Stock Code: 600438 Short Name: Tongwei Co., Ltd.
Tongwei Co., Ltd.Annual Report 2021
Important NoticeI. The board of directors, board of supervisors as well as directors, supervisors and seniormanagers of the Company are responsible for the authenticity, accuracy and completeness ofthe information contained in this Annual Report without false records, misleading statementsor material omissions, and assume joint and several liability therefor.
II. All directors of the Company have been presented in the board meeting.
III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualified
opinion on the Company.
IV. Xie Yi, Head of the Company, Zhou Bin, Head of accounting affairs and Lei Jiaowen, Head ofaccounting department represent that they are responsible for the authenticity, accuracy andcompleteness of the financial statements in this Annual Report.
V. The proposal on profit distribution or the proposal on conversion of capital reserve to sharecapital for the year of 2021 resolved in the board meeting
Given the funds and investments of the Company in 2022, based on the total 4,501,548,184 shares ofthe Company, a cash dividend of 9.12 yuan (including tax) per ten shares would be distributed to allshareholders for a total distribution of 4,105,411,943.81 yuan. This proposal has been approved in the 28thsession of the seventh board of directors, and has not been submitted to the shareholder meeting forapproval.
VI. Cautionary note on forward-looking statement"√ Applicable" "□ Not applicable"
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. Any funds possessed by the controlling shareholder and other related parties for non-operatingpurposes?
NoVIII. Any outward guarantee by the Company in violation of the prescribed decision-makingprocedures?
No
IX. More than half of the directors cannot guarantee the authenticity, accuracy andcompleteness of this Annual Report?
No
X. Note on significant risks
The Company had detailed possible risks in this Report. Please refer to VI Discussion and Analysison the Company's Future Development in Section III Management Discussion and Analysis for moreinformation on possible risks and actions.
XI. Others"□ Applicable" "√ Not applicable"
Contents
Section I. Definitions ........................................................................................................................... 4
Section II. Company Profile and Major Financial Indicators ............................................................... 6
Section III. Management Discussion and Analysis ................................................................................ 9
Section IV. Company Governance ....................................................................................................... 37
Section V. Environmental and Social Responsibility ......................................................................... 54
Section VI. Important Matters .............................................................................................................. 67
Section VII. Share Changes and Shareholders ...................................................................................... 82
Section VIII. Preference Shares .............................................................................................................. 95
Section IX. Bonds ................................................................................................................................ 95
Section X. Financial Report ................................................................................................................ 98
| List of Documents for Review | Financial statements bearing the signatures and seals of the head of the Company, the head of the accounting affairs, and the head of the accounting department. |
| Original auditor's report bearing the seal of the accountant firm and the signatures of the CPAs. | |
| Formal copies of all Company documents and the original announcements publicly disclosed in websites designated by the CSRC. |
Section I. Definitions
I. DefinitionsUnless otherwise indicated in the context, the following terms shall have the following meanings in thisReport:
| Description of common terms | ||
| Tongwei, Company, We, or Us | refers to | Tongwei Co., Ltd. |
| Tongwei Group | refers to | Tongwei Group Co., Ltd. |
| Yongxiang | refers to | 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 Hongwei High-purity Crystalline Silicon Company |
| Yunnan Tongwei | refers to | Yunnan Tongwei High-purity Crystalline Silicon Company |
| Tongwei New Energy | refers to | Tongwei New Energy Co., Ltd. |
| Hefei Solar | refers to | Tongwei Solar (Hefei) Co., Ltd. |
| Anhui Solar | refers to | Tongwei Solar (Anhui) Co., Ltd. |
| Chengdu Solar | refers to | Tongwei Solar (Chengdu) Co., Ltd. |
| Meishan Solar | refers to | Tongwei Solar (Meishan) Co., Ltd. |
| Tongyu Property | refers to | Chengdu Tongyu Property Management Co., Ltd. |
| Phase II 50,000-ton High-purity Polysilicon Project in Leshan | refers to | Technical renovation project on PV silicon material manufacturing (Phase II High-purity Polysilicon Project) |
| Phase I 50,000-ton High-purity Polysilicon Project in Baoshan | refers to | High-purity Polysilicon green energy project (Phase I 50,000-ton High-purity Polysilicon Project) |
| Phase II 50,000-ton High-purity Polysilicon Project in Baotou | refers to | PV silicon material manufacturing project (Phase II 50,000 -ton High-purity Polysilicon Project) |
| Phase I 7.5 GW High-efficiency Solar Cell Project in Meishan | refers to | Project on the application of homemade intelligent equipment (system) powered by high-efficiency silicon-based solar cells with an annual capacity of 7.5 GW (Meishan Phase I) |
| Phase II 7.5 GW High-efficiency Solar Cell Project in Meishan | refers to | Project on the application of intelligent factory powered by high-efficiency silicon-based solar cells with an annual capacity of 7.5 GW (Meishan Phase II) |
| Phase I 7.5 GW High-efficiency Solar Cell Project in Jintang | refers to | Project on the application of intelligent connected factory powered by high-efficiency silicon-based solar cells with an annual capacity of 7.5 GW (Jintang Phase I) |
| Tonghe Project | refers to | A high-efficiency silicon-based cell project with an annual capacity of 15 GW by Tongwei Solar and Trina Solar |
| Leshan Monocrystalline Rod Pulling and Cutting Project | refers to | 15 GW monocrystalline Rod Pulling and Cutting Project |
| Tongwei Media | refers to | Chengdu Tongwei Culture Media Co., Ltd. |
| CSRC | refers to | China Securities Regulatory Commission |
| SSE | refers to | Shanghai Stock Exchange |
| Designated Disclosure Media | refers to | China Securities Journal, Shanghai Securities News, Securities Daily, and STCN |
| LONGi | refers to | LONGi Green Energy Technology Co., Ltd. |
| Zhonghuan Semiconductor | 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 (Special General Partnership) |
| Energy conversion efficiency | refers to | A measure that indicates the ability of solar cells to convert light energy into electrical energy |
| Convertible bonds | refers to | Convertible corporate bonds |
| W | refers to | Watt, the unit of power |
| KW, MW, and GW | refers to | Units of power, 1 KW = 1,000 W, 1 MW = 1,000 KW, and 1 GW = 1,000 MW |
| High-purity polysilicon | refers to | High-purity metal silicon with purity greater than 99.9999999% |
| 166 mm cell | refers to | a cell produced with M6 silicon wafer (with a length of 166 mm), whose area is 12.21% larger than that of a cell produced by the conventional M2 silicon wafer (with a length of 156.75 mm). |
| 182 mm cell | refers to | a cell produced with M10 silicon wafer (with a length of 182 mm), whose area is 35.34% larger than that of a cell produced by the conventional M2 silicon wafer (with a length of 156.75 mm). |
| 210 mm cell | refers to | a cell produced with M12 silicon wafer (with a length of 210 mm) whose area is 80.5% larger than that of a cell produced by the conventional M2 silicon wafer (with a length of 156.75 mm). |
| PERC cell | refers to | Passivated Emitter and Rear Contact, a high-efficiency crystalline silicon solar cell structure, where a passivation layer of Al2O3 or SiNx is added on the back side of the cell to deal with the high carrier recombination on the back side of all aluminum back surface field solar cells, and then the film will be opened to make the aluminum back surface field effectively contact with the silicon substrate. |
| IBC cell | refers to | Interdigitated Back Contact, a high-efficiency solar cell structure. The front side only has a passivation and anti-reflection coating without any grating electrodes with both positive and negative poles crossed on the back side. The biggest feature of an IBC cell is that both the PN junction and metal contact are on the back side so that the front side is protected against from the metal shading, which provides more effective power generation area and therefore helps increasing the energy conversion efficiency. |
| TOPCon cell | 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 energy conversion efficiency. |
| HJT cell | 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 cells are welcomed due to their |
| low process temperature, good passivation effect, high open-circuit voltage and double-sided power generation. | ||
| 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. A higher CTM value indicates a smaller degree of module package power loss. |
| Reporting period | refers to | The period from January 1, 2021 to December 31, 2021 |
| CPIA | refers to | China Photovoltaic Industry Association |
| IRENA | refers to | International Renewable Energy Agency |
Section II. Company Profile and Major Financial Indicators
I. Company information
| Full Chinese name | 通威股份有限公司 |
| Short Chinese name | 通威股份 |
| Full English name | TONGWEI CO., LTD. |
| Short English name | TONGWEI CO., LTD. |
| Legal representative | Xie Yi |
II. Contacts and contact details
| 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 |
| Telephone | 028-86168555 | 028-86168555 |
| Fax | 028-85199999 | 028-85199999 |
| yank@tongwei.com | lihy05@tongwei.com |
III. Basic information
| Registered address | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone |
| Changes of the registered address | In the Third Interim Shareholder Meeting held on November 16, 2016, the Company discussed and resolved the Tongwei Co., Ltd Proposal on Changing its Registered Address and Modifying its Articles of Association by agreeing to change the registered address from No. 11, Forth Section of South 2nd Ring Road, High-tech Zone, Chengdu” to “No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu” |
| Office address | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone |
| Post code | 610041 |
| Website | http://www.tongwei.com.cn/ |
| zqb@tongwei.com |
IV. Information disclosure and site
| Media names and websites where the Company disclose its annual reports | China Securities Journal, Shanghai Securities News, Securities Daily, and STCN |
| Stock exchange websites where the Company disclose its annual reports | www.sse.com.cn |
| Location where the Company stores its annual report | Securities Department |
V. Stock information
| Stock Information | ||||
| Stock type | Stock exchange | Stock name | Stock code | Previous stock name |
| A - share | Shanghai Stock Exchange | 通威股份 | 600438 | |
VI. Other information
| Accountant firm engaged by the Company (domestic) | Name | Sichuan Huaxin (Group) CPA (Special General Partnership) |
| Office address | 28th Floor, Jinmao Lidu South, No. 18, Ximianqiao Street, Chengdu | |
| Signatory accountants | Li Wulin, Tang Fangmo, and Xia Hongbo | |
| Sponsor that performs continuous supervision duties in the reporting period | Name | China Securities Co., Ltd. |
| Office address | Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing | |
| Signatory representatives | Li Puhai and Pu Fei | |
| Period of continuous supervision | Continuous supervision period of non-public offering: from December 10, 2020 to December 31, 2021 |
VII. Major accounting data and financial indicators within the latest three years(I). Major accounting data
Unit: Yuan Currency: CNY
| Major accounting data | 2021 | 2020 | Increase/decrease PoP (%) | 2019 |
| Operating revenue | 63,491,070,520.12 | 44,200,270,334.23 | 43.64 | 37,555,118,255.70 |
| Net profit attributable to shareholders of the listed company | 8,207,920,822.18 | 3,607,923,359.56 | 127.50 | 2,634,568,828.17 |
| Net profit net of non-recurring gain and loss attributable to shareholders of the listed company | 8,486,488,644.67 | 2,408,554,229.37 | 252.35 | 2,314,484,711.22 |
| Net cash flows generated from operating activities | 7,618,273,876.72 | 3,024,927,931.94 | 151.85 | 2,357,465,207.68 |
| 2021 close | 2020 close | Increase/decrease PoP (%) | 2019 close | |
| Net assets attributable to shareholders of the listed company | 37,502,570,958.36 | 30,541,405,029.73 | 22.79 | 17,577,046,993.09 |
| Total assets | 88,249,992,122.16 | 64,251,948,070.91 | 37.35 | 46,820,950,745.60 |
(II). Major financial indicators
Unit: Yuan Currency: CNY
| Major financial indicators | 2021 | 2020 | Increase/decrease PoP (%) | 2019 |
| Basic earnings per share (yuan/share) | 1.8234 | 0.8581 | 112.49 | 0.6786 |
| Diluted earnings per share (yuan/share) | 1.8234 | 0.8466 | 115.38 | 0.6558 |
| Basic earnings per share net of non-recurring gain and loss (yuan/share) | 1.8852 | 0.5729 | 229.06 | 0.5961 |
| Weighted average return on net assets (%) | 24.24 | 16.13 | + 8.11 ppts | 16.14 |
| Weighted average return on net assets excluding of non-recurring gain and loss (%) | 25.07 | 10.77 | + 14.30 ppts | 14.18 |
Note on major accounting data and financial indicators within the latest three years by the end of reportingperiod"□ Applicable" "√ Not applicable"
VIII. Differences between accounting data under domestic and foreign accounting standards(I). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under International AccountingStandard and China Accounting Standard"□ Applicable" "√ Not applicable"
(II). Difference in net profit and net assets attributable to shareholders of the listed companycontained in the financial statements disclosed simultaneously under Foreign AccountingStandard and China Accounting Standard"□ Applicable" "√ Not applicable"
(III). Note on differences between China and foreign accounting standards:
"□ Applicable" "√ Not applicable"
IX. 2021 major financial data by quarters
Unit: Yuan Currency: CNY
| Q1 (Jan - Mar) | Q2 (Apr - Jun) | Q3 (Jul - Sept) | Q4 (Oct - Dec) | |
| Operating revenue | 10,617,725,141.89 | 15,944,454,470.63 | 20,137,556,711.57 | 16,791,334,196.03 |
| Net profit attributable to shareholders of the listed company | 847,369,394.06 | 2,118,360,648.46 | 2,978,968,358.78 | 2,263,222,420.88 |
| Net profit net of non-recurring gain and loss attributable to shareholders of the listed company | 796,171,272.56 | 2,198,386,343.02 | 2,936,172,012.51 | 2,555,759,016.58 |
| Net cash flows generated from operating activities | 1,685,293,387.04 | 1,394,946,325.19 | 481,542,263.35 | 4,056,491,901.14 |
Note on differences between these quarterly data and data contained in disclosed regular reports"□ Applicable" "√ Not applicable"
X. Non-recurring gain and loss items and amounts"√ Applicable" "□ Not applicable"
Unit: 元 Currency: CNY
| Non-recurring gain and loss items | 2021 amount | Notes (if applicable) | 2020 amount | 2019 amount |
| Profit and loss on disposal of non-current assets | -77,844,159.34 | 1,541,869,733.03 | 149,118,467.74 | |
| Government subsidies included in current profit and loss, but excluding ration or quota-based on-gonging government subsidies closely related to the normal operating businesses of the Company, complying with national policies | 345,025,134.17 | 296,657,874.92 | 204,753,562.81 | |
| Profit or loss from debt | -1,162,174.00 |
| restructuring | ||||
| In addition to the effective hedging business related to the normal business operations of the Company, the fair value gain and loss from held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities, as well as investment returns from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities, and other debt investments | 54,403,941.63 | 14,385,110.27 | ||
| Non-operating revenue and expenses other than aforementioned items | -444,426,951.82 | -439,396,332.17 | 29,661,420.53 | |
| Less: Effects of income tax | 163,036,399.95 | 209,491,363.52 | 60,600,017.60 | |
| Effects of minority interest (after tax) | -7,310,612.82 | 4,655,892.34 | 1,687,142.53 | |
| Total | -278,567,822.49 | 1,199,369,130.19 | 320,084,116.95 |
Note on listing the non-recurring gain and loss items mentioned in the Explanatory Announcement onInformation Disclosure for Companies Offering Their Securities to the Public No.1 - Non-Recurring Gainand Loss Items as recurring gain and loss items"□ Applicable" "√ Not applicable"
XI. Items measured at fair value"□ Applicable" "√ Not applicable"
XII. Others"□ Applicable" "√ Not applicable"
Section III. Management Discussion and Analysis
I. Operation discussion and analysis
In 2021, the global economy recovery encountered rounds of the coronavirus pandemic outbreaks.Stimulated by eased money policies and fiscal policies, major economies have rebounded clearly. Withthe demand recovery faster than supply recovery, adequate liquidities and international tensions, the pricesof commodities like energy and raw materials surged due to short supply, which significantly increasedthe global inflation. In China, supported by the robust pandemic control and measures for stabilizing theprices and supplies of commodities, the GDP grew by 8.1% (from the National Bureau of Statistics) andkept its leading position in the world. However, in the context of global supply chain crisis and globalinflation, businesses still experienced unprecedented pressures and challenges in production and operation.
In the reporting period, with firm adherence to the operation policy of “focus, execution andefficiency” as a response to the complicated economic environment, the Company conducted businessesin a stable manner with great performance. In the reporting period, the Company recorded a revenue of
63.491 billion yuan for a year-on-year growth of 43.64%; net profit attributable to shareholders of thelisted company of 8.208 billion yuan for a year-on-year growth of 127.50%; net profit excluding non-
recurring gain and loss attributable to shareholders of the listed company of 8.486 billion yuan for a year-on-year growth of 252.35%.(I) Feed and industry chainBoosted by the accelerated recovery of swine production and the continued growth of aquatic andruminant production, China's feed industry kept a great growth in 2021. According to China Feed IndustryAssociation, the total feed production reached 293,443,000 tons for a year-on-year growth of 16.1%. Byfeed type, the swine feed production was 130,765,000 tons for a year-on-year growth of 46.6%, egg-producing poultry feed production was 32,314,000 tons for a year-on-year growth of -3.6%; meatproducing poultry feed production was 89,096,000 tons for a year-on-year growth of -2.9%, ruminant feedproduction was 14,803,000 tons for a year-on-year growth of 12.2%, and aquatic feed production was22,930,000 tons for a year-on-year growth of 8.0%. With the rise of feed demand, prices of raw materialswere up. In the reporting period, main raw materials for feed production surged due to factors includingdecreased production of major raw materials, pandemic-caused supply chain disruptions and inflations.Specifically, the spot prices of corn and soybean meal increased by 27.2% and 19.5% from the previousyear (Wind). Feed companies experienced increased costs and operation difficulties.Facing increasingly competitive markets and rising prices of raw materials, with the intention of“maximizing the farming benefit to users”, the Company imposed strict measures on product quality tosupply premium products and provide the comprehensive “product + model + service” farming solutionsto farmers, in order to sustain the stable development of its agriculture and husbandry business. In thereporting period, the feed and industry chain business of the Company received a revenue of 22.379 billionyuan for a year-on-year growth of 18.60%, with 5,515,900 tons of feed sold for a year-on-year growth of
5.08%.
In the reporting period, the Company mainly performed the following tasks:
1. Three special programs under the quality first framework
Quality is the foundation and precondition of market share and benefit and the fundamental for abusiness to survive and develop. In 2021, the Company kept exercising the quality policy with a focus onthree tasks: standardization, marketing transformation, and product appeal development.In the reporting period, the Company started field standardization to eliminate gas and fluid leak,regulate VI marks and perform list-base management so that the field management was refreshed andchanged the traditionally perceived feed industry. Its benchmark companies greatly increased theproduction per person and reduced production costs. With great progress in field standardization, theCompany also started standardizing operation activities through measures including control of key energyconsumption indicators, optimization of management procedures, upgrading of equipment and facilities,so that the pilot companies gained higher per capita efficiency, lower variable production costs, and stableproduct quality assured by full process controls.Regarding marketing activities, the Company shifted from the top-down model “company todistributors to farmers” and directly focused on end farmers. To maximize the farming benefit, theCompany used new marketing approaches around product quality like event marketing and base marketing,and boosted the effective combination of high-quality products and end farmers and increased the effectiveimplementation of Company's quality policy in end users, by having its market teams guide customers,technical teams provide deep services and serving the pain points of users, to achieve the win-win effectfor the Company and farmers.
Additionally, the Company continued sending technical teams to end farmers to perform all-aroundproduct tracking from market positioning, processing quality and ultimate effect and to conclude a productappeal report. These teams worked together with market teams so that feedback and corrections were madein a timely manner to ensure the market competitiveness of its products. In 2021, the Company rolled outthe integrated product development (IPD) with a focus on the product appeal expression in end farmers,which greatly enhanced the benefits for farmers and received the high recognition from markets andcustomers. In the reporting period, the Company released a high-end “Kaikoule” feed series for fish fry,which significantly lowered the feed conversion ratio and increased the fry survival rate by over 25 ppts,the best-in-class level, and consistently welcomed by farmers.
2. Moderate expansion for higher market share
While keeping the stable endogenous development, the Company actively looked for externalexpansion opportunities. The Company signed the Strategic Framework Agreement with Tech-Bank Foodin July 2021 based on the division of businesses, complementary development and cooperation, whichindicated that the two reached an agreement on the Company's purchase of all the aquaculture feed assetsand a portion of the swine feed assets from Tech-Bank Food, and on their cooperation on swine feed
supply. As of the end of the reporting period, the share purchase and business integration had completed,and the long-term supply of swine feed was under execution. This acquisition and deep strategiccooperation helped strengthen the Company's professionalism and scale in feed business, increase itsmarket share and secure its market leading position.
3. Industry chain strategy for building a comprehensive competitiveness
While focusing on its feed business, the Company moderately extended its industry chain in order tobuild a comprehensive competitiveness for the agriculture and husbandry business. Adhering to the visionof "For Better Life" the Company strictly followed food safety standards for providing safe, healthy anddelicious aquatic food for consumers. In the reporting period, the Company recorded sales of 1.135 billionyuan for a year-on-year growth of 20% from the processing and circulation of aquatic products. Despiteof the overseas pandemic, the export income from aquatic products grew rapidly by 29%; the quality ofTongwei Fish, a fresh fish brand, was further improved; its farming bases got Organic and ANTIBIOTICFREE certifications. The fish barcode mode helped with the full-cycle tracking from source to dinner table.In terms of fish fry business, the Company exerted R&D efforts to the pain points and difficulties offarmers. In the reporting period, the high synergy of shrimp seed business and feed business contributedto the outstanding prawn farming effect. Prawn seeds recorded great increase in both volume and profit.The giant tiger prawn seeds were highly accepted by farmers for excellent growth indicators and goodfarming benefits, with the sale volume growing by up to 272% and a market share of about 80% in theregion.(II) PV businessThe global PV industry kept its high-speed development in 2021. According to CPIA, the newinstalled capacity over the world was 31% higher than the previous year, reaching the new high of 170GW. China newly installed 54.88 GW which secured its number one place, followed by the US (26.8 GW),EU (25.9 GW) and India (11.89 GW) all of which received rapid year-on-year growths; the growth rateof new installed capacity in India was as high as 218%. Regarding the industry chain, China continued itsleading position in the globe. The outputs of polysilicon, silicon wafers, cells, and modules were 505,000tons, 227 GW, 198 GW and 182 GW, for year-on-year growths of 27.5%, 40.6%, 46.9% and 46.1%.Regarding overseas market, the total export of PV products from China was about 28.43 billion US dollarswith a year-on-year growth of 43.9%; the total export of modules was about 98.5 GW with a year-on-yeargrowth of 25.1%, both the export volume and amount reached new highs. Driven by expected rapid growthof demand, the whole industry chain actively expanded the capacity. Due to high technological barriers,large investments and long construction period, as well as the long-term weakness of prices from 2018 to2020, businesses engaged in upstream silicon material were far less willing to expand than downstreambusinesses, which resulted in the mismatch between upstream and downstream businesses in 2021. Thismismatch and the rising prices of commodities, energy consumption control and pandemic outbreaks ledto high volatility of prices in the industry chain and pressures on businesses.
1. High-purity polysilicon
In the reporting period, the Company still placed work safety and stable operation as the first priority.By implementing the standardized management for work safety, advancing the IT-based safetydevelopment, and highlighting safety management accountability, the Company achieved the “Four Zero”target, i.e., zero work injury, zero accident, zero wrong operation and zero unplanned downtime with theproduction facilities running smoothly throughout the year, and received great rating in the work safetycheck organized by the Ministry of Emergency Management. Also, the Company continued increasedefforts into research and development, improved the delicacy management, optimized technical indicatorsand lowered production costs. In the reporting period, the mono-grade rate of high-purity polysiliconproduced by the Company was over 99%; the mass delivery of N type silicon was realized, and N-typesilicon customers covered mainstream silicon wafer manufacturers. The average comprehensive electricityconsumption and steam consumption per unit were lowered by 12% and 55% from the previous year, withother core indicators optimized to different extents, which helped enhance the Company's corecompetitiveness.
In 2021, affected by the mismatch of the industry chain, high-purity polysilicon products were inshort supply and lead to rising prices, which allowed the great improvement of profitability of high-puritypolysilicon business. In the reporting period, production bases were running at full capacity with allproducts sold for 107,700 tons for a year-on-year growth of 24.30%. Thanks to the correct timing of theearlier capacity development and the efficient operation, as of the end of the reporting period, the Companyhad recovered the investment costs for Yongxiang Polysilicon (old capacity), Leshan Phase I Project andBaotou Phase I Project for a total capacity of 80,000 tons.
In the reporting period, the new Leshan Phase II 50,000 - ton Project and Baoshan Phase I 50,000 -ton Project were put into production, with the quality indicators of the first batches meeting Special Solar-Grade, the leading level in the industry. According to the investment and construction schedule, thecapacity of projects in construction totals 170,000 tons including the Baotou Phase II 50,000 - ton Projectexpected to be in service in 2022 and the Leshan Phase III 120,000 - ton Project expected to be in servicein 2023. By that time, the capacity of the Company would be 350,000 tons. Leshan Phase III is theCompany's first project that can provide over 100,000 tons per year. Lowered investment per unit,optimized processes and higher intelligence of the project will further strengthen the Company's advantagein quality and cost.
2. Solar cells
In the reporting period, short supply of silicon wafers with rising prices pushed the costs ofmanufacturers of solar cells. According to PVInfoLink, the prices of main silicon wafers, i.e., 166 mm,182 mm and 210 mm as of the end of 2021 were increased by 55%, 46% and 46% from the early 2021while the prices of corresponding cells were only increased by 22%, 19% and 16%. This resulted in thesharp decrease in profitability and therefore the capacity utilization. Benefited by the deep strategicpartnerships with upstream and downstream businesses, and its leading advantage in quality and costcontrol, the Company still secured a capacity utilization of 99.47% in the reporting period when thecapacity utilization across the industry was significantly lowered, with its sales growth rapidly, andrecorded a positive profit, which evidenced the Company's strong resistance to risks. Cells and modulessold in 2021 reached 34.93 GW, for a year-on-year growth of 57.61%, the gross margin frommonocrystalline silicon cells was 8.28%, a decrease from the previous year. The Company continued itsglobal number one place in delivery of solar cells in 2021, according to PVInfoLink.
Following the market trends closely, the Company invested into the construction of Meishan PhaseII Project, Jintang Phase I Project and Tonghe Project. The existing capacity for silicon cells of 182 mmand onwards account for over 70%, which can effectively meet the demand for large size products fromdownstream customers. At the same time, with increased efforts into internal and external alignment, theCompany continued lowering its costs with improved quality. Throughout the year, key process indicatorslike grade A ratio, energy conversion efficiency and scrap ratio remained the best-in-class level. Theaverage non-silicon cost for monocrystalline PERC cells was lowered to less than 0.18 yuan/w, a reductionof 11% from the previous year, the non-silicon costs for large-sized products were lowered moresignificantly. Regarding research and development, in addition to optimizing the prevalent PERC celltechniques, the Company attempted to lower the costs and improve the efficiency for the next generationcells from a technological perspective after the mass production was ensured. Apart from the 400 MWHJT trial line invested in 2019, the Company newly constructed a 1 GW HJT pilot line. The R&D andmass production efficiencies for HJT cells have been increased, with the uses of main auxiliary materialsand consumables further lowered, and the development of silver paste alternatives made some progress.What is more, putting efforts for developing the TOPCon technology, the Company took the lead in thepilot run for 210 mm - based TOPCon cells; the 1 GW TOPCon Project has been put into production. Theenergy conversion efficiency of mass production products is leading the industry.
3. PV power generation
In the reporting period, by following the country's green development strategy, the Companycontinued the focus on the development, construction, operation and maintenance of Aquaculture-Photovoltaic Integration projects, based on which, a moderate development of the tertiary sector includingtourism, sightseeing and popular science, to create the organic combination of the first, second and tertiarysectors. This is the Tongwei solution in line with the new fishery, new energy and new village developmentfor effectively increasing the added value of the industry. As of the end of the reporting period, theCompany constructed 48 PV stations with Aquaculture-Photovoltaic Integration as the core, theaccumulated installed capacity connected to the grid was 2.7 GW, and the electricity settlement amountin a year was 3.09 billion kWh. With the on-going upgrading of technologies in the PV industry, theCompany will further improve the economic benefits of the Aquaculture-Photovoltaic Integration modelon the basis of the systematic construction and operation, via the use of high-efficiency modules, flexiblebrackets and automatic construction. By adhering to the scale, cluster and benefit principle, the Companywill advance the implementation of more Aquaculture-Photovoltaic Integration projects for driving thefishery transformation, and producing clean energy, thereby making its own contribution to the greendevelopment of the country while achieving its economic benefits.
II. Industries where the Company operated in the reporting period
(I) Feed industryThe feed industry provides materials for the modern husbandry and relates closely to the safe andstable supply of animal products, being one of the significant pillars of the national economy. Since theReform and Opening up, the feed industry in China has been growing rapidly, with China's feed outputgaining the first place in the world from 2011. This industry has helped with the modern development ofthe husbandry in China, and met the growing demand from Chinese residents for premium proteins fromswine, chickens, ducks and fishes. In 2021, the total feed production in China recorded 293,443,000 tons,the 8.5 times of that in 2000, with a rapid growth. From the perspective of the growth trend, the industryhas come into a mature stage after the high-speed growth. According to the National Bureau of Statistics,the CAGR of feed output in China was 16.6% from 2000 to 2010, and lowered to 5.2% from 2011 to 2021,which indicates that the industry started a stable stage with the growth rate declining clearly.By the target animals, feeds are categorized into swine feed, poultry feed, aquatic feed, and ruminantfeed. Data from the China Feed Industry Association shows that the above feed types accounted for 45%,41%, 8% and 5% of the total feed output in 2021, meaning that livestock and poultry feeds are thedominant forces the entire Chinese feed industry. With a long-term view, the total feed output in Chinakeeps growing without clear cycles. From a short and middle-term perspective, however, different typesof feeds may have cycles due to the farming cycles of animals and the different impacts of diseases anddisasters. Overall, the cyclic changes of livestock and poultry farming show a greater impact on the totalfeed production. For example, the African swine fever virus (ASFV) starting in the second half of 2018had a profound influence on the swine production in China: the swine feed production in 2018 and 2019has lowered by 0.9% and 26.2% year-on-year. Dragged by the swine farming, the total feed productionrecorded a year-on-year growth of only 2.8% in 2018 and of even a drop of 3.7% in 2019.In recent years, the industry has been increasingly mature with heightened homogeneous competition;strong businesses become stronger and weak ones weaker. Large-size feed companies expand their marketpresence and improve their market positions through new constructions and acquisitions by leveragingtheir advantages in funds, costs, technologies, brands, risk controls and other areas. According to ChinaFeed Industry Association, China had 957 feed producers of capacity greater than 100,000 tons in 2021,with an increase of 208 from the previous year; the feed output from these producers reached 177,077,000tons for a year-on-year increase of 24.4%, accounting for 60.3% of the total feed output for a year-on-yeargrowth of 7.5 ppts. In the same year, China had 39 feed groups of capacity greater than 1 million tons,with an increase of 6 from the previous year; and 6 feed groups of capacity greater than 10 million tonswith an increase of 3 from the previous year.
Chinese feed industry is subject to increased and stricter regulations in quality and environmentalproduction, evidenced by the amendments of laws and regulations including the Regulation on theAdministration of Feeds and Feed Additives, and the Environmental Protection Law of the People'sRepublic of China as well as the releases of sector policies like Notice on the 13th Five Year Plan for theNational Feed Industry Development, National Strategic Plan for Agricultural Revitalization throughQuality Enhancement (2018-2022) and No.194 Announcement of the Ministry of Agriculture and RuralAffairs. This pushes the industry to be more procedure-based, standard and green for the transition fromquantity-focused to quality-focused development. In addition, the husbandry industry has started themodern journey for factory-based development with economies of scale and lower environmental impact,which raise higher requirements for feed companies in capabilities of technological development, bio-safety and quality control. In this context, large feed companies with stronger technological capabilities,better regional presences and standardized processes secure clear advantages while SMEs will be underlong-term pressure due to their lack of market competitiveness and weak expansion ability.
(II) PV industry
As one of the strategic emerging industries in China, PV is also an important guard for the country’senergy security and sustainability. In early 2000, pulled by the rapid growth of overseas demand forrenewable energy sources, China's PV industry started from scratch and experienced speedy growth, butstill challenged by the external pressures because of top technologies, advanced equipment, raw materialsand markets are not from China. Since the 18th CPC National Congress, China has clarified the all-aroundeffort to reform the energy consumption, building a clean and diversified energy supply system, leveragingthe role of Innovation as the primary driver of development, deeper reform of the energy system in allareas, and strengthening international energy cooperation across the board with a new energy securitystrategy featuring Four Reforms and One Cooperation, which points out the direction for the quality
growth of the energy industry in the new era. Boosted by Several Opinions on Promoting the HealthyDevelopment of the PV Industry released by the State Council in 2013 and a raft of supporting policies,the PV industry in China has gradually stepped on the quality-based development path. First, the scales ofstages of the industry chain have been increasing with on-going technological upgrading for gradualindependent from overseas technologies, equipment and raw materials, which has created a PVmanufacturing chain with all-around competitiveness. Second, the continuous progress in technologiescoupled with scale effect and supply chain competition have been driving the on-going cost reduction inthe PV industry; with the rising economic efficiency of the PV power generation is on the rise and the gridparity available in most countries and regions, the Chinese PV industry has been getting rid of the subsidiesfor self-driven growth. Third, the rapid expansion has made Chinese PV market a core driver for globalPV installation investments, and greatly improved the country's energy structure. According to theNational Energy Administration, the new installed PV capacity increased from 12.92 GW in 2013 to 54.88GW in 2021 for a CAGR of 20%; China has secured the top one in the world for seven consecutive yearsin terms of the cumulative installed capacity. In the same period, the ratio of new installed PV capacity tothe total new installed capacity was increased from 12% to 31%.The costs of PV generation are low enough for grid parity in most countries and regions, even lowerthan the costs of fuel-fired generation, which means that PV generation is highly potential in economicefficiency and market space and the influence of a single country and/or region on the industrydevelopment has been hugely reduced. But given that China has the largest PV industry in the world withmore than half number of its modules exported, the combination of different policies, financialenvironments, political policies, trade frictions and repeated pandemic outbreaks may impact the industry'sgrowth from time to time.
Most countries and regions across the world have started actions for energy saving and emissionreduction by putting enormous efforts into energy consumption transformation to actively address theclimate governance for sustainable development. By now, 177 countries including Germany, the US, theUK, Japan and South Korea have announced or are discussing their net zero emission goals with plans fordevelopment of renewable energies represented by PV generation. China has made a firm commitmentthat the country strives to reach carbon peak by 2030 and carbon neutral by 2060 in the 75th session ofthe UN General Assembly on September 22, 2020. Around the dual carbon goal, the State Council releasedthe Action Plan for Carbon Dioxide Peaking Before 2030 in 2021 and started accelerating work on 1+Npolicies for peaking carbon emissions and achieving carbon neutrality. According to the Action Plan,China will spur large-scale, high-quality development of wind and solar power generation across the board,continue to promote both concentrated and distributed systems, and accelerate the construction of windand solar farms; by 2030, total installed generation capacity of wind and solar power will reach above 1.2billion KW. The global green transformation has entered a new stage. As the leading actor amongrenewable energies, PV generation will embrace a huge market space. Driven by the expectation of high-speed demand growth, companies in and out of the industry have announced relevant plans to investmentand increase capacities, which has given rise to a new round of capacity expansion of the PV industry. Itis expected that by the end of 2022, the global capacities of silicon materials, silicon wafers, cells andmodules will reach 1,190,000 tons, 477 GW, 560 GW and 580 GW respectively according to PVInfoLink.Also, novel cell technologies that have the potential to further improve the quality and efficiency of PVgeneration are in development. PV companies have made investments into new cell technologies includingTOPCon and HJT, expecting a new wave of development dividend brought by the technological upgrading.
III. Businesses of the Company in the reporting period
Adhering to the vision of "For Better Life" and the corporate purpose of "Striving for Excellence,Contributing to Society", the Company mainly focuses on agriculture and new energy, thus forming abusiness model of "Agriculture (fishery) + PV" integration and synergy. Its main businesses and theirpositions in the industrial chain are shown in the figure below:
Note: Core businesses of the Company are in the dashed boxes
(I) Main businesses and the operation modelsIn agriculture, the major business is the research and development, production and sales of aquaticfeed, livestock feed and other products to meet the needs of aquatic animals and livestock for growth.Aquatic feed has always been the core product and the main profit source of the Company in agricultureand animal husbandry business. As of the end of the reporting period, the Company owned more than 80subsidiaries and branches involved in feed business with a business model of adopting on-site productionand establishing a peripheral sales coverage, while providing effective technical, financial and othersupporting services to farmers. Around the feed business, the Company was actively engaged in seedbreeding, husbandry, animal healthcare, food processing and trade which further enriched the productsand enhance its comprehensive strength.
In new energy, the Company focuses on the research, production, and sales of high-purity polysiliconand solar cells. As of the end of the reporting period, the Company had an annual capacity of 180,000 tonsfor high-purity polysilicon, and an annual capacity of 45 GW for solar cells. The Company hasmanufacturing sites in Leshan, Baotou and Baoshan for producing high-purity polysilicon products withlocally sourced raw materials which are delivered to downstream manufacturers of silicon wafers. Inrecent years, the Company has signed long-term sale contracts with these silicon wafer manufacturerswhere a fixed quantity of silicon materials will be delivered at the market price, an approach that for long-term stable sales. Regarding solar cells, the manufacturing sites in Shuangliu, Jintang, Meishan and Hefeihave their production plans arranged directly according to the market demand with the products directlysold to the downstream manufacturers of modules. Leading technologies, quality and cost control haveallowed the Company to serve top ten PV module manufacturers across the world and secure a long-termleading position in the industry.On the comprehensive application, the Company focuses on the development and construction oflarge-scale "Aquaculture-Photovoltaic Integration" bases, strives to create a model of ecological farmingcoupled with green energy and strengthens the coordinated development of industries. By screening high-quality water surfaces and for ensuring electricity consumption, the Company explores novel aquacultureways with on-going advancements of the Aquaculture-Photovoltaic Integration bases in terms of scale,professionalism and intelligence, which are expected to bring new profit sources for the Company, farmersand other partners.(II) Market positioningIn terms of agriculture and husbandry, the Company focuses on the scale-based professionaldevelopment of the feed business, with an annual feed capacity of over 10 million tons, and its productionand sales network covering much of China and Southeast Asian countries such as Vietnam, Bangladesh,and Indonesia. These make it a leading aquatic feed producer and an important livestock feed producer in
Agricultural chainAquatichusbandry
AquatichusbandryAquaculture-Photovoltaic
Integration
Aquaculture-Photovoltaic
IntegrationPV powergeneration
PV powergeneration
Aquatic processing
| Aquatic husbandry | Aquatic processing |
Aquatic feed
Aquatic feedLivestock feed
Livestock feedAquatic seedlings
Aquatic seedlingsLivestock babies
| Livestock babies | Livestock husbandry | Livestock processing |
PV chain
PV chain
Polysilicon
| Polysilicon | ||
| Multicrystalline silicon ingots |
Monocrystalline
silicon rods
| Monocrystalline silicon rods | Monocrystalline silicon wafer | ||
Multicrystalline
silicon wafer
Multicrystalline
silicon wafer
Monocrystallinecell
MonocrystallinecellMulticrystalline
cell
Multicrystalline
cellMonocrystalline
module
Monocrystalline
moduleMulticrystalline
module
Multicrystalline
module
PVpowerplant
the world. The Company has been holding a leading position in the sale volume of aquatic feed, i.e., itscore product. As a Key Leader in Agricultural Commercialization and a National DemonstrationEnterprise for Technological Innovations, the Company has a National Enterprise Technology Center andreceived honors like the Second Prize of National Science and Technology Progress Award, China Well-Known Trade Mark and China Quality Award Nomination Prize. With high-quality products and efficientservices, the Company is well recognized in the industry.
In terms of PV business, the Company is an important participant and driver of the global PV industryfor its advantages in scale, technologies, costs and quality. In 2021, the Company was global number onein terms of high-purity polysilicon production, had a domestic market share of nearly 22% (CPIA), andreached the fifth consecutive year for its largest quantity of cell delivery in the world (PVInfoLink). Giventhe promising outlook of the PV industry, the Company announced its 2020-2023 Development Plan forHigh-purity Polysilicon and Solar Cell Businesses for further strengthening its market position. With thecurrent investment schedule into account, it is expected that the Company's annual capacity will reach350,000 tons for high-purity polysilicon and 80 - 100 GW for solar cells in 2023.
IV. Analysis of the core competitiveness in the reporting period"√ Applicable""□ Not applicable"
(I) Clear strategic planning and positioning
The Company focuses on technological innovation and intelligent manufacturing in the main stagesof PV industry, advances the large-scale application of clean energy with zero emission, is committed tocreating a green healthy aquatic industrial chain to meet consumer demand for safe food, and makes everyeffort to provide the public with high-quality products in all industries closely related to human life andcontinuously improve the quality of human life.
Based on the above strategic positioning, the long-term development goal of the Company is "aworld-class safe food supplier and a world-class clean energy operator", and the short and medium-termdevelopment plan is "to build and consolidate the leading position of global high-purity polysilicon, solarcells and aquatic feed."
(II) Leading capabilities of technology research and development
Regarding science and technology as the primary productive force, the Company attaches greatimportance to technology research and development. For each business, it has built a R&D team led bysubject matter experts and supported by increased investments, with plenty of achievements applied in themarket. This has helped the Company gained a differentiated advantage for additional value.
1. Agriculture and animal husbandry
The Company has a National Enterprise Technology Center approved by five ministries andcommissions including the National Development and Reform Commission and the Ministry of Scienceand Technology. After years of development and operation, the Center has established a completeorganizational structure and operating mechanism for technological research and innovation, withspecialization in animal nutrition and feed, animal breeding and cultivation, animal health care, automatedfarming facility project, aquatic and livestock product processing, and other research and technologyintegration related to biotechnology. By transforming innovative research results into actual productivity,the Center provides a critical support for the Company's development. The aquatic product researchinstitute, special aquatic product research institute, livestock and poultry research institute, animal healthcare research institute, facility fishery engineering research institute, aquatic engineering center and testingcenter under the Center provide effective guide on innovations with clear goals and detailed tasks andensure the innovation results. The Center was again rated “outstanding” among over 1,700 NationalEnterprise Technology Centers in the annual assessment, as described in the Notice on 2021 Result ofAnnual Assessment of National Enterprise Technology Centers issued by the General Office of theNational Development and Reform Commission.
In the reporting period, the Center implemented the Company's policy for development of a three-level R&D system consisting of forward-looking research, fundamental research and applied research.Regarding forward-looking research, it focused on the research of production and application of single-cell proteins used as raw proteins for fish feed, such as promoting the industrialization of bacteria-basedsingle cell proteins, and studying the integration of feed-grade Spirulina and solar energy. Regardingapplied research, considering the operation needs, the Center applied research achievements intodevelopment of new products, such as the freshwater high-end Kaikoule feed for fish fry, and YukangNo.1 feed for better immunology, and special Yudongjian feed for winter feeding, and developed the
unattended and intelligent workshop for prawn farming and circulation water processing system designedfor intelligent monitoring of water quality, precise feeding and efficient control and prevention of diseases.As of the end of the reporting period, 840 new patent applications were submitted with 616 patentsauthorized.In 2021, the Company set up the Working Group on Feed Test Standardization as authorized by theTC76, which is responsible for the development of test standards for nutrients and non-nutrients,prohibited additives, feed efficacy and safety assessment relating to feed industry. In the reporting period,the Company participated in the revision of Feed Materials: Fish Meal (GB/T 19164－2021) which hasbeen released and implemented, the development and revision of Formula Feed for Crayfish(Procambarus Clarkii) and Formula Feed for Blunt Snout Bream (Megalobrama Amblycephala), twoindustrial standards to be issued, and received the task for revising ten national standards. Also, theGeneral Technical Specification for Construction of Aquaculture-Photovoltaic Integration System, aproject started by the China Fisheries Association and led by the Company has been issued forimplementation.Over the years, the Company has established a young, high-quality R&D team, which continuouslyconsolidates the Company's R&D capabilities and improves its product competitiveness under theleadership of the experts with special government allowances from the State Council.
2. PV
To strengthen its independence in R&D and catch development opportunities in core technologies,products and applications, enhance its core competitiveness, the Company has formed a PV TechnologyCenter based on the original scientific research system for the PV business, and set up a scientific researchand technical team mainly composed of well-known experts in the industry for advancing the developmentand integration of technologies across different stages of the PV industry chain in a coordinated manner.In 2021, the PV Technology Center was mainly tasked with the cross-business link and integration in theintroduction of new technologies and new products (such as TOPCON, HJT), with increased efforts intothe university-industry cooperation with domestic and foreign universities, research institutes and otherscientific research institutions, and strengthened the follow-up, research and development of cross-generation technology and cutting-edge technology (including HBC, perovskite, laminated cell/module,PV + storage) in the industry.In terms of high-purity polysilicon, after years of development, the Company has made a number ofachievements with independent intellectual property rights in the core technology fields such as coldhydrogenation, large-scale energy-saving rectification, high-efficiency reduction, tail gas recovery,trichlorosilane synthesis and anti-disproportionation, making it at the leading position in the industry. Inthe reporting period, the mono-grade rate of high-purity polysilicon produced by the Company was over99%; the mass delivery of N type silicon was realized. As of the end of the reporting period, 493 newpatent applications were submitted by Yongxiang with 342 patents authorized.In terms of solar cells, the Company has gained a number of technological achievements withindependent intellectual property rights in the core technology fields such as atomic layer deposition backpassivation, selective emitter technology, double-sided cells, multi-grid, TOPCon cells, and HJT cells. Onthe one hand, the Company focuses on the current mainstream PERC technology, by improving andoptimizing the technology through the applications of other process technologies (such as multi-grid, high-resistance dense grid, and alkali polishing) to improve the energy conversion efficiency and reduceproduction cost. On the other hand, the Company continues to increase the investment in tracking anddeveloping new cell technologies. The energy conversion efficiencies of its HJT and TOPCon cells inmass production are high-ranking in the industry.(III) Scale and cost advantage
1. Agriculture and animal husbandry
The Company is a national key leading enterprise in agricultural industrialization, with presenceacross China and Southeast Asia, and annual feed capacity of more than 10 million tons, which makes ita leading aquatic feed producer and an important livestock feed manufacturer in the world. It has intensiveadvantages in raw material purchasing, production organization and market expansion.
2. PV
The Company has an annual capacity of 180,000 tons for high-purity polysilicon and of over 170,000tons in construction, with all consumptions and costs declining. With the on-going improvements oftechnological processes and the expansion of capacity, the Company will have its costs further optimizedafter the projects in construction are put into service.
Regarding solar cells, at the end of the reporting period, the Company had an annual capacity of 45GW and the non-silicon cost of monocrystalline PERC cells was below 0.18 yuan/w. With the new projectsfor larger size products in service, the scale effect will be greater, leading to higher cost advantage.(IV) Quality and brand advantages
1. Agriculture and animal husbandry
Since its inception in 1992, the Company has developed a series of formula feeds that can meet theneeds of various aquatic animals through continuous R&D and improvement. After years of tests in themarket, the feed quality and market services of the Company have been highly recognized by farmers,which has created 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", and establishedaquatic and livestock food processing bases in Sichuan and Hainan for processing food in strict accordancewith the requirements of the HACCP quality management system. As a result, the full-cycle qualitymonitoring from source to dinner table has been realized, which has effectively enhanced the value andcompetitiveness of the industrial chain.
2. PV
Relying on the Sichuan Polysilicon Engineering Technology Research Center, the Company hasexplored the automatic reduction process, multiphase flow technology, cascade utilization of reductionheat, technology for removal of boron/phosphorus/carbon and other impurities to continuously improvethe quality of high-purity polysilicon, reduce emission and increase energy efficiency, and keep its leadingposition in relevant technologies. In 2021, the high-purity polysilicon business of the Company created abranch for the National Enterprise Technology Center upon approval, and received national and provincialhonors including National Green Factory, National Premium Engineering Award, Chinese OutstandingPatent Award, Sichuan Second Prize of Science and Technology Progress Award and Sichuan QualityBenchmarking Award, which fully present the brand value and awareness of the Company.
The Company is high-ranking in the industry regarding solar cell indicators like energy conversionefficiency, first pass yield, scrap rate and CTM value, with its quality widely accepted by customers andprofessional certifications at home and abroad. The Company has received the Excellent Quality Awardfrom LONGi, Excellent Quality Supplier from Jinko Solar., Best Quality Supplier from GCL SystemIntegration Technology, Excellent Supplier and Quality Inspection-Exempt Supplier from Canadian Solar,Excellent Supplier from Trina Solar and Strategic Supplier from Risen New Energy. In 2021, the Companywon national, provincial and industrial awards including the National High-tech Enterprise, High-techEnterprise Certificate, Anhui Enterprise Technology Center, Anhui Top 100 Manufacturers, Anhui DigitalWorkshop, Sichuan Science and Technology Progress Award, and Hefei Top 30 Manufacturers.
(V) Unique Aquaculture-Photovoltaic Integration model
Supported by the unique advantage of resource integration at the end customers, the Company hascreated an innovative development model where solar electricity is generated above the water and fishfarmed under the water, which allows the green combination of intelligent fishery and clean energygeneration. In terms of fishery, the Company guides the intensive, intelligent and efficient developmentof aquaculture through effective water surface modification, rational application of fishery facilities, andoptimization and innovation of aquaculture models. In terms of PV power generation, the Companyadheres to the cost strategic planning, and continuously reduces the installed cost of PV systems throughdesign optimization and technological innovation.
The Aquaculture-Photovoltaic Integration development model can promote the coordinateddevelopment of primary, secondary and tertiary sectors, integrate and create a modern industrial parkintegrating new fishery, new energy, and new rural area, advance industrial transformation and upgrading,and provide an effective way for the construction of new rural areas, which has helped form a uniquecompetitive model for the Company.
(VI) Corporate culture
An effective culture is an important support for the cohesion and creativity of the Company, and animportant part of the core competitiveness of the Company. The Company has a powerful culture whereStriving for Excellence Contributing to Society is the purpose; For Better Life the vision, which indicatesthe value and goals of the Company; Honesty, Trust, Fairness and Excellence 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 Determines the important managementprinciple of the Company, that is, efficiency determines profit, detail determines success, speed determineslife and death; Work hard; Work with intelligence; Work with the spirit of seizing the day the code ofconduct for employees. After years of development, the spirit advocated by the culture, closely integrated
with our business targets and daily work, guides the benchmarking of all businesses, branches andsubsidiaries, continuously and deeply advances the fine-tuning of management and constantly boosts thehigh-quality development of various business activities.
V. Main operating activities in the reporting periodRefer to the Section Operation Discussion and Analysis for details.
(I). Analysis of main businesses
1. Analysis of changes in related items of the income statement and cash flow statement
Unit: Yuan Currency: CNY
| GL Account | Current amount | Prior amount | Change (%) |
| Operating revenue | 63,491,070,520.12 | 44,200,270,334.23 | 43.64 |
| Operating cost | 45,918,101,338.17 | 36,648,405,064.38 | 25.29 |
| Sales expense | 918,970,450.73 | 778,030,640.18 | 18.11 |
| Management expense | 2,947,649,906.71 | 1,808,578,103.39 | 62.98 |
| Financial expense | 637,160,688.38 | 676,326,528.79 | -5.79 |
| R&D expenses | 2,035,847,045.43 | 1,035,331,434.68 | 96.64 |
| Net cash flows generated from operating activities | 7,618,273,876.72 | 3,024,927,931.94 | 151.85 |
| Net cash flow generated from investing activities | -13,591,029,353.32 | -4,740,250,322.93 | -186.72 |
| Net cash flow generated from financing activities | 2,901,644,427.08 | 5,795,372,325.96 | -49.93 |
Note on the reasons for operating revenue change: mainly attributed to the expansion of PV operation sizeand rise of product prices.Note on the reasons for operating cost change: mainly attributed to the expansion of PV operation size andrise of raw material costs.Note on the reasons for change in sales expense: mainly attributed to the business expansion and increasein the advertising and marketing expense.Note on the reasons for change in management expense: mainly attributed to increase in employee payrolls.Note on the reasons for change in financial expense: mainly attributed to the interest increase caused bythe private placement performed by the Company.Note on the reasons for change in R&D expenses: mainly attributed to the preparation for new projectswith increased R&D investments into silicon materials and solar cells.Note on the reasons for change in net cash flows generated from operating activities: mainly attributed tothe expanded operating size and improved profitability.Note on the reasons for change in net cash flows generated from investing activities: mainly attributed tothe increase investments into PV business.Note on the reasons for change in net cash flows generated from financing activities: mainly attributed tothe funds raised by private placement in the previous year.Detailed note on any significant change in the business type, profit structure or profit source of theCompany"□ Applicable" "√ Not applicable"
2. Revenue and cost analysis
"□ Applicable" "√ Not applicable"
(1). Main businesses by industry, product, region and sale model
Unit: Yuan Currency: CNY
| Main businesses by industry | ||||||
| Industry | Operating revenue | Operating cost | Gross profit margin (%) | YoY change of operating revenue (%) | YoY change of operating cost (%) | YoY change of gross profit margin (%) |
| Agriculture and animal husbandry | 24,590,256,728.92 | 22,258,698,101.39 | 9.48 | 17.46 | 19.03 | - 1.2 ppts |
| PV | 38,184,020,831.78 | 22,984,446,347.90 | 39.81 | 69.69 | 32.98 | + 16.62 ppts |
| Offset from consolidation | -3,308,475.76 | |||||
| Total | 62,770,969,084.94 | 45,243,144,449.29 | 27.92 | 44.52 | 25.74 | + 10.77 ppts |
| Main businesses by product | ||||||
| Product | Operating revenue | Operating cost | Gross profit margin (%) | YoY change of operating revenue (%) | YoY change of operating cost (%) | YoY change of gross profit margin (%) |
| Feed, food and relevant activities | 24,590,256,728.92 | 22,258,698,101.39 | 9.48 | 17.46 | 19.03 | - 1.2 ppts |
| Solar cells, modules and relevant activities | 24,934,677,377.18 | 22,738,716,766.81 | 8.81 | 60.87 | 71.66 | - 5.73 ppts |
| High-purity polysilicon and chemical engineering | 18,760,753,572.81 | 6,249,238,622.80 | 66.69 | 186.89 | 46.34 | + 31.99 ppts |
| PV power | 1,602,572,317.70 | 595,820,555.39 | 62.82 | 36.85 | 26.05 | + 3.18 ppts |
| Offset for internal transactions in the PV business | -7,113,982,435.91 | -6,599,329,597.10 | ||||
| Offset from consolidation | -3,308,475.76 | |||||
| Total | 62,770,969,084.94 | 45,243,144,449.29 | 27.92 | 44.52 | 25.74 | + 10.77 ppts |
| Main businesses by region | ||||||
| Region | Operating revenue | Operating cost | Gross profit margin (%) | YoY change of operating revenue (%) | YoY change of operating cost (%) | YoY change of gross profit margin (%) |
| East China | 23,200,958,755.41 | 19,933,517,798.49 | 14.08 | 55.66 | 59.74 | - 2.19 ppts |
| South China | 8,140,607,000.57 | 7,374,491,656.45 | 9.41 | 15.34 | 18.40 | - 2.34 ppts |
| West China | 25,719,026,992.30 | 15,858,381,212.62 | 38.34 | 121.25 | 66.77 | + 20.14 ppts |
| North China | 10,555,878,160.30 | 6,935,607,964.24 | 34.30 | 81.68 | 47.46 | + 15.25 ppts |
| Middle China | 5,618,189,936.60 | 5,304,592,406.78 | 5.58 | 58.55 | 59.81 | - 0.74 ppts |
| Overseas | 7,988,788,037.26 | 7,350,095,911.20 | 7.99 | 43.69 | 55.17 | - 6.81 ppts |
| Total | 81,223,448,882.44 | 62,756,686,949.78 | 22.74 | 67.47 | 53.15 | + 7.22 ppts |
| Internal offsets | -18,452,479,797.50 | -17,513,542,500.49 | ||||
| Total after offset | 62,770,969,084.94 | 45,243,144,449.29 | 27.92 | 44.52 | 25.74 | + 10.77 ppts |
| Main businesses by sale model | ||||||
| Sale model | Operating revenue | Operating cost | Gross profit margin (%) | YoY change of operating revenue (%) | YoY change of operating cost (%) | YoY change of gross profit margin (%) |
| Direct sale | 47,083,684,450.80 | 30,903,915,101.22 | 34.36 | 62.84 | 34.25 | + 13.98 ppts |
| Franchised dealership | 15,687,284,634.14 | 14,339,229,348.07 | 8.59 | 8.04 | 10.63 | - 2.14 ppts |
Note on main businesses by industry, product, region and sale model:
None.
(2). Production and sale analysis
"√ Applicable" "□ Not applicable"
| Main products | Unit | Production | Sale | Inventory | YoY change of production (%) | YoY change of sale (%) | YoY change of inventory (%) |
| Feed | 10,000 tons | 537.69 | 551.59 | 10.48 | 2.41 | 5.08 | 34.70 |
| High-purity polysilicon | Ton | 109,340.50 | 107,700.32 | 2,012.38 | 26.85 | 24.30 | 299.12 |
| Solar cells and modules | MW | 35,450.57 | 34,931.58 | 1,185.78 | 56.91 | 57.61 | 63.17 |
| PV generation | 10,000 kWh | 317,664.71 | 308,982.99 | / | 42.60 | 42.72 |
Note on production and sale:
The production and sale data contain these caused by the trial production; capacity refers to the capacity in mass production (excluding trial production), therefore,capacity utilization = production in mass production / capacity in mass production.
(3). Fulfillment of major purchase contracts and sales contracts
"√ Applicable" "□ Not applicable"
Fulfillment of major existing sales contracts as of the end of the reporting period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Subject matter | Counterparty | Total amount | Amount fulfilled | Amount fulfilled in the reporting period | Amount to be fulfilled | Fulfillment or not | Note on non-fulfillment |
| Polysilicon | Jinko Solar, Sichuan Jinko | / | 3,483,111,758.89 | 3,306,479,678.89 | / | Yes | |
| Polysilicon | Trina Solar | / | 1,416,173,880.00 | 1,416,173,880.00 | / | Yes | |
| Polysilicon | Metco Silicon Energy | / | 1,780,033,717.38 | 1,780,033,717.38 | / | Yes | |
| Polysilicon | Zhonghuan Semiconductor | / | 2,593,519,170.00 | 1,459,207,680.00 | / | Yes |
Note: quantities are agreed in the above major sales contracts where prices are determined according to the market prices.
Fulfillment of major existing purchase contracts as of the end of the reporting period"□ Applicable" "√ Not applicable"
(4). Cost analysis
Unit: Yuan
| Cost by industry | |||||||
| Industry | Cost item | Current amount | Current amount to total cost (%) | Prior amount | Prior amount to total cost (%) | YoY amount change (%) | Notes |
| Agriculture and animal husbandry | Raw materials | 20,912,211,007.71 | 93.95 | 17,512,872,870.27 | 93.65 | 19.41 | |
| Agriculture and animal husbandry | Labor cost | 367,104,377.22 | 1.65 | 335,736,535.67 | 1.80 | 9.34 | |
| Agriculture and animal husbandry | Manufacturing expense | 979,382,716.46 | 4.40 | 851,332,237.58 | 4.55 | 15.04 | |
| PV | Raw materials | 17,056,289,488.92 | 74.21 | 12,463,938,323.90 | 72.11 | 36.85 | |
| PV | Labor cost | 806,471,779.10 | 3.51 | 649,514,991.13 | 3.76 | 24.17 | |
| PV | Manufacturing expense | 5,121,685,079.88 | 22.28 | 4,171,222,480.84 | 24.13 | 22.79 | |
| Cost by product | |||||||
| Product | Cost item | Current amount | Current amount to total cost (%) | Prior amount | Prior amount to total cost (%) | YoY amount change (%) | Notes |
| Feed, food and relevant activities | Raw materials | 20,912,211,007.71 | 93.95 | 17,512,872,870.27 | 93.65 | 19.41 | |
| Feed, food and relevant activities | Labor cost | 367,104,377.22 | 1.65 | 335,736,535.67 | 1.80 | 9.34 | |
| Feed, food and relevant activities | Manufacturing expense | 979,382,716.46 | 4.40 | 851,332,237.58 | 4.55 | 15.04 | |
| High-purity polysilicon and chemical engineering | Raw materials | 3,072,125,706.97 | 49.16 | 1,601,517,823.84 | 37.50 | 91.83 | |
| High-purity polysilicon and chemical engineering | Labor cost | 265,592,641.47 | 4.25 | 188,287,616.75 | 4.41 | 41.06 | |
| High-purity polysilicon and chemical engineering | Manufacturing expense | 2,911,520,274.36 | 46.59 | 2,480,663,134.48 | 58.09 | 17.37 | |
| Solar cells, modules and relevant activities | Raw materials | 20,517,743,788.12 | 90.23 | 11,466,767,788.76 | 86.57 | 78.93 | |
| Solar cells, modules and relevant activities | Labor cost | 540,879,137.63 | 2.38 | 487,871,096.69 | 3.68 | 10.87 | |
| Solar cells, modules and relevant activities | Manufacturing expense | 1,680,093,841.06 | 7.39 | 1,291,756,441.16 | 9.75 | 30.06 | |
| PV power | Manufacturing expense | 595,820,555.39 | 100.00 | 472,672,272.89 | 100.00 | 26.05 | |
(5). Changes in the scope of consolidation due to shareholding changes of main subsidiaries in thereporting period"□ Applicable" "√ Not applicable"
(6). Significant changes or adjustments in businesses, products or services of the Company in thereporting period"□ Applicable" "√ Not applicable"
(7). Major customers and suppliers
A. Main customersThe sales amount from top five customers was 17,106,906,100 yuan, accounting for 26.94% of the totalsale amount; the sales amount from related parties (in the sales amount from top five customers) was 0,accounting for 0 % of the total sale amount.
The sale amount from a single customer was over 50% of the total sale amount and/or the top fivecustomers include new customers or the Company was heavily dependent on a small number of customers"□ Applicable" "√ Not applicable"
B. Major suppliersThe purchase amount to top five suppliers was 12,233,825,600 yuan, accounting for 39.53% of the totalpurchase amount; the purchase amount to related parties (in the purchase amount to top five suppliers)was 0, accounting for 0% of the total purchase amount. (The purchase amount excludes tax)
The purchase amount to a single supplier was over 50% of the total purchase amount and/or the top fivesuppliers include new suppliers or the Company was heavily dependent on a small number of suppliers"□ Applicable" "√ Not applicable"
3. Expenses
"□ Applicable" "√ Not applicable"
4. R&D cost
(1).R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan
| R&D cost expensed in current period | 2,035,847,045.43 |
| R&D cost capitalized in current period | 0 |
| Total R&D cost | 2,035,847,045.43 |
| Total R&D cost to operating revenue (%) | 3.21 |
| Percent of capitalized R&D cost (%) | 0 |
(2).R&D personnel
"√ Applicable" "□ Not applicable"
| Number of R&D employees | 3,335 |
| R&D employees to total employees (%) | 10.35% |
| Education background of R&D employees | |
| Education background | Number of employees |
| Doctor degree | 21 |
| Master degree | 287 |
| Bachelor degree | 2,011 |
| Three-year college | 760 |
| High school or lower | 256 |
| Age groups of R&D employees | |
| Age group | Number of employees |
| Less than 30 years | 1,530 |
| 30 - 40 years | 1,317 |
| 40 - 50 years | 341 |
| 50 - 60 years | 138 |
| 60 years or older | 9 |
(3).Note
"√ Applicable""□ Not applicable"Under the principle that science and technology constitute the foremost productive forces, theCompany attaches great importance to technology research and development. For each business, it hasbuilt a R&D team led by subject matter experts and supported by increased investments, with plenty ofachievements applied in the market. This ensures the healthy development of the Company. The Companyhas 3,335 R&D employees, or 10.35% of its total employees. Specifically, these holding bachelor or higherdegrees account for 69.54% of the R&D employees; 54.12% of the R&D employees are 30 years or older.
45.88% of the R&D employees are under 30 years.
(4).Reasons for material change in R&D personnel structure and its impact on the Company'sfuture development"√ Applicable" "□ Not applicable"
As the end of the reporting period, the Company newly hired 757 R&D employees. This was mainlydue to the formation of PV Technology Center and increased investments into PV technologies in thereporting period. The Company purchased the aquatic feed business and a part of the swine feed businessfrom TECH-BANK in the reporting period also led to an increase in the R&D employees.The increase in R&D personnel not only helps with the efficient use of the Company's R&D resources,but also further boost its R&D capability and level for improving its sustainability.
5. Cash flow
"√ Applicable" "□ Not applicable"Refer to the analysis of changes in related items of the income statement and cash flow statement in thisSection
(II). Note on material change in profit caused by non-main operating activities"□ Applicable" "√ Not applicable"
(III). Analysis of assets and liabilities"√Applicable" "□Not applicable"
1.Assets and liabilities
Unit: Yuan
| Item name | Opening balance of current period | Opening balance to the total assets (%) | Closing balance of last period | Closing balance to the total assets (%) | YoY balance (%) | Notes |
| Cash at bank and on hand | 3,001,930,882.38 | 3.40 | 6,264,168,242.03 | 9.75 | -52.08 | Due to fund-raising for investments into project constructions |
| Held-for-trading financial assets | 10,617,668.58 | 0.01 | 1,531,863,068.12 | 2.38 | -99.31 | Due to redemption of wealth management products |
| Notes receivable | 1,576,925,682.02 | 1.79 | 530,962,356.27 | 0.83 | 196.99 | Due to expansion of overseas business and increase in the L/Cs |
| Accounts receivable | 2,915,527,149.08 | 3.30 | 1,069,352,776.17 | 1.66 | 172.64 | Due to the cooperation with TECH-BANK, the grant of a certain receivables collection period, and the increase in PV power subsidies receivables |
| Prepayments | 1,606,545,040.83 | 1.82 | 1,113,458,878.37 | 1.73 | 44.28 | Due to business expansion and prerepayment increase |
| Inventories | 5,682,791,568.04 | 6.44 | 2,773,077,527.98 | 4.32 | 104.93 | Due to business expansion and rise of raw material costs |
| Other current assets | 1,220,643,137.83 | 1.38 | 810,572,652.99 | 1.26 | 50.59 | Due to the increase in VAT credit refund |
| Construction in progress | 10,636,400,885.06 | 12.05 | 2,997,901,620.59 | 4.67 | 254.79 | Due to the increase in costs of constructions for solar cells and high-purity polysilicon projects |
| Intangible assets | 2,410,841,890.16 | 2.73 | 1,663,705,788.75 | 2.59 | 44.91 | Due to the increase in intangible assets from the purchase of TECH-BANK business |
| Other non-current assets | 2,440,626,665.32 | 2.76 | 1,547,022,743.45 | 2.41 | 57.76 | Due to the increase in prepayments for engineering equipment |
| Short-term borrowings | 1,375,230,141.70 | 1.56 | 2,349,154,525.77 | 3.66 | -41.46 | Due to the optimization of financing period, and the reduction of short-term borrowings |
| Accounts payable | 8,151,270,076.21 | 9.23 | 3,917,320,980.64 | 6.10 | 108.08 | Due to the business expansion and investment increase, as well as the increase in accounts payable and in prepayments for engineering equipment |
| Contract liabilities | 3,112,027,804.79 | 3.53 | 2,302,728,492.73 | 3.58 | 35.15 | Due to business expansion and increase in advances from suppliers |
| Long-term borrowings | 11,441,029,860.16 | 12.96 | 6,296,585,539.34 | 9.80 | 81.70 | Due to business expansion and the optimization of financing period |
Other notes:
None.
2.Overseas assets
"√Applicable" "□Not applicable"
(1) Assets
The overseas assets were 1,955,956,342.20 (Unit: Yuan; Currency: CNY), accounting for 2.22% of thetotal assets.
(2) Note on the high ratio of overseas assets
"□ Applicable" "√ Not applicable"
3.Main restricted assets at the end of the reporting period
"√ Applicable" "□ Not applicable"
| Item | Closing carrying value | Restriction reasons |
| Cash at bank and on hand | 98,852,162.75 | Provide guarantees for financing and operations of the Company |
| Receivables financing | 10,084,007,955.24 | Provides pledges for the bank acceptance bills issued by the Company |
| Accounts receivable | 1,227,885,049.80 | Provide collaterals for financing of the Company |
| Contract assets | 660,365,599.48 | Provide collaterals for financing of the Company |
| Fixed assets | 8,415,955,174.84 | Provide securities for financing of the Company and financial lease |
| Construction in progress | 1,849,680,205.51 | Provide collaterals for financing of the Company |
| Intangible assets | 425,887,607.93 | Provide collaterals for financing of the Company |
| Investment properties | 75,396,248.55 | Provide collaterals for financing of the Company |
| Total | 22,838,030,004.10 |
4.Other notes
"□ Applicable" "√ Not applicable"
(IV). Analysis of operational information in the industry"√ Applicable" "□ Not applicable"The Company is involved in PV, agriculture, forestry, livestock husbandry and fishery.
Analysis of operational information in the PV industry
1.PV equipment manufacturing
"□ Applicable" "√ Not applicable"
2.Key technical indicators of PV products
"√ Applicable" "□ Not applicable"
| Product category | Technical indicator | |
| Solar-grade polysilicon: | Output ratio of products at all levels | Ratio of electricity cost to total product cost |
| Solar-grade polysilicon | 100% | 28.97% |
| Solar cells: | Average energy conversion efficiency in mass production | Maximum energy conversion efficiency in R&D stage |
| Monocrystalline silicon cells | 23.53% | 25.45% |
| Cell modules: | Average module power in mass production | Maximum module power in R&D stage |
| Crystalline silicon cells | 454W | 619W |
| Discussion and analysis of indicators: (1) Average energy conversion efficiency in mass production of solar cells means the ratio of the maximum output power of solar cells when they are under sunlight to the incident ray power, an important parameter to measure the quality and technical level of cells. The higher the energy 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 energy conversion efficiency rate in R&D stage refers to the highest average energy conversion efficiencies of all tested cells in the R&D stage. The Company strictly follows the standard grade-one reference solar cell from Fraunhofer and focuses on the development of high-efficiency cells. It further improves the conversion efficiency of cells and modules by adopting multi-grid, back passivation, SE process, high-resistance dense grid, alkali polishing, stacked solar cells and HJT technologies, allowing the Company to be the industry leader in product quality with relevant indicators. | ||
3.PV powerplants
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
| Development of PV powerplants | |||||
| Number of powerplants and total installed capacity held at the beginning of the period | Number of powerplants and total installed capacity sold in the reporting period | Number of powerplants and total installed capacity held at the end of the period | Total installed capacity approved | Total price of powerplant projects sold | Effect of powerplants sold in the period on the operational performance of the period |
| 45 powerplants with grid connected installed capacity of 2.1 GW | 0 | 48 powerplants with grid connected installed capacity of 2.7 GW | 2.7 GW | 0 | No powerplant was sold in the period |
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
Operation of PV powerplants in the year:
Region
| Region | Installed capacity (MW) | Power generation (10,000 kWh) | Grid connected power (10,000 kWh) | Settled power (10,000 kWh) | Price of grid connected electricity (yuan/kWh) | Electricity revenue | Subsidies |
Centralized:
| Centralized: | |||||||
| East China | 928.02 | 116,215.27 | 113,985.55 | 112,393.89 | 0.53 | 34,357.91 | 25,085.81 |
| South China | 1,087.68 | 129,853.54 | 127,696.34 | 126,439.18 | 0.48 | 43,934.55 | 16,149.87 |
| West China | 244.41 | 20,491.13 | 20,122.53 | 19,866.46 | 0.62 | 7,483.22 | 4,917.61 |
| North China | 154.91 | 16,424.47 | 16,094.19 | 16,019.17 | 0.71 | 5,384.82 | 5,938.94 |
| Middle China | 221.66 | 26,961.44 | 26,769.98 | 26,797.95 | 0.44 | 10,085.74 | 1,633.85 |
| Total | 2,636.68 | 309,945.85 | 304,668.59 | 301,516.65 | 2.78 | 101,246.24 | 53,726.08 |
| Distributed: | |||||||
| South China | 22.20 | 2,695.74 | 2,643.12 | 2,643.19 | 0.65 | 955.61 | 760.23 |
| North China | 20.57 | 3,176.66 | 3,098.72 | 3,075.01 | 0.53 | 1,091.76 | 552.09 |
| Middle China | 15.04 | 1,846.46 | 1,778.35 | 1,748.14 | 0.91 | 592.40 | 1,002.23 |
| Total | 57.81 | 7,718.86 | 7,520.19 | 7,466.34 | 2.09 | 2,639.77 | 2,314.55 |
Note: Grid connected electricity price, electricity revenue and subsidies exclude taxes."□ Applicable" "√ Not applicable"
4.Recommended tables
(1). PV capacity in use and in construction
"√ Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
| Product category | Yield | Capacity utilization | Process route in operation | Total investment in production lines in construction | Current investment in production lines in construction | Designed capacity | (Expected) completion time | Process route in construction |
| Solar-grade polysilicon | 109,340.50 tons | 129.91% | Modified Siemens process | 499,229.10 | 497,279.05 | 100,000 tons | 2022 | Modified Siemens process |
| Silicon wafers: | ||||||||
| Monocrystalline silicon wafers | / | / | / | 47,081.60 | 47,081.60 | 15 GW | 2022 | Monocrystalline |
| Solar cells: | ||||||||
| Multicrystalline silicon cells | 3.37 GW | 112.58% | / | / | / | / | / | / |
| Monocrystalline silicon cells | 29.56 GW | 98.33% | PERC/TOPCON/HJT | 228,542.38 | 228,542.38 | 15 GW | 2022 | PERC/ TOPCON |
| Cell modules: | ||||||||
| Crystalline silicon cell modules | 2.51 GW | 84.64% | High-efficiency modules | 921.99 | 921.99 | 3.6 GW | 2022 | High-efficiency modules |
(2). Major financial indicators of PV products
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
| Product category | Sales-to-production ratio (%) | Sales revenue | Gross profit margin (%) | ||
| Domestic | Overseas | Domestic | Overseas | ||
| Solar-grade polysilicon | 98.50 | 1,678,437.33 | 71.80 | ||
| Solar cells: | |||||
| Multicrystalline silicon cells | 101.30 | 104,368.72 | 27,744.45 | 3.58 | 6.17 |
| Monocrystalline silicon cells | 98.35 | 1,656,356.00 | 289,042.81 | 8.91 | 4.66 |
| Cell modules: | |||||
| Crystalline silicon cells | 96.95 | 162,528.02 | 234,498.67 | 9.52 | 11.14 |
PV products sold overseas should be listed by country or region"√Applicable" "□Not applicable"
Unit:10,000 yuan Currency: CNY
| Overseas sales of cell modules | ||
| Country/region | Sales revenue | Gross profit margin (%) |
| South Korea | 147,066.61 | 13.21 |
| Germany | 40,708.83 | 9.64 |
| Italy | 19,403.47 | 8.32 |
| Poland | 7,195.92 | 4.99 |
| Netherlands | 8,399.53 | 2.18 |
| France | 8,884.27 | 5.58 |
| Others | 2,840.04 | 4.06 |
Unit:10,000 yuan Currency: CNY
| Overseas sales of monocrystalline silicon cells | ||
| Country/region | Sales revenue | Gross profit margin (%) |
| Turkey | 88,089.88 | 4.50 |
| South Korea | 69,381.22 | 4.15 |
| Hong Kong SAR, China | 21,586.36 | 9.47 |
| Germany | 26,905.88 | 8.35 |
| Japan | 19,015.20 | 3.15 |
| India | 12,459.18 | 1.85 |
| Others | 51,605.09 | 2.90 |
Unit: 10,000 yuan Currency: CNY
| Overseas sales of multicrystalline silicon cells | ||
| Country/region | Sales revenue | Gross profit margin (%) |
| India | 19,131.86 | 5.84 |
| Brazil | 3,531.31 | 7.56 |
| Turkey | 1,265.84 | 7.26 |
| Hong Kong SAR, China | 216.39 | 5.76 |
| Others | 3,599.06 | 6.25 |
(3). PV powerplant projects commissioned or developed
"□ Applicable" "√ Not applicable"
5.Other notes
"□ Applicable" "√ Not applicable"
(V). Investment analysisOverall analysis on external equity investments"√ Applicable" "□ Not applicable"
According to the strategic planning, the Company is committed to the coordinated integration ofagriculture and PV industries and the further expansion of each industry. By making full use of its existingtechnology and cost advantages, the Company accelerates the business expansion, enhance thecompetitiveness, and strives to consolidate its leading position in the core component of the industrialchain.
