable
(4). Explanation of retroactive adjustment of comparative data in the earlier stage upon theimplementation of the New Financial Instrument Standards or the new leasing standards since2020
□Applicable √Inapplicable
45. Others
□Applicable √Inapplicable
VI. Taxes
1. Main tax category and tax rates
Main tax category and tax rates
√Applicable □Inapplicable
| Tax category | Tax basis | Tax rate |
| Added-value tax | Sales amount | 0%, 3%, 5%, 6%, 9%, 13% |
| Consumption tax | ||
| Business tax | ||
| Urban maintenance and construction tax | Turnover tax payable | 1%-7% |
| Enterprise income tax | Taxable income | 15%, 16.5%, 17%, 20%, 25% |
| Education surcharge | Turnover tax payable | 3% |
| Local education surcharge | Turnover tax payable | 2% |
| Land use tax | Land use area | Regulations on the location of each company |
| Property tax | Original value of real estate x 70%, house rent | 1.2%, 12% |
the measures for the administration of collection of enterprise income tax of "unified calculation,hierarchical management, local prepayment, consolidated liquidation and financial transfer".
2) Units enjoying preferential enterprise income tax rate in the development of the western regionAccording to the Notice of Tax Policy Issues Concerning Further Implementing the WesternDevelopment Strategy (CS [2011] No. 58) jointly issued by Ministry of Finance, the GeneralAdministration of Customs of China and the State Taxation Administration, and the Notice on IssuesConcerning Enterprise Income Tax Relating to Further Implementing the Western Region DevelopmentStrategy (GS [2012] No. 12), corporate income tax will be levied at a reduced rate of 15% on encouragedindustrial enterprises located in the western region" from January 1, 2011 to December 31, 2020. IncludingTongwei Co., Ltd. Sichuan Branch, Deyang Branch, Special Feed Branch, Kunming Branch and itssubsidiaries, Chengdu Tongwei Animal Nutrition Technology Co., Ltd., Chengdu Ronglai Tongwei FeedCo., Ltd., Tongwei Agricultural Finance Guarantee Co., Ltd., Chongqing Tongwei Feed Co., Ltd., SichuanTongwei Feed Co., Ltd., Binyang Tongwei Feed Co., Ltd., Kunming Tongwei Feed Co., Ltd., SichuanTongwei Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Sanxin Pharmaceutical Co., Ltd.,Tongwei Industrial (Tibet) Co., Ltd., Sichuan Yongxiang Polycrystalline Silicon Co., Ltd., SichuanYongxiang New Materials Co., Ltd., Sichuan Yongxiang New Energy Co., Ltd., Inner Mongolia TongweiHigh-purity Crystalline Silicon Co., Ltd., Yunnan Tongwei High-purity Crystalline Silicon Co., Ltd.,Tongwei Solar ( Chengdu) Co., Ltd., Tongwei Solar (Meishan) Co., Ltd., Tongwei Solar (Jintang) Co.,Ltd., Tongwei Solar (Pengshan) Co., Ltd., Tonghe New Energy (Jintang) Co., Ltd., Sichuan YongxiangSilicon Material Co., Ltd. and PV powerplant companies located in six provinces and autonomous regionsincluding Tibet, Qinghai, Gansu, Ningxia, Xinjiang, and Inner Mongolia.
3) Subsidiaries recognized as high-tech enterprises and enjoying the ratio of preferential enterpriseincome tax rate of 15%.Jieyang Yongxiang Co., Ltd. was recognized as a high-tech enterprise in 2018 with the CertificateNo. of GR201844001430.Zhuhai Haiyi Aquatic Products Feed Co., Ltd. was recognized as a high-tech enterprise in 2018 withthe Certificate No. of GR201844005634.
Sichuan Willtest Technology Co., Ltd. was recognized as a high-tech enterprise in 2018 with theCertificate No. of GR201851001142.
Tongwei Solar (Hefei) Co., Ltd. was recognized as a high-tech enterprise in 2018 with the CertificateNo. of GR201834001139.
Tongwei Solar (Anhui) Co., Ltd. was recognized as a high-tech enterprise in 2020 with the CertificateNo. of GR202034000630.
Sichuan Fishery-PV Wulian Technology Co., Ltd. was recognized as a high-tech enterprise in 2020with the Certificate No. of GR202051001569.
Guangdong Tongwei Feed Co., Ltd. was recognized as a high-tech enterprise in 2020 with theCertificate No. of GR202044000114.
4) Companies engaged in mariculture and inland culture and enjoying half of the enterprise incometax
According to Article 86 of Regulation on the Implementation of the Enterprise Income Tax Law ofthe People's Republic of China issued on December 6, 2007, the enterprise income tax shall be reducedby half for the income of enterprises engaged in mariculture and inland culture projects. The enterpriseincome tax of the below enterprises shall be collected in half: Hainan Haiyi Aquatic Seed Co., Ltd.,Zhanjiang Haiyi Aquatic Seed Co., Ltd., Tongwei Fishery & PV Integration Rudong Co., Ltd., ChengduTongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd., NanjingTongwei Aquatic Products Technology Co., Ltd., Chengdu Tongwei Aquatic Technology Co., Ltd.
5) Overseas companies enjoying tax preference
According to document No. 218/2013/N-CP issued by the Vietnamese government on December 26,2013, the statutory tax rate of enterprise income tax in Vietnam was reduced to 20% from January 1, 2016.The tax preference policies enjoyed by Tongwei Vietnam Co., Ltd. are as follows: The main business offeed is given a preferential tax rate of 10%, and non-main business income does not enjoy the preferentialtax policies. The preferential tax policies enjoyed by Heping Tongwei Co., Ltd. are as follows: apreferential period of 10 years is given from the beginning of the production and operation period for themain feed business, with 2-year free and 4-year half from the beginning of the profit period. The taxpreference policies enjoyed by Qianjiang Tongwei Co., Ltd. are as follows: a preferential period of 15years is given from the beginning of the production and operation period for the main feed business, with
a preferential tax rate of 10% during the preferential period and 4-year free and 9-year half from thebeginning of the profit period.The interest income of the total bank deposit of Tongwei Feed Bangladesh Ltd. was levied with thetax of 35% of income (10% of bank withholding); the non-business income was levied with the incometax of 35% of income; the total profit apart from the interest and non-business income and expense islevied in sections: 3% for 0-1 million Taka (including 1 million), 10% for 1-2 million Taka (including 2million) and 15% for the part greater than 2 million.
6) Enjoy tax preference of public infrastructure projects which are key supported by the stateAccording to the Notice of the Ministry of Finance of the People’s Republic of China and StateTaxation Administration on Relevant Issues Concerning the Implementation of the Preferential Catalogof Enterprise Income Tax for Public Infrastructure Projects (CS 2008 [46]), the income from investmentand operation of enterprises engaged in public infrastructure projects supported by the State shall beexempted from enterprise income tax from the first to the third year starting from the tax year in whichthe first production and operation income of the project is obtained, and the enterprise income tax shall behalved from the fourth to the sixth year.According to the provisions of CS [2008] No. 116, the new solar power generation project approvedby the competent investment department of the government is a public infrastructure project. Now, thenew PV powerplant of the subsidiaries of Tongwei New Energy Co., Ltd. has been connected to the gridfor power generation, enjoying the preferential enterprise income tax policy of 3-year free and 3-year half.
3. Others
□Applicable √Inapplicable
VII. Notes to Items in Consolidated Financial Statement
1. Cash at bank and on hand
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 126,156.42 | 273,455.70 |
| Bank deposits | 5,972,818,689.87 | 1,752,248,881.07 |
| Other monetary funds | 291,223,395.74 | 940,159,412.00 |
| Total | 6,264,168,242.03 | 2,692,681,748.77 |
| Including: total amount deposited abroad | 290,741,946.92 | 191,395,898.42 |
| Item | Ending balance | Beginning balance |
| Financial assets that are measured at fair value and whose changes are included in the current profit and loss | 1,531,863,068.12 | |
| Including: | ||
| Debt instrument investment | 1,500,000,000.00 | |
| Derivative financial assets | 4,863,068.12 | |
| Equity instrument investment | 27,000,000.00 | |
| Total | 1,531,863,068.12 | |
(3) Equity instrument investment is that after Tongwei Industrial (Tibet) Co., Ltd., the company’swholly-owned subsidiaries, disposes of its 98% equity of Chengdu Tongwei Industrial Co., Ltd., it holds2% of Chengdu Tongwei Industrial Co., Ltd. and it is measured at the fair value.
3. Derivative financial assets
□Applicable √Inapplicable
4. Notes receivable
(1). Classification list of notes receivable
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Bank's acceptance bill | ||
| Commercial acceptance bill | ||
| Letter of credit | 530,962,356.27 | 457,074,006.31 |
| Total | 530,962,356.27 | 457,074,006.31 |
| Account receivable age | Book balance at the end of the period |
| Subtotal within one year | 768,043,510.20 |
| 1-2 years | 205,912,333.28 |
| 2-3 years | 156,044,975.56 |
| Over 3 years | 54,152,959.49 |
| Total | 1,184,153,778.53 |
Unit:Yuan Currency: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Bad debt provision | Book value | Book balance | Bad debt provision | Book value | |||||
| Amount | Proportion (%) | Amount | Proportion of provision (%) | Amount | Proportion (%) | Amount | Proportion of provision (%) | |||
| Provision for bad debt reserves is made individually | 79,183,407.43 | 6.69 | 791,834.07 | 1.00 | 78,391,573.36 | |||||
| Including: | ||||||||||
| Provision for bad debt reserves is made by portfolio | 1,104,970,371.10 | 93.31 | 114,009,168.29 | 10.32 | 990,961,202.81 | 754,697,829.82 | 100.00 | 81,058,996.34 | 10.74 | 673,638,833.48 |
| Including: | ||||||||||
| Portfolio 1 | 11,616,353.54 | 0.98 | 11,616,353.54 | 8,724,257.79 | 1.16 | 8,724,257.79 | ||||
| Portfolio 2 | 526,840,587.52 | 44.49 | 26,100,847.26 | 4.95 | 500,739,740.26 | 146,740,950.45 | 19.44 | 1,832,098.30 | 1.25 | 144,908,852.15 |
| Portfolio 3 | 22,300.00 | 22,300.00 | ||||||||
| Portfolio 4 | 566,491,130.04 | 47.84 | 87,908,321.03 | 15.52 | 478,582,809.01 | 599,232,621.58 | 79.40 | 79,226,898.04 | 13.22 | 520,005,723.54 |
| Total | 1,184,153,778.53 | 100.00 | 114,801,002.36 | 9.69 | 1,069,352,776.17 | 754,697,829.82 | 100.00 | 81,058,996.34 | 10.74 | 673,638,833.48 |
Provision for bad debt reserves is made individually:
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Name | Ending balance | |||
| Book balance | Bad debt provision | Proportion of provision (%) | Reason for provision | |
| Bank guarantees overseas feed payment | 79,183,407.43 | 791,834.07 | 1.00 | Note |
| Total | 79,183,407.43 | 791,834.07 | 1.00 | / |
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Unit 1 | 11,531,454.74 | ||
| Tongwei Group Co., Ltd. | 45,544.80 | ||
| Unit 2 | 39,354.00 | ||
| Total | 11,616,353.54 | ||
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Power supply company (desulfurization electricity price) | 89,427,541.42 | ||
| Subsidies of electricity price | 437,413,046.10 | 26,100,847.26 | 5.97 |
| Total | 526,840,587.52 | 26,100,847.26 | 4.95 |
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Tongwei Bioma (Wuxi) Biotechnology Co., Ltd. | 22,300.00 | ||
| Total | 22,300.00 |
| Name | Ending balance | ||
| Accounts receivable | Bad debt provision | Proportion of provision (%) | |
| Within one year | 452,466,673.33 | 22,623,333.67 | 5.00 |
| 1-2 years | 22,211,517.28 | 2,221,151.73 | 10.00 |
| 2-3 years | 57,498,207.60 | 28,749,103.80 | 50.00 |
| Over 3 years | 34,314,731.83 | 34,314,731.83 | 100.00 |
| Total | 566,491,130.04 | 87,908,321.03 | 15.52 |
| Category | Beginning balance | Change amount in the current period | Ending balance | |||
| Provision | Take back or turn back | Written off or charged off | Other changes | |||
| Single provision | 791,834.07 | 791,834.07 | ||||
| Risk portfolio | 81,058,996.34 | 18,852,264.31 | 782,843.04 | 10,935,954.67 | 24,251,019.27 | 114,009,168.29 |
| Total | 81,058,996.34 | 19,644,098.38 | 782,843.04 | 10,935,954.67 | 24,251,019.27 | 114,801,002.36 |
| Company name | Amount recovered or reversed | Recovery method |
| Client 1 | 200,000.00 | Previous period of recovery |
| Client 2 | 195,416.91 | Previous period of recovery |
| Client 3 | 108,000.00 | Previous period of recovery |
| Client 4 | 78,482.00 | Previous period of recovery |
| Other 7 clients | 200,944.13 | Previous period of recovery |
| Total | 782,843.04 | / |
(4). Accounts receivable actually written off in the current period
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Amount written off |
| Accounts receivable actually written off | 18,300,349.95 |
| Company name | Nature of accounts receivable | Amount written off | Reasons for written off | The written off procedure performed | Is the payment caused by related party transaction |
| Client 1 | Payment for goods | 5,456,681.12 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 2 | Customer payment | 2,000,018.13 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 3 | Payment for goods | 1,733,445.78 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 4 | Customer payment | 1,110,520.00 | Expected to be unable to recover the payment | Approval by authority | No |
| Other 63 clients | 7,999,684.92 | Expected to be unable to recover the payment | Approval by authority | No | |
| Total | / | 18,300,349.95 | / | / | / |
| Business categories | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts receivable from PV power generation business | 526,840,587.52 | 146,740,950.45 |
| Including: electricity price subsidy receivable | 437,413,046.10 | 24,201,420.84 |
| Accounts receivable from agricultural and animal husbandry businesses such as feed and food processing | 446,424,182.67 | 445,584,260.90 |
| Accounts receivable from silicon materials and wafers, cells, modules and related chemical businesses | 210,889,008.34 | 162,372,618.47 |
| Total | 1,184,153,778.53 | 754,697,829.82 |
6. Receivables financing
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 9,711,898,567.92 | 4,392,541,416.88 |
| Total | 9,711,898,567.92 | 4,392,541,416.88 |
| Account receivable age | Ending balance | Beginning balance | ||
| Amount | Proportion (%) | Amount | Proportion (%) | |
| Within one year | 1,103,470,579.96 | 99.10 | 368,504,327.50 | 94.52 |
| 1-2 years | 5,066,523.70 | 0.46 | 8,124,275.14 | 2.08 |
| 2-3 years | 3,006,226.96 | 0.27 | 4,848,235.52 | 1.24 |
| Over 3 years | 1,915,547.75 | 0.17 | 8,399,059.99 | 2.16 |
| Total | 1,113,458,878.37 | 100.00 | 389,875,898.15 | 100.00 |
Other notes
√Applicable □Inapplicable
About no advances written off in the current period:
8. Other receivables
Item presentation
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 797,517,755.34 | 805,398,204.90 |
| Total | 797,517,755.34 | 805,398,204.90 |
| Account receivable age | Book balance at the end of the period |
| Subtotal within one year | 546,205,057.32 |
| 1-2 years | 147,856,656.75 |
| 2-3 years | 84,086,571.13 |
| Over 3 years | 53,219,395.64 |
| Total | 831,367,680.84 |
| Payment nature | Book balance at the end of the period | Book balance at the beginning of the period |
| Related party transactions | 19,270,158.40 | |
| Deposit | 374,102,261.00 | 398,401,780.75 |
| Insurance compensation | 306,340,731.68 | 81,290,287.57 |
| Government subsidies | 33,827,768.05 | 88,069,646.08 |
| Asset disposal | 115,929,359.00 | |
| Others | 117,096,920.11 | 134,188,429.02 |
| Total | 831,367,680.84 | 837,149,660.82 |
| Bad debt provision | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the future 12 months | Expected credit loss within whole duration (no credit impairment occur) | Expected credit loss within whole duration (credit impairment has occurred) | ||
| Balance on January 1, 2020 | 18,846,592.95 | 12,904,862.97 | 31,751,455.92 | |
| The balance on January 1, 2020 is in the current period | ||||
| --Be transferred to Stage 2 | ||||
| --Be transferred to Stage 3 | -930,559.12 | 930,559.12 | ||
| --Be transferred back to Stage 2 | ||||
| --Be transferred back to Stage 1 | ||||
| Provision in the current period | -607,132.16 | 3,663,082.05 | 2,539,816.16 | 5,595,766.05 |
| Amount transferred back in the current period | ||||
| Written off in the current period | ||||
| Charged off in the current period | -3,470,375.28 | -3,470,375.28 | ||
| Other changes | -26,921.19 | -26,921.19 | ||
| 20Balance on January 1, 2020 | 17,308,901.67 | 16,541,023.83 | 33,849,925.50 |
| Category | Beginning balance | Change amount in the current period | Ending balance | |||
| Provision | Accounts recovered or transferred back | Amounts written off or charged off | Other changes | |||
| Other receivables | 31,751,455.92 | 5,595,766.05 | 3,470,375.28 | -26,921.19 | 33,849,925.50 | |
| Total | 31,751,455.92 | 5,595,766.05 | 3,470,375.28 | -26,921.19 | 33,849,925.50 | |
| Item | Amount written off |
| Other accounts receivable actually written off | 3,470,375.28 |
| Company name | Nature of other receivables | Amount written off | Reasons for written off | The written off procedure performed | Is the payment caused by related party transaction |
| Client 1 | Payment | 2,758,071.80 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 2 | Payment | 391,832.39 | Expected to be unable to recover the payment | Approval by authority | No |
| Other 25 clients | Payment | 320,471.09 | Expected to be unable to recover the payment | Approval by authority | No |
| Total | / | 3,470,375.28 | / | / | / |
| Company name | Nature of payment | Ending balance | Account receivable age | Proportion in total ending balance of other accounts receivable (%) | Ending balance of bad debt provision |
| Unit 1 | Insurance compensation | 304,013,794.38 | Within one year | 36.57 | |
| Unit 2 | Deposit | 109,657,265.22 | Note | 13.19 | |
| Unit 3 | Deposit | 52,000,000.00 | Within one year | 6.25 | |
| Unit 4 | Government subsidies | 33,827,768.05 | Within one year | 4.07 | |
| Unit 5 | Deposit | 31,011,529.88 | 1-2 years | 3.73 | 3,101,152.99 |
| Total | / | 530,510,357.53 | / | 63.81 | 3,101,152.99 |
| Company name | Name of the projects under the subsidy of the government | Ending balance | The account receivable age at the end of the year | Estimated time, amount and basis for collection |
| Unit 1 | Production incentives and interest subsidy | 33,827,768.05 | Within one year | Note |
Note: the balance of the current period shall be determined according to the notice issued by thegovernment or the agreement signed with the government, and it is expected to be recovered within oneyear.
(14). Other accounts receivable derecognized due to transfer of financial assets
□Applicable √Inapplicable
(15). Assets and liabilities formed by the transfer of other accounts receivable and continuous
involvement
□Applicable √Inapplicable
Other notes:
√Applicable □Inapplicable
The ending balances of other receivables are disclosed as follows according to the method of accruingbad debt:
| Category | Book balance | Bad debt provision | Book value | ||
| Amount | Proportion (%) | Amount | Proportion (%) | ||
| Provision for bad debt reserves is made individually | 13,403,851.90 | 1.61 | 3,080,959.56 | 22.99 | 10,322,892.34 |
| Provision for bad debt reserves is made by portfolio | 817,963,828.94 | 98.39 | 30,768,965.94 | 3.76 | 787,194,863.00 |
| Including: portfolio1 | 610,282,004.34 | 73.41 | 610,282,004.34 | ||
| Portfolio 2 | 43,139,875.58 | 5.19 | 43,139,875.58 | ||
| Portfolio 3 | |||||
| Portfolio 4 | 164,541,949.02 | 19.79 | 30,768,965.94 | 18.70 | 133,772,983.08 |
| Total | 831,367,680.84 | 100.00 | 33,849,925.50 | 4.07 | 797,517,755.34 |
| Account receivable age | Accounts receivable | Bad debt provision | Proportion of provision (%) |
| Within one year | 74,228,094.88 | 3,711,404.74 | 5.00 |
| 1-2 years | 65,958,345.95 | 6,595,834.59 | 10.00 |
| 2-3 years | 7,787,563.17 | 3,893,781.59 | 50.00 |
| Over 3 years | 16,567,945.02 | 16,567,945.02 | 100.00 |
| Total | 164,541,949.02 | 30,768,965.94 | 18.70 |
| Item | Ending balance | Beginning balance | ||||
| Book balance | inventory falling price reserves/contract performance cost impairment provision | Book value | Book balance | inventory falling price reserves/contract performance cost impairment provision | Book value | |
| Raw materials | 1,531,391,779.83 | 489,807.98 | 1,530,901,971.85 | 1,405,377,795.52 | 1,217,986.56 | 1,404,159,808.96 |
| Products in process | 134,560,573.85 | 134,560,573.85 | 126,585,602.14 | 1,839,106.85 | 124,746,495.29 | |
| Packaging materials | 24,496,956.01 | 24,496,956.01 | 27,159,929.72 | 27,159,929.72 | ||
| Inventory goods | 543,565,920.80 | 15,850,096.94 | 527,715,823.86 | 533,654,835.00 | 913,689.20 | 532,741,145.80 |
| Revolving materials | 49,567,023.61 | 49,567,023.61 | 44,256,832.22 | 44,256,832.22 | ||
| Consumptive biological assets | 59,442,936.26 | 7,843,337.72 | 51,599,598.54 | 62,983,936.02 | 62,983,936.02 | |
| Goods in transit | 176,229.12 | 176,229.12 | 19,726,871.83 | 19,726,871.83 | ||
| Consigned processing materials | 20,178,791.68 | 20,178,791.68 | 462,980.07 | 462,980.07 | ||
| Contract performance cost | 10,687,934.60 | 10,687,934.60 | 33,607,256.58 | 33,607,256.58 | ||
| Release products | 426,536,846.43 | 3,344,221.57 | 423,192,624.86 | 165,835,616.71 | 165,835,616.71 | |
| Total | 2,800,604,992.19 | 27,527,464.21 | 2,773,077,527.98 | 2,419,651,655.81 | 3,970,782.61 | 2,415,680,873.20 |
| Item | Beginning balance | Amount increased in the current period | Amount decreased in the current period | Ending balance | ||
| Provision | Others | Amount transferred back or charged off | Others | |||
| Raw materials | 1,217,986.56 | -728,178.58 | 489,807.98 | |||
| Products in process | 1,839,106.85 | 335,440.68 | 2,174,547.53 | |||
| Inventory goods | 913,689.20 | 16,802,156.56 | 1,865,748.82 | 15,850,096.94 | ||
| Revolving materials | ||||||
| Consumptive biological assets | 7,843,337.72 | 7,843,337.72 | ||||
| Contract performance cost | ||||||
| Release products | 3,344,221.57 | 3,344,221.57 | ||||
| Total | 3,970,782.61 | 27,596,977.95 | 4,040,296.35 | 27,527,464.21 | ||
The basis for the provision for inventory falling price reserves for raw materials, products in process andinventory products is the estimated net realizable value.
10. Contract assets
(1). Contract assets
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Preparation for provision | Book value | Book balance | Preparation for provision | Book value | |
| Subsidies of electricity price | 1,051,832,084.69 | 63,151,888.03 | 988,680,196.66 | 1,067,789,336.53 | 69,186,233.26 | 998,603,103.27 |
| Total | 1,051,832,084.69 | 63,151,888.03 | 988,680,196.66 | 1,067,789,336.53 | 69,186,233.26 | 998,603,103.27 |
| Category | Ending balance | Beginning balance | ||||
| Book balance | Bad debt provision | Proportion | Book balance | Bad debt provision | Proportion | |
| Subsidies of electricity price | 1,051,832,084.69 | 63,151,888.03 | 6.00% | 1,067,789,336.53 | 69,186,233.26 | 6.48% |
| Category | Beginning balance | Provision in the current period | Other changes | Ending balance |
| Subsidies of electricity price | 69,186,233.26 | 18,291,935.88 | -24,326,281.11 | 63,151,888.03 |
| Item | Ending balance | Beginning balance |
| Contract acquisition cost | ||
| Receivable return cost | ||
| Credit input tax/prepaid value-added tax | 800,167,237.49 | 859,897,264.88 |
| Prepaid corporate income tax | 9,202,582.48 | 49,831,097.37 |
| Prepaid dividends for poverty alleviation projects of PV powerplants | 655,750.06 | 6,199,500.00 |
| Prepaid interest | 411,938.30 | |
| Prepay other taxes and fees | 135,144.66 | 1,902,152.41 |
| Total | 810,572,652.99 | 917,830,014.66 |
17. Long-term equity investment
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Investee | Beginning balance | Increase/decrease in the current period | Ending balance | Ending balance of impairment reserves | |||||||
| Additional investment | Reduced investment | Investment profit or loss recognized under equity method | Adjustments in other comprehensive income | Other equity changes | Cash dividend or profit declared to distribute | Provision for impairment reserves | Others | ||||
| I. Joint Ventures | |||||||||||
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 5,363,465.90 | 374,442.93 | 5,737,908.83 | ||||||||
| Hefei Tongwei Jiuding Feed Co., Ltd. | 5,570,133.37 | -341,236.30 | 5,228,897.07 | ||||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 9,083,496.02 | 674,274.34 | 9,757,770.36 | ||||||||
| Huangmei Tongwei Jiuding Fodder Co., Ltd. | 4,105,011.98 | -390,230.55 | 3,714,781.43 | ||||||||
| Tongwei Bioma (Wuxi) Biotechnology Co., Ltd. | 104,632,791.70 | -3,407,482.28 | 101,225,309.42 | ||||||||
| Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. | 4,441,511.27 | 4,410,114.75 | -31,396.52 | ||||||||
| Subtotal | 133,196,410.24 | 4,410,114.75 | -3,121,628.38 | 125,664,667.11 | |||||||
| II. Joint ventures | |||||||||||
| Lijiang LONGi Silicon Materials Co., Ltd. | 224,746,085.31 | 52,989,624.97 | 8,196.83 | 95,165,451.22 | 182,578,455.89 | ||||||
| Zhongwei New Energy (Chengdu) Co., Ltd. | 81,798,729.03 | -27,161,103.80 | 54,637,625.23 | ||||||||
| Bohai Aquatic Products Co., Ltd. | 100,055,700.00 | 100,055,700.00 | |||||||||
| Suzhou Taiyangjing New Energy Co., Ltd. | 15,000,000.00 | -200,366.01 | 14,799,633.99 | ||||||||
| Subtotal | 306,544,814.34 | 115,055,700.00 | 25,628,155.16 | 8,196.83 | 95,165,451.22 | 352,071,415.11 | |||||
| Total | 439,741,224.58 | 115,055,700.00 | 4,410,114.75 | 22,506,526.78 | 8,196.83 | 95,165,451.22 | 477,736,082.22 | ||||
(3) Suzhou Taiyangjing New Energy Co., Ltd. was established on April 25, 2017. Tongwei Solar, a subsidiary of the Company, paid an investment of15,000,000.00 yuan in 2020. In addition to the subscribed registered capital of 1,315,750.00 yuan, 13,684,250.00 yuan was included in the capital reserves of SuzhouTaiyangjing New Energy Co., Ltd.