1.Significant equity investments
"□ Applicable" "√ Not applicable"
2.Significant non-equity investments
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan
| Project name | Project budget | Amount invested in the reporting period | Cumulative investment amount | Project progress | Return realized in the reporting period | Sources of funds |
| Phase II 50,000-ton High-purity Polysilicon Project in Leshan | 401,020.00 | 366,784.46 | 370,983.33 | Completed | 7056.44 | Raising fund and self-funding |
| Phase I 50,000-ton High-purity Polysilicon Project in Baoshan | 409,203.75 | 406,333.02 | 408,225.27 | In progress | / | Self-funding |
| Phase II 50,000-ton High-purity Polysilicon Project in Baotou | 413,475.00 | 226,807.46 | 226,865.26 | In progress | / | Raising fund and self-funding |
| 15 GW monocrystalline Rod Pulling and Cutting Project | 440,535.87 | 104,203.56 | 104,203.56 | In progress | / | Raising fund and self-funding |
| Phase II 7.5 GW High-efficiency Solar Cell Project in Meishan | 240,000.00 | 122,804.89 | 181,011.88 | Completed | 2,262.44 | Raising fund |
| Phase I 7.5 GW High-efficiency Solar Cell Project in Jintang | 270,061.39 | 137,680.26 | 191,525.35 | Completed | -2,077.83 | Raising fund and self-funding |
| Tonghe Project | 450,000.00 | 228,542.38 | 228,542.38 | In progress | / | Self-funding |
3.FVTPL financial assets
"□ Applicable" "√ Not applicable"
4.Progress of significant asset restructuring and integration in the reporting period"□ Applicable" "√ Not applicable"
(VI). Significant asset and equity sales"□ Applicable" "√ Not applicable"
(VII). Analysis of companies where the Company holds shares"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan
| Full name of subsidiary | Business nature | Registered capital | Total assets | Net assets | Net income |
| Yongxiang Co., Ltd. | PV Industry | 142,086.69 | 2,847,473.21 | 1,386,520.86 | 863,211.02 |
(VIII). Structure entities controlled by the Company"□ Applicable" "√ Not applicable"
VI. Discussion and analysis on the Company's future development(I). Industry pattern and trends"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Feed industry in stage with low-speed and steady growth
China's husbandry was stable but in an upward pattern in the 13th Five Year Plan period; despite ofthe heavy hit from African swine fever virus, swine production recovered fully by the country's measuresto stabilize swine production and guarantee non-staple food supply. According to the Ministry ofAgriculture and Rural Affairs, pork output was 52,960,000 tons in 2021 or 28.8% higher than that in theprevious year, basically the general level before the pandemic; beef and mutton output was 4.1% higheryear-on-year; cow milk output 7.1% higher year-on-year and the output of aquatic products over 2% higheryear-on-year. Driven by the effective demand from husbandry, the total feed production in Chinacontinued its steady growth although clearly slower in relative to the 12th Five Year Plan period. There islittle room for increasing the consumption of industrial feed because of the wide application of feed inlivestock and poultry farming. Despite of the less application of feed, aquaculture and ruminant farmingneeds significantly less industrial feed than livestock and poultry due to the farming level, environmentand scale, and plays a limited role in increasing the total feed output. As such, the annual average growthrate of feed consumption in China is expected to be low in a long term.
(2) Upgraded requirements on safety and environmental protection drive the high-qualitydevelopment of the feed industry
The Regulation on the Administration of Feeds and Feed Additives, amended in 2017 has furtherenhanced the access threshold of feed industry with stricter punishments on violations and breaches forthe procedure-based and orderly development of the industry. In recent years, regulators have beenincreasing the efforts into supervision and spot check on feed production and operation, companies inviolation of applicable regulations may be subject to a fine up to 10 times of the price of productsconcerned, blacklisted and disclosed to the public. With the amendments, releases and implementationsof applicable regulations including the Environmental Protection Law of the People's Republic of Chinaand the Food Safety Law of the People’s Republic of China, feed companies are required to meet morestrict requirements for safety and quality, and comply with new requirements on food safety,environmental protection and consumption upgrading, which have raised new challenges for poorlyfunded SMEs with lower capabilities in technologies and production management, while top companiescan better adapt to and meet the industrial needs in the new circumstance due to their stronger strength soas to drive the high-quality development of the industry.
(3) Heavy dependence on imports of raw materials weighs on companies in terms of production costsin a long term
Main raw materials for feed production are corn and soybean meal, both of which are primarilyimported, a situation that is unlikely to change in a long run. According to China Customs data, 2021 cornimport was 28,350,000 tons, 2.5 times of the previous year; soybean import was 96,520,000 tons,accounting for about 60% of the global soybean trading volume; in the same year, China only produced16,400,000 tons of soybean, indicating a heavy import dependence of 83.7%. In the last two years, theprices of corn and soybean have been rising with fluctuations in the context of extreme weatheringconditions, the coronavirus pandemic, geopolitical tensions, trade frictions and inflations; and are expectedto remain high for a while. To lower this heavy import dependence and relieve the supply chain risk, theMinistry of Agriculture and Rural Affairs issued the Work Plan on Lowering the Use of Corn and SoybeanMeal and Recommending the Use of Alternative Ingredients in Feed and Technical Guidelines onLowering the Use of Corn and Soybean Meal in Swine and Chicken Feed through Use of AlternativeIngredients, under which, companies are guided and encouraged to use raw materials like wheat, sorghum,barley and rice instead of corn, and use rapeseed meal, cotton seed meal, peanut meal and sunflower seedmeal instead of soybean meal. Meanwhile, feed companies are actively testing new ingredients, strivingto stabilize and even reduce the costs of raw materials. That being said, from a short-term view, this highimport dependence will not be changed significantly, which keeps weighing on feed producers and imposean impact on the profitability of end farmers.
(4) Accelerated scale-up of feed industry with intensive and integrated model
According to China Feed Industry Association, from the perspective of production, China had 957feed producers of capacity greater than 100,000 tons in 2021, with an increase of 208 from the previousyear; the feed output from these producers reached about 0.177 billion tons, accounting for 60.3% of the
total feed output for a year-on-year growth of 7.5 ppts. There were 39 feed groups of annual capacity ofover 1 million tons and their output accounted for 59.7% of the total output in China, a year-on-yeargrowth of 5.1 ppts. From the perspective of sales, bulk feed (for large-sized farms) output was 90,287,000tons for a YoY growth of 53.1%, accounting for 33.4% of the total formula feed output, a YoY growth of
7.8 ppts. With the speedy concentration of the feed processing industry, top companies have theiradvantages in efficiency, technology, management, capital and human resources boosted with the capacityfrom small ones increasingly removed, resulting in clearly differentiated groups in the industry. In addition,top companies are increasing their investments into farming, food processing and trade, leading toincreasingly integrated industry chain. As such, the competition on comprehensive strength across theentire industry chain has become the mainstream.
2. PV
(1) With the carbon neutral consensus, PV industry will speed up its growth
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. To this end, IRENA (International RenewableEnergy Agency) World Energy Transitions Outlook: 1.5 ℃ Pathway predicts that the renewable powerwill take up 90% of the total power in the world (the PV and wind power will take up 63%), the totalinstalled capacity of PV power will exceed 14,000 GW, far higher than the current installed capacity acrossthe world, by 2050. At the same time, stimulated by the rapid rise of fuel energies, major economiesrepresented by the EU since 2022 have announced more aggressive renewable energy development plansunder which PV will get on an accelerating path. As predicted by CPIA, the average new installed capacityof PV power from 2022 to 2025 will reach 232 - 286 GW including the 83 - 99 GW from China.
(2) On-going improvements of PV technologies and processed help lower the cost of PV electricity
Cost reduction is an eternal topic for the development of PV industry. According to IRENA, the costof solar power declined by 85% from 2010 to 2020 mainly due to improvements of technologies,economics of scale, supply chain competitions and increased experience from developers. In 2021, theawarding price for the Saudi Arabia PV project was as low as 1.04 US cents/kWh (0.067 yuan/kWh) andthe awarding price for Ganzi PV project 0.1476 yuan/kWh, respectively recording the new lows in Chinaand abroad, according to CPIA. This means that PV generation has shifted from heavy reliance onsubsidies to a high-speed development driven by the market. The cost of PV generation will be furtherlowered, allowing it to keep the leading position among renewable energies, supported by increasedpercent of large-size and double-side modules, the mass production of frontier technologies like HJT andTOPCon, and the wide application of tracking brackets.
(3) Top players are more competitive with increased concentration in the industry
Several adjustments and reshuffles of the PV industry over the past two decades have graduallyremove outdated capacity with the industry concentration increasingly higher, and much of the newcapacity is in China. According to CPIA, in China, the top five polysilicon companies produced 86.7% ofthe total polysilicon output, the top five silicon wafer companies produced 84.0% of the total silicon wafers,the top five solar cell companies produced 53.9% of the total solar cells, and the top five module companiesproduced 63.4% of the total modules. Supported by their growing scale, leading companies continue toimprove quality and reduce costs through on-going technological breakthroughs and delicacy managementto build stronger competitiveness.
(4) Accelerated capacity expansion along the industry chain with increased competition
Pulled by robust demand expectations in both China and broad, China's PV industry chain is exposedto a new round of capacity expansion. The new capacity will be the result of more advanced technologiesand processes as well as more intelligent management systems to meet the objectives of better quality,reduced cost, lowered energy consumption and decreased carbon footprint, driving the high-qualitydevelopment of China's PV industry chain and allowing it to remain a global leader. It should be notedthat since 2021, apart from many traditional PV manufacturers that have been speeding up their capacityexpansion, many companies outside of the industry are investing. This capacity expansion will inevitablylead to short supply of capital, land, human resources and raw materials, and the expected competitionswill be fiercer. In this process, leading companies are more able to withstand risks thanks to their scale,technologies, cost, human resources and management, while new comers will be exposed to largeruncertainties and pressure.
(II). Development strategy of the Company"√ Applicable" "□ Not applicable"
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, and other areas, it adapts to industry developmenttrends, adheres to the specialization, large-scale, and industrialization process of the PV new energysegment and agriculture and animal husbandry segments, and optimizes and improves their respectiveindustrial chain, strives to promote the Company's sustainable and stable development by both endogenousand extensional investment methods, promotes the continuous and stable development and realizes theCompany's vision of "For Better Life".
1. Agriculture and animal husbandry: a world-class safe food supplier
Feed industry: With a focus on the specialization and scale up of the feed business, the Companytries to grow steadily by setting up facilities overseas as well as domestic and international M&As. Whilefocusing on the aquatic feed business, the Company makes the most of the season-based cycle of thebusiness by exploring the collaborative mode with large farming companies in livestock and poultry feed,a way to increase its feed business size and market share.
Aquaculture: Based on the resources (aquaculture resources, channel resources) gained over the pastyears, and making use of its unique Aquaculture-Photovoltaic Integration mode for efficiencyimprovement, the Company puts great efforts into the new approach combining the Company with farmers,and further explores and develops facility-based standard fishery where factory-based farming targetingpremium sea products represented by prawns and special aquatic foods, elevates the automation,intelligence and environmental standards for aquaculture, advances the transformation from traditional tomodern fishery, and build state-of-the-art production bases of safe aquatic products which can be fullytracked.
Processing and trade activities: The Company accelerates the deep processing and trade of aquaticproducts and build a uniform industry chain from farmers to consumers around the growth mode of “three-fish, one-prawn, one-platform and one-market”. Tongwei Fish, the Company's green and safe foodbenchmark, has been highly recognized in the regional market, and the successful model will be replicatedin many places in the future. At the same time, it is actively applying big data to the sale of aquatic productsby combining an e-commerce platform (Quan Nong Hui) with an aquatic wholesale market (San LianShui Chan Pin) to create a circulation system. By giving full play to Tongwei Fish, the Company focuseson the operation of key products like Tilapia, mullet, channel catfish and Yantian shrimp, striving to coverthe entire industry chain including farming, production, processing and trade.
2. PV: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry, the Company will continue to enhance itssizes in key processes of the PV manufacturing and accelerate the Aquaculture-Photovoltaic Integrationmode to be a world-class clean energy operator.
Regarding PV manufacturing, by giving full play to its capabilities of technology development andcost control, the Company is solidifying its leading position in this area. It is accelerating the expansionof high-purity polysilicon capacity by catching the window period in which import substitution andremoval of outdated capacity. Regarding the solar cells, size expansion and improvement of the costadvantage in the context that the industry concentration is on the rise.
The Aquaculture-Photovoltaic Integration is under firm advancement in the field of PV generation.Through organic combination of its resources in agriculture and PV, the Company is trying to create anAquaculture-Photovoltaic Coexistence economy where feed, aquatic products and green energy areintegrated, thereby building a differentiated competitiveness for the Company.
(III). Business plan"√ Applicable" "□ Not applicable"
For 2022, with firm adherence to the business guidelines of focus, execution and efficiency, theCompany continues securing its advantages in aquatic feed, high-purity polysilicon and solar cell toincrease its value and return to shareholders.
1. Agriculture and animal husbandry
In 2022, the Company strives to increase the revenue of feed, food and associated businesses alongthe industry chain by over 10% YoY to more than 27 billion yuan. Guided by the quality policy and aiming
to maximize the farming benefit, the Company highlights focused products, marketing transformation andstandardization tasks, with further deepening the implementation of quality policy in production, sale anduse, for the win-win between the Company and end farmers.
2. PV
In 2022, the Company strives to produce and sell over 180,000 tons of high-purity polysilicon andover 40 GW of solar cells, and to newly invest and construct 1 GW of Aquaculture-PhotovoltaicIntegration projects. To this end, the Company has proposed the following actions:
(1) High-purity polysilicon
Through standard management of work safety, the Company ensures the safety and smoothness ofproduction and project construction. On-going efforts into technological development and optimization ofprocesses are used for ensuring product quality and cost reduction. Strategic partnerships are furtherstrengthened to ensure a stable supply and full capacity.
(2) Solar cells
Following the demand trend, the Company rapidly advances the newly completed projects to reachtheir full capacity, increases the delivery of large-size products, and improve its profitability. Withcontinued efforts into cost reduction through technologies, production processes and management, theCompany is trying to boost its core competitiveness. Putting more efforts into breakthroughs oftechnological bottlenecks of the trial lines of 1 GW TOPCon and 1 GW HJT projects, the Company intendsto improve the comprehensive cost efficiency of new technologies to provide sufficient verifications forthe subsequent mass production. In addition, improved cooperation with strategic suppliers and customerswill be applied for mutual benefits.
(3) PV power generation
In the context that China is advancing rural revitalization, the Company develops Aquaculture-Photovoltaic Integration projects in areas abundant in water surfaces. High-efficiency modules, flexiblebracket 2.0 technology, and automatic construction are combined to lower the cost and improve theefficient combination of resources and industries in the Aquaculture-Photovoltaic Integration model.
(IV). Possible risks"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Risk of raw material price volatility. The major component of feed cost is from raw materials.The current prices of raw materials are highly susceptible to many factors such as the international politicaland economic situation, changes in the output of the main producing areas, national collection and storageand subsidies, exchange rate fluctuations, and changes in logistics costs. High volatility of raw materialprices may affect the gross profit margin of products.
Risk response measures: strengthen team training on business skills, closely track changes indisturbance factors, predict the price trend of raw materials through systematic research and analysis;combine supply, production, and sales requirements, rationally arranged purchasing plans, and implementoptimal inventory management; participant in the operation and management of the IPD product linetogether with formula product managers and quality control; ensure continuous follow-up of research anddevelopment, and meet the needs of raw material substitution under extreme conditions.
(2) Market volatility risk. Feed sales are directly affected by downstream aquaculture which isadversely influenced by natural disasters, abnormal temperature and the spread of diseases, leading tofluctuations in feed demand.
Risk response measures: pay close attention to the climate, natural disasters, and diseases, withprevention first and remedy as the supplement, quickly develop response measures, and actively helpfarmers to resume breeding activities; increase investment in disease prevention and control research,promote proved aquaculture model according to the needs of aquaculture species and help farmersmaximize their benefits; the rich feed varieties of the Company and reasonable regional layout of branchcompanies can effectively cope with systemic market fluctuation risks.
(3) Policy risk. With the implementation of the new Environmental Protection Law, greenaquaculture norms and policy-based subsidies, the aquaculture industry is developing towards antibiotic-free, green, large-scale, and intelligent which raise high challenges to small farmers and new requirementsfor the Company.
Risk response measures: according to the development trend of aquaculture, the Company rationallyadjusts the Company's business strategy and increases the development of large-scale farms; resolutely
implementes antibiotic-free feeds, makes reasonable formulas according to the nutritional needs ofdifferent aquaculture species at each growth stage, and launches high-quality feed products, enhances thelevel of product profitability; guides the transformation and upgrading of small farmers with strongoperating capabilities, and actively seek for relevant subsidy policies to achieve large-scale development.
(4) Exchange rate volatility risk. With the growing demand for international raw material trade andthe expanded overseas feed business of the Company, frequent two-way fluctuations in the RMB exchangerate will leave an obvious impact on business operations.Risk response measures: the Company pays close attention to and study the development trends ofthe international foreign exchange market, and selects favorable payment settlement currencies andsettlement methods accordingly; improves its research and forecast capabilities of the foreign exchangemarket, strengthens the management of import and export business, and uses financial instruments suchas future foreign exchange settlement, change over and foreign exchange options business to lock theexchange rate risks. The Company makes full use of its advantages of in scale, technology, and brand, andactively seek for the initiative in the negotiation and negotiation mechanism for prices, currencies, andsettlement cycles.
(5) Other risks from force majeure. Despite of the effective control of the overall pandemic in China,the spreading of variants such as omicron and the on-going influences of overseas pandemic, local virusoutbreaks still happen from time to time. The possibility that overseas pandemic will spread furtherremains. As such, purchase of raw materials and international trade are still exposed to potential pandemicrisk.
Risk response measures: The Company will increase analysis and predications on the pandemic andother force majeure risks with appropriate virus protection measures, and take necessary actions to copewith the negative influence of long-term pandemic on purchase, production and sale activities.
2. PV industry
(1) Industry chain instability. Capacity mismatch of the PV industry chain has led to short suppliesin some stages and highly volatile product prices, which places supply chain management under pressure.What is more, shipping cost has been significantly increase due to the pandemic impact and complicatedinternational trade environment.
Risk response measures: The Company will increase analysis and research of the industry chain, keepimproving its competitiveness in scale, technologies, quality and cost, and enhancing the cooperation withupstream and downstream companies to ensure a stable supply chain.
(2) Adjustment of industry policies. The PV industry is benefited from the country's policies, anysignificant change in the policies will have an impact on the industry. Also, some foreign countries stillhave policies encouraging PV generation in place, any change in such policies will influence the demandfor PV installations.
Risk response measures: The Company will keep a close eye on changes in relevant policies with arisk response plan in place, and continue lowering product cost with improved product competitiveness,to hold its favorable position in competitions.
(3) Technology updates. Technologies and products are upgraded at a higher speed in the PV industrythan in some other industries. In recent years, breakthroughs in new generation silicon cells includingTOPCon, HJT and IBC have been made with on-going developments in non-silicon routes such as filmand perovskite. The new technologies raise higher requirements on silicon quality and the demand for N-type products is expected to be higher. Inability to keep abreast of frontier technologies and marketchanges is likely to weaken the Company's competitiveness.
Risk response measures: The Company will be actively engaged in the trial and mass production ofmainstream technologies of the next generation including HJT and TOPCon while keep an eye on forward-looking technologies with R&D demonstrations to ensure it holds the leading technologies, and continueincreasing the percent of N-type silicon material supplied and cost reduction work to strengthen its corecompetitiveness.
(4) International trade frictions. Over the development of past years, China has developed a strongPV industry in terms of scale, cost and quality, with the number one market share across the world and agrowing export. In recent years, some countries have initiated AD and CVD investigations and imposedother trade restriction on Chinese PV products, similar incidents will not be excluded, which once happenwill impact the country's PV industry.
Risk response measures: The Company only exports a small portion of its products directly, whichmeans it is less exposed to risks like this. With on-going attention to the trends and patterns of international
trade and given its own strategic development plan, the Company will improve its market competitivenesssuch as polysilicon products and solar cells.
(5) Other risks from Force Majeure. The coronavirus pandemic overseas remains severe. Overseasmarket contributes to about sixty percent of global demand for PV installation capacity. The possibilitythat the demand for PV terminals will be lowered is not excluded if the pandemic remains out of effectivecontrol.Risk response measures: With increased analysis and predication of the pandemic and other forcemajeure risks, the Company will give full play to its core competitiveness and put more efforts intodeveloping strategic customers to lower the negative impact from these risks.
(V). Others"□ Applicable" "√ Not applicable"
VII. Note on the fact that the Company fails to disclose under standards due to inapplicability of thestandards due to inapplicability or national secrets and/or trade secrets and the reasons"□ Applicable" "√ Not applicable"
Section IV. Company GovernanceI. Note on the Company governance"√ Applicable" "□ Not applicable"
In the reporting period, the Company further improved its company governance structure and variousinternal systems given its actual conditions in strict accordance with the Company Law, Code of CorporateGovernance for Publicly Listed Companies and other legal requirements. The shareholders meeting, theboard of directors, the board of supervisors and the management of work under clear powers andresponsibilities, having formed a procedure-based governance structure for the legal entity to ensure itssmooth running in accordance with regulations. The board of directors believes that the governancestructure of the Company is in compliance with the Code of Corporate Governance for Publicly ListedCompanies and other legal requirements.(I) Shareholders meeting, board of directors meeting and board of supervisors meetingIn the reporting period, the Company held one annual shareholders meeting and one interimshareholders meeting. The procedures for shareholders meeting were in compliance with the Listing Rulesof the Shanghai Stock Exchange, Articles of Association of the Company, and Rules of Procedure forShareholders Meeting and safeguarded the legitimate interests of the Company and its shareholders. Sevenmeetings of the board of directors were held in the reporting period. Directors attended board meetings inaccordance with the Articles of Association and the Rules of Procedures for the Board of Directors andother policies, and discussed deeply on various proposals submitted for deliberation, fully considered theinterests and demands of small and medium shareholders when making decisions, which helped with thestable and healthy development of the Company's production and operation. In the reporting period, sevenmeetings of the board of supervisors were held. Supervisors attended the meetings in accordance withregulations such as Company Law, Articles of Association and the Rules of Procedure for the Board ofSupervisors, and performed their duties independently under laws to improve the procedure-basedoperation of the Company.(II) Controlling shareholder and its related parties and listed companiesThe controlling shareholder of the Company behaved, exercised rights and performed obligationsunder laws, did not directly or indirectly interfere with the Company's decision-making and businessactivities without the participation of the shareholders meeting. Board of directors, board of supervisorsand the management performed independently and the Company had independent businesses and was ableto operate on its own. In the reporting period, the Company did not provide any guarantee to its controllingshareholder and/or its related parties, and the controlling shareholder did not occupy any funds of theCompany for non-operating purposes.In the reporting period, every related-party transaction submitted to the board of directions fordiscussion was approved via voting with the voting rights of related directors disabled. The relatedtransactions were priced fairly without any influence on the Company's independence or harm to the listedcompany.
(III) Disclosure and transparencyThe Company attaches great importance to information disclosure and strictly observes theprovisions of Shanghai Stock Exchange on information disclosure of listed companies as set forth inSecurities Law. In the reporting period, board of directors, board of supervisors and management of theCompany prudentially signed written confirmations to ensure that the authenticity, accuracy, completeness,timeliness and fairness of the disclosure. The Company received the best rating (Grade A) on informationdisclosure 2020 - 2021 from Shanghai Stock Exchange for its great information disclosure.In the reporting period, the Company managed insiders relating to periodical reporting and importantissues through the registration system in strict accordance with applicable regulations to ensure the fairnessprinciple for information disclosure and protect the legitimate rights and interests of shareholders.
(IV) Investor relationsThe Company attaches high importance to long-term and active communications with all kinds ofinvestors. In the reporting period, the Company conveyed its operation philosophy, results and strategicdirection to investors through channels including shareholders meetings, performance briefings andinvestor platforms. In addition, it responded carefully and patiently to queries from investors via phonecalls, emails, visits and http://sns.sseinfo.com/, which helped investors understand and gain confidence inthe Company, and maintained the Company's image in the capital market. In 2021, the Company receiveda lot of awards and honors, including the Sharp Board Secretary Award out of the Golden Qualityassessment of publicly listed companies issued by Shanghai Securities News, the Company of the Yearwith the Highest Investment Value from China Fund, and the Golden Bull Award of the Highest Valueand the Golden Bull Award from China Securities Journal.
(V) Safeguard the rights and interests of shareholdersThe Company takes the rights and interests of shareholders, in particular small and middle-sized ones,seriously, seeks for sustainable returns to shareholders. In the reporting period, the Company completedthe 2020 profit distribution in accordance with the Three-year Distribution Plan (2018-2020), anddeveloped the new Three - Year Distribution Plan (2021-2023) which has been approved by the 2020annual shareholders meeting.Corporate governance is a long-term work. The Company will improve its operation and management,optimize the decision-making mechanism, and enhance the functioning of the governance level,supervision level and operation level for the healthy and stable development of the Company in accordancewith laws and regulations issued by regulators.
Significant difference between the corporate governance and provisions of laws, regulations and rules ofthe CSRC on listed companies and the reasons"□ Applicable" "√ Not applicable"
II. Specific measures taken by the controlling shareholder and actual controller of the Companyfor ensuring the Company’s independence in assets, personnel, financial affairs, organizationalstructure and business activities, as well as solutions, progress and work plan for influencing theCompany’s independence"√ Applicable" "□ Not applicable"
The Company is strictly separated from its controlling shareholder and actual controller in terms ofassets, personnel, financial affairs, organizational structure and business activities, takes responsibilitiesand risks independently. No matters that impact the Company's independence and that prevent it frombeing independent or keeping independent operation exist.(I). Asset independenceThe Company owns a business system and a complete asset system with all relevant assets under itscontrol and owned and operated by the Company. The ownership between the Company and its controllingshareholder is clearly defined and the Company has no assets or funds occupied by the controllingshareholder and is exposed to any other circumstance that harms the interests of other shareholders of theCompany.
(II). Personnel independence
The Company has an independent system for personnel registration, on boarding, appointment,dismissal and review, as well as an independent renumeration management and benefit system. Seniormanagers (general manager, deputy general managers, board secretary and financial director) serve theCompany on a full-time basis and receive renumeration from the Company. No controlling shareholder,
actual controller and/or businesses under their control assume positions other than directors and/orsupervisor or receive payments from the Company. No financial staff of the Company take any part-timejob in the controlling shareholder, actual controller and/or businesses under their control.(III). Financial independenceThe Company has an independent finance and audit department, and an independent accountingsystem and financial management system, being able to make financial decisions independently. As anindependent taxpayer, the Company make tax returns and pay taxes under laws. The Company has its ownbank account and does not share any bank account with its controlling shareholder, actual controller and/orbusinesses under their control.(IV). Structure independenceThe Company has a completed governance structure consisting of shareholders meeting, board ofdirectors and board of supervisors with respective procedures. Furthermore, the Company has developeda complete operation management system with independence in power of management and not influencedby its controlling shareholder or actual controller and/or companies controlled by them.
(V). Business independenceThe Company has the assets, personnel, qualifications and capabilities for independent businessactivities. The Company is independent of its controlling shareholder, actual controller and/or businessescontrolled by them in terms of business activities; it is not a competitor of its controlling shareholder,actual controller and/or businesses controlled by them.No issue that has an impact on the Company's independence has been found so far.
Controlling shareholder, actual controller and/or any other entity under their control is engaged in anybusiness identical or similar to the business of the Company, and any impact of competition between theCompany and its controlling shareholder, actual controller and/or any other entity under their control andany great change in such competition, actions for resolving this impact that have been taken, the resolutionprogress and the plan for next steps"□ Applicable" "√ Not applicable"
III. Introduction to shareholders meeting
| Session No. | Session date | link to the designated website where the published resolutions are available | Disclosure date | Resolutions |
| 1st interim shareholders meeting 2021 | 2021-02-25 | http://www.sse.com.cn/ | 2021-02-26 | Proposals discussed and resolved: The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary, the Proposal on the Management Procedures on Tongwei Co., Ltd. Employee Share Plan 2021-2023, the Proposal on Requesting the Shareholders Meeting to Authorize the Board of Directors to Deal with Issues Relating to Tongwei Co., Ltd. Employee Share Plan 2021-2023, and the Proposal on the Modification of the Articles of Association and the Subsequent Business Registration. |
| Annual shareholders meeting 2020 | 2021-05-07 | http://www.sse.com.cn/ | 2021-05-08 | Proposals discussed and resolved: 2020 Work Report of the Board of Directors, 2020 Work Report of the Board of Supervisors, 2020 Annual Report and its Summary, 2020 Financial Close Report, 2020 Profit Distribution Proposal, 2020 Working Report of Independent Directors, the Proposal on Renewing the Engagement with the Accountant Firm, the Proposal on 2021 Application for Comprehensive Credit Line, the Proposal on the Company's Accepting Guarantees from and to Subsidiaries in 2021, the Proposal on the Company's Providing Guarantees to its Customers in 2021, the Proposal on Starting Bill Pool Service in 2021, the Shareholder Distribution Plan 2021-2023, the Proposal on Adjusting the Total Size of Some Projects Invested by the Raised Funds, the Proposal on the Company’s Compliance with the Conditions for Issuing A-share Convertible Bonds, the Proposal on the Feasibility Report on Use of Funds Raised via the Company’s Public Issuing A-share Convertible Bonds, the Proposal on the Dilution on Immediate Return via the Company's Public Issuing Convertible Bonds and Remedial Measures, the Rules on Meeting of A-share Convertible Bond Holders, the Proposal on Requesting the Shareholders Meeting to Authorize the Board of Directors to Deal Issues relating to the Company's Public Issuing Convertible Bonds, and the Proposal on the Use of Funds Raised in the Previous Financing Activity. |
Interim shareholders meetings requested by the preferred shareholders whose voting rights have been restored
"□ Applicable" "√ Not applicable"
Note on shareholders meetings"□ Applicable" "√ Not applicable"IV. Information of directors, supervisors and senior managers(I). Shareholding changes and Renumeration of directors, supervisors and senior management currently in office and having left office in reporting period"√ Applicable" "□ Not applicable"
Unit: share
| Name | Position (note) | Gender | Age | Start date | End date | Opening shares | Closing shares | Change in shares | Reason for change | Total before-tax compensation from the Company in the reporting period (10,000 yuan) | Whether receiving compensation from related parties of the Company |
| Liu Hanyuan | Director | Male | 57 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 285.34 | No | |
| Xie Yi | Chairman of the Board of Directors | Male | 38 | 2019-05-08 | 2022-05-07 | 290,122 | 217,622 | -72,500 | Note: | 434.29 | No |
| Yan Hu | Vice Chairman of the Board of Directors | Male | 58 | 2011-05-10 | 2022-05-07 | 836,650 | 836,650 | 0 | 297.49 | No | |
| Duan Yong (left) | Director | Male | 48 | 2016-05-03 | 2021-05-27 | 1,061,628 | 796,311 | -265,317 | Note: | 436.16 | No |
| Wang Xiaohui | Director | Male | 45 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 0 | No | |
| Ding Yi | Director | Female | 57 | 2020-05-12 | 2022-05-07 | 0 | 0 | 0 | 5 | No | |
| Du Kunlun | Independent director | Male | 53 | 2016-01-15 | 2022-05-07 | 0 | 0 | 0 | 10 | No | |
| Wang Jin | Independent director | Male | 55 | 2016-05-03 | 2022-05-07 | 0 | 0 | 0 | 10 | No | |
| Fu Daiguo | Independent director | Male | 57 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 10 | No | |
| Deng San | Chairman of the Board of Supervisors | Female | 37 | 2017-05-05 | 2022-05-07 | 225,880 | 225,880 | 0 | 119.37 | No | |
| Yang Shixian | Supervisor | Male | 49 | 2007-04-30 | 2022-05-07 | 210,800 | 158,100 | -52,700 | Note: | 52.83 | No |
| Chen Xiaohua | Supervisor | Male | 52 | 2016-05-03 | 2022-05-07 | 0 | 0 | 0 | 3 | No | |
| Guo Yizhong | General Manager | Male | 51 | 2016-03-03 | 2022-05-07 | 500,450 | 500,450 | 0 | 331.06 | No |
| Chen Pingfu | Deputy General Manager | Male | 56 | 2010-04-27 | 2022-05-07 | 444,730 | 444,730 | 0 | 157.29 | No | |
| Wang Shangwen | Deputy General Manager | Male | 58 | 2013-05-07 | 2022-05-07 | 659,050 | 659,050 | 0 | 175.70 | No | |
| Song Gangjie | Deputy General Manager | Male | 58 | 2013-05-07 | 2022-05-07 | 425,075 | 331,375 | -93,700 | Note: | 86.54 | No |
| Shen Jinzhu | Deputy General Manager | Male | 56 | 2016-05-09 | 2022-05-07 | 280,400 | 210,300 | -70,100 | Note: | 119.90 | No |
| Zhang Lu | Deputy General Manager | Male | 43 | 2017-03-12 | 2022-05-07 | 281,600 | 281,600 | 0 | 154.79 | No | |
| Zhou Bin | Financial Director | Male | 53 | 2019-05-08 | 2022-05-07 | 55,211 | 55,211 | 0 | 193.91 | No | |
| Yan Ke | Secretary of the Board of Directors | Male | 37 | 2019-05-08 | 2022-05-07 | 0 | 0 | 0 | 129.38 | No | |
| Total | / | / | / | / | / | 5,271,596 | 4,717,279 | -554,317 | / | 3,012.05 | / |
Note: In 2015, the A-share market experienced irrational drops, leading to dramatic fluctuation of Company's share price, making the market cap was severely deviatedfrom the Company's value. With confidence in China's economy, China's capital market and the Company's development prospects, the management increased theirshares in the Company to stabilize the share price and drive the market cap to be normal. In the reporting period, for gaining benefits and due to personal needs, somemanagement members reduced their shares in the Company subject to applicable laws and regulations as well as SSE Detailed Rules on the Shareholding Reductionby the Shareholders, Directors, Supervisors, and Senior Management of Listed Company.
| Name | Work experience |
| Liu Hanyuan | Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer. He was the chairman of the first to sixth board of directors of the Company. He is the chairman of the board of directors of Tongwei Group and a director of the 7th board of directors of the Company. Other social positions include a member of the 11th Standing Committee of the CPPCC National Committee, deputy to the NPC (National People's Congress), a member of Standing Committee of All-China Federation of Industry and Commerce, the executive chairman of CNECC, vice chairman of the All-China Federation of Industry and Commerce Sichuan and the executive vice chairman of China Feed Industry Association. |
| Xie Yi | Male, born in 1984, MIM from Imperial College London, UK, member of the CPC. He was the president assistant of Tongwei Group, chairman of the board of directors of Tongwei Solar (Hefei) Co., Ltd., chairman of the board of directors of Tongwei Solar (Chengdu) Co., Ltd., and currently serves as the chairman of the board of directors of the Company. Other social positions include a 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; and vice chairman of the second council of CPIA. |
| Yan Hu | Male, born in 1964, MBA of Guanghua School of Management, Peking University, senior accountant. He was the chief accountant of the Southwest Medical Equipment Co., Ltd., the manager on behalf of the US party in the GE Healthcare China Southwest Branch, financial director of Sichuan Zhongyuan Industries Company Limited, executive deputy general manager of Chengdu Yuanda Wheel and Rim Manufacturing Co., Ltd., vice president and financial director of South Hope Industrial Co., Ltd., director and financial director of New Hope Group, and the director of New Hope Co., Ltd. After joining the Company, he has served as the chief accountant of Tongwei Group, the chief accountant, president, and secretary of the board of directors of Tongwei Co., Ltd., and the director of the board of directors (1st, 2nd, 4th, 5th, and 6th) of Tongwei Co., Ltd. He is a director |
| and vice chairman of the 7th board of directors of the Company. He is also the legal representative and vice-chairman of Sichuan Association for Listed Companies, vice chairman of Sichuan Enterprise Confederation and the Sichuan Entrepreneurs Association, vice-chairman of China Society of Forestry, Animal Husbandry and Fishery Economics, vice chairman of Sichuan Research Institute for International Tax, and vice chairman of Association of Feed Industry, and vice-chairman of Sichuan Fisheries Society. | |
| Duan Yong | Male, born in 1974, MBA and Master from Lingnan University. He served as the deputy general manager, financial director and secretary of the board of directors of Shanghai Topslane Medical Devices Co., Ltd.; Baotou financial director, president assistant, executive president and president of East Hope Group. He was the chairman of the board of directors of Yongxiang Co., Ltd. and a director of the 7th board of directors of the Company (resigned in May 27, 2021). |
| Wang Xiaohui | Male, born in 1976, master in economics of the Guanghua School of Management in Peking University. He was an auditor of Beijing KPMG Huazhen Accounting Firm, an industry analyst of CITIC Securities Research Department, a senior manager and director of energy industry group of Investment Banking Committee of CITIC Securities, and the executive general manager of M&A Department of Investment Banking Committee of CITIC Securities. He is the executive director of China Life Asset Management Co., Ltd., a director of Beijing Jingneng Power Co., Ltd. and a 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 a director of the 7th board of directors of the Company and also serves as an independent director of Huaxia Bank Co., Ltd, Huatai Asset Management Co., Ltd. and Yanshi New Materials Co., Ltd. |
| Du Kunlun | Male, born in 1969, doctor in economics, China CPA (Certified Public Accountant), China CPV (Certified Public Valuer), researcher, mentor of master candidates in Institute of Finance of Sichuan Academy of Social Sciences. He was a member of the 12th and 13th Main Board Market Issuance Examination Commission of China Securities Regulatory Commission, and an independent director of the 5th and 6th board of directors of the Company. He is an independent director of the 7th board of directors of the Company. |
| Fu Daiguo | Male, born in 1964, dean of the Western Business School of Southwestern University of Finance and Economics, a professor of accounting, doctoral supervisor, and vice president of Chengdu Accounting Society. He served as an independent director of several companies such as Sichuan Crun Co., Ltd., Lier Chemical Co., Ltd., and Ingenic Semiconductor Inc. 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 in economics from Emory University, USA and a professor. He worked in Emory University, Georgian College, Georgia Public Affairs, Federal Reserve Bank and other institutions on a full-time or part-time basis, 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, the CECEP Solar Energy Co., Ltd. and Shuangdeng Cable Co., Ltd., and external director of the SPIC Guangdong Electric Power Co., Ltd. |
| Deng San | Female, born in 1984, CPC member, MBA of Sichuan University. She was the head of the secretary department of Tongwei Group, assistant to the chairman of the board of directors of Tongwei Group, and the chairman of the 6th board of supervisors of the Company. She is the chairman of the 7th board of supervisors of the Company. |
| Yang Shixian | Male, born in 1972, master in market economics. He was the finance manager and project manager of Fuling Tongwei Feed Co., Ltd., general manager assistant and financial manager of He'nan Tongwei Feed Co., Ltd., and a member of the 3rd to 6th board of supervisors of the Company. He is a |
| member of the 7th board of supervisors of the Company. | |
| Chen Xiaohua | Male, born in 1969, CPA. He worked at Chengdu Zhongda Accounting Firm, Sichuan Branch of Beijing Jingdu Public Accounting Firm and Sichuan Shenghe Public Accounting Firm. He is the director of Sichuan Branch of Beijing Xinghua Public Accounting Firm (Special General Partnership) and a member of the 6th and 7th board of supervisors of the Company. |
| Guo Yizhong | Male, born in 1970, college diploma. He served as the general manager of Jieyang Tongwei Feed Co., Ltd., the general manager of Guangdong Tongwei Feed Co., Ltd. and general manager of Guangdong Area. Since March 2016, he has been the general manager of the Company. |
| Chen Pingfu | Male, born in 1965, EMBA, CPA. He was the finance manager, deputy general manager and general manager of Sichuan Tongwei, a member of the 4th and 5th board of directors of the Company. He is the general manager responsible for Vietnam area one and the deputy general manager of the Company. |
| Wang Shangwen | Male, born in 1963, MBA, doctor's degree. He served as president assistant, 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 Continued Education, Tsinghua University (2002-2003). He served as president assistant of the Company, general manager of Chongqing Area, general manager of Jiangsu and Zhejiang Area, general manager of Yangtze River and Huai River Area, general manager of Suzhou Tongwei Feed Co., Ltd., and general manager of Nanjing Tongwei Aquatic Products Technology Co., Ltd. He is currently the deputy general manager of the Company. |
| Shen Jinzhu | Male, born in 1966, bachelor degree, aquaculture engineer. He served as the general manager of Shashi Tongwei Feed Co., Ltd., general manager assistant 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 Hefei Branch. |
| Zhang Lu | Male, born in 1979, doctor's degree, researcher, an expert receiving the special government allowance from the State Council. He was vice technology director and the technology director of fish feed in Guangdong Yuehai Feeds Group. Currently, he is the technology director and a deputy general manager of the Company. |
| 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 of Sichuan Beite Certified Public Accounting Firm, the general manager of Sichuan Zhongfa Certified Tax Accountant Firm and the financial director of Yongxiang Co., Ltd. He is the financial director of the Company. |
| Yan Ke | Male, born in 1985, bachelor degree in accounting from 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. |
Other notes"□ Applicable" "√ Not applicable"
(II). Other offices of directors, supervisors and senior management currently in office and havingleft office in reporting period
1. Offices in shareholders
"√ Applicable" "□ Not applicable"
| Name in office | Shareholder name | Title | Start date | End date |
| Liu Hanyuan | Tongwei Group Co., Ltd. | Chairman of the board of directors | 2008-03-24 | |
| Wang Xiaohui | China Life Asset Management Company Limited | Executive director | 2017-03-08 | |
| Note on offices in shareholders | None. | |||
2. Offices in other entities
"√ Applicable" "□ Not applicable"
| Name in office | Entity name | Title | Start date | End date |
| Du Kunlun | Sichuan Academy of Social Sciences | Mentor of master candidates | 2012-12-01 | |
| Du Kunlun | Luzhou Laojiao Co., Ltd | Independent director | 2015-06-30 | 2021-06-29 |
| 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 | 2022-01-24 |
| Wang Jin | International Energy Research Institute | Head | 2012-06-01 | |
| Wang Jin | Chongqing Zongshen Power | Director | 2016-04-01 | 2019-10-31 |
| Wang Jin | CECEP Solar Energy Co., Ltd. | Independent director | 2014-03-01 | 2020-02-28 |
| Wang Jin | Shuangdeng Cable Co., Ltd. | Independent director | 2020-08-01 | |
| Wang Jin | Inner Mongolia Yili Energy Co Ltd. | Independent director | 2020-05-01 | |
| Wang Jin | SPIC Guangdong Electric Power Co., Ltd. | External director | 2020-03-01 | |
| 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 Co., Ltd. (To be listed) | Independent director | 2019-07-31 | |
| Ding Yi | Hua Xia Bank Co., Ltd. | Independent director | 2020-09-09 | |
| Ding Yi | Huatai Asset Management Co., Ltd. | Independent director | 2020-09-04 | |
| Ding Yi | Yuanshi New Materials Co., Ltd. | Independent director | 2021-10-22 | |
| Wang Xiaohui | Beijing Jingneng Power Co., Ltd. | Director | 2021-06-23 | |
| Chen Xiaohua | Beijing Xinghua Accounting Firm (special general partnership) | Head of Sichuan office | 2012-09-01 | |
| Note on offices in other entities | None. | |||
(III). Renumeration of directors, supervisors, and senior managers"√ Applicable" "□ Not applicable"
| Procedures for deciding the renumeration of directors, supervisors, and senior managers | Under the Articles of Association and relevant provisions of the Detailed Rules of Remuneration and Review Committee, the Committee studies and reviews the remuneration policies and plans for directors and senior managers. The remuneration and review procedures for senior managers are put into implementation after being discussed and approved by the board of directors, the remuneration payments are determined after reviewed by the Committee; the remuneration plans for directors and supervisors and submitted to the shareholders meeting for approval after being approved by the board of directors and board of supervisors. |
| Basis for the renumeration of directors, supervisors, and senior managers | 1.The renumeration of directors, supervisors and senior managers who take specific roles in production and operation of the Company consists of a base and a performance-based bonus. The Company ensures the overall compensations and benefits to employees are of competitiveness in the industry and market through fair and appropriate payments given the specific roles, duties and performances. 2. Directors and supervisors who do not hold full-time roles in the Company received fixed allowances annually. Costs for performance of director and/or supervisor duties are from the Company's annual funds of board of directors and/or funds of board of supervisors. |
| Actual payments to directors, supervisors, and senior managers | The renumeration to directors, supervisors and senior managers are paid according to their performance assessed under the Performance Review Management Procedures. In the reporting period, the actual payments to directors, supervisors and senior managers are consistent with the disclosure made by the Company. |
| Total renumeration received by directors, supervisors, and senior managers as of the end of the reporting period | 30,120,500 yuan |
(IV). Changes in directors, supervisors, and senior managers"√ Applicable" "□ Not applicable"
| Name | Title | Change | Reason for change |
| Duan Yong | Director | Resigned | Mr. Duan Yong resigned from the office of director and other roles in the Company on May 27, 2021 for job change. |
(V). Notes on penalties from securities regulators"□ Applicable" "√ Not applicable"
(VI). Others"□ Applicable" "√ Not applicable"V. Board of directors meetings held in the reporting period
| Session No. | Session date | Resolutions |
| 17th meeting of the 7th board of directors | 2021-02-09 | Proposals discussed and resolved: the Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary, the Proposal on the Management Procedures on Tongwei Co., Ltd. Employee Share Plan 2021-2023, the Proposal on Requesting the Shareholders Meeting to Authorize the Board of Directors to Deal with Issues Relating to Tongwei Co., Ltd. Employee Share Plan 2021-2023, the Proposal on Execution of the Strategic Cooperation Agreement with Jinko Solar Co., Ltd., |
| the Proposal on the Modification of the Articles of Association and the Subsequent Business Registration, and the Proposal on Holding the 1st Interim Shareholders Meeting 2021. | ||
| 18th meeting of the 7th board of directors | 2021-04-09 | Proposals discussed and resolved: 2020 Work Report of the Board of Directors, 2020 Work Report of the General Manager, 2020 Annual Report and its Summary, 2020 Financial Close Report, 2020 Profit Distribution Proposal, 2020 Working Report of Independent Directors, the Summary of the Audit Committee on Sichuan Huaxin (Group) Accounting Firm (Special General Partnership)'s Performing the 2020 Audit of the Company, the Proposal on Renewing the Engagement with the Accountant Firm, the 2020 Evaluation Report on the Company's Internal Controls, the 2020 Audit Report on the Company's Internal Controls, the Proposal on 2020 Provision for Asset Impairment and Scrap of Fixed Asset the Proposal on 2021 Application for Comprehensive Credit Line, the Proposal on the Company's Accepting Guarantees from and to Subsidiaries in 2021, the Proposal on the Company's Providing Guarantees to its Customers in 2021, the Proposal on Starting Bill Pool Service in 2021, the Proposal on Use of Short Surplus Funds for Wealth Management in 2021, the Proposal on Conducting Hedging Service in 2021,the Proposal on Daily Related-party Transactions Expected in 2021, the Special Report on the Storage and Actual Use of Funds Raised in 2020, the Proposal on Adjusting the Total Size of Some Projects Invested by the Raised Funds, the Shareholder Distribution Plan 2021-2023, the 2021 Q1 Report (full text), the Proposal on the Company’s Compliance with the Conditions for Issuing A-share Convertible Bonds, the Proposal on the Proposed Plan for the Company’s Public Issuing Convertible Bonds , the Proposal on the Feasibility Report on Use of Funds Raised via the Company’s Public Issuing A-share Convertible Bonds, the Rules on Meeting of A-share Convertible Bond Holders, the Proposal on Requesting the Shareholders Meeting to Authorize the Board of Directors to Deal Issues relating to the Company's Public Issuing Convertible Bonds, the Report on the Use of Funds Raised in the Previous Financing Activity, and the Proposal on Holding 2022 Annual Shareholders Meeting. |
| 19th meeting of the 7th board of directors | 2021-06-28 | Reviewed and approved the 2020 ESG Report of Tongwei Co., Ltd. |
| 20th meeting of the 7th board of directors | 2021-06-30 | Reviewed and approved the Proposal on Investing the 200,000 - ton High-purity Polysilicon Project in Leshan |
| 21st meeting of the 7th board of directors | 2021-08-16 | Reviewed and approved 2021 Semi-year Report and its Summary, the Special Report on the Storage and use of Funds Raised in in 1H 2021, and the Proposal on Change of Accounting Policies. |
| 22nd meeting of the 7th board of directors | 2021-10-26 | Reviewed and approved 2021 Q3 Report. |
| 23rd meeting of the 7th board of directors | 2021-12-10 | Reviewed and approved the Proposal on Use of Some Idle Funds for Temporary Supplement of Current Funds. |
VI. Performance of duties by directors(I). Attendances at board of directors meetings and shareholders meetings by directors
| Director Name | Independent director | Attendance at board of directors meetings | Attendance at shareholders meetings | |||||
| Number of board of directors meetings the director should have attended in the year | In person | Virtual | By proxy | Number of / | Absence from two consecutive meetings | Number of shareholders meeting the director has attended | ||
| Liu Hanyuan | No | 7 | 7 | 5 | 0 | 0 | No | 2 |
| Xie Yi | No | 7 | 7 | 5 | 0 | 0 | No | 2 |
| Yan Hu | No | 7 | 7 | 5 | 0 | 0 | No | 2 |
| Duan Yong | No | 2 | 2 | 1 | 0 | 0 | No | 2 |
| Wang Xiaohui | No | 7 | 7 | 6 | 0 | 0 | No | 0 |
| Ding Yi | No | 7 | 7 | 6 | 0 | 0 | No | 0 |
| Du Kunlun | Yes | 7 | 7 | 6 | 0 | 0 | No | 1 |
| Wang Jin | Yes | 7 | 7 | 6 | 0 | 0 | No | 0 |
| Fu Daiguo | Yes | 7 | 7 | 6 | 0 | 0 | No | 1 |
Note on absence from two consecutive meetings"□ Applicable" "√ Not applicable"
| Number of board of directors meetings held in the year | 7 |
| Number of physical meetings | 1 |
| Number of virtual meetings | 5 |
| Number of virtual and physical combined meetings | 1 |
(II). Director objections on issues of the Company"□ Applicable""√ Not applicable"
(III). Others"□ Applicable" "√ Not applicable"
VII. Committees under the board of directors"√Applicable" "□Not applicable"
(1).Members of committees under the board of directors
| Committee | Members |
| Audit Committee | Fu Daiguo, Du Kunlun, and Yan Hu |
| Nomination Committee | Xie Yi, Wan Jin, and Du Kunlun |
| Remuneration and Review Committee | Du Kunlun, Wang Jin, and Xie Yi |
| Strategy Committee | Xie Yi, Liu Hanyuan, Yan Hu, Wang Jin and Wang Xiaohui |
(2).Six meetings held by the Audit Committee in the Reporting Period
| Session date | Content | Important opinions and recommendations | Other information on performance of duties |
| 2021-02-19 | Discussed and reviewed Issues Concerned relating to the Work of 2020 Annual Report | 1. Based on the audit results over the past years, Tongwei Co., Ltd has been running in accordance with regulation with robust internal controls and adequate functioning of its internal audit and supervision system for effective risk prevention. 2. The 2020 Annual Report must be prepared in strict accordance with Standards on Annual Reports of Publicly Listed Company of CSRC, the Notice on 2020 Annual Reporting Disclosure by Companies Listed in the Main Board Market of the Shanghai Stock Exchange, and relevant memos to present the rule, accurate and complete information of the Company to investors. 3. Given the disclosure timeline, 2020 annual report and relevant materials of proposals to board of directors must be drafted before April 2, approved by the secretary of board of directors and the financial director, and then submitted to the Audit Committee, before submitting to the board of directors for discussion and approval. | Asked for the audit progress of the annual report, listened to the audit information from project managers of the accounting firm, emphasized the importance of external auditing, in particular audit discrepancies, long-term equity investments and impairments, revenue and accounts receivable, and related-party transactions, required that accountants responsible for annual report audit must conduct their work with carefulness and justice, and urged the firm to submit the audit report within the specified period. |
| 2021-03-31 | Considered the Letter of Communication with the Governance Level from Huaxin Accounting Firm | The Audit Committee raised no objection to matters listed by Huaxin Accounting Firm in the Letter. The following views were raised on key audit matters including asset impairment: 1. Determination of key audit matters should be subject to sufficient communications with the management in term of its judgement made in impairment reserve assessment in terms of the accuracy of provision for impairment reserve. 2. Asked the QC department of the accounting firm to perform full discussions on above matters regarding the execution of accounting standards. | Checked the auditing progress on annual report on the site. Emphasized on the need for a good ending job to submit the audit report by the specified time, and communicated with audits from the accounting firm regarding the audit performance and the actual conditions of the Company. |
| 2021-04-03 | 1. Considered the 2020 Financial Report Audited by Huaxin Accounting Firm 2. Considered the Summary Report on 2020 Audit Work by Huaxin Accounting Firm | 1. Passed the 2020 Financial Report Audited by Huaxin Accounting Firm. 2. Passed the Summary Report on 2020 Audit Work by Huaxin Accounting Firm. 3. Passed the Proposal on Renewing the Engagement with the Accounting Firm. | None. |
| 3. Considered the Proposal on Renewing the Engagement with the Accounting Firm 4. Considered the Proposal on Expected Daily Related-party Transactions in 2021 5. Considered the Proposal on 2020 Provision for Impairment Reserve 6. Considered the Special Report on Storage and Use of Funds Raised in 2020 7. Considered the 2020 Performance Report by Audit Committee | 4. Passed the Proposal on Expected Daily Related-party Transactions in 2021. 5. Passed the Proposal on 2020 Provision for Impairment Reserve. 6. Passed the Special Report on Storage and Use of Funds Raised in 2020 7. Passed the 2020 Performance Report by Audit Committee | ||
| 2021-08-06 | Considered the Progress Report on Works Relating to 2021 Semi-year Report | Passed the Progress Report on Works Relating to 2021 Semi-year Report | None. |
| 2021-10-11 | Considered the Progress Report on Works Relating to 2021 Q3 Report | Passed the Progress Report on Works Relating to 2021 Q3 Report | None. |
| 2021-12-28 | The situation and arrangement of 2021 annual report audit and internal control audit | Passed the plan of 2021 annual report audit | None. |
(3).Specific circumstances where objections were raised
"□ Applicable" "√ Not applicable"
VIII. Note on the board of supervisors’ identification of the Company risks"□ Applicable" "√ Not applicable"The board of supervisors did not raise any objection to matters supervised in the reporting period.
IX. Employees of the parent company and major subsidiaries at the end of the reporting period(I). Employees
| Number of active employees of the parent company | 1,730 |
| Number of active employees of major subsidiaries | 30,494 |
| Total employees | 32,224 |
| Number of retirees for whom the parent and major subsidiaries must bear relevant expenses | 72 |
| Profession structure | |
| Profession | Number of employees |
| Production | 18,837 |
| Sales | 3,850 |
| Technology | 5,732 |
| Finance | 647 |
| Administration | 3,158 |
| Total | 32,224 |
| Education structure | |
| Education background | Number of employees |
| Master or higher | 594 |
| Bachelor | 6,350 |
| Three-year college | 7,491 |
| Three-year college or lower | 17,789 |
| Total | 32,224 |
(II). Compensation policy"√ Applicable" "□ Not applicable"Upholding the principle of "externally competitive and internally fair", the Company has created adiverse compensation system with fairness, competition, win-win, incentive and lawfulness, that combinesincentive compensation with guaranteed compensation, explicit compensation with implicit compensation,and short-term compensation with long-term compensation. To keep a properly competitive compensationsystem, the Company conducts market research and compensation-cost analysis from time to time, andadjusts and optimizes the incentive policy according to value and workload of roles. The leverage role ofperformance-based compensation is used to fully motivate employees and increase the Company'sprofitability for the sustainable development of the Company.
(III). Training plan"√ Applicable" "□ Not applicable"
Human resources are an important driver for the Company’s sustained development; therefore, theCompany attaches high importance to selection, employment, development and retention of talents. In thereporting period, the Company ensured the effective use and rapid development of employees throughvarious incentive policies and growth programs, integrated high-quality education resources based on thedevelopment system represented by Tongwei Learning Center to gain outstanding operation models andmanagement approaches, and learned from advanced management experience and technologies for theefficient combination of employee development and use. To respond to diversified development needsfrom different levels, professions and work types, the Company has created a complete training systemcoordinating different business lines and subsidiaries. Also, the Company encourages employees toimprove themselves by providing financial supports for employees who take part in further education ortraining on professional skills.
(IV). Labor outsourcing"□ Applicable" "√ Not applicable"X. Proposal on profit distribution or capital surplus converted to share capital(I). Development, execution or adjustments of cash dividend policy"√ Applicable" "□ Not applicable"
The Company conducted the profit distribution in strict accordance with its dividend policy in thereporting period. The 2020 Profit Distribution Proposal considered at the 18th meeting of the 7th boardof directors on April 09, 2021 and approved at the 2020 annual shareholders meeting on May 07, 2021stated that based on the total 4,501,548,184 shares, a cash dividend of 2.41 yuan (including tax) per tenshares would be paid to all registered shareholders for a total cash distribution of 1,084,873,112.34 yuan.This plan was fully executed on May 21, 2021.The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board ofdirectors and the 2020 annual shareholders meeting specified that the Company preferred the cashdividend policy with minimum dividend payout ratio to ensure the execution of the profit distributionpolicy.
The 2021 Profit Distribution Proposal raised by the board of directors on April 22 stated that basedon the total 4,501,548,184 shares, a cash dividend of 9.12 yuan (including tax) per ten shares would bepaid to all registered shareholders for a total cash distribution of 4,105,411,943.81 yuan. This plan will besubmitted to the 2021 annual shareholders meeting 2021 for consideration.
(II). Special note on cash dividend policy"√ Applicable" "□ Not applicable"
| Compliance with provisions of the Articles of Association or resolutions of the shareholders meeting | "√ Yes" "□ No" |
| Dividend standards and payout ratio are clear | "√ Yes" "□ No" |
| Relevant decision-making procedures and mechanism are complete | "√ Yes" "□ No" |
| Independent directors performed their duties and played their role | "√ Yes" "□ No" |
| Middle and small shareholders had opportunities to fully express their views and needs with their legitimate rights and interests fully protected | "√ Yes" "□ No" |
(III). The Company should disclose the reasons and the purposes and plan of these undistributedprofit where the Company achieved profits and the profit attributable to shareholders of the parentcompany was positive, but no cash dividend proposal was raised"□ Applicable" "√ Not applicable"
XI. The information of share incentive plan, employee share plan and other employee incentivemeasures and their impacts(I). Where relevant incentive matters have been disclosed in interim announcements withoutfurther progress or change"□ Applicable" "√ Not applicable"
(II). Where relevant incentive matters were not disclosed in interim announcements or furtherprogress or change occurredShare incentive"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
Employee share plan"√ Applicable" "□ Not applicable"
1. The 2017 Employee Share Plan expired on January 5, 2021. The Company had sold the plannedshares according to the incentive plan to provide returns to employees given their performance review.
2. The Company passed the Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023and its Summary at the 17th meeting of the 7th board of directors on February 9, 2021 and the first interimshareholders meeting on February 25, 2021 to keep the incentive to employees, fully motivate theircreativity and to align the interests of shareholders, the Company and employees. The total funds plannedunder this Employee Share Plan are not more than 1,350 million yuan, and will be managed by an assetmanager through a trust/asset management product. The total units of the product are limited to 2,700million and the price per unit is 1 yuan. The ratio of preferred units to common units is not higher than1:1. The total preferred units are limited to 1,350 million and the total common units are limited to 1,350million. The planned duration of this Employee Share Plan is 36 months with shares purchased fromsecondary market. In the reporting period, the Employee Share Plan — “China Life Asset Management -Advantage Select 2110 Insurance Asset Management Product” and “China Life Asset Management -Advantage Select 2108 Insurance Asset Management Product” were created with stocks purchased in thesecondary market through public bidding and bulk trade. A total of 76,499,840 shares for 2,633,584,589yuan (34.43 yuan per share) were purchased, taking up 1.70% of the Company's share capital. These shareshave a locking period from May 21, 2021 to May 20, 2022.
Other incentive measures"□ Applicable" "√ Not applicable"
(III). Share incentives granted to directors and senior managers in the reporting period"□ Applicable" "√ Not applicable"
(IV). Evaluation mechanism for senior managers in the reporting period and the developmentand execution of incentive mechanism"√ Applicable" "□ Not applicable"
The board of directors has a Remuneration and Review Committee which is responsible fordeveloping the performance review criteria for senior managers and conducting the review. Remunerationto senior managers consists of base salary and performance-based bonus. The Remuneration and ReviewCommittee pays fair and appropriate salaries given the Company's performance, needs of job positions,duties and work performance to ensure the compensation and benefits of employees are competitive in themarket and industry.
XII. Development and implementation of internal controls in the reporting period"√ Applicable" "□ Not applicable"
Refer to the Internal Control Self-Assessment Report disclosed on http://www.sse.com.cn by theCompany on April 26, 2022.
Note on significant discrepancies in internal controls in the reporting period"□ Applicable" "√ Not applicable"
XIII. Management and control over subsidiaries in the reporting period"√ Applicable" "□ Not applicable"
As of the end of 2021, the Company had 263 subsidiaries including 253 domestic companies and 10overseas companies. The Company held shares directly in 82 subsidiaries and indirectly in 181subsidiaries.
It has completed management and control policies over subsidiaries. Regarding operation andbusiness control, the Company has clear strategic goals. With completed organizational structure andbusiness processes, it has effectively made subsidiaries organic parts for its overall strategy for synergiesin business operation and for the integration, creation and sharing of resources. Also, subsidiaries submitproduction and operation statements to the Company as required so that it gains an understanding of andcontrol over the operation and management of subsidiaries. Regarding financial control, the Company has
created a powerful financial control system consisting of clear policies and requirements on financialbudgeting and execution, funds with other parties, loans and guarantees. Subsidiaries have their financialaffairs managed in strict accordance with the Company's financial management requirements and policies.Regarding personnel management, the Company sends directors, supervisors and senior managers tosubsidiaries for which it is the controlling shareholder to effectively supervise them. At the same time, theCompany enhances the performance review on subsidiaries to better motivate their employees, drive theirdevelopment and ensure their overall operational targets are met.In the reporting period, the Company purchased the aquatic feed company and a part of the swinefeed company under Tech-Bank via cash and effectively integrated assets, organizations, businesses,personnel and funds to further increase the professionalism and scale of the feed business with an increasedmarket share and to strengthen its leading position in the industry. Further, to help with the smoothintegration with the new subsidiary with the Company, it set a Tech-Bank business area for whichmanagers from the Company were dispatched and increased the publicity activities in the new subsidiary.As of the end of the reporting period, the said new subsidiary was integrated under planned schedulewithout significant deviation.
XIV. Note on relevant information on internal control audit report"√ Applicable" "□ Not applicable"Sichuan Huaxin engaged by the Company has audited the Company's 2021 internal controls andissued a report with standard unqualified opinion, details of which are in the 2021 Internal Control AuditReport on Tongwei Co., Ltd. disclosed on http:www.sse.com.cn on April 26, 2022 by the Company.Whether the internal control audit report was disclosed: YesType of audit opinion: Standard unqualified opinion
XV. Correction of problems identified in self-check for the governance of listed companiesThe Company has performed a self-inspection subject to the Self-Checklist of Listed Companies andfound no issues to be corrected.
XVI. Others"□ Applicable" "√ Not applicable"
Section V. Environmental and Social Responsibility
I. Environmental information(I). Note on the environmental protection by companies falling into the key waste dischargeorganizations published by the environmental protection authority and their major subsidiaries"√ Applicable" "□ Not applicable"
1.Waste discharge
"√ Applicable" "□ Not applicable"In the reporting period, the Company strictly observed applicable environmental laws and regulationsin the construction and operation of environmental facilities, and wastewater, waste gas and solid wasteproduced were discharged under relevant standards for clean production. Relevant environmentalinformation is provided below:
(1) Polysilicon production in Yongxiang
① Major pollutants in the wastewater are COD, NH3-N and PH.
Discharge method: continuous and stable dischargeNumber of discharge outlets: 1Discharge standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.Discharge concentrations: COD 9.85 mg/l, NH3-N 0.778 mg/l and PH:7.75 all of which complied withthe standards.Approved annual discharge amount: No limits for COD and NH3-N.2021 total discharge amount: COD 4.98 tons and NH3-N 0.415 tons.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particlesEmission method: continuous and stable emissionNumber of emission outlets: 2Emission standards: Special emission limits in Table 3 of the Emission Standard of Air Pollutants forBoiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 150 mg/m? (EIA requirement is80 mg/m?) and particles ≤ 20 mg/m?.Emission concentrations: sulfur dioxide 0.377 mg/m?, nitrogen oxides 38.73 mg/m? and particles 1.093mg/m?, all of which complied with the standards.Approved annual emission amount: No limits for sulfur dioxide and particles; nitrogen oxides ≤ 53.1 tons.2021 total emission amount: sulfur dioxide 0.1274 ton; particles 0.2234 ton and nitrogen oxides 9.096tons, each of which was lower than the approved amount.
(2) Production of high-purity polysilicon in Yongxiang New Energy
① Major pollutants in the wastewater are COD, NH3-N and pH.
Discharge method: continuous and stable dischargeNumber of discharge outlets: 1Discharge standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.Discharge concentrations: COD 11.771 mg/l, NH3-N 2.07 mg/l and PH:7.358 all of which complied withthe standards.Approved annual discharge amount: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.2021 total discharge amount: COD 8.13 tons and NH3-N 1.48 tons, each of which was lower than theapproved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particlesEmission method: continuous and stable emissionNumber of emission outlets: 2Emission standards: Special emission limits in Table 3 of the Emission Standard of Air Pollutants forBoiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 150 mg/m? (EIA requirement is80 mg/m?) and particles ≤ 20 mg/m?.Emission concentrations: sulfur dioxide 0.67 mg/m?, nitrogen oxides 58.75 mg/m? and particles 7.5mg/m?, all of which complied with the standards.Approved annual emission amount: sulfur dioxide ≤ 26.98 tons, nitrogen oxides ≤ 76.04 tons, and particles≤ 19.19 tons.Thanks to the effective result of energy saving, electric boilers operated in most cases in 2021 while gas-fired boilers were seldom in use, which resulted in much lowered emissions.2021 total emission amount: sulfur dioxide 0.044 tons; nitrogen oxides 1.863 tons and particles 0.244 tons,each of which was lower than the approved amount.
(3) Production of high-purity crystalline silicon in Inner Mongolia Tongwei
① Major pollutants in the boiler smoke are sulfur dioxide, nitrogen oxides and particles;
② Major pollutants in smoke generated from hydrogen production: sulfur dioxide, nitrogen oxides andparticlesEmission method: continuous and stable emissionNumber of emission outlets: 4Emission standards on boiler smoke: emission limits for ne boilers in Table 2 of the Emission Standard ofAir Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 200 mg/m? andparticles ≤ 20 mg/m?.Emission standards on hydrogen production smoke: Air pollutant limits in Table 4 of the EmissionStandard of Pollutants for Petroleum Chemistry Industry (GB31571-2015) — sulfur dioxide ≤100 mg/m?,nitrogen oxides ≤ 180 mg/m? and particles ≤ 20 mg/m?.Emission concentrations in boiler smoke: sulfur dioxide 0.67 mg/m?, nitrogen oxides 52.94 mg/m? andparticles 6.16 mg/m?, all of which complied with the standards.Emission concentrations in smoke from hydrogen production: sulfur dioxide 1.58 mg/m?, nitrogen oxides
35.97 mg/m? and particles 4.08 mg/m?, all of which complied with the standards.Approved annual emission amount: sulfur dioxide ≤ 1.459 tons, nitrogen oxides ≤ 67.36 tons.2021 total emission amount: sulfur dioxide 0.21 tons; nitrogen oxides 5.61 tons, each of which was lowerthan the approved amount.
(4) PVC and sodium hydroxide production in Yongxiang
① Major pollutants in the wastewater are COD, NH3-N and PH.
Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: the Emission Standard of Pollutants for Caustic Alkali and Polyvinyl ChlorideIndustry (GB15581-2016) — COD≤60 mg/l, NH3-N ≤15 mg/l and 6≤pH≤9.Discharge concentrations: COD 17.52 mg/l, NH3-N 6.29 mg/l and PH 6 - 9, all of which complied withthe standards.Approved annual discharge amount: COD ≤ 39 tons and NH3-N ≤ 9.75 tons.2021 total discharge amount: COD 3.85 tons and NH3-N 0.89 tons, each of which was lower than theapproved amount.
② Heavy metal is mercury (II) chloride which is mainly used as the catalyst for vinyl chloride synthesis,and coded as HW29 in National Directory of Hazardous Substances, must be disposed centrally toqualified suppliers for treatment and recycle.
(5) Cement production in Yongxiang New Materials
① Major pollutants in the waste gas are dust, SO
and NOX.Emission method: continuous and stable emissionNumber of emission outlets: 2Emission standards: Emission Standard of Air Pollutants for Cement Industry (GB4915-2013). Dust ≤ 10mg/m?; SO
≤ 35 mg/m?; NOx ≤ 100 mg/m?Emission concentrations: average concentration of dust was 4.95mg/m? in the kiln head, 3.38 mg/m? inthe kiln tail; average concentration of SO
was 12.81 mg/m?; average concentration of NOX was 71.76mg/m?, all of which met the standards.Approved annual emission amount: dust ≤ 51.60 tons, SO
≤ 150 tons, and NOx ≤ 480 tons.2021 total emission amount: dust from kiln head 10.24 tons, dust from kiln tail 8.47 tons, SO
32.17 tons
and NOx 191.23 tons. All of them were lower than the respective approved amount.