(4) There are no significant restrictions on the realization of the Company's investment and the remittance of investment income.
(5) The book value of each long-term equity investment of the Company at the end of the period is lower than its recoverable amount, so no provision for theimpairment of long-term equity is made.
18. Other equity instrument investments
(1). Other equity instrument investments
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending balance | Beginning balance |
| Chengdu Tongwei Property Co., Ltd. | 153,445,100.85 | 153,385,357.94 |
| Total | 153,445,100.85 | 153,385,357.94 |
| Item | Dividend income recognized in the current period | Accrued gains | Accrued losses | Amount transferred from other comprehensive income to retained earnings | Measured at designated fair value with their changes included in other comprehensive income | Reasons for transfer of other comprehensive income to retained earnings |
| Chengdu Tongwei Property Co., Ltd. | 6,757,300.85 | Based on the mode of the management used to manage the asset |
| Item | Ending balance | Beginning balance |
| Sichuan Electric Power Trading Center Co., Ltd. | 1,258,097.00 | |
| Total | 1,258,097.00 |
| Item | Houses and buildings | Land use right | Construction in progress | Total |
| I. Original book value | ||||
| 1.Beginning balance | 147,370,436.43 | 21,630,000.00 | 169,000,436.43 | |
| 2.Amount increased in the current period | ||||
| (1) Outsourcing | ||||
| (2) Transferred from inventory / fixed assets / construction in progress |
| (3) Increase due to business merger | ||||
| 3.Amount decreased in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 147,370,436.43 | 21,630,000.00 | 169,000,436.43 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1.Beginning balance | 24,497,378.54 | 8,023,927.57 | 32,521,306.11 | |
| 2.Amount increased in the current period | 3,508,066.64 | 611,108.68 | 4,119,175.32 | |
| (1) Provision or amortization | 3,508,066.64 | 611,108.68 | 4,119,175.32 | |
| 3.Amount decreased in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 28,005,445.18 | 8,635,036.25 | 36,640,481.43 | |
| III. Impairment reserves | ||||
| 1.Beginning balance | 29,366,906.85 | 29,366,906.85 | ||
| 2.Amount increased in the current period | ||||
| (1) Provision | ||||
| 3. Amount decreased in the current period | ||||
| (1) Disposal | ||||
| (2) Other transfer-out | ||||
| 4.Ending balance | 29,366,906.85 | 29,366,906.85 | ||
| IV. Book Value | ||||
| 1.Book value at the end of the period | 89,998,084.40 | 12,994,963.75 | 102,993,048.15 | |
| 2.Book value at the beginning of the period | 93,506,151.04 | 13,606,072.43 | 107,112,223.47 |
| Item | Ending balance | Beginning balance |
| Fixed assets | 29,818,556,732.35 | 24,531,015,710.34 |
| Liquidation of fixed assets | 11,045,892.65 | 2,668,719.89 |
| Total | 29,829,602,625.00 | 24,533,684,430.23 |
| Item | Houses and buildings | Machinery equipment | PV power generation equipment | Means of transport | Office equipment | Total |
| I. Original book value: | ||||||
| 1.Beginning balance | 7,563,864,986.86 | 16,965,400,812.76 | 7,052,861,940.08 | 227,981,091.33 | 245,979,498.82 | 32,056,088,329.85 |
| 2.Amount increased in the current period | 1,639,888,391.14 | 4,227,072,347.45 | 2,309,991,978.65 | 80,924,583.45 | 65,909,723.06 | 8,323,787,023.75 |
| (1) Purchase | 183,202,457.18 | 5,676,302.58 | 81,683,568.15 | 35,139,533.58 | 305,701,861.49 | |
| (2) Transferred from construction in progress | 1,615,901,114.48 | 4,058,713,285.48 | 2,423,230,715.30 | 16,338,499.41 | 8,114,183,614.67 | |
| (3) Increase due to business merger | 74,820,609.19 | 74,820,609.19 | ||||
| (4) Adjustment of final settlement of account | 42,331,861.78 | 1,705,845.62 | -193,735,648.42 | 83,991.85 | 15,566,240.43 | -134,047,708.74 |
| (5) Exchange rate changes | -18,344,585.12 | -16,549,240.83 | -842,976.55 | -1,134,550.36 | -36,871,352.86 | |
| 3.Amount decreased in the current period | 144,752,805.44 | 880,170,366.73 | 2,450,169.74 | 42,938,721.38 | 14,529,210.91 | 1,084,841,274.20 |
| (1) Disposal or scrapping | 131,506,111.60 | 879,476,051.61 | 2,450,169.74 | 42,332,326.38 | 13,393,884.61 | 1,069,158,543.94 |
| (2) Decrease in disposal of subsidiaries | 13,246,693.84 | 694,315.12 | 606,395.00 | 1,135,326.30 | 15,682,730.26 | |
| 4.Ending balance | 9,059,000,572.56 | 20,312,302,793.48 | 9,360,403,748.99 | 265,966,953.40 | 297,360,010.97 | 39,295,034,079.40 |
| II. Accumulated depreciation | ||||||
| 1.Beginning balance | 1,695,079,321.24 | 4,382,239,178.70 | 453,760,986.16 | 142,329,010.12 | 150,826,787.36 | 6,824,235,283.58 |
| 2.Amount increased in the current period | 347,252,189.36 | 1,607,806,593.95 | 309,518,862.15 | 30,154,365.22 | 36,385,801.34 | 2,331,117,812.02 |
| (1) Provision | 351,165,801.06 | 1,613,054,797.03 | 315,825,021.58 | 30,608,536.99 | 32,690,690.27 | 2,343,344,846.93 |
| (2) Increase due to business merger | 9,112,866.95 | 9,112,866.95 | ||||
| (3) Adjustment of final settlement of account | -161,118.92 | 1,440,044.88 | -15,419,026.38 | 51,899.44 | 4,341,380.07 | -9,746,820.91 |
| (4) Exchange rate changes | -3,752,492.78 | -6,688,247.96 | -506,071.21 | -646,269.00 | -11,593,080.95 | |
| 3.Amount decreased in the current period | 55,963,544.42 | 458,328,118.41 | 690,738.41 | 36,847,096.47 | 11,763,474.33 | 563,592,972.04 |
| (1) Disposal or scrapping | 47,392,254.77 | 457,696,307.99 | 690,738.41 | 36,271,021.22 | 10,753,298.07 | 552,803,620.46 |
| (2) Decrease in disposal of subsidiaries | 8,571,289.65 | 631,810.42 | 576,075.25 | 1,010,176.26 | 10,789,351.58 | |
| 4.Ending balance | 1,986,367,966.18 | 5,531,717,654.24 | 762,589,109.90 | 135,636,278.87 | 175,449,114.37 | 8,591,760,123.56 |
| III. Impairment reserves | ||||||
| 1.Beginning balance | 145,998,642.91 | 554,276,420.34 | 32,124.08 | 530,148.60 | 700,837,335.93 | |
| 2.Amount increased in the current period | 7,368,425.66 | 221,877,025.60 | 229,245,451.26 | |||
| (1) Provision | 221,877,025.60 | 221,877,025.60 | ||||
| (2) Transferred from construction in progress | 7,368,425.66 | 7,368,425.66 | ||||
| 3.Amount decreased in the current period | 45,343,658.75 | 21,904.95 | 45,365,563.70 |
| (1) Disposal or scrapping | 45,343,658.75 | 21,904.95 | 45,365,563.70 | |||
| 4.Ending balance | 153,367,068.57 | 508,932,761.59 | 221,877,025.60 | 10,219.13 | 530,148.60 | 884,717,223.49 |
| IV. Book Value | ||||||
| 1.Book value at the end of the period | 6,919,265,537.81 | 14,271,652,377.65 | 8,375,937,613.49 | 130,320,455.40 | 121,380,748.00 | 29,818,556,732.35 |
| 2.Book value at the beginning of the period | 5,722,787,022.71 | 12,028,885,213.72 | 6,599,100,953.92 | 85,619,957.13 | 94,622,562.86 | 24,531,015,710.34 |
| Item | Original book value | Accumulated depreciation | Preparation for provision | Book value | Remarks |
| Houses and buildings | 50,795,741.48 | 34,707,015.51 | 16,088,725.97 | ||
| Machinery equipment | 28,510,257.82 | 24,912,184.82 | 3,598,073.00 | ||
| Transportation equipment | 978,040.00 | 924,504.37 | 53,535.63 | ||
| Office equipment | 989,223.90 | 926,537.94 | 62,685.96 | ||
| Total | 81,273,263.20 | 61,470,242.64 | 19,803,020.56 |
| Item | Original book value | Accumulated depreciation | Preparation for provision | Book value |
| Machinery equipment | 1,906,742,875.51 | 327,703,464.62 | 1,579,039,410.89 |
| Item | Book value at the end of the period |
| Houses and buildings | 50,844,458.12 |
| Machinery equipment | 116,944,427.51 |
| Transportation equipment | 225,494.21 |
| Office equipment | 201,926.41 |
| Total | 168,216,306.25 |
| Item | Book value | Reasons for the failure of obtaining the property certificate |
| Houses and buildings of Tongwei Solar (Chengdu) Co., Ltd. | 943,118,207.25 | In progress |
| Houses of Tongwei Solar (Meishan) Co., Ltd. | 513,913,744.63 | In progress |
| Houses of Tongwei Solar (Hefei) Co., Ltd. | 238,679,316.38 | In progress |
| Houses of Tongwei Solar (Anhui) Co., Ltd. | 228,658,804.16 | In progress |
| Houses of Fuzhou Tongwei Willianm Feed Co., Ltd. | 40,493,066.31 | In progress |
| Houses of Yangjiang Haiyi Biological Technology Co., Ltd. | 34,841,926.87 | In progress |
| House of Nanchang Tongwei Biotechnology Co., Ltd. | 29,055,107.44 | In progress |
| Houses of Tongwei Co., Ltd. Special Feed Branch | 26,029,950.21 | In progress |
| Houses of Sichuan Yongxiang Polysilicon Co., Ltd. | 25,379,340.08 | In progress |
| Houses of Tongwei (Hainan) Aquatic Products Co., Ltd. | 21,139,968.66 | In progress |
| Houses of Shashi Tongwei Feed Co., Ltd. | 19,294,222.74 | In progress |
| Houses of Huai'an Tongwei Feed Co., Ltd. | 18,189,468.36 | In progress |
| Houses of Tongwei Co., Ltd. Shenyang Branch | 10,456,286.28 | In progress |
| Houses of Huai'an Tongwei Feed Co., Ltd. | 6,271,086.40 | In progress |
| Houses of Inner Mongolia Tongwei Silicon Co., Ltd. | 2,968,516.51 | In progress |
| Total | 2,158,489,012.28 |
| Item | Ending balance | Beginning balance | |
| Liquidation of fixed assets | 11,045,892.65 | 2,668,719.89 | |
| Total | 11,045,892.65 | 2,668,719.89 |
| Item | Ending balance | Beginning balance |
| Construction in progress | 2,933,099,260.27 | 3,537,742,717.58 |
| Engineering material | 64,802,360.32 | 49,569,091.18 |
| Total | 2,997,901,620.59 | 3,587,311,808.76 |
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Preparation for provision | Book value | Book balance | Preparation for provision | Book value | |
| Projects in Tongwei New Energy Segment: | ||||||
| 200MW Fishery & PV Integration in Dongying Animal Husbandry Area | 585,781,725.88 | 585,781,725.88 | 9,974,168.23 | 9,974,168.23 | ||
| 100MW Fishery & PV Integration project in Gong'an | 5,170,676.75 | 5,170,676.75 | ||||
| Phase-II 75MW Fishery & PV Integration Project in Tianjin Yangjiabo | 18,442,662.74 | 18,442,662.74 | 242,213,369.62 | 242,213,369.62 | ||
| 100MWp Fishery & PV Integration project in Changde Dingcheng | 100,303,896.82 | 100,303,896.82 | ||||
| 300MW Fishery & PV Integration project in Shandong Zhanhua | 167,836,236.96 | 167,836,236.96 | ||||
| 200mwp Fishery & PV Integration project in Huaiyuan County, Bengbu City | 239,338,460.65 | 239,338,460.65 | 4,331,916.61 | 4,331,916.61 | ||
| Phase-III 20MW Fishery & PV Integration project in Kangxiling | 345,585.39 | 345,585.39 | 59,952,676.00 | 59,952,676.00 | ||
| 100MW Fishery & PV Integration project in Gaoan Bajing | 82,134,624.82 | 82,134,624.82 | ||||
| 200MW Fishery & PV Integration Project in Jianping County | 102,332,874.21 | 102,332,874.21 | 10,092,090.73 | 10,092,090.73 | ||
| Other projects of new energy | 110,826,345.68 | 110,826,345.68 | 50,027,436.98 | 50,027,436.98 | ||
| Projects in Yongxiang segment: | ||||||
| Technological upgrading project of Yongxiang polysilicon production line | 240,839,251.28 | 240,839,251.28 | 77,898,475.02 | 77,898,475.02 | ||
| Tongwei phase-I 25,000MT high-purity polysilicon project in Inner Mongolia | 35,857,736.68 | 35,857,736.68 | 166,506,965.33 | 166,506,965.33 | ||
| Other projects of Yongxiang | 97,361,251.29 | 97,361,251.29 | 6,299,211.46 | 6,299,211.46 | ||
| Projects in Tongwei Solar Segment: | ||||||
| Chengdu 3.2GW high-efficiency solar cell project | 34,435,430.63 | 34,435,430.63 | ||||
| Chengdu 3.8GW high-efficiency solar cell project | 1,299,296,637.72 | 1,299,296,637.72 | ||||
| Meishan phase-II 7.5GW high-efficiency solar cell project | 523,132,682.15 | 523,132,682.15 | ||||
| Meishan phase-I 7.5GW high-efficiency solar cell project | 27,832,971.13 | 27,832,971.13 | 541,616,543.52 | 541,616,543.52 | ||
| Jintang phase-I 7.5GW high-efficiency solar cell project | 484,681,023.28 | 484,681,023.28 | ||||
| Anhui production and efficiency improvement project | 13,247,840.01 | 13,247,840.01 | 58,905,069.01 | 58,905,069.01 | ||
| Component efficient project | 27,160,603.05 | 5,282,262.90 | 21,878,340.15 | 248,885,502.21 | 12,650,688.56 | 236,234,813.65 |
| Other projects of solar | 163,845,460.83 | 163,845,460.83 | 137,610,070.42 | 137,610,070.42 | ||
| Projects in agriculture and animal husbandry segment: | ||||||
| Nanchang biological feed production line project | 2,509,239.85 | 2,509,239.85 | 49,406,626.80 | 49,406,626.80 | ||
| Yangzhou feed production line project | 325,745.62 | 325,745.62 | 18,538,562.63 | 18,538,562.63 | ||
| Relocation project of Nanning Tongwei Feed Co., Ltd. | 74,459,717.42 | 74,459,717.42 | 1,885,322.85 | 1,885,322.85 | ||
| Yangjiang Haiyi shrimp special material production line project | 82,206,111.86 | 82,206,111.86 | ||||
| Other projects in the agricultural segment | 190,060,346.03 | 190,060,346.03 | 94,865,783.16 | 94,865,783.16 | ||
| Total | 2,938,381,523.17 | 5,282,262.90 | 2,933,099,260.27 | 3,550,393,406.14 | 12,650,688.56 | 3,537,742,717.58 |
Unit:Yuan Currency:RMB
| Project name | Budget amount | Beginning balance | Amount increased in the current period | Amount transferred into fixed assets in the current period | Other amount decreased in the current period | Ending balance | Proportion of total project investment in budget (%) | Project progress | Cumulative amount of interest capitalization | Including: Amount of capitalization of interest in the current period | Capitalization rate of interest in the current period (%) | Fund source |
| Projects in Tongwei New Energy Segment: | ||||||||||||
| 200MW Fishery & PV Integration in Dongying Animal Husbandry Area | 764,232,500.00 | 9,974,168.23 | 575,807,557.65 | 585,781,725.88 | 76.65 | 96.00% | 285,065.37 | 4.58 | Self-raised | |||
| 100MW Fishery & PV Integration project in Gong'an | 386,194,700.00 | 5,170,676.75 | 339,226,829.22 | 344,397,505.97 | 89.18 | 100.00% | 4,918,611.20 | 4,917,618.14 | 4.58 | Self-raised | ||
| Phase-II 75MW Fishery & PV Integration Project in Tianjin Yangjiabo | 343,915,100.00 | 242,213,369.62 | 51,355,632.74 | 275,126,339.62 | 18,442,662.74 | 85.36 | 95.00% | 9,002,293.55 | 6,095,806.27 | 4.58 | Self-raised | |
| 100MWp Fishery & PV Integration project in Changde Dingcheng | 378,531,600.00 | 100,303,896.82 | 234,253,969.44 | 334,557,866.26 | 88.38 | 100.00% | 501,003.10 | 4.58 | Self-raised | |||
| 300MW Fishery & PV Integration project in Shandong Zhanhua | 1,189,060,000.00 | 167,836,236.96 | 697,213,566.75 | 865,049,803.71 | 72.75 | 100.00% | 9,532,740.57 | 9,110,080.85 | 4.58 | Self-raised | ||
| Phase-II 30MW PV powerplant project in Zibo Huixiang Gaoqing | 92,220,800.00 | 88,069,689.19 | 88,069,689.19 | 95.50 | 100.00% | Self-raised | ||||||
| 200mwp Fishery & PV Integration project in Huaiyuan County, Bengbu City | 674,250,000.00 | 4,331,916.61 | 279,661,735.32 | 44,655,191.28 | 239,338,460.65 | 42.12 | 50.00% | 38,063.40 | 4.58 | Self-raised | ||
| Phase-III 20MW Fishery & PV Integration project in Kangxiling | 99,449,100.00 | 59,952,676.00 | 30,248,005.25 | 89,855,095.86 | 345,585.39 | 90.70 | 98.00% | 3,886,237.32 | 3,431,129.48 | 4.58 | Self-raised | |
| 100MW Fishery & PV Integration project in Gaoan Bajing | 375,480,200.00 | 82,134,624.82 | 181,183,166.81 | 263,317,791.63 | 70.13 | 83.00% | 1,706,863.74 | 1,275,633.36 | 4.58 | Self-raised | ||
| 200MW Fishery & PV Integration Project in Jianping County | 822,580,000.00 | 10,092,090.73 | 92,240,783.48 | 102,332,874.21 | 12.44 | 12.00% | Self-raised | |||||
| Other projects of new energy | 50,027,436.98 | 201,178,609.16 | 132,786,744.25 | 7,592,956.21 | 110,826,345.68 | 100,507,750.32 | 1,449,957.74 | 4.58 | Self-raised | |||
| Projects in Yongxiang segment: | ||||||||||||
| Technological upgrading project of Yongxiang polysilicon production line | 580,602,800.00 | 77,898,475.02 | 356,729,959.56 | 193,789,183.30 | 240,839,251.28 | 74.86 | 70.00% | Self-raised | ||||
| Tongwei phase-I 25,000MT high-purity polysilicon project in Inner Mongolia | 3,428,660,000.00 | 166,506,965.33 | 120,890,329.47 | 223,588,059.26 | 27,951,498.86 | 35,857,736.68 | 97.44 | 98.00% | 18,669,747.53 | 4.49 | Raising + self-raised |
| Other projects of Yongxiang | 6,299,211.46 | 156,585,301.15 | 63,539,579.24 | 1,983,682.08 | 97,361,251.29 | 28,641,748.40 | 4.49 | |||||
| Projects in Tongwei Solar Segment: | ||||||||||||
| Chengdu 3.2GW high-efficiency solar cell project | 190,000,000.00 | 34,435,430.63 | 157,061,871.32 | 163,181,657.48 | 28,315,644.47 | 100.79 | 100.00% | Self-raised | ||||
| Chengdu 3.8GW high-efficiency solar cell project | 1,621,621,600.00 | 1,299,296,637.72 | 299,464,036.21 | 1,542,477,966.26 | 56,282,707.67 | 98.59 | 100.00% | Self-raised | ||||
| Meishan phase-II 7.5GW high-efficiency solar cell project | 2,400,000,000.00 | 523,132,682.15 | 523,132,682.15 | 21.80 | 20.00% | Raised | ||||||
| Meishan phase-I 7.5GW high-efficiency solar cell project | 2,500,000,000.00 | 541,616,543.52 | 1,766,097,294.61 | 2,189,274,156.69 | 90,606,710.31 | 27,832,971.13 | 92.32 | 92.00% | Self-raised | |||
| Jintang phase-I 7.5GW high-efficiency solar cell project | 2,700,613,900.00 | 484,681,023.28 | 484,681,023.28 | 17.96 | 18.00% | Raised | ||||||
| Anhui production and efficiency improvement project | 364,442,800.00 | 58,905,069.01 | 179,709,195.23 | 225,366,424.23 | 13,247,840.01 | 67.46 | 65.00% | Self-raised | ||||
| Component efficient project | 1,181,000,000.00 | 248,885,502.21 | 316,118,077.10 | 535,460,425.55 | 2,382,550.71 | 27,160,603.05 | 47.84 | 50.00% | Self-raised | |||
| Other projects of solar | 137,610,070.42 | 147,385,904.38 | 99,920,136.68 | 21,230,377.29 | 163,845,460.83 | |||||||
| Projects in agriculture and animal husbandry segment: | ||||||||||||
| Nanchang biological feed production line project | 120,000,000.00 | 49,406,626.80 | 56,217,420.81 | 103,114,807.76 | 2,509,239.85 | 88.02 | 97.00% | Self-raised | ||||
| Yangzhou feed production line project | 170,000,000.00 | 18,538,562.63 | 26,188,911.57 | 44,401,728.58 | 325,745.62 | 111.40 | 99.00% | 884,507.09 | 4.37 | Self-raised | ||
| Nanning feed relocation project | 115,631,700.00 | 1,885,322.85 | 73,947,354.40 | 1,372,959.83 | 74,459,717.42 | 65.58 | 70.00% | 667,787.84 | 667,787.84 | 4.37 | Self-raised | |
| Yangjiang Haiyi shrimp special material production line project | 128,738,900.00 | 82,206,111.86 | 19,770,865.81 | 101,976,977.67 | 79.21 | 100.00% | 1,228,539.54 | 4.37 | Self-raised | |||
| Other projects in the agricultural segment | 94,865,783.16 | 297,879,804.14 | 188,903,524.37 | 13,781,716.90 | 190,060,346.03 | 4,639,666.98 | 3,420,080.18 | 4.37 | Self-raised | |||
| Total | 20,627,225,700.00 | 3,550,393,406.14 | 7,752,299,576.20 | 8,114,183,614.67 | 250,127,844.50 | 2,938,381,523.17 | / | / | 185,110,625.95 | 30,368,093.86 | / | / |
Notes:
1. Budget amount refers to the budget amount of project investment. The proportion of project investmentin the budget refers to the proportion of accumulated investment in the budget of the project. Theaccumulated investment includes the amount of fixed assets carried forward in the previous year. Theinvestment budget of the raised fund PV powerplant project includes the project construction cost and thefish ponds rental fee. The budget of the non-raised fund PV powerplant project does not include the fishponds rental fee, which was reflected in the “long-term prepaid expenses”.
2. 300MW Fishery & PV Integration Project in Shandong Zhanhua accounted for 72.75% of the budget,and the project progress was 100.00%. The major difference is that the project investment budget includespowerplant energy storage projects, which are in the preliminary preparation stage and have not yet beeninvested.
3. In the current period, Tongwei New Energy (Shenzhen) Co., Ltd., a subsidiary of Tongwei New Energy(Shenzhen) Co., Ltd., a wholly-owned subsidiary of the company, was added to the acquisition of ZiboHuixiang New Energy Co., Ltd., with an increase of RMB 68,204,857.68.
4. The application project of domestically produced intelligent equipment (system) with an annual outputof 7.5GW of high-efficiency crystalline silicon solar cells in Meishan Phase I was originally filed as anapplication project of domestic intelligent equipment (system) with an annual output of 3.8GW of high-efficiency crystalline silicon solar cells. The name of the project was changed on February 27, 2020, andthe project was completed in August 2020, handed over to use and fixed.
5. The amount of other decrease is RMB 250,127,844.50, including RMB 168,171,796.41 carry-forwardinto intangible assets - land use right, RMB 45,627,532.08 in software, RMB 5,880,715.59 in transfermanagement expenses, RMB 243,829.36 decreased in the disposal of subsidiaries and RMB30,203,971.06 transferred in long-term prepaid expenses.
(3). About provision for impairment reserves of construction in progress in the current period
□Applicable √Inapplicable
Other notes
√Applicable □Inapplicable
The impairment of construction in progress is the solar energy segment project. The initialimpairment provision is RMB 12,650,688.56. There is no new increase in the current period. As the projectis completed, it will be transferred to fixed assets of RMB 7,368,425.66, and the ending balance is RMB5,282,262.90.
Engineering material
(4). About engineering materials
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Preparation for provision | Book value | Book balance | Preparation for provision | Book value | |
| Special equipment | 50,203,546.20 | 50,203,546.20 | 49,569,091.18 | 49,569,091.18 | ||
| Special materials | 14,598,814.12 | 14,598,814.12 | ||||
| Total | 64,802,360.32 | 64,802,360.32 | 49,569,091.18 | 49,569,091.18 | ||
| Item | Aquatic industry | Total | |
| Fish | Shrimp | ||
| I. Original book value | |||
| 1.Beginning balance | 918,585.04 | 2,013,400.00 | 2,931,985.04 |
| 2.Amount increased in the current period | 7,552,101.67 | 7,552,101.67 | |
| (1) Outsourcing | 7,552,101.67 | 7,552,101.67 | |
| (2) Self-cultivation | |||
| 3.Amount decreased in the current period | 362,793.04 | 9,565,501.67 | 9,928,294.71 |
| (1) Disposal | 362,793.04 | 9,565,501.67 | 9,928,294.71 |
| (2) Others | |||
| 4.Ending balance | 555,792.00 | 555,792.00 | |
| II. Accumulated depreciation | |||
| 1.Beginning balance | 514,934.45 | 514,934.45 | |
| 2.Amount increased in the current period | 159,617.65 | 9,565,501.67 | 9,725,119.32 |
| (1) Provision | 159,617.65 | 9,565,501.67 | 9,725,119.32 |
| 3.Amount decreased in the current period | 210,157.45 | 9,565,501.67 | 9,775,659.12 |
| (1) Disposal | 210,157.45 | 9,565,501.67 | 9,775,659.12 |
| (2) Others | |||
| 4.Ending balance | 464,394.65 | 464,394.65 | |
| III. Impairment reserves | |||
| 1.Beginning balance | |||
| 2.Amount increased in the current period | |||
| (1) Provision | |||
| 3.Amount decreased in the current period | |||
| (1) Disposal | |||
| (2) Others | |||
| 4.Ending balance | |||
| IV. Book Value | |||
| 1.Book value at the end of the period | 91,397.35 | 91,397.35 | |
| 2.Book value at the beginning of the period | 403,650.59 | 2,013,400.00 | 2,417,050.59 |
Unit:Yuan Currency:RMB
| Item | Land use right | Patent rights | Non-patented technology | Software | Trademark right | Right to use transmission line | Franchise | Total |
| I. Original book value | ||||||||
| 1.Beginning balance | 1,809,918,550.04 | 10,427,954.55 | 80,615,610.97 | 76,144,894.95 | 614,180.00 | 16,290,480.32 | 11,000,000.00 | 2,005,011,670.83 |
| 2.Amount increased in the current period | 311,049,738.29 | 40,000.00 | 45,891,479.29 | 31,983,117.47 | 388,964,335.05 | |||
| (1) Purchase | 147,130,218.10 | 40,000.00 | 263,947.21 | 147,434,165.31 | ||||
| (2) Internal R&D | ||||||||
| (3) Increase due to business merger | ||||||||
| (4) Transfer of construction in progress | 168,171,796.41 | 45,627,532.08 | 213,799,328.49 | |||||
| (5) Adjustment of final settlement of account | 31,983,117.47 | 31,983,117.47 | ||||||
| (6) Exchange rate changes | -4,252,276.22 | -4,252,276.22 | ||||||
| 3.Amount decreased in the current period | 427,414,641.29 | 649,523.93 | 843,513.00 | 428,907,678.22 | ||||
| (1) Disposal | 649,523.93 | 843,513.00 | 1,493,036.93 | |||||
| (2) Decrease in disposal of subsidiaries | 427,414,641.29 | 427,414,641.29 | ||||||
| 4.Ending balance | 1,693,553,647.04 | 9,778,430.62 | 80,655,610.97 | 121,192,861.24 | 614,180.00 | 48,273,597.79 | 11,000,000.00 | 1,965,068,327.66 |
| II. Accumulated amortization | ||||||||
| 1.Beginning balance | 232,388,636.75 | 6,536,807.73 | 16,214,429.16 | 37,113,305.21 | 559,299.69 | 2,070,746.38 | 375,426.60 | 295,258,651.52 |
| 2.Amount increased in the current period | 35,524,615.33 | 958,494.58 | 9,108,735.07 | 16,191,436.54 | 24,584.59 | 3,032,451.91 | 450,511.92 | 65,290,829.94 |
| (1) Provision | 35,977,139.73 | 958,494.58 | 9,108,735.07 | 16,191,436.54 | 24,584.59 | 450,511.92 | 62,710,902.43 | |
| (2) Adjustment of final accounts after completion | 3,032,451.91 | 3,032,451.91 | ||||||
| (3) Exchange rate changes | -452,524.40 | -452,524.40 | ||||||
| 3.Amount decreased in the current period | 58,739,617.67 | 81,623.93 | 365,700.95 | 59,186,942.55 | ||||
| (1) Disposal | 81,623.93 | 365,700.95 | 447,324.88 | |||||
| (2) Decrease in disposal of subsidiaries | 58,739,617.67 | 58,739,617.67 | ||||||
| 4.Ending balance | 209,173,634.41 | 7,413,678.38 | 25,323,164.23 | 52,939,040.80 | 583,884.28 | 5,103,198.29 | 825,938.52 | 301,362,538.91 |
| III. Impairment reserves | ||||||||
| 1.Beginning balance |
| 2.Amount increased in the current period | ||||||||
| (1) Provision | ||||||||
| 3.Amount decreased in the current period | ||||||||
| (1) Disposal | ||||||||
| 4.Ending balance | ||||||||
| IV. Book Value | ||||||||
| 1.Book value at the end of the period | 1,484,380,012.63 | 2,364,752.24 | 55,332,446.74 | 68,253,820.44 | 30,295.72 | 43,170,399.50 | 10,174,061.48 | 1,663,705,788.75 |
| 2.Book value at the beginning of the period | 1,577,529,913.29 | 3,891,146.82 | 64,401,181.81 | 39,031,589.74 | 54,880.31 | 14,219,733.94 | 10,624,573.40 | 1,709,753,019.31 |
(2). Land use rights whose property certificates are not obtained
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Book value | Reasons for the failure of obtaining the property certificate |
| Land of Tongwei Solar (Chengdu) Co., Ltd. | 52,033,506.03 | In progress |
| Land of Xiamen Tongwei Feed Co., Ltd. | 3,953,414.33 | The foundation was not leveled according to regulations during construction. The application materials are being supplemented and improved in accordance with relevant procedures and requirements |
| Land of Chongqing Tongwei New Energy Co., Ltd. | 1,393,558.00 | In progress |
| Land of Xide Tongwei Huijin New Energy Co., Ltd. | 1,304,625.00 | In progress |
| Land of Huai'an Tongwei Feed Co., Ltd. | 604,351.60 | The company is located in Baotan town. Huai 'an City allocates a fixed area of industrial land to Baotan government every year, and then the government allocates the land to enterprises from the total area. It is now being coordinated with the government |
| Land of Linghai Zhongqing Energy Co., Ltd. | 424,135.60 | In progress |
| Total | 59,713,590.56 |
| Item | Beginning balance | Amount increased in the current period | Amount decreased in the current period | Ending balance | ||||
| Internal development expenditure | Others | Recognized as intangible assets | Transferred to current period profit or loss | |||||
| Production, research and development project of cells | 530,133,043.30 | 530,133,043.30 | ||||||
| Research and development project of aquatic feed | 102,024,595.95 | 102,024,595.95 | ||||||
| Research and development project of cultivation technology | 66,271,192.77 | 66,271,192.77 | ||||||
| Production, research and development project of high-purity polysilicon | 245,781,335.24 | 245,781,335.24 | ||||||
| Production, research and development project of PVC and sodium hydroxide | 27,961,594.03 | 27,961,594.03 | ||||||
| Production, research and development project of poultry feed | 52,146,762.28 | 52,146,762.28 | ||||||
| Others | 11,012,911.11 | 11,012,911.11 | ||||||
| Total | 1,035,331,434.68 | 1,035,331,434.68 | ||||||
| Name of the investee or event from which the goodwill arises | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Increase due to business combination | Disposal | |||||
| Tongwei Solar (Hefei) Co., Ltd. | 591,542,868.55 | 591,542,868.55 | ||||
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | 22,461,157.77 | 22,461,157.77 | ||||
| Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | 21,814,691.67 | 21,814,691.67 | ||||
| Chengdu Chunyuan Food Co., Ltd. | 17,886,370.20 | 17,886,370.20 | ||||
| Hainan Haiyi Aquatic Seed Co., Ltd. | 2,911,456.80 | 2,911,456.80 | ||||
| Sichuan Chunyuan Ecological Breeding Co., Ltd. | 1,486,979.12 | 1,486,979.12 | ||||
| Total | 658,103,524.11 | 658,103,524.11 |
| Name of the investee or event from which the goodwill arises | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | ||
| Provision | Disposal | |||||
| Chengdu Chunyuan Food Co., Ltd | 17,886,370.20 | 17,886,370.20 | ||||
| Hainan Haiyi Aquatic Seed Co., Ltd. | 2,911,456.80 | 2,911,456.80 | ||||
| Sichuan Chunyuan Ecological Breeding Co., Ltd. | 1,486,979.12 | 1,486,979.12 | ||||
| Total | 22,284,806.12 | 22,284,806.12 | ||||
Unit:Yuan Currency: RMB
| Item | Beginning balance | Amount increased in the current period | Amortization in the current period | Other decrease amount | Ending balance |
| Rental fees | 590,130,632.82 | 606,515,820.75 | 394,318,140.70 | 30,578,722.58 | 771,749,590.29 |
| Renovation costs | 2,933,233.83 | 56,655,089.50 | 10,906,432.34 | 48,681,890.99 | |
| Others | 14,269,215.39 | 18,610,180.83 | 18,040,913.93 | 14,838,482.29 | |
| Total | 607,333,082.04 | 681,781,091.08 | 423,265,486.97 | 30,578,722.58 | 835,269,963.57 |
| Item | Ending balance | Beginning balance | ||
| Temporary deductible difference | Deferred income tax assets | Temporary deductible difference | Deferred income tax assets | |
| Asset depreciation reserves | 1,064,729,156.95 | 181,000,631.40 | 817,564,148.18 | 127,094,887.91 |
| Unrealized profit of internal transaction | 553,308,162.08 | 82,996,224.31 | 512,148,218.73 | 89,153,194.40 |
| Deductible loss | 676,668,440.56 | 100,731,514.19 | 118,888,345.84 | 26,820,269.10 |
| Liability reserves | 21,958,001.65 | 3,293,700.25 | 24,221,753.62 | 3,633,263.04 |
| Amortization of fixed assets greater than that stipulated in the tax law | -50,791,292.05 | -8,145,487.67 | -55,688,341.74 | -8,344,785.12 |
| Less depreciation of fixed assets due to provision of assets impairment | -318,546,577.09 | -47,781,986.56 | -275,532,612.46 | -41,329,891.88 |
| Employee compensation payable | 114,323,627.95 | 17,300,092.29 | 95,571,900.72 | 17,444,909.91 |
| Deferred incomes | 530,339,401.39 | 79,769,580.23 | 153,806,729.30 | 24,603,975.17 |
| Value-added income offset in land evaluation during merging | 24,830,399.13 | 3,724,559.87 | 25,601,886.53 | 3,840,282.98 |
| Amortized interest on finance leases | 17,746,905.56 | 2,662,035.83 | 13,250,787.79 | 1,987,618.17 |
| Total | 2,634,566,226.13 | 415,550,864.14 | 1,429,832,816.51 | 244,903,723.68 |
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Asset evaluation increment from business combination under different control | ||||
| Changes in the fair value of other debt investments | ||||
| Changes in fair value of investment by other equity instruments | ||||
| Income of interest-free liabilities discounted | 39,270,080.33 | 5,890,512.05 | 66,401,185.70 | 9,960,177.86 |
| Amortization of fixed assets less than that stipulated in the tax law | 2,014,647,721.36 | 302,197,158.22 | 692,207,544.25 | 132,244,295.52 |
| Assets profit from trading financial assets | 25,747,780.82 | 3,862,167.13 | ||
| Total | 2,079,665,582.51 | 311,949,837.40 | 758,608,729.95 | 142,204,473.38 |
| Item | Ending balance | Beginning balance |
| Temporary deductible difference | ||
| Deductible loss | 1,191,015,304.72 | 750,647,107.09 |
| Asset depreciation reserves | 93,967,516.39 | 103,882,871.68 |
| Total | 1,284,982,821.11 | 854,529,978.77 |
| Year | Ending amount | Beginning amount | Remarks |
| 2020 | 95,772,266.55 | ||
| 2021 | 93,613,531.47 | 97,840,095.54 | |
| 2022 | 101,491,933.53 | 116,377,449.84 | |
| 2023 | 75,229,312.46 | 118,719,387.60 | |
| 2024 | 218,117,138.83 | 321,937,907.56 | |
| 2025 | 702,563,388.43 | ||
| Total | 1,191,015,304.72 | 750,647,107.09 | / |
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Contract acquisition cost | ||||||
| Contract performance cost | ||||||
| Receivable return cost | ||||||
| Contract assets | ||||||
| Input taxes of overpaid VAT | 752,680,595.05 | 752,680,595.05 | 684,132,729.00 | 684,132,729.00 | ||
| Prepaid amount for engineering and equipment | 716,619,559.20 | 716,619,559.20 | 237,510,552.07 | 237,510,552.07 | ||
| Payable for share acquisition | 3,082,000.00 | 3,082,000.00 | 134,522,726.32 | 134,522,726.32 | ||
| Land prepayment | 74,640,589.20 | 74,640,589.20 | ||||
| Total | 1,547,022,743.45 | 1,547,022,743.45 | 1,056,166,007.39 | 1,056,166,007.39 |
| Item | Ending balance | Beginning balance |
| Pledged loans | ||
| Mortgage loans | 200,201,666.63 | |
| Guaranteed loans | 1,813,559,433.63 | 3,367,822,936.07 |
| Credit loans | 335,393,425.51 | 255,030,273.76 |
| Total | 2,349,154,525.77 | 3,622,853,209.83 |
| Guarantor | Guaranteed party | Guaranteed amount | Starting date of the guarantee | Expiration date of the guarantee |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 5,006,041.67 | 2020/1/16 | 2021/1/16 |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 45,054,375.00 | 2020/2/13 | 2021/2/13 |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 30,036,250.00 | 2020/4/3 | 2021/4/3 |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 30,032,083.33 | 2020/11/27 | 2021/11/27 |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 30,032,083.33 | 2020/12/9 | 2021/12/9 |
| Tongwei Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | 20,753,862.25 | 2020/11/25 | 2021/11/6 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 710,669.93 | 2020/10/19 | 2021/2/15 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 699,708.47 | 2020/10/19 | 2021/2/15 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,053,036.79 | 2020/10/26 | 2021/2/25 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 739,908.38 | 2020/11/15 | 2021/3/14 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 953,765.78 | 2020/11/25 | 2021/3/24 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,056,412.92 | 2020/11/25 | 2021/3/24 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 307,242.02 | 2020/11/25 | 2021/3/24 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,037,262.84 | 2020/12/4 | 2021/4/3 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 649,862.54 | 2020/12/4 | 2021/4/3 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 827,273.70 | 2020/12/4 | 2021/4/3 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 704,551.13 | 2020/12/7 | 2021/4/6 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 198,519.20 | 2020/12/7 | 2021/4/6 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 925,497.45 | 2020/12/8 | 2021/4/7 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 236,001.85 | 2020/12/8 | 2021/4/7 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 156,831.10 | 2020/12/8 | 2021/4/7 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 2,313,743.64 | 2020/12/11 | 2021/4/10 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 2,631,019.31 | 2020/12/14 | 2021/4/20 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,720,381.23 | 2020/12/31 | 2021/12/31 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 2,482,822.19 | 2020/10/14 | 2021/2/13 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 2,284,038.64 | 2020/11/3 | 2021/3/2 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,034,468.09 | 2020/11/12 | 2021/3/12 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 545,106.59 | 2020/12/4 | 2021/4/3 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,189,067.96 | 2020/12/15 | 2021/4/14 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,442,910.38 | 2020/12/2 | 2021/4/2 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 3,274,074.11 | 2020/11/24 | 2021/3/23 |
| Tongwei Co., Ltd. | Indonesia Tongwei Co., Ltd. | 1,388,246.19 | 2020/12/29 | 2021/4/28 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 1,292,750.57 | 2020/11/16 | 2021/2/17 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 608,507.94 | 2020/11/25 | 2021/2/23 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 1,923,655.60 | 2020/11/26 | 2021/2/24 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 837,104.91 | 2020/11/27 | 2021/2/25 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 1,799,164.15 | 2020/12/17 | 2021/3/17 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 849,422.51 | 2020/12/28 | 2021/3/29 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 1,994,823.85 | 2020/12/28 | 2021/3/29 |
| Tongwei Co., Ltd., Tongwei Vietnam | Tongta Tongwei Co., Ltd. | 1,730,775.83 | 2020/12/30 | 2021/3/30 |
| Tongwei Co., Ltd. | Vietnam Tongwei Co., Ltd. | 6,616,096.69 | 2020/10/13 | 2021/1/11 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,567,400.09 | 2020/10/12 | 2021/1/08 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 400,357.02 | 2020/10/29 | 2021/1/27 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 386,999.79 | 2020/10/29 | 2021/1/22 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,944,789.86 | 2020/11/03 | 2021/1/11 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 1,198,702.59 | 2020/11/17 | 2021/2/09 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 448,749.00 | 2020/11/20 | 2021/2/18 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 3,352,348.79 | 2020/11/30 | 2021/2/26 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,888,672.82 | 2020/12/01 | 2021/1/27 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,178,193.10 | 2020/12/08 | 2021/3/08 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 292,797.21 | 2020/12/10 | 2021/3/10 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 850,598.32 | 2020/12/16 | 2021/3/16 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 3,326,406.80 | 2020/12/16 | 2021/3/16 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 1,034,886.96 | 2020/12/22 | 2021/3/22 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,060,003.82 | 2020/12/29 | 2021/3/29 |
| Tongwei Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 694,262.10 | 2020/12/29 | 2021/3/29 |
| Tongwei Co., Ltd. | Tongwei Solar (Chengdu) Co., Ltd. | 6,538,384.82 | 2020/12/1 | 2021/5/28 |
| Tongwei Co., Ltd. | Sichuan Yongxiang Co., Ltd. | 73,780,000.00 | 2020/9/2 | 2021/3/1 |
| Total | 314,072,973.15 |
34. Derivative financial liabilities
□Applicable √Inapplicable
35. Notes payable
(1). Presentation of notes payable
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Category | Ending balance | Beginning balance |
| Commercial acceptance bills | ||
| Banker's acceptance bills | 9,363,914,654.37 | 5,248,895,767.77 |
| Letter of credit | 48,009,780.41 | 45,727,471.47 |
| Total | 9,411,924,434.78 | 5,294,623,239.24 |
| Guarantor | Guaranteed party | Guaranteed amount | Starting date of the guarantee | Expiration date of the guarantee |
| Tongwei Co., Ltd. | Tongwei Solar (Chengdu) Co., Ltd. | 78,360,000.00 | 2020/7/22 | 2021/1/22 |
| Tongwei Co., Ltd. | Tongwei Solar (Chengdu) Co., Ltd. | 100,000,000.00 | 2020/9/11 | 2021/3/11 |
| Total | 178,360,000.00 |
| Item | Ending balance | Beginning balance |
| Within one year | 3,345,411,733.19 | 2,515,471,429.20 |
| 1-2 years | 404,083,464.63 | 1,025,791,846.71 |
| 2-3 years | 145,845,168.26 | 48,997,595.66 |
| Over 3 years | 21,980,614.56 | 18,777,818.14 |
| Total | 3,917,320,980.64 | 3,609,038,689.71 |
| Item | Ending balance | Beginning balance |
| Payable for business activities | 1,552,527,877.70 | 1,285,230,601.77 |
| Payable for non- business activities | 2,364,793,102.94 | 2,323,808,087.94 |
| Total | 3,917,320,980.64 | 3,609,038,689.71 |
| Item | Ending balance | Beginning balance |
| Within one year | 31,301,784.79 | 46,261,702.91 |
| 1-2 years | 1,823,123.19 | 4,045,561.37 |
| 2-3 years | 1,947,192.85 | |
| Total | 35,072,100.83 | 50,307,264.28 |
| Item | Ending balance | Beginning balance |
| Advance payment | 2,302,728,492.73 | 1,484,683,326.76 |
| Total | 2,302,728,492.73 | 1,484,683,326.76 |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| I. Short-term compensation | 692,632,415.17 | 2,893,779,815.47 | 2,850,049,130.59 | 736,363,100.05 |
| II. Post-employment benefits - defined contribution plan | 40,847,073.58 | 40,847,073.58 | ||
| III. Dismissal welfare | 7,901,338.81 | 7,901,338.81 | ||
| IV. Current portion of other welfare | ||||
| Total | 692,632,415.17 | 2,942,528,227.86 | 2,898,797,542.98 | 736,363,100.05 |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| I. Wages, salaries, bonuses, allowances and subsidies | 661,427,496.63 | 2,588,209,031.25 | 2,556,018,211.22 | 693,618,316.66 |
| II. Employee benefits | 158,213,269.41 | 158,213,269.41 | ||
| III. Social insurance premium | 63,336,676.38 | 63,336,676.38 | ||
| Including: medical insurance premium | 57,130,949.71 | 57,130,949.71 | ||
| Industrial injury insurance premium | 1,667,977.03 | 1,667,977.03 | ||
| Maternity insurance premium | 4,537,749.64 | 4,537,749.64 | ||
| IV. Housing fund | 37,079.41 | 35,417,791.31 | 35,454,870.72 | |
| V. Labor union expenditure and employee education fund | 31,167,839.13 | 47,536,766.47 | 35,959,822.21 | 42,744,783.39 |
| VI. Short-term compensated absence | ||||
| VII. Short-term profit sharing plan | ||||
| VIII. Non-monetary welfare | 296,654.48 | 296,654.48 | ||
| IX. Others | 769,626.17 | 769,626.17 |
| Total | 692,632,415.17 | 2,893,779,815.47 | 2,850,049,130.59 | 736,363,100.05 |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| 1 .Basic retirement insurance | 39,239,483.23 | 39,239,483.23 | ||
| 2.Unemployment insurance premium | 1,607,590.35 | 1,607,590.35 | ||
| 3.Enterprise annuity | ||||
| Total | 40,847,073.58 | 40,847,073.58 |
| Item | Ending balance | Beginning balance |
| VAT | 17,055,192.80 | 50,438,638.48 |
| Enterprise income tax | 176,762,634.48 | 92,588,221.35 |
| Individual income tax | 10,437,660.41 | 9,901,760.58 |
| Property tax | 6,137,519.90 | 4,975,347.13 |
| Land use tax | 2,837,025.80 | 2,869,677.91 |
| Stamp tax | 3,578,837.17 | 2,003,732.92 |
| Others | 3,605,895.35 | 10,767,128.99 |
| Total | 220,414,765.91 | 173,544,507.36 |
| Item | Ending balance | Beginning balance |
| Interest payable | 53,828,469.22 | |
| Dividend payable | 1,188,940.27 | |
| Other payables | 743,639,264.91 | 558,243,859.36 |
| Total | 743,639,264.91 | 613,261,268.85 |
| Item | Ending balance | Beginning balance |
| Interest payable on long-term loans for repayment of interest by installments and repayment of principal | 5,108,380.87 | |
| Interest of corporate bonds | 44,052,827.59 | |
| Interest payable on short-term loans | 4,667,260.76 | |
| Total | 53,828,469.22 |
| Item | Ending balance | Beginning balance |
| Common stock dividend | 1,188,940.27 | |
| Total | 1,188,940.27 |
| Item | Ending balance | Beginning balance |
| Current accounts of affiliated units | 1,119,397.77 | 30,373,880.57 |
| Margin and deposit | 499,462,015.47 | 366,860,864.13 |
| Equity transfer | 91,500,000.00 | 1,900,000.00 |
| Others | 151,557,851.67 | 159,109,114.66 |
| Total | 743,639,264.91 | 558,243,859.36 |
| Item | Ending balance | Unpaid or carry-forward reasons |
| Inner Mongolia Taimengda Material Management Co., Ltd. | 76,000,000.00 | Margin during the settlement period |
| Total | 76,000,000.00 | / |
| Item | Ending balance | Beginning balance |
| Long-term loans due within one year | 1,076,804,937.39 | 139,118,287.89 |
| Long-term payables due within one year | 1,456,897,221.32 | 1,003,066,784.95 |
| Total | 2,533,702,158.71 | 1,142,185,072.84 |
| Item | Ending balance | Beginning balance |
| Credit loans | 1,164,229.82 | |
| Guaranteed loans | 570,152,809.18 | 112,384,300.00 |
| Pledged loans | 16,733,987.89 | |
| Pledge + guaranteed loan | 90,154,083.77 | |
| Mortgage + guaranteed loan | 300,403,333.34 | 10,000,000.00 |
| Mortgage + pledge + guaranteed loan | 114,930,481.28 | |
| Total | 1,076,804,937.39 | 139,118,287.89 |
| Guarantee | Guaranteed party | Amount guaranteed | Guaranteed start date | Guaranteed due date |
| Tongwei Co., Ltd. | Tongwei Solar (Chengdu) Co., Ltd. | 201,138,888.89 | 2019/11/27 | 2021/11/26 |
| Tongwei Co., Ltd. | Tongwei Solar (Hefei) Co., Ltd. | 300,403,333.34 | 2019/10/29 | 2021/10/29 |
| Tongwei Co., Ltd. | Tongwei New Energy Co., Ltd. | 5,147,353.92 | 2019/3/18 | 2021/5/20 |
| Tongwei Co., Ltd. | Tongwei New Energy Co., Ltd. | 5,000,000.00 | 2019/3/18 | 2021/11/20 |
| Tongwei Co., Ltd. | Aohanqi Xinhuo New Energy Co., Ltd. | 20,579,104.17 | 2020/3/27 | 2021/3/26 |
| Tongwei Co., Ltd. | Aohanqi Xinhuo New Energy Co., Ltd. | 20,000,000.00 | 2020/3/27 | 2021/9/26 |
| Tongwei Co., Ltd. | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 11,109,555.56 | 2019/6/28 | 2021/4/10 |
| Tongwei Co., Ltd. | Binzhou Zhanhua District Tonghui Ocean Technology Co., Ltd. | 15,118,833.33 | 2020/12/30 | 2021/6/20 |
| Tongwei Co., Ltd. | Binzhou Zhanhua District Tonghui Ocean Technology Co., Ltd. | 15,000,000.00 | 2020/12/30 | 2021/12/20 |
| Tongwei Co., Ltd. | Tianjin Binhai New Area Tongli New Energy Co., Ltd. | 10,397,833.34 | 2020/6/30 | 2021/6/10 |
| Tongwei Co., Ltd. | Tianjin Binhai New Area Tongli New Energy Co., Ltd. | 17,500,000.00 | 2020/6/30 | 2021/12/10 |
| Tongwei Co., Ltd. | Xichang Tongwei New Energy Co., Ltd. | 3,417,502.91 | 2020/9/27 | 2021/6/21 |
| Tongwei Co., Ltd. | Xichang Tongwei New Energy Co., Ltd. | 3,300,000.00 | 2020/9/27 | 2021/12/21 |
| Tongwei Co., Ltd. | Sihong Tongli New Energy Co., Ltd. | 12,446,755.64 | 2019/10/20 | 2021/4/20 |
| Tongwei Co., Ltd. | Sihong Tongli New Energy Co., Ltd. | 38,000,000.00 | 2019/10/20 | 2021/10/20 |
| Tongwei Co., Ltd. | Gaoan Tongwei Fishery & PV Integration Technology Co., Ltd. | 8,258,131.39 | 2020/4/1 | 2021/6/21 |
| Tongwei Co., Ltd. | Gaoan Tongwei Fishery & PV Integration Technology Co., Ltd. | 8,000,000.00 | 2020/4/1 | 2021/12/21 |
| Tongwei Co., Ltd. | Changde Dingcheng Tongwei New Energy Co., Ltd. | 4,809,494.79 | 2020/9/11 | 2021/6/20 |
| Tongwei Co., Ltd. | Changde Dingcheng Tongwei New Energy Co., Ltd. | 7,000,000.00 | 2020/9/11 | 2021/12/20 |
| Total | 706,626,787.28 |
| Item | Ending balance | Beginning balance |
| Short-term bonds payable | 1,099,583,333.30 | |
| Payable return payment | ||
| Tax amount to be charged off | 108,250,357.80 | 36,454,687.93 |
| Provisions made by guarantee companies | 21,953,762.73 | 24,221,753.62 |
| Total | 130,204,120.53 | 1,160,259,774.85 |
Unit:Yuan Currency: RMB
| Bond name | Face value | Issuance date | Bond term | Issuance amount | Beginning balance | Issuance in this period | Interest accrued according to face value | Amortization of premium or discount | Repayment in the current period | Ending balance |
| 2019 Phase I Short-Term Financing Bill of Tongwei Co., Ltd. | 100.00 | 2019/3/12 | 365 days | 500,000,000.00 | 499,833,333.30 | 5,009,787.43 | 504,843,120.73 | |||
| 2019 Phase IV Short-Term Financing Bill of Tongwei Co., Ltd. | 100.00 | 2019/9/20 | 270 days | 300,000,000.00 | 299,750,000.00 | 6,353,276.45 | 306,103,276.45 | |||
| 2019 Phase V Short-Term Financing Bill of Tongwei Co., Ltd. | 100.00 | 2019/9/27 | 100days | 300,000,000.00 | 300,000,000.00 | 132,938.69 | 300,132,938.69 | |||
| 2020 Phase I Super & Short-term Financing Bill of Tongwei Co., Ltd. | 100.00 | 2020/1/14 | 150 days | 300,000,000.00 | 300,000,000.00 | 5,286,885.25 | 250,000.00 | 305,536,885.25 | ||
| 2020 Phase II Super & Short-term Financing Bill of Tongwei Co., Ltd. | 100.00 | 2020/2/18 | 180 days | 500,000,000.00 | 500,000,000.00 | 8,852,459.02 | 500,000.00 | 509,352,459.02 | ||
| Total | / | / | / | 1,900,000,000.00 | 1,099,583,333.30 | 800,000,000.00 | 25,635,346.84 | 750,000.00 | 1,925,968,680.14 |
Other notes:
√Applicable □Inapplicable
(1) On May 28, 2018, the Company received the Notification of Registration Acceptance (ZSXZ[2018] SCP No. 151) issued by National Association of Financial Market Institutional Investors showingthe Association has receipted the registration for RMB 3 billion of Super & Short-term Commercial Paperof the Company, and the registration shall be effective for two years since the inscribed date of thisNotification and will be co-lead underwritten by China Postal Savings Bank Co., Ltd., Industrial BankCo., Ltd. and Agricultural Bank of China Limited. On November 12, 2020, the Company received theNotification of Registration Acceptance (ZSXZ [2020] SCP No. 631) issued by National Association ofFinancial Market Institutional Investors showing the Association has receipted the registration for RMB3 billion of Super & Short-term Commercial Paper of the Company, and the registration shall be effectivefor two years since the inscribed date of this Notification and will be co-lead underwritten by China PostalSavings Bank Co., Ltd., China Minsheng Bank and Industrial Bank Co., Ltd.