② Major pollutants in the wastewater are COD and NH3-N.
Discharge method: continuous and stable dischargeNumber of discharge outlets: 1Discharge standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996)— COD ≤ 100 mg/l; NH3-N ≤ 15m g/l;Discharge concentrations: COD 14.64 mg/l and NH3-N 0.23 mg/l. Each of them met the standards.Approved annual discharge amount: No limits for COD and NH3-N.2021 total discharge amount: COD 0.70 ton and NH3-N 0.01 ton.
(6) Production of solar cells in Chengdu:
① Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia,particles and volatile organic compounds (VOC)Emission method: continuous and stable emissionNumber of emission outlets: 30Emission standards: Ammonia subject to limit in Table 2 of Emission Standards for Odor Pollutants(GB14554-1993); VOC subject to industrial standards for electronic industry set in Table 3 of SichuanControl Standards for Volatile Organic Compounds (DB51/2377-2017); other pollutants subject to limitsfor solar cells in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-2013).Ammonia ≤ 14 kg/h; VOC ≤60 mg/m?; fluoride ≤3 mg/m?; chlorine ≤5 mg/m?; particles ≤30 mg/m?;hydrogen chloride ≤5 mg/m?; and NOX ≤ 30 mg/m?.Emission concentrations: fluoride 1.38 mg/m?; chlorine 1.58 mg/m?; particles 6.1 mg/m?; NOx 6.38 mg/m?;VOC 1.84 mg/m?; hydrogen chloride 0.2 mg/m?; ammonia 0.259 kg/h, all of which met the standards.2021 total emission amount: Nitrogen oxides 49.89 tons and NH3-N 11.11 tons, each of which was lowerthan the approved amount.
② Major pollutants in the wastewater are fluoride, CODcr, NH3-N and pH.
Discharge method: continuous and stable dischargeNumber of discharge outlets: 2Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard ofPollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/l; NH3-N ≤ 30 mg/l; pH 6 - 9; fluoride≤ 8 mg/l.Discharge concentrations: CODcr 22.81 ml/l; NH3-N 3.74 mg/l; pH 7.59 and fluoride 5.35 mg/l. Each ofthem met the standards.
Approved annual discharge amount: COD ≤ 1,109.8 tons and NH3-N ≤ 221.9 tons.2021 total discharge amount: CODcr 164.12 tons and NH3-N 23.52 tons, each of which was lower thanthe approved amount.
(7) Production of solar cells in Meishan:
① Major pollutants in the waste gas are chlorine, particles, VOC and fluoride.Emission method: continuous and stable emissionNumber of emission outlets: 15Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standardof Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m?, fluoride ≤ 3 mg/m?,chlorine ≤ 5 mg/m?; particles ≤ 30 mg/m?; hydrogen chloride ≤ 5 mg/m?; Odor Pollutants (GB14554-1993)—ammonia ≤ 14 mg/m? (from industrial waste gas); ammonia ≤ 20 mg/m? (waste gas from the wastewaterstation); hydrogen sulfide ≤ 0.9 kg/h; and odor gas concentration 6,000; Sichuan Control Standards forVolatile Organic Compounds (DB51/2377-2017) — VOC ≤ 60 mg/m?; grade two limits in Table 2 ofIntegrated Standards for Emission of Air Pollutants (GB16297-1996) — sulfuric acid mist ≤ 60 mg/m?.Emission concentrations: fluoride 2.06 mg/m?; chlorine 1.39 mg/m?; particles 10.76 mg/m?; hydrogenchloride 0.59 mg/m?; VOC 0.63 mg/m?; hydrogen chloride 16mg/m?; sulfuric acid mist not detected;ammonia 0.21 kg/h (rate), ozone 90.25, all of which met the standards.2021 total emission amount: Nitrogen oxides 0.737 ton and VOC 2.19 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.Discharge method: continuous and stable dischargeNumber of discharge outlets: 3Discharge standards: production wastewater is subject to the indirect discharge standards in Table 2 ofEmission Standard of Pollutants for Battery Industry (GB30484-2013), and all pollutant factors andchlorides are subject to standards for designed inlet water quality of first zone of the wastewater treatmentplant in Xiuwen Town, Meishan Industrial Park; general wastewater is subject to standards for designedinlet water of the artificial wetland in second zone of the said wastewater treatment plant; domesticwastewater is subject to the grade three standards in Table 4 of Integrated Wastewater Discharge Standard(GB8978-1996), the grade B limits in Table 1 of Wastewater Quality Standards for Discharge to MunicipalSewers (GB/T31962-2015) and standards for designed inlet water of the second zone of the saidwastewater treatment plant;Wastewater discharge concentrations: COD 34.41 mg/l, NH3-N 13.35 mg/l, PH 7.6, total nitrogen
22.55mg/l, and fluoride 5.9 mg/l all of which met the standards.
2021 total discharge amount: COD was 118.10 tons and NH3-N 45.81 tons.
(8) Production of solar cells in Hefei:
① Major pollutants in the waste gas are chlorine, particles, nitrogen oxides, hydrogen chloride, VOC andfluoride.Emission method: continuous and stable emissionNumber of emission outlets: 31Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standardof Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m?, fluoride ≤ 3 mg/m?,chlorine ≤ 5 mg/m?; particles ≤ 30 mg/m?; hydrogen chloride ≤ 5 mg/m?; VOCs ≤ 50 mg/m?subject toTianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).Waste gas emission concentrations: nitrogen oxides 11.94 mg/m?; fluoride 1.08 mg/m?; chlorine 0.38mg/m?; particles 8.48 mg/m?; hydrogen chloride 1.58 mg/m?; VOCs 4.65mg /m?, all of which met thestandards.2021 total emission amount: nitrogen oxides 14.881 tons and VOCs 7.866 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.Discharge method: continuous and stable dischargeNumber of discharge outlets: 1Discharge standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants forBattery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD≤ 150 mg/l; NH3-N ≤ 30 mg/l; 6 ≤ pH ≤ 9; fluoride ≤ 8 mg/l.Wastewater discharge concentrations: COD 87.6 mg/l, NH3-N 10.5 mg/l, PH 7.75, total nitrogen 21.7mg/l,and fluoride 3.87 mg/l all of which met the standards.2021 total discharge amount: COD 140.13 tons and NH3-N 18.016 tons
(9) Production of solar cells in Anhui:
① Major pollutants in the waste gas are chlorine, particles, nitrogen oxides, hydrogen chloride, VOC andfluoride.Emission method: continuous and stable emission.Number of emission outlets: 12Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standardof Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m?, fluoride ≤ 3 mg/m?,chlorine ≤ 5 mg/m?; particles ≤ 30 mg/m?; hydrogen chloride ≤ 5 mg/m?; VOCs ≤ 50 mg/m? subject toTianjin Emission Standards for Volatile Organic Compounds from Industrial Enterprises (DB16297-2014).Waste gas emission concentrations: nitrogen oxides 27 mg/m?; fluoride 0.53 mg/m?; chlorine 0.9 mg/m?;particles 9.92 mg/m?; hydrogen chloride 2.07 mg/m?; VOCs 6.25mg /m?, all of which met the standards.2021 total emission amount: nitrogen oxides 0.206 ton and VOCs 13.314 tons.
② Major pollutants in the wastewater are COD, NH3-N, pH, total nitrogen and fluoride.Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants forBattery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD≤ 150 mg/l; NH3-N ≤ 30 mg/l; 6 ≤ pH ≤ 9; fluoride ≤ 8 mg/l.Wastewater discharge concentrations: COD 32.05 mg/l, NH3-N 9.46 mg/l, PH 7.14, total nitrogen 22.25mg/l, and fluoride 3.25 mg/l. Each of them met the standards.2021 total discharge amount: COD 58.549 tons and NH3-N 17.968 tons.
(10) Production of solar cells in Jintang:
① Major pollutants in the waste gas are hydrogen chloride, hydrogen chloride, chlorine, ammonia,particles, and volatile organic compounds (VOC);Typical pollutant(s): fluoride.Emission method: continuous and stable emission.Number of emission outlets: 9.Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standardof Pollutants for Battery Industry (GB30484-2013) — fluoride ≤ 3 mg/m?, chlorine ≤ 5 mg/m?; particles≤ 30 mg/m?; hydrogen chloride ≤ 5 mg/m?; nitrogen oxides ≤ 30 mg/m?. Ammonia ≤20kg/h, subject tolimit in Table 2 of Emission Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60mg/m? subjectto industrial standards for electronic industry set in Table 3 of Sichuan Control Standards for VolatileOrganic Compounds (DB51/2377-2017). Emission concentrations: fluoride 0.0096 mg/m? (not detectedin most cases throughout the year); chlorine 1.54 mg/m?; particles 12.8 mg/m?; NOx 10.3 mg/m?; VOC
1.7 mg/m?; hydrogen chloride 0.6 mg/m?; ammonia 2.22 kg/h. Each of them met the standards.Approved annual emission amount: Nitrogen oxides ≤12 tons, and VOCs ≤12.1 tons.2021 total emission amount: Nitrogen oxides 11.48 tons and VOCs 2.73 tons. All of them were lower thanthe respective approved amount.
② Major pollutants in the wastewater are pH, COD, NH3-N and fluoride.
Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: Indirect discharge standards in Table 2 of Emission Standard of Pollutants for BatteryIndustry (GB30484-2013) — 6≤pH≤9; COD ≤ 150 mg/l; NH3-N ≤ 30 mg/l; fluoride ≤ 8 mg/l. Dischargeconcentrations: COD 37.4 ml/l; NH3-N 6.96 mg/l; pH 7.2-7.5 and fluoride 3.58 mg/l. Each of them metthe standards.Approved annual discharge amount: COD ≤ 509.9 tons and NH3-N ≤ 102 tons.2021 total discharge amount: COD 41.92 tons and NH3-N 7.81 tons; each of which was lower than theapproved amount.
(11) Production of solar cells in Tonghe:
① Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, ammonia, particles andvolatile organic compounds (VOC).Emission method: continuous and stable emission.Number of emission outlets: 18Emission standards: For solar cell projects, ammonia ≤ 14 kg/h subject to limit in Table 2 of EmissionStandards for Odor Pollutants (GB14554-1993); VOCs ≤ 60 mg/m? subject to industrial standards forelectronic industry set in Table 3 of Sichuan Control Standards for Volatile Organic Compounds(DB51/2377-2017); other pollutants subject to limits for solar cells in Table 5 of Emission Standard of
Pollutants for Battery Industry (GB30484-2013): fluoride ≤3 mg/m?, chlorine ≤5 mg/m?, particles ≤30mg/m? and hydrogen chloride ≤5 mg/m?. For wafer cutting projects, particles ≤ 120 mg/m? subject to gradetwo limit in Integrated Standards for Emission of Air Pollutants (GB16297-1996), VOCs ≤ 60 mg/m?subject to industrial standards for electronic industry set in Table 3 of Sichuan Control Standards forVolatile Organic Compounds (DB51/2377-2017).Emission concentrations: fluoride 0.94 mg/m?; chlorine 0.32 mg/m?; particles 9.5 mg/m?; VOCs 0.64mg/m?; hydrogen chloride 0.64 mg/m?; ammonia 0.007 kg/h, all of which met the standards.Approved annual emission amount: fluoride ≤ 2.08 tons, VOCs ≤ 39.904 tons and particles ≤ 8.713 tons.2021 total emission amount: fluoride 0.16 ton, VOCs 0.045 ton and particles 0.22 ton.
② Major pollutants in the wastewater are CODcr, SS, pH, fluoride and TOC.
Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard ofPollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/L; SS ≤ 140; pH 6 - 9; fluoride ≤ 8mg/l. Discharge standards for materials dedicated to electronic industry in Table 1 of Discharge Standardof Water Pollution for Electronic Industry (GB 39731-2020): TOC ≤ 200 mg/l.Annual discharge concentrations throughout the year: CODcr 104 mg/l, pH 6.8, fluoride 3.46 mg/l, TOC
9.6 mgl, all of which met the standards.
Approved annual discharge amount: CODcr ≤ 1,327.37 tons and fluoride ≤ 39.2 tons.2021 total discharge amount: CODcr 9.21 tons and fluoride 0.31 ton, each of which was lower than theapproved amount.
(12) Production in Chengdu Ronglai Tongwei Feed:
① Major pollutants in the wastewater are COD, NH3-N and total nitrogen.
Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: COD ≤ 500 mg/l, NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject toWastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015).Discharge concentrations: COD was 20 mg/l and NH3-N 12.5 mg/l; all of which met the standards.Approved annual discharge amount: COD ≤ 0.6 ton and NH3-N ≤ 0.06 ton.2021 total discharge amount: COD was 0.043 ton and NH3-N 0.027 ton.
② Major pollutants in the waste gas are particles;
Emission method: continuous and stable emission.Number of emission outlets: 3Emission standards: particles ≤ 120 mg/m? subject to Integrated Standards for Emission of Air Pollutants(GB16297-1996).Emission concentrations : particles 7.71 mg/m?.Approved annual emission amount: particles 1.29 tons.2021 total emission amount: particles 0.9 ton, lower than the approved amount.
(13) Production in Shashi Tongwei Feed:
① Major pollutants in the wastewater are COD, NH3-N and total nitrogen.
Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: COD ≤ 500 mg/l, NH3-N ≤ 45 mg/l and total nitrogen ≤ 70 mg/l subject toWastewater Quality Standards for Discharge to Municipal Sewers (GB/T31962-2015);Discharge concentrations: COD 60mg/ l: NH3-N 5 mg/l and total nitrogen 15 mg/l; all of which met thestandards.Approved annual discharge amount: COD 0.744 ton, NH3-N 0.062 ton and total nitrogen 0.186 ton.2021 total discharge amount: COD 0.22 ton, NH3-N 0.019 ton and total nitrogen 0.056 ton.
(14) Chunyuan Food Company:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,total phosphorus and total nitrogen.Discharge method: intermittent discharge.Number of discharge outlets: 1Discharge standards: grade three limits for livestock processing in Table 3 of Discharge Standard of WaterPollutants for Meat Packing Industry (GD13457-1992) — COD 500 mg/l, no limit on NH3-N, PH 6.0-
8.5, SS 400 mg/l, BOD 500 mg/l, animal fat and vegetable oils 60 mg/l, no limit on total phosphorus and
no limit on total nitrogen.Discharge concentrations: COD 18 mg/l, NH3-N 9.53 mg/l PH 7.5, SS 12 mg/l, BOD 18 mg/l, animal fatand vegetable oils 0.16 mg/l, total phosphorus 2.91 mg/l and total nitrogen 12 mg/l, all of which met thestandards.Approved annual discharge amount: COD 357.5 tons, no limits on other pollutants.2021 total discharge amount: COD 9.66 tons, lower than the approved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particlesEmission method: continuous and stable emission.Number of emission outlets: 1Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu, and random waste gasemission at facility boundaries is subject to new construction and expansion standards of grade two inTable 1 of Emission Standards for Odor Pollutants (GB14554-93). Odor <10 mg/m? (limit to 20 mg/m?),hydrogen sulfide 0.005 mg/m? (limit to 0.06 mg/m?), ammonia 0.065 mg/m? (limit to 1.5 mg/m?).Approved annual emission amount: No limits for sulfur dioxide, nitrogen oxides and particles.
(15) Chengdu Xintaifeng Agriculture Development Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,total phosphorus and total nitrogen.Discharge method: intermittent discharge.Number of discharge outlets: 1.Discharge standards: grade three limits for poultry slaughter in Table 3 of Discharge Standard of WaterPollutants for Meat Packing Industry (GB13457-92) — COD 500 mg/l, no limit on NH3-N, Ph 6.0-8.5,SS 300 mg/l, BOD 250 mg/l, animal fat and vegetable oils 50 mg/l, no limit on total phosphorus and nolimit on total nitrogen.Discharge concentrations: COD 39 mg/l, NH3-N 1.09 mg/l: PH7.21, SS 8 mg/L, BOD 12.2 mg/l, animalfat and vegetable oils 1.75 mg/l, total phosphorus 7.26 mg/l and total nitrogen 48.7 mg/l, all of which metthe standards.Approved annual discharge amount: COD 306 tons, no limits on other pollutants.2021 total discharge amount: COD 3.016 tons, lower than the approved
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particlesEmission method: continuous and stable emission.Number of emission outlets: 1Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu.Boilers have been replaced with central heating; therefore, waste gas was not monitored. The wastedischarge permit only requires self-monitoring of odor concentration at facility boundaries, ammoniaconcentration at facility boundaries and hydrogen sulfide concentration once per half a year. Randomwaste gas emission at facility boundaries is subject to new construction and expansion standards of gradetwo in Table 1 of Emission Standards for Odor Pollutants (GB14554-93).Odor 10 mg/m? (limit to 20 mg/m?), hydrogen sulfide 0.01 mg/m? (limit to 0.06 mg/m?), ammonia 0.02mg/m? (limit to 1.5 mg/m?).Approved annual emission amount: No limits for sulfur dioxide, nitrogen oxides and particles.
(16) Hai’nan Aquatic Products:
Major pollutants in the wastewater are COD, NH3-N, PH, total phosphorus and total nitrogen.Discharge method: continuous and stable discharge.Number of discharge outlets: 1Discharge standards: Standards of Connection to Wastewater Network of Old Downtown WastewaterTreatment Plant (West Area): PH 6 - 9; COD ≤ 500 mg/l; NH3-N ≤ 40 mg/l; SS ≦ 400 mg/L; totalnitrogen ≦ 40 mg/l; total phosphorus ≦ 6 mg/l and BOD ≦300 mg/l.Discharge concentrations: COD 39 mg/l, NH3-N 6.9 mg/l, total nitrogen 66.4 mg/l, total phosphorus 2.12mg/l, all of which met the standards.Approved annual discharge amount: No limits for COD, NH3-N, SS, total nitrogen, and total phosphorus.2021 total discharge amount: COD 21.46 tons, NH3-N 3.8 tons, total phosphorus 1.17 tons and totalnitrogen 36.54 tons.
2.Construction and operation of pollution control facilities
"√ Applicable" "□ Not applicable"
The pollution control facilities of key pollutant discharge sites of the Company operated normallyin the reporting period with all wastes treated subject to standards before being discharged. The detailsare as below:
Yongxiang:
(1) Wastewater control facilities include domestic wastewater treatment device, wastewater treatmentstation, high - salinity wastewater condensation device, all of which operated normally;
(2) Waste gas control facilities include sprinkler system for process-generated waste gas, and dust removalsystem, all of which operated normally;
(3) Solid-waste facilities include slag shed and temporary storage room of hazardous wastes, all of whichwere managed subject to environmental protection requirements.
(4) Noise control facilities include mufflers and vibration absorbers for noise-generating equipment, andmufflers set for vent ports, all of which operated normally.Tongwei Solar:
(1) Wastewater control facilities include domestic wastewater treatment device, multi-stagephysiochemical + biochemical pre-treatment + two stage A/O wastewater treatment system, all of whichoperated normally;
(2) Waste gas control facilities include active carbon + low-temperature plasma treatment system,reduction-based scrubber, acid-alkali scrubber, and combustion chamber, all of which operated normally.Agriculture and Animal Husbandry:
(1) Wastewater control facilities include the domestic septic-tank. Domestic wastewater pre-treated by theseptic tank, and sent to the municipal wastewater treatment plant via the municipal wastewater networkfor centralized treatment, with the tail water meeting the Grade One Type A standards in DischargeStandard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) discharged. In thereporting period, the facility operated properly.
(2) Waste gas control facilities include the pulse-jet dust collector. The dust generated in feeding, crushingand packing steps in the feed production process is collected by the pulse-jet just collector and thenremoved by a draught fan. In the reporting period, the facility operated properly.
3.Environmental impact assessments and other administrative permits on construction projects"√ Applicable" "□ Not applicable"Yongxiang:
(1) The approval from Ecology Bureau of Baotou on the environmental impact assessment report on InnerMongolia Tongwei Phase II 50,000 - ton High-purity Polysilicon Project was obtained on June 18, 2021(Bao Huan Guan Zi [2021] No. 76).
(2) The Administrative Permit for Construction Project from Ecology Bureau of Baoshan on theenvironmental impact assessment report on the Hydropower and High-purity Polysilicon-integrated GreenEnergy Project of Yunnan Tongwei High-purity Crystalline Silicon Company was obtained on July 30,2021 (Bao Huan Zhun Zi (2021) No. 27).
(3) The approval from Ecology Bureau of Leshan on the 15 GW Monocrystalline Rod Pulling and CuttingProject of Sichuan Yongxiang PV Technology was obtained on April 23, 2021 (Wu Huan Shen Pi [2021]No.8).
(4) The reply letter from Ecology Bureau of Leshan on the change report for the Change of ManufacturingRenovation Project from Phase II 45,000-ton High-purity Polysilicon to Phase II High-Purity Polysiliconwas obtained on May 6, 2021 (Leshi Huan Han [2021] No.65).
(5) The approval from Ecology Bureau of Wutongqiao, Leshan on the Ultra-low Emission RenovationProject for the Rotary Kiln Smoke of Yongxiang New Materials was obtained on December 31, 2020 (WuHuan Shen Pi [2020] No. 29), and the project was completed and accepted by experts on March 23, 2021.
(6) The approval from Ecology Bureau of Wutongqiao, Leshan on the Renovation Project for CommercialConcrete Capacity Expansion by 800,000 m
and Overall Packaging of the Production Line of YongxiangNew Materials was obtained on November 11, 2020 (Wu Huan Shen Pi [2020] No. 28), and the projectwas completed and accepted by experts on December 12, 2021.Tongwei Solar:
(1) The approval from Ecology Bureau of Chengdu on the environmental impact assessment report on theSmart Factory based on the Coordinated Network of High-efficiency Crystalline Silicon Solar Cells ofTonghe New Energy (Jintang) Co., Ltd. was obtained on July 1, 2021 (Cheng Huan Cheng Nuo HuanPing Shen (2021) No. 19).
(2) The approval from Ecology Bureau of Chengdu on the environmental impact assessment report on theConstruction Project of PV-oriented Monocrystalline Silicon Wafers of Tonghe New Energy (Jintang)Co., Ltd. was obtained on November 2, 2021 (Cheng Huan Shen Ping (2021) No. 73).
(3) Tonghe New Energy (Jintang) Co., Ltd. obtained the Pollutant Discharge Permit(No.91510121MA662CJD4R001U) from Ecology Bureau of Chengdu on December 13, 2021.
4.Environmental emergency response plan
"√ Applicable" "□ Not applicable"
In order to prevent and reduce environmental events, standardize the emergency management andemergency response procedures of the Company for environmental emergencies, establish an emergencywork mechanism that follows central commands, takes responsibilities at different levels and acts swiftly,carry out emergency rescue work in a timely and effective manner, and form a coordinated and efficientenvironmental pollution emergency response system with strong prevention actions, orderly commands,the Company and its subsidiaries have formulated emergency response plans for emergency events andhave the plans registered in local ecology bureaus. Registration numbers:
(1) Environmental Emergency Response Plan of Sichuan Yongxiang New Energy Co., Ltd. (511112-2019-008-H);
(2) Environmental Emergency Response Plan of Sichuan Yongxiang Polysilicon Co., Ltd. (511112-2021-020-H);
(3) Environmental Emergency Response Plan of Yongxiang Co., Ltd. (511112-2021-034-H);
(4) Environmental Emergency Response Plan of Sichuan Yongxiang New Materials Co., Ltd. (511112—2019—031-M);
(5) Environmental Emergency Response Plan of Inner Mongolia Tongwei High-purity Crystalline SiliconCompany Ltd. (150203-2021-048-H);
(6) Environmental Emergency Response Plan of East Factory of Tongwei Solar (Chengdu) Co., Ltd.(510122-2020-875-M);
(7) Environmental Emergency Response Plan for the Project of Application of Homemade IntelligentEquipment (System) from High-efficiency Crystalline Silicon Solar Cells with an Annual Capacity of 7.5GW of Tongwei Solar (Meishan) Co., Ltd. (51140020200031-L);
(8) Environmental Emergency Response Plan of Tongwei Solar (Hefei) Co., Ltd. (340105-2019-013-M);
(9) Environmental Emergency Response Plan of Tongwei Solar (Anhui) Co., Ltd. (340105-2019-026-M);
(10) Environmental Emergency Response Plan of Tongwei Solar (Jintang) Co., Ltd. (510121-2021-311-L);
(11) Environmental Emergency Response Plan of Chengdu Ronglai Tongwei Feed Co., Ltd. (510183-2019-089-L);
(12) Environmental Emergency Response Plan of Chunyuan Food Co., Ltd. (5101893-2020-096-L).
5.Environmental self-monitoring plan
"√ Applicable" "□ Not applicable"
The Company and its subsidiaries have developed annual environmental monitoring plans withtechnicians in safety and environment protection and advanced environmental testing instruments in place.Business companies engaged in polysilicon and solar energy have separate safety and environmentdepartments. Online waste gas monitoring systems are set at emission outlets of boilers and cement kilnsand at main wastewater discharge outlets; online wastewater testing devices are installed at wastewaterdischarge outlets to detect pollutants like COD, NH3-N and PH; online waste gas testing devices are setat emission outlets of gas-fired boilers and cement kilns to detect pollutants such as SO
, NOX andparticles. These online monitoring instruments are connected to local environmental authorities so that alldata are sent to the pollution source monitoring systems of authorities in a real-time manner. At the sametime, the Company has a manual monitoring policy which requires that subsidiaries must monitorwastewater, waste gas and facility-boundary noise on a quarterly basis as required by environmentalimpact assessment reports and pollutant discharge permits, and engaged third parties to provide relevanttests and test reports.
6.Administrative penalties due to environmental problems in the reporting period"□ Applicable" "√ Not applicable"
7.Other environmental information that should be disclosed
"□ Applicable" "√ Not applicable"
(II). Note on environmental protection by companies other than key pollutant discharge units"√ Applicable" "□ Not applicable"
1. Administrative penalties due to environmental problems
"√ Applicable" "□ Not applicable"Wuxi Tongwei, Tianjin Tongwei and Hai’nan Tongwei were fined for the concentration of facility-boundary odor exceeding the limit. These are not significant penalties for environmental pollution. Allcorrective actions were completed in the reporting period.
2. Other environmental disclosure with reference to key pollutant discharge units"√ Applicable" "□ Not applicable"
Companies other than key pollutant discharge units are mainly feed producers. Feed industry is alow-pollution sector. The pollutants generated in feed production are waste gas with a little wastewater,solid waste and noise. Pollution control measures are as below:
(1) Waste gas control
The waste gas generated in feed production mainly consists of dust and exhaust of high temperature,high humidity and high dust, which is treated by cyclone dust collector and dust collection bags, thentreated by sprinkler-based oxidation equipment before emitted.
(2) Wastewater control
No wastewater or little wastewater is generated in feed production. The wastewater is mainly fromthe sprinkler system of environmental equipment. This wastewater is processed by the AAO Process andcirculated, which will not cause secondary pollution to environment. Domestic wastewater generated byemployees is pre-treated by the septic tank, and sent to the municipal wastewater treatment plant via themunicipal wastewater network for centralized treatment, with the tail water meeting the Grade One TypeA standards in Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) discharged. No pollution will be caused.
(3) Solid waste control
Common types of solid waste generated in feed production are general solid waste and hazardoussolid waste. General type is periodically removed and transported by local environmental and healthauthorities to landfills. Hazardous type is stored in a dedicated temporary room and sent to qualified partiesperiodically for further treatment.
(4) Noise control
Noise producers in feed production mainly include crushers, mixers, draught fans, etc. The Companyuses low-noise equipment and has them arranged properly so that noise attenuates to the largest extentover distance. High-noise equipment is enclosed with noise absorbing walls.
The Company and its subsidiaries have been strengthening the procedure-based environmentalprotection with significant effect. No significant environmental event or pollution occurred in the reportingperiod.
3. Reason for non-disclosure of other environmental information
"□ Applicable" "√ Not applicable"
(III). Information pertaining to ecologic protection, pollution control and performance ofenvironmental responsibility"√ Applicable" "□ Not applicable"
The Company fully complies with environmental protection laws and regulations including theEnvironmental Protection Law of the People’s Republic of China, Law of the People's Republic of Chinaon the Prevention and Control of Atmospheric Pollution, Law of the People's Republic of China onPrevention and Control of Water Pollution, and Standard for Pollution Control on Hazardous WasteStorage and developed and implemented many internal environmental management policies.
Regarding the prevention and control of air pollution, the Company takes active measures in wastegas governance and control the pollution of typical pollutants in strict accordance with national and localenvironmental standards. Regarding wastewater treatment, the Company standardizes the dischargeprocedures for domestic and production wastewater, keeps optimizing and upgrading the treatmenttechniques and devices for wastewater to effectively enhance its wastewater treatment capabilities andtreatment quality. Regarding the comprehensive use of waste, the Company advances the reuse of waste,standardizes the disposal of solid waste and ensure the safe transfer and effective monitoring of solid wastefor prevention of solid waste pollution. Regarding feed production and processing, with strong sense ofresponsibility and of mission, the Company exerts fundamental efforts into the governance feedproduction and processing environment, to eliminate complaints for odor in production processes and toimprove the environmental quality. As an industrial leader, it tries every effort into waste gas control,environmental protection preparation and project, odor governance and obtain all environmental permits.For this, the Company has developed dozens of environmental management policies and ensures the greatperformance of everyday environmental management work. What is more, the Company increases EHSpersonnel, advances the development of environmental protection standards, and spares no effort intodeveloping new environmental technologies with increases investments, to play its own role in creating abeautiful environment.
(IV). Actions for reducing carbon emission in the reporting period and their effect"√ Applicable" "□ Not applicable"
The severe climate change is a common challenge for the mankind. The Chinese government supportsthe Paris Agreement with great efforts and advances international cooperation in climate change response.It specified the 3060 Dual-Carbon goal at the 75th UN General Assembly — carbon peak by 2030 andcarbon neutral by 2060. As a representative company in PV, agriculture and animal husbandry, Tongweiactively responds to relevant policies of the Chinese government in climate change by establishing anenergy supply system matching its own energy consumption, taking the “dual development” path of greenenergy and green agriculture, exercising the green, low carbon and circular economy, upgradingproduction processes and optimizing industrial structure to drive the health and sustainable developmentof PV industry. This ensures its contribution to the country’s transformation of energy structure and therealization of the carbon peak and carbon neutral goal. At the end of 2021, the Company set an EnergyManagement Committee and Sustainable Development Work Group responsible for energy consumptioncontrol and emission reduction.
In emission management, the Company has increased efforts by establishing a two-level systemconsisting of the head office and each business to ensure the performance of carbon reductionresponsibility. In addition to full implementation of the Guiding Opinions of the Ministry of Ecology onCoordinating and Strengthening the Work Relating to Climate Change and Ecological EnvironmentalProtection, the Company took the lead in starting the carbon inventory work in 2017 to systemicallyanalyze the greenhouse gas emission in an intuitive and quantitative manner. Also, an Advancing WorkGroup on the emission reduction for carbon neutral was formed to take charge of the creation of the cleanenergy supply system, as well as the overall planning, direction and objectives for carbon reduction andcarbon neutral work. The Advancing Work Group has an Execution Group responsible for liaising withgovernmental agencies, preparing documents, management of carbon neutral work, and schemes fordevelopment and construction of PV powerplants. Under the leadership of the Advancing Work Group,Yongxiang has set a Carbon Asset Management Department for implementing the carbon neutral workplan of Yongxiang to ensure the carbon neutral goal is achieved on time. Additionally, the Company takesphases actions to complete its overall work planning, direction and objectives for carbon reduction,enhances carbon emission management, and upgrades its clean energy supply system and advances greentransformation through carbon offset, saving energy and carbon footprint certification to create its greenimage for sustainable development. In the reporting period, Tongwei and its subsidiaries and branchesemitted 6,554,463.64 tons carbon dioxide equivalent in their production and operation activities with theemission intensity per one-million-yuan revenue being 103.23 tons.
In carbon footprint certification, the Company has taken the initiative and completed the carbonfootprint check and business carbon emission check in order to gain a full understanding of its carbonemission level and prepare for the further actions for reducing carbon emission and reaching carbon neutral.The entire lifecycle of polysilicon products and solar cells from sourcing of raw materials, production toconsumption is green, clean and low carbon. The Solar-grade polysilicon products have met the
requirements in ISO/TS14067:2013 Greenhouse Gases — Carbon Footprint of Products — Requirementsand Guidelines for Quantification and Communication and PAS 2050:2011 Specification for theAssessment of the Lifecycle of Greenhouse Gas Emissions of Goods & Services. As of the end of thereporting period, the products of subsidiaries including Tongwei Solar and Sichuan Yongxiang had passedthe carbon footprint certification, and the carbon footprint of products of Yongxiang Polysilicon loweredby approximate 6%. While highlighting the carbon emission in product lifecycle, these are also importantfor lowering the high environmental costs and comprehensive production cost.Regarding specific actions for reducing carbon emission, renewable energies are greatly employedin agriculture companies. Solar panels have been installed in many subsidiaries for a total powergeneration of over 1,797,724 kWh per year. The Company has removed high energy consuming equipment,replaced oil-fired forklifts with electricity-driven forklifts, replaced coal and biomass-fired boilers withgas-fired boilers, and performed the feasibility study on the use of electric boilers. Further, it vigorouslyadvances the renovation work for energy saving, the renovation of driers, use of steam generators andapplication of automatic on-off technique in stacking machine have greatly lowered the energyconsumption and carbon emission. In polysilicon business, the Company further decreased theconsumption of steam, electricity for reduction reactions, silicon, water and electricity for power systemsby integrated use of steam by product, study on the intelligent control platform for reduction reactions,use of new technology for increasing the productivity and energy consumption for manufacturing squaresilicon cores, the study on intermittent braking type slurry processing for hydrochlorinate, the 450 A softwater unit, reuse of out circulating water of the closed tower, reduction of electricity consumed forpolysilicon production, and other projects relating to energy saving and emission reduction. Yongxiangbecame a party to SBTi (Science Based Targets initiative) in April 2021, the first Sichuan enterprise thatparticipated in the organization. As of the end of the reporting period, Yongxiang took a leading role indeveloping 3 carbon neutral standards for the PV industry, and presented the Yongxiang New Energy LowCarbon Work Plan at the COP26. Tongwei New Energy concluded a transaction of 87,000 greenelectricity certificates of grid parity on China's green electricity certificate purchase platform(http://www.greenenergy.org.cn), the largest single transaction since the platform went online on July 1,2017, creating a new record nationwide. This has played a vital role in developing the market process ofgreen electricity certificate, and a profound role in the development of renewable energies in China, andguiding the green consumption and use of clean energy in the country.
The Company will keep advancing the carbon reduction and carbon neutral work by giving play tothe value of Tongwei as a world-class safe food supplier and a world-class clean energy operator, andfocuses on the green and sustainable development for playing its own role in a better future for the mankind.
II. Social responsibility"√ Applicable" "□ Not applicable"
Refer to the 2021 ESG Report of Tongwei Co., Ltd. disclosed on http://www.sse.com.cn by theCompany on April 26, 2022 for details.
III. Work relating to poverty relief and rural revitalization"√ Applicable" "□ Not applicable"
Photovoltaic-based targeted poverty alleviation is a targeted and precise approach that combinedgreen type, blood-generation type and industry type. To solidify and expand the achievements of povertyalleviation and actively practice the corporate social responsibility, the Company constructed PV-basedpoverty alleviation projects in Jilin, Shandong, Ningxia, Inner Mongolia and Sichuan, which haveeffectively relieved the extreme shortage of power in local areas, and provided continuous incomes forpoor households. This indeed provides a long-term solution to the poverty problem and a new path forpoverty alleviation combining industrial development, ecologic development and clean energy, importantcontribution to the national PV-based poverty alleviation and moderate prosperity of poor groups, andcreated a complete Tongwei Template for the country's battle against poverty. In the reporting period, theCompany invested 8,342,900 yuan into poverty alleviation. What is more, Yongxiang preferred candidatesfrom registered poor households in hiring process, having helped more than one hundred rural workersget rid of poverty. Yongxiang was awarded with the title of Sichuan Employment-based PovertyAlleviation Base in 2021.
Regarding rural revitalization, construction of Aquaculture-Photovoltaic Integration bases into whichrural tourism elements are introduced under the country's rural revitalization strategy. As a result, green
power is produced on the water and green food under the water, with local rural tourism boosted, a waythat combines the three sectors together to create new farming, new energy and new village, helping Chinareach carbon peak and carbon neutral goal and revitalize rural areas.The Company will continue assuming social responsibility and advancing the PV-based povertyalleviation to help local residents march toward prosperity, drive local industrial development and improvelocal environment, thereby making contributions to the goals of green mountains and lush waters as wellas common prosperity. At the same time, the Company will combine Aquaculture-Photovoltaic Integrationand rural revitalization through the integration of three sectors to build rural tourism brands, driven ruraleconomic development, optimize rural the industrial structure and integrated use of land resources.
Section VI. Important MattersI. Fulfillment of commitments(I). Commitments made by the Company, its actual controller, shareholders, related parties, and acquires in or by the reporting period"√ Applicable""□ Not applicable"
| Background | Commitment type | Commitment party | Commitment content | Time and duration | Fulfillment duration provided or not | Fulfilled properly and in time or not | Specific reasons for non-fulfillment in time | Next steps to correct the non-fulfillment |
| Commitments related to material asset restructuring | Solve horizontal competition | Liu Hanyuan and Tongwei Group | Liu Hanyuan, Tongwei Group and entities under their control do not have horizontal competition with the target company. Liu Hanyuan, Tongwei Group and entities under their control will not conduct any operation activity that is identical, similar to or competes with the existing business or product of the target company, including but not limited to through creation of, investment into, purchase of, merger of any domestic or overseas company whose business and/or product is identical or similar to that of the target company, and will not generate any horizontal competition of any kind in any form of economic organization. Liu Hanyuan and Tongwei Group promise to properly fulfill the said commitment, and will be liable for damages under laws if the interests and rights of Tongwei or the target company are harmed due to any breach of the said commitment by Liu Hanyuan, Tongwei Group and/or any entity under their control. | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| Solve horizontal competition | Liu Hanyuan and Tongwei Group | Liu Hanyuan, Tongwei Group and entities under their control do not have any obviously unfair related-party transaction with the target company. After this transaction, Liu Hanyuan, Tongwei Group and entities under their control will try every mean to avoid or reduce related-party transactions with the target company; for any related-party transaction that cannot be avoided or are necessary for reasonable grounds, a valid related-party transaction agreement will be concluded with the target company and approval procedures will be completed under applicable laws, regulations, provisions, listing rules and other normative documents as well as the articles of association of Tongwei; any transaction with Tongwei and/or its subsidiaries will be performed at the fair value, such transactions will not be used to do anything that is harmful to Tongwei and/or its subsidiaries; the information disclosure obligation relating to related-party transactions will be performed in accordance with applicable laws, regulations, listing rules and the articles of association of Tongwei. Liu Hanyuan and Tongwei Group promise to properly fulfill the said commitment, and will be liable for damages under laws if the interests and rights of Tongwei or the target company are harmed due to any breach of the said commitment by Liu Hanyuan, Tongwei Group and/or any entity under their control. | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| Others | Liu Hanyuan and Tongwei Group | Liu Hanyuan and Tongwei Group will not harm the independence of Tongwei due to this restructuring, keep separated from Tongwei in terms of assets, personnel, finance, organizational structure and business, strictly observe relevant provisions of the CSRC on independence of listed companies, not use Tongwei as guarantee in breach of provisions, not occupy funds of Tongwei in breach of provisions, and maintain the independence of Tongwei. This commitment will remain valid as long as Tongwei is in legally existence, Liu Hanyuan acts as the actual controller of Tongwei and Tongwei Group is the controlling shareholder of Tongwei. Liu Hanyuan and Tongwei Group will be liable for damages under laws if their breach of the said commitment causes any loss to Tongwei and/or its shareholders. | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable | |
| Others | Tongwei Group | Tongwei Group will not occupy without payment and/or use with payment the assets, funds or other resources of Tongwei; for any funds transfer between Tongwei Group and Tongwei, Tongwei Group will strictly observe requirements in applicable laws and regulations, administrative rules and the articles of associations (including but not limited to provisions on related-party transactions). | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable | |
| Commitments related to IPO | Solve horizontal competition | Tongwei Group | Tongwei Group will not and will procure its affiliates not to by itself or together with, for the behalf of any person, firm or entity develop, operate or facilitate the operation of, participate in, or be engaged in any | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| business that causes or may cause indirect or direct competition with the main business of Tongwei. Tongwei Group agrees to indemnify Tongwei from and against any and all losses, damages and expenses incurred due to its breach of this commitment. | ||||||||
| Solve horizontal competition | Liu Hanyuan, Guan Yamei | Liu Hanyuan and Guan Yamei will not invest into any company whose business is identical or similar to the business of the Company. | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable | |
| Others | Tongwei Group | Tongwei Group will not occupy without payment and/or use with payment the assets, funds or other resources of Tongwei; for any funds transfer between Tongwei Group and Tongwei, Tongwei Group will strictly observe requirements in applicable laws and regulations, administrative rules and the articles of associations (including but not limited to provisions on related-party transactions). | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable | |
| Commitments related to refinancing | Restricted shares | Private placement investors | Changdu Tongrui Industrial Partnership (Limited Partnership), Shanghai Yusheng Investment Advisory Co Ltd., Shanghai Yingshui Investment Management Co., Ltd. - Yingshui Yueyi No. 19 Privately Placed Security-based Investment Fund, Shanghai Xingshan Asset Management Co., Ltd (Xinghan Asset Management - Xingyuan No.5 Single Asset Management Plan), Taikang Life Co., Ltd. Liantou Innovation Driver-type Investment Account, E Fund Management Co., Ltd., YEIG Co., Ltd., Hongde Fund Management Co., Ltd., Dajia | 6 months from December 8, 2020. | Yes | Yes | Not applicable | Not applicable |
| Asset Management Co., Ltd. - Blue Chip Select No.5 Collective Asset Management Product, Dacheng Fund Management Co., Ltd., JT Asset Management Co., Ltd., Hillhouse Management Co., Ltd. - China Value Fund (ETF), Caitong Fund Management Co., Ltd., Rosefinch Fund Management Co., Ltd., Chengdu Fusen Noble House Co., Ltd., and Foresight Fund Management Co., Ltd. Shall not transfer the shares obtained in this private placement within six months after the end of the private placement. | ||||||||
| Others | Tongwei Co., Ltd. | Before using up the raised funds or within 36 months after the raised funds are in place, Tongwei shall not inject funds into similar financial services nor into Tongwei Agricultural Finance Guarantee Co., Ltd. (including capital increase, borrowing, guarantee and other forms of capital investment) shall not be allowed. | Before the raised funds are used up or within 36 months after the raised funds are in place. | Yes | Yes | Not applicable | Not applicable | |
| Commitments related to share incentive | Restricted shares | Tongwei employee share plan “China Life Asset Management - Advantage Select 2110 Insurance-based Asset Management Product” and “China Life Asset | Shares may not be transferred within 12 months since the completion of the purchase. | May 21, 2021 to May 20, 2022 | Yes | Yes | Not applicable | Not applicable |
Management- AdvantageSelect 2108Insurance-based AssetManagementProduct”
(II). Where profit forecasts are made for assets or projects of the Company and the reporting periodfalls into the profit forecast period, the Company should explain the reasons for whether the assetsand projects reach the profit forecasts"□ Reached" "□ Not reached" "√ Not applicable"
(III). Completion of performance commitment and its effect on the goodwill impairment test"□ Applicable" "√ Not applicable"
II. Funds possessed by the controlling shareholder or other related parties for non-operatingpurposes"□ Applicable" "√ Not applicable"
III. Guarantees in violation of provisions"□ Applicable" "√ Not applicable"
IV. Note by the board of directors on non-standard audit report"□ Applicable" "√ Not applicable"
V. Analysis and note by the Company on reasons and effect of changes in accounting policies,accounting estimates or corrections of material accounting errors(I). Analysis and note by the Company on reasons and effect of changes in accounting policies andaccounting estimates"□ Applicable" "√ Not applicable"
(II). Analysis and note by the Company on reasons and effect of corrections of material accountingerrors"□ Applicable" "√ Not applicable"
(III). Communication with former accounting firm"□ Applicable" "√ Not applicable"
(IV). Other notes"□ Applicable" "√ Not applicable"
VI. Engagement and dismissal of accounting firm
Unit: 10,000 yuan Currency: CNY
| Engaged | |
| Name of domestic accounting firm | Sichuan Huaxin (Group) CPA (Special General Partnership) |
| Remuneration of domestic accounting firm | 417 |
| Audit period of domestic accounting firm | 21 years |
| Name | Remuneration | |
| Internal control auditing firm | Sichuan Huaxin (Group) CPA (Special General Partnership) | 133 |
| Sponsor | China Securities Co., Ltd | 0 |
Note on engagement and dismissal of accounting firm"√ Applicable" "□ Not applicable"
As approved by 2020 shareholders meeting on May 7, 2021, the Company renewed the appointment ofSichuan Huaxin to provide 2021 annual audit and internal control audit.
Note on change of accounting firm in the audit period"□ Applicable" "√ Not applicable"
VII. Situations that cause suspension of trading risk(I). Reasons for suspension of trading warning"□ Applicable" "√ Not applicable"
(II). Proposed actions by the Company"□ Applicable" "√ Not applicable"
(III). Situations and reasons for termination of trading"□ Applicable" "√ Not applicable"
VIII. Matters relating to bankruptcy and reorganization"□ Applicable" "√ Not applicable"
IX. Material litigation and arbitration matters"□ Yes" "√ No"
X. Punishments on and corrections by the Company, and/or its directors, supervisors, seniormanagers, controlling shareholder, and actual controller"□ Applicable" "√ Not applicable"
XI. Note on the integrity status of the Company and its controlling shareholder and actualcontroller"□ Applicable" "√ Not applicable"
XII. Material related-party transactions(I). Related-party transactions pertaining to everyday operation
1. Matters that have been disclosed in interim announcements without further progress or change"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"(II). Related-party transactions due to purchase or sale of assets or shares
1. Matters that have been disclosed in interim announcements without further progress or change"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
4. Performance achieved in the reporting period where performance agreement was involved"□ Applicable" "√ Not applicable"
(III). Material related-party transactions for joint outward investments
1. Matters that have been disclosed in interim announcements without further progress or change"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
(IV). Related-party debts and claims
1. Matters that have been disclosed in interim announcements without further progress or change"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in interim announcements with further progress or change"□ Applicable" "√ Not applicable"
3. Matters not disclosed in interim announcements
"□ Applicable" "√ Not applicable"
(V). Financial transactions between the Company and financial companies with which theCompany has a relationship or controlled by the Company, and related parties"□ Applicable" "√ Not applicable"
(VI). Others"□ Applicable" "√ Not applicable"
XIII. Major contracts and their performance(I). Custody, contracting, lease matters
1. Custody
"□ Applicable" "√ Not applicable"
2. Contracting
"□ Applicable" "√ Not applicable"
3. Lease
"□ Applicable" "√ Not applicable"
(II). Guarantee"√Applicable" "□Not applicable"
Unit: 10,000 yuan Currency: CNY
| Outward guarantees by the Company (excluding guarantees for subsidiaries) | |||||||||||||||
| Guarantor | Relation between guarantor and the Company | Guaranteed party | Guaranteed amount | Date (agreement execution date) | Start date of the guarantee | Expiry date of the guarantee | Guarantee type | Collateral (if any) | Guarantee is fulfilled | Guarantee is overdue | Overdue amount | Counter-guarantee | Guarantee for a related party | Relation with the related party | |
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiary | Farmers and dealers | 20,134.93 | 2021-01-01 | 2022-12-17 | joint and several guarantee | No | Yes | 1,763.19 | No | |||||
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiary | Farmers (rooftop powerplants) | 2,073.94 | 2017-09-15 | 2028-05-31 | joint and several guarantee | No | No | No | ||||||
| Total guaranteed amount in the reporting period (excluding guarantees for subsidiaries) | 71,349.73 | ||||||||||||||
| Total guaranteed amount at the end of the reporting period (A) (excluding guarantees for subsidiaries) | 22,208.87 | ||||||||||||||
| Guarantees by the Company and its subsidiaries for other subsidiaries | |||||||||||||||
| Total guaranteed amount for subsidiaries in the reporting period | 1,484,279.10 | ||||||||||||||
| Total guaranteed amount for subsidiaries at the end of the reporting period (B) | 1,154,960.16 | ||||||||||||||
| Total guaranteed amount by the Company (including guarantees for subsidiaries) | |||||||||||||||
| Total guaranteed amount (A+B) | 1,177,169.03 | ||||||||||||||
| Ratio of total guaranteed amount to net assets of the Company (%) | 28.26 | ||||||||||||||
| Including: | |||||||||||||||
| Amount for shareholders, actual controller and its related parties (C) | |||||||||||||||
| Indirect or direct guaranteed amount for parties whose debt-ratio is over 70% (D) | 526,286.69 |
| Amount out of the total guaranteed amount that exceeds 50% of the net assets (E) | |
| Total of the above three items (C+D+E) | 526,286.69 |
| Note on unexpired guarantees for which the Company may bear joint liability for repayment | |
| Note on guarantees | The overdue guaranteed amount means the unrecovered balance of repayments made for behalf of the guaranteed parties at the end of the reporting period |
(III). Entrusted cash management
1. Entrusted wealth management
(1) Overview of entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
| Type | Sources of funds | Amount change | Balance | Overdue amount |
| Structured deposits | The Company's own funds | 465,000.00 | 0 | 0 |
Others"□ Applicable" "√ Not applicable"
(2) Individual entrusted wealth management products
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
| Trustee | Type | Amount | Start date | End date | Source of funds | Destination of funds | How to determine renumeration | Annualized rate of return | Expected return (if any) | Actual gain or loss | Actual recovery | Statuary procedure completed or not | Future entrusted wealth management plan or not | Amount of provision for impairment reserve (if any) |
| Ping ’an Bank Chongqing Branch | Ping ’an Bank Business Structured Deposit 3M | 50,000.00 | 2020-12-15 | 2021-03-15 | The Company's own funds | Structured deposits | Floating income | 1.65%-4.55% | 382.19 | 50,000.00 | Yes |
| SPD Bank Chengdu Branch | Corporate Stable Rate and Fixed-term JG9014 3M | 50,000.00 | 2020-12-15 | 2021-03-15 | The Company's own funds | Structured deposits | Floating income | 1.4%/3.05%/3.25% | 381.25 | 50,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 90 days | 50,000.00 | 2020-12-18 | 2021-03-18 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.00% | 369.86 | 50,000.00 | Yes | |||
| Ping ’an Bank Chongqing Branch | Ping ’an Bank Business Structured Deposit 2021 CNY product | 40,000.00 | 2021-03-19 | 2021-05-19 | The Company's own funds | Structured deposits | Floating income | 1.65%-4.43% | 203.22 | 40,000.00 | Yes | |||
| SPD Bank Chengdu Branch | SPD Bank Liduoduo Corporate Stable Rate Fixed Term JG9013 CNY Business Structured Deposit | 40,000.00 | 2021-03-19 | 2021-04-19 | The Company's own funds | Structured deposits | Floating income | 1.2%/3.15%/3.35% | 105.00 | 40,000.00 | Yes | |||
| ICBC Chengdu Branch | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 03554 Series | 10,000.00 | 2021-03-19 | 2021-05-19 | The Company's own funds | Structured deposits | Floating income | 1.48%/3.00%/3.40% | 50.14 | 10,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 63 days | 20,000.00 | 2021-03-22 | 2021-05-24 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.00% | 103.56 | 20,000.00 | Yes | |||
| SPD Bank Chengdu Branch | Corporate Stable Rate 21JG5810 Series | 40,000.00 | 2021-04-21 | 2021-05-21 | The Company's own funds | Structured deposits | Floating income | 1.4%/3.15%/3.35% | 105.00 | 40,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 91 days | 10,000.00 | 2021-03-22 | 2021-06-21 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.00% | 77.29 | 10,000.00 | Yes | |||
| ICBC Chengdu Branch | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 04474 Series | 10,000.00 | 2021-05-28 | 2021-06-28 | The Company's own funds | Structured deposits | Floating income | 1.48%-3.15%-3.55% | 26.75 | 10,000.00 | Yes | |||
| Huatai Securities Co., Ltd. | Huatai Securities Juyi No. 21083 Income Receipts | 10,000.00 | 2021-05-28 | 2021-07-02 | The Company's own funds | Structured deposits | Floating income | 1.3%-3.4% | 41.66 | 10,000.00 | Yes | |||
| SPD Bank Chengdu Branch | Corporate Stable Rate 21JG5510 Series | 40,000.00 | 2021-06-01 | 2021-07-01 | The Company's own funds | Structured deposits | Floating income | 1.40%-3.40%-3.60% | 113.33 | 40,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 36 days | 10,000.00 | 2021-05-31 | 2021-07-06 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.15% | 31.07 | 10,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 63 days | 10,000.00 | 2021-05-31 | 2021-08-02 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.20% | 55.23 | 10,000.00 | Yes | |||
| Ping’an Bank Chongqing Branch | Ping ’an Bank Business Structured Deposit CNY Product | 10,000.00 | 2021-06-01 | 2021-08-02 | The Company's own funds | Structured deposits | Floating income | 1.65%-4.53% | 52.49 | 10,000.00 | Yes | |||
| CCB Shuangjian Road Sub-branch | Wealth CCB “Anxin” (7D) FD Open-ended NV CNY Product | 10,000.00 | 2021-06-01 | 2021/7/21 and 2021/7/28 | The Company's own funds | Fixed-income assets | Floating income | 3.60% | 44.91 | 10,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 38 days | 10,000.00 | 2021-06-25 | 2021-08-02 | The Company's own funds | Structured deposits | Floating income | 1.59%-3.15% | 32.79 | 10,000.00 | Yes |
| ICBC Chengdu Branch | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 04897 Series | 10,000.00 | 2021-06-29 | 2021-07-29 | The Company's own funds | Structured deposits | Floating income | 1.48%-3.7% | 27.12 | 10,000.00 | Yes | |||
| ICBC Chengdu Branch | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 05424 Series | 10,000.00 | 2021-07-30 | 2021-08-29 | The Company's own funds | Structured deposits | Floating income | 1.48%-3.25%-3.65% | 26.71 | 10,000.00 | Yes | |||
| China Bank of Communications Xindu Sub-branch | CBC Yuntong Wealth Fixed-term Structured Deposit 39 days | 10,000.00 | 2021-08-19 | 2021-09-27 | The Company's own funds | Structured deposits | Floating income | 1.85%/3.85% | 33.66 | 10,000.00 | Yes | |||
| ICBC Chengdu Branch | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 05983 Series | 10,000.00 | 2021-09-03 | 2021-10-08 | The Company's own funds | Structured deposits | Floating income | 1.48%-3.1%-3.5% | 29.73 | 10,000.00 | Yes | |||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 5,000.00 | 2021-09-10 | 2021-12-10 | The Company's own funds | Structured deposits | Floating income | 1.54%-3.5% | 44.24 | 5,000.00 | Yes |
Others"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted wealth management
"□ Applicable" "√ Not applicable"
2. Entrusted loans
(1) Overview of entrusted loans
"□ Applicable" "√ Not applicable"
Others"□ Applicable" "√ Not applicable"
(2) Individual entrusted loans
"□ Applicable" "√ Not applicable"
Others"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted loans
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
(IV). Other material contracts"□ Applicable" "√ Not applicable"
XIV. Note on material matters that had material influence on value judgements and investmentdecisions of investors"√ Applicable" "□ Not applicable"
1. On April 9, 2021, the 18th meeting of the 7th board of directors passed proposals including theProposal on the Company's Public Issuing A-share Convertible Corporate bonds, details of which are inrelevant announcements disclosed on designated disclosure media and the website of Shanghai StockExchange by the Company on April 13, 2021. This matter was approved by the 2020 shareholders meeting.The planned issuance does not exceed 12 billion yuan with a duration of 6 years. The interest will be paidonce per year. The principal and the interest for the last year will be paid on maturity. The conversionperiod is from the first trading day after six months since the convertible bonds are issued completely tothe maturity date of the convertible bonds. The funds raised net of issuing fee will be used for therenovation project for the manufacturing of PV silicon materials (Phase II 50,000-ton High-purityPolysilicon Project in Leshan), for the manufacturing project of PV silicon materials (Phase II 50,000-ton
High-purity Polysilicon in Baotou), the 15 GW monocrystalline Rod Pulling and Cutting Project as wellas for supplementing current funds. On December 23, 2021, the Company received the CSRC Reply onApproving Tongwei Co., Ltd. to Publicly Issue Convertible Corporate Bonds (CSRC Permit [2021]No.4028). On February 21, 2022, the Proposal on Clarifying the Plan for Company's Public Issuing A-share Convertible Corporate Bonds in the 24th meeting of the 7th board of directors was approved, whichdetermined relevant matters and determined the initial conversion price of 39.27 yuan/share. On February24, 2022, the Company publicly issued convertible bonds of 12 billion yuan (“Tong 22 Convertible Bond”,code 110085). The amount received net of undertaking and sponsorship costs (78 million yuan) (includingtax) is 11.922 billion yuan. Sichuan Huaxin issued the Capital Verification Report [2022] No.0009 thatconfirmed the raised funds were in place. On March 7, 2022, the registration and custody procedures for“Tong 22 Convertible Bond” were completed in CSDC Shanghai. On March 18, 2022, “Tong 22Convertible Bond” was listed in the bond market.
2. On June 30, 2021, the 20th meeting of the 7th board of directors passed the Proposal on Investingthe 200,000- ton High-purity Polysilicon Project in Leshan. The Company on one party and LeshanGovernment and Wutongqiao District Government on the other party signed the Investment Agreementunder which the Company plans to construct a high-purity polysilicon manufacturing site whose annualcapacity is 200,000 tons in Wutongqiao District Leshan through an investment expected to be 14 billionyuan. The Project will be implemented in two phases, the details of which are available in relevantannouncements made by the Company on designated disclosure media and the website of Shanghai Stockmarket on July 1, 2021.
3. In the reporting period, the Company and Tech-Bank signed a Strategic Cooperation FrameworkAgreement. The Company purchased the entire aquatic feed business and a part of swine feed business ofTech-Bank with 1.271 billion yuan, and started swine feed supply cooperation. This strategic cooperationhelps give full play to the core advantages of both parties in the industry for a coordinated and win-wingrowth and for creating a good order of industrial development; also helps the Company further increasethe professionalism and scale of its feed business, to increase its market share and solidify its leadingposition in the market. Refer to relevant announcements disclosed on the designated disclosure media andhttp://www.sse.com.cn by the Company on September 25, 2021.
Section VII. Share Changes and Shareholders
I. Change in share capital(I). Share changes
1. Share changes
Unit: share
| Before the change | Change (+, -) | After the change | |||||||
| Number | Percent (%) | New issue | Bonus issue | Capital reserve converted to shares | Others | Sub-total | Number | Percent (%) | |
| I. Restricted shares | 213,692,500 | 4.75 | 0 | 0 | 0 | -213,692,500 | -213,692,500 | 0 | 0 |
| 1. Shares held by the state | |||||||||
| 2. Shares held by the state-owned legal entities | |||||||||
| 3. Shares held by other domestic investors | 213,692,500 | 4.75 | 0 | 0 | 0 | -213,692,500 | -213,692,500 | 0 | 0 |
| Including: Shares held by domestic investors other than state-owned legal entities | |||||||||
| Shares held by domestic natural persons | |||||||||
| 4. Shares held by overseas investors | |||||||||
| Including: Shares held by overseas legal entities | |||||||||
| Shares held by overseas natural persons | |||||||||
| II. Floating shares | 4,287,855,684 | 95.25 | 0 | 0 | 0 | 213,692,500 | 213,692,500 | 4,501,548,184 | 100 |
| 1. CNY common shares | 4,287,855,684 | 95.25 | 0 | 0 | 0 | 213,692,500 | 213,692,500 | 4,501,548,184 | 100 |
| 2. Foreign shares listed in Chinese mainland | |||||||||
| 3. Foreign shares listed outside Chinese mainland | |||||||||
| 4. Others | |||||||||
| III. Total shares | 4,501,548,184 | 100 | 0 | 0 | 0 | 0 | 0 | 4,501,548,184 | 100 |
2. Note on share changes
"√ Applicable" "□ Not applicable"The Company issued 213,692,500 CNY common shares (A-share) to 16 investors via a private placement on December 8, 2020. A locking period of 6 monthsfrom the issue completion (December 8, 2020) is applied to these shares. On June 8, 2021, a part of these restricted shares was unlocked and made available in themarket. In the reporting period, the total share capital was not changed.
3. Impact of the share change on the earnings per share, net assets per share and other financial indicators of the latest year and the latest period (if any)"□ Applicable" "√ Not applicable"
4. Other disclosures the Company thinks necessary or required by the CSRC"□ Applicable" "√ Not applicable"
(II). Change in restricted shares"√Applicable" "□Not applicable"
Unit: share
| Shareholder name | Opening restricted shares | Number of restricted shares unlocked in the year | Number of restricted shares increased in the year | Closing restricted shares | Reason for restriction | Unlocking date |
| Changdu Tongrui Industrial Partnership (Limited Partnership) | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Shanghai Yusheng Investment Advisory Co Ltd. | 14,300,000 | 14,300,000 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Shanghai Yingshui Investment Management Co., Ltd. - Yingshui Yueyi No. 19 Privately Placed Security-based Investment Fund | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Shanghai Xingshan Asset Management Co., Ltd (Xinghan Asset Management - Xingyuan No.5 Single Asset Management Plan) | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Taikang Life Co., Ltd. Liantou Innovation Driver-type Investment Account | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Basic Pension Insurance Fund 1205 Portfolio | 1,428,572 | 1,428,572 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - E-Fund New Economy Flexible-Configuration Mixed Investment Fund | 714,285 | 714,285 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| BOC - E-Fund New Balanced Growth Equity Investment Fund | 4,285,714 | 4,285,714 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| BOC - E-Fund New Stable Growth Investment Fund | 714,285 | 714,285 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - E-Fund Kexiang Mixed Investment Fund | 1,428,572 | 1,428,572 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| BOCOM - E-Fund Kexun Mixed Investment Fund | 1,428,572 | 1,428,572 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| YEIG Co., Ltd. | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Hongde Yuxiang Bond Investment Fund | 232,143 | 232,143 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CCB - Hongde Hongye Flexible-Configuration Mixed Investment Fund | 357,143 | 357,143 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Hongde Honghua Flexible-Configuration Mixed Investment Fund | 214,286 | 214,286 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CCB - Hongde Strategic Transformation Equity Investment Fund | 1,071,428 | 1,071,428 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CMB - Hongde Ruize Mixed Investment Fund | 2,500,000 | 2,500,000 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Hongde Hongyi Quantitative Mixed | 571,428 | 571,428 | 0 | 0 | Lock non-publicly | 2021-06-08 |
| Investment Fund | offered shares | |||||
| ICBC - Hongde Quantitative Select Mixed Investment Fund | 357,143 | 357,143 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Hongde Yukang Bond Investment Fund | 714,286 | 714,286 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| China Everbright Bank - Hongde Select Mixed Investment Fund | 535,714 | 535,714 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| BOCOM - Hongde Advantage Leading Flexible-Configuration Mixed Investment Fund | 107,143 | 107,143 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Hongde Research Select Mixed Investment Fund | 214,286 | 214,286 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CMB - Hongde Ruixing 3Y Mixed Investment Fund | 892,857 | 892,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Postal Savings Bank of China - Hongde Ruixing 1Y Mixed Investment Fund | 100,000 | 100,000 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Dajia Asset - ICBC - Dajia Asset - Blue Chip Select No. 5 Collective Asset Management Product | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Dacheng Fund - Huaneng Trust Jiayue No.4 Fund Trust - Dacheng Fund Excellence No. 1 Single Asset Management Plan | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan | 24,285,715 | 24,285,715 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Dacheng Fund - Huaneng Trust Yueying No.13 Fund Trust - Dacheng Fund Excellence No. 9 Single Asset Management Plan | 21,071,428 | 21,071,428 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CITIC Bank - JiuTai Ruiyi Private Placement Flexible-Configuration Mixed Investment Fund | 3,571,429 | 3,571,429 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CMB Securities - JiuTai Taifu Private Placement Theme Flexible-Configuration Mixed Investment Fund | 285,714 | 285,714 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Jiutai Fund - CGB - Sichuan Jinduo Investment Co., Ltd. | 4,285,714 | 4,285,714 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Jiutai Fund - CGB - Orient Securities Co., Ltd. | 500,000 | 500,000 | 0 | 0 | Lock non-publicly | 2021-06-08 |
| offered shares | ||||||
| Hillhouse Capital Management - China Value Fund (ETF) | 17,857,142 | 17,857,142 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Huaneng Trust Yueying No.15 Fund Trust - Caitong Fund Excellence No. 2 Single Asset Management Plan | 9,368,328 | 9,368,328 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Huaneng Trust Jiayue No. 5 Fund Trust - Caitong Fund Excellence No. 3 Single Asset Management Plan | 20,674,931 | 20,674,931 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Pan Xuhong - Caitong Fund Shaoxia No. 1 Single Asset Management Plan | 96,914 | 96,914 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Gao Xueqing Caitong Fund Haohai Private Placement No. 1 Single Asset Management Plan | 35,535 | 35,535 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Qingdao Haisi Qingyun Equity Investment Fund (Limited Partnership) - Caitong Fund Haisi Qingyun Single Asset Management Plan | 484,569 | 484,569 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Caitong Domestic Demand Growth 12M Open-ended Mixed Investment Fund | 648,353 | 648,353 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - CCB -China Life - Private Placement Portfolio Entrusted by China Life Insurance (Group) to Caitong Fund | 807,614 | 807,614 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Liang Dekang - Caitong Fund Heng’neng New Energy No. 1 Single Asset Management Plan | 321,431 | 321,431 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Chen Yanru - Caitong Fund Heng’neng New Energy No. 2 Single Asset Management Plan | 321,431 | 321,431 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Chengdu Minxun Online Technology Co., Ltd. - Caitong Fund Heng’neng New Energy No. 3 Single Asset Management Plan | 642,861 | 642,861 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Sichuan Deebio Pharmaceutical Co., Ltd. - Caitong Fund Heng’neng New | 321,431 | 321,431 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Energy No. 4 Single Asset Management Plan | ||||||
| Caitong Fund - Liu Fangbai - Caitong Fund Heng’neng New Energy No. 5 Single Asset Management Plan | 482,953 | 482,953 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Suzhou Industrial Park Zhongxin Energy Development Co., Ltd. - Caitong Fund Zhongxin No. 1 Single Asset Management Plan | 1,611,352 | 1,611,352 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Jiang Yong - Caitong Fund Yuquan No. 892 Single Asset Management Plan | 263,282 | 263,282 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Shaanxi Investment Fund Management Co., Ltd. - Caitong Fund Yuquan No. 838 Single Asset Management Plan | 962,676 | 962,676 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Luzhou Puxin Equity Investment Fund (Limited Partnership) - Caitong Fund Puxin No.3 Single Asset Management Plan | 646,092 | 646,092 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Central China Securities - Caitong Fund Tianxi Private Placement No. 66 Single Asset Management Plan | 323,046 | 323,046 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Capital Securities - Caitong Fund Huitong No. 1 Single Asset Management Plan | 32,304 | 32,304 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Shanghai Lu'an Investment Co., Ltd. - Caitong Fund Lu’an Private Placement Select Single Asset Management Plan | 96,914 | 96,914 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Caitong Fund - Huang Zheng - Caitong Fund Dongxian No. 1 Single Asset Management Plan | 96,914 | 96,914 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Rosefinch Fund - Shaanxi Coal Industry Company Limited - Shaanxi Coal Rosefinch New Energy Single Asset Management Plan | 6,785,714 | 6,785,714 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CMB - Rosefinch Industry Select Mixed Investment Fund | 214,286 | 214,286 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| ICBC - Rosefinch Industry Select Mixed | 39,286 | 39,286 | 0 | 0 | Lock non-publicly | 2021-06-08 |
| Investment Fund | offered shares | |||||
| Ping’ an Bank - Rosefinch Enterprise Leader Equity Investment Fund | 103,571 | 103,571 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Chengdu Fusen Noble House Co., Ltd. | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| CMB - Ruiyuan Growth Value Mixed Investment Fund | 7,142,857 | 7,142,857 | 0 | 0 | Lock non-publicly offered shares | 2021-06-08 |
| Total | 213,692,500 | 213,692,500 | 0 | 0 | / | / |
II. Issuance and listing of securities(I). Issuance in reporting period"□ Applicable" "√ Not applicable"
Note on issuance of securities in the reporting period (bonds with different interest rates and within theduration should be specified individually):
"□ Applicable" "√ Not applicable"
(II). Changes in total shares and shareholding structure and change in the asset-liability structure"√ Applicable" "□ Not applicable"In the reporting period, the Company had a total of 4,501,548,184 shares, which was not changed.As of the end of the reporting period, Tongwei Group, the controlling shareholder, held 43.85% of sharesin the Company.As of the end of the reporting period, the total assets were 88.25 billion yuan and total liabilities 46.593billion yuan for a L/A ratio of 52.80%.