(2) The provision for liability reserves not yet due shall be accrued at 50% of the guaranteed income,and the accrued provision for liability reserves not yet due shall be reversed after the cancellation of theguarantee liability upon expiration. The provision of guarantee compensation reserves shall be 1% of theending guarantee balance.
45. Long-term loans
(1). Classification of long-term loans
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Pledged loans | 729,617,723.74 | |
| Guaranteed loans | 3,255,292,828.00 | 2,357,370,781.96 |
| Credit loans | 769,970,000.00 | 500,000,000.00 |
| Pledge + guaranteed loan | 1,101,062,711.34 | |
| Mortgage + guaranteed loan | 502,000,000.00 | |
| Mortgage + pledge + guaranteed loan | 1,170,260,000.00 | |
| Total | 6,296,585,539.34 | 4,088,988,505.70 |
| Guarantor | Guaranteed party | Guaranteed amount | Starting date of the guarantee | Expiration date of the guarantee |
| Tongwei Co., Ltd. | Tongwei New Energy Co., Ltd. | 98,260,000.00 | 2019/3/18 | 2036/3/18 |
| Tongwei Co., Ltd. | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 69,000,000.00 | 2019/6/28 | 2027/6/10 |
| Tongwei Co., Ltd. | Sihong Tongli New Energy Co., Ltd. | 681,987,360.10 | 2019/10/20 | 2031/4/20 |
| Tongwei Co., Ltd. | Aohanqi Xinhuo New Energy Co., Ltd. | 340,000,000.00 | 2020/3/27 | 2030/3/26 |
| Tongwei Co., Ltd. | Gaoan Tongwei Fishery & PV Integration Technology Co., Ltd. | 156,900,000.00 | 2020/4/1 | 2034/12/21 |
| Tongwei Co., Ltd. | Tianjin Binhai New Area Tongli New Energy Co., Ltd. | 252,500,000.00 | 2020/6/30 | 2032/6/10 |
| Tongwei Co., Ltd. | Changde Dingcheng Tongwei New Energy Co., Ltd. | 166,575,351.24 | 2020/9/11 | 2032/8/10 |
| Tongwei Co., Ltd. | Xichang Tongwei New Energy Co., Ltd. | 76,100,000.00 | 2020/9/27 | 2033/9/27 |
| Tongwei Co., Ltd. | Binzhou Zhanhua District Tonghui Ocean Technology Co., Ltd. | 430,000,000.00 | 2020/12/30 | 2032/12/3 |
| Tongwei Co., Ltd. | Tongwei Solar (Chengdu) Co., Ltd. | 620,000,000.00 | 2019/11/27 | 2024/11/26 |
| Total | 2,891,322,711.34 |
① The loan of RMB 98,260,000.00 obtained by Tongwei New Energy Co., Ltd. was pledged by thepowerplant assets of the wholly-owned subsidiary of Tongwei Huijin New Energy Co., Ltd., a subsidiaryof Tongwei New Energy Co., Ltd. The right of income from the electricity fee of the powerplant is pledgedby the Company.
② The loan of RMB 69,000,000.00 obtained by Panzhihua Tongwei Huijin New Energy Co., Ltd.was pledged by the powerplant assets of Panzhihua Tongwei Huijin New Energy Co., Ltd., and thepowerplant electricity fee income right was pledged by Panzhihua Tongwei Huijin New Energy Co. Theloan is guaranteed by the Company.
③ The loan of RMB 681,987,360.10 obtained by Sihong Tongli New Energy Co., Ltd. was pledgedby the powerplant electricity fee income right of Sihong Tongli New Energy Co., Ltd., which was securedby Hengfeng County Jingxin Power Co., Ltd. and Huludao City Lianshan Tongwei New Energy Co., Ltd.and the shares held by Sihong Tongli New Energy Co., Ltd. provide equity pledge guarantee, and theCompany provides guarantee.
④The loan of RMB 340,000,000.00 obtained by Aohanqi Xinhuo New Energy Co., Ltd. waspledged and guaranteed by the powerplant assets of Aohanqi Xinhuo New Energy Co., Ltd., and thepower income right of the powerplant was pledged and guaranteed by the 80% equity of AohanqiXinhuo New Energy Co., Ltd.; and the Company provides guarantee.
⑤ The loan of RMB 156,900,000.00 obtained by Gaoan Tongwei Yuguang Integrated TechnologyCo., Ltd. was pledged and guaranteed by the powerplant assets of Gaoan Tongwei Yuguang IntegratedTechnology Co., Ltd. The power income right of the powerplant is pledged and guaranteed by theCompany.
⑥ The loan of RMB 252,500,000.00 obtained by Tianjin Binhai New Area Tongli New Energy Co.,Ltd. was pledged and guaranteed by the powerplant electricity fee income right of Tianjin Binhai NewArea Tongli New Energy Co., Ltd., and 100% of equity pledge guarantee of the Tianjin Binhai New Areaheld by Tongwei New Energy Technology (Beijing) Co., Ltd.; and the Company provides guarantee.
⑦ The loan of RMB 166,575,351.24 obtained by Changde Dingcheng Tongwei New Energy Co.,Ltd. was pledged and guaranteed by the powerplant power income right of Changde Dingcheng TongweiNew Energy Co., Ltd., and the Company provides guarantee.
⑧ The loan of RMB 76,100,000.00 obtained by Xichang Tongwei New Energy Co., Ltd. waspledged and guaranteed by the powerplant assets of Xichang Tongwei New Energy Co., Ltd., and thepower income right of the powerplant was pledged and guaranteed; and the Company provides guarantee.
⑨The loan of RMB 430,000,000.00 obtained by Tonghui Ocean Technology Co., Ltd. in ZhanhuaDistrict of Binzhou City was pledged and guaranteed by the powerplant assets of Tonghui OceanTechnology Co., Ltd. in Zhanhua District, Binzhou City. (Shenzhen) Co., Ltd. The powerplant fee equitywas used as the pledge and guarantee; 51% of stock equity of Binzhou Zhanhua District Tonghui OceanTechnology Co., Ltd. was used as pledge guarantee, and the Company provides guarantee.
Other notes, including the interest rate collar:
√Applicable □Inapplicable
The interest rate of long-term loans is between 2.65% and LPR+0.35% with five-year.
46. Bonds payable
(1). Bonds payable
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| 2019 Convertible Corporate Bonds of Tongwei Co., Ltd. | 4,212,346,552.36 | |
| 2020 phase I medium-term notes of Tongwei Co., Ltd. | 410,096,446.33 | |
| Total | 410,096,446.33 | 4,212,346,552.36 |
Unit:Yuan Currency:RMB
| Bond name | Face value | Issuance date | Bond term | Issuance amount | Beginning balance | Issuance in this period | Interest accrued according to face value | Amortization of premium or discount | Repayment in the current period | Ending balance |
| 2019 Convertible Corporate Bonds of Tongwei Co., Ltd. | 100.00 | 2019/3/18 | 6 years | 5,000,000,000.00 | 4,212,346,552.36 | 5,169,637.71 | 44,242,854.61 | 4,261,759,044.68 | ||
| 2020 Phase I Medium-term Notes of Tongwei Co., Ltd. | 100.00 | 2020/6/17 | 3 years | 400,000,000.00 | 400,000,000.00 | 11,093,333.31 | 203,113.02 | 1,200,000.00 | 410,096,446.33 | |
| Total | / | / | / | 5,400,000,000.00 | 4,212,346,552.36 | 400,000,000.00 | 16,262,971.02 | 44,445,967.63 | 4,262,959,044.68 | 410,096,446.33 |
(3). Explanation of conversion condition and conversion time of convertible corporate bonds
√Applicable □Inapplicable
1) According to the twentieth meeting of the sixth board of directors of the Company held onDecember 15, 2017, and the resolutions of the first extraordinary general meeting of shareholders of 2018held on January 5, 2018, after approved by Reply on Approval of the Public Issuance of Convertible Bondsof Tongwei Co., Ltd. (ZJXK [2018] No. 1730) of China Securities Regulatory Commission on October 27,2018, the Company publicly issued 5 billion yuan of convertible bonds (6 years) on March 18, 2019; afterdeducting the sponsorship and underwriting costs, as of March 22, 2019, the Company received RMB4,942,500,000.00 for the subscription of convertible bonds. The Company received the approval of theSelf-Regulatory Decision [2019] No.052 of Shanghai Stock Exchange, and the 5 billion Convertiblecorporate bonds of the Company will be listed for trading on the Shanghai Stock Exchange on April 10,2019. The abbreviation of the bond is "Tongwei Convertible Bonds" and the bond code is "110054".According to the Prospectus of Tongwei Co., Ltd. about Public Issuance of A-Shares ConvertibleCorporate Bonds, the conversion price is RMB 12.44 yuan/share. As the Company reviewed and approvedat the 2018 Annual General Meeting of Shareholders, based on the total share capital on the registrationdate of the dividend payment, a cash dividend of RMB 1.60 (including tax) will be distributed to allshareholders for every 10 shares; therefore the convertible bond conversion price was adjusted to 12.28yuan/share, which took effect on May 23, 2019; the company’s shares had 15 shares in 30 consecutivetrading days from January 14, 2020 to March 3, 2020. The closing price of each trading day was not lessthan 130% of the current conversion price of "Tongwei Convertible Bonds" (i.e 15.96 yuan/share), theredemption clause of "Tongwei Convertible Bonds" was triggered, which was reviewed at the sixthmeeting of the seventh board of directors. The Company was approved to exercise the right of earlyredemption and redeem all the "Tongwei Convertible Bonds" registered on the "redemption registrationdate". As of the redemption registration date (March 16, 2020), the cumulative face value of RMB4,979,353,000 was " Tongwei Convertible Bonds", which have been converted into company stocks, with405,483,464 shares converted. Shanghai Branch was registered and settled in China on March 17, 2020,and the industrial and commercial registration was completed on May 19, 2020. The Company hasredeemed 206,470 "Tongwei Convertible Bonds" with a face value of RMB 20,647,000. The total amountof redemption and redemption was RMB 20,750,028.53. The redemption payment date was March 17,2020.
2) On April 2, 2020, the Company obtained the Notice of Acceptance of Registration issued by theChina Interbank Market Exchange Association (ZSXZ [2020] MTN311), and accepted the company'smedium-term note registration with a registered amount of 5 billion yuan. The quota is valid for 2 yearsfrom the date of inscription of the notice and is jointly underwritten by China Postal Savings Bank Co.,Ltd. and China Securities Co., Ltd.
(4). Explanation of other financial instruments classified as financial liabilitiesBasic information of other financial instruments as preferred shares and perpetual bonds externallyissued at the end of period
□Applicable √Inapplicable
Variation to other financial instruments as preferred shares and perpetual bonds externally issued at theend of period
□Applicable √Inapplicable
Basis for financial instruments classified as financial liabilities:
□Applicable √Inapplicable
Other notes:
□Applicable √Inapplicable
47. Lease liabilities
□Applicable √Inapplicable
48. Long-term payables
Item presentation
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Ending balance | Beginning balance |
| Long-term payables | 2,525,722,275.65 | 1,900,657,753.72 |
| Special payables | 850,000.00 | 850,000.00 |
| Total | 2,526,572,275.65 | 1,901,507,753.72 |
| Item | Beginning balance | Ending balance |
| Net deferred debt repayment | 330,905,754.60 | 488,862,566.78 |
| Finance lease payable | 2,194,816,521.05 | 1,411,795,186.94 |
| Total | 2,525,722,275.65 | 1,900,657,753.72 |
| Item | Ending balance | Beginning balance |
| Socialized Service Company in Hefei High-tech Industrial Development Zone | 452,115,821.87 | 602,821,095.82 |
| Hefei High-tech Innovation Park Management Co., Ltd. | 59,021,050.61 | 78,694,734.21 |
| Hefei High-tech Construction Investment Group Company | 44,126,880.00 | 58,835,840.00 |
| Total original value of liabilities | 555,263,752.48 | 740,351,670.03 |
| Less: unrecognized financing expenses measured at fair value | 39,270,080.33 | 66,401,185.70 |
| Net debt deferred payments | 515,993,672.15 | 673,950,484.33 |
| Including: due within one year | 185,087,917.55 | 185,087,917.55 |
| Due over one year | 330,905,754.60 | 488,862,566.78 |
| Item | Ending balance | Beginning balance |
| Finance lease payable | 2,356,443,895.93 | 1,521,164,138.14 |
| Less: unrecognized financing costs | 161,627,374.88 | 109,368,951.20 |
| Net finance lease payables | 2,194,816,521.05 | 1,411,795,186.94 |
| Item | Beginning balance | Ending balance |
| Finance lease | 2,447,704,832.76 | 3,773,885,404.96 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 747,038,538.93 | 418,719,303.30 |
| 2. CITIC Financing Leasing Co., Ltd. | 1,223,643,182.31 | 1,844,349,985.40 |
| 3. SPDB Financial Leasing Co., Ltd. | 412,623,111.52 | 446,412,861.36 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 64,400,000.00 | 891,304,326.00 |
| 5. Industrial Financial Leasing Co., Ltd. | 173,098,928.90 | |
| Less: unrecognized financing costs | 217,930,778.42 | 307,259,580.14 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 27,629,534.11 | 13,348,710.73 |
| 2. CITIC Financing Leasing Co., Ltd. | 135,824,354.86 | 173,843,439.69 |
| 3. SPDB Financial Leasing Co., Ltd. | 48,126,152.27 | 49,804,509.85 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 6,350,737.18 | 48,712,778.06 |
| 5. Industrial Financial Leasing Co., Ltd. | 21,550,141.81 | |
| Net finance lease payments | 2,229,774,054.34 | 3,466,625,824.82 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 719,409,004.82 | 405,370,592.57 |
| 2. CITIC Financing Leasing Co., Ltd. | 1,087,818,827.45 | 1,670,506,545.71 |
| 3. SPDB Financial Leasing Co., Ltd. | 364,496,959.25 | 396,608,351.51 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 58,049,262.82 | 842,591,547.94 |
| 5. Industrial Financial Leasing Co., Ltd. | 151,548,787.09 | |
| Less: financial lease payments due within one year | 926,540,694.62 | 1,417,441,509.03 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 463,457,911.41 | 282,710,178.03 |
| 2. CITIC Financing Leasing Co., Ltd. | 339,702,998.01 | 549,153,605.74 |
| 3. SPDB Financial Leasing Co., Ltd. | 104,779,785.20 | 121,714,324.58 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 18,600,000.00 | 431,585,260.00 |
| 5. Industrial Financial Leasing Co., Ltd. | 32,278,140.68 | |
| Less: unrecognized financing expenses due within one year | 108,561,827.22 | 145,632,205.26 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 21,188,716.25 | 9,746,923.42 |
| 2. CITIC Financing Leasing Co., Ltd. | 64,649,046.98 | 79,859,241.12 |
| 3. SPDB Financial Leasing Co., Ltd. | 20,021,411.54 | 19,941,254.45 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 2,702,652.45 | 29,697,034.62 |
| 5. Industrial Financial Leasing Co., Ltd. | 6,387,751.65 | |
| Net finance lease payments due within one year | 817,978,867.40 | 1,271,809,303.77 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 442,269,195.16 | 272,963,254.61 |
| 2. CITIC Financing Leasing Co., Ltd. | 275,053,951.03 | 469,294,364.62 |
| 3. SPDB Financial Leasing Co., Ltd. | 84,758,373.66 | 101,773,070.13 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 15,897,347.55 | 401,888,225.38 |
| 5. Industrial Financial Leasing Co., Ltd. | 25,890,389.03 | |
| Finance lease payments due over one year | 1,521,164,138.14 | 2,356,443,895.93 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 283,580,627.52 | 136,009,125.27 |
| 2. CITIC Financing Leasing Co., Ltd. | 883,940,184.30 | 1,295,196,379.66 |
| 3. SPDB Financial Leasing Co., Ltd. | 307,843,326.32 | 324,698,536.78 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 45,800,000.00 | 459,719,066.00 |
| 5. Industrial Financial Leasing Co., Ltd. | 140,820,788.22 | |
| Less: unrecognized financing expenses due over one year | 109,368,951.20 | 161,627,374.88 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 6,440,817.86 | 3,601,787.31 |
| 2. CITIC Financing Leasing Co., Ltd. | 71,175,307.88 | 93,984,198.57 |
| 3. SPDB Financial Leasing Co., Ltd. | 28,104,740.73 | 29,863,255.40 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 3,648,084.73 | 19,015,743.44 |
| 5. Industrial Financial Leasing Co., Ltd. | 15,162,390.16 | |
| Net finance lease payments due over one year | 1,411,795,186.94 | 2,194,816,521.05 |
| Including: 1. China Huarong Financial Leasing Co., Ltd. | 277,139,809.66 | 132,407,337.96 |
| 2. CITIC Financing Leasing Co., Ltd. | 812,764,876.42 | 1,201,212,181.09 |
| 3. SPDB Financial Leasing Co., Ltd. | 279,738,585.59 | 294,835,281.38 |
| 4. Jiangsu Financial Leasing Co., Ltd. | 42,151,915.27 | 440,703,322.56 |
| 5. Industrial Financial Leasing Co., Ltd. | 125,658,398.06 |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | Reason of formation |
| Special fund for agricultural credit guarantee of Tongwei agricultural guarantee | 850,000.00 | 850,000.00 | |||
| Total | 850,000.00 | 850,000.00 | / |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | Reason of formation |
| Government subsidies | 544,324,456.73 | 327,674,941.00 | 89,725,680.59 | 782,273,717.14 | |
| Total | 544,324,456.73 | 327,674,941.00 | 89,725,680.59 | 782,273,717.14 | / |
| Liability items | Beginning balance | Newly increased amount of subsidy in the current period | Amount of non-operating income of current period | Other income amount included in the current period | Other changes | Ending balance | Related to assets/related to income |
| 2.3GW one project one discussion fixed asset investment rewards | 120,000,000.00 | 8,636,444.99 | 111,363,555.01 | Related to assets | |||
| Fixed investment | 56,579,428.55 | 55,000,000.00 | 11,742,239.88 | 99,837,188.67 | Related to assets |
| subsidy at Phase II | |||||||
| Fixed asset investment subsidy | 39,757,270.40 | 37,000,000.00 | 6,565,611.84 | 70,191,658.56 | Related to assets | ||
| Land investment subsidy | 58,983,050.85 | 1,220,339.04 | 57,762,711.81 | Related to assets | |||
| Special fund for infrastructure construction | 57,552,400.00 | 1,918,413.32 | 55,633,986.68 | Related to assets | |||
| High-purity polysilicon subsidy | 41,700,065.67 | 1,604,296.20 | 40,095,769.47 | Related to assets | |||
| Fixed assets technological transformation project subsidies of " Post-award and Subsidy Fund" | 43,732,897.16 | 5,660,190.95 | 38,072,706.21 | Related to assets | |||
| 2GW intelligent factory skills upgrading project | 33,435,780.27 | 5,090,000.00 | 8,088,900.13 | 30,436,880.14 | Related to assets | ||
| Special subsidy for 1GW project fixed assets and sewage station | 30,012,000.00 | 4,392,000.00 | 25,620,000.00 | Related to assets | |||
| Baotou's financial emerging strategic subsidy | 23,263,888.90 | 2,083,333.32 | 21,180,555.58 | Related to assets | |||
| Triple one innovation fixed assets subsidies | 802,330.87 | 17,471,200.00 | 1,662,311.96 | 16,611,218.91 | Related to assets | ||
| New energy project subsidy | 18,888,888.88 | 1,666,666.68 | 17,222,222.20 | Related to assets | |||
| Tianjin feed relocation compensation | 20,793,751.82 | 4,694,164.68 | 16,099,587.14 | Related to assets | |||
| Provincial special fund for strategic emerging industries projects in 2018 | 17,614,678.88 | 2,201,834.88 | 15,412,844.00 | Related to assets | |||
| Compensation for Huai'an feed relocation | 17,777,215.73 | 2,794,704.48 | 14,982,511.25 | Related to assets | |||
| Subsidy for research and development of instruments and equipment | 12,246,615.80 | 1,517,196.26 | 10,729,419.54 | Related to assets |
| Provincial special fund for strategic emerging industries projects in 2017 | 10,658,853.47 | 1,438,998.84 | 9,219,854.63 | Related to assets | |||
| Compensation for Chongqing Tongwei relocation | 10,923,076.22 | 2,061,528.36 | 8,861,547.86 | Related to assets | |||
| Other items related to assets | 106,332,336.62 | 30,259,341.00 | 15,382,744.47 | -441,042.54 | 120,767,890.61 | Related to assets | |
| Other items related to income | 822,326.64 | 5,302,000.00 | 1,294,384.42 | -2,658,333.35 | 2,171,608.87 | Related to income | |
| Total | 544,324,456.73 | 327,674,941.00 | 86,626,304.70 | -3,099,375.89 | 782,273,717.14 |
| Beginning balance | Increase (+)/Decrease (-) During the Period | Ending balance | |||||
| Issuance New shares issued | Allotment | Turned from capital reserves | Others | Subtotal | |||
| Total number of shares | 3,882,594,596 | 213,692,500 | 405,261,088 | 618,953,588 | 4,501,548,184 | ||
| Financial instrument externally issued | Beginning | Increase in the current period | Decrease in the current period | Ending |
About changes and causes thereof in increase/decrease of other equity instruments in the current periodand basis of related accounting treatment:
√Applicable □Inapplicable
The decrease in this period is due to the fact that the closing price of the Company’s shares for 15trading days within 30 consecutive trading days from January 14, 2020 to March 3, 2020 is not less than130% of the current conversion price of "Tongwei Convertible Bonds" (i.e.15.96 yuan/share), triggeringthe redemption clause of “Tongwei Convertible Bonds” (110054). The sixth meeting of the seventh boardof directors approved the Company to perform the early redemption right to redeem all registered“Tongwei Convertible Bonds. As of the redemption registration date (March 16, 2020), the cumulativeface value of RMB 4,979,353,000 “Tongwei Convertible Bonds” was converted to RMB 20,647,000; andthe transfer corresponding other equity instruments is carried forward into the capital reserves.Other notes
□Applicable √Inapplicable
55. Capital reserves
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| Capital premium (share premium) | 5,669,871,396.23 | 10,438,332,283.56 | 4,099,349.18 | 16,104,104,330.61 |
| Other capital reserves | 2,793,404.27 | 8,196.83 | 1,212,144.27 | 1,589,456.83 |
| Total | 5,672,664,800.50 | 10,438,340,480.39 | 5,311,493.45 | 16,105,693,787.44 |
| Quantity | Book value | Quantity | Book value | Quantity | Book value | Quantity | Book value | |
| 2019 Convertible Corporate Bonds of Tongwei Co., Ltd. | 49,972,690 | 854,235,969.85 | 49,972,690 | 854,235,969.85 | ||||
| Total | 49,972,690 | 854,235,969.85 | 49,972,690 | 854,235,969.85 |
Chengdu Tongwei Automation Equipment Co., Ltd. was changed from 62.95% to 80.00%, forming anequity transaction increased capital reserves-equity premium of RMB 296,198.08.Note 2: The share premium decreased by RMB 4,099,349.18, including:
(1) In 2020, the Company increased the capital of Sichuan Tongwei Food Co., Ltd. by RMB44,500,000.00. After the capital increase, the Company’s shareholding in Sichuan Tongwei Food Co., Ltd.was changed from 70.00% to 80.00%, forming an equity transaction to reduce capital-share premium of3,062,846.31 yuan.
(2) In May 2020, the Company’s subsidiary Tongwei Solar Co., Ltd. negotiated with Fu Jiayun toacquire the 0.6% equity of Sichuan Yongxiang Silicon Materials Co., Ltd. After the equity transfer, theCompany’s subsidiary Tongwei Solar Co., Ltd., the Company’s shareholding ratio in Sichuan YongxiangSilicon Materials Co., Ltd. was changed from 91.55% to 92.15%. The transaction was an equitytransaction. According to the accounting standards, the difference between the purchase price and theequity ratio of the Company’s net assets was 295,878.77 yuan; and capital reserves-equity premium wasreduced.
(3) In August 2020, Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the company,negotiated with Feng Dezhi and others to acquire 6.01% of the shares of Tongwei Huijin New Energy Co.,Ltd. After the equity transfer, the company's wholly-owned subsidiary, the Company’s Tongwei NewEnergy Co., Ltd.’s shareholding ratio in Tongwei Huijin New Energy Co., Ltd. was changed from 88.75%to 94.75%. The difference in assets was RMB 617,462.18, and the capital reserves-equity premium wasreduced.
(4) In December 2020, Sichuan Tongwei Food Co., Ltd., the holding subsidiary of the company,negotiated with Xue Feng and others to acquire 2.06% of the equity of Sichuan Tongwei Sanlian AquaticProducts Co., Ltd. After the equity transfer, the Company’s holding subsidiary Sichuan Tongwei FoodCo., Ltd.’s shareholding ratio in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. was changed from
53.57% to 55.62%. The transaction was an equity transaction. According to the accounting standards, thepurchase price and the equity ratio of the Company’s net assets were calculated. The difference was RMB123,161.92, and the capital reserves-equity premium was reduced.
Note 3: the increase in other capital reserves, amounted to RMB 8,196.83, is due to changes in capitalreserves caused by capital increase in the equity ratio of Lijiang LONGi Silicon Materials Co., Ltd. TheCompany adjusted its long-term equity investment and capital reserves-other capital reserves of RMB8,196.83 based on the proportion of equity.
Note 4: the decrease of other capital reserves by RMB 1,212,144.27 was due to the fact that ChengduTongwei Industrial Co., Ltd. was no longer included in the scope of consolidation. Chengdu TongweiIndustrial Co., Ltd. used land occupation compensation in previous years for the demolition and restorationof gate walls and other demolition and restoration projects. The capital reserves of RMB 1,212,144.27were transferred out.
56. Treasury shares
□Applicable √Inapplicable
57. Other comprehensive income
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Beginning balance | Amount in the current period | Ending balance | |||||
| Amount incurred before income tax in the current period | Less: Profit or loss included in other comprehensive incomes at early stage and transferred in the current period | Less: Profit or loss included in other comprehensive incomes at early stage and transferred to the retained earnings in the current period | Less: income tax expenses | After-tax amount attributable to parent company | After-tax amount attributable to minority shareholders | |||
| I. Other comprehensive income that cannot be reclassified through profit or loss | 6,697,557.94 | 59,742.91 | 59,742.91 | 6,757,300.85 | ||||
| Including: changes arising from re-measurement of the defined benefit plan | ||||||||
| Other comprehensive incomes that cannot be reclassified into profit and loss under the equity method | ||||||||
| Changes in fair value of investment by other equity instruments | 6,697,557.94 | 59,742.91 | 59,742.91 | 6,757,300.85 | ||||
| Changes in fair value of the enterprise’s credit risk | ||||||||
| II. Other comprehensive income to be reclassified into profit or loss | -38,497,758.99 | -42,173,763.58 | -42,173,763.58 | -80,671,522.57 | ||||
| Including: other comprehensive income to be reclassified through profit or loss under the equity method | ||||||||
| Changes in the fair value of other debt investments | ||||||||
| Amount of financial assets reclassified into other comprehensive income | ||||||||
| Impairment provision of credit in other debt investments | ||||||||
| Cash flow hedge reserves | ||||||||
| Translation difference of foreign currency financial statements | -38,497,758.99 | -42,173,763.58 | -42,173,763.58 | -80,671,522.57 | ||||
| Total other comprehensive income | -31,800,201.05 | -42,114,020.67 | -42,114,020.67 | -73,914,221.72 | ||||
58. Special reserves
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| Safety production fee | 18,057,814.87 | 46,066,158.86 | 47,722,910.66 | 16,401,063.07 |
| Total | 18,057,814.87 | 46,066,158.86 | 47,722,910.66 | 16,401,063.07 |
| Item | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance |
| Statutory surplus reserves | 564,141,320.54 | 361,181,041.90 | 925,322,362.44 | |
| Total | 564,141,320.54 | 361,181,041.90 | 925,322,362.44 |
| Item | Current period | Previous period |
| Undistributed profit at the end of the previous period before adjustment | 6,617,152,692.38 | 4,755,055,633.39 |
| Total number of undistributed profit at beginning of adjustment (adjustment +/-) | ||
| Undistributed profit at the beginning of the period after adjustment | 6,617,152,692.38 | 4,755,055,633.39 |
| Add: net profit attributable to owners of parent company in the current period | 3,607,923,359.56 | 2,634,568,828.17 |
| Less: appropriation of statutory surplus reserves | 361,181,041.90 | 151,292,213.98 |
| Appropriation of discretionary surplus reserves | ||
| Appropriation to general risk provision | ||
| Common stock dividends payable | 797,541,155.54 | 621,179,555.20 |
| Common stock dividends converted into share capital | ||
| Undistributed profit at the end of the period | 9,066,353,854.50 | 6,617,152,692.38 |
| Item | Amount in the current period | Amount in the previous period | ||
| Income | Cost | Income | Cost | |
| Major operation | 43,433,643,659.03 | 35,981,319,412.69 | 36,427,626,635.92 | 29,468,482,925.80 |
| Other operations | 766,626,675.20 | 667,085,651.69 | 1,127,491,619.78 | 1,067,518,190.66 |
| Total | 44,200,270,334.23 | 36,648,405,064.38 | 37,555,118,255.70 | 30,536,001,116.46 |
| Item | Amount in the current period | Amount in the previous period |
| Consumption tax | ||
| Business tax | ||
| Urban maintenance and construction tax | 5,811,390.46 | 16,603,047.61 |
| Education surcharge | 2,586,236.78 | 7,235,680.06 |
| Resources tax | ||
| Property tax | 44,632,018.07 | 35,892,612.31 |
| Land use tax | 29,384,134.86 | 28,917,026.05 |
| Vehicle and vessel use tax | ||
| Stamp tax | 28,693,509.43 | 19,739,909.38 |
| Local education surcharge | 1,748,269.18 | 4,820,318.56 |
| Others | 11,190,097.35 | 9,652,541.63 |
| Total | 124,045,656.13 | 122,861,135.60 |
| Item | Amount in the current period | Amount in the previous period |
| Employee compensation | 481,340,424.63 | 478,656,539.45 |
| Travel expenses | 93,026,260.91 | 132,861,310.52 |
| Advertising expenses | 92,957,781.88 | 100,665,942.89 |
| After-sales service charges | 25,354,463.26 | 10,856,506.63 |
| Certification and review expense | 22,613,724.87 | 5,680,079.84 |
| Rental fees | 10,655,396.40 | 5,671,057.09 |
| Business entertainment expenses | 9,629,364.81 | 11,980,350.91 |
| Depreciation expenses | 6,540,599.41 | 5,680,079.84 |
| Traffic expenses | 155,634,509.88 | |
| Export expenses | 13,591,382.76 | |
| Others | 35,912,624.01 | 53,992,737.26 |
| Total | 778,030,640.18 | 975,270,497.07 |
64. Administrative expenses
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Amount in the current period | Amount in the previous period |
| Employee compensation | 814,656,806.60 | 723,061,371.26 |
| Repair expenses | 304,634,465.83 | 196,365,971.43 |
| Depreciation expenses | 193,923,343.42 | 127,571,184.92 |
| Amortization of intangible assets | 55,901,116.03 | 55,175,036.79 |
| Safety production fee | 47,383,065.35 | 33,343,882.12 |
| Consulting fees (including consultant fees) | 34,706,761.03 | 36,595,155.73 |
| Travel expenses | 32,384,792.97 | 39,181,159.47 |
| Business entertainment expenses | 28,870,562.00 | 27,419,152.75 |
| Poverty alleviation fee | 25,607,452.08 | 20,465,500.00 |
| Property management fee | 25,587,370.41 | 24,211,393.61 |
| Property insurance premium | 23,769,131.07 | 13,721,033.05 |
| Rental fees | 20,025,522.43 | 31,377,052.10 |
| Others | 201,127,714.17 | 185,321,706.39 |
| Total | 1,808,578,103.39 | 1,513,809,599.62 |
| Item | Amount in the current period | Amount in the previous period |
| Personnel expense | 265,265,919.94 | 240,334,947.09 |
| Material cost | 467,088,270.02 | 488,555,308.52 |
| Depreciation cost | 107,915,190.95 | 104,463,367.14 |
| Fuel and power | 162,999,918.05 | 137,089,633.84 |
| Other expenses | 32,062,135.72 | 30,251,337.26 |
| Total | 1,035,331,434.68 | 1,000,694,593.85 |
| Item | Amount in the current period | Amount in the previous period |
| Interest expenses | 521,590,309.29 | 605,992,874.97 |
| Less: financial discount | -12,760,919.51 | -27,900,347.52 |
| Less: interest income | -57,540,093.05 | -56,710,422.17 |
| Add: exchange loss | 98,373,973.54 | 28,396,268.64 |
| Less: exchange income | -59,002,987.44 | -39,377,208.72 |
| Add: amortization of unrecognized financing expenses | 173,467,244.18 | 186,682,895.47 |
| Add: handling charge of financial institutions | 12,199,001.78 | 10,721,763.33 |
| Total | 676,326,528.79 | 707,805,824.00 |
| Item | Amount in the current period | Amount in the previous period |
| Government subsidies related to daily operating activities | 303,549,939.09 | 214,303,960.33 |
| Total | 303,549,939.09 | 214,303,960.33 |
| Item | Amount in the | Amount in the | Related to |
| current period | previous period | assets/related to income | |
| Asset-related items to which deferred income is transferred | 85,331,920.28 | 59,981,555.86 | Related to assets |
| Industry support subsidies | 83,377,737.58 | Related to income | |
| Tax returns | 20,861,993.94 | 41,013,193.38 | Related to income |
| Government support funds | 16,212,962.86 | Related to income | |
| Job stabilization subsidy | 9,085,635.05 | 4,268,144.99 | Related to income |
| 2.3GW one project one discussion R&D investment rewards | 5,000,000.00 | Related to income | |
| Fixed asset investment reward | 5,000,000.00 | Related to income | |
| Special fund for logistics project of crystalline silicon solar cell project | 25,285,243.75 | Related to income | |
| Subsidies for provincial key enterprises | 18,148,911.00 | Related to income | |
| Subsidies for Low Energy Consumption and Zero Emission Polysilicon Green Key Process System Integration Project | 6,400,000.00 | Related to income | |
| In 2019, electricity price subsidies for Phase I and II of the "support fund project" | 5,580,000.00 | Related to income | |
| PV industry support policy subsidy | 5,824,000.00 | Related to income | |
| Other items related to income | 77,385,304.96 | 47,550,937.99 | Related to income |
| Asset-related items to which deferred income is transferred | 1,294,384.42 | 251,973.36 | Related to income |
| Total | 303,549,939.09 | 214,303,960.33 |
| Item | Amount in the current period | Amount in the previous period |
| Investment income of long-term equity investments measured under equity method | 22,506,526.78 | 107,669,300.53 |
| Investment income from disposal of long-term equity investments | 1,536,050,665.48 | 9,516,812.37 |
| Forward income from foreign exchange settlement | 9,522,042.15 | |
| Investment income from purchasing bank wealth management products | 1,298,783.09 | 1,180,005.16 |
| Total | 1,569,378,017.50 | 118,366,118.06 |
| Investee | Amount in the current period | Amount in the previous period |
| Chengdu Tongwei Industrial Co., Ltd. | 1,521,815,054.77 | |
| Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. | 14,389,885.25 | |
| Danzhou Tongwei Huijin New Energy Co., Ltd. | 111,272.90 | |
| Dongying Tongwei New Energy Co., Ltd. | -265,547.44 | |
| Xiangcheng Tongwei Huijin New Energy Co., Ltd. | 9,300,000.00 | |
| Panzhihua Tongwei Fish Co., Ltd. | 216,812.37 | |
| Total | 1,536,050,665.48 | 9,516,812.37 |
70. Income from changes in fair value
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Sources of income from changes in fair value | Amount in the current period | Amount in the previous period |
| Trading financial assets | 4,863,068.12 | |
| Including: income from changes in fair values arising from derivative financial instruments | 4,863,068.12 | |
| Trading financial liabilities | ||
| Investment properties measured at fair value | ||
| Total | 4,863,068.12 |
| Item | Amount in the current period | Amount in the previous period |
| Loss on bad debt of notes receivable | -19,644,098.38 | -25,090,248.17 |
| Bad debt loss of other receivables | -5,595,766.05 | -17,916,485.58 |
| Total | -25,239,864.43 | -43,006,733.75 |
| Item | Amount in the current period | Amount in the previous period |
| I. Bad debt loss | ||
| II. Inventory falling price loss and loss of contract performance cost impairment | -27,596,977.95 | -4,917,914.50 |
| III. Impairment loss of long-term equity investment | ||
| IV. Impairment loss of investment property | ||
| V. Loss from fixed assets impairment | -221,877,025.60 | |
| VI. Loss from construction materials impairment | ||
| VII. Loss from construction in progress impairment | ||
| VIII. Loss from productive biological assets impairment | ||
| IX. Loss from oil and gas assets impairment | ||
| X. Loss from intangible assets impairment | ||
| XI. Loss from goodwill impairment | ||
| XII. Others | -18,291,935.88 | |
| Total | -267,765,939.43 | -4,917,914.50 |
| Item | Amount in the current period | Amount in the previous period |
| Profit from the sale of non-current assets classified as held for sale | 36,044,702.46 | |
| Incomes from disposal of fixed assets | -1,164,677.07 | 87,806,056.20 |
| Incomes from productive biological assets disposal | 15,847.83 | 61,370.10 |
| Incomes from disposal of construction in progress | 15,689,526.61 | |
| Total | -1,148,829.24 | 139,601,655.37 |
| Item | Amount in the current period | Amount in the previous period | Amount of non-recurring profit and loss |
| included in the current period | |||
| Total gains from disposal of non-current assets | 256,277.03 | 843,121.44 | 256,277.03 |
| Including: gains from disposal of fixed assets | 256,277.03 | 843,121.44 | 256,277.03 |
| Gains from disposal of intangible assets | |||
| Gains from debt restructurings | |||
| Gains from exchange of non-monetary assets | |||
| Donation accepted | |||
| Government subsidies | |||
| Unpayable payables | 24,527,711.39 | 27,904,992.69 | 24,527,711.39 |
| Income from breach indemnity | 9,364,996.71 | 12,363,294.78 | 9,364,996.71 |
| Others | 2,846,642.17 | 1,271,326.25 | 2,846,642.17 |
| Total | 36,995,627.30 | 42,382,735.16 | 36,995,627.30 |
| Item | Amount in the current period | Amount in the previous period | Amount of non-recurring profit and loss included in the current period |
| Total loss from disposal of non-current assets | 400,228,648.84 | 4,077,869.41 | 400,228,648.84 |
| Including: loss from disposal of fixed assets | 399,711,840.78 | 4,077,869.41 | 399,711,840.78 |
| Loss from disposal of intangible assets | 477,812.05 | 477,812.05 | |
| Loss from debt restructuring | 1,162,174.00 | ||
| Loss from exchange of non-monetary assets | |||
| External donation | 4,119,119.08 | 2,892,339.59 | 4,119,119.08 |
| Fines expenses | 2,038,058.10 | 1,424,173.21 | 2,038,058.10 |
| Overdue fine | 486,097.27 | 319,816.35 | 486,097.27 |
| Abnormal loss | 66,502,545.02 | 250,200.12 | 66,502,545.02 |
| Expenditure of compensation | 1,704,252.25 | 2,333,803.58 | 1,704,252.25 |
| Others | 1,313,238.91 | 1,423,112.37 | 1,313,238.91 |
| Total | 476,391,959.47 | 13,883,488.63 | 476,391,959.47 |
| Item | Amount in the current period | Amount in the previous period |
| Current income tax expenses | 578,250,527.36 | 374,328,222.52 |
| Deferred income tax expenses | -19,196,352.33 | 94,857,607.48 |
| Total | 559,054,175.03 | 469,185,830.00 |
| Item | Amount in the current period |
| Total profit | 4,273,792,966.12 |
| Income tax expenses calculated with legal or applicable tax rate | 1,068,448,241.53 |
| Effect of different tax rate applicable to subsidiaries | -514,211,482.83 |
| Effect of adjustments to income tax of prior period | -15,780,503.50 |
| Effect of non-taxable income | -93,072,622.83 |
| Effect of cost, expense and loss nondeductible | 19,404,890.89 |
| Effect of using the deductible loss of the unrecognized in prior period | -26,195,079.86 |
| Impact of temporary deductible difference or deductible loss of deferred income tax assets recognized at the end of the period | 181,385,806.08 |
| Effect of reversal of deductible loss of deferred income tax assets confirmed in prior period | 5,032,881.75 |
| Impact of research and development costs plus deduction | -37,478,339.85 |
| Deferred income tax expenses affected by tax rate changes | -26,338,094.67 |
| Reduce corporate income tax | -2,141,521.68 |
| Income tax expense | 559,054,175.03 |
| Item | Amount in the current period | Amount in the previous period |
| Government subsidies | 541,500,627.50 | 437,706,525.63 |
| Insurance compensation | 115,076,534.20 | 1,509,070.96 |
| Security deposit and cash pledge received | 35,682,905.20 | 2,241,053.44 |
| Interest income from bank deposit | 34,466,767.72 | 42,169,626.41 |
| Production award and interest subsidy received | 12,760,919.51 | 47,800,000.00 |
| Income from breach indemnity | 8,338,615.45 | 4,686,247.42 |
| Rental income | 24,886,231.48 | 48,138,743.48 |
| Others | 3,058,661.49 | 6,167,976.40 |
| Total | 775,771,262.55 | 590,419,243.74 |
| Item | Amount in the current period | Amount in the previous period |
| Other expenses paid for related operating activities | 661,342,975.25 | 652,557,229.53 |
| Petty cash and intercourse fund paid | 53,949,024.73 | 45,902,080.85 |
| PV powerplant poverty alleviation project prepaid divided profit to pay cash | 3,218,902.14 | 4,332,500.00 |
| Guarantee deposit and security deposit paid | 10,029,479.45 | 6,970,132.73 |
| Total | 728,540,381.57 | 709,761,943.11 |
Unit:Yuan Currency: RMB
| Item | Amount in the current period | Amount in the previous period |
| Project bid bond received | 276,742,512.51 | 281,412,760.57 |
| Disposal of Chengdu Tongwei Industrial Co., Ltd. to recover the loan | 136,265,300.00 | |
| Equity transfer fund received | 89,600,000.00 | 10,843,094.42 |
| Total | 502,607,812.51 | 292,255,854.99 |
| Item | Amount in the current period | Amount in the previous period |
| Pre-paid equity acquisition funds | 3,082,000.00 | 134,522,726.32 |
| Refund of transfer funds and land funds | 15,300,000.00 | |
| Project bid bond paid | 164,247,398.46 | 244,236,183.03 |
| Total | 167,329,398.46 | 394,058,909.35 |
| Item | Amount in the current period | Amount in the previous period |
| Net decrease in guarantee deposits of notes | 861,743,891.85 | 168,808,449.80 |
| Joint venture capital adjustments | 221,176,251.72 | 768,149,439.68 |
| Interest income from guarantee deposit | 11,125,487.43 | 6,400,454.70 |
| Total | 1,094,045,631.00 | 943,358,344.18 |
| Item | Amount in the current period | Amount in the previous period |
| Financial lease fees paid | 854,903,139.02 | 1,490,531,553.53 |
| Payment of bills and letter of credit deposit | 384,773,935.90 | |
| Joint venture capital adjustments | 235,893,051.73 | 776,327,757.89 |
| Interest-free debt repayment of principal | 185,087,917.55 | 185,087,917.55 |
| Acquisition of minority shareholders' equity | 29,870,084.86 | 36,651,143.00 |
| Financial leasing risk fund | 11,247,063.94 | 20,017,669.48 |
| Financing fees paid | 5,793,587.60 | 26,523,169.82 |
| Minority shareholders recovering their investment | 2,450,000.00 | |
| Frozen bank deposits | 1,697,738.00 | |
| Others | 1,743,692.50 | 949,873.07 |
| Total | 1,711,762,473.10 | 2,537,786,822.34 |
| Supplementary information | Amount of the current period | Amount in the previous period |
| 1．Adjust the net profit to cash flow from operating activities | ||
| Net profit | 3,714,738,791.09 | 2,682,335,991.14 |
| Add: provision for impairment of assets | 267,765,939.43 | 4,917,914.50 |
| Credit impairment loss | 25,239,864.43 | 43,006,733.75 |
| Depreciation of fixed assets, oil and gas assets and productive biological assets | 2,357,189,141.57 | 1,930,044,400.29 |
| Amortization of use right asset | ||
| Amortization of intangible assets | 62,710,902.43 | 58,294,273.58 |
| Amortization of long-term prepaid expenses | 59,146,836.63 | 7,391,774.43 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gains to be listed with"-") | 1,148,829.24 | -139,601,655.37 |
| Loss from scrapping of fixed assets (income to be listed with “-”） | 399,972,371.81 | 3,234,747.97 |
| Loss from changes in fair value (gains to be listed with “-”） | -4,863,068.12 | |
| Financial expenses (gains to be listed with “-”) | 726,479,351.22 | 753,794,482.84 |
| Investment loss (gains to be listed with “-”) | -1,569,378,017.50 | -118,366,118.06 |
| Decreases of deferred income tax assets (increases to be listed with “-”) | -188,941,716.35 | -8,431,755.25 |
| Increases of deferred income tax liabilities (decrease to be listed with “-”) | 169,745,364.02 | 103,289,362.73 |
| Decrease of inventory (increase to be listed with “-”） | -384,993,632.73 | -824,901,708.95 |
| Decreases of operating receivables (increase to be listed with “-”） | -6,669,843,200.17 | -4,787,479,039.95 |
| Increase in operating payables (decrease to be listed with “-”） | 4,058,810,174.94 | 2,649,935,804.03 |
| Others | ||
| Net cash flow from operating activities | 3,024,927,931.94 | 2,357,465,207.68 |
| 2．Major investment and financing activities not relating to cash deposit and withdrawal: | ||
| Conversion of debt into capital | 4,224,357,901.63 | |
| Convertible bonds due within one year | ||
| Fixed assets acquired under financial leases | ||
| 3．Net changes in cash and cash equivalents: | ||
| Ending balance of cash | 5,986,042,619.46 | 1,942,739,577.25 |
| Subtract: cash at the beginning of the balance | 1,942,739,577.25 | 2,428,024,586.63 |
| Plus: ending balance of cash equivalents | ||
| Less: beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 4,043,303,042.21 | -485,285,009.38 |
| amount | |
| Cash or cash equivalents paid in the current period for disposal in the current period | 1,778,885,970.61 |
| Including: Chengdu Tongwei Industrial Co., Ltd. | 1,778,885,970.61 |
| Less: cash and cash equivalents held by subsidiaries on the date of losing control right | 1,179.30 |
| Including: Chengdu Tongwei Industrial Co., Ltd. | 1,179.30 |
| Add: cash or cash equivalents received in the current period for disposal during previous year | |
| Net cash received for disposal of subsidiaries | 1,778,884,791.31 |
| Item | Ending balance | Beginning balance |
| I. Cash | 5,986,042,619.46 | 1,942,739,577.25 |