(III). Current employee shares"□ Applicable" "√ Not applicable"
III. Shareholders and actual controller(I). Total shareholders
| Total common shareholders at the end of the reporting period | 308,719 |
| Total common shareholders at the end of the month prior to the disclosure date of annual report | 282,214 |
| Total preference shareholders at the end of the reporting period | 0 |
| Total preference shareholders with voting rights restored at the end of the month prior to the disclosure date of annual report | 0 |
(II). Top ten shareholders, top ten floating shareholders (or non-restricted shareholders) at the end of the reporting period
Unit: share
| Top ten shareholders | |||||||
| Shareholder name (Full name) | Current change | Closing shares | Percent (%) | Restricted shares | Pledge, mark or freeze | Shareholder type | |
| Status | Number | ||||||
| Tongwei Group Co., Ltd. | -24,400,000 | 1,974,022,515 | 43.85 | 0 | Pledged | 529,150,000 | Domestic investor other than state-owned legal entities |
| Hong Kong Securities Clearing Company Ltd. | 73,610,458 | 258,102,680 | 5.73 | 0 | None. | 0 | Unknown |
| China Life Asset Management Company Limited - Bank of China - China Life Asset - Advantage Select 2108 Insurance Asset Management Fund | 52,099,840 | 52,099,840 | 1.16 | 0 | None. | 0 | Unknown |
| China Life Insurance Co., Ltd. - Traditional - Common Insurance Product - 005L - CT001 Hu | 26,382,723 | 26,382,723 | 0.59 | 0 | None. | 0 | Unknown |
| Bank of China - Huatai PineBridge Investments Zhonzheng PV Industry Trade Open-ended Index Investment Fund | -3,435,948 | 24,560,452 | 0.55 | 0 | None. | 0 | Unknown |
| China Life Asset Management Company Limited - Industrial Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management Fund | 24,400,000 | 24,400,000 | 0.54 | 0 | None. | 0 | Unknown |
| Shanghai Pudong Development Bank - E-Fund Yuxiang Return Bond Investment Fund | 24,126,402 | 24,126,402 | 0.54 | 0 | None. | 0 | Unknown |
| Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan | -1,205,401 | 23,080,314 | 0.51 | 0 | None. | 0 | Unknown | |||
| China Securities - Tianhong Zhonzheng PV Industry Index Sponsored Investment Fund | 22,732,941 | 22,732,941 | 0.51 | 0 | None. | 0 | Unknown | |||
| ICBC - Huatai - SSE 50 Trade Open-ended Index Investment Fund | 22,586,101 | 22,586,101 | 0.50 | 0 | None. | 0 | Unknown | |||
| Top ten floating shareholders | ||||||||||
| Shareholder name | Floating shares | Type and number of shares | ||||||||
| Type | Number | |||||||||
| Tongwei Group Co., Ltd. | 1,974,022,515 | CNY common share | 1,974,022,515 | |||||||
| Hong Kong Securities Clearing Company Ltd. | 258,102,680 | CNY common share | 258,102,680 | |||||||
| China Life Asset Management Company Limited - Bank of China - China Life Asset - Advantage Select 2108 Insurance Asset Management Fund | 52,099,840 | CNY common share | 52,099,840 | |||||||
| China Life Insurance Co., Ltd. - Traditional - Common Insurance Product - 005L - CT001 Hu | 26,382,723 | CNY common share | 26,382,723 | |||||||
| Bank of China - Huatai PineBridge Investments Zhonzheng PV Industry Trade Open-ended Index Investment Fund | 24,560,452 | CNY common share | 24,560,452 | |||||||
| China Life Asset Management Company Limited - Industrial Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management Fund | 24,400,000 | CNY common share | 24,400,000 | |||||||
| Shanghai Pudong Development Bank - E-Fund Yuxiang Return Bond Investment Fund | 24,126,402 | CNY common share | 24,126,402 | |||||||
| Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan | 23,080,314 | CNY common share | 23,080,314 | |||||||
| China Securities - Tianhong Zhonzheng PV Industry Index Sponsored Investment Fund | 22,732,941 | CNY common share | 22,732,941 | |||||||
| ICBC - Huatai - SSE 50 Trade Open-ended Index Investment Fund | 22,586,101 | CNY common share | 22,586,101 | |||||||
| Note on application for special repurchase accounts among top ten shareholders | Not applicable | |||||||||
| Note on delegation of voting rights to or by, or wavier of voting rights by the said shareholders | Not applicable | |||||||||
| Note on the said shareholders’ relationship or acting in concert | No relationship exists between Tongwei Group and any of the other shareholders. China Life Asset Management - Bank of China- China Life Asset - Advantage Select 2108 Insurance Asset Management Product and China Life Asset Management - Industrial Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management Fund Product are created for employee share plan and they act in concert. Whether or not other shareholders have relationships or act in concert is not known. |
| Note on preference shareholders with voting rights restored and number of shares they hold | Not applicable |
Number of restricted shares held by top ten restricted shareholders and the restrictions"□ Applicable" "√ Not applicable"
(III). Strategic investors or general legal entities which became top ten shareholders due to newbonus share"□ Applicable" "√ Not applicable"IV. Controlling shareholder and actual controller(I). Controlling shareholder
1. Legal entities
"√ Applicable""□ Not applicable"
| Name | Tongwei Group Co., Ltd. |
| Person in charge or legal representative | Guan Yamei |
| Date of incorporation | 1996-10-14 |
| Main businesses | Wholesale and retail of goods; livestock husbandry; services for promoting and applying technologies; services for software and information technology; development and operation of real properties; property management; lease; PV generation (excluding items requiring prior licenses; items requiring post licenses are subject to licenses or approvals) |
| Other companies listed within or outside Chinese mainland that held shares in the Company in the reporting period | None. |
| Other notes | None. |
2. Natural persons
"□ Applicable" "√ Not applicable"
3. Special note on the fact that the Company has no controlling shareholder"□ Applicable" "√ Not applicable"
4. Note on change of controlling shareholder in the reporting period"□ Applicable" "√ Not applicable"
5. Box diagram specifying the ownership and control relationship between the Company and itscontrolling shareholder"√ Applicable" "□ Not applicable"
(II). Actual controller
1.Legal entity
"□ Applicable" "√ Not applicable"
2.Natural person
"√ Applicable" "□ Not applicable"
Tongwei Group Co., Ltd.Ownership interest
43.85%
Ownership interest
43.85%
Tongwei Co., Ltd.
| Name | Liu Hanyuan |
| Nationality | China |
| Residence right in other countries/regions | No |
| Main professions and titles | Chairman of the board of directors of Tongwei Group, member of the 7th board of directors of the Company, member of 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, vice chairman of the All-China Federation of Industry and Commerce Sichuan and the executive vice chairman of China Feed Industry |
| Listed companies within and outside Chinese mainland controlled by the actual controller in the latest 10 years | None. |
3.Special note on the fact that the Company has no actual controller
"□ Applicable" "√ Not applicable"
4.Note on change of control of the Company in the reporting period
"□ Applicable" "√ Not applicable"
5.Box diagram specifying the ownership and control relationship between the Company and itsactual controller"√ Applicable" "□ Not applicable"
6.Actual controller controls the Company via trust or other asset management approaches"□ Applicable" "√ Not applicable"
(III). Other information about the controlling shareholder and actual controller"□ Applicable" "√ Not applicable"
1.The cumulative shares pledged by controlling shareholder or the largest shareholders and theirpersons acting in concert account for over 80% of the total shares"□ Applicable" "√ Not applicable"
Liu HanyuanOwnership interest
80.00%
Ownership interest
80.00%
Tongwei Group Co., Ltd.
Tongwei Group Co., Ltd.Ownership interest
43.85%
Ownership interest
43.85%
Tongwei Co., Ltd.
2.Other legal entities holding over ten percent of the total shares
"□ Applicable" "√ Not applicable"
3.Note on restricting sale of shares
"□ Applicable" "√ Not applicable"
4.Specific implementation of share repurchases in the reporting period
"□ Applicable" "√ Not applicable"
Section VIII. Preference Shares"□ Applicable" "√ Not applicable"
Section IX. BondsI. Enterprise bonds, corporate bonds and non-financial enterprise debt-financing instruments"√ Applicable" "□ Not applicable"
(I). Enterprise bonds"□ Applicable" "√ Not applicable"
(II). Corporate bonds"□ Applicable" "√ Not applicable"
(III). Non-financial enterprise debt-financing instruments in inter-bank bond market"√Applicable" "□Not applicable"
1.Basic information on non-financial enterprise debt-financing instruments
Unit: 100 million yuan Currency: CNY
| Bond name | Short Name | Code | Issue date | Value date | Maturity date | Balance of bonds | Interest rate (%) | Payment method | Trading venue | Investor appropriateness arrangement (if any) | Trading mechanism | Risk of termination of trading |
| 2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. | 20 Tongwei MTN001 | 102001216 | 2020-06-17 | 2020-06-19 | 2023-06-19 | 4.00 | 5.2 | Installment interest Payments and principal repaid on maturity | China Interbank Bond Market | None. | Transactions are concluded with counterparties trade by trade over the counter through the CNY trading system in China Foreign Exchange Trade System | No |
Response actions against risk of termination of trading"□ Applicable" "√ Not applicable"
Overdue bonds"□ Applicable" "√ Not applicable"
Interest payment and principal repayment on bonds in the reporting period"√ Applicable" "□ Not applicable"
| Bond name | Note on interest payment and principal repayment |
| 2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. | Interest paid normally |
2.Trigger and execution of the option clause for issuers or investors and the investor protectionclause"□ Applicable" "√ Not applicable"
3.Intermediaries for services relating to bond issuing and bond duration
| Intermediary name | Office location | Signatory accountants | Contact | Telephone |
| Postal Savings Bank of China Co., Ltd. | No. 3 Jinrong Street, Xicheng District, Beijing | Zheng Yarong, Lei Lufan, Li Jiejuan | 010-68857443 010-68857440 | |
| China Securities Co., Ltd | 9/F, Building B and E, Kaiheng Center, No. 2 Chaonei Street, Dongcheng District, Beijing | Li Puhai, Pu Fei, Yang Junwei and Wen Bingyi | 028-68850820 | |
| Beijing Jindu Law Firm | 40/F, Building A, Caifu Center, No.7, Middle Third-Ring Road, Chaoyang District, Beijing | Liu Rong and Lu Yong | 028-86203818 | |
| Sichuan Huaxin (Group) CPA (Special General Partnership) | 28/F, Jinmao Lidu South, No. 18, Ximianqiao Street, Chengdu, Sichuan | Li Wulin, Tang Fangmo, and Xia Hongbo | Zhang Lan | 028-85560449 |
| CCIX Credit Rating Co., Ltd. | 7/F, Building D, Zhaoshang International Financial Center, No. 156 Fuxingmen Inner Street, Xicheng District, Beijing | Yu Qian and Liu Qing | 010-66428877 | |
| Shanghai Clearing House | 33-34/F, Oriental Financial Plaza, No. 318 South Zhongshan Road, Shanghai | Xie Chenyan and Chen Gongrong | 021-23198708 021-23198682 | |
| Beijing Financial Assets Exchange | No. 17 Jinrong Street Yi, Xicheng District, Beijing | Issue Department | 010-57896722 010-57896516 |
Changes in the above intermediaries"□ Applicable" "√ Not applicable"
4.Use of raised funds at the end of the reporting period
"√ Applicable" "□ Not applicable"
Unit:100 million yuan Currency: CNY
| Bond name | Total amount raised | Amount used | Amount unused | Operation of the special account for raised funds (if any) | Correction for non-conforming use of the raised funds (if any) | Compliance with the purposes, use schedule and other covenants in the prospectus |
| 2020 Middle-Term Note Series 1 | 4.00 | 4.00 | 0.00 | Not applicable | Not applicable | Yes |
of TongweiCo., Ltd.
Construction progress and operation performance of projects for which the raised funds are used"√ Applicable" "□ Not applicable"All the funds raised through issuing of the MTNs are used for high-purity polysilicon and solar cellprojects and for increasing current funds.
Note on changes in the said purposes of funds raised through bond issuing"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
5.Credit rating adjustments
"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
6.Execution and change of guarantees, repayment schedules and other repayment protectionmeasures in the reporting period and their impact"□ Applicable" "√ Not applicable"
7.Note on other information about non-financial enterprise debt-financing instruments"□ Applicable" "√ Not applicable"
(IV). Loss from the scope of consolidation in the reporting period over 10% of the net assets atthe end of the previous year"□ Applicable" "√ Not applicable"
(V). Overdue interest-bearing debts other than bonds at the end of the reporting period"□ Applicable" "√ Not applicable"
(VI). Impact on the rights and interest of bond investors by the Company's violations of laws,regulations, articles of association, information disclosure management policies as well as covenantsor commitments made in the bond prospectus"□ Applicable" "√ Not applicable"
(VII). Accounting data and financial indicators within the latest two years at the end of the
reporting period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency :CNY
| Major financial indicators | 2021 | 2020 | Change YoY (%) | Reason for change |
| Net profit excluding non-recurring profits and losses | 8,486,488,644.67 | 2,408,554,229.37 | 252.35 | |
| Current ratio | 1.01 | 1.14 | -11.40 | |
| Quick ratio | 0.81 | 1.02 | -20.59 | |
| L/A ratio (%) | 52.80 | 50.91 | + 1.89 ppts | |
| Total debt/EBITDA | 0.75 | 0.60 | 25.00 |
| Interest coverage ratio | 15.17 | 6.95 | 118.27 | |
| Cash coverage ratio | 22.06 | 8.89 | 148.14 | |
| EBITDA coverage | 20.12 | 10.93 | 84.08 | |
| Repayment ratio (%) | 100.00 | 100.00 | 0.00 | |
| Interest repayment ratio (%) | 100.00 | 100.00 | 0.00 |
II. Convertible corporate bonds"√ Applicable" "□ Not applicable"
(I). Issuance of convertible bonds"√ Applicable" "□ Not applicable"Approved by the CSRC in the CSRC Permit [2021] No. 4028, on February 24, 2022, the Company issued120 million convertible bonds publicly with the nominal value of each bond being 100 yuan for a totalamount of 12 billion yuan. As agreed by the Shanghai Stock Exchange in the Self-Discipline RegulationDecision 2022 [No.61], the convertible corporate bonds so issued is listed in Shanghai Stock Exchangeon March 18, 2022. The short name of the bond is “Tong 22 Convertible Bond” and the code is 110085.
(II). Convertible bond holders and guarantors in the reporting period"□ Applicable" "√ Not applicable"
(III). Changes in convertible bonds in the reporting period"□ Applicable" "√ Not applicable"
Cumulative conversion to shares in the reporting period"□ Applicable" "√ Not applicable"
(IV). Adjustments of conversion prices"□ Applicable" "√ Not applicable"
(V). Liabilities, changes in creditworthiness and cash arrangements for debt repayment in the nextyear"□ Applicable" "√ Not applicable"
(VI). Note on other information about the convertible bonds"□ Applicable" "√ Not applicable"
Section X. Financial Report
I. Auditor's report"√ Applicable" "□ Not applicable"The annual financial report of the Company has been audited by Li Wulin, Tang Fangmo and Xia Hongbo,accountants from Sichuan Huaxin who have issued an unqualified opinion.
Auditor's Report
Sichuan Huaxin Audit (2022) No.0028
To all the shareholders of Tongwei Co., Ltd.:
I. Audit OpinionWe have audited the financial statements of Tongwei Co., Ltd. (“Tongwei”), which comprise theconsolidated balance sheet and the parent balance sheet as at 31 December 2021, the 2021 consolidated
income statement and parent income statement, the consolidated cash flow statement and parent cash flowstatement, consolidated and parent statements of owner's equity, and notes to the said financial statements.In our opinion, the attached financial statements prepared in accordance with Enterprise AccountingStandards in all material aspects, give a true and fair view of the consolidated and parent financial positionsas at 31 December 2021, and of the consolidated and parent operation performance and cash flows for theyear ended.II. Basis for Audit OpinionWe conducted our audit in accordance with Practicing Standards on Chinese Certified PublicAccountants (“PSCCPA”). Our responsibilities under those standards are further described in theAuditor’s Responsibilities for the Audit of the Financial Statements section of our report. In accordancewith China Code of Ethics for Certified Public Accountants, we are independent of Tongwei and haveperformed other responsibilities respect to occupational ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit MattersKey audit matters (KAMs) are those matters that, in the auditor’s professional judgement, are of mostsignificance in the audit of the financial statements of the current period. Communicating KAM is in thecontext of us having formed an opinion on the financial statements as a whole; and we do not issue separateaudit opinions on these matters.(I) Revenue recognition
1. Matter description
As indicated in Note V 47 Operating revenue and operating cost and Note XIV 2 Segmentinformation, the consolidated operating revenue of Tongwei was 63.491 billion yuan for the year 2021,including 38.184 billion yuan from the operating activities of PV business and 24.590 billion yuan fromthe operating activities of agriculture and animal husbandry business. Operating revenue is a keyperformance indicator of Tongwei, the inherent risk that the management manipulated the revenuerecognition in order to reach a certain target or expectation exists, therefore we identify revenuerecognition as a key audit matter.
2. Audit measures
(1) Understand and test whether internal controls relating to sale and collection are effectivelydesigned and operated and evaluate the reasonableness of basis for and timing of revenue recognition.
(2) Perform the analysis process on sales revenue, gross profit of sales and receivables by industry,including period-over-period comparison and product category comparison, to evaluate the reasonablenessof relevant changes.
(3) For key customers, check their contracts, purchase orders, delivery notes, receipt notes and otherdocuments, and obtain written confirmations on transaction amounts and closing balances for thesecustomers to understand that these transactions are true, complete and accurate; for other customers,perform a sampling check on contracts, purchase orders, delivery notes, shipping notes, payment notes,receipt notes and other documents to verify the amount of sales revenue is true, complete and accurate.
(4) According to the unit price set forth in the Power Purchase Agreement and power generationsubsidy documents, and the settled electricity, re-calculate and check the revenue from PV generation; andobtain written confirmation from State Grid for the settled electricity and settled price for desulfationelectricity.
(5) Check shipment and custom declaration data relating to exports and get written confirmations onbalances of advances from customers to verify the authentication, completeness and accuracy of export-sale revenue.
(6) Search business registration documents of key customers and talk with relevant staff of Tongweito check whether these customers are related parties of Tongwei.
(7) Perform a cut off test on sales revenue recognition before and other the balance sheet date, lookfor the receipt note dates and whether there are high-value returns, to verify whether the revenue isrecorded into an appropriate period.
(8) Focus on the compliance and appropriateness of disclosure of operating revenue in the notes tofinancial statements.
(II) Existence of receivable banker’s acceptance and the completeness of payable banker'sacceptance
1. Matter description
As indicated in Note V 5 Receivables financing, Note V 26 Notes payable - banker's acceptance,and Note XIV 4 Impact on the Company's liabilities by the bill pool, at December 13, 2021, the balances
of receivable financing and notes payable- banker's acceptance were 11.407 billion yuan and 9.762 billionyuan respectively, accounting for 12.93% of the total assets, and 20.95% of the total liabilities, hasimpacted the L/A ratio by 5.87 ppts. Bill-based settlement is a common practice in PV industry whereTongwei operates. With the growing business of Tongwei and the introduction of bill pool service, thebalances of banker’s acceptance payable and receivable by Tongwei are large and some banker'sacceptance receivable are pledged. Given the large amounts of banker's acceptance receivable and payable,we identify the existence receivable banker’s acceptance and the completeness of payable banker'sacceptance as a key audit matter.
2. Audit measures
(1) Understand and test the design and operation of key internal controls relating to the managementand bills to evaluate whether they are effective.
(2) Get the supplementary bill register of Tongwei and check whether the records in the registermatch the books, and sample some payment and collection records of bills to check bill information.
(3) Review whether discount interest and its accounting are correct according to bill discountagreement and bill pool agreement, and check the bill bond restricted due to issue of bills payable, pledgedbills receivable and the corresponding bills payable.
(4) Get written confirmations from banks on information about bills payable that are not issued andbills receivable that are pledged, and information about bills discounted in the reporting period.
(5) Get the Company's credit reports, check whether the information of bills payable that are notissued and the information of bills discounted at the end of the reporting period match the books.
(6) Supervise the physical inventory of bills receivable at the end of the reporting period to checkwhether these bills receivable exist and whether the information is accurate, and check the pledge of billsreceivable.
(7) Review whether the bill settlement is properly considered and whether relevant items arepresented correctly in the cash flow statement prepared by Tongwei management.
IV. Other InformationManagement of the Company is responsible for other information, which includes all informationcontained in the 2021 annual report of the Company, but excludes financial statements and our auditor'sreport.Our opinion on financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.Our responsibility is to express an opinion on these financial statements based on our audit. In doingso, we considered whether there is any material inconsistency between other information and the financialstatements or any circumstance we have obtained in the audit or whether there seems to have any materialmisstatement.If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of Management and the Governance Body for the Financial StatementsManagement of the Company is responsible for the preparation of the financial statements that givea true and fair view in accordance with Enterprise Accounting Standards, and for design, execution andmaintenance of such internal control as it determines is necessary to enable financial statements that arefree from material misstatement, whether due to fraud or error.In preparing the financial statements, Management is responsible for assessing the Company's abilityas a going-concern, disclosing (as applicable) matters related to going-concern, and using the going-concern basis, unless Management either intends to liquidate the Company, or to cease its operation or hasno realistic alternative but to do so.The Governance Body is responsible for overseeing the Company's financial reporting process.
VI. Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an auditconducted in accordance with Enterprise Accounting Standards will always detect a material misstatementwhen it exists. Misstatements can arise from fraud or error and are considered material if, individually orin the aggregate, they could reasonably be expected to influence the economic decisions of users taken onthe basis of these financial statements.
As part of an audit in accordance with Enterprise Accounting Standards, we exercise professionaljudgement and maintain professional skepticism throughout the audit. 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 opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by the Management.
4. Conclude on the appropriateness of the Management's use of the going concern basis of accounting.And also, based on obtained audit evidences, we conclude on whether a material uncertainty exists relatedto events or conditions that may cast significant doubt on the Company’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’sreport to the related disclosures in the consolidated financial statements or, if such disclosures areinadequate, to not express an unqualified opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor’s report. However, future events or conditions may cause theCompany to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the financial statements, and whetherthe financial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
6. Obtain sufficient appropriate evidence about the financial information of entity or businessactivities of Tongwei on which to base the auditor’s opinion on the financial statements. We areresponsible for the direction, supervision, and performance of the group audit engagement and completelyfor the auditor's opinion.
We communicate with the governance body regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal controlthat the auditor identifies during the audit.
We also provide the governance body with a statement that we have complied with relevant ethicalrequirements regarding independence, and communicates with them all relationships and other mattersthat may reasonably be thought to bear our independence, and where applicable, related safeguards.
From the matters communicated with the governance body, we determine those matters that were ofmost significance in the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in the auditor’s report unless law or regulation precludes publicdisclosure about the matter or when, in extremely rare circumstances, we determine that a matter shouldnot be communicated in the auditor’s report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
| Sichuan Huaxin (Group) CPA (Special General Partnership) Chengdu China | China CPA: Li Wulin (Project Partner) China CPA: Tang Fangmo China CPA: Xia Hongbo April 22, 2022 |
II. Financial Statements
Consolidated Balance Sheet
2021-12-31Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
| Item | Notes | 2021-12-31 | 2020-12-31 |
| Current assets: | |||
| Cash at bank and on hand | 3,001,930,882.38 | 6,264,168,242.03 | |
| Settlement provisions | |||
| Lending to banks and other financial institutions | |||
| Held-for-trading financial assets | 10,617,668.58 | 1,531,863,068.12 | |
| Derivative financial assets | |||
| Notes receivable | 1,576,925,682.02 | 530,962,356.27 | |
| Accounts receivable | 2,915,527,149.08 | 1,069,352,776.17 | |
| Receivables financing | 11,406,947,347.71 | 9,711,898,567.92 | |
| Prepayments | 1,606,545,040.83 | 1,113,458,878.37 | |
| Premium receivable | |||
| Reinsurance receivable | |||
| Reinsurance contract reserve receivable | |||
| Other receivables | 611,985,134.57 | 797,517,755.34 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Reverse repo | |||
| Inventories | 5,682,791,568.04 | 2,773,077,527.98 | |
| Contract assets | 715,103,024.30 | 988,680,196.66 | |
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 1,220,643,137.83 | 810,572,652.99 | |
| Total current assets | 28,749,016,635.34 | 25,591,552,021.85 | |
| Non-current assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 455,798,325.58 | 477,736,082.22 | |
| Other equity investments | 153,551,598.71 | 153,445,100.85 | |
| Other non-current financial assets | 3,146,248.25 | 1,258,097.00 | |
| Investment properties | 112,342,965.02 | 102,993,048.15 | |
| Fixed assets | 37,299,171,038.78 | 29,829,602,625.00 | |
| Construction in progress | 10,636,400,885.06 | 2,997,901,620.59 | |
| Biological assets | 3,637,671.91 | 91,397.35 | |
| Oil and gas assets | |||
| Right-of-use assets | 4,376,242,263.30 | - | |
| Intangible assets | 2,410,841,890.16 | 1,663,705,788.75 | |
| R&D expenses | |||
| Goodwill | 746,573,277.73 | 635,818,717.99 | |
| Deferred expenses | 261,810,537.42 | 835,269,963.57 | |
| Deferred tax assets | 600,832,119.58 | 415,550,864.14 | |
| Other non-current assets | 2,440,626,665.32 | 1,547,022,743.45 | |
| Total non-current assets | 59,500,975,486.82 | 38,660,396,049.06 | |
| Total assets | 88,249,992,122.16 | 64,251,948,070.91 | |
| Current liabilities: | |||
| Short-term borrowings | 1,375,230,141.70 | 2,349,154,525.77 | |
| Borrowings from central bank | |||
| Borrowings from banks and other financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 9,957,923,070.67 | 9,411,924,434.78 | |
| Accounts payable | 8,151,270,076.21 | 3,917,320,980.64 | |
| Advances from customers | 102,259,825.29 | 35,072,100.83 | |
| Contract liabilities | 3,112,027,804.79 | 2,302,728,492.73 | |
| Sale of financial assets to be repurchased | |||
| Inward deposits | |||
| Payments from sale and purchase of securities on behalf of customers | |||
| Payments from underwriting securities on behalf of customers | |||
| Employee benefits payable | 1,388,757,870.41 | 736,363,100.05 | |
| Taxes payable | 815,986,908.56 | 220,414,765.91 | |
| Other payable | 761,620,932.59 | 743,639,264.91 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Service charge and commission payable | |||
| Reinsurance receivable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 2,487,029,263.29 | 2,533,702,158.71 | |
| Other current liabilities | 207,540,516.40 | 130,204,120.53 | |
| Total current liabilities | 28,359,646,409.91 | 22,380,523,944.86 | |
| Non-current liabilities: | |||
| Reinsurance contract reserve | |||
| Long-term borrowings | 11,441,029,860.16 | 6,296,585,539.34 | |
| Bonds payable | 410,493,072.19 | 410,096,446.33 | |
| Including: Preference share | |||
| Perpetual bond | |||
| Lease liabilities | 2,500,641,465.80 | - | |
| Long-term payables | 1,648,303,239.69 | 2,526,572,275.65 | |
| Long-term employee benefits payable | 649,891,600.00 | - | |
| Estimated liabilities | |||
| Deferred income | 900,673,699.85 | 782,273,717.14 | |
| Deferred tax liability | 682,712,636.40 | 311,949,837.40 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 18,233,745,574.09 | 10,327,477,815.86 | |
| Total liabilities | 46,593,391,984.00 | 32,708,001,760.72 | |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,548,184.00 | 4,501,548,184.00 | |
| Other equity instruments | |||
| Including: Preference share | |||
| Perpetual bond | |||
| Capital surplus | 16,107,859,721.40 | 16,105,693,787.44 | |
| Less: Treasury shares | |||
| Other comprehensive income | -82,307,403.96 | -73,914,221.72 | |
| Special reserve | 15,918,034.03 | 16,401,063.07 | |
| Surplus reserve | 1,414,948,005.57 | 925,322,362.44 | |
| General risk reserve | |||
| Undistributed profit | 15,544,604,417.32 | 9,066,353,854.50 | |
| Total equity attributable to owners or shareholders of parent company | 37,502,570,958.36 | 30,541,405,029.73 | |
| Minority interest | 4,154,029,179.80 | 1,002,541,280.46 | |
| Total owners’ equity (or shareholders' equity) | 41,656,600,138.16 | 31,543,946,310.19 | |
| Total liabilities and owners’ equity (or shareholders' equity) | 88,249,992,122.16 | 64,251,948,070.91 | |
Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Parent Balance Sheet
2021-12-31
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
| Item | Notes | 2021-12-31 | 2020-12-31 |
| Current assets: | |||
| Cash at bank and on hand | 1,970,060,333.61 | 5,430,260,350.86 | |
| Held-for-trading financial assets | - | 1,500,000,000.00 | |
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 40,695,659.25 | 3,002,746.85 | |
| Receivables financing | 109,493,387.71 | 69,390,676.70 | |
| Prepayments | 108,614,897.08 | 16,500,340.59 | |
| Other receivables | 20,560,977,497.02 | 12,569,916,260.88 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 261,237,746.52 | 235,553,546.57 | |
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 2,541,944.34 | 11,747,755.66 | |
| Total current assets | 23,053,621,465.53 | 19,836,371,678.11 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 3,779,357,407.99 | 3,821,033,136.03 | |
| Long-term equity investments | 17,409,956,118.46 | 13,836,401,258.90 | |
| Other equity investments | 153,551,598.71 | 153,445,100.85 | |
| Other non-current financial assets | |||
| Investment properties | 36,946,716.47 | 38,690,960.02 | |
| Fixed assets | 318,040,343.39 | 298,259,368.75 | |
| Construction in progress | 32,573,013.72 | 26,343,888.97 | |
| Biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 186,547,779.55 | - | |
| Intangible assets | 59,947,661.65 | 60,200,180.33 | |
| R&D expenses | |||
| Goodwill | |||
| Deferred expenses | 28,608,471.43 | 18,576,273.26 | |
| Deferred tax assets | 1,718,240.52 | 1,610,507.55 | |
| Other non-current assets | |||
| Total non-current assets | 22,007,247,351.89 | 18,254,560,674.66 | |
| Total assets | 45,060,868,817.42 | 38,090,932,352.77 | |
| Current liabilities: | |||
| Short-term borrowings | 1,000,952,777.78 | 1,899,865,349.31 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 210,000,000.00 | 300,000,000.00 | |
| Accounts payable | 192,746,374.17 | 81,247,275.28 | |
| Advances from customers | 980,272.02 | 1,921,719.85 | |
| Contract liabilities | 133,018,997.22 | 122,226,302.00 | |
| Employee benefits payable | 75,932,124.36 | 93,517,635.88 | |
| Taxes payable | 6,854,246.18 | 6,703,834.73 | |
| Other payable | 7,261,257,606.36 | 3,898,411,472.34 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 180,364,861.73 | 370,178,150.11 | |
| Other current liabilities | 500.83 | 126,263.87 | |
| Total current liabilities | 9,062,107,760.65 | 6,774,198,003.37 | |
| Non-current liabilities: | |||
| Long-term borrowings | 4,066,980,000.00 | 3,405,262,828.00 | |
| Bonds payable | 410,493,072.19 | 410,096,446.33 | |
| Including: preference share | |||
| Perpetual bond | |||
| Lease liabilities | 175,574,283.65 | - | |
| Long-term payables | 875,898,885.36 | 875,898,885.36 | |
| Long-term employee benefits payable | 37,740,000.00 | - | |
| Estimated liabilities | |||
| Deferred income | |||
| Deferred tax liability | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 5,566,686,241.20 | 4,691,258,159.69 | |
| Total liabilities | 14,628,794,001.85 | 11,465,456,163.06 | |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,548,184.00 | 4,501,548,184.00 | |
| Other equity instruments | |||
| Including: preference share | |||
| Perpetual bond | |||
| Capital surplus | 17,082,993,947.39 | 17,084,837,736.04 | |
| Less: Treasury shares | |||
| Other comprehensive income | 7,122,885.47 | 6,757,300.85 | |
| Special reserve | |||
| Surplus reserve | 1,414,948,005.57 | 925,322,362.44 | |
| Undistributed profit | 7,425,461,793.14 | 4,107,010,606.38 | |
| Total owners’ equity (or shareholders' equity) | 30,432,074,815.57 | 26,625,476,189.71 | |
| Total liabilities and owners’ equity (or shareholders' equity) | 45,060,868,817.42 | 38,090,932,352.77 | |
Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Consolidated Profit Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | Notes | 2021 | 2020 |
| I. Total operating revenue | 63,491,070,520.12 | 44,200,270,334.23 | |
| Including: Operating revenue | 63,491,070,520.12 | 44,200,270,334.23 | |
| Interest income | |||
| Earned premium | |||
| Service charge and commission income | |||
| II. Total operating cost | 52,733,684,669.80 | 41,070,717,427.55 | |
| Including: Operating cost | 45,918,101,338.17 | 36,648,405,064.38 | |
| Interest expense | |||
| Service charge and commission expense | |||
| Cash surrender value | |||
| Net claims | |||
| Net appropriation of claims reserve | |||
| Policy dividend expense |
| Reinsurance expense | |||
| Tax and surcharge | 275,955,240.38 | 124,045,656.13 | |
| Sales expense | 918,970,450.73 | 778,030,640.18 | |
| Management expense | 2,947,649,906.71 | 1,808,578,103.39 | |
| R&D expenses | 2,035,847,045.43 | 1,035,331,434.68 | |
| Financial expense | 637,160,688.38 | 676,326,528.79 | |
| Including: Interest expense | 909,680,869.13 | 682,296,633.96 | |
| Interest income | 340,874,721.03 | 57,540,093.05 | |
| Add: Other income | 359,499,729.72 | 303,549,939.09 | |
| Investment gain or loss (“-” for loss) | 42,536,586.67 | 1,569,378,017.50 | |
| Including: Gains or losses from investments into associates and joint ventures | -14,159,521.52 | 22,506,526.78 | |
| Gains from de-recognition of financial assets measured at amortized cost | |||
| Exchange gain or loss (“-” for loss) | |||
| Net exposure hedging gain or loss (“-” for loss) | |||
| Gain or loss from change in fair value (“-” for loss) | 5,754,600.46 | 4,863,068.12 | |
| Credit impairment loss (“-” for loss) | -123,656,047.25 | -25,239,864.43 | |
| Asset impairment loss (“-” for loss) | -129,121,084.08 | -267,765,939.43 | |
| Gain or loss from disposal of assets (“-” for loss) | -78,230,632.51 | -1,148,829.24 | |
| III. Operating profit (“-” for loss) | 10,834,169,003.33 | 4,713,189,298.29 | |
| Add: Non-operating revenue | 19,939,910.39 | 36,995,627.30 | |
| Less: Non-operating expense | 464,366,862.21 | 476,391,959.47 | |
| IV: Total profit (“-” for loss) | 10,389,742,051.51 | 4,273,792,966.12 | |
| Less: Income tax expense | 1,647,522,380.67 | 559,054,175.03 | |
| V. Net profit (“-” for net loss) | 8,742,219,670.84 | 3,714,738,791.09 | |
| (I) By continuation | |||
| 1. Going concern profit (“-” for net loss) | 8,742,219,670.84 | 3,714,738,791.09 | |
| 2. Discontinuation profit (“-” for net loss) | |||
| (II) By ownership attribution | |||
| 1. Net profit attributable to shareholders of the parent company (“-” for net loss) | 8,207,920,822.18 | 3,607,923,359.56 | |
| 2. Gain or loss to minority shareholders (“-” for net loss) | 534,298,848.66 | 106,815,431.53 | |
| VI. Other comprehensive income after tax | -8,662,660.90 | -42,114,020.67 | |
| (I) Other comprehensive income after tax attributable to owners of the parent company | -8,393,182.24 | -42,114,020.67 | |
| 1. Other comprehensive income that cannot be reclassified into profit or loss | 106,497.86 | 59,742.91 | |
| (1) Change from re-measurement of defined benefit plan | |||
| (2) Other comprehensive income that cannot be converted to profit or loss under equity method | |||
| (3) Change in fair value of other equity investments | 106,497.86 | 59,742.91 | |
| (4) Change in fair value of the Company's own credit risk | |||
| 2. Other comprehensive income that will be reclassified into profit or loss | -8,499,680.10 | -42,173,763.58 | |
| (1) Other comprehensive income that can be converted to profit or loss under equity method | 259,086.76 | - | |
| (2) Change in fair value of other debt investments | |||
| (3) Amount recorded into other comprehensive income due to reclassification of financial assets | |||
| (4) Reserve for credit impairment of other debt investments | |||
| (5) Cash flow hedge reserve | |||
| (6) Foreign currency translation | -8,758,766.86 | -42,173,763.58 | |
| (7) Others | |||
| (II) Other comprehensive income after tax attributable to minatory shareholders | -269,478.66 | - | |
| VII. Total other comprehensive income | 8,733,557,009.94 | 3,672,624,770.42 | |
| (I) Total other comprehensive income attributable to owners of the parent company | 8,199,527,639.94 | 3,565,809,338.89 | |
| (II) Total other comprehensive income attributable to minatory shareholders | 534,029,370.00 | 106,815,431.53 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | 1.8234 | 0.8581 | |
| (II) Diluted earnings per share (yuan/share) | 1.8234 | 0.8466 | |
The net income realized by the acquired business before business combinations under common control is0 yuan, the net income realized by the acquired business in the previous period is 0 yuan.Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Parent Profit StatementJan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | Notes | 2021 | 2020 |
| I. Operating revenue | 4,745,062,369.13 | 4,192,495,277.69 | |
| Less: Operating cost | 4,138,074,509.01 | 3,637,398,495.75 | |
| Tax and surcharge | 9,442,554.93 | 11,378,524.54 | |
| Sales expense | 136,155,655.40 | 102,341,946.30 | |
| Management expense | 284,114,028.78 | 263,765,902.77 | |
| R&D expenses | 123,549,069.00 | 82,199,172.38 | |
| Financial expense | 43,467,537.55 | 136,659,179.77 | |
| Including: Interest expense | 346,428,748.95 | 304,013,432.37 | |
| Interest income | 313,377,278.23 | 35,879,830.81 | |
| Add: Other income | 15,780,831.45 | 14,854,162.45 | |
| Investment gain or loss (“-” for loss) | 5,126,983,146.04 | 3,696,091,743.61 | |
| Including: Gains or losses from investments into associates and joint ventures | -10,820,494.85 | -3,090,231.86 | |
| Gains from de-recognition of financial assets measured at amortized cost | |||
| Net exposure hedging gain or loss (“-” for loss) | |||
| Gain or loss from change in fair value (“-” for loss) | |||
| Credit impairment loss (“-” for loss) | -233,666,771.33 | -57,089,598.72 | |
| Asset impairment loss (“-” for loss) | -24,020,900.00 | - | |
| Gain or loss from disposal of assets (“-” for loss) | 373,738.64 | 293,836.91 | |
| II. Operating profit (“-” for loss) | 4,895,709,059.26 | 3,612,902,200.43 | |
| Add: Non-operating revenue | 3,088,115.30 | 1,719,398.03 | |
| Less: Non-operating expense | 2,648,476.27 | 3,745,810.54 |
| III. Total profit (“-” for loss) | 4,896,148,698.29 | 3,610,875,787.92 | |
| Less: Income tax expenses | -107,732.97 | -934,631.09 | |
| IV. Net profit (“-” for net loss) | 4,896,256,431.26 | 3,611,810,419.01 | |
| (I) Net going concern profit (“-” for net loss) | 4,896,256,431.26 | 3,611,810,419.01 | |
| (II) Net discontinuation profit (“-” for net loss) | |||
| V. Other comprehensive income after tax | 365,584.62 | 59,742.91 | |
| (I) Other comprehensive income that cannot be reclassified into profit or loss | 106,497.86 | 59,742.91 | |
| 1. Change from re-measurement of defined benefit plan | |||
| 2. Other comprehensive income that cannot be converted to profit or loss under equity method | |||
| 3. Change in fair value of other equity investments | 106,497.86 | 59,742.91 | |
| 4. Change in fair value of the Company's own credit risk | |||
| (II) Other comprehensive income that will be reclassified into profit or loss | 259,086.76 | ||
| 1. Other comprehensive income that can be converted to profit or loss under equity method | 259,086.76 | ||
| 2. Change in fair value of other debt investments | |||
| 3. Amount recorded into other comprehensive income due to reclassification of financial assets | |||
| 4. Reserve for credit impairment of other debt investments | |||
| 5. Cash flow hedge reserve | |||
| 6. Foreign currency translation | |||
| 7. Others | |||
| VI. Total comprehensive income | 4,896,622,015.88 | 3,611,870,161.92 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | |||
| (II) Diluted earnings per share (yuan/share) | |||
Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Consolidated Cash Flow Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | Notes | 2021 | 2020 |
| I. Cash flows generated from operating activities: | |||
| Cash received from sales of goods and rendering of services | 56,533,317,822.08 | 37,442,245,418.41 | |
| Net increase in customer deposits and interbank deposits | |||
| Net increase in borrowings from central bank | |||
| Net increase in borrowings from other financial institutions | |||
| Cash received from premium receipts for original insurance contracts | |||
| Net cash received from re-insurance service | |||
| Net increase in deposits and investments from policyholders | |||
| Cash received from interest, service charge and commission | |||
| Net increase in borrowings from others | |||
| Net increase in repo service | |||
| Net cash received from sale and purchase of securities on behalf of customers | |||
| Tax refunds received | 590,036,800.90 | 423,961,983.83 | |
| Other cash received relating to operating activities | 1,174,476,733.25 | 775,771,262.55 | |
| Subtotal of cash inflows from operating activities | 58,297,831,356.23 | 38,641,978,664.79 | |
| Cash paid for purchase of goods and services | 44,658,781,109.98 | 31,447,680,659.72 | |
| Net increase in customer loans and advances | |||
| Net increase in deposits in central bank and other banks | |||
| Cash paid for claims of original insurance contracts | |||
| Net increase in lending to other banks | |||
| Cash paid for interest, service charge and commission | |||
| Cash paid for policy dividend | |||
| Cash paid to and for employees | 3,196,053,127.99 | 2,730,865,444.91 | |
| Taxes paid | 1,796,494,444.14 | 709,964,246.65 | |
| Other cash paid relating to operating activities | 1,028,228,797.40 | 728,540,381.57 | |
| Subtotal of cash outflows from operating activities | 50,679,557,479.51 | 35,617,050,732.85 | |
| Net cash flows generated from operating activities | 7,618,273,876.72 | 3,024,927,931.94 | |
| II. Cash flows generated from investing activities: | |||
| Cash received due to recovery of investments | 4,833,376,932.32 | 384,107,500.00 | |
| Cash received from investment income | 123,201,544.94 | 96,464,234.31 | |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 123,667,405.09 | 133,040,127.00 | |
| Net cash received from disposal of subsidiaries and other operations | 1,225,758.29 | 1,778,884,791.31 | |
| Other cash received relating to investing activities | 467,644,949.90 | 502,607,812.51 | |
| Subtotal of cash inflows from investing activities | 5,549,116,590.54 | 2,895,104,465.13 | |
| Cash paid for acquisition or construction of fixed assets, intangible assets and other long-term assets | 13,975,125,087.15 | 5,486,604,092.60 | |
| Cash paid for investments | 3,398,650,423.15 | 1,981,421,297.00 | |
| Net increase in pledge loans | |||
| Net cash paid by subsidiaries and other operations | 1,259,384,961.47 | - | |
| Other cash paid relating to investing activities | 506,985,472.09 | 167,329,398.46 | |
| Subtotal of cash outflows from investing activities | 19,140,145,943.86 | 7,635,354,788.06 | |
| Net cash flow generated from investing activities | -13,591,029,353.32 | -4,740,250,322.93 | |
| III. Cash flows generated from financing activities: | |||
| Cash received from investors | 2,731,415,000.00 | 6,419,669,790.00 | |
| Including: Cash received by subsidiaries from minority shareholders | 2,731,415,000.00 | 476,130,300.00 | |
| Cash received from borrowings | 13,172,158,951.98 | 14,436,194,796.08 | |
| Other cash received relating to financing activities | 343,181,178.57 | 1,094,045,631.00 | |
| Subtotal of cash inflows from financing activities | 16,246,755,130.55 | 21,949,910,217.08 | |
| Cash paid for debt repayment | 9,310,054,630.44 | 13,143,663,135.37 | |
| Cash paid for dividend or profit distribution, or interest payment | 1,726,682,632.19 | 1,299,112,282.65 | |
| Including: Dividend and profit paid by subsidiaries to minority shareholders | 217,972,571.50 | 64,286,181.74 | |
| Other cash paid relating to financing activities | 2,308,373,440.84 | 1,711,762,473.10 | |
| Subtotal of cash outflows from financing activities | 13,345,110,703.47 | 16,154,537,891.12 | |
| Net cash flow generated from financing activities | 2,901,644,427.08 | 5,795,372,325.96 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | -11,852,850.31 | -36,746,892.76 | |
| V. Net increase in cash and cash equivalents | -3,082,963,899.83 | 4,043,303,042.21 | |
| Add: Opening cash and cash equivalents | 5,986,042,619.46 | 1,942,739,577.25 | |
| VI. Closing cash and cash equivalents | 2,903,078,719.63 | 5,986,042,619.46 |
Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Parent Cash Flow Statement
Jan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | Notes | 2021 | 2020 |
| I. Cash flows generated from operating activities | |||
| Cash received from sales of goods and rendering of services | 4,719,527,304.66 | 4,347,037,676.95 | |
| Tax refunds received | - | 68,193.57 | |
| Other cash received relating to operating activities | 119,239,810.87 | 97,529,785.17 | |
| Subtotal of cash inflows from operating activities | 4,838,767,115.53 | 4,444,635,655.69 | |
| Cash paid for purchase of goods and services | 4,170,583,130.41 | 3,641,589,698.05 | |
| Cash paid to and for employees | 335,195,029.61 | 346,227,657.01 | |
| Taxes paid | 11,870,127.73 | 11,736,797.15 | |
| Other cash paid relating to operating activities | 212,211,511.38 | 137,244,175.61 | |
| Subtotal of cash outflows from operating activities | 4,729,859,799.13 | 4,136,798,327.82 | |
| Net cash flows generated from operating activities | 108,907,316.40 | 307,837,327.87 | |
| II. Cash flows generated from investing activities: | |||
| Cash received due to recovery of investments | 4,665,314,477.11 | 571,180,300.00 | |
| Cash received from investment income | 5,075,416,248.29 | 4,060,910,871.57 | |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 2,789,338.88 | 117,199,544.67 | |
| Net cash received from disposal of subsidiaries and other operations | - | - | |
| Other cash received relating to investing activities | 816,474.70 | - | |
| Subtotal of cash inflows from investing activities | 9,744,336,538.98 | 4,749,290,716.24 | |
| Cash paid for acquisition or construction of fixed assets, intangible assets and other long-term assets | 110,423,219.68 | 49,489,656.66 | |
| Cash paid for investments | 6,697,701,017.73 | 5,347,326,300.00 | |
| Net cash paid by subsidiaries and other operations | |||
| Other cash paid relating to investing activities | |||
| Subtotal of cash outflows from investing activities | 6,808,124,237.41 | 5,396,815,956.66 | |
| Net cash flow generated from investing activities | 2,936,212,301.57 | -647,525,240.42 | |
| III. Cash flows generated from financing activities: | |||
| Cash received from investors | - | 5,943,539,490.00 | |
| Cash received from borrowings | 5,490,022,450.94 | 10,630,759,167.28 | |
| Other cash received relating to financing activities | 3,228,660,151.11 | 3,946,866,493.29 | |
| Subtotal of cash inflows from financing activities | 8,718,682,602.05 | 20,521,165,150.57 | |
| Cash paid for debt repayment | 5,927,154,780.94 | 10,573,275,246.67 | |
| Cash paid for dividend or profit distribution, or interest payment | 1,317,238,048.86 | 1,080,839,135.95 | |
| Other cash paid relating to financing activities | 7,989,717,459.15 | 4,372,171,885.77 | |
| Subtotal of cash outflows from financing activities | 15,234,110,288.95 | 16,026,286,268.39 | |
| Net cash flow generated from financing activities | -6,515,427,686.90 | 4,494,878,882.18 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | 74,502.26 | -1,798,024.13 | |
| IV. Net increase in cash and cash equivalents | -3,470,233,566.67 | 4,153,392,945.50 | |
| Add: Opening cash and cash equivalents | 5,430,039,900.28 | 1,276,646,954.78 | |
| VI. Closing cash and cash equivalents | 1,959,806,333.61 | 5,430,039,900.28 | |
Company Head: Xie Yi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Lei Jiaowen
Consolidated Statement of Owner's Equity
Jan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | 2021 | ||||||||||||||
| Equity attributable to owners of parent company | Minority interest | Total owners’ equity | |||||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital surplus | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Sub-total | |||||
| Preference share | Perpetual bond | Others | |||||||||||||
| I. Closing balance of the previous year | 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 | ||||||
| Add: Changes in accounting policies | -155,171,503.88 | -155,171,503.88 | -4,243,682.67 | -159,415,186.55 | |||||||||||
| Correction of previous errors | |||||||||||||||
| Business combinations under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the current year | 4,501,548,184.00 | 16,105,693,787.44 | -73,914,221.72 | 16,401,063.07 | 925,322,362.44 | 8,911,182,350.62 | 30,386,233,525.85 | 998,297,597.79 | 31,384,531,123.64 | ||||||
| III. Current change (“-” for decrease) | 2,165,933.96 | -8,393,182.24 | -483,029.04 | 489,625,643.13 | 6,633,422,066.70 | 7,116,337,432.51 | 3,155,731,582.01 | 10,272,069,014.52 | |||||||
| (I) Total comprehensive income | -8,393,182.24 | 8,207,920,822.18 | 8,199,527,639.94 | 534,029,370.00 | 8,733,557,009.94 | ||||||||||
| (II) Capital invested and decreased by owners | - | 2,731,415,000.00 | 2,731,415,000.00 | ||||||||||||
| 1. Common shares invested by owners | - | 2,731,415,000.00 | 2,731,415,000.00 | ||||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||||||
| 3. Amount of share payment recorded into owners’ equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | 489,625,643.13 | -1,574,498,755.48 | -1,084,873,112.35 | -217,972,571.50 | -1,302,845,683.85 | ||||||||||
| 1. Withdrawal from surplus reserve | 489,625,643.13 | -489,625,643.13 | |||||||||||||
| 2. Withdrawal from general risk reserve | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -1,084,873,112.35 | -1,084,873,112.35 | -217,972,571.50 | -1,302,845,683.85 | |||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owners’ equity | |||||||||||||||
| 1. Capital surplus converted to capital (or share capital) | |||||||||||||||
| 2. Surplus reserve converted to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve offset loss | |||||||||||||||
| 4. Change in defined benefit plan converted to retained earnings | |||||||||||||||
| 5. Other comprehensive income converted to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | -483,029.04 | -483,029.04 | - | -483,029.04 | |||||||||||
| 1. Withdrawal in current period | 67,672,255.14 | 67,672,255.14 | 67,672,255.14 | ||||||||||||
| 2. Use in current period | 68,155,284.18 | 68,155,284.18 | 68,155,284.18 | ||||||||||||
| (VI) Others | 2,165,933.96 | 2,165,933.96 | 108,259,783.51 | 110,425,717.47 | |||||||||||
| IV. Closing balance of the current period | 4,501,548,184.00 | 16,107,859,721.40 | -82,307,403.96 | 15,918,034.03 | 1,414,948,005.57 | 15,544,604,417.32 | 37,502,570,958.36 | 4,154,029,179.80 | 41,656,600,138.16 | ||||||
| Item | 2020 | ||||||||||||||
| Equity attributable to owners of parent company | Minority interest | Total owners’ equity | |||||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital surplus | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | General risk reserve | Undistributed profit | Others | Sub-total | |||||
| Preference share | Perpetual bond | Others | |||||||||||||
| I. Closing balance of the 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 previous errors | |||||||||||||||
| Business combinations under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening 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. Current change (“-” for decrease) | 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) Capital invested and decreased by 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 shares 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 invested by 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 payment recorded into owners’ 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. Withdrawal from surplus reserve | 361,181,041.90 | -361,181,041.90 | - | - | |||||||||||
| 2. Withdrawal from general risk reserve | |||||||||||||||
| 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 carryover of owners’ equity | |||||||||||||||
| 1. Capital surplus converted to capital (or share capital) | |||||||||||||||
| 2. Surplus reserve converted to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve offset loss | |||||||||||||||
| 4. Change in defined benefit plan converted to retained earnings | |||||||||||||||
| 5. Other comprehensive income converted to retained earnings | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | -1,656,751.80 | - | -1,656,751.80 | - | -1,656,751.80 | ||||||||||
| 1. Withdrawal in current period | 46,066,158.86 | 46,066,158.86 | 46,066,158.86 | ||||||||||||
| 2. Use in 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. Closing balance of 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 | ||||||
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Lei Jiaowen
Parent Statement of Owner's Equity
Jan to Dec, 2021
Unit: Yuan Currency: CNY
| Item | 2021 | ||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital surplus | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owners’ equity | |||
| Preference share | Perpetual bond | Others | |||||||||
| I. Closing balance of the previous year | 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 | |||||
| Add: Changes in accounting policies | -3,306,489.02 | -3,306,489.02 | |||||||||
| Correction of previous errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 4,501,548,184.00 | 17,084,837,736.04 | 6,757,300.85 | 925,322,362.44 | 4,103,704,117.36 | 26,622,169,700.69 | |||||
| III. Current change (“-” for decrease) | -1,843,788.65 | 365,584.62 | 489,625,643.13 | 3,321,757,675.78 | 3,809,905,114.88 | ||||||
| (I) Total comprehensive income | 365,584.62 | 4,896,256,431.26 | 4,896,622,015.88 | ||||||||
| (II) Capital invested and decreased by owners | |||||||||||
| 1. Common shares invested by owners | |||||||||||
| 2. Capital invested by holders of other equity instruments | |||||||||||
| 3. Amount of share payment recorded into owners’ equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | 489,625,643.13 | -1,574,498,755.48 | -1,084,873,112.35 | ||||||||
| 1. Withdrawal from surplus reserve | 489,625,643.13 | -489,625,643.13 | - | ||||||||
| 2. Distribution to owners (or shareholders) | -1,084,873,112.35 | -1,084,873,112.35 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carryover of owners’ equity | |||||||||||
| 1. Capital surplus converted to capital (or share capital) | |||||||||||
| 2. Surplus reserve converted to capital (or share capital) | |||||||||||
| 3. Surplus reserve offset loss | |||||||||||
| 4. Change in defined benefit plan converted to retained earnings | |||||||||||
| 5. Other comprehensive income converted to retained earnings | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Withdrawal in current period | |||||||||||
| 2. Use in current period | |||||||||||
| (VI) Others | -1,843,788.65 | -1,843,788.65 | |||||||||
| IV. Closing balance of the current period | 4,501,548,184.00 | 17,082,993,947.39 | 7,122,885.47 | 1,414,948,005.57 | 7,425,461,793.14 | 30,432,074,815.57 | |||||
| Item | 2020 |
| Paid-up capital (or share capital) | Other equity instruments | Capital surplus | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owners’ equity | |||
| Preference share | Perpetual bond | Others | |||||||||
| I. Closing balance of the 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 previous errors | |||||||||||
| Others | |||||||||||
| II. Opening 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. Current change (“-” for decrease) | 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) Capital invested and decreased by owners | 618,953,588.00 | -854,235,969.85 | 10,438,034,921.25 | - | 10,202,752,539.40 | ||||||
| 1. Common shares invested by owners | 213,692,500.00 | 5,729,018,770.11 | 5,942,711,270.11 | ||||||||
| 2. Capital invested by 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 payment recorded into owners’ equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | 361,181,041.90 | -1,158,722,197.44 | -797,541,155.54 | ||||||||
| 1. Withdrawal from surplus reserve | 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 carryover of owners’ equity | |||||||||||
| 1. Capital surplus converted to capital (or share capital) | |||||||||||
| 2. Surplus reserve converted to capital (or share capital) | |||||||||||
| 3. Surplus reserve offset loss | |||||||||||
| 4. Change in defined benefit plan converted to retained earnings | |||||||||||
| 5. Other comprehensive income converted to retained earnings | |||||||||||
| 6. Others | |||||||||||
| (V) Special reserve | |||||||||||
| 1. Withdrawal in current period | |||||||||||
| 2. Use in current period | |||||||||||
| (VI) Others | |||||||||||
| IV. Closing balance of 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 | |||||
Company Head: Xie Yi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Lei Jiaowen
III. Company information
1. Company overview
"√ Applicable" "□ Not applicable"
(1) History
Tongwei Co., Ltd. (the “Company) is a stock limited company incorporated through the entire changeof Sichuan Tongwei Feed Co., Ltd. On October 21, 2000, as approved by Sichuan People's Government’sApproval on the Incorporation of Sichuan Tongwei Co., Ltd. (the Sichuan People's Government Letter[2000] No. 311), Sichuan Tongwei Feed Co., Ltd. was entirely changed and then incorporated into SichuanTongwei Co., Ltd. The Company's total share capital was converted from 111. 88 million yuan, the netassets of Sichuan Tongwei Feed Co., Ltd as of August 31, 2000 as audited by Sichuan Huaxin (Group)Accounting Firm Co., Ltd. to 111.88 million shares, with one yuan per share. On November 8, 2000, theCompany received the Business License from Sichuan Bureau of Industry and Commerce (registrationnumber: 5100001812986). On November 19, 2001, the State Administration for Industry and Commerceof the People's Republic of China approved the name change to Tongwei Co., Ltd. in its Notification onApproval of Enterprise Name Change of (Guo) MCBH [2001] No.419.
On February 16, 2004, as approved by China Securities Regulatory Commission in the ZJXK [2004]No.10, the Company publicly issued A-share common stock of 60 million yuan. All the shares were issuedto investors in secondary market with a price of 7.50 yuan per share. The changed registered capital was171,880,000.00 yuan.
The plan for non-tradable share reform was approved in the shareholders meeting on Tongwei Co.,Ltd. non -tradable share reform on February 20, 2006. According to the plan, floating shareholders wouldget a consideration of 1.5 shares from non-floating shareholders for each 10 floating shares they hold. Assuch, floating shareholders obtained 9 million shares as the consideration. The registration of shares asresult of the reform was completed on March 3, 2006.
On May 25, 2006, the Company increased its share capital through capital surplus (5 shares per 10shares) and share bonus (5 shares per 10 shares). As a result of the conversion and bonus, the Companyhad a total of 343.76 million shares; on May 23, 2007, the Company again increased its share capitalthrough capital surplus (7 shares per 10 shares) and share bonus (3 shares per 10 shares), leading to a totalof 687.52 million shares.
On July 4, 2013, the Company issued 129,589,632 shares to Tongwei Group Co., Ltd. After that, theCompany had a total of 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 common shares of 238,324,880 yuan to 17 legal persons suchas Tongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such as TangGuangyue, the face value of each share was 1.00 yuan. After that, the share capital was 1,055,434,512shares.
On May 19, 2016, the Company increased its share capital through capital surplus (4 shares per 10shares) and share bonus (6 shares per 10 shares). As a result of the conversion and bonus, the Companyhad a total of 2,110,869,024 shares.
On June 22, 2016, the Company issued 350,262,697 shares to 8 institutions including Tianhong FundManagement Co., Ltd. After that, the Company had a total of 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 common shares of 922,901,629 yuan to Tongwei Group Co.,Ltd. The face value of each share was 1.00 yuan. After that, the share capital was 3,384,033,350 shares.
On December 23, 2016, the Company issued 498,338,870 shares to 5 institutions including EssenceFund. After that, the Company had a total of 3,882,372,220 shares.
As approved in (ZJXK [2018] No. 1730) from the CSRC, the Company issued 50 million convertiblecorporate bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; after approved in (ZLJGJDS[2019] No.052) from the Shanghai Stock Exchange, the convertible corporate bonds were listed for tradingon the Shanghai Stock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible Bondfor short, the bond code is 110054; the corporate stock was not lower than 130% (namely 15.96 yuan/share )of the current conversion price of Tongwei Convertible Bond for at least 15 trading days in 30 consecutivetrading days from January 14, 2020 to March 3, 2020; the redemption clause of "Tongwei ConvertibleBonds" has been triggered. The 6th meeting of the 7th board of directors approved the to exercise the early
redemption right to redeem all "Tongwei Convertible Bonds" registered on the "Redemption RegistrationDate"; the deadline of the redemption registration date is March 16, 2020; Tongwei Convertible Bondswith a face value of 4,979,353,000 yuan were converted into 405,483,464 company shares. After that, theCompany had a total of 4,287,855,684 shares.
On November 20, 2020, the Company issued 213,692,500 shares to 16 institutions includingChangdu Tongrui Industrial Partnership (Limited Partnership) Co., Ltd. After that, the Company had atotal of 4,501,548,184 shares.
(2) Registered address, organizational form and headquarters address
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) Business nature and main operating activities
1) Business nature
The Company is engaged in agriculture, forestry, livestock husbandry and fishery. After thecombination of Yongxiang Co., Ltd., Tongwei New Energy Co., Ltd. and Tongwei Solar (Hefei) Co., Ltd.under common control in 2016, it added "PV business".
2) Main operating activities
Production and sale of Tongwei brand fish feed, swine feed, poultry feed and fresh water and seawateraquaculture feed; aquaculture and seedling cultivation; production, wholesale and retail of veterinarydrugs and feed additives; slaughtering and processing fish, pig and duck food and selling live fish;production and sales of polysilicon and monocrystalline silicon, polyvinyl chloride and its series products,sodium hydroxide and ancillary products, carbide slag cement; research and development of new chemicalproducts; production and sales of monocrystalline and multicrystalline silicon wafers, solar cell wafers,solar cell modules, solar heat pipes, solar water heaters, water heating systems and solar photo thermalapplications; energy technology research and development; research and development of solar powergeneration technology and technical consultation; design and construction of power engineering andpower system installation engineering; sales of PV equipment and providing technical advice; solar powergeneration; electricity supply; electrical installation; engineering design; science and technologypromotion and application service industry; comprehensive utilization of waste resources; environmentalgovernance industry; wholesale and retail of commodities; rental and commercial services; import andexport industry; internet information service, etc.
(4) Largest shareholder and actual controller
The largest shareholder is Tongwei Group Co., Ltd. ("Tongwei Group"), and the actual controller isLiu Hanyuan.
(5) Approver of financial statements
The Company's financial statements are approved by its board of directors. The financial report forcurrent period was approved by the 28th meeting of the 7th board of directors on April 22, 2022.
2. Scope of consolidation
"√ Applicable" "□ Not applicable"
(1) The 82 first-level subsidiaries consolidated in current period are listed as follows:
| No. | Subsidiary name | Short name | Number of its subsidiaries | Shareholding (%) | Voting right (%) |
| 1 | Yongxiang Co., Ltd. | Yongxiang | 10 | 100 | 100 |
| 2 | Tongwei Solar (Hefei) Co., Ltd. | Hefei Solar | 9 | 100 | 100 |
| 3 | Tongwei New Energy Co., Ltd. | Tongwei New Energy | 137 | 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 | Zaozhuang Tongwei Feed Co., Ltd. | Zaozhuang Feed | 100 | 100 | |
| 12 | He’nan Tongwei Feed Co., Ltd. | He’nan Feed | 100 | 100 | |
| 13 | Changchun Tongwei Feed Co., Ltd. | Changchun Feed | 100 | 100 | |
| 14 | Chengdu Tongwei Aquaculture Technology Co., Ltd. | Chengdu Technology | 100 | 100 |
| 15 | Chengdu Tongwei Sanxin Pharmaceutical Co., Ltd. | Sanxin Pharmaceutical | 70 | 70 | |
| 16 | Tongwei (Hainan) Aquatic Products Co., Ltd. | Hainan Products | 100 | 100 | |
| 17 | Hainan Haiyi Aquatic Products Feed Co., Ltd. | Hainan Haiyi | 100 | 100 | |
| 18 | Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Zhuhai Haiyi | 100 | 100 | |
| 19 | Hainan Haiyi Aquatic Seed Co., Ltd. | Hainan Seed | 1 | 49.95 | 49.95 |
| 20 | Nantong Bada Feed Co., Ltd. | Nantong Bada | 2 | 100 | 100 |
| 21 | Nanning Tongwei Feed Co., Ltd. | Nanning Feed | 100 | 100 | |
| 22 | Tianjin Tongwei Feed Co., Ltd. | Tianjin Feed | 100 | 100 | |
| 23 | Huaian Tongwei Feed Co., Ltd. | Huaian Feed | 100 | 100 | |
| 24 | Jieyang Tongwei Feed Co., Ltd. | Jieyang Feed | 100 | 100 | |
| 25 | Chengdu Ronglai Tongwei Feed Co., Ltd. | Ronglai Feed | 80 | 80 | |
| 26 | Yangzhou Tongwei Feed Co., Ltd. | Yangzhou Feed | 100 | 100 | |
| 27 | Langfang Tongwei Feed Co., Ltd. | Langfang Feed | 100 | 100 | |
| 28 | Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Animal Nutrition | 100 | 100 | |
| 29 | Panzhihua Tongwei Feed Co., Ltd. | Panzhihua Tongwei | 100 | 100 | |
| 30 | Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Foshan Technology | 100 | 100 | |
| 31 | Tongwei Agricultural Finance Guarantee Co., Ltd. | Tongwei Guarantee | 100 | 100 | |
| 32 | Sichuan Tongguang Construction Engineering Co., Ltd. | Tongguang Construction | 100 | 100 | |
| 33 | Chongqing Changshou Tongwei Feed Co., Ltd. | Changshou Feed | 100 | 100 | |
| 34 | Qianxi Tongwei Feed Co., Ltd. | Qianxi Feed | 100 | 100 | |
| 35 | Lianyungang Tongwei Feed Co., Ltd. | Lianyungang Feed | 100 | 100 | |
| 36 | Chengdu Tongwei Automation Equipment Co., Ltd. | Automation Company | 80 | 80 | |
| 37 | Foshan Tongwei Feed Co., Ltd. | Foshan Feed | 100 | 100 | |
| 38 | Zibo Tongwei Feed Co., Ltd. | Zibo Feed | 76 | 76 | |
| 39 | Tongwei (Dafeng) Feed Co., Ltd. | Dafeng Feed | 51 | 51 | |
| 40 | Kunming Tongwei Feed Co., Ltd. | Kunming Feed | 100 | 100 | |
| 41 | Zibo Tongwei Food Co., Ltd. | Zibo Food | 100 | 100 | |
| 42 | Foshan Gaoming Tongwei Feed Co., Ltd. | Gaoming Feed | 100 | 100 | |
| 43 | Tianmen Tongwei Biotechnology Co., Ltd. | Tianmen Biotechnology | 100 | 100 | |
| 44 | Binyang Tongwei Feed Co., Ltd. | Binyang Feed | 100 | 100 | |
| 45 | Fuzhou Tongwei William Feed Co., Ltd. | Fuzhou Feed | 65 | 65 | |
| 46 | Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan Feed | 100 | 100 | |
| 47 | Haerbin Tongwei Feed Co., Ltd. | Haerbin Feed | 100 | 100 | |
| 48 | Nanjing Tongwei Aquaculture Technology Co., Ltd. | Nanjing Technology | 100 | 100 | |
| 49 | Tongwei Holdings PTE. Ltd. | Singapore Holdings | 10 | 100 | 100 |
| 50 | Tongwei Industrial (Tibet) Co., Ltd. | Tibet Industrial | 100 | 100 | |
| 51 | Chizhou Tongwei Feed Co., Ltd. | Chizhou Feed | 100 | 100 | |
| 52 | Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu Seed | 100 | 100 | |
| 53 | Hengshui Tongwei Feed Co., Ltd. | Hengshui Feed | 100 | 100 | |
| 54 | Qingyuan Tongwei Feed Co., Ltd. | Qingyuan Feed | 100 | 100 | |
| 55 | Honghu Tongwei Feed Co., Ltd. | Honghu Feed | 100 | 100 | |
| 56 | Sichuan Tongwei Food Co., Ltd. | Sichuan Food | 10 | 80 | 80 |
| 57 | Hanshou Tongwei Feed Co., Ltd. | Hanshou Tongwei | 100 | 100 | |
| 58 | Tianmen Tongwei Aquaculture Technology Co., Ltd. | Tianmen Technology | 100 | 100 | |
| 59 | Sichuan Fusion Link Co., Ltd. | Fusion Link | 60 | 60 | |
| 60 | Sichuan Willtest Technology Co., Ltd. | Sichuan Test | 1 | 85.04 | 85.04 |
| 61 | Wuxi Tongwei Biotechnology Co., Ltd. | Wuxi Biotechnology | 100 | 100 | |
| 62 | Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang Solar | 100 | 100 | |
| 63 | Sichuan Tongwei Feed Co., Ltd. | Sichuan Tongwei | 100 | 100 | |
| 64 | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | Qingdao Hairen | 55.5 | 55.5 | |
| 65 | Nanning Tongwei Biotechnology Co., Ltd. | Nanning Biotechnology | 100 | 100 | |
| 66 | Nanchang Tongwei Biotechnology Co., Ltd. | Nanchang Biotechnology | 80 | 80 | |
| 67 | Yangjiang Haiyi Securities Co., Ltd. | Yangjiang Haiyi | 100 | 100 | |
| 68 | Zhanjiang Haixianfeng Bio-tech Co., Ltd. | Zhanjiang Haixianfeng | 51 | 51 | |
| 69 | Sichuan Chunyuan Ecological Farming Co., Ltd. | Chunyuan Farming | 100 | 100 | |
| 70 | Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu Fishery-PV Technology | 100 | 100 | |
| 71 | Maoming Tongwei Biotechnology Co., Ltd. | Maoming Biotechnology | 100 | 100 | |
| 72 | Hainan Tongwei Biotechnology Co., Ltd. | Hainan Biotechnology | 100 | 100 | |
| 73 | Guangdong Tongwei Biotechnology Co., Ltd. | Guangdong Biotechnology | 100 | 100 | |
| 74 | Ningbo Tech-bank Feed Technology Co., Ltd. | Ningbo Feed | 100 | 100 | |
| 75 | Qingdao Qihao Biotechnology Co., Ltd. | Qihao Biotechnology | 1 | 100 | 100 |
| 76 | Ningbo Tech-bank Biotechnology Co., Ltd. | Ningbo Biotechnology | 100 | 100 | |
| 77 | Yancheng Tech-bank Feed Technology Co., Ltd. | Yancheng Tech-bank | 51 | 51 | |
| 78 | Nanning Aigefei Feed Co., Ltd. | Nanning Aigefei | 51 | 51 | |
| 79 | Bengbu Tech-bank Feed Technology Co., Ltd. | Bengbu Tech-bank | 51 | 51 | |
| 80 | Hubei Tech-bank Feed Co., Ltd. | Hubei Tech-bank | 51 | 51 | |
| 81 | Dongying Tech-bank Feed Technology Co., Ltd. | Dongying Tech-bank | 51 | 51 | |
| 82 | Shenyang Tongwei Biotechnology Co., Ltd. | Shenyang Biotechnology | 100 | 100 | |
| Total | 181 |
(2) New first-level subsidiaries consolidated in current period
| Subsidiary name | Reason for change |
| Ningbo Tech-bank Feed Technology Co., Ltd. | Business combinations under different control |
| Qingdao Qihao Biotechnology Co., Ltd. | Business combinations under different control |
| Ningbo Tech-bank Biotechnology Co., Ltd. | Business combinations under different control |
| Yancheng Tech-bank Feed Technology Co., Ltd. | Business combinations under different control |
| Nanning Aigefei Feed Co., Ltd. | Business combinations under different control |
| Bengbu Tech-bank Feed Technology Co., Ltd. | Business combinations under different control |
| Hubei Tech-bank Feed Co., Ltd. | Business combinations under different control |
| Dongying Tech-bank Feed Technology Co., Ltd. | Business combinations under different control |
| Shenyang Tongwei Biotechnology Co., Ltd. | New establishment through investment |
(3) First-level subsidiaries cancelled in current period
None.
(4) First-level subsidiaries that have not been absorbed, merged or disposed of in current periodPlease refer to "Change in Scope of Consolidation” and "Rights and Interests in Other Entities" fordetails.
IV. Basis of preparation
1. Basis of preparation
The Company's financial statements are prepared based on the assumption of going concern andactual transactions and matters, in accordance with the Accounting Standards for Business Enterprisesissued by the Ministry of Finance and its supporting guidelines as well as explanations ("ASBE") and thedisclosure provisions in the Rules for Preparation and Submission of Information Disclosure byCompanies that Offer Securities to the Public (No. 15)— General Rules on the Financial Statementsrevised by CSRC in 2014.
2. Going concern
"√ Applicable" "□ Not applicable"
The Company's business activities have sufficient financial support. To the best knowledge of theCompany and considering the macro-policy risks, market operation risks, current or long-term profitability,solvency and financial resources support of the enterprise and other factors, the Company believes thatthere are no matters or situations that have serious doubts about the Company's going concern in the next12 months, and it is reasonable to prepare financial statements on the basis of going concern.
V. Significant accounting policies and accounting estimates
Notes to the specific accounting policies and accounting estimates:
1. Statement of compliance
These financial statements and their notes prepared by the Company comply with the requirementsset forth in Accounting Standards for Business Enterprises and accurately and completely reflect thefinancial condition on December 31, 2021 and the operation results, cash flows and other necessaryinformation of the Company for the reporting period. Additionally, the Company’s financial statements inall major aspects comply with the requirements for the disclosure of the financial statements and the notesin the Rules for the Preparation and Submission of Information Disclosure by Companies That OfferSecurities to the Public (No. 15) — General Rules on the Financial Statements revised by CSRC in 2014.
2. Accounting periods
Each accounting year starts from the January 1 to the December 31st of the same year.
3. Operating cycle
"√ Applicable" "□ Not applicable"
The operating cycle is the average period of time required for the Company from purchase of assetsused for processing to realization of cash and cash equivalents. For the Company, 12 months/yearconstitute an operating cycle which is used as a criterion for determining the liquidity of assets andliabilities.
4. Reporting currency
CNY is the reporting currency.
5. Accounting for business combinations under common control and under different control"√ Applicable" "□ Not applicable"
A business combination is a transaction or other event in which two or more businesses are combinedinto one reporting entity. Business combinations are classified into “common control” and “not commoncontrol” types.
(1) Business combination under common control
A business combination is a common control combination if the combining entities are ultimatelycontrolled by the same party (or parties) both before and after the combination and common control is nottransitory. For a business combination under common control, the entity that obtains the control of othercombining entities on the acquisition date is called acquirer and other called acquiree(s). Acquisition dateis when the acquirer actually obtains the control of the acquiree.
The share of owner’s equity of the acquiree in the carrying value recorded in the consolidatedfinancial statements of the ultimate controller is used to calculate the initial cost of long-term equityinvestment. An excess of consideration paid (or the total par value of shares issued) for the combination
over the carrying value of net assets obtained from the acquisition is allocated to capital surplus (sharepremium) first with any remaining excess charged entirely to retained earnings.
Expenses directly incurred by the acquirer that are attributed to the combination are carried intocurrent profit and loss as incurred.
(2) Business combination under different control
A business combination is not a common control combination if the combining entities are notultimately controlled by the same party (or parties) before and after the combination. For a businesscombination under different control, the entity that obtains the control of other combining entities on theacquisition date is called acquirer and other called purchased parties. Acquisition date is when the acquireractually obtains the control of the acquiree.
For a business combination under different control, the combination cost includes the fair value ofassets paid, liabilities incurred or assumed, and equity securities issued on the acquisition date by theacquirer for obtaining the control of the acquiree; intermediary expenses including audit, legal service andassessment and consulting services, and other management expenses for the combination are carried intocurrent profit and loss as incurred. The transaction cost of issuing equity securities or debt securities forthe purpose of a business combination is carried into the initial recognition amount of such equitysecurities or debt securities. Contingent consideration is measured at fair value on acquisition date, andwhen recognition criteria are met within 12 months after the acquisition date, it is treated as an adjustmentto the cost of the combination with a corresponding effect on goodwill. Combination cost incurred to theacquirer and net identifiable assets obtained in the acquisition are measured at the fair value on theacquisition date. The excess of the consideration paid for the combination over the fair value of netidentifiable assets obtained from the acquiree is recognized as goodwill. The excess of fair value of netidentifiable assets obtained from the acquiree over the consideration paid for the combination is carriedinto current profit and loss if the excess remains after the fair value of measurement of all identifiableassets, liabilities and contingent liabilities obtained from the acquiree, as well as the combination cost isre-reviewed.