| Including: cash on hand | 126,156.42 | 273,455.70 |
| Bank deposits available for payment on demand | 5,956,397,774.28 | 1,749,657,393.40 |
| Other cash and cash equivalents available for payment at any time | 29,518,688.76 | 192,808,728.15 |
| Available fund that is deposited into the Central Bank for payment | ||
| Inter-bank deposits | ||
| Interbank loans | ||
| II. Cash equivalents | ||
| Including: bond investment due within 3 months | ||
| III. Ending balance of cash and cash equivalents | 5,986,042,619.46 | 1,942,739,577.25 |
| Including: restricted cash and cash equivalents used by parent company or subsidiaries under the Group | 278,125,622.57 | 749,942,171.52 |
| Item | Book value at the end of the period | Reason of being restricted |
| Cash at bank and on hand | 278,125,622.57 | Provide guarantee for Company financing and operation |
| Notes receivable | ||
| Inventories | ||
| Fixed assets | 7,509,245,190.86 | Provide guarantees, financial leases, etc. for Company financing |
| Intangible assets | 218,700,255.76 | Provide pledge for Company financing |
| Receivables financing | 9,511,995,347.19 | Provide pledge for the company to issue bank acceptance bills |
| Accounts receivable | 472,806,633.48 | Provide pledge for Company financing |
| Contract assets | 916,383,442.93 | Provide pledge for Company financing |
| Construction in progress | 10,805,572.28 | Provide pledge for Company financing |
| Investment real estate | 64,302,088.13 | Provide pledge for Company financing |
| Total | 18,982,364,153.20 | / |
| Item | Ending foreign currency balance | Conversion exchange rate | Ending balance of converted RMB |
| Cash at bank and on hand | |||
| Including: USD | 8,939,778.13 | 6.5249 | 58,331,158.32 |
| EUR | 161,693.45 | 8.0250 | 1,297,589.94 |
| HKD | 781,753.59 | 0.8416 | 657,955.33 |
| VND | 835,629,747,769.84 | 0.0002834 | 236,856,504.47 |
| BDT | 537,073,842.57 | 0.07686 | 41,279,396.39 |
| SGD | 37,073.70 | 4.9314 | 182,825.24 |
| IDR | 12,321,905,773.71 | 0.0004627 | 5,701,946.22 |
| Yen | 4.00 | 0.06324 | 0.25 |
| Accounts receivable | |||
| Including: USD | 11,260,006.74 | 6.5249 | 73,470,417.95 |
| EUR | |||
| HKD | |||
| VND | 322,259,155,224.56 | 0.0002834 | 91,343,297.95 |
| IDR | 84,493,903,181.25 | 0.0004627 | 39,099,446.17 |
| Notes receivable | |||
| Including: USD | 78,520,796.30 | 6.5249 | 512,340,343.77 |
| EUR | 2,320,500.00 | 8.0250 | 18,622,012.50 |
| Other payables | |||
| Including: VND | 922,973,340.57 | 0.0002834 | 261,613.77 |
| IDR | 2,100,500,997.60 | 0.0004627 | 972,004.16 |
| Short-term loans | |||
| Including: USD | 6,727,480.20 | 6.5249 | 43,896,135.57 |
| VND | 626,197,680,550.15 | 0.0002834 | 177,493,673.63 |
| IDR | 30,164,391,812.00 | 0.0004627 | 13,958,533.93 |
| Notes payable | |||
| Including: USD | 948,400.00 | 6.5249 | 6,188,215.16 |
| EUR | 5,211,410.00 | 8.0250 | 41,821,565.25 |
| Accounts payable | |||
| Including: USD | 4,935,597.53 | 6.5249 | 32,204,280.31 |
| VND | 175,329,666,549.77 | 0.0002834 | 49,696,617.48 |
| BDT | 10,676,892.31 | 0.07686 | 820,623.97 |
| IDR | 76,669,710,006.46 | 0.0004627 | 35,478,810.74 |
| EUR | 195,840.53 | 8.0250 | 1,571,620.35 |
| Employee compensation payable | |||
| Including: VND | 5,238,995,319.00 | 0.0002834 | 1,484,976.00 |
| BDT | 8,793,783.00 | 0.07686 | 675,888.54 |
| IDR | 1,197,824,570.00 | 0.0004627 | 554,291.80 |
| Taxes and fees payable | |||
| Including: VND | 51,113,533,151.86 | 0.0002834 | 14,487,962.90 |
| BDT | 35,505,044.90 | 0.07686 | 2,728,911.20 |
| IDR | 166,739,376.26 | 0.0004627 | 77,158.43 |
| Other payables | |||
| Including: USD | 1,388,174.15 | 6.5249 | 9,057,697.51 |
| VND | 20,824,373,447.32 | 0.0002834 | 5,902,600.19 |
| BDT | 2,807,751.87 | 0.07686 | 215,803.29 |
| IDR | 1,665,055,825.00 | 0.0004627 | 770,502.46 |
| EUR | 101,470.73 | 8.0250 | 814,302.61 |
| Non-current liabilities due within one year | |||
| Including: USD | 1,703,375.35 | 6.5249 | 11,114,353.83 |
| Long-term loans | |||
| Including: USD | 1,720,000.00 | 6.5249 | 11,222,828.00 |
| Company name | Major places of business | Recording currency | Selection basis of recording currency |
| Tongwei Holdings PTE. Ltd. in Singapore | Singapore | USD | Currency of major economic business |
| Bangladesh Tongwei Feed Co., Ltd. | Bangladesh | BDT | Major local currencies |
| Vietnam Tongwei Co., Ltd. | Vietnam | VND | Major local currencies |
| Haiyang Tongwei Co., Ltd. | Vietnam | VND | Major local currencies |
| Heping Tongwei Co., Ltd. | Vietnam | VND | Major local currencies |
| Indonesia Tongwei Co., Ltd. | Indonesia | IDR | Major local currencies |
| Qianjiang Tongwei Co., Ltd. | Vietnam | VND | Major local currencies |
| Tongta Tongwei Co., Ltd. | Vietnam | VND | Major local currencies |
| Tongwei Solar HK Co., Ltd. | Hong Kong | USD | Currency of major economic business |
| Category | amount | Item presented | Amount included in the current profit and loss |
| Assets-related government subsidies | 865,875,071.09 | Deferred incomes | 85,331,920.28 |
| Income-related government subsidies | 3,224,326.64 | Deferred incomes | 1,294,384.42 |
| Income-related government subsidies (note) | 2,900,000.00 | Deferred incomes | 2,658,333.35 |
| Income-related government subsidies | 216,923,634.39 | Other incomes | 216,923,634.39 |
| Income-related government subsidies | 514,445,362.18 | Operating cost | 514,445,362.18 |
| Income-related government subsidies | 10,102,586.16 | Financial expenses | 10,102,586.16 |
| Name of acquiree | Date of acquisition of equity | Acquisition cost of equity | Acquisition proportion of equity (%) | Acquisition method of equity | Acquisition date | Basis for determination of acquisition date | Income of acquiree from acquisition date to the end of the period | Net profit of acquiree from acquisition date to the end of the period |
| Zibo Huixiang New Energy Co., Ltd. | 2020/1/1 | 0.00 | 100.00 | Purchasing | 2020/1/1 | Note | 23,838,595.88 | 9,471,840.97 |
(2). Merger cost and goodwill
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Merger cost | Zibo Huixiang New Energy Co., Ltd. |
| --Cash | 0 |
| --Fair value of non-cash assets | |
| --Fair value of liabilities issued or borne | |
| --Fair value of equity securities issued | |
| --Fair value of contingent consideration | |
| --Fair value on acquisition date for equity held prior to the acquisition date | |
| --Others | |
| Total merger cost | 0 |
| Less: fair value of net identifiable assets acquired | 0 |
| Amount of which the goodwill/merger cost is less than the fair value of net identifiable assets acquired | 0 |
| Zibo Huixiang New Energy Co., Ltd. | ||
| Fair value on purchase date | Book value on purchase day | |
| Assets: | 169,327,334.40 | 169,327,334.40 |
| Cash at bank and on hand | 142,410.81 | 142,410.81 |
| Accounts receivable | 19,064,834.31 | 19,064,834.31 |
| Inventories | ||
| Fixed assets | 65,707,742.24 | 65,707,742.24 |
| Intangible assets | ||
| Prepayments | 84,365.00 | 84,365.00 |
| Other payables | 126,000.00 | 126,000.00 |
| Other current assets | 2,970,553.27 | 2,970,553.27 |
| Construction in progress | 68,204,857.68 | 68,204,857.68 |
| Other non-current assets | 13,026,571.09 | 13,026,571.09 |
| Liabilities: | 169,327,334.40 | 169,327,334.40 |
| Loan | ||
| Payables | 35,250,998.44 | 35,250,998.44 |
| Other payables | 134,076,335.96 | 134,076,335.96 |
| Deferred income tax liabilities | ||
| Net assets | 0.00 | 0.00 |
| Less: minority shareholders' equity | ||
| Net assets acquired | 0.00 | 0.00 |
2. Business merger under common control
□Applicable √Inapplicable
3. Counter purchase
□Applicable √Inapplicable
4. Disposal of subsidiaries
Whether conditions of single disposal of the investment in subsidiaries with control lost occurred
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Name of subsidiaries | Disposal price of equity | Disposal proportion of equity (%) | Disposal way of equity | Date for loss of control | Basis for determining date for loss of control | Difference between the disposal price and the Company’s share of the subsidiaries’ net assets in the consolidated financial statements relevant to the disposed equity interest | Proportion of remaining equity on the date of loss of control (%) | Carrying value of remaining equity on the date of loss of control | Fair value of remaining equity on the date of loss of control | Profit or loss caused by recalculation of remaining equity | Determining method and major assumptions of remaining equity fair value on the date of loss of control | Profit or loss on investment transferred from other comprehensive incomes in connection with equity investment of the original subsidiaries |
| Chengdu Tongwei Industrial Co., Ltd. | 1,749,500,000.00 | 98.00 | Equity Transfer | 2020/7/31 | Assets transferring | 1,499,908,753.67 | 2.00 | 5,093,698.90 | 27,000,000.00 | 21,906,301.10 | ||
| Dongying Tongwei New Energy Co., Ltd. | 0.00 | 100.00 | Equity Transfer | 2020/5/21 | Industrial and commercial changes | -265,547.44 | 0.00 | |||||
| Danzhou Tongwei Huijin New Energy Co., Ltd. | 200,000.00 | 100.00 | Equity Transfer | 2020/3/24 | Industrial and commercial changes | 111,272.90 | 0.00 |
IX. Equity in Other Entities
1. Equities in subsidiaries
(1). Composition of the Group
√Applicable □Inapplicable
| Subsidiaries name | Major places of business | Registered place | Business nature | Shareholding proportion (%) | Obtaining method | |
| Direct | Indirect | |||||
| Sichuan Yongxiang Co., Ltd. | Leshan | Leshan | Chemical industry, PV new energy | 99.9999 | 0.0001 | Business merger under common control |
| Tongwei Solar (Hefei) Co., Ltd. | Hefei | Hefei | Production and operation of cells and modules | 100 | Business merger under common control | |
| Tongwei New Energy Co., Ltd. | Chengdu | Chengdu | PV power management | 100 | Business merger under common control | |
| Chongqing Tongwei Feed Co., Ltd. | Chongqing | Chongqing | Feed production and operation | 100 | Business merger under common control | |
| Xiamen Tongwei Feed Co., Ltd. | Xiamen | Xiamen | Feed production and operation | 100 | Business merger under common control | |
| Yuanjiang Tongwei Feed Co., Ltd. | Yuanjiang | Yuanjiang | Feed production and operation | 100 | Business merger under common control | |
| Wuhan Tongwei Feed Co., Ltd. | Wuhan | Wuhan | Feed production and operation | 100 | Business merger under common control | |
| Shashi Tongwei Feed Co., Ltd. | Shashi | Shashi | Feed production and operation | 100 | Business merger under common control | |
| Guangdong Tongwei Feed Co., Ltd. | Foshan | Foshan | Feed production and operation | 100 | Business merger under common control | |
| Shandong Tongwei Feed Co., Ltd. | Zibo | Zibo | Feed production and operation | 92 | Business merger under common control | |
| Shandong Tongwei Feed Co., Ltd. | Zaozhuang | Zaozhuang | Feed production and operation | 100 | Business merger under common control | |
| Suzhou Tongwei Special Feed Co., Ltd. | Suzhou | Suzhou | Feed production and operation | 100 | Business merger under common control | |
| He'nan Tongwei Feed Co., Ltd. | Xinxiang | Xinxiang | Feed production and operation | 100 | Business merger under common control | |
| Changchun Tongwei Feed Co., Ltd. | Changchun | Changchun | Feed production and operation | 100 | Business merger under common control | |
| Chengdu Tongwei Aquatic Products Technology Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Business merger under common control | |
| Chengdu Tongwei Fish Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Business merger under common control | |
| Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | Chengdu | Chengdu | Veterinary drugs | 70 | Business merger under common control | |
| Tongwei (Hainan) Aquatic Products Co., Ltd. | Hainan | Hainan | Food processing | 100 | Business merger under common control | |
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | Hainan | Hainan | Feed production and operation | 100 | Business merger under common control | |
| Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Zhuhai | Zhuhai | Feed production and operation | 100 | Business merger under common control | |
| Hainan Haiyi Aquatic Seed Co., Ltd. | Hainan | Hainan | Aquaculture industries | 49.95 | Business merger under common control | |
| Nantong Bada Feed Co., Ltd. | Nantong | Nantong | Feed production and operation | 100 | Business merger under common control | |
| Tongwei (Chengdu) Salmon Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Business merger under common control | |
| Hainan Haiyi Biotechnology Co., Ltd. | Hainan | Chengmai | Biological products | 51 | Business merger under common control | |
| Chengdu Xintaifeng Agricultural Development Co., Ltd. | Chengdu | Chengdu | Food processing | 100 | Business merger under common control | |
| Nanning Tongwei Feed Co., Ltd. | Nanning | Nanning | Feed production and operation | 100 | Establishment by investment | |
| Tianjin Tongwei Feed Co., Ltd. | Tianjin | Tianjin | Feed production and operation | 100 | Establishment by investment | |
| Huai'an Tongwei Feed Co., Ltd. | Huai’an | Huai’an | Feed production and operation | 100 | Establishment by investment | |
| Jieyang Tongwei Feed Co., Ltd. | Jieyang | Jieyang | Feed production and operation | 100 | Establishment by investment | |
| Chengdu Ronglai Tongwei Feed Co., Ltd. | Chengdu | Chengdu | Feed production and operation | 80 | Establishment by investment | |
| Yangzhou Tongwei Feed Co., Ltd. | Yangzhou | Yangzhou | Feed production and operation | 100 | Establishment by investment | |
| Langfang Tongwei Feed Co., Ltd. | Langfang | Langfang | Feed production and operation | 100 | Establishment by investment | |
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Chengdu | Chengdu | Feed production and operation | 100 | Establishment by investment | |
| Panzhihua Tongwei Feed Co., Ltd. | Panzhihua | Panzhihua | Feed production and operation | 100 | Establishment by investment | |
| Tongwei (Chengdu) Aquatic Products Co., Ltd. | Chengdu | Chengdu | Food processing | 100 | Establishment by investment | |
| Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Guangzhou | Guangzhou | Aquaculture industries | 100 | Establishment by investment | |
| Tongwei Agricultural Financing Guarantee Co., Ltd. | Chengdu | Chengdu | Guarantee | 100 | Establishment by investment | |
| Tongwei (Chengdu) Agriculture Investment Holding Co., Ltd. | Chengdu | Chengdu | Investment | 100 | Establishment by investment | |
| Sichuan Tongguang Construction Engineering Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Establishment by investment | |
| Tongwei Aquatic Products Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Establishment by investment | |
| Chongqing Changshou Tongwei Feed Co., Ltd. | Chongqing Changshou | Chongqing Changshou | Feed production and operation | 100 | Establishment by investment | |
| Qianxi Tongwei Feed Co., Ltd. | Qianxi | Qianxi | Feed production and operation | 100 | Establishment by investment | |
| Lianyungang Tongwei Feed Co., Ltd. | Lianyungang | Lianyungang | Feed production and operation | 100 | Establishment by investment | |
| Chengdu Tongwei Automation Equipment Co., Ltd. | Chengdu | Chengdu | Equipment Manufacturing | 80 | Establishment by investment | |
| Foshan Tongwei Feed Co., Ltd. | Foshan | Foshan | Feed production and operation | 100 | Establishment by investment | |
| Zibo Tongwei Feed Co., Ltd. | Zibo | Zibo | Feed production and operation | 76 | Establishment by investment | |
| Tongwei (Dafeng) Feed Co., Ltd. | Yancheng | Yancheng | Feed production and operation | 51 | Establishment by investment | |
| Kunming Tongwei Feed Co., Ltd. | Kunming | Kunming | Feed production and operation | 100 | Establishment by investment |
| Zibo Tongwei Food Co., Ltd. | Zibo | Zibo | Food processing | 100 | Establishment by investment | |
| Foshan Gaoming Tongwei Feed Co., Ltd. | Gaoming | Gaoming | Feed production and operation | 100 | Establishment by investment | |
| Tianmen Tongwei Biotechnology Co., Ltd. | Tianmen | Tianmen | Feed production and operation | 100 | Establishment by investment | |
| Binyang Tongwei Feed Co., Ltd. | Binyang | Binyang | Feed production and operation | 100 | Establishment by investment | |
| Fuzhou Tongwei Willianm Feed Co., Ltd. | Fuzhou | Fuzhou | Feed production and operation | 65 | Establishment by investment | |
| Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan | Yinchuan | Feed production and operation | 100 | Establishment by investment | |
| Harbin Tongwei Feed Co., Ltd. | Binxian County | Binxian County | Feed sales | 100 | Establishment by investment | |
| Nanjing Tongwei Aquatic Products Technology Co., Ltd. | Nanjing | Nanjing | Aquaculture, feed sales | 100 | Establishment by investment | |
| Tongwei Holding Pte. Ltd. | Singapore | Singapore | Trade | 100 | Establishment by investment | |
| Tongwei Industrial (Tibet) Co., Ltd. | Lhasa | Lhasa | Trade | 100 | Establishment by investment | |
| Chizhou Tongwei Feed Co., Ltd. | Anhui Province | Chizhou | Feed production and operation | 100 | Establishment by investment | |
| Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu | Chengdu | Aquaculture industries | 100 | Establishment by investment | |
| Hengshui Tongwei Feed Co., Ltd. | Hebei Province | Hebei Province | Feed production and operation | 100 | Establishment by investment | |
| Qingyuan Tongwei Feed Co., Ltd. | Yingde | Yingde | Feed production and operation | 100 | Establishment by investment | |
| Honghu Tongwei Feed Co., Ltd. | Honghu | Honghu | Feed production and operation | 100 | Establishment by investment | |
| Sichuan Tongwei Food Co., Ltd. | Chengdu | Chengdu | Food processing | 80 | Establishment by investment | |
| Hanshou Tongwei Feed Co., Ltd. | Changde | Honghu | Feed production and operation | 100 | Establishment by investment | |
| Sichuan Fishery-PV Wulian Technology Co., Ltd. | Chengdu | Chengdu | Others | 60 | Establishment by investment | |
| Sichuan Willtest Technology Co., Ltd. | Chengdu | Chengdu | Testing service | 83.04 | Establishment by investment | |
| Wuxi Tongwei Biotechnology Co., Ltd. | Wuxi | Wuxi | Aquaculture, feed sales | 100 | Establishment by investment | |
| Tongwei New Energy Engineering Design (Sichuan) Co., Ltd. | Chengdu | Chengdu | Electrical Engineering Design | 100 | Business merger under common control | |
| Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang Province | Zhejiang Province | PV new energy | 100 | Establishment by investment | |
| Sichuan Tongwei Feed Co., Ltd. | Meishan | Chengdu | Feed production and operation | 100 | Establishment by investment | |
| Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | Chengdu | Chengdu | Aquatic product market management | 55.62 | Establishment by investment | |
| Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | Qingdao | Qingdao | Aquaculture industries | 51 | Business merger under common control | |
| Chengdu Tongwei Quannonghui Electronic Commerce Co., Ltd. | Chengdu | Chengdu | Retail Business | 100 | Business merger under common control | |
| Sichuan Yongxiang New Material Co., Ltd. | Leshan | Leshan | Chemical | 100 | Establishment by investment | |
| Tianmen Tongwei Aquatic Products Technology Co., Ltd. | Tianmen | Tianmen | PV power management | 100 | Establishment by investment | |
| Nanning Tongwei Biotechnology Co., Ltd. | Nanning | Nanning | Feed production and operation | 100 | Establishment by investment | |
| Yangjiang Haiyi Biotechnology Co., Ltd. | Yangjiang | Yangjiang | Feed production and operation | 100 | Establishment by investment | |
| Nanchang Tongwei Biotechnology Co., Ltd. | Nanchang | Nanchang | Feed production and operation | 80 | Establishment by investment |
| Gongan County Tongwei Aquatic Products Technology Co., Ltd. | Gong'an | Gong'an | Aquaculture and seedling breeding | 100 | Establishment by investment | |
| Sichuan Chunyuan Ecological Breeding Co., Ltd. | Qionglai | Qionglai | Aquaculture industries | 100 | Business merger under common control | |
| Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. | Qionglai | Qionglai | Aquaculture industries | 100 | Business merger under common control | |
| Chengdu Chunyuan Food Co., Ltd | Qionglai | Qionglai | Food processing | 93.63 | Business merger under common control | |
| Zhanjiang Haixianfeng Bio-tech Co., Ltd. | Hainan | Chengmai | Biological products | 51 | Business merger under common control | |
| Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu | Xinjin | Others | 100 | Establishment by investment | |
| Maoming Tongwei Biotechnology Co., Ltd. | Maoming | Maoming | Feed production and operation | 100 | Establishment by investment | |
| Hainan Tongwei Biotechnology Co., Ltd. | Hainan | Chengmai | Feed production and operation | 100 | Establishment by investment | |
| Guangdong Tongwei Biotechnology Co., Ltd. | Guangdong Province | Sihui | Feed production and operation | 100 | Establishment by investment |
| Name of subsidiaries | Shareholding proportion of minority shareholders | Profit or loss attributable to minority shareholders in the current period | Dividends declared to minority shareholders in the current period | Equity balance of minority shareholders at the end of the period |
| Sichuan Yongxiang New Energy Co., Ltd. | 15.00% | 79,152,378.91 | 54,000,000.00 | 288,219,639.38 |
Unit:Yuan Currency:RMB
| Name of subsidiaries | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Sichuan Yongxiang New Energy Co., Ltd. | 1,741,305,412.65 | 3,124,618,871.64 | 4,865,924,284.29 | 1,460,492,652.45 | 1,483,967,369.23 | 2,944,460,021.68 | 1,023,382,697.73 | 2,734,680,780.58 | 3,758,063,478.31 | 913,637,643.35 | 1,450,644,098.45 | 2,364,281,741.80 |
| Name of subsidiaries | Amount in the current period | Amount in the previous period | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flow from operating activities | |
| Sichuan Yongxiang New Energy Co., Ltd. | 2,290,460,762.24 | 527,682,526.10 | 527,682,526.10 | 91,803,475.40 | 1,246,542,200.06 | 193,912,441.10 | 193,912,441.10 | -91,786,560.31 |
(4). Major limitations on use of enterprise group assets and payment of enterprise group debt:
□Applicable √Inapplicable
(5). Financial support or other supports provided to structured entities incorporated into the scope
of consolidated financial statement
□Applicable √Inapplicable
Other notes:
□Applicable √Inapplicable
2. Transactions of the owner's equity portion variation in the subsidiaries and the subsidiaries still
being under control
□Applicable √Inapplicable
(1). Explanation of the change in the share of the owner’s equity in the subsidiaries
√Applicable □Inapplicable
In January 2020, Jinxian Tiancheng Copper Co., Ltd., a shareholder of Nanchang TongweiBiotechnology Co., Ltd., a subsidiary of the Company, increased its capital. After the capital increase, thecompany's shareholding ratio in Nanchang Tongwei Biotechnology Co., Ltd. was changed from 82.76%to 80.00%.