Where the deductible temporary difference obtained by the acquirer from the acquiree is notrecognized due to its non-compliance with criteria for the recognition of deferred tax assets at theacquisition date, if any new or further evidence obtained within 12 months after the acquisition date revealsthat criteria was met at the acquisition date, and it is expected that the economic benefit brought by suchdeductible temporary difference on acquisition date can be realized, relevant deferred income tax assetsmust be recognized with goodwill decreased (where goodwill is insufficient to offset, the balance must berecognized as current profit and loss); all other deferred income tax assets recognized that are linked withbusiness combination must be included in current profit and loss.
For a business combination under different control completed through multiple transactions, the“package deal” criteria in Notice of the Ministry of Finance on Printing and Distributing the InterpretationNo. 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 FinancialStatements (refer to "Methods used for preparing consolidated financial statements") are applied todetermine whether these transactions form a package deal. Accounting for a package deal is similar to theaccounting for “long-term equity investments”; otherwise, accounting is performed by separate financialstatements and consolidated financial statements.
In separate financial statements, the sum of carrying value of the equity investment in the acquireeheld by the acquirer before the acquisition date and the cost of investment newly added on the acquisitiondate shall be taken as initial investment cost of the investment; where the equity held before the acquisitiondate involves other comprehensive income, the investment and other comprehensive incomes relatingthereto shall be subject accounting treatment using the same basis on which the acquiree directly disposesrelated assets or liabilities (namely, except for the corresponding share in the change arising from theacquiree’s re-measurement of net liabilities or net assets of defined benefit plan under equity method, therest will be carried into investment income of current period).
In consolidated financial statements, the sum of carrying value of the equity investment in theacquiree held by the acquirer before the acquisition date is remeasured at fair value at the acquisition date,with the difference between fair value and carrying value carried into current investment income; wherethe equity held before the acquisition date involves other comprehensive income, the investment and othercomprehensive incomes relating thereto shall be subject accounting treatment using the same basis onwhich the acquiree directly disposes related assets or liabilities (namely, except for the correspondingshare in the change arising from the acquiree’s re-measurement of net liabilities or net assets of defined
benefit plan under equity method, the rest will be carried into investment income of the period in whichthe acquisition data fall).
6. Methods used for preparing consolidated financial statements
"√ Applicable" "□ Not applicable"
(1) Principles for determining the scope of consolidation
The scope of consolidation is determined on the basis of control. Control means the power of theCompany over the investee; the Company is entitled to variable returns by participating in related activitiesof the investee and able to influence the amount of return by exercising the power. The scope ofconsolidation covers the Company and all of its subsidiaries. Subsidiaries are entities under control of theCompany.
(2) Methods used for preparing consolidated financial statements
The Company starts to include a subsidiary into the scope of consolidation from the date when itobtains the actual control over the subsidiary, and ceases including the subsidiary into the scope ofconsolidation from the date when it loses the actual control over the subsidiary. For the disposed ofsubsidiary, the operation results and cash flows until the disposal date have been appropriately includedin the consolidated profit statement and consolidated cash flow statement; disposal of subsidiaries duringthe current period do not affect the opening balances in the consolidated balance sheet. For a newsubsidiary from a business combination under different control, the operation results and cash flows afterthe disposal date have been appropriately included in the consolidated profit statement and consolidatedcash flow statement; and the opening balances and comparison numbers in consolidated financialstatements are not adjusted. For a new subsidiary from a business combination under common control andthe acquiree from Absorption combination, the operation results and cash flows from the start of theacquisition period to the acquisition date have been appropriately included in the consolidated profitstatement and consolidated cash flow statement, with the comparison numbers in the consolidatedfinancial statements adjusted.
Regarding preparation of consolidation financial statement, if there are any difference between anysubsidiary and the Company in relation to the adopted accounting policies or accounting periods,necessary adjustments shall be made to financial statements of such subsidiary such that these differencesare eliminated. For a subsidiary obtained through business combination under different control,adjustments to its financial statements shall be based on the fair value of net identifiable assets on theacquisition date.
All material intra-company balances, transactions and unrealized profits are offset in preparation ofconsolidated financial statements.
The shares of shareholders' equity and current net profit and loss that are not attributed to theCompany, are respectively presented as minority interest, and monitory interest gain or loss in the itemsof shareholders' equity and net profit in the consolidated financial statements. The share of current netprofit and loss that is attributed to minority interest is presented as the minority interest gain or loss in thenet profit item of the consolidated financial statements. If the loss borne by minority shareholders exceedsthe amount they enjoy in the shareholders' equity at the beginning of the current period, the minorityinterest is written down accordingly.
If the Company loses control of a subsidiary due to partial disposal of the investment or other reasons,the retained interest is re-measured at fair value on the date of losing control. The sum of considerationreceived from disposal of investment and the fair value of retained interest less the net assets of the formersubsidiary that the Company would be entitled if the former shareholding percent was retained from theacquisition date, is carried into the investment income of current period when the control is lost. Othercomprehensive incomes relating to the equity investment in the former subsidiary shall be subject to, whenthe control is lost, accounting treatment using the same basis on which the acquiree directly disposesrelevant assets or liabilities (namely, except for changes arising from the former subsidiary’s re-measurement of net liabilities or net assets of defined benefit plan, the rest will be carried into investmentincome of current period). The retained interest shall be subsequently measured as per the AccountingStandards for Business Enterprises No. 2 - Long-term Equity Investments or Accounting Standards forBusiness Enterprises No.22 - Recognition and Measurement of Financial Instruments or other relevantregulations. See “Long-term equity investments” or “Financial instrument” for details.
Where the Company loses control of a subsidiary through disposal of equity investment in thesubsidiary through multiple transactions, it is required to identify whether these transactions form a
package deal. These multiple transactions are generally under accounting treatment as a package deal ifthe terms, conditions and economic effects of these transactions fall within one or more followingcircumstances: ① they are entered into simultaneously or with the mutual impacts considered; ②unless operated as a whole, they cannot reach a complete commercial result; ③ the occurrence of onetransaction depends on the occurrence of another one or more; or ④ a transaction is not economic whenseen separately but economic when combined with other transactions. If these transactions do not form apackage deal, each transaction is treated under “Partial disposal of long-term equity investment in asubsidiary without losing control” (refer to “Long-term equity investments” for details) and “Losingcontrol of a subsidiary due to partial disposal of equity investment or other reasons” (refer to the previousparagraph) depending on the specific circumstance. Where transactions for disposal of equity investmentin a subsidiary leading to losing control forms a package deal, each transaction is treated as a transactionfor disposal of equity investment in a subsidiary leading to losing control; however, the difference betweeneach disposal amount and the net assets that the Company would be entitled regarding the disposedinvestment, before the control is lost, is recognized as other comprehensive income in the consolidatedfinancial statements; and upon the control is lost, all these differences are carried into profit and loss ofcurrent period when the control is lost.
7. Classification of joint arrangements and accounting for joint operations"√ Applicable" "□ Not applicable"
A joint arrangement is an arrangement of which two or more parties have joint control. Jointarrangements are classified into joint operations and joint ventures depending on the rights and obligationsof the Company under the arrangements. In a joint operation, the Company has rights to the assets andobligations for the liabilities relating to the arrangement. In a joint venture, the Company has rights to thenet assets of the arrangement.Investments into joint ventures are treated under equity method in accordance with the accountingpolicies described in “Long-term equity investments” and “long-term equity investments under equitymethod”.For a joint operation, assets held and liabilities assumed separately by the Company, as well as jointassets and liabilities by the Company's share are recognized; revenue generated from sale of the share ofthe Company in the output of the joint operation is recognized; the revenue generated from the jointoperation's sale of its products by the Company’s share is recognized; expenses incurred separately by theCompany as well as expenses incurred by the joint operation by the Company’s share are recognized.If the Company as a party to a joint operation invests or sells assets (except that the assets form abusiness, hereinafter the same) into or purchases assets from the joint operation, before such assets aresold to a third party by the joint operation, the Company only recognizes the share of profit and lossgenerated from such transaction that is attributable to other parties in the joint operation. Where such assetssuffer from impairment loss set forth in Accounting Standards for Business Enterprises No. 8 — AssetImpairment and other relevant provisions, the Company fully recognizes such loss if such assets areinvested or sold by the Company into the joint operation; the Company recognizes partial loss by its sharein the joint operation if such assets are purchased from the joint operation by the Company.
8. Criteria for determination of cash and cash equivalents
Short-term investments (not greater than three months between the purchase date and the maturitydate) that have strong liquidity, are easy to be converted into cashes and are unlikely to subject to valuechange risk are defined as cash equivalents when the Company prepares cash flow statements.
Restricted bank deposits are not cash and cash equivalents in the cash flow statement.
9. Foreign currency transactions and foreign currency translation
"√ Applicable" "□ Not applicable"
(1) Accounting for foreign currency transactions:
An foreign currency transaction is recorded in reporting currency converted from the benchmarkexchange rate(generally, the central parity rate) published by the People’s Bank of China on its occurrencedate; at the end of the period, foreign currency monetary items are converted at the spot exchange rate atthe end of the period; foreign currency non-monetary items measured at historical costs are converted atthe spot rate on occurrence date; foreign currency non-monetary items measured at fair value are converted
at the spot rate on the fair value determination date. Exchange differences are carried into the purchaseand construction costs of fixed assets if they are relating to purchase and construction of such fixed assetsand before the assets reach intended usable condition; into management expense if they are not related topurchase and construction of fixed assets and during the construction preparation period; carried intocurrent financial expense if they are during the production and operation period.
(2) Translation of foreign currency financial statements:
Assets and liabilities on the balance sheet are converted at the spot exchange rate effective on balancesheet date; all items other than undistributed profit in shareholders' equity are converted at the spotexchange rates effective on occurrence dates of these items. Income and expense items in the profitstatement are converted at the exchange rate similar to the spot exchange rate of the current period; theexchange differences so generated are presented in “other comprehensive income” under the shareholder'sequity of the balance sheet.Foreign currency cash flows and cash flows generated from overseas subsidiaries are converted atexchange rates that are approximate to the spot exchange rates effective on occurrences of such cash flowitems.
10. Financial instruments
"√ Applicable" "□ Not applicable"
A financial instrument is defined as any contract that gives rise to a financial asset of one entity anda financial liability or equity of another entity. When the Company becomes one party to a financialinstrument contract, the financial asset or financial liability in respect to this financial instrument isrecognized.
(1) Classification of financial assets
A regular way purchase or sale of financial assets shall be recognized and derecognized using tradedate accounting. Financial assets upon initial recognition are classified into: financial assets measured atamortized cost; financial assets measured at fair value through other comprehensive income; financialassets measured at fair value through current profit and loss.
Financial assets meeting the following conditions are classified into financial asset measured atamortized cost: ① the business model to manage the financial assets is to collect contractual cash flows;and ② the contract terms for the financial assets provided for that a cash flow generated on a certain dateis only the payment for any principal or any interest on any outstanding principal.
Financial assets meeting the following conditions are classified into financial asset measured at fairvalue through other comprehensive income: ① the business model to manage the financial assets is tocollect contractual cash flows and sell financial assets and ② the contract terms for the financial assetsprovided for that a cash flow generated on a certain date is only the payment for any principal or anyinterest on any outstanding principal.
Financial assets other than these measured at amortized cost and these assets measured at fair valuethrough other comprehensive income are classified into financial assets measured at fair value throughcurrent profit and loss. In order to eliminate or significantly reduce accounting mismatches in initialrecognition, the Company may designate a financial asset as a financial asset measured at fair valuethrough current profit and loss. Such designation may not be revoked.
(2) Measurement of financial assets
Financial assets are measured at fair value upon initial recognition. For financial assets measured atfair value with changes in fair value recognized into current profit and loss, relevant transaction costs aredirectly carried into current profit and loss; for other financial assets, relevant transaction cost are carriedinto initial recognition amount. All accounts receivable or notes receivable generated through sales ofproducts or rendering of services, which do not contain a significant financing component or for whichthe significant financing component is not considered, are measured at the considerations to which theCompany expects to be entitled upon initial recognition. Subsequent measurement of a financialinstruments depends on its category.
① Financial assets measured at amortized cost
Financial assets measured at amortized cost is subsequently measured at amortized cost undereffective interest method. A gain or loss on a financial asset that is measured at amortized cost and is notpart of a hedging relationship is carried into current profit and loss when the financial asset isderecognized, reclassified, through the amortization process or in order to recognize impairment gains orlosses.
② Debt investments measured at fair value through other comprehensive incomeFinancial assets of this category are subsequently measured at fair value. A gain or loss on a financialasset of this category shall be recognized in other comprehensive income, except for interest calculatedunder effective interest method, impairment gains or losses and foreign exchange gains and losses. Whenthe financial asset is derecognized the cumulative gain or loss previously recognized in othercomprehensive income is reclassified to current profit or loss.
③ Non held for trading equity investments measured at fair value through other comprehensiveincomeFinancial assets of this category are subsequently measured at fair value. A gain or loss (includingexchange gain or loss) on a financial asset of this category shall be recognized in other comprehensiveincome and may not be reclassified to current profit and loss subsequently, except for dividend (exceptfor recovered cost of investment). When the financial asset is derecognized the cumulative gain or losspreviously recognized in other comprehensive income is reclassified to current retained earnings.
④ Financial assets measured at fair value through current profit and loss
A gain or loss arising from any change in the fair value of a financial asset of this category (exceptfor relating to hedging accounting) is carried into current profit and loss.
(3) Impairment of financial assets
Under the expected credit loss (ECL) approach, the impairment provisions on financial assetsmeasured at amortized cost and financial assets measured at fair value through other comprehensiveincome are recognized.
The Company recognizes the expected credit loss by calculating the probability weighted amount ofthe present value of the difference between cash flows receivable and cash flows that are expected to becollected, with default risk as the weight, by considering reasonable and supportable information,including past events, current conditions, and forecasts.
On each balance sheet date, the Company measures the expected credit loss of financial instrumentsat each stage. Financial instruments in relation to which credit risk has not been increased significantlysince initial recognition are at the first stage, for which, the Company measures a 12-month expected creditloss as impairment loss provision; financial instruments in relation to which credit risk has been increasedsignificantly since initial recognition but no credit impairment has occurred are at the second stage, forwhich, the Company measures a life-time expected credit loss as impairment loss provision; financialinstruments in relation to which credit impairment has occurred since initial recognition are at the thirdstage, for which, the Company measures a life-time expected credit loss as impairment loss provision.
In relation to financial instruments with a lower credit risk at the balance sheet date, the Companyassumes that such credit risk has not been increased significantly since initial recognition and measures a12-month expected credit loss as impairment loss provision.
For a financial instrument at the first stage, or at the second stage or with a lower credit risk, theCompany calculates its interest income by using its book balance before impairment provision is deductedand the effective interest rate. For a financial instrument at the third stage, the Company calculates itsinterest income by using its book balance after impairment provision is deducted and the effective interestrate.
For notes receivable, accounts receivable and receivables financing arising from sale of goods orrendering of services, whether or not containing a significant financing component, the Companymeasures a life-time expected credit loss as the impairment loss provision.If it is impossible to estimate the expected credit loss with due cost for a single financial asset, theCompany classifies accounts receivable into several Groups by credit risk characteristics, and calculatesthe expected credit loss for each Group. The basis for determining the groups is as below:
| Category | Type | Basis | Creation of provision for a group of bad debts |
| Group 1 | Notes or letters of credit receivable (excluding commercial acceptance bills), performance bonds and deposits receivable during the settlement period; use of petty cash by construction projects that will be reimbursed and offset by project expenditure, and other receivables | Payment type | No provision |
| for which sufficient evidence showing no risk is available | |||
| Group 2 | Accounts receivable from relevant government departments | Credit risk characteristics note 1 | Expected credit loss |
| Group 3 | Accounts receivable from related parties within the scope of consolidation and accounts receivable from joint ventures temporarily formed for coordinated use of the Company's operating funds | Payment type | No provision |
| Group 4 | Accounts receivable other than above items | Credit risk characteristics note 2 | Expected credit loss |
Note 1: for Accounts receivable from relevant government departments during the settlement period,no provision for bad debts is established if the payments are expected to be recovered within one year afterthe balance sheet date without risk(such as government subsidies receivable); the provision for bad debtsis established as 5.00% of the balance receivable if the payments are expected to be recovered one yearafter the balance sheet date (such as electricity subsidies receivable) given the time value of asset; theprovision for bad debts previously established by accounts receivable age over 5.00% of the balancereceivable is not reserved until the payments are recovered for prudential purpose.
Note 2: Accounts receivable other than above Groups are grouped according to credit riskcharacteristic (accounts receivable age), and the percent of provision for bad debts is estimated accordingto all reasonable and grounded information including forward looking information.
| Account receivable age | Provision (%) |
| Within one year | 5.00 |
| 1- 2 years | 10.00 |
| 2- 3 years | 50.00 |
| Over 3 years | 100.00 |
The Company recognizes an impairment loss that has been provided or reversed into current profitand loss. Gains or losses from debt investments measured at fair value through other comprehensiveincome are recognized into current profit and loss with the other comprehensive income adjustedaccordingly.
(4) Recognition basis for and measurement of financial asset transfers
A financial asset meeting any one of the following conditions is derecognized: ① the contractualright to collect the financial asset's cash flows has expired; or ② if it has been transferred and theCompany has transferred substantially all the risks and rewards of ownership of the financial asset to therecipient; or ③ if it has been transferred and the Company has surrendered control over the financialasset although it neither transferred nor retained substantially all the risks and rewards of ownership of thefinancial asset.
If the Company has neither retained nor transferred substantially all of the risks and rewards of theasset, and has retained control of the asset, then the Company continues to recognize the asset to the extentto which it has a continuing involvement in the asset and recognizes relevant liability. Continuinginvolvement in the asset means the risk level caused by the change in the asset value to which the Companywill be exposed.
Where a transfer of financial asset in its entirety qualifies for derecognition, the difference between
(1) the carrying value of the asset and (2) the consideration received for transfer and cumulative changein fair value previously recognized into other comprehensive income is recognized into current profit andloss.
Where a transfer of partial financial asset qualifies for derecognition, the carrying value of the assetis split into derecognition part and non-derecognition part by their relative fair values, and the differencebetween (1) the consideration received for transfer and cumulative change in fair value of derecognitionpart previously recognized into other comprehensive income and (2) the carrying value of the asset isrecognized into current profit and loss.
Upon the de-recognition of a non-held-for-trading equity investment designated by the Company asmeasured at fair value through other comprehensive income, the cumulative gain or loss previouslyrecognized in other comprehensive income is reclassified to retained earnings.
(5) Classification and measurement of financial assets
① Financial liabilities measured at fair value through current profit and loss
Financial liabilities measured at fair value through profit and loss (FVTPL) include financialliabilities held for trading (including derivative instruments that belong to financial liabilities) andfinancial liabilities designated as financial liabilities measured at fair value through current profit.Financial liabilities measured at fair value through current profit and loss are subsequently measured atfair value. A gain or loss arising from any change in the fair value of a financial liability of this categoryis carried into current profit and loss.
② Other financial liabilities
Derivative financial liabilities that are linked to equity instruments that are not quoted in an activemarket and their fair values cannot be reliably measured, and must be settled through delivery of suchequity instruments are subsequently measured at cost. Other financial liabilities are subsequently measuredat amortized cost under effective interest method with gains or losses from de-recognition or amortizationrecognized into current profit or loss.
(6) De-recognition of financial liabilities
When the present obligations for a financial liability have been wholly or partially discharged, theCompany de-recognizes the financial liability or the part thereof. Where the Company (as a debtor) and acreditor sign an agreement under which an existing financial liability is replaced by a new liability, andthe new financial liability and existing financial liability are different in contractual terms in essence, theexisting financial liability is derecognized and the new financial one is recognized.
Where a financial liability is de-recognized in whole or in part, the difference between the carryingvalue of and the consideration paid (including the non-cash asset transferred or the new financial liabilityassumed) for the de-recognized part is carried into current profit and loss.
(7) Offsetting of financial assets and financial liabilities
A financial asset and a financial liability should be offset and the net amount reported when and onlywhen the Company has a legally enforceable right to set off the amounts, and intends either to settle on anet basis, or to realize the asset and settle the liability simultaneously; the net amount after such offsettingis presented in the balance sheet. In all other circumstances, financial assets and financial liabilities arepresented separately in the balance sheet.
(8) Determination of fair value of financial instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liabilityin an orderly transaction between market participants at the measurement date. Quoted prices in an activemarket are used, where they exist, to measure the financial instrument. Quoted prices are readily andregularly available from an exchange, dealer, industry group, price service or regulatory agency and thoseprices represent the actual and regularly occurring market transactions on an arm's length basis. If themarket for a financial instrument is not active, the fair value of the financial instrument is established bya valuation technique. Valuation techniques include reference to the prices used by the well-briefed andwilling-to-transact parties in the latest market transactions, reference to the current fair values of otherfinancial instruments similar in nature, discounted cash flow technique and option pricing models.
11. Notes receivable
Determination of and accounting for expected credit loss of other receivables"√ Applicable" "□ Not applicable"
A note receivable is a written promise held by the Company to collect the principal and interest onmaturity, including banker's acceptance, commercial acceptance and letters of credit. Provision forexpected credit loss is detailed in “Financial instruments”.
12. Accounts receivable
Determination of and accounting for expected credit loss of accounts receivable"√ Applicable" "□ Not applicable"
Refer to “Financial instruments” for details on provision for expected credit loss.
13. Receivables financing
"√ Applicable" "□ Not applicable"
It means a banker's acceptance received by the Company in order to collect principal and interest onmaturity, to transfer through endorsement, and to cash by discounting. The carrying value of a banker’s
acceptance is used as its fair value when the remaining term to maturity is short and the carrying value isclose to the fair value. Refer to “Financial instruments” for details on provision for expected credit loss.
14. Other receivables
Determination of and accounting for expected credit loss of other receivables"√ Applicable" "□ Not applicable"Refer to “Financial instruments” for details on provision for expected credit loss.
15. Inventories
"√ Applicable" "□ Not applicable"
(1) Classification of inventories
Inventories are classified into: raw materials, packaging materials, work-in-process, finished goods,materials in transit, materials for repeated use (including packages, low-value consumables, scaffoldingfor construction projects), goods on consignment, goods in transit, materials for processing onconsignment, consumable biological assets, constructions.
(2) Inventory costing methods
Inventory is recorded at the actual cost upon acquisition. The weighted average method is used forcalculating for the costs of all inventories except for materials for repeated use.
(3) Basis for determination of net realizable values of inventories and provision for obsolete inventoryallowance
At the end of a period, an inventory is measured at the lower of cost and net realizable value. Excessof cost over net realizable value is recognized into current profit and loss, and the provision for obsoleteinventory allowance is established. For inventories related to a product series produced and sold in thesame area and for similar purposes or final applications, and it is difficult to distinguish them from otheritems related to the product series, the provisions are established for these inventories as a whole; forinventories large in quantities and low in price, the provision is established by type of inventory.
Materials held for production are measured at cost even if the realizable value of goods generatedtherefrom is higher than cost. Materials are measured at net realizable value when the decrease of materialprice indicates that the net realizable value of goods is lower than cost.
(4) Inventory system
Perpetual system is adopted.
(5) Amortization of materials for repeated use
When materials for repeated use (low-value consumables) are collected and used, the 50%-50%amortization method is used for materials whose unit value is above 500 yuan and one-time amortizationfor materials whose unit value is below 500 yuan. In Tongwei Solar (Hefei) Co., Ltd., a wholly-ownedsubsidiary of the Company, and its subsidiaries' low-value consumables are amortized completely whenthey are collected, and the effects are difficult to calculate accurately, no adjustment is made in theconsolidated statements.
16. Contract assets
(1). Methods and criteria for recognition of contract assets
"√ Applicable" "□ Not applicable"
A contract asset is defined as the Company’s right to consideration in exchange for goods or servicesthat the Company has transferred to a customer, when that right is conditioned on something other thanthe passage of time. Contract assets and contract liabilities under the same contract are presented after ona netting basis; and contract assets and contract liabilities under different contracts are presented separately.
(2). Determination of and accounting for expected credit loss of contract assets"√ Applicable" "□ Not applicable"
Refer to “Financial instruments” for details.
17. Assets held for sale
"√ Applicable" "□ Not applicable"
A non-current asset or disposal group is classified as held for sale if most of the carrying value isexpected to be recovered via future cash flows from the sale (including non-monetary exchange withcommercial substance) of the asset or disposal group rather than future cash flows from use.
The following conditions must be met for an asset or disposal group to be classified as held for sale:
(1) The asset or disposal group must be available for immediate sale in its present condition subjectto terms that are usual and customary for sales of such assets (or disposal groups); and
(2) The sale must be highly probable, i.e., the Company has been committed to a plan to sell the assetor disposal group and obtained a firm purchase commitment and the sale is expected to be completedwithin one year. Relevant approvals have been obtained from relevant authorities or regulators.
The Company measures a non-current asset (or disposal group) classified as held for sale at the lowerof the carrying value and fair value less costs to sell. Where the carrying value is higher than the fair valueless costs to sell, the carrying value is written down to fair value less costs to sell, and the written downamount is recognized into asset impairment loss and carried into current profit and loss, and the provisionfor the asset heldfor-sale impairment loss is established accordingly. The company recognizes a currentgain for any subsequent increase in fair value less costs to sell of an asset or disposal group held-for-sale,but not in excess of the cumulative impairment loss that has been recognized after the asset is classifiedinto an asset held-for-sale. The carrying value of goodwill of a disposal group held-for-sale that has beenwritten down, and the impairment loss of a non-current asset held-for-sale recognized before it is classifiedinto an asset held-for-sale may not be reversed.
Non-current assets or disposal groups that are classified as held for sale are not depreciated oramortized. Interest and other expenses attributable to the liabilities of a disposal group classified as heldfor sale shall continue to be recognized.
A non-current asset or disposal group no longer classified as held for sale because it no longer meetsthe classification criteria for held for sale or the asset is removed from the held for sale disposal group, ismeasured at the lower of:
(1) Carrying value before the asset (or disposal group) was classified as held for sale, adjusted forany depreciation, amortization or impairment that would have been recognized had the asset (or disposalgroup) not been classified as held for sale;
(2) Recoverable amount.
18. Debt investments
(1). Determination of and accounting for expected credit loss of debt investments"□ Applicable" "√ Not applicable"
19. Other debt investments
(1). Determination of and accounting for expected credit loss of other debt investments"□ Applicable" "√ Not applicable"
20. Long-term receivables
(1). Determination of and accounting for expected credit loss of long-term receivables"□ Applicable" "√ Not applicable"
21. Long-term equity investments
"√ Applicable" "□ Not applicable"
Long-term equity investments are equity investments under which investors impose control andsignificant influence over investees and the equity investments into their joint ventures.
(1) Determination of investment cost
For a long-term equity investment generated from a business combination, for example, the long-term equity investment obtained from a business combination under common control, the share of owner’sequity of the acquiree in the carrying value recorded in the consolidated financial statements of the ultimatecontroller is used to calculate the initial cost of the long-term equity investment. For a long-term equityinvestment obtained from a business combination under different control, the combination cost includesthe fair value of assets paid, liabilities incurred or assumed, and equity securities issued on the acquisitiondate by the acquirer for obtaining the control of the acquiree; intermediary expenses including audit, legal
service and assessment and consulting services, and other management expenses for the combination arecarried into current profit and loss as incurred; transaction expenses of equity or debt securities issued bythe acquirer as the consideration for the business combination are accounted for as the initial recognitionof these equity or debt securities.
An equity investment other than a long-term equity investment obtained from a business combinationis initially measured at cost. The cost is determined, depending on the way in which the long-term equityinvestment is obtained, by the actual cash payment paid by the Company, fair value of equity securitiesissued by the Company, value agreed in the investment contract or agreement, fair value or originalcarrying value of the asset exchanged for a non-monetary asset, or fair value of the long-term equityinvestment. Expenses, tax and other necessary expenditure directly relating to obtaining the long-termequity investment is also recorded into the investment cost.
(2) Subsequent measurement and profit and loss recognition
A long-term equity investment under which the Company has joint control (except for a jointoperation) or significant influence on the investee is accounted under equity method. Long-term equityinvestments under which the Company has control over investees are accounted under cost method.
① Cost-method of accounting for long-term equity investments
Under the cost method of accounting, a long-term equity investment is measured at initial investmentcost, except for the actually paid price for obtaining the investment or any cash dividend or profit declaredbut not distributed that is included into the actually paid price or consideration upon investment, currentinvestment income is recognized as the cash dividend or profit that has been declared by the investee towhich the Company is entitled.
② Equity method of accounting for long-term equity investments
Under the equity method of accounting, when the initial investment cost is greater than theCompany's share of the fair value of net identifiable assets of the investee upon investment, the initialinvestment cost of the long-term equity investment is not adjusted; when the initial investment cost issmaller than the Company's share of the fair value of the net identifiable assets of the investee uponinvestment, such difference shall be carried into current profit/loss and the cost of the long-term equityinvestment is adjusted.
Under the equity method of accounting, the current investment income shall be the Company's shareof the net profit or loss realized by the investee during the year. The fair value of net identifiable assets ofthe invested upon investment is the basis for recognition of the Company's share of the net profit/loss ofthe investee, and such recognition is performed after the net profit of the investee is adjusted in accordancewith Company's accounting policies and for the applicable accounting period. Unrealized profits andlosses resulting from transactions between the Company and an associate and joint ventures are eliminatedto the extent of the Company's interest in the associate or joint venture, and then the investment profit orloss is recognized. However, unrealized losses between the Company and the investee are not eliminatedto the extent that such losses are a result of the impairment of the assets transferred in accordance withAccounting Standards for Business Enterprises No. 8 - Asset Impairment. The Company's share of othercomprehensive income of the investee is recognized as other comprehensive income with the carryingvalue of the long-term equity investment adjusted accordingly. Any change in the owners’ equity of theinvestee other than net profit and loss, other comprehensive income and profit distribution, is recordedinto shareholders’ equity with the carrying value of the long-term equity investment adjusted accordingly.Upon subsequent disposal of the long-term equity investment, the amount recorded into shareholders’equity shall be re-classified into investment income in share or in full.
The Company's share of net loss of the investee is recognized to the extent that carrying value of thelong-term equity investment and other long-term equity that constitutes of the Company's net interest inthe investee is written down to zero. If the Company still has to assume additional obligations, suchexpected obligations are recognized as expected liabilities and carried into current investment loss. Whenthe investee realizes any net profit in a subsequent period, the Company's share of net loss is eliminatedand its share of net profit is then reversed (if possible).
③ Purchase of minority shareholding
For preparation of consolidated financial statements, the Company's capital surplus is written downto the extent of the difference between the newly added long-term equity investment from the purchase ofminority shareholding, and the Company's newly added share of the net asset of the subsidiary since theacquisition date, and if the capital surplus is insufficient, the retained earnings are adjusted accordingly.
④ Disposal of long-term equity investments
After a partial disposal of a long-term equity investment while the control is retained, in theconsolidated financial statements, the difference between the disposal price and the Company's share ofthe net asset of the subsidiary in respect of the disposed part is recorded into shareholders ’equity. After apartial disposal of a long-term equity investment that leads to control, refer to relevant accounting policiesdescribed in “Methods for preparing consolidated financial statements”.For a disposal of a long-term equity investment in any other circumstance, the difference betweencarrying value and the actually obtained price is recognized as current profit and loss; for a long-termequity investment accounted under the equity method the share of other comprehensive income that hasbeen recorded into shareholders’ equity is subject to the accounting treatment on the same basis as theinvestee's direct disposal of relevant assets or liabilities. The remaining interest is recognized as a long-term equity investment or other financial liability at the carrying value, and subject to subsequentmeasurement according to the aforesaid accounting policies for long-term equity investments or financialassets. Retroactive adjustment is made under relevant provisions if the accounting treatment for theremaining interest shifts from cost method to equity method.
(3) Basis for determination of joint control of and significant influence over an investee
Control means the power of an investor over the investee; the investor is entitled to variable returnsby participating in related activities of the investee and able to influence the amount of return by exercisingthe power. Joint control is the control over a certain arrangement by two or more parties under relevantagreements and relevant activities for the arrangement cannot be decided unless unanimously agreed byall such parties. Significant influence is the power to participate in the decision of financial and operatingpolicies of an entity; it is not control over these either individually or jointly with other parties. Todetermine whether an investor can impose control of or significant influence over an investee, potentialfactors concerning voting rights including corporate bonds convertible in current period and warrantsexercisable in current period, that the investor and other parties hold in the investee, should be considered.
(4) Impairment test and provision for impairment
The Company assesses at each balance sheet date whether there is an indication that a long-termequity investment may be impaired. If any such indication exists, Company shall estimate the recoverableamount of the asset. If carrying value of the asset is greater than its recoverable amount, an impairmentprovision equaling to the difference of the two shall be established and recorded into current profit andloss. Once recognized, the said impairment loss on a long-term equity investment will not be reversed insubsequent periods.
22. Investment properties
(1). Measured at cost:
Depreciation or amortization method
An investment property is real estate property that has been purchased with the intention of earninga return on the investment, either through rental income, the future resale of the property or both.Investment properties include leased land use rights, land use rights held and prepared for transfer afterthey are appreciated, and leased building.
(1) Initial measurement
An investment property is initially measured at cost if rent income or added value that is associatedwith the investment property will flow to the Company and the cost of the investment property can bemeasured reliably.
The cost of an investment property purchased from other parties includes the purchase price andrelevant taxes directly attributable to the asset;
The cost of an investment property constructed by the Company consists of necessary expenditureincurred before the asset reaches expected usable condition;
The cost of an investment property obtained in another way is recognized under applicable accountingstandards.
(2) Subsequent measurement
Generally, subsequent expenditures on an investment property are measured at cost in subsequentperiods. An investment property is depreciated or amortized under accounting policies that the Companyapplies to fixed assets or intangible assets.
An investment property is subsequently measured at fair value if conclusive evidence indicates thatthe fair value of the investment property can be reliably obtained on an ongoing basis. An investmentproperty measured subsequently at fair value may not be depreciated or amortized; the carrying value is
adjusted to the fair value on balance sheet date and the difference between fair value and original carryingvalue is carried into current profit and loss.
(3) An investment property which the Company has changed its purpose is reclassified into otherassets.
23. Fixed assets
(1). Recognition criteria
"√ Applicable" "□ Not applicable"Fixed assets refer to premises and buildings, machinery equipment, transpotation equipment andother equipments related with production and operation with a useful life of over one year, held for use inthe production or supply of goods or services, lease to others, or administrative purposes. When economicbenefits relating to a fixed asset are likely to flow into the Company and its costs can be reliably measured,the fixed asset is recognized.
(2). Depreciation method
"√ Applicable" "□ Not applicable"
| Category | Depreciation method | Useful life (years) | Residual value rate | Annual depreciation rate |
| Premises and buildings | Straight-line method | 5—35 | 5% | 19%—2.71% |
| Including: Overseas private land (note) | No amortization | Long term | ||
| Machinery equipment | Straight-line method | 5—12 | 5% | 19%—7.92% |
| PV 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 | 4—5 | 5% | 23.75%—19% |
Note: The Company holds a permanent title over overseas private lands purchased for constructingplants (such as in Bangladesh); these lands are for long-term use and not amortized. An impairment test isperformed at the end of each reporting period.
For a fixed asset for which a provision for impairment has been established, its deprecation rate anddepreciate amount shall be re-calculated according to the carrying value (i.e., the original cost lesscumulative depreciation and provision for impairment) and its remaining useful life.
A fixed asset is measured at the lower of the carrying value and its recoverable amount on the balancesheet date.
(3). Recognition, measurement, and depreciation of fixed assets acquired under finance leases"□ Applicable" "√ Not applicable"
24. Construction in progress
"√ Applicable" "□ Not applicable"
(1) Measurement of construction in progress
A construction in progress is measured at cost which includes borrowing interest and expense incurredbefore the end of the construction period that should be capitalized.
When a construction in progress reaches its intended purpose and is delivered for use, a fixed asset isrecognized at actual cost; for construction in progress that has been delivered but the final account is notperformed, a fixed asset is recognized at the estimated cost of construction budget, costing or actualconstruction cost with depreciation established. After the final account is completed, the original estimateand deprecation are adjusted accordingly.
A construction in progress is measured at the lower of the carrying value and its recoverable amounton the balance sheet date.
(2) Provision for impairment of construction in progress
A provision for impairment of a construction in progress is established at carrying value lessrecoverable amount at the end of the construction period if one or more of the following circumstancesexist. Once recognized, the impairment loss will not be reversed in subsequent periods.
① The construction is suspended for a long term and the suspension is expected to remain in nextthree years;
② The construction has been outdated in performance and technology and the economic benefitsbrought to the Company are largely uncertain;
③ Any other circumstance that indicates the construction in progress has been impaired.
25. Borrowing costs
"√ Applicable" "□ Not applicable"
Borrowing costs that incur during the capitalization period and may be directly attributable tocapitalization criteria are capitalized. Capitalization starts when all three conditions are met: expendituresare incurred, borrowing costs are incurred, and the activities necessary to prepare the asset for its intendeduse or sale are in progress; and ends when the fixed asset reaches its intended use. The capitalization shouldbe suspended during periods in which acquisition or construction of the fixed asset is interrupted for overconsecutive three months; in this case, the borrowing costs are recognized as current expense.
The method for calculating cost to be capitalized is as follows. To the extent that the Companyborrows funds specifically for the purpose of obtaining a qualifying asset, it is calculated as the actualborrowing costs incurred on that borrowing during the period, less the interest on unused borrowingsdeposited in banks or any investment income on the temporary investment of those borrowings. To theextent that the Company uses funds from general borrowings for the purpose of obtaining a qualifyingasset, it is calculated by the weighted average of the excess of cumulative asset expenditure over the assetexpenditure from special borrowings, multiplied the capitalization rate applicable to used generalborrowings. The capitalized interest in each period is limited to the actual interest on relevant borrowingsthat incurs in the period. The discount or premium of borrowings that should be amortized in eachaccounting period is measured under effective interest method with the interest in each period adjustedaccordingly. An ancillary cost incurred in connection with funds borrowed specifically for the purpose ofobtaining a qualifying asset is capitalized as incurred if it incurs before the asset reaches its intended useor sale, and recognized as expense and carried into current profit and loss if it incurs after the asset reachesits intended use or sale.
26. Biological assets
"√ Applicable" "□ Not applicable"
(1) Classification of biological assets
Productive biological assets of the Company include male fish and male pawn.
(2) Initial measurement of productive biological assets
① The cost for purchasing a productive biological asset includes the purchase price, relevant tax,transportation cost, insurance cost and all other expenditures that are directly attributable to purchase ofthe asset.
② The cost for constructing or generating a productive biological asset includes the feed cost, laborcost, indirect expense that should be amortized as other necessary expenditures before the asset reachesits intended production/operation (mature age).
(3) Subsequent measurement of productive biological assets
Depending on the nature, use and expected realization of relevant economic benefits of productivebiological assets, the useful life, residual value rate and depreciation rate of each productive biologicalasset are determined as follows:
| Category | Useful life (years) | Residual value rate | Annual depreciation rate |
| Male fish | 3 | 5% | 31.67% |
| Male pawn | 7 months | 0% | Amortization completed in the breeding season |
A productive biological asset is measured at the lower of the carrying value and its recoverableamount on the balance sheet date.
27. Oil and gas assets
"□ Applicable" "√ Not applicable"
28. Right-of-use assets
"√ Applicable" "□ Not applicable"
(1) A right-of-use asset is recognized on the commencement date of the lease except for short-termlease and low-value lease. Commencement date of a lease is the date on which the lessor makes an assetavailable for use by the Company. A right-of-use asset is measured at cost upon initial recognition; the costincludes:
① the amount of the initial measurement of the lease liability;
② lease payments made at or before the commencement date of the lease, less any lease incentivesreceived (if any);
③ any initial direct costs incurred by the Company;
④ an estimate of costs to be incurred when the Company removes the asset, restores the place wherethe asset is installed or restores the asset to the condition agreed by the lease terms (excluding costs incurredto produce inventories). If the lease liability is remeasured after the commencement date of the lease, thecarrying value of the right-of-use asset is adjusted accordingly.
(2) Depreciation of a lease asset is provided over remaining useful life of a right-of-use asset if theCompany is able to reasonably determine that it will obtain the ownership of the asset upon the lease termexpires. Otherwise, the depreciation is provided over the shorter of the remaining useful life and the leaseterm.
(3) The accounting policies for “impairment of long-term assets” are applicable to the identificationof whether a right-of-use asset has been impaired and the identified impairment loss.
29. Intangible assets
(1). Measurement, useful life and impairment test
"√ Applicable" "□ Not applicable"
An intangible asset is an identifiable non-monetary asset without physical substance that theCompany owns or controls.
An intangible asset is measured at cost upon initial recognition. If payment for an intangible asset isdeferred beyond normal credit terms so that it is a financing activity, its cost is the cash price equivalent.The difference between this amount and the total payments is recognized into current profit and loss overthe period of credit unless it is capitalized.
The useful life of an intangible asset is analyzed and determined upon it is obtained. For an intangibleasset with a finite useful life, it is amortized with straight-line method over the useful life.
At the end of each accounting period, the useful lives and amortization methods for intangible assetswith finite useful lives are reviewed. At the end of each accounting year, the useful lives and amortizationmethods for intangible assets with finite useful lives are reviewed.
An intangible asset is measured at the lower of the carrying value and its recoverable amount on thebalance sheet date.
(2). Accounting policies for internal R&D costs
"√ Applicable" "□ Not applicable"
All expenditure incurred at the research stage should be carried into current profit and loss whenincurred. Expenditure incurred at the development stage is recognized as an intangible asset if thefollowing conditions are met, or recorded into current profit and loss when incurred:
① the technical feasibility of completing the intangible asset (so that it will be available for use orsale);
② intention to complete and use or sell the asset;
③ how the intangible asset will generate probable future economic benefits, including the Companycan demonstrate the existence of a market for the output of the intangible asset or the intangible asset itselfor, if it is used internally, the usefulness of the intangible asset;
④ the availability of adequate technical, financial and other resources to complete the developmentand to use or sell the intangible asset;
⑤ the expenditure attributable to the intangible asset during its development can be reliablymeasured.
30. Impairment of long-term assets
"√ Applicable" "□ Not applicable"
The Company assesses on each balance sheet date whether there is an indication of impairment forfixed assets, right-of-use assets, construction in progress, intangible assets with finite useful lives,investment properties measured at cost, and non-current non-financial assets such as long-term equityinvestments into subsidiaries, joint ventures and associates. If any such indication exists, the Companyestimates the recoverable amount of the asset and performs an impairment test. Goodwill, indefinite-livedintangible assets and intangible assets that have not reached usable condition, whether or not such sign ofimpairment exists, must receive at least one impairment test per year.If the impairment test indicates that carrying value of an asset is greater than its recoverable amount,an impairment provision equaling to the difference of the two shall be established and recorded intoimpairment loss. Recoverable amount of an asset is the greater of fair value less cost of disposal and thepresent value of future cash flows expected to be derived from the asset. Fair value of an asset is based onthe price set forth in the sale agreement entered in a fair transaction; if no such sale agreement exists butan active market for the asset exists, the fair value is based on the offer given by the buyer; if neither of thetwo exists, the fair value is estimated according to the best knowledge. Costs of disposal include legal costs,relevant taxes, and handling costs relating to disposal of an asset, and all direct expenses incurred to bringan asset into condition for its sale. The present value of expected future cash flow of an asset is calculatedas the expected future cash flows to be deprived from continuing use and disposal of the asset properlydiscounted. Impairment provision is calculated and recognized for each individual asset. If it is difficult toestimate the recoverable amount of an individual asset, recoverable amount of the cash-generating unit(CGU) to which the asset belongs is determined. A CGU is the minimum group of assets that can generatecash inflows.In impairment test, the carrying value of goodwill which is separately listed in the financialstatements is shared among the CGU or the group of CGUs which are expected to be benefited fromsynergies of business combination. If the impairment test indicates that carrying value of a CGU or a groupof CGUs, which takes a share of the goodwill, is greater than its recoverable amount, the correspondingimpairment loss is recognized. An impairment loss amount calculated for a CGU or a group of CGUsshould be allocated to the CGU or the group's individual assets - first of all to goodwill allocated to theCGU or the group, and then to other assets of the CGU on a pro rata basis according to the carrying valueof each asset in the CGU or the group.If the fair value of an impaired goodwill recovers after an impairment has been recognized, theimpairment may not be reversed in a subsequent period.
31. Deferred expenses
"√ Applicable" "□ Not applicable"
A deferred expense is recognized as incurred and amortized over the benefit period or specifiedamortization period with straight-line method. If a deferred expense cannot bring benefits to subsequentaccounting periods, the amortized value is recognized into current profit and loss.
32. Contract liabilities
(1). Recognition of contract liabilities
"√ Applicable" "□ Not applicable"
A contract liability is the Company’s obligation to transfer goods or services to a customer for whichit has received consideration from the customer. If a customer pays consideration or the Company has aright to an amount of consideration that is unconditional before the Company transfers goods or servicesto the customer, the Company shall present the payment as a contract liability when the payment is madeor the payment is due (whichever is earlier). Contract assets and contract liabilities under the same contractare presented after on a netting basis; and contract assets and contract liabilities under different contractsare presented separately.
33. Employee benefits
(1). Accounting for short-term benefits
"√ Applicable" "□ Not applicable"Short-term employee benefits include salaries, bonuses, allowances and subsidies, benefit expenses,medical insurance costs, maternity insurance costs, work injury insurance costs, house provident fundexpenses, labor union expense and education expense, and non-monetary benefits. The Company
recognizes the short-term employee benefits incurred during an accounting period in which thecorresponding services are rendered as liabilities and carry them into current profit/loss or relevant cost ofan asset. All non-monetary benefits are measured at fair value.
(2). Accounting for post-employment benefits
"√ Applicable" "□ Not applicable"Post-employment benefits include defined benefit plans and defined contribution plans. Definedcontribution plans include among others basic pension insurance plan and unemployment insurance, thecontribution amounts are recognized into relevant costs of assets or current profit and loss when incurred.Defined benefit plans provided by the Company are life subsidies and medical benefits for retirees undernational policies, the Company's provisions and the years retirees have worked for the Company.An actuarial valuation is performed on the balance sheet date on defined benefit plans, with the gainor loss from actuarial valuation recognized into other comprehensive income. Service cost and net intereston the net defined benefit liability or asset are carried into current profit and loss.
(3). Accounting for termination benefits
"√ Applicable" "□ Not applicable"Termination benefits are compensations provided for employees to terminate employment beforeexpiry or to encourage employees to leave service voluntarily. Termination benefits are carried intoemployee benefits liability and into current profit and loss when paid. Termination benefits expected notto be fully settled within 12 months after the end of the annual reporting period are treated as other long-term employee benefits.The Company provides social insurance and life allowances for internal retirees before they areformally retired. The internal retirement plan is subject to the same principle as the said termination benefits.Salaries and social insurance premiums to be paid by the Company for employees subject to internalretirement plan from the date when they stop rendering services to the date when they reach legal retirementages, are recognized as liabilities and recorded into current profit and loss (termination benefits), if thecriteria for recognition of expected liabilities are met.
(4). Accounting for other long-term employee benefits
"√ Applicable" "□ Not applicable"
Other long-term employee benefits provided for employees are subject to accounting treatment fordefined contribution plans if appropriate, and otherwise, subject to the accounting treatment for definedbenefit plans.
34. Lease liabilities
"√ Applicable" "□ Not applicable"
On the commencement date of a lease, the Company recognizes a right-of-use asset and a leaseliability, short-term leases and low-value leases that should be subject to the simplified approach areexempted.
A lease liability is initially measured at the present value of the lease payments payable over the leaseterm. Lease payments are the payments made by the Company to the lessor for the right to use theunderlying asset over the lease period, including:
(1) fixed payments (including in-substance fixed payments), less any lease incentives receivable (ifany);
(2) variable lease payments that depend on an index or rate, initially measured using the index or rateat the commencement date;
(3) the exercise price of a purchase option that the Company is reasonably certain to exercise;
(4) payments for terminating the lease provided that the lease term reflects that the Company willexercise the termination option;
(5) amounts expected to be payable by the Company under residual value guarantees.
In calculating the present value of lease payments, the Company uses the interest rate implicit in thelease as the discount rate; if the rate cannot be determined, the Company uses its incremental borrowingrate.
After the commencement date of the lease, the Company uses a fixed periodical interest rate tocalculate the interest on the lease liability over each period in the lease term and recognizes it into currentprofit and loss or relevant costs of asset. After the commencement date of the lease, the Company will re-measure the lease liability at the present value of changed lease payments in the event of any change in-substance fixed payments change, in the amounts expected to be payable under residual value guarantees,the index or rate used for determining the lease payments, the assessment result or actual exercise ofpurchase option, renewal option or termination option.
35. Estimated liabilities
"√ Applicable" "□ Not applicable"
An estimated liability is recognized when an obligation occurs with respect to a contingency andmeets the following three criteria.
(1) It is a present obligation of the Company;
(2) Its performance probably causes outflow of economic benefits;
(3) The amount of the obligation can be reliably measured.
If the payment needed for an estimated liability is expected to be compensated wholly or partially bya third party or other parties or when the Company basically ascertains that the compensation can bereceived, the compensation is recognized as an asset to the extent that the amount is not higher than thecarrying value of the recognized liability.
On the balance sheet date, the Company reviews the carrying value of an estimated liability, andadjusts the carrying value at the current best estimate if conclusive evidence indicates that the carryingvalue cannot truly reflect the current best estimate.
36. Share-based payment
"□ Applicable" "√ Not applicable"
37. Other financial instruments including preference share and perpetual bond"□ Applicable" "√ Not applicable"
38. Revenue
(1). Accounting policies for revenue recognition and measurement
"√ Applicable" "□ Not applicable"
① General principles for recognition of revenues
Revenue is the total inflow of economic benefits formed in daily operating activities of the Company,which will lead to the increase of owners’ equity and is not related to the capital invested by owners.The Company recognizes a revenue when it satisfies the performance obligation in the contract, i.e.,the customer obtains control of goods or services.
Where two or more performance obligations are included in the contract, the Company allocates thetransaction price to each performance obligation on the basis of the relative stand-alone selling prices ofeach distinct goods or services promised in the contract, and then measures revenue at the transaction priceallocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled inexchange for transferring promised goods or services to a customer, excluding amounts collected on behalfof third parties. The Company recognizes the transaction price to the extent that it is probable that asignificant reversal in the amount of cumulative revenue recognized will not occur when the uncertaintyassociated with the variable consideration is subsequently resolved. Amounts expected to be refunded to acustomer are not included into the transaction price. For a contract with a significant financing component,the Company calculates the transaction price as the amounts payable in cash by the customer when it wouldobtain control of the goods or services. The difference between such amount and the contract considerationis amortized over the contract term with effective interest method. The significant financing component isnot considered if on the start date of the contract Company expects that the period from the customerobtains control over the goods or services to the customer pays the price is no longer than one year.
A performance obligation is satisfied over a period if one of the following criteria is met, otherwise,it is satisfied at a point of time:
a. The customer receives and consumes the economic benefits from the Company's satisfaction of theperformance obligation as it is satisfied by the Company;b. The customer is able to control work-in-process created by the Company in satisfying theperformance obligation;c. The goods created do not have an alternative use to the Company and the Company has anenforceable right to payment for performance completed to date.For a performance obligation satisfied over a period of time, the Company recognizes the revenuebased on the performance progress over the period. If no reasonable and reliable measure of progress canbe made, revenue is generally recognized to the extent of costs incurred until a reasonable method can bedetermined if the costs incurred are expected to be compensated.The Company recognizes a revenue when it satisfies the performance obligation at the point in timewhen control of the goods or services is transferred to the customer. A customer obtains control of goodsor services if the following indicators are met:
a. The Company has a present right to payment for the goods or services;
b. The Company has transferred physical possession of the goods or services to the customer;
c. The Company has transferred to the customer the significant risks and rewards of ownership of thegoods;
d. The customer has accepted the goods or services.
The Company’s unconditional right (only conditional on the passage of time) to consideration ispresented as an account receivable. The Company’s right to consideration in exchange for goods or servicesthat the Company has transferred to a customer, when that right is conditioned on something other than thepassage of time is presented as a contract asset; a provision for impairment on a contract asset is establishedat the expected credit loss. The Company’s obligation to transfer goods or services to a customer when ithas received the consideration is presented as a contract liability.
② Specific revenue recognition methods
a. Sales revenue
A revenue is recognized when control of goods is transferred to a customer.
The Company mainly produces and sells high-purity polysilicon, cells and modules, polyvinylchloride, sodium hydroxide and cement, feed, fish, pigs, ducks and other products, which belong to theperformance obligations satisfied at a point in time.
Criteria for revenue recognition for products sold in Chinese mainland: the Company has deliveredproducts to the purchaser under the contract and the products have been received via signature by thepurchaser or the shipping company engaged by the purchase; the sale amount is determined; the collectionhas occurred or the Company has received the certificate of right to collect; relevant inflow economicbenefits are probable; and the cost of products can be reliably measured.
Criteria for revenue recognition for products sold outside Chinese mainland: under InternationalRules for the Interpretation of Trade Term and given revenue recognition principles and the Civil Code, arevenue is recognized at the point in time when control of the products is transferred to a customer.
The Company sells electricity generated by PV powerplants and recognizes a revenue when theelectricity connected to the grid is confirmed with the grid company.
b. Revenue from rendering of services
The Company renders services including construction and equipment installation that fall into thescope of performance obligations over a period of time. The Company recognizes revenue over time bymeasuring the progress toward complete satisfaction of that performance obligation, with the progresscalculated at the ratio of costs incurred to the budget costs. Revenue should be recognized only to the extentof costs incurred are expected to be compensated. Otherwise, the costs incurred are carried into currentprofit and loss.
c. Revenue from transfer of right-of-use assets
The revenue is recognized over the period of a right-of-use asset under the straight-line method.
(2). Accounting policies for revenue recognition of the same class of operating activities differ by
operating models"□ Applicable" "√ Not applicable"
39. Contract costs
"√ Applicable" "□ Not applicable"
Contract costs are classified into costs to obtain a contract and costs to fulfill a contract.
(1) Costs to fulfill a contract
The costs to fulfill a contract are recognized as an asset when the following criteria are met:
① the costs relate directly to a contract or an anticipated contract, including direct labor, directmaterials, manufacturing costs (or similar costs), costs that are explicitly chargeable to the customer underthe contract and other costs that are incurred only because the Company entered into the contract;
② the costs enhance resources of the Company that will be used in satisfying performanceobligations in the future;
③ the costs are expected to be recovered.
The asset is presented in either inventories or other current assets depending on whether theamortization period determined upon initial recognition is over a normal operating cycle.
(2) Costs to obtain a contract
The costs to obtain a contract are recognized as an asset if the Company expects to recover theincremental costs of obtaining a contract.
The incremental costs are those costs that the Company incurs to obtain a contract with a customerthat it would not have incurred if the contract had not been obtained (for example, a sales commission).The costs are carried into current profit and loss when incurred if the amortization period is not over a year.
(3) Amortization of contract costs
The asset recognized for contract costs is amortized on a systematic basis consistent with the patternof the transfer of the goods or services to which the asset relates, at the point in time or over a period oftime, and carried into current profit and loss.
(4) Impairment on contract costs
The Company shall recognize an impairment loss in profit or loss to the extent that the carrying valueof an asset relating to contract costs exceeds: the amount of consideration that the Company expects toreceive in the future and that the Company has received but not yet recognized as revenue, in exchange forthe goods or services to which the asset relates ("the consideration"), less the costs that relate directly toproviding those goods or services and that have not been recognized as expenses, and further considerswhether it is necessary to establish an estimated liability relating to a contract that leads to loss:
① the amount of consideration that the Company expects to receive in the future and that theCompany has received but not yet recognized as revenue, in exchange for the goods or services to whichthe asset relates;
② the costs that relate directly to providing those goods or services and that have not been recognizedas expenses.
After the impairment provision is established, if any change in impairment factors from the previousperiod causes that the difference between the above two amounts is higher than the carrying value of theasset, the impairment provision is reversed and carried into current profit and loss to the extent that thecarrying value after the reversal does not exceed the carrying value on the reversal date should the provisionwas not established.
40. Government grants
"√ Applicable" "□ Not applicable"
(1) Judgement basis for and accounting treatment for grants related to assets
Grants related to assets are government grants which the Company obtains to purchase, construct orotherwise acquire long-term assets; if the subjects of a grant are not explicitly stated in the governmentdocument, the basis for classifying the grant into a grant related to assets or a grant related to income isexplained in sub items.Accounting treatment: The Company recognizes the grant as deferred income that is evenly carriedinto current profit and loss over the useful life of the asset (i.e., the depreciation and amortization period)from the asset reaches the its intended use condition. The remaining deferred income is recognized intocurrent profit and loss if the asset is disposed before its useful life expires. But a grant measured at itsnominal amount is directly recognized into current profit and loss.
(2) Judgement basis for and accounting treatment for grants related to income
Grants related to income are government grants other than those related to assets.
Accounting treatment:
① Grants related to income are recognized as deferred income if they are used to compensaterelevant expenses or losses to be incurred; and they are carried into current profit and loss or to write downrelevant costs when relevant expenses are recognized.
② Grants related to income are directly carried into current profit and loss or to write down relevantcosts if they are used to compensate relevant expenses or losses that the Company have incurred.
③ When should grants are recognized
A government grant is recognized when the Company complies with the conditions attaching to itand the grant will be received.
④ Measurement of grants
If a grant is a monetary asset, it is measured at the amount received or receivable; if a governmentgrant is a non-monetary asset, it is measured at fair value, or at nominal value if the fair value cannot beobtained reliably.
41. Deferred tax assets/ deferred tax liabilities
"√ Applicable" "□ Not applicable"
Income tax is accounted for under the balance sheet liability method.
A deferred tax asset is recognized for deductible temporary differences to the extent that it is probablethat such temporary differences will reverse in the foreseeable future and that taxable profit will beavailable against which the temporary difference will be utilized.
On balance sheet date, current tax assets and tax liabilities for current and prior periods are measuredat the amount expected to be paid to (recovered from) taxation authorities; deferred tax assets and deferredtax liabilities are measured on the balance sheet date at tax rates applicable to the periods during whichsuch assets are expected to be recovered or such liabilities are expected to be discharged.
The carrying values of deferred tax assets and deferred tax liabilities are reviewed on the balancesheet date. Current and deferred taxes are recognized as income or expense and included in profit or lossfor the period, except to the extent that the taxes arise from transactions or events that are recognizeddirectly in owners’ equity and business combinations.
42. Lease
(1). Accounting for operating leases
"□ Applicable" "√ Not applicable"
(2). Accounting for financial leases
"□ Applicable" "√ Not applicable"
(3). Determination of and accounting for lease under new lease standards
"√ Applicable" "□ Not applicable"
A lease is a contract under which the lessor agrees to allow a lessee to control the use of one or moreidentified assets for a stated period of time in exchange for consideration. The Company assesses whethera contract is a lease or contains a lease on the commencement date of the contract.
① The Company as lessee
a. Initial measurement
On the commencement date of a lease, the Company recognizes a right-of-use asset for the asset thatit can use over the lease period and a lease liability for the present value of lease payments that it has notmade, short-term leases and low-value leases are exempted. In calculating the present value of leasepayments, the Company uses the interest rate implicit in the lease as the discount rate; if the rate cannot bedetermined, the Company uses its incremental borrowing rate.
The amount of initial measurement of a right-of-use asset includes:
A. the amount of the initial measurement of the lease liability;
B. payments made at or before the commencement date of the lease, less any lease incentives received(if any);
C. initial direct costs incurred by the Company;
D. an estimate of costs to be incurred when the Company removes the asset, restores the place wherethe asset is installed or restores the asset to the condition agreed by the lease terms (excluding costs incurredto produce inventories).
The amount of the initial measurement of the lease liability includes:
A. fixed payments (including in-substance fixed payments), less any lease incentives receivable (ifany);
B. variable lease payments that depend on an index or a rate;
C. the exercise price of a purchase option that the Company is reasonably certain to exercise;
D. payments for terminating the lease provided that the lease term reflects that the Company willexercise the termination option;
E. amounts expected to be payable by the Company under residual value guarantees.
b. Subsequent measurement
The depreciation of right-of-use assets are established under Accounting Standards for BusinessEnterprises No. 4 - Fixed Assets (refer to “fixed assets” for details). Depreciation of a lease asset is providedover remaining useful life of a right-of-use asset if the Company is able to reasonably determine that it willobtain the ownership of the asset upon the lease term expires. Otherwise, the depreciation is provided overthe shorter of the remaining useful life and the lease term.
The Company uses a fixed periodical interest rate to calculate the interest on the lease liability overeach period in the lease term and recognizes it into current profit and loss or relevant costs of asset. Thevariable lease payments not included into the measurement of a lease measurement are included intocurrent profit and loss or relevant costs of asset when incurred.
After the commencement date of the lease, the Company will re-measure the lease liability at thepresent value of changed lease payments in the event of any change in-substance fixed payments change,in the amounts expected to be payable under residual value guarantees, the index or rate used fordetermining the lease payments, the assessment result or actual exercise of purchase option, renewal optionor termination option, and the carrying value of the right-of-use asset is adjusted accordingly. Theremaining amount is included into current profit and loss if the lease liability needs to be further reducedafter the carrying value of the right-of-use asset has been written down to zero.
c. Short-term leases and low-value leases
A short-term lease is a lease that, at the date of commencement, has a term of 12 months or less, anddoes not contain any purchase option; a low-value lease is a lease for which the underlying asset, whennew, is not over 50,000.00 yuan.
d. Lease modification
A lease modification is a change in the scope of a lease, or the consideration for a lease, that was notpart of the original terms and conditions of the lease, including adding or removing the right to use one ormore underlying assets, shortening or extending the contractual lease term, and so on. The effective dateof a lease modification is the date on which both parties agree to the lease modification.
The Company accounts for a lease modification as a separate lease if both of the following conditionsexist:
A. the modification increases the scope of the lease or extends the lease term by adding the right touse one or more underlying assets; and
B. the consideration for the lease increases by an amount commensurate with the stand-alone pricefor the increase in scope or for the extension in the lease term, as adjusted for the particular circumstancesof the contract.
For a modification that is not a separate lease, the Company re-allocates the consideration after themodification, re-determines the lease term, and re-measures the lease liability using a revised discount rateand the revised term payments determined at the modification date. In calculating the present value of therevised lease payments, the Company uses the interest rate implicit in the remaining lease as the discountrate; if the rate cannot be determined, the Company uses its incremental borrowing rate on the effectivedate of the lease modification.
If a lease modification leads to a decreased lease scope or a shortened lease term, the Companyadjusts the carrying value of the right-of-use asset to reflect the partial or whole termination of the lease,and includes the gain or loss from the partially or wholly terminated lease into current profit and loss. TheCompany adjusts the carrying value of the right-of-use asset if any other lease modification leads to the re-measurement of the lease liability.
② The Company as lessor
A lease is classified into either a financial lease or an operating lease on the commencement datedepending on the substance of the transaction. A financial lease is a type of lease in which all risks andrewards relating to ownership of the lease asset are substantially transferred. All other leases are operatingleases.a. Operating leaseThe Company recognizes lease payments as the rental income over the lease term on a straight-linebasis. Variable lease payments not included into the lease payments that are related to an operating leaseare included into current profit and loss when incurred.b. Financial leaseThe Company recognizes the lease payments and de-recognizes the lease asset on commencementdate of the lease. Lease payments receivable are initially measured at net investment in the lease (the sumof the unguaranteed residual value and the present value of the lease payments that are not yet received oncommencement date of the lease discounted at the interest rate implicit in the lease), and the interest incomeover the lease term is recognized at the fixed periodical interest rate. The variable lease payments notincluded into the measurement of the net investment in a lease are included into current profit and losswhen incurred.
③ Leaseback
a. The Company as seller and lessee
The Company determines whether the transfer of the asset in a leaseback qualifies as a sale.
A. If the transfer does not qualify as a sale, the Company continues to recognize the asset on itsbalance sheet and accounts the received cash as a financial liability subject to the Accounting Standardsfor Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments (2017).
B. If the transfer qualifies as a sale, the Company measures the right-of-use asset from the leasebackat the proportion of the previous carrying value that is retained for use by the Company and recognizes again or loss only to the extent that the right is transferred to the buyer and lessor. The Company makes thefollowing adjustments if the fair value of the consideration for the sale of an asset does not equal the fairvalue of the asset, or if the payments for the lease are not at market rates;
C. Any below-market terms shall be accounted for as a prepayment of lease payments; and
D. Any above-market terms shall be accounted for as additional financing provided by the buyer-lessor to the seller-lessee. At the same time, the lesser adjusts its sale gain or loss at fair value and thelessor adjusts the rental income at market rates.
The Company makes the adjustment by one of the following amounts that is easier to be determined:
I. difference between the fair value of the consideration for the sale of the asset and the fair value ofthe asset;
II. difference between the present value of the payments for the lease and the present value of therent at market rates.
b. The Company as buyer and lessor
If the transfer does not qualify as a sale, the Company does not recognize the asset, but accounts thecash paid as a financial asset subject to the Accounting Standards for Business Enterprises No. 22 -Recognition and Measurement of Financial Instruments (2017).
43. Other significant accounting policies and accounting estimates
"□ Applicable" "√ Not applicable"
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
"√Applicable" "□Not applicable"
| Changes in accounting policies and reasons | Approval procedures | Notes (names and amounts significantly impacted) |
| The Ministry of Finance issued Accounting Standards for Business Enterprises No.21 — Lease (as amended in 2018) in December, 2018 (“New Lease Standards”). Companies listed in | The 21st meeting of the 7th board of directors | Refer to other notes for details |
the Chinese mainland are required to apply thenew lease standards from January 1, 2021.
Other notes:
The Company applied the new lease standards from January 1, 2021. Under the guidance for the newlease standards, the Company has chosen to adjust the retained earnings at the beginning of 2021 and otherrelevant item amounts with respect to the cumulative effects on contracts that have not been completed onthe first application date, the comparative financial statements are not adjusted.The effects on financial statements of the said change in accounting policies are below:
① Consolidated balance sheet
Unit: Yuan Currency: CNY
| Item | 2020-12-31 | Adjustment | 2021-01-01 |
| Fixed assets | 29,829,602,625.00 | -1,579,039,410.89 | 28,250,563,214.11 |
| Right-of-use assets | 4,250,066,802.56 | 4,250,066,802.56 | |
| Deferred expenses | 835,269,963.57 | -675,195,960.61 | 160,074,002.96 |
| Non-current liabilities due within one year | 2,533,702,158.71 | 272,775,409.95 | 2,806,477,568.66 |
| Lease liabilities | 2,014,878,545.62 | 2,014,878,545.62 | |
| Long-term payables | 2,526,572,275.65 | -132,407,337.96 | 2,394,164,937.69 |
| Undistributed profit | 9,066,353,854.50 | -155,171,503.88 | 8,911,182,350.62 |
| Minority interest | 1,002,541,280.46 | -4,243,682.67 | 998,297,597.79 |
② Parent balance sheet
Unit: Yuan Currency: CNY
| Item | 2020-12-31 | Adjustment | 2021-01-01 |
| Right-of-use assets | 203,257,388.29 | 203,257,388.29 | |
| Deferred expenses | 18,576,273.26 | -6,856,371.77 | 11,719,901.49 |
| Non-current liabilities due within one year | 370,178,150.11 | 18,737,622.44 | 388,915,772.55 |
| Lease liabilities | 180,969,883.10 | 180,969,883.10 | |
| Undistributed profit | 4,107,010,606.38 | -3,306,489.02 | 4,103,704,117.36 |
No other changes in significant accounting policies occurred in the reporting period except for thesaid change.