In May 2020, the Company has acquired 0.6% of its equity held by Fu Jiayun of Sichuan YongxiangSilicon Material Co., Ltd. with RMB 654,500.00. After the acquisition, the equity ratio of Tongwei SolarCo., Ltd. in Sichuan Yongxiang Silicon Material Co., Ltd. was changed from 91.55% to 92.15%.
In August 2020, Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company,acquired 6.01% of Tongwei Huijin New Energy Co., Ltd. held by Feng Dezhi and others for RMB17,528,723.10. After the acquisition, the shareholding ratio of Tongwei Huijin New Energy Co., Ltd. heldby Tongwei New Energy Co., Ltd., a wholly-owned subsidiary of the Company was changed from 88.75%to 94.75%.
In September 2020, the Company has acquired 3.68% of its equity held by Zhao Yan of SichuanWilltest Technology Co., Ltd. with RMB 343,861.76. After the acquisition, the Company's equity ratio inSichuan Willtest Technology Co., Ltd. was increased from 81.68% to 83.04%.
In December 2020, the Company increased its capital to Chengdu Tongwei Automation EquipmentCo., Ltd. by RMB 10,229,800.00. After the capital increase, the company's shareholding in ChengduTongwei Automation Equipment Co., Ltd. was changed from 62.95% to 80.00%.
In December 2020, Sichuan Tongwei Food Co., Ltd., a subsidiary of the Company, acquired 2.06%of Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. held by Xue Feng and others for RMB 943,000.00.After the acquisition, the shareholding ratio of Sichuan Tongwei Food Co., Ltd. in Sichuan TongweiSanlian Aquatic Products Co., Ltd. was changed from 53.57% to 55.62%.
In 2020, the Company increased the capital of Sichuan Tongwei Food Co., Ltd. by RMB44,500,000.00. After the capital increase, the Company's shareholding in Sichuan Tongwei Food Co.,Ltd.was changed from 70.00% to 80.00%.
(2). The impact of the transaction on the minority shareholders' equity and the owner's equity
attributable to the parent Company
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Nanchang Tongwei Biotechnology Co., Ltd. | Sichuan Yongxiang Silicon Material Co., Ltd. | Tongwei Huijin New Energy Co., Ltd. | Sichuan Willtest Technology Co., Ltd. | Chengdu Tongwei Automation Equipment Co., Ltd. | Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | Sichuan Tongwei Food Co., Ltd. | |
| Acquisition cost/disposal consideration | 654,500.00 | 17,528,723.10 | 343,861.76 | 10,229,800.00 | 943,000.00 | 44,500,000.00 | |
| --Cash | 654,500.00 | 17,528,723.10 | 343,861.76 | 10,229,800.00 | 943,000.00 | 44,500,000.00 |
| --Fair value of non-cash assets | |||||||
| Total acquisition cost/disposal consideration | 654,500.00 | 17,528,723.10 | 343,861.76 | 10,229,800.00 | 943,000.00 | 44,500,000.00 | |
| Less: net assets of the subsidiaries calculated based on the proportion of assets acquired/disposed | 788.43 | 358,621.23 | 16,911,260.92 | 344,237.56 | 10,525,998.08 | 819,838.08 | 41,437,153.69 |
| Difference | -788.43 | 295,878.77 | 617,462.18 | -375.80 | -296,198.08 | 123,161.92 | 3,062,846.31 |
| Including: adjustment to the capital reserves | 788.43 | -295,878.77 | -617,462.18 | 375.80 | 296,198.08 | -123,161.92 | -3,062,846.31 |
| Adjustment of surplus reserves | |||||||
| Adjustment of undistributed profit |
| Name of joint venture or associate | Major places of business | Registered place | Business nature | Shareholding proportion (%) | Accounting treatment method of joint ventures or associates | |
| Direct | Indirect | |||||
| Lijiang LONGi Silicon Materials Co., Ltd. | Huaping County, Lijiang City, Yunnan Province | Clean and Energy-bearing Industry Park, Shilongba Town, Huaping County | Production and sales of silicon materials | 15.00 | Equity method | |
| Ending balance/ Amount incurred in the current period | Beginning balance/ Amount incurred in the previous period | |
| Lijiang LONGi Silicon Materials Co., Ltd. | Lijiang LONGi Silicon Materials Co., Ltd. |
| Current assets | 1,574,684,481.13 | |
| Non-current assets | 1,082,766,809.32 | |
| Total assets | 2,657,451,290.45 | |
| Current liabilities | 789,201,631.89 | |
| Non-current liabilities | 362,596,492.47 | |
| Total liabilities | 1,151,798,124.36 | |
| Non-controlling interest | ||
| Equity attributable to shareholders of the parent company | 1,505,653,166.09 | |
| Net assets calculated based on percentage of shareholding | 225,847,974.91 | |
| Adjustment events | -1,101,889.60 | |
| --Goodwill | ||
| --Unrealized profit of internal transaction | -1,101,889.60 | |
| --Others | ||
| Book value of equity investment in associates | 224,746,085.31 | |
| Fair value of equity investment in associates with public offer | ||
| Operating revenue | 3,041,951,877.56 | |
| Net profit | 685,658,922.50 | |
| Net profit from termination of operation | ||
| Other comprehensive income | ||
| Total comprehensive income | ||
| Dividends received from associates in the current year |
| Ending balance/ Amount incurred in the current period | Beginning balance/ Amount incurred in the previous period | |
| Joint ventures: | ||
| Total book value of investment | 125,664,667.11 | 133,196,410.24 |
| Total amount of following items according to shareholding proportion | ||
| --Net profit | -3,121,628.38 | 6,008,246.06 |
| --Other comprehensive income | 40,051.66 | |
| --Total comprehensive income | -3,121,628.38 | 6,048,297.72 |
| Associate: | ||
| Total book value of investment | 352,071,415.11 | 81,798,729.03 |
| Total amount of following items according to shareholding proportion | ||
| --Net profit | 25,628,155.16 | -56,957.92 |
| --Other comprehensive income | ||
| --Total comprehensive income | 25,628,155.16 | -56,957.92 |
Foreign exchange risk refers to the risk of fluctuation in fair value or future cash flow of financialinstruments due to change in foreign exchange rate. The Company tries to match the foreign currencyincome and foreign expense to reduce foreign exchange risk. The foreign exchange risks faced by theCompany mainly come from financial assets and financial liabilities denominated in foreign currenciessuch as us dollar, Vietnamese dong, Bangladesh taka, Indonesian rupiah, SGD, euro and HKD. Pleaserefer to "monetary items for foreign currency" for the amount converted from foreign currency financialassets and foreign currency financial liabilities into RMB.(III). Liquidity riskLiquidity risk refers to the risk of capital shortage in performing obligation of settling accounts bycash payment or other financial assets. The policy of the Company is to ensure that there is sufficient cashto pay the matured debt. Liquidity risk is generally controlled by the finance department of the Company.The finance department ensures that the Company possesses sufficient capital to pay the debt throughmonitoring of cash reserves and negotiable securities which can be converted into cash at any time androlling prediction of cash flow in the next 12 months.
XI. Disclosure of Fair Value
1. Ending fair value of assets and liabilities measured at fair value
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Continuous fair value measurement | ||||
| (I) Trading financial assets | 4,863,068.12 | 1,527,000,000.00 | 1,531,863,068.12 | |
| 1.Financial assets at fair value through current profit and loss | ||||
| (1) Bond instrument investment | 1,500,000,000.00 | 1,500,000,000.00 | ||
| (2) Equity instrument investment | 27,000,000.00 | 27,000,000.00 | ||
| (3) Derivative financial assets | 4,863,068.12 | 4,863,068.12 | ||
| 2. Financial assets designated to be measured at fair value with the changes in fair value included in current profit and loss | ||||
| (1) Bond instrument investment | ||||
| (2) Equity instrument investment | ||||
| (II) Other debt investments | ||||
| (III) Other equity instrument investments | 153,445,100.85 | 153,445,100.85 | ||
| (IV) Investment real estates | ||||
| 1.Land use right for lease | ||||
| 2. Buildings for lease | ||||
| 3. Land use rights possessed and ready for transfer after appreciation | ||||
| (V) Biological assets | ||||
| 1.Consumptive biological assets | ||||
| 2. Productive biological assets | ||||
| Receivable financing | 9,711,898,567.92 | 9,711,898,567.92 | ||
| Other non-current financial assets | 1,258,097.00 | 1,258,097.00 | ||
| Total amount of assets continuously measured at fair value | 4,863,068.12 | 11,393,601,765.77 | 11,398,464,833.89 | |
| (VI) Trading financial liabilities | ||||
| 1.Financial liabilities at fair value through current profit and loss | ||||
| Including: trading bonds issued | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Financial liabilities measured at fair value with their variance recorded into current profit and loss | ||||
| Total liabilities continuously measured at fair value | ||||
| II. Non-continuous fair value measurement | ||||
| (I) Held-for-sale assets | ||||
| Total amount of assets non-continuously measured at fair value | ||||
| Total amount of liabilities non-continuously measured at fair value |
valuation techniques, and the important parameters include the interest rate that cannot be directlyobserved.
Other non-current financial assets have not undergone major changes due to the business environment,operating conditions, and financial status of the investee, and the company shall use the investment costas its fair value to be measured.
5. Information on adjustment between beginning book value and ending book value of itemssubject to continuous level 3 fair value measurement and sensitivity analysis of non-observableparameters
□Applicable √Inapplicable
6. Reasons for transfer and the policies applicable at the time of transfer for items subject to
continuous fair value measurement and having transferred between levels in the current period
□Applicable √Inapplicable
7. Change of valuation techniques incurred in the current period and the reasons thereof
□Applicable √Inapplicable
8. Fair value of financial assets and liabilities not measured at fair value
□Applicable √Inapplicable
9. Others
□Applicable √Inapplicable
XII. Related Parties and Related Party Transactions
1. Parent company of the Company
√Applicable □Inapplicable
Unit:10,000Yuan Currency:RMB
| Name of the parent company | Registered place | Business nature | Registered capital | Share proportion held by parent company in the Company (%) | Voting right proportion of parent company in the Company (%) |
| Tongwei Group Co., Ltd. | Sichuan Province | Mixed operation | 20,000.00 | 44.39 | 44.39 |
For detailed information about subsidiaries of the Company, see “Equity in Other Entities”.
3. Information of joint ventures and associates of the Company
For detailed information about important joint ventures or associates of the Company, see Notes.
□Applicable √Inapplicable
The information on other joint ventures or associates which produced balance for conducting related partytransaction with the Company in the current period or in the previous period is shown as follows
√Applicable □Inapplicable
| Name of joint venture or associate | Relationship with the Company |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | Joint venture |
| Hefei Tongwei Jiuding Feed Co., Ltd. | Joint venture |
| Maoming Tongwei Jiuding Feed Co., Ltd. | Joint venture |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | Joint venture |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Joint venture |
| Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. | Joint venture |
| Lijiang LONGi Silicon Materials Co., Ltd. | Associate |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Associate |
| Name of other related parties | Relationship between other related parties and the Company |
| Chengdu Care Pet Food Co., Ltd. | The same ultimate control |
| Chengdu Tongwei Culture Media Co., Ltd. | The same ultimate control |
| Chengdu Tongwei Property Co., Ltd. | The same ultimate control |
| Chengdu Tongyu Property Co., Ltd. | The same ultimate control |
| Chengdu Xinrui Technology Development Co., Ltd. | The same ultimate control |
| Sichuan Huadi Hengtong Group Co., Ltd. | The same ultimate control |
| Meishan Tongwei Land Property Co., Ltd. | The same ultimate control |
| Leshan Yongxiang Polysilicon Co., Ltd. | The same ultimate control |
| Zhuhai Haiwei Feed Co., Ltd. | A wholly-owned subsidiary of the joint venture BioMar Tongwei (Wuxi) Biotech Co., Ltd. |
| Related party | Content of related party transaction | Amount in the current period | Amount in the previous period |
| Zhuhai Haiwei Feed Co., Ltd. | Feed, raw materials, packaging, labels | 51,746,426.23 | 106,061,035.89 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Cells, monocrystalline silicon wafers, pastes, chemical major materials | 24,038,384.44 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed, premix | 132,070.00 | 1,606,357.70 |
| Zhuhai Haiwei Feed Co., Ltd. | Processing charges | 35,145.94 | 35,073.44 |
| Leshan Yongxiang Polysilicon Co., Ltd. | Machinery equipment | 5,512,820.52 |
| Chengdu Tongyu Property Co., Ltd. | Property fees and service charge | 33,118,380.09 | 29,057,206.36 |
| Chengdu Tongwei Culture Media Co., Ltd. | Goods and labor services | 13,193,706.47 | 8,215,962.90 |
| Chengdu Xinrui Technology Development Co., Ltd. | ERP Information Management Platform | 600,000.00 | |
| Chengdu Xinrui Technology Development Co., Ltd. | Spare parts and equipment | 56,823,096.05 | 30,829,166.75 |
| Related party | Content of related party transaction | Amount in the current period | Amount in the previous period |
| Lijiang LONGi Silicon Materials Co., Ltd. | Polysilicon | 411,596,495.67 | 323,495,908.88 |
| Zhuhai Haiwei Feed Co., Ltd. | Raw materials, feed, medicine, packaging | 43,895,114.93 | 13,533,225.60 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed, raw materials, premix, packaging | 21,140,103.85 | 56,927,718.15 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Cells, monocrystalline silicon wafers, others, tooling | 13,986,289.11 | 9,622,828.86 |
| Tongwei Group Co., Ltd. and its subsidiaries | Food | 2,248,468.28 | 532,763.02 |
| Chengdu Care Pet Food Co., Ltd. | Premix | 171,972.50 | 134,395.00 |
| Maoming Tongwei Jiuding Feed Co., Ltd. | Feed | 86,878,572.97 | 157,780,969.90 |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | Feed, packaging | 24,455,667.01 | 68,614,519.94 |
| Hefei Tongwei Jiuding Feed Co., Ltd. | Feed | 8,406,436.28 | 66,667,939.32 |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | Feed | 12,039,841.63 | 58,963,841.98 |
| Tongwei Group Co., Ltd. | Feed | 17,250.00 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Machinery equipment | 1,655,191.09 | |
| Tongwei Group Co., Ltd. | Machinery equipment | 185,683.25 | |
| Zhuhai Haiwei Feed Co., Ltd. | Machinery equipment | 69,254.00 | |
| Chengdu Care Pet Food Co., Ltd. | Machinery equipment | 39,067.95 | |
| Meishan Tongwei Land Property Co., Ltd. | Office equipment | 4,275.14 | |
| Chengdu Care Pet Food Co., Ltd. | Testing service | 70,629.25 | 75,533.50 |
| Tongwei Group Co., Ltd. | Testing service | 5,629.25 | |
| Zhuhai Haiwei Feed Co., Ltd. | Service charge | 435,394.32 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Service service, engineering labor | 677,242.47 | |
| Tongwei Group Co., Ltd. and its subsidiaries | Others | 72,982.32 |
| Name of lessee | Type of leased assets | Lease income recognized in the current period | Lease income recognized in the previous period |
| Chengdu Care Pet Food Co., Ltd. | Machinery equipment | 4,948,883.02 | 5,267,228.58 |
| Chengdu Care Pet Food Co., Ltd. | Houses and buildings | 1,402,394.82 | 1,513,219.08 |
| Sichuan Huadi Hengtong Group Co., Ltd. | Houses and buildings | 16,274.31 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Houses and buildings | 2,582,095.45 |
| Name of lessor | Type of leased assets | Lease expenses recognized in the current period | Lease expenses recognized in the previous period |
| Chengdu Tongwei Property Co., Ltd. | Houses and buildings | 13,142,095.31 | 13,197,211.98 |
| Tongwei Group Co., Ltd. | Houses and buildings | 1,086,024.76 | 1,134,712.86 |
| Guarantor | Guaranteed amount | Starting date of the guarantee | Expiration date of the guarantee | Whether the guarantee has been fulfilled |
| Tongwei Group | 400,300,932.69 | 2020/2/25 | 2021/2/24 | No |
| Tongwei Group | 100,030,833.33 | 2020/2/25 | 2021/2/24 | No |
| Tongwei Group | 200,238,333.33 | 2020/3/13 | 2021/3/12 | No |
| Tongwei Group | 98,089,833.33 | 2020/4/30 | 2021/4/29 | No |
| Tongwei Group | 100,117,638.90 | 2020/8/31 | 2021/2/28 | No |
| Tongwei Group | 100,128,333.34 | 2020/9/29 | 2021/9/28 | No |
| Tongwei Group | 100,110,000.00 | 2020/10/30 | 2021/10/29 | No |
| Tongwei Group | 200,235,277.78 | 2020/12/10 | 2021/12/9 | No |
| Tongwei Group | 200,235,277.78 | 2020/12/25 | 2021/12/9 | No |
| Tongwei Group | 10,011.92 | 2020/6/12 | 2021/6/8 | No |
| Tongwei Group | 10,011.92 | 2020/6/12 | 2021/12/8 | No |
| Tongwei Group | 10,011.92 | 2020/8/14 | 2021/2/8 | No |
| Tongwei Group | 10,011.92 | 2020/8/14 | 2021/8/8 | No |
| Tongwei Group | 5,551,638.76 | 2016/11/25 | 2021/5/18 | No |
| Tongwei Group | 5,551,638.76 | 2016/11/25 | 2021/11/18 | No |
| Tongwei Group | 5,784,680.19 | 2017/3/16 | 2021/5/31 | No |
| Tongwei Group | 5,784,680.19 | 2017/3/16 | 2021/11/30 | No |
| Tongwei Group | 10,012,986.11 | 2020/6/22 | 2021/5/25 | No |
| Tongwei Group | 13,611,012.22 | 2016/11/25 | 2021/11/18 | No |
| Tongwei Group | 14,211,498.06 | 2017/3/16 | 2021/5/31 | No |
| Tongwei Group | 14,211,498.06 | 2017/3/16 | 2021/11/30 | No |
| Tongwei Group | 260,349,555.56 | 2019/10/31 | 2021/10/31 | No |
| Tongwei Group | 10,613,937.50 | 2020/11/24 | 2021/9/20 | No |
| Tongwei Group | 10,294,402.78 | 2020/11/23 | 2021/3/20 | No |
| Tongwei Group | 10,294,402.78 | 2020/11/23 | 2021/10/25 | No |
| Tongwei Group | 1,368,362.50 | 2020/10/27 | 2021/12/23 | No |
| Tongwei Group | 1,322,502.83 | No | ||
| Tongwei Group | 11,076.31 | No | ||
| Tongwei Group | 270,000,000.00 | 2020/5/29 | 2022/5/29 | No |
| Tongwei Group | 99,970,000.00 | 2020/6/12 | 2022/6/10 | No |
| Tongwei Group | 220,000,000.00 | 2020/6/22 | 2022/5/25 | No |
| Tongwei Group | 10,000,000.00 | 2020/6/22 | 2022/5/25 | No |
| Tongwei Group | 99,980,000.00 | 2020/8/14 | 2022/8/12 | No |
| Tongwei Group | 269,000,000.00 | 2020/10/27 | 2023/9/7 | No |
| Tongwei Group | 200,000,000.00 | 2020/11/11 | 2023/11/10 | No |
| Tongwei Group | 460,000,000.00 | 2020/11/23 | 2023/11/22 | No |
| Tongwei Group | 450,000,000.00 | 2020/11/24 | 2023/11/23 | No |
| Tongwei Group | 500,000,000.00 | 2020/12/28 | 2023/12/27 | No |
| Tongwei Group | 5,611,414.00 | 2016/11/25 | 2022/5/18 | No |
| Tongwei Group | 5,611,414.00 | 2016/11/25 | 2022/11/18 | No |
| Tongwei Group | 5,850,000.00 | 2017/3/16 | 2022/5/31 | No |
| Tongwei Group | 5,870,000.00 | 2017/3/16 | 2022/11/18 | No |
| Tongwei Group | 16,600,000.00 | 2017/3/16 | 2022/5/31 | No |
| Tongwei Group | 16,800,000.00 | 2017/3/16 | 2022/11/30 | No |
| Item | Amount in the current period | Amount in the previous period |
| Remuneration of key management personnel | 34,163,794.45 | 30,892,837.68 |
| Project name | Related party | Ending balance | Beginning balance | ||
| Book balance | Bad debt reserves | Book balance | Bad debt reserves | ||
| Accounts receivable | Tongwei Co., Ltd. | 45,544.80 | |||
| Accounts receivable | Tongwei Bioma (Wuxi) Biotechnology Co., Ltd. | 22,300.00 | |||
| Other receivables | Zhuhai Haiwei Feed Co., Ltd. | 14,995,598.87 | |||
| Other receivables | Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. | 4,274,559.53 | |||
| Project name | Related party | Book balance at the end of the period | Book balance at the beginning of the period |
| Accounts payable | Chengdu Xinrui Technology Development Co., Ltd. | 19,615,058.44 | 2,048,734.66 |
| Accounts payable | Chengdu Tongwei Culture Media Co., Ltd. | 3,583,632.38 | 480,010.53 |
| Accounts payable | Zhuhai Haiwei Feed Co., Ltd. | 209,203.69 | 175,075.93 |
| Accounts payable | Chengdu Tongyu Property Co., Ltd. | 683.05 | |
| Contract liability | Maoming Tongwei Jiuding Feed Co., Ltd. | 1,365,919.05 | |
| Contract liability | Zhongwei New Energy (Chengdu) Co., Ltd. | 1,350,000.37 | |
| Contract liability | BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 296,096.73 | |
| Contract liability | Tongwei Group Co., Ltd. | 7,988.20 | |
| Other payables | Chengdu Xinrui Technology Development Co., Ltd. | 670,000.00 | 450,000.00 |
| Other payables | Chengdu Tongwei Culture Media Co., Ltd. | 328,978.47 | 68,974.40 |
| Other payables | Chengdu Tongyu Property Co., Ltd. | 86,747.86 | 108,835.85 |
| Other payables | Zhuhai Haiwei Feed Co., Ltd. | 33,422.22 | 329,375.80 |
| Other payables | Shaoxing Tongwei Jiuding Feed Co., Ltd. | 12,365,759.65 | |
| Other payables | Huangmei Tongwei Jiuding Fodder Co., Ltd. | 8,763,049.31 | |
| Other payables | Hefei Tongwei Jiuding Feed Co., Ltd. | 5,357,569.86 | |
| Other payables | Maoming Tongwei Jiuding Feed Co., Ltd. | 249.22 | 2,839,538.75 |
| Other payables | BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 90,776.95 |
| Related party | Amount in the current period | Amount in the previous period |
| Huangmei Tongwei Jiuding Fodder Co., Ltd. | 270,061.53 | 328,485.06 |
| Hefei Tongwei Jiuding Feed Co., Ltd. | 175,665.88 | 388,124.68 |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 459,688.47 | 171,697.93 |
| Zhuhai Haiwei Feed Co., Ltd. | -715,997.24 | 35,737.92 |
| Maoming Tongwei Jiuding Feed Co., Ltd. | 129,735.92 | 5,824.56 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 751,919.52 | -1,078,741.84 |
| Total | 1,071,074.08 | -148,871.69 |
XIV. Commitments and Contingencies
1. Significant commitments
□Applicable √Inapplicable
2. Contingencies
(1). Significant contingencies existed on the balance sheet date
√Applicable □Inapplicable
External guaranteeAs of December 31, 2020, the Company's external guarantees, the repayment of guaranteed loansand the recovery of guaranteed credit sales after the statement date are as follows:
Providing guarantee to borrow money from financial institutions, which for husbandry farmers to buyTongwei feed and for farmers to build rooftop powerplants:
| Item | Starting date of the guarantee | Expiration date of the guarantee | Guaranteed amount | Return the loan or collect the loan after the statement date |
| Tongwei Agricultural Financing Guarantee Co., Ltd. provides guarantee for husbandry farmers to borrow money from financial institutions to buy Tongwei feed | 2020/1/3 | 2021/12/31 | 451,934,771.28 | 206,306,006.50 |
| Tongwei Agricultural Financing Guarantee Co., Ltd. provides guarantee for farmers to borrow money from financial institutions to build rooftop powerplants | 2017/9/15 | 2028/5/31 | 23,430,098.75 | 651,086.46 |
| Total | 475,364,870.03 | 206,957,092.96 |
| Proposed profit or dividends | 1,084,873,112.34 |
| Profit or dividends declared to be paid after examination and approval |
raised during the establishment of the current employee stock ownership plan does not exceed 1,350million yuan, and the source of stocks is purchased in the secondary market (including but not limited tobidding transactions, block transactions (including but not limited to the transfer of shares from thecontrolling shareholder) transfer by agreement) and other methods permitted by laws and regulations.Except for the above matters, as of April 9, 2021, the Company had no other major post-balance sheetmatters that need to be disclosed.
XVI. Other Significant Events
1. Correction of accounting errors in the previous period
(1). Retrospective restatement
□Applicable √Inapplicable
(2). Prospective application
□Applicable √Inapplicable
2. Debt restructuring
□Applicable √Inapplicable
3. Replacement of assets
(1). Exchange of non-monetary assets
□Applicable √Inapplicable
(2). Replacement of other assets
□Applicable √Inapplicable
4. Annuity plan
□Applicable √Inapplicable
5. Discontinued operation
□Applicable √Inapplicable
6. Segment information
(1). Determination basis and accounting policy of reporting segments
√Applicable □Inapplicable
The Company determines the operating segments on the basis of internal organization structure,management requirements and internal reporting system. An operating segment of the Company is acomponent that satisfies all of the following conditions:① it is able to create revenue and incur expensesfrom ordinary business activities; ② its operating results can be regularly reviewed by the Managementfor making decision about resources to be allocated and to assess its performance;③ the accountinginformation on its financial position, operating results and cash flow is available through analysis. Wheretwo or more operating segments have similar economic features and meet certain conditions, they can becombined into one operating segment.The Company determines the reporting segments based on the business segments. The major businessincome and cost, assets and liabilities are divided according to similar business operating entities.