(2). Changes in significant accounting estimates
"□ Applicable" "√ Not applicable"
(3). Adjustments of financial statements at the beginning of the year for which the new lease
standards are applied for the first time in 2021"√ Applicable" "□ Not applicable"
Consolidated Balance Sheet
Unit: Yuan Currency: CNY
| Item | 2020-12-31 | 2021-01-01 | Adjustment |
| Current assets: | |||
| Cash at bank and on hand | 6,264,168,242.03 | 6,264,168,242.03 | |
| Settlement provisions | |||
| Lending to banks and other financial institutions | |||
| Held-for-trading financial assets | 1,531,863,068.12 | 1,531,863,068.12 | |
| Derivative financial assets | |||
| Notes receivable | 530,962,356.27 | 530,962,356.27 | |
| Accounts receivable | 1,069,352,776.17 | 1,069,352,776.17 | |
| Receivables financing | 9,711,898,567.92 | 9,711,898,567.92 | |
| Prepayments | 1,113,458,878.37 | 1,113,458,878.37 | |
| Premium receivable | |||
| Reinsurance receivable | |||
| Reinsurance contract reserve receivable | |||
| Other receivables | 797,517,755.34 | 797,517,755.34 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Reverse repo | |||
| Inventories | 2,773,077,527.98 | 2,773,077,527.98 | |
| Contract assets | 988,680,196.66 | 988,680,196.66 | |
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 810,572,652.99 | 810,572,652.99 | |
| Total current assets | 25,591,552,021.85 | 25,591,552,021.85 | |
| Non-current assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 477,736,082.22 | 477,736,082.22 | |
| Other equity investments | 153,445,100.85 | 153,445,100.85 | |
| Other non-current financial assets | 1,258,097.00 | 1,258,097.00 | |
| Investment properties | 102,993,048.15 | 102,993,048.15 | |
| Fixed assets | 29,829,602,625.00 | 28,250,563,214.11 | -1,579,039,410.89 |
| Construction in progress | 2,997,901,620.59 | 2,997,901,620.59 | |
| Biological assets | 91,397.35 | 91,397.35 | |
| Oil and gas assets | |||
| Right-of-use assets | 4,250,066,802.56 | 4,250,066,802.56 | |
| Intangible assets | 1,663,705,788.75 | 1,663,705,788.75 | |
| R&D expenses | |||
| Goodwill | 635,818,717.99 | 635,818,717.99 | |
| Deferred expenses | 835,269,963.57 | 160,074,002.96 | -675,195,960.61 |
| Deferred tax assets | 415,550,864.14 | 415,550,864.14 | |
| Other non-current assets | 1,547,022,743.45 | 1,547,022,743.45 | |
| Total non-current assets | 38,660,396,049.06 | 40,656,227,480.12 | 1,995,831,431.06 |
| Total assets | 64,251,948,070.91 | 66,247,779,501.97 | 1,995,831,431.06 |
| Current liabilities: | |||
| Short-term borrowings | 2,349,154,525.77 | 2,349,154,525.77 | |
| Borrowings from central bank | |||
| Borrowings from banks and other financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 9,411,924,434.78 | 9,411,924,434.78 | |
| Accounts payable | 3,917,320,980.64 | 3,917,320,980.64 | |
| Advances from customers | 35,072,100.83 | 35,072,100.83 | |
| Contract liabilities | 2,302,728,492.73 | 2,302,728,492.73 | |
| Sale of financial assets to be repurchased | |||
| Inward deposits | |||
| Payments from sale and purchase of securities on behalf of customers | |||
| Payments from underwriting securities on behalf of customers | |||
| Employee benefits payable | 736,363,100.05 | 736,363,100.05 | |
| Taxes payable | 220,414,765.91 | 220,414,765.91 | |
| Other payable | 743,639,264.91 | 743,639,264.91 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Service charge and commission payable | |||
| Reinsurance receivable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 2,533,702,158.71 | 2,806,477,568.66 | 272,775,409.95 |
| Other current liabilities | 130,204,120.53 | 130,204,120.53 | |
| Total current liabilities | 22,380,523,944.86 | 22,653,299,354.81 | 272,775,409.95 |
| Non-current liabilities: | |||
| Reinsurance contract reserve | |||
| Long-term borrowings | 6,296,585,539.34 | 6,296,585,539.34 | |
| Bonds payable | 410,096,446.33 | 410,096,446.33 | |
| Including: Preference share | |||
| Perpetual bond | |||
| Lease liabilities | 2,014,878,545.62 | 2,014,878,545.62 | |
| Long-term payables | 2,526,572,275.65 | 2,394,164,937.69 | -132,407,337.96 |
| Long-term employee benefits payable | |||
| Estimated liabilities | |||
| Deferred income | 782,273,717.14 | 782,273,717.14 | |
| Deferred tax liability | 311,949,837.40 | 311,949,837.40 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 10,327,477,815.86 | 12,209,949,023.52 | 1,882,471,207.66 |
| Total liabilities | 32,708,001,760.72 | 34,863,248,378.33 | 2,155,246,617.61 |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,548,184.00 | 4,501,548,184.00 | |
| Other equity instruments | |||
| Including: Preference share | |||
| Perpetual bond | |||
| Capital surplus | 16,105,693,787.44 | 16,105,693,787.44 | |
| Less: Treasury shares | |||
| Other comprehensive income | -73,914,221.72 | -73,914,221.72 | |
| Special reserve | 16,401,063.07 | 16,401,063.07 | |
| Surplus reserve | 925,322,362.44 | 925,322,362.44 | |
| General risk reserve | |||
| Undistributed profit | 9,066,353,854.50 | 8,911,182,350.62 | -155,171,503.88 |
| Total equity attributable to owners or shareholders of parent company | 30,541,405,029.73 | 30,386,233,525.85 | -155,171,503.88 |
| Minority interest | 1,002,541,280.46 | 998,297,597.79 | -4,243,682.67 |
| Total owners’ equity (or shareholders' equity) | 31,543,946,310.19 | 31,384,531,123.64 | -159,415,186.55 |
| Total liabilities and owners’ equity (or shareholders' equity) | 64,251,948,070.91 | 66,247,779,501.97 | 1,995,831,431.06 |
Notes on item adjustments:
"□ Applicable" "√ Not applicable"
Parent Balance Sheet
Unit: Yuan Currency: CNY
| Item | 2020-12-31 | 2021-01-01 | Adjustment |
| Current assets: | |||
| Cash at bank and on hand | 5,430,260,350.86 | 5,430,260,350.86 | |
| Held-for-trading financial assets | 1,500,000,000.00 | 1,500,000,000.00 | |
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 3,002,746.85 | 3,002,746.85 | |
| Receivables financing | 69,390,676.70 | 69,390,676.70 | |
| Prepayments | 16,500,340.59 | 16,500,340.59 | |
| Other receivables | 12,569,916,260.88 | 12,569,916,260.88 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 235,553,546.57 | 235,553,546.57 | |
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 11,747,755.66 | 11,747,755.66 | |
| Total current assets | 19,836,371,678.11 | 19,836,371,678.11 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 3,821,033,136.03 | 3,821,033,136.03 | |
| Long-term equity investments | 13,836,401,258.90 | 13,836,401,258.90 | |
| Other equity investments | 153,445,100.85 | 153,445,100.85 | |
| Other non-current financial assets | |||
| Investment properties | 38,690,960.02 | 38,690,960.02 | |
| Fixed assets | 298,259,368.75 | 298,259,368.75 | |
| Construction in progress | 26,343,888.97 | 26,343,888.97 | |
| Biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 203,257,388.29 | 203,257,388.29 | |
| Intangible assets | 60,200,180.33 | 60,200,180.33 | |
| R&D expenses | |||
| Goodwill | |||
| Deferred expenses | 18,576,273.26 | 11,719,901.49 | -6,856,371.77 |
| Deferred tax assets | 1,610,507.55 | 1,610,507.55 | |
| Other non-current assets | |||
| Total non-current assets | 18,254,560,674.66 | 18,450,961,691.18 | 196,401,016.52 |
| Total assets | 38,090,932,352.77 | 38,287,333,369.29 | 196,401,016.52 |
| Current liabilities: | |||
| Short-term borrowings | 1,899,865,349.31 | 1,899,865,349.31 | |
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 300,000,000.00 | 300,000,000.00 | |
| Accounts payable | 81,247,275.28 | 81,247,275.28 | |
| Advances from customers | 1,921,719.85 | 1,921,719.85 | |
| Contract liabilities | 122,226,302.00 | 122,226,302.00 | |
| Employee benefits payable | 93,517,635.88 | 93,517,635.88 | |
| Taxes payable | 6,703,834.73 | 6,703,834.73 | |
| Other payable | 3,898,411,472.34 | 3,898,411,472.34 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 370,178,150.11 | 388,915,772.55 | 18,737,622.44 |
| Other current liabilities | 126,263.87 | 126,263.87 | |
| Total current liabilities | 6,774,198,003.37 | 6,792,935,625.81 | 18,737,622.44 |
| Non-current liabilities: | |||
| Long-term borrowings | 3,405,262,828.00 | 3,405,262,828.00 | |
| Bonds payable | 410,096,446.33 | 410,096,446.33 | |
| Including: Preference share | |||
| Perpetual bond | |||
| Lease liabilities | 180,969,883.10 | 180,969,883.10 | |
| Long-term payables | 875,898,885.36 | 875,898,885.36 | |
| Long-term employee benefits payable | |||
| Estimated liabilities | |||
| Deferred income | |||
| Deferred tax liability | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 4,691,258,159.69 | 4,872,228,042.79 | 180,969,883.10 |
| Total liabilities | 11,465,456,163.06 | 11,665,163,668.60 | 199,707,505.54 |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,548,184.00 | 4,501,548,184.00 | |
| Other equity instruments | |||
| Including: Preference share | |||
| Perpetual bond | |||
| Capital surplus | 17,084,837,736.04 | 17,084,837,736.04 | |
| Less: Treasury shares | |||
| Other comprehensive income | 6,757,300.85 | 6,757,300.85 | |
| Special reserve | |||
| Surplus reserve | 925,322,362.44 | 925,322,362.44 | |
| Undistributed profit | 4,107,010,606.38 | 4,103,704,117.36 | -3,306,489.02 |
| Total owners’ equity (or shareholders' equity) | 26,625,476,189.71 | 26,622,169,700.69 | -3,306,489.02 |
| Total liabilities and owners’ equity (or shareholders' equity) | 38,090,932,352.77 | 38,287,333,369.29 | 196,401,016.52 |
Notes on item adjustments:
"□ Applicable" "√ Not applicable"
(4). Notes on retrospective adjustment of prior comparative data due to application of the new lease
standards for the first time in 2021"□ Applicable" "√ Not applicable"
45. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Major taxes types and tax rates
Major taxes types and tax rates"√ Applicable" "□ Not applicable"
| Tax type | Tax basis | Tax rate |
| VAT | Sales amount | 0%, 3%, 5%, 6%, 9%, 13% |
| Consumption tax |
| Business tax | ||
| Urban construction and maintenance tax | Turnover tax payable | 1%-7% |
| Corporate income tax | Turnover tax payable | 15%, 16.5%, 17%, 20%, 25% |
| Education surcharge | Turnover tax payable | 3% |
| Local education surcharge | Turnover tax payable | 2% |
| Land use tax | Area of used land | Local provisions |
| Property tax | Original value × 70%, rent | 1.2%, 12% |
Disclose the circumstance when different corporate income tax payers exist"□ Applicable" "√ Not applicable"
2. Tax preferences
"√ Applicable" "□ Not applicable"
(1) VAT
Sale of feed by domestic companies is exempt from value added tax under the Cai Shui [2001] No.121 document from the Ministry of Finance and the State Taxation Administration.Sale of cement by Sichuan Yongxiang New Materials Co., Ltd. is entitled to immediate return of 70%VAT under the Cai Shui [2015] No. 78 document from the Ministry of Finance and the State TaxationAdministration.Sale of agricultural products directly produced by some subsidiaries in livestock farming businessincluding Nanjing Tongwei Aquaculture Technology Co., Ltd. and Chengdu Tongwei AquacultureTechnology Co., Ltd. is exempt from value-added tax under the Temporary Regulations on VAT of thePeople’s Republic of China (No. 538 order from the State Council) and the Implementation Rules on theTemporary Regulations on VAT of the People's Republic of China (No. 50 order from the Ministry ofFinance and the State Taxation Administration).
The Company's transfer of the right of use of land to agricultural producers for the purpose ofagricultural production is exempt from value added tax from May 1, 2016 under the Cai Shui [2016] No.36 document from the Ministry of Finance and the State Taxation Administration.
(2) Corporate income tax
1) Parent (including management head office and subsidiaries and branches) consolidated tax return
The collection provisions for corporate income tax in respect of the parent company are “untiedcalculations, tiered administration, local prepayments, consolidated clearing, and treasury adjustment” inaccordance with the Corporate Income Tax Law and the Procedures for Collection of ConsolidatedCorporate Income Tax for Cross-region Operations ((2012) No. 57 Announcement of the State TaxationAdministration).
2) Units entitled to corporate income tax preference for enterprises for China Western Development
The Announcement on Continuing the Corporate Income Tax for Enterprises for China WesternDevelopment ((2020) No.23 Announcement of the National Development and Reform Commission)jointly released by the Ministry of Finance, the State Taxation Administration and the NationalDevelopment and Reform Commission) provided for those enterprises in encouraged industriesestablished in West China are entitled to income tax rate of 15% from January 1, 2021 to December 31,2030. Tongwei Agricultural Finance Guarantee Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co.,Ltd., Sichuan Yongxiang Polysilicon Co., Ltd., Sichuan Yongxiang New Materials Co., Ltd., SichuanYongxiang New Energy Co., Ltd., Sichuan Yongxiang Silicon Materials Co., Ltd., Sichuan YongxiangPV Technology Co., Ltd., Inner Mongolia Tongwei High-purity Crystalline Silicon Company Co., Ltd.,Yunnan Tongwei High-purity Crystalline Silicon Company Limited, Tongwei Solar (Chengdu) Co., Ltd.,Tongwei Solar (Meishan) Co., Ltd., Tongwei Solar (Jintang) Co., Ltd., Tonghe New Energy (Jintang) Co.,Ltd. and PV powerplant companies are entitled to this reduction.
3) Subsidiaries approved as high-tech enterprises that are entitled to income tax rate of 15%
Guangdong Tongwei Feed Co., Ltd. was approved as a high-tech enterprise in 2020 (No.GR202044000114).
Jieyang Tongwei Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.GR202144000333).
Nanning Aigefei Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.GR202145000799).
Zhuhai Haiyi Aquatic Products Feed Co., Ltd. was approved as a high-tech enterprise in 2021 (No.GR202144012792).
Sichuan Willtest Technology Co., Ltd. was approved as a high-tech enterprise in 2021 (No.GR202151001355).
Sichuan Fusion Link Co., Ltd. was approved as a high-tech enterprise in 2020 (No.GR202051001569).
Chengdu Tongwei Automation Equipment Co., Ltd. was approved as a high-tech enterprise in 2021(No. GR202151001846).
Tongwei Solar (Hefei) Co., Ltd. was approved as a high-tech enterprise in 2021 (No.GR202134000919).
Tongwei Solar (Anhui) Co., Ltd. was approved as a high-tech enterprise in 2020 (No.GR202034000630).
4) Subsidiaries engaged in seawater mariculture and inland aquaculture with entitlement in 50%reduction of income tax
The Article 86 of the Implementation Regulations on the Corporate Income Tax of the People'sRepublic of China issued on December 6, 2007, the income from in mariculture and inland aquaculture issubject to 50% reduction in income tax. Subsidiaries including Hainan Hairen Aquatic Seed Co., Ltd.,Zhanjiang Haiyi Seed Co., Ltd., Tongwei Aquaculture-Photovoltaic Integration (Rudong) Co., Ltd.,Chengdu Tongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd.,Nanjing Tongwei Aquaculture Technology Co., Ltd., and Chengdu Tongwei Aquaculture Technology Co.,Ltd. are entitled to this preference.
5) Overseas subsidiaries entitled to tax preferences
The 218/2013/N-CP document issued by the Government of Vietnam on December 26, 2013, thestatutory rate of corporate income tax in Vietnam was reduced to 20% from January 1, 2016. The taxpreferences to which Tongwei Vietnam Co., Ltd. is entitled: 10% of tax preference to revenue from feedbusiness; no preference to revenue from non-main business. The tax preferences to which Heping TongweiCo., Ltd. is entitled: a 10-year preference period for its feed business from the start of the production andoperation, exemption from income tax for two years and 50% income tax for four years from the start ofthe profitability period. The tax preferences to which Qianjiang Tongwei Co., Ltd. is entitled: a 15-yearpreference period for its feed business from the start of the production and operation during which the taxrate is 10%, exemption from income tax for four years and 50% income tax for nine years from the startof the profitability period.
For Tongwei Feed Mill Bangladesh Ltd., the interest income on bank deposits out of its total profitis subject to an income tax rate of 35% (10% is withheld by banks), net income from non-operatingactivities is subject to an income tax rate of 35%. The profit net of interest income and non-operatingincome is subject to multi-level income tax rate: 3% for 0 to 1 million BDT (including 1 million); 10%for 1 million to 2 million BDT (including 2 million); and 15% for the amount over 2 million BDT.
6) Tax preferences for public infrastructure projects with key national supports
According 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 Corporate Income Tax for Public Infrastructure Projects (Cai Shui 2008 [46]), the income frominvestment and operation of enterprises engaged in public infrastructure projects supported by the Stateare exempt from corporate 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 corporate income tax is halvedfrom the fourth to the sixth year.
According to the provisions of Cai Shui [2008] No. 116, new solar power generation projectsapproved by the competent investment department of the government are public infrastructure projects.Now, new PV power plants of the subsidiaries of Tongwei New Energy Co., Ltd. have been connected tothe grid for power generation, are entitled to the three-year exemption and three-year 50% reduction ofincome tax.
3. Others
"□ Applicable" "√ Not applicable"
VII. Notes to items in consolidated financial statements
1. Cash at bank and on hand
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Cash on hand | 109,314.50 | 126,156.42 |
| Cash at bank | 2,901,525,647.94 | 5,972,818,689.87 |
| Other cash at bank and on hand | 100,295,919.94 | 291,223,395.74 |
| Total | 3,001,930,882.38 | 6,264,168,242.03 |
| Including: Total deposits overseas | 205,052,603.96 | 290,741,946.92 |
2. Held-for-trading financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Financial assets measured at fair value through current profit and loss | 10,617,668.58 | 1,531,863,068.12 |
| Including: | ||
| Debt investments | 1,500,000,000.00 | |
| Derivative financial assets | 10,617,668.58 | 4,863,068.12 |
| Equity investments | 27,000,000.00 | |
| Total | 10,617,668.58 | 1,531,863,068.12 |
Other notes:
"√ Applicable" "□ Not applicable"A derivative financial asset is a paper gain from the difference between the locked-in exchange ratein the undelivered forward lock-in contract within the scope of forward foreign exchange contract signedby the Company for export sale and the Central Bank’s parity rate at the end of the period (hedgeineffectiveness).
3. Derivative financial assets
"□ Applicable" "√ Not applicable"
4. Notes receivable
(1). Presentations of notes receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Banker's acceptance | ||
| Commercial acceptance | 200,000,000.00 | |
| Letter of credit | 1,376,925,682.02 | 530,962,356.27 |
| Total | 1,576,925,682.02 | 530,962,356.27 |
(2). Notes receivable pledged by the Company as of the end of the period
"□ Applicable" "√ Not applicable"
(3). Notes receivable endorsed or discounted by the Company as of the end of the period that havenot been due on the balance sheet date"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Amount de-recognized at the end of the period | Amount not derecognized at the end of the period |
| Banker's acceptance |
| Commercial acceptance | 200,000,000.00 | |
| Total | 200,000,000.00 |
(4). Notes that have been converted by the Company to other receivables due to non-performanceof issuers as of the end of the period"□ Applicable" "√ Not applicable"
(5). Disclosure by method for creation of provision for bad debts
"□ Applicable" "√ Not applicable"Creation of provision for a single bad debt:
"□ Applicable" "√ Not applicable"
Creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"Refer to disclosure of other receivables if the provision for bad debts is created under the general modelfor expected credit loss:
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
(7). Notes receivable written off in current period
"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
5. Accounts receivable
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Account receivable age | Closing balance |
| Within 1 year | 2,114,817,099.60 |
| 1- 2 years | 773,250,649.84 |
| 2- 3 years | 159,591,279.30 |
| Over 3 years | 120,623,776.64 |
| Total | 3,168,282,805.38 |
(2). Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Closing balance | Opening balance | ||||||||
| Balance | Provision for bad debts | Carrying value | Balance | Provision for bad debts | Carrying value | |||||
| Amount | Percent (%) | Amount | Provision (%) | Amount | Percent (%) | Amount | Provision (%) | |||
| Creation of provision for a single bad debt | 103,540,864.18 | 3.27 | 1,035,408.64 | 1.00 | 102,505,455.54 | 79,183,407.43 | 6.69 | 791,834.07 | 1.00 | 78,391,573.36 |
| Creation of provision for a group of bad debts | 3,064,741,941.20 | 96.73 | 251,720,247.66 | 8.21 | 2,813,021,693.54 | 1,104,970,371.10 | 93.31 | 114,009,168.29 | 10.32 | 990,961,202.81 |
| Including: | ||||||||||
| Group 1 | 11,616,353.54 | 0.98 | 11,616,353.54 | |||||||
| Group 2 | 1,435,401,418.99 | 45.30 | 68,054,324.68 | 4.74 | 1,367,347,094.31 | 526,840,587.52 | 44.49 | 26,100,847.26 | 4.95 | 500,739,740.26 |
| Group 3 | 17,350.00 | 0.00 | 17,350.00 | 22,300.00 | 22,300.00 | |||||
| Group 4 | 1,629,323,172.21 | 51.43 | 183,665,922.98 | 11.27 | 1,445,657,249.23 | 566,491,130.04 | 47.84 | 87,908,321.03 | 15.52 | 478,582,809.01 |
| Total | 3,168,282,805.38 | 100.00 | 252,755,656.30 | 7.98 | 2,915,527,149.08 | 1,184,153,778.53 | 100.00 | 114,801,002.36 | 9.69 | 1,069,352,776.17 |
Creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Name | Closing balance | |||
| Balance | Provision for bad debts | Provision (%) | Provision reason | |
| Price of feed delivered to overseas customers secured by banks | 103,540,864.18 | 1,035,408.64 | 1.00 | Note: |
| Total | 103,540,864.18 | 1,035,408.64 | 1.00 | / |
Note on creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"Price of feed delivered to overseas customers are fully secured by local banks. The security banks willmake payments unconditionally when the payments are due, which are at a low risk, the provision percentis set as 1% accordingly.
Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"Creation by group: Group 2
Unit: Yuan Currency: CNY
| Name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Power supply companies (desulfurization electricity price) | 193,173,488.53 | ||
| Electricity price subsidies | 1,242,227,930.46 | 68,054,324.68 | 5.48 |
| Total | 1,435,401,418.99 | 68,054,324.68 | 4.74 |
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"√ Applicable" "□ Not applicable"The desulfurization electricity prices are recovered within the settlement period for no risk, noprovision for bad debts is created; electricity price subsidies have been included into the national subsidycatalog, the subsidies that have not been included into the catalog are presented in contract assets.
Creation by group: Group 3
Unit: Yuan Currency: CNY
| Name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 12,800.00 | ||
| Chengdu Tongwei Business Management Co., Ltd. | 4,550.00 | ||
| Total | |||
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"√ Applicable" "□ Not applicable"Accounts receivable from subsidiaries and joint ventures of the parent company are at no risk, noprovision for bad debts is created.
Creation by group: Group 4
Unit: Yuan Currency: CNY
| Name | Closing balance |
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Within 1 year | 1,477,609,846.16 | 73,880,492.31 | 5.00 |
| 1- 2 years | 40,569,793.91 | 4,056,979.39 | 10.00 |
| 2- 3 years | 10,830,161.72 | 5,415,080.86 | 50.00 |
| Over 3 years | 100,313,370.42 | 100,313,370.42 | 100.00 |
| Total | 1,629,323,172.21 | 183,665,922.98 | 11.27 |
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general modelfor expected credit loss:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Current change | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Creation for a single debt | 791,834.07 | 243,574.57 | 1,035,408.64 | |||
| Risk group | 114,009,168.29 | 91,774,556.27 | 1,113,391.27 | 5,037,270.00 | 49,860,401.83 | 251,720,247.66 |
| Total | 114,801,002.36 | 92,018,130.84 | 1,113,391.27 | 5,037,270.00 | 49,860,401.83 | 252,755,656.30 |
Note: Other changes are the increase in provision for bad debts by 17,272,431.67 yuan due to the businesscombination under different control, the increase in provision for impairment on contract assets by32,936,359.14 yuan and the exchange difference of -348,388.97 yuan in current period.
Significant amounts recovered or reversed in current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Recovered or reversed amount | Recovery method |
| Customer 1 | 824,310.76 | Recovery of bad debts in prior period |
| Customer 2 | 69,802.68 | Recovery of bad debts in prior period |
| Customer 3 | 68,119.83 | Recovery of bad debts in prior period |
| Customer 4 | 60,000.00 | Recovery of bad debts in prior period |
| Other 4 customers | 91,158.00 | Recovery of bad debts in prior period |
| Total | 1,113,391.27 | / |
(4). Accounts receivable written off in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Accounts receivable written off | 5,037,270.00 |
Significant accounts receivable written off"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Nature of accounts receivable | Written off amount | Write-off reason | Write-off procedure | Whether the amount is generated from a related-party transaction |
| Customer 1 | Price of goods | 1,393,071.13 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 2 | Price of goods | 574,155.01 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 3 | Price of goods | 489,943.00 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 4 | Price of goods | 330,493.21 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 5 | Water surface rent | 321,040.07 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 6 | Price of goods | 308,207.73 | The payment is expected unrecoverable | Approval under due procedures | No |
| Other 22 customers | 1,620,359.85 | The payment is expected unrecoverable | Approval under due procedures | No | |
| Total | / | 5,037,270.00 | / | / | / |
Note on write-off of accounts receivable:
"□ Applicable" "√ Not applicable"
(5). Top five entities in accounts receivable at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Closing balance | Percent in the total accounts receivable at the end of the period (%) | Closing balance of provision for bad debts |
| Pig farming company under Tech-bank Note | 952,736,512.87 | 30.07 | 47,636,825.64 |
| Customer 1 | 148,652,448.40 | 4.69 | 7,432,622.42 |
| Customer 2 | 142,575,079.94 | 4.50 | 8,101,967.70 |
| Customer 3 | 123,726,985.49 | 3.91 | 8,052,946.80 |
| Customer 4 | 104,080,894.18 | 3.29 | 4,944,608.34 |
| Total | 1,471,771,920.88 | 46.45 | 76,168,970.90 |
Other notesNote: the age of accounts receivable from the pig farming company under Tech-bank Food Co., Ltd.(“Tech-bank”) is within the payment term agreed in the contract.
(6). Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7). Amounts of assets and liabilities generated due to transfer of accounts receivable and
continuing involvement"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
6. Receivables financing
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Banker's acceptance | 11,406,947,347.71 | 9,711,898,567.92 |
| Total | 11,406,947,347.71 | 9,711,898,567.92 |
Change in receivable financing and change in fair value in current period:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general modelfor expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) The banker's acceptances pledged by the Company as of the end of the period totaled10,084,007,955.24 yuan.
(2) The banker’s acceptances endorsed as of the end of the period that have not been due on the balancesheet date totaled 6,974,410,024.68 yuan.
(3) The banker's acceptances discounted as of the end of the period that have not been due on the balancesheet date totaled 2,278,756,254.77 yuan.The acceptors of the said banker's acceptances are banks with a very low possibility of non-performance, so these banker's acceptances have been de-recognized. The Company will be liable jointlyand severally with banks for bearers under the Law of Notes if the notes are not paid when they due.
7. Prepayments
(1). Prepayments by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Age | Closing balance | Opening balance | ||
| Amount | Percent (%) | Amount | Percent (%) | |
| Within 1 year | 1,592,976,378.78 | 99.15 | 1,103,470,579.96 | 99.10 |
| 1- 2 years | 9,894,205.53 | 0.62 | 5,066,523.70 | 0.46 |
| 2- 3 years | 1,238,495.57 | 0.08 | 3,006,226.96 | 0.27 |
| Over 3 years | 2,435,960.95 | 0.15 | 1,915,547.75 | 0.17 |
| Total | 1,606,545,040.83 | 100.00 | 1,113,458,878.37 | 100.00 |
Note on the reason for significant prepayments over 1 year:
No significant prepayment over 1 year.
(2). Top five entities in prepayments at the end of the current period
"√ Applicable" "□ Not applicable"The total amount of prepayments from top five entities for current period is 807,720,547.52 yuan,taking up 50.28% of the total amount of prepayments at the end of the period.
Other notes"√ Applicable" "□ Not applicable"No prepayment is written off in current period.
8. Other receivables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 611,985,134.57 | 797,517,755.34 |
| Total | 611,985,134.57 | 797,517,755.34 |
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(4). Dividend receivable
"□ Applicable" "√ Not applicable"
(5). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(7). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Age | Closing balance |
| Within 1 year | 314,878,125.17 |
| 1- 2 years | 192,908,217.57 |
| 2- 3 years | 71,709,103.87 |
| Over 3 years | 103,095,326.01 |
| Total | 682,590,772.62 |
(8). Classification by nature of payment
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
| Payment type | Closing balance | Opening balance |
| Performance bond | 444,273,452.92 | 374,102,261.00 |
| Asset disposal | 76,665,987.95 | |
| Government grants | 17,593,568.84 | 33,827,768.05 |
| Advances | 38,008,377.28 | 27,613,484.07 |
| Insurance claims | 4,702.00 | 306,340,731.68 |
| Others | 106,044,683.63 | 89,483,436.04 |
| Total | 682,590,772.62 | 831,367,680.84 |
(9). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Provision for bad debts | Stage I | Stage II | Stage III | Total |
| 12-Month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance on Jan-1-2021 | 17,308,901.67 | 16,541,023.83 | 33,849,925.50 | |
| The Jan-1-2021 balance during the current period | ||||
| -- Converted into stage II | ||||
| -- Converted into stage III | -4,110,162.00 | 4,110,162.00 | ||
| -- Reversed into stage II | ||||
| -- Reversed into stage I | ||||
| Creation in current period | 16,602,340.39 | 14,787,621.50 | 247,954.52 | 31,637,916.41 |
| Reversal in current period | ||||
| Clear in current period | ||||
| Write-off in current period | 4,358,116.52 | 4,358,116.52 | ||
| Other changes | 9,459,753.02 | 16,159.64 | 9,475,912.66 | |
| Balance on December -31-2021 | 39,260,833.08 | 31,344,804.97 | 70,605,638.05 |
Note on significant changes in balances of other receivables for which their provisions were changed incurrent period:
"√ Applicable" "□ Not applicable"Other changes include the increase in provision for bad debts by 9,459,753.02 yuan due to thebusiness combination and the exchange difference of 16,159.64 yuan.
Provisions for bad debts and basis for determining significant increases in credit risks of financialinstruments for current period:
"□ Applicable" "√ Not applicable"
(10). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Current change | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Other receivables | 33,849,925.50 | 31,637,916.41 | 4,358,116.52 | 9,475,912.66 | 70,605,638.05 | |
| Total | 33,849,925.50 | 31,637,916.41 | 4,358,116.52 | 9,475,912.66 | 70,605,638.05 | |
Significant amounts recovered or reversed in current period:
"□ Applicable""√ Not applicable"
(11). Other receivables written off in current period
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Other receivables written off in current period | 4,358,116.52 |
Significant receivables written off:
"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Nature of other receivables | Written off amount | Write-off reason | Write-off procedure | Whether the amount is generated from a related-party transaction |
| Customer 1 | Loan | 3,113,131.36 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 2 | Lease payments for water surface (land) | 495,909.04 | The payment is expected unrecoverable | Approval under due procedures | No |
| Other 20 customers | 749,076.12 | The payment is expected unrecoverable | Approval under due procedures | No | |
| Total | / | 4,358,116.52 | / | / | / |
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(12). Top five entities in other receivables at the end of the current period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Payment type | Closing balance | Age | Percent in the total other receivables at the end of the period (%) | Provision for bad debts closing balance |
| Entity 1 | Performance bond | 129,895,617.48 | Note 1 | 19.03 | |
| Entity 2 | Asset disposal | 76,665,500.00 | Within 1 year | 11.23 | |
| Entity 3 | Performance bond | 52,000,000.00 | 1- 2 years | 7.62 | |
| Entity 4 | Performance bond | 30,000,000.00 | Within 1 year | 4.40 | |
| Entity 5 | Performance bonds and advances | 28,747,399.57 | 2- 3 years | 4.21 | |
| Total | 317,308,517.05 | 46.49 |
Note: the amount of Performance bond receivable from entity 1 at the end of the current period was22,549,598.12 yuan for receivable age within 1 year, 43,162,846.70 yuan for receivable age of 1-2 years,6,905,870.77 yuan for receivable age of 2-3 years and 27,979,778.46 yuan for receivable age of over 3years.
(13). Grants receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Grant name | Closing balance | Age | Expected time and amount and basis |
| Entity 1 | Interest grant | 17,593,568.84 | Note |
Other notes
Note: amount for current period is determined under the agreement signed with the government, and
is expected to be recovered within 1 year.
(14). Other receivables de-recognized due to transfer of financial assets"□ Applicable" "√ Not applicable"
(15). Amounts of assets and liabilities generated due to transfer of other receivables andcontinuing involvement"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"Disclosure of closing balances of other receivables by method for creation of provision for bad debts:
| Category | Balance | Provision for bad debts | Carrying value | ||
| Amount | Percent (%) | Amount | Percent (%) | ||
| Creation of provision for a single bad debt | 11,903,851.90 | 1.74 | 2,736,175.13 | 22.99 | 9,167,676.77 |
| Creation of provision for a group of bad debts | 670,686,920.72 | 98.26 | 67,869,462.92 | 10.12 | 602,817,457.80 |
| Including: Group 1 | 343,105,434.17 | 50.27 | 343,105,434.17 | ||
| Group 2 | 98,895,738.30 | 14.49 | 98,895,738.30 | ||
| Group 4 | 228,685,748.25 | 33.50 | 67,869,462.92 | 29.68 | 160,816,285.33 |
| Total | 682,590,772.62 | 100.00 | 70,605,638.05 | 10.34 | 611,985,134.57 |
① Note: The Repayment Agreement signed between the Company, Tianmen Jianhua AgriculturalTechnology Development Co., Ltd. (“Jianhua Technology”, Tianmen Changfeng Aquatic TechnologyDevelopment Co., Ltd. (“Changfeng Technology” and Administration Committee of Tianmen IndustrialPark (“Tianmen Park Committee”) states that: (1) Tianmen Park Committee re-collects the fish pond inJianhua Technology and Chenhu Management Bureau of Changfeng Technology and releases the pond tothe Company, the Company directly deducts the debts to Chen Jianhua, Jianhua Technology andChangfeng Technology when paying the land rent to Tianmen Park Committee on a yearly basis; (2)Repayment schedule: 1 million yuan per year from 2016 to 2018, 1.5 million yuan per year from 2019 to2027, and 593,900 yuan in 2028. The Company recognizes provision for bad debts at carrying balanceless the expected present value of future cash flows.
② Group 1 is other receivable at no risk, mainly includes performance bonds and reserves withinthe settlement period. These are at no risk, so no provision for bad debts is created.
③ Group 2 is other receivables from governmental agencies. These are expected to be recovered orsettled within one year at no risk, so no provision for bad debts is created.
④ Group 4 other receivables for which provision for bad debts is created according to receivableaging analysis:
| Age | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Within 1 year | 125,887,256.36 | 6,294,362.82 | 5 |
| 1- 2 years | 13,721,171.29 | 1,372,117.13 | 10 |
| 2- 3 years | 57,748,675.27 | 28,874,337.64 | 50 |
| Over 3 years | 31,328,645.33 | 31,328,645.33 | 100 |
| Total | 228,685,748.25 | 67,869,462.92 | 29.68 |
9. Inventories
(1). Classification of inventories
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Balance | Provision for obsolete inventory/ provision for impairment on fulfillment costs | Carrying value | Balance | Provision for obsolete inventory/ provision for impairment on fulfillment costs | Carrying value | |
| Raw materials | 2,302,650,278.47 | 9,983,945.22 | 2,292,666,333.25 | 1,531,391,779.83 | 489,807.98 | 1,530,901,971.85 |
| Work-in-process | 286,891,070.52 | 286,891,070.52 | 134,560,573.85 | 134,560,573.85 | ||
| Packing materials | 31,170,648.04 | 31,170,648.04 | 24,496,956.01 | 24,496,956.01 | ||
| Goods in stock | 924,876,172.89 | 27,417,517.64 | 897,458,655.25 | 543,565,920.80 | 15,850,096.94 | 527,715,823.86 |
| Materials for repeated use | 48,917,893.98 | 48,917,893.98 | 49,567,023.61 | 49,567,023.61 | ||
| Consumable biological assets | 63,370,049.03 | 7,843,337.72 | 55,526,711.31 | 59,442,936.26 | 7,843,337.72 | 51,599,598.54 |
| Materials in transit | 9,318.11 | 9,318.11 | 176,229.12 | 176,229.12 | ||
| Materials for processing on consignment | 1,112,823,293.76 | 1,112,823,293.76 | 20,178,791.68 | 20,178,791.68 | ||
| Costs to fulfill a contract | 13,936,566.22 | 13,936,566.22 | 10,687,934.60 | 10,687,934.60 | ||
| Goods in transit | 948,652,713.69 | 5,261,636.09 | 943,391,077.60 | 426,536,846.43 | 3,344,221.57 | 423,192,624.86 |
| Total | 5,733,298,004.71 | 50,506,436.67 | 5,682,791,568.04 | 2,800,604,992.19 | 27,527,464.21 | 2,773,077,527.98 |
(2). Provision for obsolete inventory and provision for impairment on fulfillment costs"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | ||
| Provision | Others | Reversed or cleared | Others | |||
| Raw materials | 489,807.98 | 9,741,390.82 | 217,142.36 | 464,395.94 | 9,983,945.22 | |
| Work-in-process | ||||||
| Goods in stock | 15,850,096.94 | 28,330,669.06 | 16,763,248.36 | 27,417,517.64 | ||
| Materials for repeated use | ||||||
| Consumable biological assets | 7,843,337.72 | 7,843,337.72 | ||||
| Costs to fulfill a contract | ||||||
| Goods in transit | 3,344,221.57 | 5,261,636.09 | 3,344,221.57 | 5,261,636.09 | ||
| Total | 27,527,464.21 | 43,333,695.97 | 217,142.36 | 20,571,865.87 | 50,506,436.67 | |
(3). Note on closing balance of inventories containing capitalized amount of borrowing costs"□ Applicable" "√ Not applicable"
(4). Note on amount of fulfillment costs amortized in current period
"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
10. Contract assets
(1). Contract assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Balance | Impairment provision | Carrying value | Balance | Impairment provision | Carrying value | |
| Electricity price subsidies | 758,955,932.09 | 43,852,907.79 | 715,103,024.30 | 1,051,832,084.69 | 63,151,888.03 | 988,680,196.66 |
| Total | 758,955,932.09 | 43,852,907.79 | 715,103,024.30 | 1,051,832,084.69 | 63,151,888.03 | 988,680,196.66 |
Note: Electricity price subsidies presented in the contract assets are subsidies that have not been includedinto the national subsidy catalog, the subsidies that have been included into the catalog are presented inaccounts receivable.
(2). Significant changes in carrying values in the reporting period and reasons for the changes"□ Applicable" "√ Not applicable"
(3). Impairment provision for contract assets in current period
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general modelfor expected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) Impairment provision for contract assets:
| Category | Closing balance | Opening balance | ||||
| Balance | Provision for bad debts | Provision (%) | Balance | Provision for bad debts | Provision (%) | |
| Electricity price subsidies | 758,955,932.09 | 43,852,907.79 | 5.78% | 1,051,832,084.69 | 63,151,888.03 | 6.00% |
(2) Changes in impairment provision for contract assets:
| Category | Opening balance | Creation in current period | Other changes | Closing balance |
| Electricity price subsidies | 63,151,888.03 | 13,637,378.90 | -32,936,359.14 | 43,852,907.79 |
Note: Other changes include for the PV powerplants included into the national subsidy catalog in 2021,the electricity price subsidies receivable and impairment provision that are converted into accountsreceivable and provision for bad debts.
11. Assets held for sale
"□ Applicable" "√ Not applicable"
12. Non-current assets due within one year
"□ Applicable" "√ Not applicable"Significant debt investments and other debt investments at the end of the current period:
"□ Applicable" "√ Not applicable"
13. Other current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Costs to obtain contracts | ||
| Costs of returns receivable | ||
| Costs of issuing convertible bond to be deducted | 1,140,203.28 | |
| Other tax prepayments | 1,335,221.74 | 135,144.66 |
| Input tax credit/VAT prepayment | 1,192,394,602.16 | 800,167,237.49 |
| Corporate income tax prepayment | 25,773,110.65 | 9,202,582.48 |
| Prepaid distribution from PV powerplants in poverty alleviation program | 655,750.06 | |
| Interest prepayment | 411,938.30 | |
| Total | 1,220,643,137.83 | 810,572,652.99 |
14. Debt investments
(1). Debt investments
"□ Applicable" "√ Not applicable"
(2). Significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in creditrisks of financial instruments for current period"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
15. Other debt investments
(1). Other debt investments
"□ Applicable" "√ Not applicable"
(2). Other significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in creditrisks of financial instruments for current period"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
16. Long-term receivables
(1). Long-term receivables
"□ Applicable" "√ Not applicable"
(2). Provision for bad debts
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financialinstruments for current period"□ Applicable" "√ Not applicable"
(3). Long-term receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(4). Amounts of assets and liabilities generated due to transfer of long-term receivables and
continuing involvement"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
17. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Investee | Opening balance | Current change | Closing balance | Closing balance of impairment provision | |||||||
| Additional investments | Decreased investments | Investment gain or loss under equity method | Adjustment of other comprehensive income | Other changes in equity | Declared cash dividend or profit | Impairment provision | Others | ||||
| I. Joint ventures | |||||||||||
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 5,737,908.83 | 5,541,776.67 | -196,132.16 | ||||||||
| Hefei Tongwei Jiuding Feed Co., Ltd. | 5,228,897.07 | 1,851,778.58 | -1,085,451.82 | 2,291,666.67 | |||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 9,757,770.36 | -655,071.22 | 2,691,000.00 | 6,411,699.14 | |||||||
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 3,714,781.43 | 3,620,921.86 | -93,859.57 | ||||||||
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 101,225,309.42 | 3,881,464.81 | 105,106,774.23 | ||||||||
| Sub-total | 125,664,667.11 | 11,014,477.11 | 1,850,950.04 | 4,982,666.67 | 111,518,473.37 | ||||||
| II. Associates | |||||||||||
| Lijiang LONGi Silicon Materials Co., Ltd. | 182,578,455.89 | 135,879,494.06 | 46,698,961.83 | ||||||||
| Zhongwei New Energy Co., Ltd. | 54,637,625.23 | -54,637,625.23 | |||||||||
| Bohai Aquaculture Co., Ltd. | 100,055,700.00 | 1,030,906.22 | 88,513.09 | -1,571,789.65 | 99,603,329.66 | ||||||
| Haimao Seed Industry Technology Co., Ltd. | 150,000,000.00 | -13,461,047.10 | 170,573.67 | -2,307.33 | 136,707,219.24 | ||||||
| Anhui Tech-bank Feed Technology Co., Ltd. | 60,000,000.00 | -643,982.62 | 59,356,017.38 | ||||||||
| Anhui Tech-bank Biotechnology Co., Ltd. | 23,000,000.00 | 402,678.61 | 23,402,678.61 | ||||||||
| Suzhou Taiyangjing New Energy Co., Ltd. | 14,799,633.99 | 13,750,000.00 | -3,339,026.67 | 25,210,607.32 | |||||||
| Sub-total | 352,071,415.11 | 246,750,000.00 | 135,879,494.06 | -16,010,471.56 | 259,086.76 | -1,574,096.98 | 46,698,961.83 | -54,637,625.23 | 344,279,852.21 | ||
| Total | 477,736,082.22 | 246,750,000.00 | 146,893,971.17 | -14,159,521.52 | 259,086.76 | -1,574,096.98 | 51,681,628.50 | - | -54,637,625.23 | 455,798,325.58 | |
Other notesNote: Other changes (-54,637,625.23 yuan) are from Zhongwei New Energy (Chengdu) Co., Ltd., an associate generated by a business combination under differentcontrol in current period. Refer to “business combination under different control” for details.
18. Other equity investments
(1). Other equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Chengdu Tongwei Property Co., Ltd. | 153,551,598.71 | 153,445,100.85 |
(2). Non-trading equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Dividend income recognized in current period | Cumulative gain | Cumulative loss | Amount converted from other comprehensive income to retained earnings | Reasons for designation as measurement at fair value through other comprehensive income | Reasons for conversion from other comprehensive income to retained earnings |
| Chengdu Tongwei Property Co., Ltd. | 6,863,798.71 | Management mode |
Other notes:
"□ Applicable" "√ Not applicable"
19. Other non-current financial assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency ：CNY
| Item | Closing balance | Opening balance |
| Sichuan Electricity Trading Center Co., Ltd. | 3,146,248.25 | 1,258,097.00 |
Other notes:
"□ Applicable" "√ Not applicable"
20. Investment properties
Measurement models for investment properties
(1). Investment properties measured at cost
Unit: Yuan Currency: CNY
| Item | Premises and buildings | Land use rights | Construction in progress | Total |
| I. Original carrying value | ||||
| 1. Opening balance | 147,370,436.43 | 21,630,000.00 | 169,000,436.43 | |
| 2. Current increase | 37,869,094.45 | 37,869,094.45 | ||
| (1) Purchased | ||||
| (2) Conversion from stock/fixed assets/construction in progress | 37,869,094.45 | 37,869,094.45 | ||
| (3) Increase from business combination | ||||
| 3. Current decrease | 23,159,098.17 | 23,159,098.17 | ||
| (1) Disposal | ||||
| (2) Others | 23,159,098.17 | 23,159,098.17 | ||
| 4. Closing balance | 162,080,432.71 | 21,630,000.00 | 183,710,432.71 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 28,005,445.18 | 8,635,036.25 | 36,640,481.43 | |
| 2. Current change | 8,620,908.19 | 666,408.39 | 9,287,316.58 | |
| (1) Deprecation or amortization | 4,147,041.79 | 666,408.39 | 4,813,450.18 | |
| (2) Conversion from fixed assets | 4,473,866.40 | 4,473,866.40 | ||
| 3. Decrease in current period | 4,252,895.52 | 4,252,895.52 | ||
| (1) Disposal | ||||
| (2) Others | 4,252,895.52 | 4,252,895.52 | ||
| 4. Closing balance | 32,373,457.85 | 9,301,444.64 | 41,674,902.49 | |
| II. Impairment provision | ||||
| 1. Opening balance | 29,366,906.85 | 29,366,906.85 | ||
| 2. Current change | 9,132,441.67 | 9,132,441.67 | ||
| (1) Provision | 9,132,441.67 | 9,132,441.67 | ||
| 3. Current decrease | 8,806,783.32 | 8,806,783.32 | ||
| (1) Disposal | ||||
| (2) Others | 8,806,783.32 | 8,806,783.32 | ||
| 4. Closing balance | 29,692,565.20 | 29,692,565.20 | ||
| IV. Carrying value | ||||
| 1. Closing carrying value | 100,014,409.66 | 12,328,555.36 | 112,342,965.02 | |
| 2. Opening carrying value | 89,998,084.40 | 12,994,963.75 | 102,993,048.15 | |
(2). Investment properties for which title certificates are not obtained
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
21. Fixed assets
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Fixed assets | 37,294,101,648.99 | 28,239,517,321.46 |
| Disposal of fixed assets | 5,069,389.79 | 11,045,892.65 |
| Total | 37,299,171,038.78 | 28,250,563,214.11 |
Other notes:
"□ Applicable" "√ Not applicable"Fixed assets
(1). Fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Premises and buildings | Machinery equipment | Transportation vehicles | PV generation equipment | Office equipment | Total |
| I. Original carrying value: | ||||||
| 1. Opening balance | 9,059,000,572.56 | 18,405,559,917.97 | 265,966,953.40 | 9,360,403,748.99 | 297,360,010.97 | 37,388,291,203.89 |
| 2. Current increase | 2,309,838,457.05 | 10,178,982,420.94 | 81,515,933.97 | 1,475,601,283.96 | 70,671,416.03 | 14,116,609,511.95 |
| (1) Purchase | 220,331,015.09 | 72,505,388.15 | 957,213.38 | 42,650,626.95 | 336,444,243.57 | |
| (2) Conversion from construction in progress | 1,910,455,296.93 | 8,774,727,120.32 | 3,440,487.37 | 1,624,904,843.21 | 15,997,617.26 | 12,329,525,365.09 |
| (3) Increase from business combination | 270,356,382.95 | 656,930,883.96 | 5,734,183.04 | - | 14,745,199.94 | 947,766,649.89 |
| (4) Conversion from investment properties | 23,159,098.17 | 23,159,098.17 | ||||
| (5) Conversion from right-of-use assets upon lease term expires | 479,183,544.80 | 479,183,544.80 | ||||
| (6) Adjustment from final accounts of construction completion | 112,382,456.58 | 53,400,832.01 | 89,734.68 | -150,260,772.63 | -2,358,388.55 | 13,253,862.09 |
| (7) Exchange rate change | -6,514,777.58 | -5,590,975.24 | -253,859.27 | - | -363,639.57 | -12,723,251.66 |
| 3. Current decrease | 95,317,709.74 | 3,952,236,726.58 | 28,866,574.80 | 4,273,347.05 | 12,808,478.96 | 4,093,502,837.13 |
| (1) Disposal or scrap | 56,221,640.21 | 2,346,167,054.18 | 28,866,574.80 | 4,273,347.05 | 12,808,478.96 | 2,448,337,095.20 |
| (2) Conversion to construction in progress | 1,226,975.08 | 1,606,069,672.40 | 1,607,296,647.48 | |||
| (3) Conversion to investment properties | 37,869,094.45 | 37,869,094.45 | ||||
| 4. Closing balance | 11,273,521,319.87 | 24,632,305,612.33 | 318,616,312.57 | 10,831,731,685.90 | 355,222,948.04 | 47,411,397,878.71 |
| II. Accumulated depreciation | ||||||
| 1. Opening balance | 1,986,367,966.18 | 5,204,014,189.62 | 135,636,278.87 | 762,589,109.90 | 175,449,114.37 | 8,264,056,658.94 |
| 2. Current increase | 503,801,243.41 | 2,061,908,206.37 | 46,824,115.98 | 375,250,359.13 | 32,115,989.61 | 3,019,899,914.50 |
| (1) Provision | 398,453,368.17 | 1,746,697,739.68 | 43,481,507.91 | 394,207,082.93 | 21,985,755.61 | 2,604,825,454.30 |
| (2) Conversion from investment properties | 4,252,895.52 | 4,252,895.52 | ||||
| (3) Conversion from right-of-use assets upon lease term expire | 144,535,105.61 | 144,535,105.61 | ||||
| (4) Increase from business combination | 85,994,593.73 | 169,809,791.89 | 3,513,298.15 | - | 11,916,291.03 | 271,233,974.80 |
| (5) Adjustment from final accounts of construction completion | 16,619,363.52 | 3,409,810.99 | 0 | -18,956,723.80 | -1,540,203.08 | -467,752.37 |
| (6) Exchange rate change | -1,518,977.53 | -2,544,241.80 | -170,690.08 | - | -245,853.95 | -4,479,763.36 |
| 3. Current decrease | 51,822,811.73 | 1,551,159,728.18 | 19,692,180.44 | 401,397.73 | 10,073,708.30 | 1,633,149,826.38 |
| (1) Disposal or scrap | 46,337,906.57 | 1,202,488,612.16 | 19,692,180.44 | 401,397.73 | 10,073,708.30 | 1,278,993,805.20 |
| (2) Conversion to construction in progress | 1,011,038.76 | 348,671,116.02 | 349,682,154.78 | |||
| (3) Conversion to investment properties | 4,473,866.40 | 4,473,866.40 | ||||
| 4. Closing balance | 2,438,346,397.86 | 5,714,762,667.81 | 162,768,214.41 | 1,137,438,071.30 | 197,491,395.68 | 9,650,806,747.06 |
| III. Impairment provision | ||||||
| 1. Opening balance | 153,367,068.57 | 508,932,761.59 | 10,219.13 | 221,877,025.60 | 530,148.60 | 884,717,223.49 |
| 2. Current increase | 9,280,140.44 | 43,375,936.90 | 52,656,077.34 | |||
| (1) Provision | 43,375,936.90 | 43,375,936.90 | ||||
| (2) Conversion from investment properties | 8,806,783.32 | 8,806,783.32 | ||||
| (3) Increase from business combination | 473,357.12 | 473,357.12 | ||||
| 3. Current decrease | 9,152,512.23 | 461,725,662.53 | 5,643.41 | 470,883,818.17 | ||
| (1) Disposal or scrap | 20,070.56 | 461,725,662.53 | 5,643.41 | 461,751,376.50 | ||
| (2) Conversion to investment properties | 9,132,441.67 | 9,132,441.67 | ||||
| 4. Closing balance | 153,494,696.78 | 47,207,099.06 | 10,219.13 | 265,252,962.50 | 524,505.19 | 466,489,482.66 |
| IV. Carrying value | ||||||
| 1. Closing carrying value | 8,681,680,225.23 | 18,870,335,845.46 | 155,837,879.03 | 9,429,040,652.10 | 157,207,047.17 | 37,294,101,648.99 |
| 2. Opening carrying value | 6,919,265,537.81 | 12,692,612,966.76 | 130,320,455.40 | 8,375,937,613.49 | 121,380,748.00 | 28,239,517,321.46 |
① Adjustment from final accounts of construction completions mainly refers to the adjustment of fixed assets pre-converted to fixed assets from final accountsof PV power plant completions.
② The carrying value of fixed assets is increased by 676,059,317.97 yuan due to business combination is from the business combination under different control:
purchase of Ningbo Tech-bank Feed Technology Co., Ltd., Qingdao Qihao Biotechnology Co., Ltd., Ningbo Tech-bank Biotechnology Co., Ltd., Yancheng Tech-bank Feed Technology Co., Ltd., Nanning Aigefei Feed Co., Ltd., Bengbu Tech-bank Feed Technology Co., Ltd., Hubei Tech-bank Feed Co., Ltd., Dongying Tech-bank Feed Technology Co., Ltd., Vietnam Tech-bank Feed Co., Ltd. (Collectively “Tech-bank Feed Companies”) and Zhongwei New Energy (Chengdu) Co., Ltd.Refer to the “business combination under different control” for details.
③ The Company has engaged a professional firm to work together with the Company for conducting a comprehensive impairment test on PV powerplants. Asa result, the impairment provision for Phase I 20.00 MW Aquaculture-Photovoltaic Integration power plant in Helan, Ningxia and the Phase I 10.00 MW Aquaculture-Photovoltaic Integration power plant in Chilechuan, Inner Mongolia was created for a total of 43,375,900 yuan.
(2). Fixed assets in temporary idleness
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Original carrying value | Accumulated depreciation | Impairment provision | Carrying value | Notes |
| Premises and buildings | 9,264,786.19 | 6,221,979.23 | 3,042,806.96 | ||
| Machinery equipment | 1,327,808.18 | 1,063,621.01 | 264,187.17 | ||
| Total | 10,592,594.37 | 7,285,600.24 | 3,306,994.13 |
(3). Fixed assets acquired by financial lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Original carrying value | Accumulated depreciation | Impairment provision | Carrying value |
| Premises and buildings | 255,884,736.73 | 40,511,035.16 | 215,373,701.57 | |
| Machinery equipment | 2,110,406.30 | 820,262.01 | 1,290,144.29 | |
| PV generation equipment | 4,937,006,937.98 | 676,441,135.67 | 251,253,540.09 | 4,009,312,262.22 |
| Total | 5,195,002,081.01 | 717,772,432.84 | 251,253,540.09 | 4,225,976,108.08 |
Note: Fixed assets acquired from leaseback are listed above. No fixed asset acquired directly fromfinancial lease.
(4). Fixed assets leased out by operating lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing carrying value |
| Premises and buildings | 158,348,762.62 |
| Machinery equipment | 28,378,577.95 |
| Transportation equipment | 185,042.69 |
| Office equipment | 559,120.72 |
| Total | 187,471,503.98 |
(5). Fixed assets for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Carrying value | Reason for not obtaining title certificate |
| Premises of Tongwei Solar (Meishan) Co., Ltd. | 888,900,650.23 | In progress |
| Premises of Tongwei Solar (Chengdu) Co., Ltd. | 820,062,616.52 | In progress |
| Premises of Tongwei Solar (Jintang) Co., Ltd. | 551,775,119.30 | In progress |
| Premises of Tongwei Solar (Hefei) Co., Ltd. | 264,009,697.23 | In progress |
| Premises of Sichuan Yongxiang New Energy Co., Ltd. | 192,493,814.66 | In progress |
| Premises of Fuzhou Tongwei William Feed Co., Ltd. | 43,276,777.58 | In progress |
| Premises of Nanchang Tongwei Biotechnology Co., Ltd. | 32,443,744.62 | In progress |
| Premises of Tongwei (Hainan) Aquatic Products Co., Ltd. | 18,837,904.36 | In progress |
| Premises of Huaian Tongwei Feed Co., Ltd. | 18,538,930.03 | In progress |
| Premises of Shenyang Branch Tongwei Co., Ltd. | 9,843,109.01 | In progress |
| Premises of Qianxi Tongwei Feed Co., Ltd. | 5,697,647.22 | In progress |
| Premises of Xiamen Tongwei Feed Co., Ltd. | 2,944,300.04 | In progress |
| Premises of Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 2,873,504.83 | In progress |
| Premises of Ningbo Tech-bank Feed Technology Co., Ltd. | 568,024.62 | In progress |
| Total | 2,852,265,840.25 |
Other notes:
"□ Applicable" "√ Not applicable"
Disposal of fixed assets"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Disposal of fixed assets | 5,069,389.79 | 11,045,892.65 |
| Total | 5,069,389.79 | 11,045,892.65 |
Other notes:
The closing balance under disposal of fixed assets only includes the net salvage value of scraped fixedassets.
22. Construction in progress
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Construction in progress | 10,275,906,661.11 | 2,933,099,260.27 |
| Construction materials | 360,494,223.95 | 64,802,360.32 |
| Total | 10,636,400,885.06 | 2,997,901,620.59 |
Other notes:
"□ Applicable" "√ Not applicable"
Construction in progress
(1). Construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Balance | Impairment provision | Carrying value | Balance | Impairment provision | Carrying value | |
| Tongwei New Energy projects: | ||||||
| 200 MW Aquaculture-Photovoltaic Integration project in Dongying husbandry area | 9,509,808.86 | 9,509,808.86 | 585,781,725.88 | 585,781,725.88 | ||
| 100 MW Aquaculture-Photovoltaic Integration project in Zhaoyuan County | 37,919,892.66 | 37,919,892.66 | 13,911,543.22 | 13,911,543.22 | ||
| 200 MWP Aquaculture-Photovoltaic Integration project in Huaiyuan County, Bengbu | 239,338,460.65 | 239,338,460.65 | ||||
| 120 MW Aquaculture-Photovoltaic Integration project in Binyang County | 182,665,801.80 | 182,665,801.80 | ||||
| 100 MW Aquaculture-Photovoltaic Integration project in Taishan modern fishery industry park | 281,044,577.27 | 281,044,577.27 | 3,182,326.38 | 3,182,326.38 | ||
| Phase I 100 MW Aquaculture-Photovoltaic Integration project in Suihua | 118,756,051.11 | 118,756,051.11 | 5,017,462.58 | 5,017,462.58 | ||
| 120 MWP Aquaculture-Photovoltaic Integration project in Lianjiang | 276,207,535.03 | 276,207,535.03 | 3,266,860.87 | 3,266,860.87 | ||
| 250 MW Aquaculture-Photovoltaic Integration project in Chenhu for Tongwei Tianmen | 281,453,322.92 | 281,453,322.92 | ||||
| Other New Energy projects | 235,788,573.16 | 235,788,573.16 | 206,569,274.97 | 206,569,274.97 | ||
| Yongxiang projects: | ||||||
| Yongxiang Technological renovation for polysilicon production | 29,930,785.31 | 29,930,785.31 | 240,839,251.28 | 240,839,251.28 | ||
| Phase I 50,000-ton high-purity polysilicon project in Yunnan | 3,409,911,750.01 | 3,409,911,750.01 | 18,922,538.54 | 18,922,538.54 | ||
| Phase II 50,000-ton high-purity polysilicon project in Baotou | 1,192,138,830.18 | 1,192,138,830.18 | 577,974.76 | 577,974.76 | ||
| Phase II 50,000-ton high-purity polysilicon project in Leshan | 21,508,913.81 | 21,508,913.81 | 41,830,743.74 | 41,830,743.74 | ||
| 15 GW monocrystalline rod pulling and cutting project | 755,030,527.90 | 755,030,527.90 | 71,887,730.93 | 71,887,730.93 | ||
| Other Yongxiang projects | 68,606,172.86 | 68,606,172.86 | ||||
| Tongwei Solar projects: | ||||||
| Phase II 7.5 GW high-efficiency solar cell project in Meishan | 809,599.56 | 809,599.56 | 523,132,682.15 | 523,132,682.15 | ||
| Phase I 7.5 GW high-efficiency solar cell project in Meishan | 117,509,014.15 | 117,509,014.15 | 27,832,971.13 | 27,832,971.13 | ||
| Phase I 7.5 GW high-efficiency solar cell project in Jintang | 1,964,042.72 | 1,964,042.72 | 484,681,023.28 | 484,681,023.28 | ||
| Anhui efficiency enhancing project | 13,247,840.01 | 13,247,840.01 | ||||
| Tonghe 15 GW high-efficiency solar cell project | 2,281,757,633.72 | 2,281,757,633.72 | ||||
| Tonghe 15 GW water slicing project | 560,024,727.84 | 560,024,727.84 | ||||
| Other Solar projects | 140,933,740.38 | 5,282,262.90 | 135,651,477.48 | 191,006,063.88 | 5,282,262.90 | 185,723,800.98 |
| Agriculture and Animal Husbandry projects: | ||||||
| Nanning Feed relocation project | 1,268,630.25 | 1,268,630.25 | 74,459,717.42 | 74,459,717.42 | ||
| Fuzhou Company phase II project | 89,227,151.64 | 89,227,151.64 | 55,224,431.48 | 55,224,431.48 | ||
| Other Agriculture and Animal Husbandry projects | 187,221,840.87 | 187,221,840.87 | 137,670,900.02 | 137,670,900.02 | ||
| Total | 10,281,188,924.01 | 5,282,262.90 | 10,275,906,661.11 | 2,938,381,523.17 | 5,282,262.90 | 2,933,099,260.27 |
(2). Changes in significant construction in progress in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item name | Budget | Opening balance | Current increase | Amount converted to fixed assets in current period | Other current decreases | Closing balance | Cumulative cost to budget (%) | Construction progress | Cumulative interest capitalized | Including: interest capitalized in current period | Interest capitalization rate in current period (%) | Sources of funds |
| Tongwei New Energy projects: | ||||||||||||
| 200 MW Aquaculture-Photovoltaic Integration project in Dongying husbandry area | 764,232,500.00 | 585,781,725.88 | 51,278,531.03 | 627,550,448.05 | 9,509,808.86 | 95.08 | 97 | 285,065.37 | Self-funding | |||
| 100 MW Aquaculture-Photovoltaic Integration project in Zhaoyuan County | 408,574,900.00 | 13,911,543.22 | 280,668,399.31 | 256,660,049.87 | - | 37,919,892.66 | 87.02 | 90 | 2,762,619.89 | 543,618.33 | 4.76 | Self-funding |
| 200 MWP Aquaculture-Photovoltaic Integration project in Huaiyuan County, Bengbu | 674,250,000.00 | 239,338,460.65 | 276,497,442.33 | 515,835,902.98 | 98.41 | 100 | 327,780.80 | 289,717.40 | 4.76 | Self-funding | ||
| 120 MW Aquaculture-Photovoltaic Integration project in Binyang County | 471,338,500.00 | 182,665,801.80 | 182,665,801.80 | 85.05 | 80 | 1,497,728.19 | 1,497,728.19 | 3.97 | Self-funding | |||
| 100 MW Aquaculture-Photovoltaic Integration project in Taishan modern fishery industry park | 381,448,100.00 | 3,182,326.38 | 277,862,250.89 | 281,044,577.27 | 83.26 | 79 | 5,457,592.52 | 5,132,256.53 | 4.86 | Self-funding | ||
| Phase I 100 MW Aquaculture-Photovoltaic Integration project in Suihua | 439,790,100.00 | 5,017,462.58 | 113,738,588.53 | 118,756,051.11 | 95.36 | 90 | 8,966,587.65 | 8,965,129.93 | 4.79 | Self-funding | ||
| 120 MWP Aquaculture-Photovoltaic Integration project in Lianjiang | 468,371,900.00 | 3,266,860.87 | 330,253,358.99 | 57,312,684.83 | 276,207,535.03 | 80.47 | 80 | 3,592,247.85 | 3,569,779.30 | 4.85 | Self-funding | |
| 250 MW Aquaculture-Photovoltaic Integration project in Chenhu for Tongwei Tianmen | 458,065,500.00 | 281,453,322.92 | 281,453,322.92 | 80.90 | 80 | 2,203,532.80 | 2,203,532.80 | 4.88 | Self-funding | |||
| Other New Energy projects | 206,569,274.97 | 369,219,755.35 | 230,673,646.77 | 109,326,810.39 | 235,788,573.16 | 62,647,014.76 | 11,217,269.95 | |||||
| Yongxiang projects: | ||||||||||||
| Yongxiang technological renovation for polysilicon production | 487,870,900.00 | 240,839,251.28 | 44,907,798.37 | 255,816,264.34 | 29,930,785.31 | 58.57 | 60 | Self-funding |
| Phase I 50,000-ton high-purity polysilicon project in Yunnan | 3,963,900,000.00 | 18,922,538.54 | 3,390,989,211.47 | 3,409,911,750.01 | 96.20 | 95 | 6,859,067.07 | 6,859,067.07 | 4.69 | Self-funding | ||
| Phase II 50,000-ton high-purity polysilicon project in Baotou | 4,016,290,000.00 | 577,974.76 | 1,300,963,730.01 | 74,247.79 | 109,328,626.80 | 1,192,138,830.18 | 32.41 | 30 | 610,813.42 | 610,813.42 | 4.30 | Raising fund and self-funding |
| Phase II 50,000-ton high-purity polysilicon project in Leshan | 3,893,700,000.00 | 41,830,743.74 | 3,692,830,950.14 | 3,713,152,780.07 | 21,508,913.81 | 95.74 | 94 | Raising fund and self-funding | ||||
| 15 GW monocrystalline rod pulling and cutting project | 4,103,929,600.00 | 780,689,730.43 | 25,659,202.53 | 755,030,527.90 | 28,641,748.40 | |||||||
| Other Yongxiang projects | 71,887,730.93 | 202,834,414.31 | 205,315,371.26 | 800,601.12 | 68,606,172.86 | |||||||
| Tongwei Solar projects: | ||||||||||||
| Phase II 7.5 GW high-efficiency solar cell project in Meishan | 2,200,000,000.00 | 523,132,682.15 | 1,116,785,987.58 | 1,637,597,920.60 | 1,511,149.57 | 809,599.56 | 72.56 | 99 | Raising fund | |||
| Phase I 7.5 GW high-efficiency solar cell project in Meishan | 2,500,000,000.00 | 27,832,971.13 | 165,148,509.50 | 75,472,466.48 | 117,509,014.15 | 94.00 | 99 | Self-funding | ||||
| Phase I 7.5 GW high-efficiency solar cell project in Jintang | 2,500,359,400.00 | 484,681,023.28 | 2,016,990,500.95 | 2,450,462,248.79 | 49,245,232.72 | 1,964,042.72 | 98.63 | 90 | 5,320,589.44 | 5,320,589.44 | 5.20 | Raising fund and self-funding |
| Anhui efficiency enhancing project | 364,442,800.00 | 13,247,840.01 | 510,641,833.66 | 523,889,673.67 | 95.79 | 100 | Self-funding | |||||
| Tonghe 15 GW high-efficiency solar cell project | 4,500,000,000.00 | 2,281,757,633.72 | 2,281,757,633.72 | 51.17 | 50 | Self-funding | ||||||
| Tonghe Solar 15 GW water slicing project | 1,500,000,000.00 | 560,024,727.84 | 560,024,727.84 | 37.93 | 40 | Self-funding | ||||||
| Other Solar projects | 191,006,063.88 | 1,443,312,778.98 | 1,409,791,266.09 | 83,593,836.39 | 140,933,740.38 | |||||||
| Agriculture and Animal Husbandry projects: | ||||||||||||
| Nanning Feed relocation project | 115,631,700.00 | 74,459,717.42 | 20,566,312.00 | 93,757,399.17 | 1,268,630.25 | 82.18 | 90 | 667,787.84 | Self-funding | |||
| Fuzhou Company phase II project | 95,000,000.00 | 55,224,431.48 | 34,002,720.16 | 89,227,151.64 | 93.92 | 95 | 5,817,660.10 | 2,858,931.51 | 4.35 | Self-funding | ||
| Other Agriculture and Animal Husbandry projects | 137,670,900.02 | 336,954,732.13 | 276,162,994.33 | 11,240,796.95 | 187,221,840.87 | 4,852,515.68 | 212,848.70 | |||||
| Total | 34,307,195,900.00 | 2,938,381,523.17 | 20,063,039,022.40 | 12,329,525,365.09 | 390,706,256.47 | 10,281,188,924.01 | / | / | 140,510,351.78 | 49,281,282.57 | / | / |
Note 1: Budget means the investment budget for the project; accumulated cost to budget means the ratio of accumulated investment to the project to budget, andaccumulative cost includes the amount of fixed assets that has been carried forward in the previous year.Note 2: Phase I 7.5 GW high-efficiency solar cell project in Jintang has changed from 7.5 GW/year PERC cells to 5.6 GW/year PERC cells (source of funds: raisingfund) and 1 GW/year HJT cells (source of funds: self-funding). The total budget is not adjusted. The total investment into projects for which funds are raised wasconsidered in the 18th meeting of the 7th board of directors and the 17th meeting of the 7th board of supervisors on April 13, 2021 and approved at the 2020 annualshareholders meeting on May 8, 2021.Note 3: Other decrease of 390,706,256.47 yuan includes: converted management expense of 344,699.23 yuan, converted intangible assets of 287,632,781.98 yuan,the Company's write-off of current profit and loss of 181,132.08 yuan. The remaining decrease is from that Jianping Tongwei New Energy Co., Ltd decreased itsconstruction in progress by 102,547,643.18 yuan.Note 4: 100 MW Aquaculture-Photovoltaic Integration project in Zhaoyuan County provided 70.24 MW to the grid in 2021, the corresponding construction in progresswas pre-converted into fixed assets. The closing balance means the remaining construction in progress.Note 5: For the 250 MW Aquaculture-Photovoltaic Integration project in Chenhu for Tongwei Tianmen, the registration capacity is 250 MW and the total budget is 1billion yuan. The project is constructed in different phases. The construction size for current period is 100 MW with a budget of 458,065,500 yuan; the cost to budgetis 80.90% and the construction progress is 80.00%.Note 6: The budget for technological renovation project is adjusted each year according to actual circumstances.Note 7: The budget means the actual budget net of working capital.Note 8: The closing balance of 200 MW Aquaculture-Photovoltaic Integration project in Dongying husbandry area was affected by the pandemic because therenovation for some fish ponds has not been completed.Note 9: The difference between actual cost to budget for the phase II 7.5 GW high-efficiency solar cell project in Meishan is mainly from: ① the actual purchaseprice of equipment was lower than the budget by about 151 million yuan; ② some supporting facilities are shared by Phase I and Phase II projects, resulting in areduction of about 206 million yuan.
(3). Impairment provision for construction in progress in current period
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
Construction materials
(4). Construction materials
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Balance | Impairment provision | Carrying value | Balance | Impairment provision | Carrying value | |
| Special equipment | 155,963,464.57 | 155,963,464.57 | 50,203,546.20 | 50,203,546.20 | ||
| Special materials | 204,530,759.38 | 204,530,759.38 | 14,598,814.12 | 14,598,814.12 | ||
| Total | 360,494,223.95 | 360,494,223.95 | 64,802,360.32 | 64,802,360.32 |
23. Biological assets
(1). Productive biological assets measured at cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Planting industry | Husbandry | Forestry | Aquaculture | Total | ||||
| Category | Category | Category | Category | Category | Category | Male fish | Male pawn | ||
| I. Original carrying value | |||||||||
| 1. Opening balance | 555,792.00 | 555,792.00 | |||||||
| 2. Current increase | 13,985,535.85 | 13,985,535.85 | |||||||
| (1) Purchased | 13,985,535.85 | 13,985,535.85 | |||||||
| (2) Self-cultivated | |||||||||
| 3. Current decrease | 410,332.00 | 410,332.00 | |||||||
| (1) Disposal | 410,332.00 | 410,332.00 | |||||||
| (2) Others | |||||||||
| 4. Closing balance | 145,460.00 | 13,985,535.85 | 14,130,995.85 | ||||||
| II. Accumulated depreciation | |||||||||
| 1. Opening balance | 464,394.65 | 464,394.65 | |||||||
| 2. Current increase | 62,087.30 | 10,355,136.90 | 10,417,224.20 | ||||||
| (1) Provision | 62,087.30 | 10,355,136.90 | 10,417,224.20 | ||||||
| 3. Current decrease | 388,294.91 | 388,294.91 | |||||||
| (1) Disposal | 388,294.91 | 388,294.91 | |||||||
| (2) Others | |||||||||
| 4. Closing balance | 138,187.04 | 10,355,136.90 | 10,493,323.94 | ||||||
| III. Impairment provision | |||||||||
| 1. Opening balance | |||||||||
| 2. Current increase | |||||||||
| (1) Provision | |||||||||
| 3. Current decrease | |||||||||
| (1) Disposal | |||||||||
| (2) Others | |||||||||
| 4. Closing balance | |||||||||
| IV. Carrying value | |||||||||
| 1. Closing carrying value | 7,272.96 | 3,630,398.95 | 3,637,671.91 | ||||||
| 2. Opening carrying value | 91,397.35 | 91,397.35 |
(2). Productive biological assets measured at fair value
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
24. Oil and gas assets
"□ Applicable" "√ Not applicable"
25. Right-of-use assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Premises and buildings | Machinery equipment | Land and water surface | Total |
| I. Original carrying value | ||||
| 1. Opening balance | 189,924,672.75 | 1,906,742,875.52 | 3,186,983,854.04 | 5,283,651,402.31 |
| 2. Current increase | 41,830,630.29 | 739,226,844.43 | 174,413,702.50 | 955,471,177.22 |
| (1) Leased-in in current period | 37,237,996.61 | 739,226,844.43 | 169,706,860.60 | 946,171,701.64 |
| (2) Adjustment from modifications of terms of lease contracts | -244,526.56 | 4,706,841.90 | 4,462,315.34 | |
| (3) Increase from business combination | 4,837,160.24 | 4,837,160.24 | ||
| 3. Current decrease | 479,183,544.80 | 83,350,331.60 | 562,533,876.40 | |
| (1) Conversion to fixed assets | 479,183,544.80 | 479,183,544.80 | ||
| (2) Scrap or disposal | 83,350,331.60 | 83,350,331.60 | ||
| 4. Closing balance | 231,755,303.04 | 2,166,786,175.15 | 3,278,047,224.94 | 5,676,588,703.13 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 20,961,609.90 | 327,703,464.62 | 684,919,525.23 | 1,033,584,599.75 |
| 2. Current increase | 27,082,245.88 | 133,937,610.65 | 275,832,246.60 | 436,852,103.13 |
| (1) Provision | 26,800,160.96 | 133,937,610.65 | 275,832,246.60 | 436,570,018.21 |
| (2) Increase from business combination | 282,084.92 | 282,084.92 | ||
| 3. Current decrease | 982,967.71 | 144,535,105.61 | 24,572,189.73 | 170,090,263.05 |
| (1) Disposal | 982,967.71 | 24,572,189.73 | 25,555,157.44 | |
| (2) Conversion to fixed assets | 144,535,105.61 | 144,535,105.61 | ||
| 4. Closing balance | 47,060,888.07 | 317,105,969.66 | 936,179,582.10 | 1,300,346,439.83 |
| III. Impairment provision | ||||
| 1. Opening balance | ||||
| 2. Current increase | ||||
| (1) Provision | ||||
| 3. Current decrease | ||||
| (1) Disposal | ||||
| 4. Closing balance | ||||
| IV. Carrying value | ||||
| 1. Closing carrying value | 184,694,414.97 | 1,849,680,205.49 | 2,341,867,642.84 | 4,376,242,263.30 |
| 2. Opening carrying value | 168,963,062.85 | 1,579,039,410.90 | 2,502,064,328.81 | 4,250,066,802.56 |
Other notes:
Conversion to fixed assets means the Company has obtained the ownership of machinery equipment acquired under financial lease upon the lease expires or throughits early exercising the purchase option.
26. Intangible assets
(1). Intangible assets
"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Land use rights | Patents | Non-patented technologies | Software | Trademarks | Right to use transmission lines | Franchises | Total |
| I. Original carrying value | ||||||||
| 1. Opening 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 |
| 2. Current increase | 439,965,039.21 | 139,830,055.58 | 113,187,131.76 | 47,467,269.30 | 96,749,227.50 | 7,795,872.99 | 18,981,500.00 | 863,976,096.34 |
| (1) Purchase | 7,967,023.17 | 3,903,271.44 | 18,260,600.01 | 18,949,000.00 | 49,079,894.62 | |||
| (2) Internal research and development | ||||||||
| (3) Increase from business combination | 163,188,756.39 | 137,673,915.90 | 111,440,000.00 | 5,188,173.26 | 96,749,227.50 | 32,500.00 | 514,272,573.05 | |
| (3) Conversion from construction in progress | 263,614,285.95 | 24,018,496.03 | 287,632,781.98 | |||||
| (4) Adjustment from final accounts of construction completion | 7,996,896.00 | 7,795,872.99 | 15,792,768.99 | |||||
| (5) Other increase | 2,156,139.68 | -2,156,139.68 | ||||||
| (5) Exchange rate change | -2,801,922.30 | -2,801,922.30 | ||||||
| 3. Current decrease | 6,998,839.19 | 9,090.00 | 4,730,245.47 | 112,300.00 | 11,850,474.66 | |||
| (1) Disposal | 6,998,839.19 | 9,090.00 | 4,730,245.47 | 112,300.00 | 11,850,474.66 | |||
| 4. Closing balance | 2,126,519,847.06 | 149,599,396.20 | 193,842,742.73 | 163,929,885.07 | 97,251,107.50 | 56,069,470.78 | 29,981,500.00 | 2,817,193,949.34 |
| II. Accumulated amortization | ||||||||
| 1. Opening 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 |
| 2. Current increase | 53,984,703.46 | 7,617,825.04 | 11,491,327.29 | 21,763,321.88 | 10,353,141.95 | 3,217,806.71 | 643,793.53 | 109,071,919.86 |
| (1) Provision | 38,781,570.49 | 5,574,485.25 | 13,118,000.41 | 20,795,589.38 | 10,353,141.95 | 2,750,054.34 | 641,085.20 | 92,013,927.02 |
| (2) Increase from business combination | 15,347,380.71 | 416,666.67 | 967,732.50 | 2,708.33 | 16,734,488.21 | |||
| (3) Adjustment from final accounts of construction completion | 467,752.37 | - | 467,752.37 | |||||
| (4) Other increase | 1,626,673.12 | -1,626,673.12 | ||||||
| (5) Exchange rate change | -144,247.74 | -144,247.74 | ||||||
| 3. Current decrease | 2,914,914.58 | 9,090.00 | 1,063,955.01 | 94,440.00 | 4,082,399.59 | |||
| (1) Disposal | 2,914,914.58 | 9,090.00 | 1,063,955.01 | 94,440.00 | 4,082,399.59 | |||
| 4. Closing balance | 260,243,423.29 | 15,022,413.42 | 36,814,491.52 | 73,638,407.67 | 10,842,586.23 | 8,321,005.00 | 1,469,732.05 | 406,352,059.18 |
| III. Impairment provision | ||||||||
| 1. Opening balance | ||||||||
| 2. Current increase | ||||||||
| (1) Provision | ||||||||
| 3. Current decrease | ||||||||
| (1) Disposal | ||||||||
| 4. Closing balance | ||||||||
| IV. Carrying value | ||||||||
| 1. Closing carrying value | 1,866,276,423.77 | 134,576,982.78 | 157,028,251.21 | 90,291,477.40 | 86,408,521.27 | 47,748,465.78 | 28,511,767.95 | 2,410,841,890.16 |
| 2. Opening carrying value | 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 |
Intangible assets generated from internal research and development accounts for 0% of the closing balance of intangible assets.
(2). Land use rights for which title certificates are not obtained
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Carrying value | Reason for not obtaining title certificate |
| Land used by Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 108,964,198.04 | In progress |
| Land used by Tongwei Solar (Chengdu) Co., Ltd. | 50,975,197.47 | In progress |
| Land used by Xiamen Tongwei Feed Co., Ltd. | 3,827,576.21 | The foundation was not leveled under regulations. Submissions are being revised under relevant procedures and requirements |
| Land used by Xide Tongwei Huijin New Energy Co., Ltd. | 1,329,475.00 | In progress |
| Land used by Huaian Tongwei Feed Co., Ltd. | 589,823.34 | The company is located in Baotan Town. Huai'an government only allocates a fixed area of land used for industrial purposes to Baotan government which then allocates the land to enterprises. Active communications with the government are under progress. |
| Total | 165,686,270.06 |
Other notes:
"√ Applicable" "□ Not applicable"No impairment provision for intangible assets was created at the end of the period because the net realizable value of each intangible asset was not lower than thecarrying cost.
27. R&D costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | ||||
| Internal R&D costs | Others | Recognized as intangible assets | Converted into current profit and loss | |||||
| R&D projects for solar cells | 987,810,955.29 | 987,810,955.29 | ||||||
| R&D projects for aquatic feed | 119,492,352.50 | 119,492,352.50 | ||||||
| R&D projects for farming technologies | 93,618,384.23 | 93,618,384.23 | ||||||
| R&D projects for high-purity polysilicon | 680,312,818.99 | 680,312,818.99 | ||||||
| R&D projects for PVC and sodium hydrate | 52,262,292.22 | 52,262,292.22 | ||||||
| R&D projects for livestock and poultry feed | 71,448,799.63 | 71,448,799.63 | ||||||
| Others | 30,901,442.57 | 30,901,442.57 | ||||||
| Total | 2,035,847,045.43 | 2,035,847,045.43 |
28. Goodwill
(1). Original carrying value of goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Investee or event generating goodwill | Opening balance | Current increase | Current decrease | Closing balance | ||
| Business combination | Disposal | |||||
| 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 Company Limited | 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 Farming Co., Ltd. | 1,486,979.12 | 1,486,979.12 | ||||
| Tongwei Solar (Hefei) Co., Ltd. | 591,542,868.55 | 591,542,868.55 | ||||
| Core goodwill generated from purchase of Tech-bank Feed Companies | 28,663,999.56 | 28,663,999.56 | ||||
| Non-core goodwill generated from purchase of Tech-bank Feed Companies | 110,864,632.49 | 110,864,632.49 | ||||
| Total | 658,103,524.11 | 139,528,632.05 | 797,632,156.16 | |||
(2). Impairment provision for goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Investee or event generating goodwill | Opening balance | Current increase | Current decrease | Closing balance | ||
| Provision | Disposal | |||||
| Chengdu Chunyuan Food Company Limited | 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 Farming Co., Ltd. | 1,486,979.12 | 1,486,979.12 | ||||
| Tongwei Solar (Hefei) Co., Ltd. | 24,020,900.00 | 24,020,900.00 | ||||
| Non-core goodwill generated from purchase of Tech-bank Feed Companies | 4,753,172.31 | 4,753,172.31 | ||||
| Total | 22,284,806.12 | 28,774,072.31 | 51,058,878.43 |
(3). Information relating to the asset group or combination of asset groups where goodwill falls"√ Applicable" "□ Not applicable"
Products of above companies that generated goodwill have active markets. Main cash flows into these companies are independent from the cash flows into otherasset groups or combinations of asset groups. These companies are determined as separate asset groups. Such asset group is identical to the combination of assetgroups recognized when the goodwill impairment test was performed on the acquisition date.
(4). Note on the process, key parameters (such as forecast growth rate used for expecting present value of future cash flows, growth rate in stable period,
profit margin rate, discount rate, forecast period, applicable) of goodwill impairment test as well as the recognition of goodwill impairment loss"√ Applicable" "□ Not applicable"
The recoverable amounts of Tongwei Solar (Hefei) Co., Ltd., Hainan Haiyi Aquatic Products Feed Co., Ltd. and Zhuhai Haiyi Aquatic Products Feed Co., Ltd.are measured at the present value of expected future cash flows of the asset group. Future cash flows are determined according to the financial budget 2022-2026approved by the management. The cash flow over 5 years for the asset group is calculated as perpetual cash flow. Other key assumptions used for expecting futurecash flows include: estimate the expected revenue, gross margin, costs, depreciation and amortization and increase in investments into long-term assets according totrack record of assets, industry trend and management expectation for the market development. The management believes that any reasonable change in the saidassumptions would not cause the carrying value of any asset group that shares the goodwill to be greater than its recoverable amount except that an impairmentprovision for the goodwill of 24,020,900. 00 yuan previously shared from Tongwei Solar (Hefei) Co., Ltd. to the asset group of multicrystalline silicon cells has beencreated because of scrap.
(5). Effects of goodwill impairment test
"√ Applicable" "□ Not applicable"
Impairment provision for non-core goodwill generated from business combination under different control in current period:
| Investee | Core goodwill | Non-core goodwill | Impairment provision in current period | Note on goodwill impairment |
| Ningbo Tech-bank Feed Technology Co., Ltd. | 27,968,388.26 | 92,908,268.55 | 4,258,563.25 | Note |
| Qingdao Qihao Biotechnology Co., Ltd. | 5,406,198.30 | 94,657.72 | ||
| Ningbo Tech-bank Biotechnology Co., Ltd. | 695,611.30 | 1,432,013.25 | 34,591.37 | |
| Yancheng Tech-bank Feed Technology Co., Ltd. | 5,397,757.35 | 156,910.54 | ||
| Nanning Aigefei Feed Co., Ltd. | 858,089.11 | 35,686.24 | ||
| Bengbu Tech-bank Feed Technology Co., Ltd. | 699,029.50 | 44,329.38 | ||
| Hubei Tech-bank Feed Co., Ltd. | 163,485.89 | 14,384.11 |
| Dongying Tech-bank Feed Technology Co., Ltd. | 317,577.63 | 39,098.57 | ||
| Vietnam Tech-bank Feed Co., Ltd. | 3,682,212.91 | 74,951.13 | ||
| Total | 28,663,999.56 | 110,864,632.49 | 4,753,172.31 |
Other notes"√ Applicable""□ Not applicable"
According to the Chuan-Hua-Heng-Ping report (2022) No. 28 of Sichuan Tianjian Huaheng Asset Appraisal Company Limited on the Fair Value Assessment ofNet Identifiable Assets of Ningbo Tech-bank Feed Technology Co., Ltd. Regarding the Purchase Price Allocation (PPA) for Tongwei Co., Ltd’ s Acquisition of NingboTech-bank Feed Technology Co., Ltd. and Chuan-Hua-Heng-Ping report (2022) No. 29 on the Fair Value Assessment of Net Identifiable Assets of Ningbo Tech-bankBiotechnology Co., Ltd. Regarding the Purchase Price Allocation (PPA) for Tongwei Co., Ltd’ s Acquisition of Ningbo Tech-bank Biotechnology Co., Ltd., coregoodwill was recognized at the difference between the equity consideration and the Company's share of the fair value of net identifiable assets of the investee onacquisition date; core goodwill was recognized at the increase in goodwill due to increase in effects of deferred tax liability on consolidation as a result of increase inassessed value. As the increase in assessed value was amortized on consolidation, relevant deferred tax liability was written off and relevant impairment provision fornon-core goodwill was created. Therefore, only core goodwill was subject to impairment test at the end of the period.
29. Deferred expenses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Amortization in current period | Other decrease | Closing balance |
| Expense for improvements of long-term assets | 96,553,629.68 | 83,585,720.49 | 74,206,027.42 | 105,933,322.75 | |
| Decoration expense | 48,681,890.99 | 86,437,297.53 | 12,304,965.82 | 122,814,222.70 | |
| Others | 14,838,482.29 | 35,081,641.15 | 16,857,131.47 | 33,062,991.97 | |
| Total | 160,074,002.96 | 205,104,659.17 | 103,368,124.71 | 261,810,537.42 |
30. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax Assets | Deductible temporary difference | Deferred income tax Assets | |
| Provision for asset impairment | 759,649,485.88 | 151,104,304.39 | 1,064,729,156.95 | 181,000,631.40 |
| Unrealized gain on internal transactions | 1,322,054,365.74 | 205,367,292.35 | 553,308,162.08 | 82,996,224.31 |
| Deductible loss | 127,368,220.47 | 19,811,869.18 | 676,668,440.56 | 100,731,514.19 |
| Claims reserve | 21,958,001.65 | 3,293,700.25 | ||
| Amortization of fixed assets greater than the amortization under tax laws | 3,043,686.39 | 456,552.96 | -50,791,292.05 | -8,145,487.67 |
| Decrease in depreciation of fixed assets due to provision for asset impairment | -75,165,300.03 | -11,186,379.83 | -318,546,577.09 | -47,781,986.56 |
| Employee benefits payable | 753,695,409.29 | 113,354,311.39 | 114,323,627.95 | 17,300,092.29 |
| Deferred income | 724,500,421.51 | 115,775,526.75 | 530,339,401.39 | 79,769,580.23 |
| Deduction of gain at consolidation on increase in assessed value of land | 25,565,344.73 | 3,834,801.71 | 24,830,399.13 | 3,724,559.87 |
| Interest on lease amortization | 15,425,604.51 | 2,313,840.68 | 17,746,905.56 | 2,662,035.83 |
| Total | 3,656,137,238.49 | 600,832,119.58 | 2,634,566,226.13 | 415,550,864.14 |
(2). Deferred tax liabilities not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred tax liabilities | Taxable temporary difference | Deferred tax liabilities | |
| Increase in assessed value from business combinations under different control | 486,551,435.76 | 114,919,145.64 | ||
| Change in fair value of other debt investments | ||||
| Change in fair value of other equity investments | ||||
| Effects of one-time pre-tax deduction for equipment and appliance less than 5 million yuan | 2,379,425,585.71 | 356,913,837.86 | ||
| Discounted income from interest-free debts | 18,955,505.36 | 2,843,325.80 | 39,270,080.33 | 5,890,512.05 |
| Amortization of fixed assets less than the amortization under tax laws | 1,372,249,974.84 | 205,837,496.23 | 2,014,647,721.36 | 302,197,158.22 |
| Paper gain on held-for-trading financial assets | 10,617,668.58 | 2,198,830.87 | 25,747,780.82 | 3,862,167.13 |
| Total | 4,267,800,170.25 | 682,712,636.40 | 2,079,665,582.51 | 311,949,837.40 |
(3). Net amount after offsetting deferred tax assets or liabilities
"□ Applicable" "√ Not applicable"
(4). Detailed deferred tax assets not recognized
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Deductible temporary difference | ||
| Deductible loss | 2,176,875,369.80 | 1,191,015,304.72 |
| Provision for asset impairment | 159,535,463.69 | 93,967,516.39 |
| Employee benefits payable | 21,533,714.10 | |
| Deferred income | 490,652.78 | |
| Total | 2,358,435,200.37 | 1,284,982,821.11 |
(5). Deductible losses on deferred tax assets not recognized that will be due in the following years"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Year | Closing amount | Opening amount | Notes |
| 2021 | 93,613,531.47 | ||
| 2022 | 95,747,614.75 | 101,491,933.53 | |
| 2023 | 100,189,511.81 | 75,229,312.46 | |
| 2024 | 230,356,593.24 | 218,117,138.83 | |
| 2025 | 354,691,177.91 | 702,563,388.43 | |
| 2026 | 1,395,890,472.09 | ||
| Total | 2,176,875,369.80 | 1,191,015,304.72 | / |
Other notes:
"√ Applicable" "□ Not applicable"
The deductible losses on deferred tax assets not recognized in current period that are due in 2023 and 2044 are greater than these in prior period by 24,960,199.35yuan and 12,239,454.41 yuan respectively. This is because subsidiaries wrote down deferred tax assets recognized due to deductible losses according to their forecasts.
31. Other non-current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Balance | Impairment provision | Carrying value | Balance | Impairment provision | Carrying value | |
| Costs to obtain contracts | ||||||
| Costs to fulfill contracts | ||||||
| Costs of returns receivable | ||||||
| Contract assets | ||||||
| Input tax credit under VAT | 620,859,210.32 | 620,859,210.32 | 752,680,595.05 | 752,680,595.05 | ||
| Prepayments for engineering equipment | 1,806,527,455.00 | 1,806,527,455.00 | 716,619,559.20 | 716,619,559.20 | ||
| Water surface rent prepayments | 13,240,000.00 | 13,240,000.00 | ||||
| Equity purchase price | 3,082,000.00 | 3,082,000.00 | ||||
| Land prepayments | 74,640,589.20 | 74,640,589.20 | ||||
| Total | 2,440,626,665.32 | 2,440,626,665.32 | 1,547,022,743.45 | 1,547,022,743.45 | ||
Other notes:
Input tax credit under VAT whose deduction is expected to be over a year is presented under other non-current assets.
32. Short-term borrowings
(1). Classification of short-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Pledge borrowings | ||
| Mortgage borrowings | 200,042,222.22 | 200,201,666.63 |
| Guarantee borrowings | 734,950,572.25 | 1,813,559,433.63 |
| Credit borrowings | 40,032,625.01 | 335,393,425.51 |
| Guarantee + mortgage borrowings | 200,204,722.22 | |
| Discount of commercial acceptances | 200,000,000.00 | |
| Total | 1,375,230,141.70 | 2,349,154,525.77 |
(2). Overdue short-term borrowings
"□ Applicable" "√ Not applicable"
Significant overdue short-term borrowings:
"□ Applicable" "√ Not applicable"Other notes"√ Applicable" "□ Not applicable"Refer to “related-party guarantees” for details on guarantees where the Company is the guarantor. The guarantees between the Company and its subsidiaries areas below:
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,109,657.48 | 2021-11-02 | 2022-01-31 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 755,812.46 | 2021-11-03 | 2022-02-01 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,155,426.08 | 2021-11-12 | 2022-02-10 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,455,475.41 | 2021-11-18 | 2022-02-16 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 674,674.24 | 2021-11-26 | 2022-02-24 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 686,308.43 | 2021-12-07 | 2022-03-07 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,611,901.01 | 2021-12-13 | 2022-03-14 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,084,812.53 | 2021-12-15 | 2022-03-15 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,303,354.36 | 2021-12-16 | 2022-03-16 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,835,643.56 | 2021-12-21 | 2022-03-21 |
| The Company, Vietnam Tongwei, Qianjiang Tongwei, Heping Tongwei | Tongta Tongwei Co., Ltd. | 1,709,377.63 | 2021-12-21 | 2022-03-21 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 7,906,021.64 | 2021-10-19 | 2022-01-17 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 7,698,922.02 | 2021-11-09 | 2022-02-07 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 4,300,762.51 | 2021-11-12 | 2022-02-10 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 7,461,038.64 | 2021-11-19 | 2022-02-17 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 7,452,221.72 | 2021-11-26 | 2022-02-24 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 6,776,623.18 | 2021-12-02 | 2022-03-02 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 5,429,967.03 | 2021-12-07 | 2022-03-07 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 2,880,681.40 | 2021-12-10 | 2022-03-10 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 7,322,994.39 | 2021-12-17 | 2022-03-17 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 9,955,994.68 | 2021-12-24 | 2022-03-24 |
| The Company, Qianjiang Tongwei, Heping Tongwei, Tongta Tongwei | Tongwei Vietnam Co., Ltd. | 5,161,002.60 | 2021-12-28 | 2022-03-28 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 2,082,259.29 | 2021-10-19 | 2022-01-17 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 932,149.39 | 2021-10-22 | 2022-01-20 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 1,940,213.77 | 2021-10-26 | 2022-01-24 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei | Qianjiang Tongwei Co., Ltd. | 1,782,293.56 | 2021-10-28 | 2022-01-26 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 5,641,122.06 | 2021-11-04 | 2022-01-31 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 2,292,562.81 | 2021-11-04 | 2022-01-31 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 2,140,177.03 | 2021-11-11 | 2022-02-09 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei | Qianjiang Tongwei Co., Ltd. | 1,165,563.90 | 2021-11-18 | 2022-02-16 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 754,598.08 | 2021-12-14 | 2022-03-11 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Haiyang Tongwei | Qianjiang Tongwei Co., Ltd. | 1,618,691.55 | 2021-12-14 | 2022-03-14 |
| The Company, Vietnam Tongwei, Tongta Tongwei, Heping Tongwei | Qianjiang Tongwei Co., Ltd. | 1,227,691.10 | 2021-12-24 | 2022-03-24 |
| The Company, Vietnam Tongwei | Haiyang Tongwei Co., Ltd. | 809,315.55 | 2021-10-20 | 2022-01-18 |
| The Company, Vietnam Tongwei | Haiyang Tongwei Co., Ltd. | 4,198,421.89 | 2021-11-04 | 2022-02-02 |
| The Company, Vietnam Tongwei | Haiyang Tongwei Co., Ltd. | 2,143,675.01 | 2021-12-27 | 2022-03-27 |
| The Company | PT. Tongwei Indonesia | 294,560.45 | 2021-11-01 | 2022-01-03 |
| The Company | PT. Tongwei Indonesia | 4,017,581.07 | 2021-12-08 | 2022-04-01 |
| The Company | PT. Tongwei Indonesia | 586,586.53 | 2021-12-22 | 2022-04-11 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 3,132,020.86 | 2021-10-22 | 2022-01-12 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 586,599.47 | 2021-10-25 | 2022-01-21 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 586,599.47 | 2021-11-03 | 2022-01-31 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 2,086,341.35 | 2021-08-16 | 2022-02-10 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 170,182.10 | 2021-11-19 | 2022-02-17 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 1,208,753.34 | 2021-11-19 | 2022-02-22 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 2,873,088.51 | 2021-12-07 | 2022-02-23 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 550,689.48 | 2021-12-03 | 2022-02-25 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 586,580.34 | 2021-12-07 | 2022-03-01 |
| The Company, Singapore Holdings | PT. Tongwei Indonesia | 3,107,747.95 | 2021-10-12 | 2022-01-10 |
| Yongxiang, Tongwei Solar (Anhui) Co., Ltd. | The Company | 200,204,722.22 | 2021-03-31 | 2022-03-31 |
| Total | 334,449,461.13 |
33. Held-for-trading financial liabilities
"□ Applicable" "√ Not applicable"
34. Derivative financial liabilities
"□ Applicable" "√ Not applicable"
35. Notes payable
(1). Presentation of notes payable
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Type | Closing balance | Opening balance |
| Commercial acceptances | 124,448,544.24 | |
| Banker's acceptances | 9,761,984,458.33 | 9,363,914,654.37 |
| Letters of credit | 71,490,068.10 | 48,009,780.41 |
| Total | 9,957,923,070.67 | 9,411,924,434.78 |
Total amount of overdue notes payable as of the end of the period is 0 yuan.
36. Accounts payable
(1). Presentation of accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Within 1 year | 7,686,622,841.17 | 3,345,411,733.19 |
| 1- 2 years | 388,134,629.62 | 404,083,464.63 |
| 2- 3 years | 42,680,870.30 | 145,845,168.26 |
| Over 3 years | 33,831,735.12 | 21,980,614.56 |
| Total | 8,151,270,076.21 | 3,917,320,980.64 |
(2). Significant accounts payable with an age over 1 year
"□ Applicable" "√ Not applicable"Other notes"√ Applicable" "□ Not applicable"
1) Accounts payable with an age over 1 year are mainly equipment and construction prices payableby the Company.
2) Classification by nature of payment:
| Item | Closing balance | Opening balance |
| Payable on operating activities | 2,586,374,768.27 | 1,552,527,877.70 |
| Payable on non-operating activities | 5,564,895,307.94 | 2,364,793,102.94 |
| Total | 8,151,270,076.21 | 3,917,320,980.64 |
37. Advances from customers
(1). Presentation of advances from customers
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Within 1 year | 97,237,950.05 | 31,301,784.79 |
| 1- 2 years | 2,630,455.22 | 1,823,123.19 |
| 2- 3 years | 728,229.39 | 1,947,192.85 |
| Over 3 years | 1,663,190.63 | |
| Total | 102,259,825.29 | 35,072,100.83 |
(2). Significant advances from customers with an age over 1 year
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
38. Contract liabilities
(1). Contract liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Customer advances | 3,112,027,804.79 | 2,302,728,492.73 |
| Total | 3,112,027,804.79 | 2,302,728,492.73 |
(2). Significant changes in carrying values in the reporting period and reasons for the changes"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
39. Employee benefits payable
(1). Presentation of employee benefits payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| I. Short-term benefits | 736,363,100.05 | 4,789,591,348.91 | 4,137,196,578.55 | 1,388,757,870.41 |
| II. Post-employment benefits - defined contribution plans | 187,425,627.27 | 187,425,627.27 | ||
| III. Termination benefits | 6,389,922.92 | 6,389,922.92 | ||
| IV. Other benefits due within one year | ||||
| Total | 736,363,100.05 | 4,983,406,899.10 | 4,331,012,128.74 | 1,388,757,870.41 |
(2). Presentation of short-term benefits
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| I. Salaries, bonuses, allowances and subsidies | 693,618,316.66 | 4,421,453,198.25 | 3,791,147,284.57 | 1,323,924,230.34 |
| II. Employee benefit expense | 155,613,430.55 | 155,613,430.55 | ||
| III. Social insurance expense | 107,439,822.99 | 107,439,822.99 | ||
| Including: Medical insurance expense | 90,752,410.19 | 90,752,410.19 | ||
| Work injury insurance expense | 11,185,727.70 | 11,185,727.70 | ||
| Maternity insurance expense | 5,501,685.10 | 5,501,685.10 | ||
| IV. House provident fund | 42,024,311.53 | 42,024,311.53 | ||
| V. Union funds and education expense | 42,744,783.39 | 62,812,951.65 | 40,724,094.97 | 64,833,640.07 |
| VI. Short-term paid leave | ||||
| VII. Short-term profit-sharing plan |
| 6. Non-monetary benefits | 220,047.86 | 220,047.86 | ||
| 7. Others | 27,586.08 | 27,586.08 | ||
| Total | 736,363,100.05 | 4,789,591,348.91 | 4,137,196,578.55 | 1,388,757,870.41 |
(3). Presentation of defined contribution plans
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| 1. Basic pension insurance | 181,036,302.61 | 181,036,302.61 | ||
| 2. Unemployment insurance expense | 6,389,324.66 | 6,389,324.66 | ||
| 3. Enterprise annuity expense | ||||
| Total | 187,425,627.27 | 187,425,627.27 |
Other notes:
"√ Applicable" "□ Not applicable"
The balance of salaries, bonuses, allowances and subsidies payable is the December salaries andannual bonus that had been established and would be paid in the next month. No delay in employeepayment exists.
40. Taxes payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| VAT | 248,318,107.38 | 17,055,192.80 |
| Consumption tax | ||
| Business tax | ||
| Corporate income tax | 496,865,750.99 | 176,762,634.48 |
| Personal income tax | 24,877,403.26 | 10,437,660.41 |
| Urban construction and maintenance tax | 15,889,519.06 | 468,813.45 |
| Property tax | 6,773,632.40 | 6,137,519.90 |
| Land use tax | 3,309,489.18 | 2,837,025.80 |
| Stamp duty | 7,637,857.31 | 3,578,837.17 |
| Others | 12,315,148.98 | 3,137,081.90 |
| Total | 815,986,908.56 | 220,414,765.91 |
Other notes:
Under the Corporate Income Tax Law, the corporate income tax of the parent company and branchesis paid by the parent company in aggregate. The taxable income of the head office accounts for 50% ofthe aggregated taxable income, the remaining taxable income is distributed to branches with three factors(income, employee benefits and assets) as basis which take up 35%, 35% and 30% respectively. Theincome tax payable by each entity is the taxable income distributed multiplied by the applicable tax rate.For the aggregated income tax payable, the head office accounts for 50%, and the remaining income taxpayable is distributed to branches with three factors (income, employee benefits and assets) as basis whichtake up 35%, 35% and 30% respectively.
41. Other payables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividend payable | ||
| Other payables | 761,620,932.59 | 743,639,264.91 |
| Total | 761,620,932.59 | 743,639,264.91 |
Other notes:
"□ Applicable" "√ Not applicable"
Interest payable
(1). Presentation by category
"□ Applicable" "√ Not applicable"Dividend payable
(2). Presentation by category
"□ Applicable" "√ Not applicable"Other payables
(1). Other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Current accounts with related-parties | 3,801,160.00 | 1,119,397.77 |
| Bonds and deposits | 511,772,262.14 | 499,462,015.47 |
| Equity transfer price | 54,137,857.00 | 91,500,000.00 |
| Others | 191,909,653.45 | 151,557,851.67 |
| Total | 761,620,932.59 | 743,639,264.91 |
(2). Other significant payables with an age over 1 year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Reason for non-repayment or carryover |
| Inner Mongolia Taimengda Materials Management Co., Ltd. | 76,000,000.00 | Bond within the settlement period |
| Total | 76,000,000.00 | / |
Other notes:
"□ Applicable" "√ Not applicable"
42. Liabilities held for sale
"□ Applicable" "√ Not applicable"
43. Non-current liabilities due within one year
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Long-term borrowings due within 1 year | 981,675,606.47 | 1,076,804,937.39 |
| Bonds payable due within 1 year | ||
| Long-term accounts payable due within 1 year | 1,039,544,910.06 | 1,183,933,966.71 |
| Lease liabilities due within 1 year | 465,808,746.76 | 545,738,664.56 |
| Total | 2,487,029,263.29 | 2,806,477,568.66 |
Other notes:
(1) Long-term borrowings due within one year
| Item | Closing balance | Opening balance |
| Credit borrowings | 67,722,242.68 | 1,164,229.82 |
| Guarantee borrowings | 455,298,240.87 | 570,152,809.18 |
| Mortgage borrowings | 1,499,305.06 | |
| Pledge + guarantee borrowings | 124,603,755.53 | 90,154,083.77 |
| Mortgage + guarantee borrowings | 107,591,505.55 | 300,403,333.34 |
| Mortgage + pledge + guarantee borrowings | 224,960,556.78 | 114,930,481.28 |
| Total | 981,675,606.47 | 1,076,804,937.39 |
① Guarantees provided by Tongwei Group for the Company are detailed in “related-partyguarantees”. Guarantees provided by the Company for its subsidiaries are as below:
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 10,104.63 | 2021-09-10 | 2022-03-09 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 36,366,562.03 | 2021-09-10 | 2022-09-10 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 10,104.63 | 2022-07-26 | 2022-01-22 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 12,115,450.92 | 2022-07-26 | 2022-07-26 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 50,125,000.00 | 2021-09-09 | 2022-03-08 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 50,125,000.00 | 2021-09-09 | 2022-09-08 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 375,000.00 | 2021-10-20 | 2022-12-31 |
| Tongwei Co., Ltd. | Tongwei Solar Hong Kong Co., Ltd. | 658,822.31 | 2021-12-01 | 2022-12-31 |
| Tongwei Co., Ltd. | Tongwei Solar (Hefei) Co., Ltd. | 352,916.67 | 2021-12-14 | 2022-12-31 |
| Tongwei Co., Ltd. | Tongwei New Energy Co., Ltd. | 7,359,064.05 | 2019-03-18 | 2022-11-20 |
| Tongwei Co., Ltd. | Aohanqi Xinhuo New Energy Co., Ltd. | 40,507,756.94 | 2020-03-27 | 2022-09-30 |
| Tongwei Co., Ltd. | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 11,103,940.83 | 2019-06-28 | 2022-04-10 |
| Tongwei Co., Ltd. | Binzhou Zhanhua Tonghui Marine Technology Co., Ltd. | 46,685,202.16 | 2020-12-30 | 2022-12-20 |
| Tongwei Co., Ltd. | Tianjin Binhai Tongli New Energy Co., Ltd. | 24,185,171.06 | 2020-06-30 | 2022-12-10 |
| Tongwei Co., Ltd. | Xichan Tongwei New Energy Co., Ltd. | 6,708,125.36 | 2020-09-27 | 2022-12-21 |
| Tongwei Co., Ltd. | Sihong Tongli New Energy Co., Ltd. | 72,165,815.28 | 2019-10-20 | 2022-10-20 |
| Tongwei Co., Ltd. | Gao’an Tongwei Fishery-PV Technology Co., Ltd. | 9,990,032.73 | 2020-04-01 | 2022-12-21 |
| Tongwei Co., Ltd. | Changde Dingcheng Tongwei New Energy Co., Ltd. | 12,550,338.64 | 2020-09-11 | 2022-12-20 |
| Tongwei Co., Ltd. | Bengbu Tongwei New Energy Co., Ltd. | 38,973,129.17 | 2021-03-11 | 2022-11-20 |
| Tongwei Co., Ltd. | Gong’an Tongwei Fishery-PV Technology Co., Ltd. | 25,225,166.66 | 2021-03-26 | 2022-09-21 |
| Tongwei Co., Ltd. | Binyang Jingchuang New Energy Co., Ltd. | 7,109,312.50 | 2021-12-10 | 2022-12-10 |
| Tongwei Co., Ltd. | Binyang Jingchuang New Energy Co., Ltd. | 8,593,118.05 | 2021-12-10 | 2022-12-10 |
| Tongwei Co., Ltd. | Qinzhou Tongwei Huijin New Energy Co., Ltd. | 18,136,888.89 | 2021-10-27 | 2022-12-15 |
| Tongwei Co., Ltd. | Dongying Tongli New Energy Co., Ltd. | 20,271,249.99 | 2021-03-04 | 2022-08-22 |
| Tongwei Co., Ltd. | Sichuan Yongxiang New Energy Co., Ltd. | 251,356,700.00 | 2021-07-30 | 2022-12-21 |
| Tongwei Co., Ltd. | Sichuan Yongxiang New Energy Co., Ltd. | 624,700.00 | 2021-09-23 | 2022-12-31 |
| Tongwei Co., Ltd. | Yunnan Tongwei High-purity Crystalline Silicon Company | 58,111,666.67 | 2021-12-02 | 2022-12-31 |
| Tongwei Co., Ltd. | Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 955,555.56 | 2021-11-19 | 2022-12-31 |
| Total | 810,751,895.73 |
① Pledge borrowings and mortgage borrowings are detailed in “assets with restricted ownership oruse right”.
② No long-term borrowings due within one year is overdue.
③ Long-term accounts payable due within one year are detailed in “long-term payables”.
44. Other current liabilities
Other current liabilities"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Short-term bonds payable | ||
| Sale returns payable | ||
| Output VAT to be converted | 190,563,712.84 | 108,250,357.80 |
| Reserve established by guarantor | 16,976,803.56 | 21,953,762.73 |
| Including: undue claims reserve | 3,012,100.99 | 5,418,831.55 |
| Compensation reserve established by guarantor | 13,964,702.57 | 16,534,931.18 |
| Total | 207,540,516.40 | 130,204,120.53 |
Increase/decrease in short-term bonds:
"□ Applicable" "√ Not applicable"Other notes:
"√ Applicable" "□ Not applicable"
Undue claims reserve is created at 50% of the guarantee income; the reserve is reversed after theguarantee obligation is discharged; the compensation reverse is created at 1% of the closing balance ofguaranteed amount.
45. Long-term borrowings
(1). Classification of long-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Pledge borrowings | ||
| Mortgage borrowings | ||
| Guarantee borrowings | 5,462,279,024.22 | 3,255,292,828.00 |
| Credit borrowings | 1,220,980,000.00 | 769,970,000.00 |
| Pledge + guarantee borrowings | 1,388,907,338.52 | 1,101,062,711.34 |
| Mortgage + guarantee borrowings | 1,364,310,000.00 | |
| Mortgage + pledge + guarantee borrowings | 2,004,553,497.42 | 1,170,260,000.00 |
| Total | 11,441,029,860.16 | 6,296,585,539.34 |
Note on classification of long-term borrowings:
1) Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group to theCompany. Guarantees provided by the Company for its subsidiaries are as below:
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 352,000,000.00 | 2021-07-26 | 2025-07-31 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 100,000,000.00 | 2021-09-27 | 2024-09-26 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 300,000,000.00 | 2021-10-20 | 2024-10-19 |
| Tongwei Co., Ltd. | Tongwei Solar (Meishan) Co., Ltd. | 100,000,000.00 | 2021-09-09 | 2023-09-08 |
| Tongwei Co., Ltd. | Tongwei Solar Hong Kong Co., Ltd. | 366,279,024.22 | 2021-12-01 | 2024-11-30 |
| Tongwei Co., Ltd. | Tongwei Solar (Hefei) Co., Ltd. | 300,000,000.00 | 2021-12-14 | 2024-12-13 |
| Tongwei Co., Ltd. | Tongwei New Energy Co., Ltd. | 93,820,000.00 | 2019-03-18 | 2036-03-18 |
| Tongwei Co., Ltd. | Aohanqi Xinhuo New Energy Co., Ltd. | 300,000,000.00 | 2020-03-27 | 2030-03-26 |
| Tongwei Co., Ltd. | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 58,000,000.00 | 2019-06-28 | 2029-06-10 |
| Tongwei Co., Ltd. | Binzhou Zhanhua Tonghui Marine Technology Co., Ltd. | 458,623,600.00 | 2020-12-30 | 2035-12-03 |
| Tongwei Co., Ltd. | Tianjin Binhai Tongli New Energy Co., Ltd. | 296,625,000.00 | 2020-06-30 | 2034-06-10 |
| Tongwei Co., Ltd. | Xichan Tongwei New Energy Co., Ltd. | 69,500,000.00 | 2020-09-27 | 2034-09-27 |
| Tongwei Co., Ltd. | Sihong Tongli New Energy Co., Ltd. | 613,653,672.00 | 2019-10-20 | 2033-04-20 |
| Tongwei Co., Ltd. | Gao’an Tongwei Fishery-PV Technology Co., Ltd. | 153,708,584.00 | 2020-04-01 | 2037-04-20 |
| Tongwei Co., Ltd. | Changde Dingcheng Tongwei New Energy Co., Ltd. | 244,128,666.52 | 2020-09-11 | 2035-08-10 |
| Tongwei Co., Ltd. | Bengbu Tongwei New Energy Co., Ltd. | 410,901,313.42 | 2021-03-11 | 2034-12-29 |
| Tongwei Co., Ltd. | Gong’an Tongwei Fishery-PV Technology Co., Ltd. | 168,000,000.00 | 2021-03-26 | 2032-09-21 |
| Tongwei Co., Ltd. | Binyang Jingchuang New Energy Co., Ltd. | 128,000,000.00 | 2021-12-10 | 2039-12-08 |
| Tongwei Co., Ltd. | Binyang Jingchuang New Energy Co., Ltd. | 106,500,000.00 | 2021-12-10 | 2035-12-08 |
| Tongwei Co., Ltd. | Qinzhou Tongwei Huijin New Energy Co., Ltd. | 122,000,000.00 | 2021-10-27 | 2035-10-27 |
| Tongwei Co., Ltd. | Dongying Tongli New Energy Co., Ltd. | 170,000,000.00 | 2021-03-04 | 2034-02-21 |
| Tongwei Co., Ltd. | Sichuan Yongxiang New Energy Co., Ltd. | 950,000,000.00 | 2021-07-30 | 2026-07-29 |
| Tongwei Co., Ltd. | Sichuan Yongxiang New Energy Co., Ltd. | 470,000,000.00 | 2021-08-25 | 2028-08-24 |
| Tongwei Co., Ltd. | Yunnan Tongwei High-purity Crystalline Silicon Company | 242,310,000.00 | 2021-11-24 | 2025-06-30 |
| Tongwei Co., Ltd. | Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 800,000,000.00 | 2021-11-16 | 2026-11-15 |
| Total | 7,374,049,860.16 |
Note: pledge borrowings and mortgage borrowings are detailed in “assets with restricted ownership oruse right”.
Other note (including interest rate range):
"□ Applicable" "√ Not applicable"
46. Bonds payable
(1). Bonds payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| 2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. | 410,493,072.19 | 410,096,446.33 |
| Total | 410,493,072.19 | 410,096,446.33 |
(2). Increase/decrease in bonds payable: (excluding other financial instruments such as preferenceshare and perpetual bond classified as financial liabilities)"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Bond name | Face value | Issue date | Bond duration | Issue amount | Opening balance | Current issue | Interest established by face value | Amortization of premium or discount | Current repayment | Closing balance |
| 2020 Middle-Term Note Series 1 of Tongwei Co., Ltd. | 100 | 2020-06-17 | 3 | 400,000,000.00 | 410,096,446.33 | 20,799,999.96 | 396,625.90 | 20,800,000.00 | 410,493,072.19 | |
| Total | / | / | / | 400,000,000.00 | 410,096,446.33 | 20,799,999.96 | 396,625.90 | 20,800,000.00 | 410,493,072.19 |
(3). Note on conversion conditions and conversion time of convertible bonds
"□ Applicable" "√ Not applicable"
(4). Note on other financial instruments classified as financial liabilities
Basic information of other financial instruments (including preference share and perpetual bond)outstanding as of the end of the period"□ Applicable" "√ Not applicable"
Changes in other financial instruments (including preference share and perpetual bond) outstanding as ofthe end of the period"□ Applicable" "√ Not applicable"Note on basis for classification of other financial instruments as financial liabilities:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
47. Lease liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Lease liabilities | 2,966,450,212.56 | 2,560,617,210.18 |
| Less: Lease liabilities due within one year | 465,808,746.76 | 545,738,664.56 |
| Total | 2,500,641,465.80 | 2,014,878,545.62 |
48. Long-term payables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Long-term payables | 1,647,453,239.69 | 2,393,314,937.69 |
| Special payables | 850,000.00 | 850,000.00 |
| Total | 1,648,303,239.69 | 2,394,164,937.69 |
Other notes:
"□ Applicable" "√ Not applicable"
Long-term payables
(1). Presentation of other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Closing balance |
| Debt investments Note 1 | 45,000,000.00 | |
| Borrowings Note 2 | 120,961,890.11 |
| Net extended debts | 330,905,754.60 | 166,132,412.02 |
| Financial lease payments payable | 2,062,409,183.09 | 1,315,358,937.56 |
| Including: CITIC Financial Leasing Co., Ltd. | 1,201,212,181.09 | 731,303,713.43 |
| SPDB Financial Leasing Co., Ltd. | 294,835,281.38 | 309,076,615.42 |
| Jiangsu Financial Leasing Co., Ltd. | 440,703,322.56 | 174,978,450.78 |
| Industrial Bank Financial Leasing Co., Ltd. | 125,658,398.06 | 100,000,157.93 |
| Total | 2,393,314,937.69 | 1,647,453,239.69 |
Note 1: The Cooperation Agreement on Industrialization of High-efficiency SHJ Solar Cells signedbetween and by Zhongwei New Energy (Chengdu) Co., Ltd. (“Zhongwei New Energy”) and ChengduKonggang Technology Venture Investment Group Co., Ltd. (“Venture Company”) on June 14, 2019provided that: under the Investment Agreement and Supplementary Agreement on the 1 GW High-efficiency Silicon SHJ Solar Cell Project signed between Zhongwei New Energy and Shuangliu Districtgovernment, from the date when the 1 GW project is fully put into production, Zhongwei New Energywill repurchase shares held by Venture Company at the agreed repurchase price before which VentureCompany is not entitled to dividend or any other profit distribution from Zhongwei New Energy. Therepurchase interest rate is the five-year loan benchmark rate set by the People's Bank of China.Note 2: On January 15, 2021, Tongwei Solar (Jintang) Co., Ltd and Chengdu Jinying Investment Co.,Ltd., one of its non-controlling shareholders signed a borrowing agreement where the Company is theguarantor. Under the agreement, the total borrowing is 600 million yuan from February 10, 2021 toFebruary 10, 2026. As of the end of December 31, 2021, the amount received was 120,770,000.00 yuan.
Other notes:
1) Presentation of net overdue debts
| Item | Closing balance | Opening balance |
| Hefei High-tech Technology Development Zone Social Services Company | 301,410,547.92 | 452,115,821.87 |
| Hefei High-tech Venture Park Management Co., Ltd. | 44,312,090.61 | 59,021,050.61 |
| Hefei High-tech Construction Investment Group Company | 24,453,196.40 | 44,126,880.00 |
| Total original value of debts | 370,175,834.93 | 555,263,752.48 |
| Less: Unrecognized financing costs measured at cost | 18,955,505.36 | 39,270,080.33 |
| Net extended debts | 351,220,329.57 | 515,993,672.15 |
| Including: Due within one year | 185,087,917.55 | 185,087,917.55 |
| Due over one year | 166,132,412.02 | 330,905,754.60 |
Under the supplementary agreement to the Debt Restructuring Agreement signed in February 2016by and between Tongwei Solar (Hefei) Co., Ltd., Tongwei Group Co., Ltd., Hefei High-tech Venture ParkManagement Co., Ltd., Hefei High-tech Industrial Development Zone Administration Committee andHefei High-tech Urban Construction Investment Co., Ltd., and relevant documents on review andreduction of debts made in 2019, Tongwei Solar (Hefei) Co., Ltd. is required to repay 925,439,587.58yuan from 2019 in a five-year period. Under the arrangements, Tongwei Solar (Hefei) Co., Ltd has repaid185,087,917.55 yuan resulting in the cumulative repayment of 555,263,752.65 yuan.
2) Presentation of financial leases:
| Item | Closing balance | Opening balance |
| Financial lease payments payable | 1,400,547,097.54 | 2,220,434,770.66 |
| Less: Unrecognized financing costs | 85,188,159.98 | 158,025,587.57 |
| Net lease payments payable | 1,315,358,937.56 | 2,062,409,183.09 |
3) Presentation by financial lease company:
| Item | Opening balance | Closing balance |
| Lease payments | 3,355,166,101.66 | 2,344,515,799.95 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 1,844,349,985.40 | 1,296,053,291.42 |
| 2. SPDB Financial Leasing Co., Ltd. | 446,412,861.36 | 447,845,154.98 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 891,304,326.00 | 459,719,066.00 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 173,098,928.90 | 140,898,287.55 |
| Less: Unrecognized financing costs | 293,910,869.41 | 174,699,869.88 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 173,843,439.69 | 93,838,828.67 |
| 2. SPDB Financial Leasing Co., Ltd. | 49,804,509.85 | 46,682,907.45 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 48,712,778.06 | 19,015,743.39 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 21,550,141.81 | 15,162,390.37 |
| Net lease payments | 3,061,255,232.25 | 2,169,815,930.07 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 1,670,506,545.71 | 1,202,214,462.75 |
| 2. SPDB Financial Leasing Co., Ltd. | 396,608,351.51 | 401,162,247.53 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 842,591,547.94 | 440,703,322.61 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 151,548,787.09 | 125,735,897.18 |
| Less: Lease payments due within one year | 1,134,731,331.00 | 943,968,702.41 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 549,153,605.74 | 523,976,797.97 |
| 2. SPDB Financial Leasing Co., Ltd. | 121,714,324.58 | 109,508,295.82 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 431,585,260.00 | 279,555,834.00 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 32,278,140.68 | 30,927,774.62 |
| Less: Unrecognized financing costs due within one year | 135,885,281.84 | 89,511,709.90 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 79,859,241.12 | 53,066,048.65 |
| 2. SPDB Financial Leasing Co., Ltd. | 19,941,254.45 | 17,422,663.71 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 29,697,034.62 | 13,830,962.17 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 6,387,751.65 | 5,192,035.37 |
| Less: Net lease payments due within one year | 998,846,049.16 | 854,456,992.51 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 469,294,364.62 | 470,910,749.32 |
| 2. SPDB Financial Leasing Co., Ltd. | 101,773,070.13 | 92,085,632.11 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 401,888,225.38 | 265,724,871.83 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 25,890,389.03 | 25,735,739.25 |
| Lease payments due over one year | 2,220,434,770.66 | 1,400,547,097.54 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 1,295,196,379.66 | 772,076,493.45 |
| 2. SPDB Financial Leasing Co., Ltd. | 324,698,536.78 | 338,336,859.16 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 459,719,066.00 | 180,163,232.00 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 140,820,788.22 | 109,970,512.93 |
| Less: Unrecognized financing costs due over one year | 158,025,587.57 | 85,188,159.98 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 93,984,198.57 | 40,772,780.02 |
| 2. SPDB Financial Leasing Co., Ltd. | 29,863,255.40 | 29,260,243.74 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 19,015,743.44 | 5,184,781.22 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 15,162,390.16 | 9,970,355.00 |
| Net lease payments due over one year | 2,062,409,183.09 | 1,315,358,937.56 |
| Including: 1. CITIC Financial Leasing Co., Ltd. | 1,201,212,181.09 | 731,303,713.43 |
| 2. SPDB Financial Leasing Co., Ltd. | 294,835,281.38 | 309,076,615.42 |
| 3. Jiangsu Financial Leasing Co., Ltd. | 440,703,322.56 | 174,978,450.78 |
| 4. Industrial Bank Financial Leasing Co., Ltd. | 125,658,398.06 | 100,000,157.93 |
As of December 31, 2021, PV powerplant companies under the Company acquired a net amount of2,169,815,930.07 under leaseback for which the Company acts as the guarantor with joint and severalliability. These companies have their right to electricity price income pledged and the leaseback of theunderlying assets pledged, shareholders of these companies have their shares pledged.
Special payables
(2). Presentation of special payables by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | Reason |
| Special funds used as guarantees by Tongwei Agriculture Financing Guarantee | 850,000.00 | 850,000.00 | |||
| Total | 850,000.00 | 850,000.00 | / |
Other notes:
The special funds used as guarantees by Tongwei Agriculture Financing Guarantee are 2,480,000.00yuan consisting of risk support funds (1,630,000.00 yuan) and funds for reward in place of subsidy(850,000.00 yuan). The use of these funds is subject to Sichuan Management Procedures on Provincial-level Special Fiscal Subsidy for Agriculture-related Credit Guarantee issued by the Department ofFinance of Sichuan province on August 28, 2012. Article 18 of the Procedures provides for that: funds forreward in place of subsidy are injected as state-owned capital to increase the registered capital of theguarantor; every time when the cumulative funds for reward in place of subsidy received by the guarantoris or over 10 million yuan, the guarantor must timely report to relevant authority under relevant provisionsfor approval and then complete the change registration of its registered capital. Risk support funds are tocompensate the loss from guarantee risk if the risk reserve created by the guarantor is insufficient tocompensate the loss; the balance of the risk support funds (if any) is carried over to the next year. Thefunds received by the Company were used in 2018 to compensate a loss of 1,630,000.000 yuan resultedfrom unrecovered repayments made for behalf of the guaranteed parties, with a balance of 850,000.00yuan.
49. Long-term employee benefits payable
"√ Applicable" "□ Not applicable"
(1). Long-term employee benefits payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| I. Post-employment benefits - net defined benefit liability | ||
| II. Termination benefits | ||
| III. Other long-term benefits | 649,891,600.00 | |
| Total | 649,891,600.00 |
(2). Change in defined benefit plan
Present value of defined benefit plan"□ Applicable" "√ Not applicable"
Plan asset:
"□ Applicable" "√ Not applicable"
Net defined benefit liability (asset)"□ Applicable" "√ Not applicable"
Note on the defined benefit plan and risks relating thereto, and their impact on the Company's futurecash flows, time and uncertainty:
"□ Applicable" "√ Not applicable"
Note on significant actuarial assumptions for defined benefit plan and result of sensitivity analysis"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
Other long-term employee benefits refer to the bonus to be paid one year later
50. Estimated liabilities
"□ Applicable" "√ Not applicable"
51. Deferred income
Deferred income"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | Reason |
| Government grants | 782,273,717.14 | 294,140,982.80 | 175,741,000.09 | 900,673,699.85 | |
| Total | 782,273,717.14 | 294,140,982.80 | 175,741,000.09 | 900,673,699.85 | / |
Items relating to grants:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Liability item | Opening balance | Increased grant in current period | Amount carried into non-operating revenue in current period | Amount carried into other income in current period | Other changes | Closing balance | Relating to asset/income |
| Subsidy for fixed asset investment | 95,871,104.33 | 136,327,980.00 | 6,832,850.68 | 225,366,233.65 | Relating to asset | ||
| Reward for fixed asset investment (2.3 GW project) | 111,363,555.01 | 13,498,612.71 | 97,864,942.30 | Relating to asset | |||
| Subsidy for phase II fixed asset investment | 99,837,188.67 | 13,298,843.70 | 86,538,344.97 | Relating to asset | |||
| Infrastructure support fund for Global Innovation Base project | 63,072,000.00 | 63,072,000.00 | Relating to asset | ||||
| Special funds for infrastructure construction | 55,633,986.68 | 8,052,017.17 | 6,674,212.49 | 57,011,791.36 | Relating to asset | ||
| Subsidy for land investment | 57,762,711.81 | 1,220,339.04 | 56,542,372.77 | Relating to asset | |||
| Subsidy for high-purity polysilicon project | 40,095,769.47 | 5,000,000.00 | 1,604,296.20 | 43,491,473.27 | Relating to asset | ||
| State public service platform | 27,150,000.00 | 319,411.76 | 26,830,588.24 | Relating to asset |
| 2017-2019 special funds for new Zhanxian projects of provincial level | 33,069,260.64 | 7,169,211.86 | 25,900,048.78 | Relating to asset | |||
| Technological renovation project for the 2 GW intelligent factory | 30,436,880.14 | 5,686,059.85 | 24,750,820.29 | Relating to asset | |||
| Baotou fiscal subsidy for emerging strategies | 21,180,555.58 | 2,083,333.32 | 19,097,222.26 | Relating to asset | |||
| Subsidy for new energy projects | 17,222,222.20 | 1,666,666.68 | 15,555,555.52 | Relating to asset | |||
| Compensation for relocation of Huai'an Feed | 14,982,511.25 | 2,794,704.48 | 12,187,806.77 | Relating to asset | |||
| Compensation for relocation of Tianjin Feed | 16,099,587.14 | 4,694,164.68 | 11,405,422.46 | Relating to asset | |||
| Special subsidy for the fixed asset and wastewater treatment station of the 1 GW project | 25,620,000.00 | 14,694,985.62 | 10,925,014.38 | Relating to asset | |||
| Special funds from 2020 provincial funds for industrial development (key industrial and technological renovation projects) | 10,000,000.00 | 1,714,424.63 | 8,285,575.37 | Relating to asset | |||
| Compensation for relocation of Chongqing Feed | 8,861,547.86 | 2,061,528.36 | 6,800,019.50 | Relating to asset | |||
| Integration of trichlorosilane extraction technology and equipment for production of polysilicon at a capacity of 20,000 tons | 5,000,000.00 | 5,000,000.00 | Relating to asset | ||||
| Subsidy for technological renovation projects on fixed assets (reward after completion) | 38,072,706.21 | 35,435,142.29 | 2,637,563.92 | Relating to asset |
| Subsidy for R&D instruments and equipment | 10,729,419.54 | 8,325,750.47 | 2,403,669.07 | Relating to asset | |||
| Other amounts relating to asset | 103,263,101.74 | 38,353,805.63 | 38,518,897.09 | -5,726,000.00 | 97,372,010.28 | Relating to asset | |
| Other amounts relating to income | 2,171,608.87 | 1,185,180.00 | 1,479,897.53 | -241,666.65 | 1,635,224.69 | Relating to income | |
| Total | 782,273,717.14 | 294,140,982.80 | 169,773,333.44 | -5,967,666.65 | 900,673,699.85 |
Other notes:
"√ Applicable" "□ Not applicable"
① Other changes of -5,726,000.00 yuan are detailed in “return of grants”; other changes of -241,666.65 yuan are the conversion to financial expense - fiscal interestsubsidy.
② Compensation payments for relocation converted to deferred income: for the compensation payments for relocation of Tianjin Feed, Huai'an Feed and ChongqingFeed, other income of 9,550,397.52 was recognized in 2021 according to the estimated useful life (deprecation period).
52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Opening balance | Change (+, -) | Closing balance | |||||
| New issue | Bonus issue | Capital surplus converted to share capital | Others | Sub-total | |||
| Total shares | 4,501,548,184 | 4,501,548,184 | |||||
Other notes:
Restricted shares were unlocked to common CNY shares in the period.
54. Other equity instruments
(1). Basic information of other financial instruments (including preference share and perpetualbond) outstanding as of the end of the period"□ Applicable" "√ Not applicable"
(2). Changes in other financial instruments (including preference share and perpetual bond)outstanding as of the end of the period"□ Applicable" "√ Not applicable"Note on changes in other equity instruments and the reasons as well as basis for relevant accountingtreatment"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
55. Capital surplus
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Capital premium (share premium) | 16,104,104,330.61 | 4,813,240.22 | 686,736.11 | 16,108,230,834.72 |
| Other capital reserves | 1,589,456.83 | 1,960,570.15 | -371,113.32 | |
| Total | 16,105,693,787.44 | 4,813,240.22 | 2,647,306.26 | 16,107,859,721.40 |
Other notes including changes in current period and reasons:
Purchase of minority interest constitutes an equity transaction. The capital surplus is adjusted by thedifference between the purchase price and the Company's share of the net assets of the investee. Detailsare as below:
| No. | Investee | Before purchase | Purchase of equity | After purchase | Adjustment of capital surplus |
| 1 | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | 51.00% | 4.50% | 55.50% | 1,310,766.58 |
| 2 | Sichuan Willtest Technology Co., Ltd. | 83.04% | 2.00% | 85.04% | 67,548.36 |
| 3 | Bayannaoer Ruibin New Energy Co., Ltd. | 90.00% | 10.00% | 100.00% | 2,512,953.30 |
| 4 | Tongwei Huijin New Energy Co., Ltd. | 94.75% | 1.28% | 96.03% | 921,971.98 |
| 5 | Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | 55.63% | 0.80% | 56.43% | -7,852.11 |
| 6 | Sichuan Yongxiang Silicon Materials Co., Ltd. | 92.15% | 0.60% | 92.75% | -678,884.00 |
| Total | 4,126,504.11 |
Other decreases in capital surplus (1,960,570.15 yuan), including:
① De-registration of Shaoxing Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that otherequity changes in long-term equity investment (118,750.00 yuan) under equity method carried into capitalsurplus to be converted into gain on investments.
② De-registration of Hefei Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that other equitychanges in long-term equity investment (141,666.67 yuan) under equity method carried into capital surplusto be converted into gain on investments.
③ De-registration of Huangmei Tongwei Jiuding Feed Co., Ltd. (a joint venture) caused that otherequity changes in long-term equity investment (9,275.00 yuan) under equity method carried into capitalsurplus to be converted into gain on investments.
④ Other capital surplus of Haimao Seed Industry Technology Co., Ltd. (an associate) was decreased,the Company accordingly decreased its other equity change in long-term equity investment calculatedunder the equity method and other capital surplus by 2,307.33 yuan according to its shareholding percent.
⑤ Other capital surplus of Bohai Aquaculture Co., Ltd. (an associate) was decreased, the Companyaccordingly decreased its other equity change in long-term equity investment calculated under the equitymethod and other capital surplus by 1,571,789.65 yuan according to its shareholding percent.
⑥ Yongxiang Co., Ltd. (a wholly-owned subsidiary) disposed its interest in Lijiang LONGi SiliconMaterials Co., Ltd. (one of its associates). As a result, the 116,781.50 yuan originally carried into othercapital surplus due to other equity change in long-term equity investment under equity method wasconverted to gain on investment.
56. Treasury shares
"□ Applicable" "√ Not applicable"
57. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current amount | Closing balance | |||||
| Pre-tax current amount | Less: Amount carried into other comprehensive income in prior periods that is converted into current profit and loss | Less: Amount carried into other comprehensive income in prior periods that is converted into retained earnings | Less: Income tax expenses | After-tax income attributable to the parent company | After-tax income attributable to minority shareholders | |||
| I. Other comprehensive income that cannot be reclassified into profit or loss | 6,757,300.85 | 106,497.86 | 106,497.86 | 6,863,798.71 | ||||
| Including: Change in re-measured defined benefit plan | ||||||||
| Other comprehensive income that cannot be converted into profit and loss under equity method | ||||||||
| Change in fair value of other equity investments | 6,757,300.85 | 106,497.86 | 106,497.86 | 6,863,798.71 | ||||
| Change in fair value of the company's own credit risk | ||||||||
| II. Other comprehensive income that will be reclassified into profit or loss | -80,671,522.57 | -8,769,158.76 | -8,499,680.10 | -269,478.66 | -89,171,202.67 | |||
| Including: Other comprehensive income that can be converted into profit and loss under equity method | 259,086.76 | 259,086.76 | 259,086.76 | |||||
| Change in fair value of other debt investments | ||||||||
| Amount of financial asset reclassified into other comprehensive income | ||||||||
| Provision for credit impairment of other debt investments | ||||||||
| Cash flow hedge reserve | ||||||||
| Foreign currency translation | -80,671,522.57 | -9,028,245.52 | -8,758,766.86 | -269,478.66 | -89,430,289.43 | |||
| Total other comprehensive income | -73,914,221.72 | -8,662,660.90 | -8,393,182.24 | -269,478.66 | -82,307,403.96 | |||
58. Special reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Work safety expense | 16,401,063.07 | 67,672,255.14 | 68,155,284.18 | 15,918,034.03 |
| Total | 16,401,063.07 | 67,672,255.14 | 68,155,284.18 | 15,918,034.03 |
59. Surplus reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Statutory surplus reserve | 925,322,362.44 | 489,625,643.13 | 1,414,948,005.57 | |
| Discretionary surplus reserve | ||||
| Reserve fund | ||||
| Enterprise development fund | ||||
| Others | ||||
| Total | 925,322,362.44 | 489,625,643.13 | 1,414,948,005.57 |
60. Undistributed profit
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Item | Current period | Prior period |
| Unadjusted undistributed profit at the end of the prior period | 9,066,353,854.50 | 6,617,152,692.38 |
| Total adjustment of opening undistributed profit (+ for increase and - for decrease) | -155,171,503.88 | |
| Adjusted opening undistributed profit | 8,911,182,350.62 | 6,617,152,692.38 |
| Add: Net current profit attributable to owners of parent company | 8,207,920,822.18 | 3,607,923,359.56 |
| Less: Withdrawal from statutory surplus | 489,625,643.13 | 361,181,041.90 |
| Withdrawal from discretionary surplus reserve | ||
| Withdrawal from general risk reserve | ||
| Common dividend payable | 1,084,873,112.35 | 797,541,155.54 |
| Common dividend converted to share capital | ||
| Closing undistributed profit | 15,544,604,417.32 | 9,066,353,854.50 |
Details on adjustment of opening undistributed profit:
① Retrospective adjustment made under the Accounting Standards for Business Enterprises and relevant new provisionshad an effect of 0 yuan on opening undistributed profit.
② Changes in accounting policies had an effect of 0 yuan on opening undistributed profit.
③ Correction of material accounting errors had an effect of 0 yuan on opening undistributed profit.
④ Change in business combination under common control had an effect of 0 yuan on opening undistributed profit.
⑤ The total effect of other adjustments on opening undistributed profit was 0 yuan.
61. Operating revenue and operating cost
(1). Operating revenue and operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main operating activities | 62,770,969,084.94 | 45,243,144,449.29 | 43,433,643,659.03 | 35,981,319,412.69 |
| Other operating activities | 720,101,435.18 | 674,956,888.88 | 766,626,675.20 | 667,085,651.69 |
| Total | 63,491,070,520.12 | 45,918,101,338.17 | 44,200,270,334.23 | 36,648,405,064.38 |
(2). Revenue from contracts with customers
"□ Applicable" "√ Not applicable"Note on revenue from contracts with customers"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
Other notes:
None.
62. Tax and surcharge
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Urban construction and maintenance tax | 70,012,995.86 | 5,811,390.46 |
| Education surcharge | 30,168,484.84 | 2,586,236.78 |
| Property tax | 58,097,775.48 | 44,632,018.07 |
| Land use tax | 35,038,174.67 | 29,384,134.86 |
| Stamp duty | 46,710,678.44 | 28,693,509.43 |
| Local education surcharge | 20,103,271.22 | 1,748,269.18 |
| Others | 15,823,859.87 | 11,190,097.35 |
| Total | 275,955,240.38 | 124,045,656.13 |
63. Sales expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Employee benefits | 528,231,438.62 | 481,340,424.63 |
| Business travel cost | 99,407,130.03 | 93,026,260.91 |
| Advertising costs | 80,254,400.11 | 44,478,775.18 |
| Marketing and promotion costs | 111,456,577.28 | 48,479,006.70 |
| After-sale costs | 34,614,317.63 | 25,354,463.26 |
| Others | 65,006,587.06 | 85,351,709.50 |
| Total | 918,970,450.73 | 778,030,640.18 |
64. Management expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Employee benefits | 2,064,751,080.97 | 814,656,806.60 |
| Depreciation expense | 204,677,855.44 | 193,923,343.42 |
| Repair expense | 72,430,860.25 | 304,634,465.83 |
| Amortization of intangible assets | 75,297,475.40 | 55,901,116.03 |
| Work safety expense | 69,318,823.96 | 47,383,065.35 |
| Consulting expense (including advisory expense) | 66,490,767.62 | 34,706,761.03 |
| Business travel cost | 41,987,160.73 | 32,384,792.97 |
| Entertainment expense | 36,304,180.65 | 28,870,562.00 |
| Poverty alleviation expense | 20,890,496.81 | 25,607,452.08 |
| Property management expense | 35,361,538.27 | 25,587,370.41 |
| Property insurance expense | 37,506,718.29 | 23,769,131.07 |
| Utilities expense | 19,559,528.99 | 15,295,126.92 |
| Quality inspection expense | 20,846,288.55 | 14,762,058.00 |
| Lease expense | 15,681,362.19 | 20,025,522.43 |
| Others | 166,545,768.59 | 171,070,529.25 |
| Total | 2,947,649,906.71 | 1,808,578,103.39 |
65. R&D costs
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Labor cost | 353,443,231.22 | 265,265,919.94 |
| Costs of materials | 1,169,498,684.84 | 467,088,270.02 |
| Depreciation expense | 144,323,781.86 | 107,915,190.95 |
| Fuel and power | 293,967,137.78 | 162,999,918.05 |
| Other expense | 74,614,209.73 | 32,062,135.72 |
| Total | 2,035,847,045.43 | 1,035,331,434.68 |
66. Financial expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Interest expense | 469,390,027.14 | 521,590,309.29 |
| Less: Fiscal interest subsidy | -12,516,147.44 | -12,760,919.51 |
| Less: Interest income | -111,780,056.77 | -57,540,093.05 |
| Add: Exchange loss | 107,665,859.41 | 98,373,973.54 |
| Less: Exchange gain | -50,678,301.83 | -59,002,987.44 |
| Add: Amortization of unrecognized financing costs | 223,712,325.17 | 173,467,244.18 |
| Add: Financial institution fees | 11,366,982.70 | 12,199,001.78 |
| Total | 637,160,688.38 | 676,326,528.79 |
67. Other income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Government grants relating to everyday operating activities | 359,499,729.72 | 303,549,939.09 |
| Total | 359,499,729.72 | 303,549,939.09 |
Other notes:
Government grants relating to everyday operating activities are detailed below:
| Item | Current amount | Prior amount | Relating to asset/income |
| Amount relating to asset that is converted from deferred income | 168,293,435.91 | 85,331,920.28 | Relating to asset |
| Other amounts relating to income | 78,252,977.36 | 77,385,304.96 | Relating to income |
| Government supports | 20,880,000.00 | 16,212,962.86 | Relating to income |
| Tax refund | 20,154,724.40 | 20,861,993.94 | Relating to income |
| Subsidy for 1GW project and R&D costs | 17,000,000.00 | Relating to income | |
| Industrial subsidy | 14,855,098.39 | 83,377,737.58 | Relating to income |
| Special reward funds | 14,398,300.00 | Relating to income | |
| Amount relating to income that is converted from deferred income | 1,479,897.53 | 1,294,384.42 | Relating to income |
| Reward for innovation capability | 9,000,000.00 | Relating to income | |
| Subsidy for work in place of training | 7,147,000.00 | Relating to income | |
| Fiscal reward and subsidy for financial bonds | 5,000,000.00 | Relating to income | |
| Subsidy for employment stabilization | 2,977,131.25 | 9,085,635.05 | Relating to income |
| Other amounts relating to asset | 61,164.88 | Relating to income | |
| Reward for R&D costs (2.3 GW project) | 5,000,000.00 | Relating to income | |
| Reward for fixed asset investment | 5,000,000.00 | Relating to income | |
| Total | 359,499,729.72 | 303,549,939.09 |
68. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Gain on long-term equity investment under equity method | -14,159,521.52 | 22,506,526.78 |
| Gain on disposal of long-term equity investment | 386,473.17 | 1,536,050,665.48 |
| Gain on disposal of held-for-trading financial assets | 497,846.62 | |
| Gain on other non-current financial assets | -12,271.90 | |
| Discount interest on receivable financing | -15,695,856.14 | |
| Gain on wealth management products purchased from banks | 23,368,421.89 | 1,298,783.09 |
| Gain on forward exchange settlement | 48,151,494.55 | 9,522,042.15 |
| Total | 42,536,586.67 | 1,569,378,017.50 |
Other notes:
(1) Gain on long-term equity investment under equity method
| Investee | Current amount | Prior amount |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 3,881,464.81 | -3,407,482.28 |
| Bohai Aquaculture Co., Ltd. | 1,030,906.22 | |
| Anhui Tech-bank Biotechnology Co., Ltd. | 402,678.61 | |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | -93,859.57 | -390,230.55 |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | -196,132.16 | 374,442.93 |
| Anhui Tech-bank Feed Technology Co., Ltd. | -643,982.62 | |
| Maoming Tongwei Jiuding Feed Co., Ltd. | -655,071.22 | 674,274.34 |
| Hefei Tongwei Jiuding Feed Co., Ltd. | -1,085,451.82 | -341,236.30 |
| Suzhou Taiyangjing New Energy Co., Ltd. | -3,339,026.67 | -200,366.01 |
| Haimao Seed Industry Technology Co., Ltd. | -13,461,047.10 | |
| Jiangsu Yanhai Tongwei Fuyun New Energy Co., Ltd. | -31,396.52 | |
| Lijiang LONGi Silicon Materials Co., Ltd. | 52,989,624.97 | |
| Zhongwei New Energy (Chengdu)Co., Ltd. | -27,161,103.80 | |
| Total | -14,159,521.52 | 22,506,526.78 |
(2) Gain on disposal of long-term equity investment
| Investee | Current amount | Prior amount |
| Hefei Tongwei Jiuding Feed Co., Ltd. | 141,666.67 | |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 118,750.00 | |
| Lijiang LONGi Silicon Materials Co., Ltd. | 116,781.50 | |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 9,275.00 |
| Chengdu Tongwei Industry 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 | |
| Total | 386,473.17 | 1,536,050,665.48 |
(3) Gain on disposal of held-for-trading financial assets
| Investee | Current amount | Prior amount |
| Disposal of the equity in Chengdu Tongwei Industrial Co., Ltd. (2% shareholding) | 497,846.62 | |
| Total | 497,846.62 |
(4) Gain on other non-current financial assets
| Investee | Current amount | Prior amount |
| Sichuan Electricity Trading Center Co., Ltd. | -12,271.90 | |
| Total | -12,271.90 |
69. Gain on hedge of net exposure
"□ Applicable" "√ Not applicable"
70. Fair value gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Source of gains | Current amount | Prior amount |
| Held-for-trading financial assets | 5,754,600.46 | 4,863,068.12 |
| Including: Gain on fair value from derivate financial instruments | 5,754,600.46 | 4,863,068.12 |
| Total | 5,754,600.46 | 4,863,068.12 |
71. Credit impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Bad debt loss from notes receivable | ||
| Bad debt loss from accounts receivable | -92,018,130.84 | -19,644,098.38 |
| Bad debt loss from other receivables | -31,637,916.41 | -5,595,766.05 |
| Impairment loss from debt investments | ||
| Impairment loss from other debt investments | ||
| Bad debt loss from long-term receivables | ||
| Impairment loss from contract assets | ||
| Total | -123,656,047.25 | -25,239,864.43 |
72. Asset impairment loss
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| I. Bad debt loss | ||
| II. Obsolete inventory loss and impairment loss on fulfillment costs | -43,333,695.97 | -27,596,977.95 |
| III. Impairment loss from long-term equity investments | ||
| IV. Impairment loss from investment properties | ||
| V. Impairment loss from fixed assets | -43,375,936.90 | -221,877,025.60 |
| VI. Impairment loss from construction materials | ||
| VII. Impairment loss from construction in progress | ||
| VIII. Impairment loss from productive biological assets |
| IX. Impairment loss from gas and oil assets | ||
| X. Impairment loss from intangible assets | ||
| XI. Goodwill impairment loss | -28,774,072.31 | |
| XII. Others | ||
| XIII. Impairment loss from contract assets | -13,637,378.90 | -18,291,935.88 |
| Total | -129,121,084.08 | -267,765,939.43 |
73. Gain on asset disposal
"√Applicable" "□Not applicable "
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Gain on disposal of fixed assets | -99,013,550.58 | -1,164,677.07 |
| Gain on disposal of intangible assets | 15,823,037.54 | |
| Gain on disposal of right-of-use assets | 5,007,050.34 | |
| Gain on disposal of construction in progress | -47,169.81 | |
| Gain on disposal of productive biological assets | 15,847.83 | |
| Total | -78,230,632.51 | -1,148,829.24 |
74. Non-operating revenue
Non-operating revenue"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount | Amount carried into current non-recurring gain or loss |
| Payables that cannot be paid | 11,220,621.89 | 24,527,711.39 | 11,220,621.89 |
| Income relating to damages for breach | 7,891,108.73 | 9,364,996.71 | 7,891,108.73 |
| Gain on scrap of non-current assets | 257,617.59 | 256,277.03 | 257,617.59 |
| Others | 570,562.18 | 2,846,642.17 | 570,562.18 |
| Total | 19,939,910.39 | 36,995,627.30 | 19,939,910.39 |
Grants carried into current gain and loss"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
75. Non-operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount | Amount carried into current non-recurring gain or loss |
| Donations | 2,205,539.82 | 4,119,119.08 | 2,205,539.82 |
| Loss from scrap of non-current assets | 451,946,658.93 | 400,228,648.84 | 451,946,658.93 |
| Fine | 2,118,489.73 | 2,038,058.10 | 2,118,489.73 |
| Late payment interest | 916,935.53 | 486,097.27 | 916,935.53 |
| Unusual loss | 33,337.22 | 66,502,545.02 | 33,337.22 |
| Damages | 4,856,884.84 | 1,704,252.25 | 4,856,884.84 |
| Others | 2,289,016.14 | 1,313,238.91 | 2,289,016.14 |
| Total | 464,366,862.21 | 476,391,959.47 | 464,366,862.21 |
76. Income tax expense
(1). Income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Current income tax | 1,568,558,449.66 | 578,250,527.36 |
| Deferred income tax | 78,963,931.01 | -19,196,352.33 |
| Total | 1,647,522,380.67 | 559,054,175.03 |
(2). Adjustment of accounting profit and income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount |
| Total profit | 10,389,742,051.51 |
| Income tax expense under legal/applicable tax rate | 2,597,435,512.88 |
| Effect of different tax rates applied to subsidiaries | -953,207,529.92 |
| Effect of periods prior to adjustment | -13,426,066.94 |
| Effect of non-taxable income | -85,827,481.86 |
| Effect of nondeductible cost, expense and loss | 26,514,218.41 |
| Effect of use of deductible loss from prior unrecognized deferred tax assets | -10,121,522.92 |
| Effect of deductible temporary difference or deductible loss from deferred tax assets not recognized in current period | 235,725,173.67 |
| Effect of recognition of deferred income tax in current period for the deductible loss from deferred tax assets not recognized in prior period | -3,715,303.31 |
| Effect of recognition of deferred income tax in current period for the deductible temporary difference from deferred tax assets not recognized in prior period | -2,171,378.23 |
| Effect of additional deduction of R&D cost | -118,989,277.71 |
| Effect of additional deduction of salaries for settlement of disabled employees | -476,465.31 |
| Tax exemption and deduction for investment into energy saving equipment | -758,631.86 |
| Other income tax deductions | -126,124.71 |
| Deferred income tax expense impacted by changes in tax rates | 1,166,677.27 |
| Effect of creation of provision for non-core goodwill impairment | -9,545,475.57 |
| Effect of scrap of fixed assets leading to decrease in impairment loss, to the extent that increase in impairment loss has been achieved through deprecation of increase in income under tax laws in prior years | -14,953,943.22 |
| Income tax expense | 1,647,522,380.67 |
Other notes:
"□ Applicable" "√ Not applicable"
77. Other comprehensive income
"√ Applicable" "□ Not applicable"Refer to notes for details
78. Cash flow statement
(1). Other cash received relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Government grants | 505,800,189.28 | 554,261,547.01 |
| Insurance claims | 304,741,143.61 | 115,076,534.20 |
| Bonds and deposits | 216,063,316.45 | 35,682,905.20 |
| Interest on bank deposits | 111,381,985.30 | 34,466,767.72 |
| Reserve and current accounts | 14,433,073.85 | |
| Damages for breach | 5,691,790.25 | 8,338,615.45 |
| Rent income | 13,703,889.84 | 24,886,231.48 |
| Others | 2,661,344.67 | 3,058,661.49 |
| Total | 1,174,476,733.25 | 775,771,262.55 |
(2). Other cash paid relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Other cash paid relating to operating activities | 851,207,059.21 | 661,342,975.25 |
| Reserve and current accounts | 27,699,083.31 | 53,949,024.73 |
| Prepaid distribution from PV powerplants in poverty alleviation program | 12,432,390.37 | 3,218,902.14 |
| Bonds and deposits | 136,890,264.51 | 10,029,479.45 |
| Total | 1,028,228,797.40 | 728,540,381.57 |
(3). Other cash received relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Construction bid bonds | 461,244,114.22 | 276,742,512.51 |
| Construction account funds unlocked | 6,400,835.68 | |
| Borrowings returned through disposal of Chengdu Tongwei Industry Co., Ltd. | 136,265,300.00 | |
| Equity transfer price | 89,600,000.00 | |
| Total | 467,644,949.90 | 502,607,812.51 |
(4). Other cash paid relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Prepaid equity purchase price | 3,082,000.00 | |
| Refunded construction bid bonds | 506,985,472.09 | 164,247,398.46 |
| Total | 506,985,472.09 | 167,329,398.46 |
(5). Other cash received relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Net reduction in note bonds | 167,104,080.27 | 861,743,891.85 |
| Funds coordinated from joint ventures | 52,701,735.98 | 221,176,251.72 |
| Interest income on bond deposits | 400,362.32 | 11,125,487.43 |
| Debt investments from minority shareholders of subsidiaries | 122,975,000.00 | |
| Total | 343,181,178.57 | 1,094,045,631.00 |
(6). Other cash paid relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Financial lease expense | 2,028,127,474.39 | 854,903,139.02 |
| Notes and credit bonds | 7,503,287.33 | 384,773,935.90 |
| Funds coordinated to joint ventures | 52,701,735.99 | 235,893,051.73 |
| Principal repayment for interest-free debts | 185,087,917.55 | 185,087,917.55 |
| Purchase of minority shareholding | 1,534,258.73 | 29,870,084.86 |
| Financial lease risk reserve | 22,549,598.12 | 11,247,063.94 |
| Financing charges | 9,179,990.00 | 5,793,587.60 |
| Investment withdrawn by minority shareholders | 1,689,178.73 | 2,450,000.00 |
| Others | 1,743,692.50 | |
| Total | 2,308,373,440.84 | 1,711,762,473.10 |
Note: The lease expense paid in current period includes the lease expense relating to leaseback contractsof 1,341,397,284.46 yuan when the leaseback does not qualify as a sale, excluding expenses relating toshort-term leases and low-value asset leases.