(2). Financial information of reporting segments
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Item | Management headquarters | Agriculture and animal husbandry business | PV business | Offset among segments | Total |
| Total assets | 32,824,494,504.24 | 7,239,459,251.35 | 49,794,896,994.95 | 25,606,902,679.63 | 64,251,948,070.91 |
| Total liabilities | 7,330,083,315.43 | 4,287,557,341.80 | 35,825,264,345.46 | 14,734,903,241.97 | 32,708,001,760.72 |
| Major business income | 20,935,749,897.11 | 22,502,320,432.61 | 4,426,670.69 | 43,433,643,659.03 | |
| Cost of major operations | 18,699,941,643.52 | 17,284,675,795.86 | 3,298,026.69 | 35,981,319,412.69 |
State Grid Anhui Electric Power Company issued on February 17, 2016, the ground distributed PVpowerplants are built firstly and got firstly. After the project is completed, it will be included in the annualconstruction scale of our province in accordance with the order of grid connection. The Company has builtthe first and second phases of Fishery & PV Integration PV powerplants, with a grid-connected scale of
64.59MW, which were connected to the grid for power generation at the end of July 2017 and January2018 respectively, and received a subsidy indicator of 3.9MW in March 2020. It is expected that thepossibility of subsidizing the target is small by the end of 2020.
2) PV Power Project in Fengnan, Tangshan of Hebei
Fishery & PV Integration PV Powerplant in Fengnan Tangshan Hebei obtained record with theJFGNYBZ No. [2017] No. 107 of Hebei Provincial Development and Reform Commission on May 31,2017, and was connected to the grid in December 2018, with a grid size of 74.2MW. The subsidy indicatorof 24MW has been obtained. By the end of 2020, it is expected that the possibility of obtaining the subsidyindicator in the future is small.The above PV power generation projects are expected to have future cash inflows lower than theinvestment and construction expectations, and there are signs of impairment. For this reason, in accordancewith the principle of prudence, impairment tests are conducted based on the existing subsidy indicators,and impairment reserves of RMB 221,877,000 are accrued.
(4) Loss from scrapping of fixed assets
In 2020, there was a loss of 399,711,800 yuan from scrapped fixed assets, mainly including:
1) Sichuan Yongxiang Polysilicon Co., Ltd. dismantled assets and lost 288.4797 million yuan
The Company upgraded the distillation and reduction sections of the original 20,000MT high-puritypolysilicon project, and dismantled part of the equipment. In the fourth quarter of 2020, after on-site surveyand appraisal by engineering technology and equipment management personnel, the corresponding assetsare no longer used, and it was scrapped. The original book value of the scrapped assets was 573,125,100yuan, the book value was 293,318,500 yuan, and the net loss after deducting the estimated residual valuewas 288,479,700 yuan.
2) Tongwei Solar (Hefei) Co., Ltd. lost RMB 60,521,800 from dismantling assets
According to data from PVInfolink, the market share of multicrystalline cells in 2020 was about 10%,and it was expected that the market share of multicrystalline cells would further reduce to 2% in 2022.However, due to the price advantage of multicrystalline modules, there is still a certain market demand inthe market of Southeast Asia, India, etc.; in order to reduce production costs, the Company optimized andupgraded the polycrystalline production line in the fourth quarter of 2020 to extend the life cycle ofpolycrystalline products and scrap the dismounted equipment; the original book value of the scrappedassets was 201,261,800 yuan, the book value was 68,568,500 yuan, and the net loss after deducting theestimated residual value was 60,521,800 yuan.
3) Tongwei Solar (Chengdu) Co., Ltd. lost 27,562,600 yuan from dismantling assets
With the development trend of large-size products in the market, after full demonstration, the originalsmall-size R&D equipment has no further R&D value, and the Company dismantled and scrapped theequipment. At the same time, in order to extend the life cycle of the 156-size production line as much aspossible, the Company carried out technical innovation to the 156-size production line in the fourth quarterof 2020, and part of the equipment was dismantled in the process. The original book value of the aboveassets was RMB 46,827,300, the book value was RMB 29,382,600, and the net loss after deducting theestimated residual value was RMB 27,562,600.
(5) Flood damage
On August 17, 2020, Leshan City was hit by serious flood, which caused the loss of RMB428,187,300 of Sichuan Yongxiang Co., Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., SichuanYongxiang New Materials Co., Ltd., and Sichuan Yongxiang Silicon in Wutongqiao District, Leshan City.After deducting insurance compensation of RMB 363,800,000, and net loss of RMB 64,387,300;insurance compensation RMB 60 million and RMB 303.80 million was received on December 29, 2020and February 7, 2021 respectively.
(6) The impact of the "bill pool" business on the Company's assets and liabilities
The Company's PV industry generally uses bill settlement. With the growth of business scale and thedevelopment of the "bill pool" business, the Company uses unexpired bills as pledge to issue bills payablefor payment to suppliers, etc., so the bills receivable and payable increase significantly. At the end of 2020,the balance of bills receivable (listed as financing receivables) and bills payable reached 9.712 billion yuanand 9.364 billion yuan, accounting for 15.12% and 28.63% of total assets and total liabilities respectively,
and it has an impact of 8.38 percent points on the debt-to-asset ratio, see the following table for details(amount unit: RMB 10,000):
| Item | Number of consolidated statements | Influence number | Number of influence deduction |
| Current assets | 2,559,155.20 | -936,391.47 | 1,622,763.74 |
| Non-current assets | 3,866,039.60 | 3,866,039.60 | |
| Total assets | 6,425,194.81 | -936,391.47 | 5,488,803.34 |
| Current liabilities | 2,238,052.39 | -936,391.47 | 1,301,660.92 |
| Non-current liabilities | 1,032,747.78 | 1,032,747.78 | |
| Total liabilities | 3,270,800.18 | -936,391.47 | 2,334,408.71 |
| Debt-to-asset ratio | 50.91% | 42.53% |
| Account receivable age | Book balance at the end of the period |
| Subtotal within one year | 2,858,938.09 |
| 1-2 years | 318,617.40 |
| 2-3 years | |
| Over 3 years | 888,421.96 |
| Total | 4,065,977.45 |
Unit:Yuan Currency: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Book balance | Bad debt reserves | Book value | Book balance | Bad debt reserves | Book value | |||||
| Amount | Proportion (%) | Amount | Proportion of provision (%) | Amount | Proportion (%) | Amount | Proportion of provision (%) | |||
| Provision for bad debt reserve is made by portfolio | 4,065,977.45 | 100.00 | 1,063,230.60 | 26.15 | 3,002,746.85 | 14,385,814.78 | 100.00 | 2,566,995.33 | 17.84 | 11,818,819.45 |
| Including: | ||||||||||
| Portfolio 4 | 4,065,977.45 | 100.00 | 1,063,230.60 | 26.15 | 3,002,746.85 | 14,385,814.78 | 100.00 | 2,566,995.33 | 17.84 | 11,818,819.45 |
| Total | 4,065,977.45 | / | 1,063,230.60 | / | 3,002,746.85 | 14,385,814.78 | / | 2,566,995.33 | / | 11,818,819.45 |
(3). About provision for bad debt
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Category | Beginning balance | Change amount in the current period | Ending balance | |||
| Provision | Accounts recovered or transferred back | Amounts written off or charged off | Other changes | |||
| Provision for bad debt of accounts receivable | 2,566,995.33 | -183,613.01 | 608,053.08 | -712,098.64 | 1,063,230.60 | |
| Total | 2,566,995.33 | -183,613.01 | 608,053.08 | -712,098.64 | 1,063,230.60 | |
| Item | Amount written off |
| Account receivable actually written off | 608,053.08 |
| Company name | Nature of accounts receivable | Amount written off | Reasons for written off | The written off procedure performed | Is the payment caused by related party transaction |
| Client 1 | Payment for goods | 477,396.68 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 2 | Payment for goods | 46,789.61 | Expected to be unable to recover the payment | Approval by authority | No |
| Client 3 | Payment for goods | 83,866.79 | Expected to be unable to recover the payment | Approval by authority | No |
| Total | / | 608,053.08 | / | / | / |
(7). Assets and liabilities formed by the transfer of accounts receivable and continuousinvolvement
□Applicable √Inapplicable
Other notes:
□Applicable √Inapplicable
2. Other payables
Item presentation
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | ||
| Dividend receivable | 1,371,854.15 | |
| Other payables | 12,569,916,260.88 | 12,953,093,766.22 |
| Total | 12,569,916,260.88 | 12,954,465,620.37 |
| Project (or invested unit) | Ending balance | Beginning balance |
| Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | 1,371,854.15 | |
| Total | 1,371,854.15 |
□Applicable √Inapplicable
Other payables
(1). Disclosure by account receivable age
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Account receivable age | Book balance at the end of the period |
| Subtotal within one year | 13,093,380,477.87 |
| 1-2 years | 1,418,853.43 |
| 2-3 years | 2,414,551.04 |
| Over 3 years | 2,889,653.50 |
| Total | 13,100,103,535.84 |
| Payment nature | Book balance at the end of the period | Book balance at the beginning of the period |
| Transaction with affiliated parties | 13,087,118,075.50 | 13,280,568,481.17 |
| Assets disposal amount | 115,929,359.00 | |
| Deposit | 4,844,381.00 | 32,372,761.49 |
| Others | 8,141,079.34 | 6,163,656.97 |
| Total | 13,100,103,535.84 | 13,435,034,258.63 |
| Bad debt reserves | Stage 1 | Stage 2 | Stage 3 | Total |
| Expected credit loss in the future 12 months | Expected credit loss within whole duration (no credit impairment occur) | Expected credit loss within whole duration (credit impairment has occurred) | ||
| Balance on January 1, 2020 | 481,940,492.41 | 481,940,492.41 | ||
| The balance on January 1, 2020 is in the current period | ||||
| --Be transferred to Stage 2 | ||||
| -- Be transferred to Stage 3 | -7,524,313.83 | 7,524,313.83 | ||
| --Be transferred back to Stage 2 | ||||
| --Be transferred back to Stage 1 | ||||
| Provision in the current period | 57,273,211.73 | 57,273,211.73 | ||
| Amount transferred back in the current period | ||||
| Charged off in the current period | ||||
| Written off in the current period | -7,524,313.83 | -7,524,313.83 | ||
| Other changes | -1,502,115.35 | -1,502,115.35 | ||
| 20Balance on January 1, 2020 | 530,187,274.96 | 530,187,274.96 |
The provision amount of bad debt reserves in the current period and the basis for assessingwhether the credit risk of financial instruments has increased significantly:
□Applicable √Inapplicable
(4). About provision for bad debt
√Applicable □Inapplicable
Unit:Yuan Currency: RMB
| Category | Beginning balance | Change amount in the current period | Ending balance | |||
| Provision | Accounts recovered or transferred back | Amounts written off or charged off | Other changes | |||
| Other payables | 481,940,492.41 | 57,273,211.73 | 7,524,313.83 | -1,502,115.35 | 530,187,274.96 | |
| Total | 481,940,492.41 | 57,273,211.73 | 7,524,313.83 | -1,502,115.35 | 530,187,274.96 | |
| Company name | Nature of payment | Ending balance | Account receivable age | Proportion in total ending balance of other accounts receivable (%) | Ending balance of bad debt reserves |
| Sichuan Yongxiang New Energy Co., Ltd. | Related transactions | 1,917,612,141.53 | Within one year | 14.64 | |
| Inner Mongolia Tongwei High-purity Crystalline Silicon Co., Ltd. | Related transactions | 1,647,993,872.59 | Within one year | 12.58 | |
| Sichuan Yongxiang Co., Ltd. | Related transactions | 954,418,433.48 | Within one year | 7.29 | |
| Sichuan Yongxiang Polysilicon Co., Ltd. | Related transactions | 871,930,242.89 | Within one year | 6.66 | |
| Tongwei Solar (Hefei) Co., Ltd. | Related transactions | 680,992,877.29 | Within one year | 5.20 | |
| Total | / | 6,072,947,567.78 | / | 46.37 |
□Applicable √Inapplicable
3. Long-term equity investments
√Applicable □Inapplicable
Unit:Yuan Currency:RMB
| Item | Ending balance | Beginning balance | ||||
| Book balance | Impairment reserves | Book value | Book balance | Impairment reserves | Book value | |
| Investment in subsidiaries | 13,629,952,348.59 | 19,271,456.80 | 13,610,680,891.79 | 10,990,038,707.01 | 169,201,456.80 | 10,820,837,250.21 |
| Investment in joint ventures and associates | 225,720,367.11 | 225,720,367.11 | 128,754,898.97 | 128,754,898.97 | ||
| Total | 13,855,672,715.70 | 19,271,456.80 | 13,836,401,258.90 | 11,118,793,605.98 | 169,201,456.80 | 10,949,592,149.18 |
| Invested entity | Beginning balance | Increase in the current period | Decrease in the current period | Ending balance | Provision for impairment provided in the current period | Ending balance of impairment reserves |
| Sichuan Yongxiang Co., Ltd. | 2,372,199,373.39 | 1,731,500,000.00 | 4,103,699,373.39 | |||
| Tongwei Solar (Hefei) Co., Ltd. | 2,884,624,940.43 | 2,884,624,940.43 | ||||
| Tongwei New Energy Co., Ltd. | 2,531,478,640.76 | 1,524,433,300.00 | 4,055,911,940.76 | |||
| Chongqing Tongwei Feed Co., Ltd. | 23,074,213.76 | 23,074,213.76 | ||||
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | 11,605,910.79 | 11,605,910.79 | ||||
| Nanning Tongwei Feed Co., Ltd. | 28,978,368.63 | 28,978,368.63 | ||||
| Chengdu Tongwei Aquatic Products Technology Co., Ltd. | 9,245,867.39 | 9,245,867.39 | ||||
| Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | 7,000,000.00 | 7,000,000.00 | ||||
| Chengdu Tongwei Fish Co., Ltd. | 18,889,244.77 | 18,889,244.77 | ||||
| Chengdu Ronglai Tongwei Feed Co., Ltd. | 16,000,000.00 | 16,000,000.00 | ||||
| Tongwei (Chengdu) Aquatic Food Co., Ltd. | 183,000,000.00 | 183,000,000.00 | ||||
| Chengdu Xintaifeng Agricultural Development Co., Ltd. | 197,000,000.00 | 197,000,000.00 | ||||
| Tongwei (Chengdu) Agriculture Investment Holding Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Sichuan Tongguang Construction Engineering Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Tongwei Agricultural Financing Guarantee Co., Ltd. | 100,000,000.00 | 100,000,000.00 |
| Panzhihua Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Tongwei Aquatic Products Co., Ltd. | 56,000,000.00 | 22,000,000.00 | 78,000,000.00 | |||
| Chongqing Changshou Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Qianxi Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Chengdu Tongwei Automation Equipment Co., Ltd. | 1,874,054.14 | 10,229,800.00 | 12,103,854.14 | |||
| Kunming Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Tongwei (Chengdu) Salmon Co., Ltd. | 52,275,000.00 | 52,275,000.00 | ||||
| Shandong Tongwei Feed Co., Ltd. | 703,760.04 | 703,760.04 | ||||
| Suzhou Tongwei Special Feed Co., Ltd. | 26,138,780.12 | 26,138,780.12 | ||||
| Xiamen Tongwei Feed Co., Ltd. | 13,752,585.43 | 13,752,585.43 | ||||
| Zaozhuang Tongwei Feed Co., Ltd. | 18,987,038.58 | 18,987,038.58 | ||||
| Huai'an Tongwei Feed Co., Ltd. | 10,599,481.76 | 10,599,481.76 | ||||
| Yangzhou Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Lianyungang Tongwei Feed Co., Ltd. | 80,000,000.00 | 80,000,000.00 | ||||
| Zibo Tongwei Food Co., Ltd. | 3,800,000.00 | 3,800,000.00 | ||||
| Nantong Bada Feed Co., Ltd. | 57,372,600.00 | 57,372,600.00 | ||||
| Tongwei (Dafeng) Feed Co., Ltd. | 49,900,133.00 | 49,900,133.00 | ||||
| Zibo Tongwei Food Co., Ltd. | 50,000,000.00 | 50,000,000.00 | 12,420,000.00 | |||
| Shashi Tongwei Feed Co., Ltd. | 21,851,065.30 | 21,851,065.30 | ||||
| Yuanjiang Tongwei Feed Co., Ltd. | 70,858,072.03 | 70,858,072.03 | ||||
| He'nan Tongwei Feed Co., Ltd. | 6,518,994.97 | 6,518,994.97 | ||||
| Guangdong Tongwei Feed Co., Ltd. | 59,994,628.41 | 59,994,628.41 | ||||
| Wuhan Tongwei Feed Co., Ltd. | 16,479,438.23 | 16,479,438.23 | ||||
| Jieyang Tongwei Feed Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Tongwei (Hainan) Aquatic Products Co., Ltd. | 201,859,769.84 | 201,859,769.84 | ||||
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | 85,711,797.01 | 85,711,797.01 | ||||
| Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | 3,940,000.00 | |||
| Foshan Tongwei Feed Co., Ltd. | 30,095,100.00 | 30,095,100.00 | ||||
| Foshan Gaoming Tongwei Feed Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Tianmen Tongwei Biotechnology Co., Ltd. | 15,000,000.00 | 15,000,000.00 | ||||
| Binyang Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 |
| Fuzhou Tongwei Willianm Feed Co., Ltd. | 32,500,000.00 | 32,500,000.00 | ||||
| Changchun Tongwei Feed Co., Ltd. | 10,585,208.09 | 10,585,208.09 | ||||
| Tianjin Tongwei Feed Co., Ltd. | 14,700,000.00 | 14,700,000.00 | ||||
| Langfang Tongwei Feed Co., Ltd. | 15,000,000.00 | 15,000,000.00 | ||||
| Ningxia Yinchuan Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Harbin Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Nanjing Tongwei Aquatic Products Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | ||||
| Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | 31,897,204.89 | 31,897,204.89 | ||||
| Hainan Haiyi Aquatic Seed Co., Ltd. | 20,763,456.80 | 20,763,456.80 | 2,911,456.80 | |||
| Tongwei Holding Pte. Ltd. | 61,605,594.60 | 61,605,594.60 | ||||
| Tongwei Industrial (Tibet) Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Chizhou Tongwei Feed Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Honghu Tongwei Feed Co., Ltd. | 90,164,469.77 | 90,164,469.77 | ||||
| Chengdu Tongwei Aquatic Seed Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
| Hengshui Tongwei Feed Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
| Qingyuan Tongwei Feed Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
| Hainan Haiyi Biotechnology Co., Ltd. | 1,226,165.52 | 1,226,165.52 | ||||
| Sichuan Tongwei Food Co., Ltd. | 3,500,000.00 | 44,500,000.00 | 48,000,000.00 | |||
| Hanshou Tongwei Feed Co., Ltd. | 27,900,000.00 | 27,900,000.00 | ||||
| Tianmen Tongwei Aquatic Products Technology Co., Ltd. | 25,939,300.00 | 25,939,300.00 | ||||
| Sichuan Fishery-PV Wulian Technology Co., Ltd. | 1,200,000.00 | 1,200,000.00 | ||||
| Sichuan Willtest Technology Co., Ltd. | 20,551,100.00 | 343,861.76 | 20,894,961.76 | |||
| Wuxi Tongwei Biotechnology Co., Ltd. | 150,007,603.05 | 150,007,603.05 | ||||
| Zhejiang Tongwei Solar Co., Ltd. | 8,000,000.00 | 8,000,000.00 | ||||
| Tongwei New Energy Engineering Design (Sichuan) Co., Ltd. | 4,300,000.00 | 4,300,000.00 | ||||
| Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | 15,000,000.00 | 15,000,000.00 | ||||
| Sichuan Tongwei Feed Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | 40,800,000.00 | 40,800,000.00 | ||||
| Sichuan Yongxiang New Material Co., Ltd. | 83,053,975.00 | 83,053,975.00 |
| Chengdu Tongwei Quannonghui Electronic Commerce Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
| Nanchang Tongwei Biotechnology Co., Ltd. | 96,000,000.00 | 96,000,000.00 | ||||
| Yangjiang Haiyi Biotechnology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Gongan County Tongwei Aquatic Products Technology Co., Ltd. | 5,000,000.00 | 5,000,000.00 | ||||
| Chengdu Xintaifeng Livestock and Poultry Farming Co., Ltd. | 53,800,000.00 | 53,800,000.00 | ||||
| Chengdu Chunyuan Food Co., Ltd | 97,764,129.77 | 97,764,129.77 | ||||
| Sichuan Chunyuan Ecological Breeding Co., Ltd. | 15,146,640.74 | 15,146,640.74 | ||||
| Zhanjiang Haixianfeng Bio-tech Co., Ltd. | 765,000.00 | 765,000.00 | ||||
| Nanning Tongwei Biotechnology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Maoming Tongwei Biotechnology Co., Ltd. | 40,000,000.00 | 40,000,000.00 | ||||
| Total | 10,990,038,707.01 | 3,423,006,961.76 | 783,093,320.18 | 13,629,952,348.59 | 19,271,456.80 |
| Investment unit | Beginning balance | Increase / decrease in the current period | Ending balance | Ending balance of impairment reserves | |||||||
| Additional investment | Reduced investment | Investment profit or loss recognized under equity method | Adjustments in other comprehensive income | Other equity changes | Cash dividend or profit declared to distribute | Provision for impairment reserves | Others | ||||
| I. Joint Ventures | |||||||||||
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 5,363,465.90 | 374,442.93 | 5,737,908.83 | ||||||||
| Hefei Tongwei Jiuding Feed Co., Ltd. | 5,570,133.37 | -341,236.30 | 5,228,897.07 | ||||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 9,083,496.02 | 674,274.34 | 9,757,770.36 | ||||||||
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 4,105,011.98 | -390,230.55 | 3,714,781.43 | ||||||||
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 104,632,791.70 | -3,407,482.28 | 101,225,309.42 | ||||||||
| Subtotal | 128,754,898.97 | -3,090,231.86 | 125,664,667.11 | ||||||||
| II. Affiliated Business | |||||||||||
| Bohai Aquatic Products Co., Ltd. | 100,055,700.00 | 100,055,700.00 | |||||||||
| Subtotal | 100,055,700.00 | 100,055,700.00 | |||||||||
| Total | 128,754,898.97 | 100,055,700.00 | -3,090,231.86 | 225,720,367.11 | |||||||
| Item | Amount in the current period | Amount in the previous period | ||
| Income | Cost | Income | Cost | |
| Major business | 4,074,241,307.34 | 3,607,501,899.05 | 3,929,030,419.81 | 3,434,789,856.41 |
| Other business | 118,253,970.35 | 29,896,596.70 | 678,970,624.42 | 634,615,941.56 |
| Total | 4,192,495,277.69 | 3,637,398,495.75 | 4,608,001,044.23 | 4,069,405,797.97 |
| Item | Amount in the current period | Amount in the previous period |
| Long-term equity investment income calculated by cost method | 4,058,240,234.33 | 1,481,568,295.32 |
| Investment income of long-term equity investments measured under equity method | -3,090,231.86 | 6,605,886.65 |
| Investment income from disposal of long-term equity investments | -360,357,041.95 | 715,348.63 |
| Investment income of trading financial assets during the holding period | ||
| Dividend income from other equity instrument investments during the holding period | ||
| Interest income from debt investments during the holding period |
| Interest income from other debt investments during the holding period | ||
| Investment income from disposal of trading financial assets | ||
| Investment income from the disposal of other equity instrument investments | ||
| Investment income from disposal of debt investment | ||
| Investment income from the disposal of other debt investments | ||
| Investment income from purchasing bank wealth management products | 1,298,783.09 | 1,180,005.16 |
| Total | 3,696,091,743.61 | 1,490,069,535.76 |
| Item | Amount | Notes |
| Profit and loss of disposal on non-current liability | 1,541,869,733.03 | |
| Government subsidies included in the current profit and loss (exclusive of those which are closely related with the enterprise business or granted according to national standard fixed rate or quantity) | 296,657,874.92 | |
| In addition to the effective hedging business related to the normal business operations of the Company, the fair value gains and losses arising from holding transactional financial assets, derivative financial assets, transactional financial liabilities, and derivative financial liabilities, as well as the investment income from the disposal of transactional financial assets, derivative financial from assets, transactional financial liabilities, derivative financial liabilities and other debt investments; | 14,385,110.27 | |
| Other non-operating income and expenses other than the above items | -439,396,332.17 | |
| Amount of influence of income tax | -209,491,363.52 | |
| Amount of influence of minority shareholders' equity | -4,655,892.34 | |
| Total | 1,199,369,130.19 |
| Profit for the reporting period | Earnings per share |
| Weighted average return on equity (%) | Basic earnings per share | Diluted earnings per share | |
| Net profit attributable to common shareholders of the Company | 16.13 | 0.8581 | 0.8466 |
| Net profit net of non-recurring profit or loss attributable to common shareholders of the Company | 10.77 | 0.5729 | 0.5680 |
| List of Documents Available for Inspection | Financial statements signed and sealed by the person in charge of the Company, the person in charge of accounting work and the person in charge of the accounting firm (accountant in charge). |
| List of Documents Available for Inspection | The original copy of Audit Report sealed by the accounting firm and sealed and signed by certified public accountants. |
| List of Documents Available for Inspection | Originals of all documents and announcements which have been publicly disclosed on the website specified by CSRC during the reporting period. |