79. Additional information on cash flow statement
(1). Additional information on cash flow statement
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Additional information | Current amount | Prior amount |
| 1. Net profit adjusted as cash flow from operating activities | ||
| Net income | 8,742,219,670.84 | 3,714,738,791.09 |
| Add: provision for asset impairment | 129,121,084.08 | 267,765,939.43 |
| Credit impairment loss | 123,656,047.25 | 25,239,864.43 |
| Deprecation of fixed assets, depletion of oil and gas assets and depreciation of productive biological assets | 2,620,056,128.68 | 2,357,189,141.57 |
| Amortization of right-of-use assets | 436,570,018.21 | |
| Amortization of intangible assets | 92,013,927.02 | 62,710,902.43 |
| Amortization of long-term prepaid expenses | 103,368,124.71 | 59,146,836.63 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) | 78,230,632.51 | 1,148,829.24 |
| Loss from scrap of fixed assets (“-” for gain) | 451,689,041.34 | 399,972,371.81 |
| Loss from change in fair value (“-” for gain) | -5,754,600.46 | -4,863,068.12 |
| Financial expense (“-” for gain) | 704,955,202.62 | 726,479,351.22 |
| Investment loss (“-” for gain) | -42,536,586.67 | -1,569,378,017.50 |
| Decrease in deferred tax assets (“-” for increase) | -171,807,171.48 | -188,941,716.35 |
| Increase in deferred tax liabilities (“-” for decrease) | 250,771,102.49 | 169,745,364.02 |
| Decrease in inventories (“-” for increase) | -2,796,868,142.01 | -384,993,632.73 |
| Decrease in operating receivables (“-” for increase) | -7,394,759,888.49 | -6,669,843,200.17 |
| Increase in operating receivables (“-” for decrease) | 4,297,349,286.08 | 4,058,810,174.94 |
| Others | ||
| Net cash flows generated from operating activities | 7,618,273,876.72 | 3,024,927,931.94 |
| 2. Significant investing and financing activities not related to cash receipt and payment: | ||
| Debt for equity swap | 4,224,357,901.63 | |
| Convertible corporate bonds due within one year | ||
| Fixed assets acquired by financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 2,903,078,719.63 | 5,986,042,619.46 |
| Less: Opening balance of cash | 5,986,042,619.46 | 1,942,739,577.25 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -3,082,963,899.83 | 4,043,303,042.21 |
(2). Net cash paid by subsidiaries in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Amount | |
| Cash or cash equivalent paid in current period for current business combination | 1,284,677,399.74 |
| Including: Ningbo Tech-bank Feed Technology Co., Ltd. | 941,052,018.29 |
| Qingdao Qihao Biotechnology Co., Ltd. | 76,369,224.71 |
| Ningbo Tech-bank Biotechnology Co., Ltd. | 18,340,900.00 |
| Yancheng Tech-bank Feed Technology Co., Ltd. | 61,200,000.00 |
| Nanning Aigefei Feed Co., Ltd. | 29,000,000.00 |
| Bengbu Tech-bank Feed Technology Co., Ltd. | 2,800,000.00 |
| Hubei Tech-bank Feed Co., Ltd. | 4,400,000.00 |
| Dongying Tech-bank Feed Technology Co., Ltd. | 10,600,000.00 |
| Vietnam Tech-bank Feed Co., Ltd. | 28,754,607.00 |
| Zhongwei New Energy (Chengdu)Co., Ltd. | 112,160,649.74 |
| Less: Cash and cash equivalent held by subsidiary on acquisition date | 25,292,438.27 |
| Including: Ningbo Tech-bank Feed Technology Co., Ltd. | 925,512.67 |
| Qingdao Qihao Biotechnology Co., Ltd. | 362,975.76 |
| Ningbo Tech-bank Biotechnology Co., Ltd. | 257,127.57 |
| Yancheng Tech-bank Feed Technology Co., Ltd. | 134,579.05 |
| Nanning Aigefei Feed Co., Ltd. | 17,438.94 |
| Bengbu Tech-bank Feed Technology Co., Ltd. | - |
| Hubei Tech-bank Feed Co., Ltd. | 120,120.43 |
| Dongying Tech-bank Feed Technology Co., Ltd. | 183,135.00 |
| Vietnam Tech-bank Feed Co., Ltd. | 11,159,459.99 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | 12,132,088.86 |
| Add: Cash or cash equivalent paid in current period for prior business combination | |
| Net cash paid by subsidiary | 1,259,384,961.47 |
(3). Net cash received in current period for disposal of subsidiary
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Amount | |
| Cash or cash equivalent received in current period for current subsidiary disposal | 1,423,800.00 |
| Including: Jianping Tongwei New Energy Co., Ltd. | 1,423,800.00 |
| Less: Cash and cash equivalent held by subsidiary on the day when the Company loses control | 198,041.71 |
| Including: Jianping Tongwei New Energy Co., Ltd. | 198,041.71 |
| Add: Cash or cash equivalent received in current period for prior subsidiary disposal | |
| Net cash received for subsidiary disposal | 1,225,758.29 |
(4). Components of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| I. Cash | 2,903,078,719.63 | 5,986,042,619.46 |
| Including: Cash on hand | 109,314.50 | 126,156.42 |
| Bank deposits available for payment | 2,872,458,634.04 | 5,956,397,774.28 |
| Other cash available for payment | 30,510,771.09 | 29,518,688.76 |
| Central bank deposits available for payment | ||
| Interbank deposits |
| Interbank borrowings | ||
| II. Cash equivalents | ||
| Including: bond investments due within three months | ||
| III. Closing cash and cash equivalents | 2,903,078,719.63 | 5,986,042,619.46 |
| Including: restricted cash and cash equivalents available for use by parent company or subsidiaries | 98,852,162.75 | 278,125,622.57 |
Other notes:
"√ Applicable" "□ Not applicable"The “cash received from sales of goods and rendering of services” in cash flow statement excludes thecash from sale of goods and rendering of services (13,729,434,205.16) that was not received due toendorsement of notes receivable.
80. Notes to statement of owner's equity
Note on “other” items and adjusted amounts for adjustment of closing balance of prior period:
"□ Applicable" "√ Not applicable"
81. Assets with restricted ownership or use right
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing carrying value | Restriction reasons |
| Cash at bank and on hand | 98,852,162.75 | Provide guarantees for financing and operations of the Company |
| Fixed assets | 8,415,955,174.84 | Provide securities for financing of the Company and financial lease |
| Intangible assets | 425,887,607.93 | Provide collaterals for financing of the Company |
| Receivables financing | 10,084,007,955.24 | Provides pledges for the bank acceptance bills issued by the Company |
| Accounts receivable | 1,227,885,049.80 | Provide collaterals for financing of the Company |
| Contract assets | 660,365,599.48 | Provide collaterals for financing of the Company |
| Right-of-use assets | 1,849,680,205.51 | Provide collaterals for financing of the Company |
| Investment properties | 75,396,248.55 | Provide collaterals for financing of the Company |
| Total | 22,838,030,004.10 | / |
82. Foreign currency monetary items
(1). Foreign currency monetary items
"√ Applicable" "□ Not applicable"
Unit: Yuan
| Item | Closing foreign currency balance | Exchange rates for translation | Closing converted CNY balance |
| Cash at bank and on hand | |||
| Including: USD | 38,672,822.04 | 6.3757 | 246,567,491.49 |
| EUR | 3,743,834.44 | 7.2197 | 27,029,361.50 |
| HKD | 1,039,018.71 | 0.8176 | 849,502.35 |
| VND | 522,278,170,797.22 | 0.0002798 | 146,132,654.79 |
| BDT | 5,816,579.94 | 0.0742539 | 431,903.94 |
| SGD | 70,437.72 | 4.7179 | 332,318.12 |
| IDR | 10,388,793,322.98 | 0.0004468 | 4,641,998.81 |
| JPY | 6.00 | 0.055415 | 0.33 |
| Notes receivable | |||
| Including: USD | 206,143,808.56 | 6.3757 | 1,314,311,080.25 |
| EUR | 8,672,742.88 | 7.2197 | 62,614,601.77 |
| Accounts receivable | - | - | |
| Including: USD | 21,135,698.69 | 6.3757 | 134,754,874.10 |
| EUR | |||
| HKD | |||
| VND | 384,957,878,796.70 | 0.0002798 | 107,710,654.39 |
| BDT | 27,069,228.70 | 0.0742539 | 2,009,996.71 |
| IDR | 137,063,623,264.62 | 0.0004468 | 61,243,799.49 |
| Other receivables | |||
| Including: USD | 58,364,963.74 | 6.3757 | 372,117,499.32 |
| VND | 4,377,245,581.07 | 0.0002798 | 1,224,746.95 |
| IDR | 1,555,662,747.35 | 0.0004468 | 695,112.93 |
| EUR | 7,433,425.00 | 7.2197 | 53,667,098.47 |
| Short-term borrowings | |||
| Including: VND | 409,070,776,096.28 | 0.0002798 | 114,457,407.98 |
| IDR | 6,954,861,500.00 | 0.0004468 | 3,107,623.55 |
| USD | 2,616,109.80 | 6.3757 | 16,679,531.25 |
| Notes payable | |||
| Including: USD | 1,950,897.45 | 6.3757 | 12,438,336.87 |
| EUR | 8,179,250.00 | 7.2197 | 59,051,731.23 |
| Accounts payable | |||
| Including: USD | 2,042,944.32 | 6.3757 | 13,025,200.10 |
| VND | 156,244,312,392.78 | 0.0002798 | 43,716,931.28 |
| BDT | 158,582,985.07 | 0.0742539 | 11,775,410.44 |
| IDR | 87,941,489,493.32 | 0.0004468 | 39,292,257.51 |
| EUR | 221,300.00 | 7.2197 | 1,597,719.61 |
| Employee benefits payable | |||
| Including: VND | 8,794,788,783.81 | 0.0002798 | 2,460,769.10 |
| BDT | 11,287,078.82 | 0.0742539 | 838,110.00 |
| Taxes payable | |||
| Including: VND | 12,484,673,869.15 | 0.0002798 | 3,493,193.59 |
| BDT | 15,211,585.42 | 0.0742539 | 1,129,520.05 |
| IDR | 52,929,614.29 | 0.0004468 | 23,650.41 |
| Other payable | |||
| Including: USD | 60,575,544.88 | 6.3757 | 386,211,501.50 |
| VND | 10,495,272,647.10 | 0.0002798 | 2,936,562.02 |
| BDT | 2,687,020.17 | 0.0742539 | 199,521.82 |
| IDR | 3,165,217,414.00 | 0.0004468 | 1,414,306.26 |
| EUR | 7,786,300.00 | 7.2197 | 56,214,750.11 |
| Non-current liabilities due within one year | |||
| Including: USD | 2,054,780.86 | 6.3757 | 13,100,666.33 |
| Long-term borrowings | - | - | |
| Including: USD | 57,449,225.06 | 6.3757 | 366,279,024.22 |
| EUR | |||
| HKD |
(2). Note on overseas operating entities, including for important overseas operating entities, theprincipal business locations overseas, reporting currencies and basis, as well as reasons forchanges in reporting currencies"√ Applicable" "□ Not applicable"
| Entity name | Principal business location | Reporting currency | Basis for reporting currency |
| Tongwei Holdings PTE. Ltd. | Singapore | USD | Currency for main operating activities |
| Tongwei Feed Mill Bangladesh Ltd. | Bangladesh | BDT | Local main currency |
| Vietnam Tongwei Co., Ltd. | Vietnam | VND | Local main currency |
| Haiyang Tongwei Co., Ltd. | Vietnam | VND | Local main currency |
| Heping Tongwei Co., Ltd. | Vietnam | VND | Local main currency |
| PT. Tongwei Indonesia | Indonesia | IDR | Local main currency |
| Qianjiang Tongwei Co., Ltd. | Vietnam | VND | Local main currency |
| Tongta Tongwei Co., Ltd. | Vietnam | VND | Local main currency |
| Vietnam Tech-bank Co., Ltd. | Vietnam | VND | Local main currency |
| Tongwei Solar Hong Kong Co., Ltd. | Hong Kong | USD | Currency for main operating activities |
83. Hedge
"□ Applicable" "√ Not applicable"
84. Government grants
(1). Overview of government grants
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Type | Amount | Presentation item | Amount carried into current profit and loss |
| Grants related to assets | 1,073,057,911.07 | Deferred income | 168,293,435.91 |
| Grants related to income | 3,356,788.87 | Deferred income | 1,479,897.53 |
| Grants related to income | 189,726,396.28 | Other income | 189,726,396.28 |
| Grants related to income | 702,886,480.85 | Operating cost | 702,886,480.85 |
| Grants related to income | 12,516,147.44 | Financial expense | 12,516,147.44 |
| Total | 1,981,543,724.51 | Total | 1,074,902,358.01 |
(2). Return of grants
"□ Applicable" "√ Not applicable"Other notes:
Tongwei Solar (Anhui) Co., Ltd. was not eligible for the filing condition “2018 sales revenue mustbe not lower than 5 million yuan” set forth in the Note on Starting to Apply for 2019 Grant relating toTechnological Innovations (Wan Ke Zi Mi (2019) No.410)); as a result, 5,726,000.00 yuan of grant wasreturned in current period.
85. Others
"□ Applicable" "√ Not applicable"
VIII. Changes in the scope of consolidation
1. Business combinations under different control
"√ Applicable" "□ Not applicable"
(1). Current business combinations under different control
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Acquiree | Acquisition date | Acquisition cost | Shareholding percent acquired (%) | Acquisition method | Purchase date | Basis for determining acquisition date | Acquiree's income from purchase date to period end | Acquiree's net income from purchase date to period end |
| Ningbo Tech-bank Feed Technology Co., Ltd. | 2021-10-15 | 941,052,018.29 | 100.00 | Purchase | 2021-10-01 | Date to obtain control | 140,067,677.13 | -9,956,490.94 |
| Qingdao Qihao Biotechnology Co., Ltd. | 2021-09-30 | 76,369,224.71 | 100.00 | Purchase | 2021-10-01 | Date to obtain control | 26,490,310.26 | -5,149,356.12 |
| Ningbo Tech-bank Biotechnology Co., Ltd. | 2021-10-13 | 18,340,900.00 | 100.00 | Purchase | 2021-10-01 | Date to obtain control | 1,201,354.85 | 102,058.72 |
| Yancheng Tech-bank Feed Technology Co., Ltd. | 2021-10-15 | 61,200,000.00 | 51.00 | Purchase | 2021-10-01 | Date to obtain control | 125,012,574.93 | -4,440,121.52 |
| Nanning Aigefei Feed Co., Ltd. | 2021-10-15 | 29,000,000.00 | 51.00 | Purchase | 2021-10-01 | Date to obtain control | 78,150,558.81 | -1,999,670.52 |
| Bengbu Tech-bank Feed Technology Co., Ltd. | 2021-10-15 | 2,800,000.00 | 51.00 | Purchase | 2021-10-01 | Date to obtain control | 1,132,505,726.56 | -22,006,718.53 |
| Hubei Tech-bank Feed Co., Ltd. | 2021-10-15 | 4,400,000.00 | 51.00 | Purchase | 2021-10-01 | Date to obtain control | 36,087,270.27 | -2,329,941.00 |
| Dongying Tech-bank Feed Technology Co., Ltd. | 2021-10-26 | 10,600,000.00 | 51.00 | Purchase | 2021-10-01 | Date to obtain control | - | -346,869.13 |
| Vietnam Tech-bank Feed Co., Ltd. | 2021-11-18 | 44,237,857.00 | 65.00 | Purchase | 2021-10-01 | Date to obtain control | 32,321,826.11 | 201,182.91 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | 2021-01-01 | 166,798,274.97 | 100.00 | Purchase | 2021-01-01 | Date to obtain control | 62,697,672.00 | -85,610,069.44 |
Other notes:
By purchase date, relevant agreements for business combination had been approved and signed byrelevant parties, with necessary procedures for title transfer completed. The Company had sent directorsand managers to the acquirees and paid much of the combination prices, obtained control of financial andoperating policies of acquirees and entitlement to respective benefits and assumed respective risks.
(2). Business combination costs and goodwill
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Business combination costs | Ningbo Feed | Qihao Biotechnology | Ningbo Biotechnology | Yancheng Tech-bank | Nanning Aigefei | Bengbu Tech-bank | Hubei Tech-bank | Dongying Tech-bank | Vietnam Tech-bank | Zhongwei New Energy |
| --Cash | 941,052,018.29 | 76,369,224.71 | 18,340,900.00 | 61,200,000.00 | 29,000,000.00 | 2,800,000.00 | 4,400,000.00 | 10,600,000.00 | 44,237,857.00 | 112,160,649.74 |
| --Fair value of non-cash assets | ||||||||||
| --Fair value of debts issued or assumed | ||||||||||
| --Fair value of equity securities issued | ||||||||||
| --Fair value of contingent consideration | ||||||||||
| --Fair value of pre-purchase shares on purchase date | 54,637,625.23 | |||||||||
| --Others | ||||||||||
| Total costs | 941,052,018.29 | 76,369,224.71 | 18,340,900.00 | 61,200,000.00 | 29,000,000.00 | 2,800,000.00 | 4,400,000.00 | 10,600,000.00 | 44,237,857.00 | 166,798,274.97 |
| Less: Share of the acquiree's net identifiable assets | 820,175,361.48 | 70,963,026.41 | 16,213,275.45 | 55,802,242.65 | 28,141,910.89 | 2,100,970.50 | 4,236,514.11 | 10,282,422.37 | 40,555,644.09 | 166,798,274.97 |
| Amount that the goodwill/combination cost is smaller than the share of the acquiree's net identifiable assets | 120,876,656.81 | 5,406,198.30 | 2,127,624.55 | 5,397,757.35 | 858,089.11 | 699,029.50 | 163,485.89 | 317,577.63 | 3,682,212.91 | - |
Note on determination of fair value of combination costs, contingent consideration and its changes:
None.
Main reasons for generation of large goodwill:
None.Other notes:
1. Vietnam Tech-bank means Vietnam Tech-bank Feed Co., Ltd., and Zhongwei New Energy means Zhongwei New Energy (Chengdu) Co., Ltd.
2. Among the combination costs paid in cash, except for the 28,754,607.00 yuan (accounts for 65.00% of the total costs) that has been paid and the 15,483,250.00yuan that has not been paid for combination of Vietnam Tech-bank, all other cash costs for combination of other entities have been paid completely.
(3). Acquiree's net identifiable assets and liabilities on acquisition date
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Ningbo Tech-bank Feed Technology Co., Ltd. | Qingdao Qihao Biotechnology Co., Ltd. | |||
| Fair value on acquisition date | Carrying value on acquisition date | Fair value on acquisition date | Carrying value on acquisition date | |
| Assets: | 1,020,441,913.57 | 648,808,839.38 | 174,077,697.25 | 138,036,375.22 |
| Cash at bank and on hand | 925,512.67 | 925,512.67 | 362,975.76 | 362,975.76 |
| Accounts receivable | 474,012,659.44 | 474,012,659.44 | 3,722,622.63 | 3,722,622.63 |
| Inventories | 46,359,164.38 | 46,326,453.38 | 19,362,518.82 | 19,362,518.82 |
| Fixed assets | 148,821,580.00 | 96,513,122.64 | 107,244,449.54 | 90,923,826.98 |
| Intangible assets | 347,920,985.41 | 27,895,635.79 | 34,456,124.58 | 14,735,425.11 |
| Construction in progress | 2,172,845.00 | 2,172,845.00 | ||
| Other current assets | 726,560.22 | 726,560.22 | ||
| Deferred expenses | 229,166.67 | 962,610.46 | 92,925.03 | 92,925.03 |
| Deferred tax assets | 8,109,520.67 | 8,109,520.67 | ||
| Liabilities: | 200,266,552.09 | 107,358,283.54 | 103,114,670.84 | 97,708,472.54 |
| Borrowings | ||||
| Accounts payable | 101,819,991.92 | 101,819,991.92 | 95,759,820.88 | 95,759,820.88 |
| Deferred tax liability | 92,908,268.55 | 5,406,198.30 | ||
| Employee benefits payable | 4,331,858.02 | 4,331,858.02 | 1,753,907.07 | 1,753,907.07 |
| Taxes payable | 1,206,433.60 | 1,206,433.60 | 194,744.59 | 194,744.59 |
| Net assets | 820,175,361.48 | 541,450,555.84 | 70,963,026.41 | 40,327,902.68 |
| Less: Minority interest | 0.00 | 0.00 | 0.00 | 0.00 |
| Net assets acquired | 820,175,361.48 | 541,450,555.84 | 70,963,026.41 | 40,327,902.68 |
| Vietnam Tech-bank Feed Co., Ltd. | Zhongwei New Energy (Chengdu) Co., Ltd. | |||
| Fair value on acquisition date | Carrying value on acquisition date | Fair value on acquisition date | Carrying value on acquisition date | |
| Assets: | 79,400,682.55 | 51,075,967.92 | 353,734,615.18 | 353,734,615.18 |
| Cash at bank and on hand | 11,159,459.99 | 11,159,459.99 | 19,928,377.80 | 19,928,377.80 |
| Accounts receivable | 4,367,647.26 | 4,367,647.26 | 14,257,304.95 | 14,257,304.95 |
| Inventories | 9,428,454.37 | 12,289,420.14 | 11,445,045.07 | 11,445,045.07 |
| Fixed assets | 21,974,058.21 | 18,339,826.56 | 257,087,539.27 | 257,087,539.27 |
| Intangible assets | 32,253,440.39 | 4,701,991.64 | 19,661,601.68 | 19,661,601.68 |
| Other current assets | 217,622.33 | 217,622.33 | 18,585,263.17 | 18,585,263.17 |
| R&D costs | 12,372,703.24 | 12,372,703.24 | ||
| Other non-current assets | 396,780.00 | 396,780.00 | ||
| Liabilities: | 17,007,383.96 | 11,342,441.03 | 186,936,340.21 | 186,936,340.21 |
| Borrowings | 2,265,535.11 | 2,265,535.11 | 10,010,875.00 | 10,010,875.00 |
| Accounts payable | 8,385,924.28 | 8,385,924.28 | 127,046,452.55 | 127,046,452.55 |
| Deferred tax liability | 5,664,942.93 | |||
| Employee benefits payable | 690,981.64 | 690,981.64 | 4,788,525.20 | 4,788,525.20 |
| Taxes payable | 64,102.41 | 64,102.41 | ||
| Other current liabilities | 26,385.05 | 26,385.05 | ||
| Long-term payables | 45,000,000.00 | 45,000,000.00 | ||
| Net assets | 62,393,298.59 | 39,733,526.89 | 166,798,274.97 | 166,798,274.97 |
| Less: Minority interest | 21,837,654.50 | 13,906,734.41 | 0.00 | 0.00 |
| Net assets acquired | 40,555,644.09 | 25,826,792.48 | 166,798,274.97 | 166,798,274.97 |
| Hubei Tech-bank Feed Co., Ltd. | Dongying Tech-bank Feed Technology Co., Ltd. | |||
| Fair value on acquisition date | Carrying value on acquisition date | Fair value on acquisition date | Carrying value on acquisition date | |
| Assets: | 44,211,119.20 | 42,928,876.93 | 37,207,714.01 | 34,716,909.05 |
| Cash at bank and on hand | 120,120.43 | 120,120.43 | 183,135.00 | 183,135.00 |
| Accounts receivable | 29,406,373.74 | 29,406,373.74 | ||
| Inventories | 5,382,690.65 | 5,382,690.65 | ||
| Fixed assets | 4,746,859.06 | 3,464,616.79 | ||
| Intangible assets | 28,074,024.96 | 25,583,220.00 | ||
| Right-of-use assets | 4,555,075.32 | 4,555,075.32 | ||
| Construction in progress | 835,554.05 | 835,554.05 | ||
| Other non-current assets | 8,115,000.00 | 8,115,000.00 | ||
| Liabilities: | 35,904,228.80 | 35,583,668.23 | 17,046,101.53 | 16,423,400.29 |
| Borrowings | ||||
| Accounts payable | 30,601,844.07 | 30,601,844.07 | 16,207,586.05 | 16,207,586.05 |
| Deferred tax liability | 320,560.57 | 0.00 | 622,701.24 | 0.00 |
| Employee benefits payable | 249,662.74 | 249,662.74 | ||
| Taxes payable | 70,912.44 | 70,912.44 | 215,814.24 | 215,814.24 |
| Non-current liabilities due within one year | 152,440.14 | 152,440.14 | ||
| Lease liabilities | 4,508,808.84 | 4,508,808.84 | ||
| Net assets | 8,306,890.40 | 7,345,208.70 | 20,161,612.48 | 18,293,508.76 |
| Less: Minority interest | 4,070,376.29 | 3,599,152.26 | 9,879,190.11 | 8,963,819.29 |
| Net assets acquired | 4,236,514.11 | 3,746,056.44 | 10,282,422.37 | 9,329,689.47 |
| Ningbo Tech-bank Biotechnology Co., Ltd. | Yancheng Tech-bank Feed Technology Co., Ltd. | |||
| Fair value on acquisition date | Carrying value on acquisition date | Fair value on acquisition date | Carrying value on acquisition date | |
| Assets: | 19,267,178.99 | 13,539,126.00 | 410,609,225.61 | 368,273,873.86 |
| Cash at bank and on hand | 257,127.57 | 257,127.57 | 134,579.05 | 134,579.05 |
| Accounts receivable | 13,040,031.32 | 13,040,031.32 | 270,605,744.08 | 270,605,744.08 |
| Inventories | 157,688.12 | 196,304.97 | 27,507,585.74 | 27,507,585.74 |
| Fixed assets | 38,841.00 | 42,171.16 | 90,401,633.25 | 67,781,895.54 |
| Intangible assets | 5,770,000.00 | 0.00 | 21,703,819.92 | 1,988,205.88 |
| Construction in progress | 2,000.00 | 2,000.00 | ||
| Other current assets | 100,594.12 | 100,594.12 | ||
| Deferred expenses | ||||
| Deferred tax assets | 3,490.98 | 3,490.98 | 153,269.45 | 153,269.45 |
| Liabilities: | 3,053,903.54 | 1,621,890.29 | 301,193,063.54 | 290,609,225.60 |
| Borrowing | 200,000,000.00 | 200,000,000.00 | ||
| Accounts payable | 619,844.69 | 619,844.69 | 88,090,210.13 | 88,090,210.13 |
| Deferred tax liability | 1,432,013.25 | 10,583,837.94 | 0.00 | |
| Employee benefits payable | 904,284.00 | 904,284.00 | 1,507,696.50 | 1,507,696.50 |
| Taxes payable | 66,451.74 | 66,451.74 | 204,741.17 | 204,741.17 |
| Other current liabilities | 31,309.86 | 31,309.86 | ||
| Deferred income | 806,577.80 | 806,577.80 | ||
| Net assets | 16,213,275.45 | 11,917,235.71 | 109,416,162.07 | 77,664,648.26 |
| Less: Minority interest | 0.00 | 0.00 | 53,613,919.42 | 38,055,677.65 |
| Net assets acquired | 16,213,275.45 | 11,917,235.71 | 55,802,242.65 | 39,608,970.61 |
| Nanning Aigefei Feed Co., Ltd. | Bengbu Tech-bank Feed Technology Co., Ltd. | |||
| Fair value on acquisition date | Carrying value on acquisition date | Fair value on acquisition date | Carrying value on acquisition date | |
| Assets: | 103,020,337.99 | 91,803,486.94 | 114,972,751.07 | 109,490,166.79 |
| Cash at bank and on hand | 17,438.94 | 17,438.94 | ||
| Accounts receivable | 67,452,873.62 | 67,452,873.62 | 60,260,312.53 | 60,260,312.53 |
| Inventories | 11,862,874.75 | 11,600,665.99 | 24,890,714.48 | 24,890,714.48 |
| Fixed assets | 15,922,633.58 | 11,587,545.73 | 29,821,724.06 | 24,339,139.78 |
| Intangible assets | 7,698,087.90 | 1,078,533.46 | ||
| Deferred tax assets | 66,429.20 | 66,429.20 | ||
| Liabilities: | 47,840,120.56 | 46,157,592.90 | 110,853,201.07 | 109,482,555.00 |
| Borrowings | ||||
| Accounts payable | 45,306,853.82 | 45,306,853.82 | 108,847,596.00 | 108,847,596.00 |
| Deferred tax liability | 1,682,527.66 | 1,370,646.07 | ||
| Employee benefits payable | 561,545.50 | 561,545.50 | 634,959.00 | 634,959.00 |
| Taxes payable | 245,901.58 | 245,901.58 | ||
| Deferred income | 43,292.00 | 43,292.00 | ||
| Net assets | 55,180,217.43 | 45,645,894.04 | 4,119,550.00 | 7,611.79 |
| Less: Minority interest | 27,038,306.54 | 22,366,488.08 | 2,018,579.50 | 3,729.78 |
| Net assets acquired | 28,141,910.89 | 23,279,405.96 | 2,100,970.50 | 3,882.01 |
Method for determining the fair value of identifiable assets and liabilities:
None.
Contingent liabilities acquired from business combinationNone.
Other notes:
None.
(4). Fair value re-measurement gain or loss on previously held equity on acquisition dateBusiness combination achieved in stages with the Company obtained control in the reporting period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Acquiree | Carrying value of previously held equity on the acquisition date | Fair value of previously held equity on the acquisition date | Fair value re-measurement gain or loss on previously held equity on acquisition date | Method and key assumptions for determining fair value of previously held equity on the acquisition date | Amount of other comprehensive income relating to previously held equity converted into investment gain |
| Zhongwei New Energy (Chengdu) Co., Ltd. | 54,637,625.23 | 54,637,625.23 | Carrying value |
(5). Note on the inability to reasonably determine consideration or fair value of acquiree's netidentifiable assets and liabilities on acquisition date or as of the end of the combination period"□ Applicable" "√ Not applicable"
(6). Other notes
"□ Applicable" "√ Not applicable"
2. Business combinations under common control
"□ Applicable" "√ Not applicable"
3. Reverse acquisition
"□ Applicable" "√ Not applicable"
4. Subsidiary disposal
Disposal of subsidiary with on transaction leading to losing control"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Subsidiary name | Equity disposal price | Disposal percent (%) | Disposal method | Control lost date | Basis for determining control lost date | Difference between disposal price and share of the subsidiary's net assets regarding the consolidated financial statements | Remaining equity on control lost date (%) | Carrying value of remaining equity on control lost date | Fair value of remaining equity on control lost date | Fair value re-measurement gain or loss on remaining equity | Method and key assumptions for determining fair value of remaining equity on control lost date | Amount of other comprehensive income relating to equity investment in former subsidiary converted to investment gain |
| Jianping Tongwei New Energy Co., Ltd. | 83,023,800.00 | 100.00 | Equity transfer | 2021-01-13 | Business registration change | 0.00 | 0.00 |
Other notes:
"√ Applicable" "□ Not applicable"
On October 19, 2020, Tongwei New Energy Co., Ltd. (a wholly-owned subsidiary) and Hunan Hengyang Xintong New Energy Development Co., Ltd. (formername: Hunan Jianrong Yanheng New Energy Development Co., Ltd.) signed an agreement under which the subsidiary transferred the 100% shares of JianpingTongwei New Energy Co., Ltd. and the procedures for transfer were completed in January 2021.
5. Changes in scope of consolidation for other reasons
Note on changes in scope of consolidation for other reasons (such as new subsidiary or liquidation of subsidiary) and relevant circumstances:
"√ Applicable" "□ Not applicable"
Shenyang Tongwei Biotechnology Co., Ltd. was established in 2021 through investment from the Company.
Tongwei New Energy Engineering Design Sichuan Co., Ltd. and Sichuan Yongxiang New Materials Co., Ltd. Were changed from tier-one subsidiaries to tier-two ones.
6. Others
"□ Applicable" "√ Not applicable"
IX. Interest in other entities
1. Interest in subsidiaries
(1). Corporate group structure
"√ Applicable" "□ Not applicable"
| Subsidiary name | Principal business location | Registered location | Business nature | Equity percent (%) | Obtaining method | |
| Direct | Indirect | |||||
| Yongxiang Co., Ltd. | Leshan | Leshan | Chemical engineering and PV | 99.9999 | 0.0001 | Business combination under common control |
| Tongwei Solar (Hefei) Co., Ltd. | Hefei | Hefei | Production and operation of solar cells and modules | 100 | Business combination under common control | |
| Tongwei New Energy Co., Ltd. | Chengdu | Chengdu | PV electricity operation | 100 | Business combination under common control | |
| Chongqing Tongwei Feed Co., Ltd. | Chongqing | Chongqing | Feed production and operation | 100 | Business combination under common control | |
| Xiamen Tongwei Feed Co., Ltd. | Xiamen | Xiamen | Feed production and operation | 100 | Business combination under common control | |
| Yuanjiang Tongwei Feed Co., Ltd. | Yuanjiang | Yuanjiang | Feed production and operation | 100 | Business combination under common control | |
| Wuhan Tongwei Feed Co., Ltd. | Wuhan | Wuhan | Feed production and operation | 100 | Business combination under common control | |
| Shashi Tongwei Feed Co., Ltd. | Shashi | Shashi | Feed production and operation | 100 | Business combination under common control | |
| Guangdong Tongwei Feed Co., Ltd. | Foshan | Foshan | Feed production and operation | 100 | Business combination under common control | |
| Shandong Tongwei Feed Co., Ltd. | Zibo | Zibo | Feed production and operation | 92 | Business combination under common control | |
| Zaozhuang Tongwei Feed Co., Ltd. | Zaozhuang | Zaozhuang | Feed production and operation | 100 | Business combination under common control | |
| He’nan Tongwei Feed Co., Ltd. | Xinxiang | Xinxiang | Feed production and operation | 100 | Business combination under common control | |
| Changchun Tongwei Feed Co., Ltd. | Changchun | Changchun | Feed production and operation | 100 | Business combination under common control | |
| Chengdu Tongwei Aquaculture Technology Co., Ltd. | Chengdu | Chengdu | Farming | 100 | Business combination under common control | |
| Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | Chengdu | Chengdu | Veterinary drugs | 70 | Business control under different control | |
| Tongwei (Hainan) Aquatic Products Co., Ltd. | Hainan | Hainan | Food processing | 100 | Business control under different control | |
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | Hainan | Hainan | Feed production and operation | 100 | Business control under different control | |
| Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Zhuhai | Zhuhai | Feed production and operation | 100 | Business control under different control | |
| Hainan Haiyi Aquatic Seed Co., Ltd. | Hainan | Hainan | Farming | 49.95 | Business control under different control | |
| Nantong Bada Feed Co., Ltd. | Nantong | Nantong | Feed production and operation | 100 | Business control under different control | |
| Nanning Tongwei Feed Co., Ltd. | Nanning | Nanning | Feed production and operation | 100 | Establishment through investment | |
| Tianjin Tongwei Feed Co., Ltd. | Tianjin | Tianjin | Feed production and operation | 100 | Establishment through investment | |
| Huaian Tongwei Feed Co., Ltd. | Huaian | Huaian | Feed production and operation | 100 | Establishment through investment | |
| Jieyang Tongwei Feed Co., Ltd. | Jieyang | Jieyang | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Ronglai Tongwei Feed Co., Ltd. | Chengdu | Chengdu | Feed production and operation | 80 | Establishment through investment | |
| Yangzhou Tongwei Feed Co., Ltd. | Yangzhou | Yangzhou | Feed production and operation | 100 | Establishment through investment | |
| Langfang Tongwei Feed Co., Ltd. | Langfang | Langfang | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Chengdu | Chengdu | Feed production and operation | 100 | Establishment through investment | |
| Panzhihua Tongwei Feed Co., Ltd. | Panzhihua | Panzhihua | Feed production and operation | 100 | Establishment through investment | |
| Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Guangzhou | Guangzhou | Farming | 100 | Establishment through investment |
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Chengdu | Chengdu | Guarantee | 100 | Establishment through investment | |
| Sichuan Tongguang Construction Engineering Co., Ltd. | Chengdu | Chengdu | Construction | 100 | Establishment through investment | |
| Chongqing Changshou Tongwei Feed Co., Ltd. | Changshou, Chongqing | Changshou, Chongqing | Feed production and operation | 100 | Establishment through investment | |
| Qianxi Tongwei Feed Co., Ltd. | Qianxi | Qianxi | Feed production and operation | 100 | Establishment through investment | |
| Lianyungang Tongwei Feed Co., Ltd. | Lianyungang | Lianyungang | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Tongwei Automation Equipment Co., Ltd. | Chengdu | Chengdu | Equipment manufacturing | 80 | Establishment through investment | |
| Foshan Tongwei Feed Co., Ltd. | Foshan | Foshan | Feed production and operation | 100 | Establishment through investment | |
| Zibo Tongwei Feed Co., Ltd. | Zibo | Zibo | Feed production and operation | 76 | Establishment through investment | |
| Tongwei (Dafeng) Feed Co., Ltd. | Yancheng | Yancheng | Feed production and operation | 51 | Establishment through investment | |
| Kunming Tongwei Feed Co., Ltd. | Kunming | Kunming | Feed production and operation | 100 | Establishment through investment | |
| Zibo Tongwei Food Co., Ltd. | Zibo | Zibo | Food processing | 100 | Establishment through investment | |
| Foshan Gaoming Tongwei Feed Co., Ltd. | Gaoming | Gaoming | Feed production and operation | 100 | Establishment through investment | |
| Tianmen Tongwei Biotechnology Co., Ltd. | Tianmen | Tianmen | Feed production and operation | 100 | Establishment through investment | |
| Binyang Tongwei Feed Co., Ltd. | Binyang | Binyang | Feed production and operation | 100 | Establishment through investment | |
| Fuzhou Tongwei William Feed Co., Ltd. | Fuzhou | Fuzhou | Feed production and operation | 65 | Establishment through investment | |
| Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan | Yinchuan | Feed production and operation | 100 | Establishment through investment | |
| Haerbin Tongwei Feed Co., Ltd. | Binxian | Binxian | Feed sale | 100 | Establishment through investment |
| Nanjing Tongwei Aquaculture Technology Co., Ltd. | Nanjing | Nanjing | Farming and feed sale | 100 | Establishment through investment | |
| Tongwei Holdings PTE. Ltd. | Singapore | Singapore | Trade | 100 | Establishment through investment | |
| Tongwei Industrial (Tibet) Co., Ltd. | Lhasa | Lhasa | Trade | 100 | Establishment through investment | |
| Chizhou Tongwei Feed Co., Ltd. | Anhui Province | Chizhou | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu | Chengdu | Farming | 100 | Establishment through investment | |
| Hengshui Tongwei Feed Co., Ltd. | Hebei | Hebei | Feed production and operation | 100 | Establishment through investment | |
| Qingyuan Tongwei Feed Co., Ltd. | Yingde | Yingde | Feed production and operation | 100 | Establishment through investment | |
| Honghu Tongwei Feed Co., Ltd. | Honghu | Honghu | Feed production and operation | 100 | Establishment through investment | |
| Sichuan Tongwei Food Co., Ltd. | Chengdu | Chengdu | Food processing | 80 | Establishment through investment | |
| Hanshou Tongwei Feed Co., Ltd. | Changde | Honghu | Feed production and operation | 100 | Establishment through investment | |
| Sichuan Fusion Link Co., Ltd. | Chengdu | Chengdu | Others | 60 | Establishment through investment | |
| Sichuan Willtest Technology Co., Ltd. | Chengdu | Chengdu | Test service | 85.04 | Establishment through investment | |
| Wuxi Tongwei Biotechnology Co., Ltd. | Wuxi | Wuxi | Farming and feed sale | 100 | Establishment through investment | |
| Tongwei New Energy Engineering Design Sichuan Co., Ltd. | Chengdu | Chengdu | Electricity engineering design | 100 | Business control under different control | |
| Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang | Zhejiang | PV | 100 | Establishment through investment | |
| Sichuan Tongwei Feed Co., Ltd. | Meishan | Chengdu | Feed production and operation | 100 | Establishment through investment | |
| Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | Qingdao | Qingdao | Farming | 55.5 | Business control under different control |
| Sichuan Yongxiang New Materials Co., Ltd. | Leshan | Leshan | Chemical engineering | 100 | Establishment through investment | |
| Tianmen Tongwei Aquaculture Technology Co., Ltd. | Tianmen | Tianmen | PV electricity operation | 100 | Establishment through investment | |
| Nanning Tongwei Biotechnology Co., Ltd. | Nanning | Nanning | Feed production and operation | 100 | Establishment through investment | |
| Yangjiang Haiyi Securities Co., Ltd. | Yangjiang | Yangjiang | Feed production and operation | 100 | Establishment through investment | |
| Nanchang Tongwei Biotechnology Co., Ltd. | Nanchang | Nanchang | Feed production and operation | 80 | Establishment through investment | |
| Zhanjiang Haixianfeng Bio-tech Co., Ltd. | Hainan | Chengmai | Biological products | 51 | Business control under different control | |
| Sichuan Chunyuan Ecological Farming Co., Ltd. | Chengdu | Qionglai | Farming | 100 | Business control under different control | |
| Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu | Xinjin | Others | 100 | Establishment through investment | |
| Maoming Tongwei Biotechnology Co., Ltd. | Maoming | Maoming | Feed production and operation | 100 | Establishment through investment | |
| Hainan Tongwei Biotechnology Co., Ltd. | Hainan | Chengmai | Feed production and operation | 100 | Establishment through investment | |
| Guangdong Tongwei Biotechnology Co., Ltd. | Guangdong | Sihui | Feed production and operation | 100 | Establishment through investment | |
| Ningbo Tech-bank Feed Technology Co., Ltd. | Ningbo | Ningbo | Feed production and operation | 100 | Business control under different control | |
| Qingdao Qihao Biotechnology Co., Ltd. | Laixi, Qingdao | Laixi, Qingdao | Feed production and operation | 100 | Business control under different control | |
| Ningbo Tech-bank Biotechnology Co., Ltd. | Ningbo | Ningbo | Biological products | 100 | Business control under different control | |
| Yancheng Tech-bank Feed Technology Co., Ltd. | Yancheng, Jiangsu | Yancheng, Jiangsu | Feed production and operation | 51 | Business control under different control | |
| Nanning Aigefei Feed Co., Ltd. | Nanning | Nanning | Feed production and operation | 51 | Business control under different control | |
| Bengbu Tech-bank Feed Technology Co., Ltd. | Bengbu, Anhui | Bengbu, Anhui | Feed production and operation | 51 | Business control under different control |
| Hubei Tech-bank Feed Co., Ltd. | Huangshi, Hubei | Huangshi, Hubei | Feed production and operation | 51 | Business control under different control | |
| Dongying Tech-bank Feed Technology Co., Ltd. | Dongying, Shandong | Dongying, Shandong | Feed production and operation | 51 | Business control under different control | |
| Shenyang Tongwei Biotechnology Co., Ltd. | Shenyang | Shenyang | Biological products | 100 | Establishment through investment |
Note on equity percent different from voting right percent:
None.
Basis for cases when the Company has control of an investee in which it only holds 50% or less voting rights and when the Company has no control of an investeein which it holds over 50% voting rights:
None.
Basis for the Company's control of important structured entities included into scope of consolidation:
None.
Basis for determining whether the Company is the agent or trustorNone.
Other notes:
Note 1: The Company established Shenyang Tongwei Biotechnology Co., Ltd. in 2021.Note 2: Tongwei New Energy Engineering Design Sichuan Co., Ltd. and Sichuan Yongxiang New Materials Co., Ltd. were changed from tier-one subsidiaries totier-two ones of the Company in 2021 by becoming into the subsidiaries of Tongwei New Energy Co., Ltd. and Yongxiang Co., Ltd.
(2). Important non-wholly-owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Subsidiary name | Minority equity (%) | Current profit or loss attributable to minority shareholders | Current dividend declared to monitory shareholders | Closing minority interest balance |
| Sichuan Yongxiang New Energy Co., Ltd. | 15.00% | 528,446,756.86 | 193,350,000.00 | 809,316,396.24 |
Note on minority shareholders’ equity percent is different from their percent of voting rights:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(3).
Main financial information of important non-wholly owned subsidiaries"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Subsidiary | Closing balance | Opening 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. | 3,577,128,981.61 | 6,399,280,804.01 | 9,976,409,785.62 | 2,550,821,147.39 | 2,030,145,996.60 | 4,580,967,143.99 | 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 |
| Subsidiary | Current amount | Prior amount | ||||||
| Operating revenue | Net income | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net income | Total comprehensive income | Cash flows from operating activities | |
| Sichuan Yongxiang New Energy Co., Ltd. | 6,909,496,192.32 | 3,522,978,379.02 | 3,522,978,379.02 | 3,083,528,871.28 | 2,290,460,762.24 | 527,682,526.10 | 527,682,526.10 | 91,803,475.40 |
Other notes:
None.
(4). Significant restrictions on use of group assets and service of group liabilities"□ Applicable" "√ Not applicable"
(5). Financial or other supports provided for structured entities within the scope of consolidation"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Transactions resulting in changes in ownership interest without loss of control"√ Applicable" "□ Not applicable"
(1). Note on changes in ownership interest
"√ Applicable" "□ Not applicable"
(1) Note on changes in ownership interest:
In January 2021, Sichuan Tongwei Food Co., Ltd. (a subsidiary controlled by the Company) acquired
0.80% of ownership interest in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. from minorityshareholders with a consideration of 301,500.00 yuan. After the acquisition, the Company’s ownershipinterest in Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. was changed from 55.63% to 56.43%.
In January 2021, Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. (a subsidiarycontrolled by the Company) had its share capital increased for which the contributions made by theCompany and the minority shareholders were not proportional to their interest percentages. After that, theCompany's ownership interest in Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. waschanged from 51.00% to 55.50%.In August 2021, the Company acquired 2.00% of ownership in Sichuan Willtest Technology Co.,Ltd. from minority shareholders with a consideration of 553,874.73 yuan. After the acquisition, theCompany's ownership interest in Sichuan Willtest Technology Co., Ltd. was changed from 83.04% to
85.04%.
In May 2021, Yongxiang Co., Ltd. (a wholly-owned subsidiary of the Company) acquired 0.60% ofownership interest in Sichuan Yongxiang Silicon Materials Co., Ltd. from minority shareholders with aconsideration of 678,884.00 yuan. After the acquisition, the ownership interest of Yongxiang SiliconMaterials Co., Ltd. In Sichuan Yongxiang Silicon Materials Co., Ltd. was changed from 92.15% to
92.75%.
In January 2021, Gansu Lvjuren New Energy Investment Co., Ltd. (a wholly-owned subsidiary ofthe Company) acquired 10.00% of ownership interest in Bayannaoer Ruibin New Energy Co., Ltd. fromminority shareholders with a consideration of 699,500.00 yuan. After the acquisition, the ownershipinterest of Gansu Lvjuren New Energy Investment Co., Ltd. in Bayannaoer Ruibin New Energy Co., Ltd.was changed from 90.00% to 100.00%.
In May 2021, Tongwei New Energy Co., Ltd. (a wholly-owned subsidiary of the Company) acquired
1.28% of ownership interest in Tongwei Huijin New Energy Co., Ltd. from minority shareholders with aconsideration of 3,490,463.62 yuan. After the acquisition, the ownership interest of Tongwei New EnergyCo., Ltd. In Tongwei Huijin New Energy Co., Ltd. was changed from 94.75% to 96.03%.
(2). Effects of transactions on minority interest and interest attributable to owners of parent
company"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Sichuan Tongwei Sanlian Aquatic Products Co., Ltd. | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | Sichuan Willtest Technology Co., Ltd. | |
| Acquisition cost/disposal consideration | 301,500.00 | 9,885,000.00 | 553,874.73 |
| --Cash | 301,500.00 | 9,885,000.00 | 553,874.73 |
| --Fair value of non-cash assets | |||
| Total acquisition cost/disposal consideration | 301,500.00 | 9,885,000.00 | 553,874.73 |
| Less: Share of subsidiary's net assets based on the ownership interest acquired or disposed | 293,647.89 | 11,195,766.58 | 621,423.09 |
| Difference | 7,852.11 | -1,310,766.58 | -67,548.36 |
| Including: Adjustment of capital surplus | -7,852.11 | 1,310,766.58 | 67,548.36 |
| Adjustment of surplus reserve | |||
| Adjustment of undistributed profit |
| Sichuan Yongxiang Silicon Materials Co., Ltd. | Bayannaoer Ruibin New Energy Co., Ltd. | Tongwei Huijin New Energy Co., Ltd. | |
| Acquisition cost/disposal consideration | 678,884.00 | 699,500.00 | 3,490,463.62 |
| --Cash | 678,884.00 | 699,500.00 | 3,490,463.62 |
| --Fair value of non-cash assets | |||
| Total acquisition cost/disposal consideration | 678,884.00 | 699,500.00 | 3,490,463.62 |
| Less: Share of subsidiary's net assets based on the ownership interest acquired or disposed | - | 3,212,453.30 | 4,412,435.60 |
| Difference | 678,884.00 | -2,512,953.30 | -921,971.98 |
| Including: Adjustment of capital surplus | -678,884.00 | 2,512,953.30 | 921,971.98 |
| Adjustment of surplus reserve | |||
| Adjustment of undistributed profit |
Other notes"□ Applicable" "√ Not applicable"
3. Interest in joint ventures or associates
"√ Applicable" "□ Not applicable"
(1). Important joint ventures or associates
"□ Applicable" "√ Not applicable"
(2). Main financial information of important joint ventures
"□ Applicable" "√ Not applicable"
(3). Main financial information of associates
"□ Applicable" "√ Not applicable"
(4). Aggregated financial information of non-important joint ventures and associates"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Closing balance / Current amount | Opening balance / Prior amount | |
| Joint ventures: | ||
| Total carrying value | 111,518,473.37 | 125,664,667.11 |
| Totals by ownership interest percentage: | ||
| --Net profit | 1,850,950.04 | -3,121,628.38 |
| --Other comprehensive income | ||
| --Total comprehensive income | 1,850,950.04 | -3,121,628.38 |
| Associates: | ||
| Total carrying value | 344,279,852.21 | 352,071,415.11 |
| Totals by ownership interest percentage: | ||
| --Net profit | -16,010,471.56 | 25,628,155.16 |
| --Other comprehensive income | 259,086.76 | |
| --Total comprehensive income | -15,751,384.80 | 25,628,155.16 |
(5). Note on significant limitations on the ability of joint ventures or associates to transfer funds tothe Company"□ Applicable" "√ Not applicable"
(6). Excess losses by joint ventures or associates
"□ Applicable" "√ Not applicable"
(7). Unconfirmed commitments relating to joint venture investments
"□ Applicable" "√ Not applicable"
(8). Contingent liabilities relating to joint venture or associate investments
"□ Applicable" "√ Not applicable"
4. Important joint operations
"□ Applicable" "√ Not applicable"
5. Interest in structured entities outside of the scope of consolidationNote on structured entities outside of the scope of consolidation:
"□ Applicable" "√ Not applicable"
6. Others
"□ Applicable" "√ Not applicable"
X. Risks relating to financial instruments"√ Applicable" "□ Not applicable"(I) Credit riskCredit risk is the risk of one party to the financial instrument incurs a loss due to the non-performanceof the other party. The main credit risk to which the Company is exposed to the customer credit risk dueto selling on credit. Before signing a new contract, the Company assesses the credit risk of the newcustomer including its external credit rating, and in some cases, the creditworthiness certificate from bank(when available). The Company sets a credit limit for each customer, this is the maximum limit thatrequires no additional approval. On each balance sheet date, the carrying value of receivables of theCompany presents the maximum credit exposure.
By applying credit monitoring and managing accounts receivable via aging analysis for existingcustomers, with weekly reports on changes in accounts receivable from key customers submitted by theFinancial Department, the Company ensures the overall credit risk within a controllable range. Customersare grouped by their credit feature when the Company monitors their credit risks. “High-risk” customersare placed into the list of restricted customers who are required to make advances.
In addition, the Company creates adequate provision for expected credit loss depending on therecovery of accounts receivable on each balance sheet date. As such, the Company management believesthat the credit risk the Company bears has been reduced hugely.
Current funds of the Company are placed into banks with high credit rating and therefore exposed toa low credit risk.
The Company's credit exposure covers customers a variety of contract parties and customers fromdifferent regions, relating to PV generation, silicon materials and wafers, solar cells, modules and relevantchemical engineering, feed and food processing. No systematic risk is detected in these industries.Therefore, the Company is not exposed to significant concentrated credit risk. On December 31, 2021, thebalance of accounts receivable from top five customers was 1,471,771,900 yuan accounting for 46.45%of the total balance of accounts receivable.
(II) Market risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes inmarket price, including foreign exchange risk, interest rate risk and other price risks.
1. Interest rate risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes inmarket interest rate. The main interest rate risk to which the Company is exposed is from bank borrowings.
The Company keeps a good credit status in banks and effectively controls its interest rate risk bycontrolling its debt structure with funds from domestic branches and subsidiaries coordinated by the headoffice, enhancing the liquidity and eliminating overdue borrowings.
2. Foreign exchange risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes inexchange rates. The Company spares no effort to match its foreign currency income with foreign currencyexpenditure, to lower this risk. The main exchange risks for the Company include financial assets andfinancial liabilities denominated in foreign currencies such as the USD, VND, BDT, INR, SGD, EUR andHKD. The amounts translated from foreign currency assets and foreign currency liabilities into CNY aredetailed in Note V. 65.
(III) Liquidity risk
It is the risk of incurring losses resulting from the inability to meet payment obligations via deliveryof cash or other financial assets. The Company follows a policy to ensure it has adequate cash to pay debtswhen they become due. Liquidity risk is centrally managed by the Company's Financial Department. Bymonitoring cash balance, marketable securities readily for realization and the 12-month rolling forecast ofcash flow, the Financial Department ensures the Company keeps adequate cash to pay debts under allreasonably expected conditions.
As of December 31, 2021, the breakdown of financial liabilities held by the Company by remainingcontract obligations is as below:
Unit: 10,000 Yuan Currency: CNY
| Item | Within 1 year | 1- 2 years | 2- 5 years | Over 5 years | Total |
| Short-term borrowings | 137,523.01 | - | - | - | 137,523.01 |
| Notes payable | 995,792.31 | - | - | - | 995,792.31 |
| Accounts payable | 815,127.01 | - | - | - | 815,127.01 |
| Other payable | 76,162.09 | - | - | - | 76,162.09 |
| Long-term borrowings | 145,531.91 | 408,898.21 | 617,335.34 | 246,101.64 | 1,417,867.10 |
| Bonds payable | 2,080.00 | 42,080.00 | - | - | 44,160.00 |
| Lease liabilities | 56,561.56 | 47,059.01 | 68,428.88 | 245,251.79 | 417,301.24 |
| Long-term payables | 113,533.67 | 91,487.01 | 80,160.19 | 7,221.28 | 292,402.15 |
| Total | 2,342,311.56 | 589,524.23 | 765,924.42 | 498,574.71 | 4,196,334.91 |
XI. Fair value disclosure
1. Closing fair value of assets and liabilities measured at fair value
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing fair value | |||
| Level 1 fair value measurement | Level 2 fair value measurement | Level 3 fair value measurement | Total | |
| I. Continuous measurement at fair value | ||||
| (I) Held-for-trading financial assets | 10,617,668.58 | 10,617,668.58 | ||
| 1. Financial assets measured at fair value through current profit and loss | ||||
| (1) Debt investments | ||||
| (2) Equity investments | ||||
| (3) Derivative financial assets | 10,617,668.58 | 10,617,668.58 | ||
| 2. Financial assets designated to be measured at fair value through current profit and loss | ||||
| (1) Debt investments | ||||
| (2) Equity investments | ||||
| (II) Other debit investments | ||||
| (III) Other equity investments | 153,551,598.71 | 153,551,598.71 | ||
| (IV) Investment properties | ||||
| 1. Land use right for lease | ||||
| 2. Buildings for lease | ||||
| 3. Land use right held for transfer after its value is increased | ||||
| (V) Biological assets | ||||
| 1. Consumable biological assets | ||||
| 2. Productive biological assets | ||||
| Receivables financing | 11,406,947,347.71 | 11,406,947,347.71 | ||
| Other non-current financial assets | 3,146,248.25 | 3,146,248.25 | ||
| Total assets continuously measured at fair value | 10,617,668.58 | 11,563,645,194.67 | 11,574,262,863.25 | |
| (VI) Held-for-trading financial liabilities | ||||
| 1. Financial liabilities measured at fair value through current profit and loss | ||||
| Including: trading bonds issued | ||||
| Derivative financial liabilities | ||||
| Others | ||||
| 2. Financial liabilities designated to be measured at fair value through current profit and loss | ||||
| Total liabilities continuously measured at fair value | ||||
| II. Non-continuous measurement at fair value | ||||
| (I) Assets held for sale | ||||
| Total assets non-continuously measured at fair value | ||||
| Total liabilities non-continuously measured at fair value |
2. Basis for determining market price of level one items continuously and non-continuouslymeasured at fair value"√ Applicable" "□ Not applicable"
Derivative financial assets are paper gain from USD forward contracts. The closing fair value iscalculated from data published by the bank with which the contracts have been purchased.
3. Qualitative and quantitative information of valuation techniques and important parameters
used for level 2 items continuously and non-continuously measured at fair value"√ Applicable" "□ Not applicable"
Remaining term of receivables financing is short, which means the carrying value is close to the fairvalue, therefore, the carrying value is used as fair value.For other equity investments, the closing net assets of investee is used as the important basis for itsfair value valuation. Where certain valuation techniques are used to determine fair value, the importantparameters include interest rate that cannot be directly observed.The investment costs of other non-current financial assets are used as their fair values because nosignificant changes occurred in the operating environment, operation and financial status of the investees.
4. Qualitative and quantitative information of valuation techniques and important parameters
used for level 3 items continuously and non-continuously measured at fair value"□ Applicable" "√ Not applicable"
5. Reconciliation between opening and closing carrying values and sensitivity analysis for
unobservable parameters for level 3 items continuously and non-continuously measured at fair
value"□ Applicable" "√ Not applicable"
6. Reasons for and policies at level conversion for items continuously measured at fair value"□ Applicable" "√ Not applicable"
7. Changes in valuation techniques and reasons
"□ Applicable" "√ Not applicable"
8. Fair value of financial assets and financial liabilities not measured at fair value"□ Applicable" "√ Not applicable"
9. Others
"□ Applicable" "√ Not applicable"
10. Parent company
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
| Parent company name | Registered location | Business nature | Registered Capital | Parent’s ownership percentage in the Company (%) | Parent's voting right percentage in the Company (%) |
| Tongwei Group Co., Ltd. | Sichuan | Mixed operation | 20,000.00 | 43.85 | 43.85 |
Note on parent company
Tongwei Group Co., Ltd. is a limited liability company whose registered office and business officeare both at No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, legally represented byGuan Yamei, with a registered capital of 2 billion yuan. Scope of activities: (The following items do notinclude those requiring prior licenses, items requiring post licenses are subject to licenses or approvals)Feed processing; manufacturing of equipment specially for electronic industry; manufacturing of PVequipment and components; cell manufacturing; manufacturing of gas-fired, solar and similar-fueledhome appliances; aquaculture (the above items are limited to branches and subsidiaries); wholesale andretail of goods; livestock husbandry; services for promoting and applying technologies; services forsoftware and information technology; import and export; development and operation of real properties;property management; lease; advertising; PV generation. (Any activity that requires approval under lawsmay not be conducted until such approval is obtained from relevant authorities)The ultimate controller of the Company is Liu Hanyuan.Other notes:
None.
11. Subsidiaries of the Company
Refer to Notes for details.
"√ Applicable" "□ Not applicable"Details of subsidiaries are in Note VII. Interest in other entities.
12. Joint ventures and associates
Details of important joint ventures and associates are in Notes."□ Applicable" "√ Not applicable"Other joint ventures or associates that concluded related-party transactions with the Company in currentperiod or in prior periods that had caused balances"√ Applicable" "□ Not applicable"
| 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 |
| Anhui Tech-bank Feed Technology Co., Ltd. | Associate |
| Anhui Tech-bank Biotechnology Co., Ltd. | Associate |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Associate |
Other notes"√ Applicable" "□ Not applicable"Zhongwei New Energy (Chengdu) Co., Ltd. was included into the scope of consolidation due tobusiness combination under different control in current period (refer to business combination underdifferent control), only related-party transactions with Zhongwei New Energy (Chengdu) Co., Ltd. priorto the combination are disclosed.
13. Other related parties
"√ Applicable" "□ Not applicable"
| Name | Relationship with the Company |
| Chengdu Haozhuren Pet Food Co., Ltd. | Common ultimate control |
| Chengdu Tongwei Culture Media Co., Ltd. | Common ultimate control |
| Chengdu Tongwei Property Co., Ltd. | Common ultimate control |
| Chengdu Tongyu Property Management Co., Ltd. | Common ultimate control |
| Chengdu Xinrui Technology Development Co., Ltd. | Common ultimate control |
| Meishan Tongwei Property Co., Ltd. | Common ultimate control |
| Leshan Yongxiang Polysilicon Co., Ltd. | Common ultimate control |
| Chengdu Low-carbon Urban Investment Co., Ltd. | Common ultimate control |
| Chengdu Tongwei Business Management Co., Ltd. | Common ultimate control |
| Sichuan Tongwei Shidi Property Co., Ltd. | Common ultimate control |
| Zhuhai Haiwei Feed Co., Ltd. | The wholly-owned subsidiary of BioMar Tongwei (Wuxi) Biotech Co., Ltd., the Company's joint venture |
Other notesNone.
14. Related-party transactions
(1). Related-party transactions on sale and purchase of goods and rendering and receipt of servicesPurchase of goods/receipt of services"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Related party | Related-party transaction | Current amount | Prior amount |
| Chengdu Xinrui Technology Development Co., Ltd. | Spare supplies, spare parts and machinery equipment | 38,560,074.17 | 56,823,096.05 |
| Chengdu Tongyu Property Management Co., Ltd. | Property management and service fees | 40,633,560.03 | 33,118,380.09 |
| Zhuhai Haiwei Feed Co., Ltd. | Feed, raw materials, packaging materials, labels | 29,054,160.65 | 51,746,426.23 |
| Chengdu Tongwei Culture Media Co., Ltd. | Goods and services | 19,657,805.03 | 13,193,706.47 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed and pre-mixed feed | 199,789.47 | 132,070.00 |
| Chengdu Tongwei Business Management Co., Ltd. | Spirits and beverages, gifts | 2,889,642.18 | |
| Tongwei Group Co., Ltd. | Service fee | 346,911.08 | |
| Chengdu Haozhuren Pet Food Co., Ltd. | Feed | 1,725.61 | |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Solar cells, monocrystalline silicon wafers, pulp, main chemicals | 24,038,384.44 | |
| Zhuhai Haiwei Feed Co., Ltd. | Processing fee | 35,145.94 | |
| Leshan Yongxiang Polysilicon Co., Ltd. | Machinery equipment | 5,512,820.52 |
Sale of goods/rendering of services"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Related party | Related-party transaction | Current amount | Prior amount |
| Zhuhai Haiwei Feed Co., Ltd. | Raw materials, feed and others | 90,079,786.26 | 43,895,114.93 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed, raw materials, pre-mixed feed, packaging materials | 20,103,851.67 | 21,140,103.85 |
| Tongwei Group Co., Ltd. and its subsidiaries | Food | 1,174,464.48 | 2,248,468.28 |
| Tongwei Group Co., Ltd. | Coupons, gift packages and so on. | 344,772.67 | |
| Chengdu Tongwei Business Management Co., Ltd. | Food | 297,769.00 | |
| Chengdu Haozhuren Pet Food Co., Ltd. | Pre-mixed feed | 285,335.10 | 171,972.50 |
| Chengdu Tongwei Business Management Co., Ltd. | Office equipment | 235,379.01 | |
| Chengdu Tongyu Property Management Co., Ltd. | Call center | 191,818.34 | |
| Maoming Tongwei Jiuding Feed Co., Ltd. | Feed | 86,878,572.97 | |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | Feed, packaging materials | 24,455,667.01 | |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Solar cells, monocrystalline silicon wafers, others, fixtures | 13,986,289.11 | |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | Feed | 12,039,841.63 | |
| Hefei Tongwei Jiuding Feed Co., Ltd. | Feed | 8,406,436.28 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Machinery equipment | 1,655,191.09 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Service fee, construction service | 677,242.47 | |
| Zhuhai Haiwei Feed Co., Ltd. | Service fee | 435,394.32 | |
| Tongwei Group Co., Ltd. | Machinery equipment | 185,683.25 | |
| Zhuhai Haiwei Feed Co., Ltd. | Machinery equipment | 69,254.00 | |
| Chengdu Haozhuren Pet Food Co., Ltd. | Machinery equipment | 39,067.95 | |
| Chengdu Haozhuren Pet Food Co., Ltd. | Test service | 70,629.25 | |
| Meishan Tongwei Property Co., Ltd. | Coupons, gift packages, food | 51,613.79 | |
| Sichuan Tongwei Shidi Property Co., Ltd. | Coupons, gift packages and so on. | 1,690,814.66 | |
| Tongwei Group Co., Ltd. and its subsidiaries | Others | 32,550.37 | 72,982.32 |
Note on related-party transactions on sale and purchase of goods and rendering and receipt of services"□ Applicable" "√ Not applicable"
(2). Related-party management/entrusted management and contract-based operation/outsourcingEntrusted management/contract-based operation by the Company:
"□ Applicable" "√ Not applicable"Note on related-party management/contract-based operation"□ Applicable" "√ Not applicable"
Entrusted management/contract-based operation from the Company"□ Applicable" "√ Not applicable"Note on related-party management/contract-based operation for the Company"□ Applicable" "√ Not applicable"
(3). Related-party leases
The Company as lessor:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Lessee name | Type of leased asset | Lease income recognized in current period | Lease income recognized in prior period |
| Chengdu Haozhuren Pet Food Co., Ltd. | Machinery equipment | 6,215,951.07 | 4,948,883.02 |
| Chengdu Haozhuren Pet Food Co., Ltd. | Premises and buildings | 69,523.81 | 1,402,394.82 |
| Zhongwei New Energy (Chengdu) Co., Ltd. | Premises and buildings | 2,582,095.45 |
The Company as lessee:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Lessor name | Type of leased asset | Lease expense recognized in current period | Lease expense recognized in prior period |
| Chengdu Tongwei Property Co., Ltd. | Premises and buildings | 14,368,832.60 | 13,142,095.31 |
| Tongwei Group Co., Ltd. | Premises and buildings | 1,067,691.42 | 1,086,024.76 |
Note on related-party leases"□ Applicable" "√ Not applicable"
(4). Related-party guarantees
The Company as guarantor"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date | Guarantee fulfilled completely |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 5,000,000.00 | 2021-12-14 | 2022-03-14 | No |
The Company provided a guarantee limited to 55 million yuan for the debt of BioMar Tongwei (Wuxi)Biotech Co., Ltd. (One of its associates) made from HSBC Bank (China) Co., Ltd. As of December 31,2021, the borrowing balance in HSBC Bank (China) Co., Ltd. was 5 million yuan.
As of December 31, 2021, the Company had no related party guarantees other than the above oneand the financing guarantees to its subsidiaries.
The Company as guaranteed party"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Guarantor | Guaranteed amount | Guarantee commencement date | Guarantee expiry date | Guarantee fulfilled completely |
| Tongwei Group Co., Ltd. | 200,235,277.78 | 2020-02-25 | 2022-02-24 | No |
| Tongwei Group Co., Ltd. | 200,235,277.78 | 2020-02-25 | 2022-02-24 | No |
| Tongwei Group Co., Ltd. | 200,235,277.78 | 2020-02-25 | 2022-02-24 | No |
| Tongwei Group Co., Ltd. | 563,633.35 | 2021-12-21 | 2022-12-27 | No |
| Tongwei Group Co., Ltd. | 742,368.00 | 2021-12-21 | 2022-11-18 | No |
| Tongwei Group Co., Ltd. | 10,822.94 | 2021-12-21 | 2022-11-18 | No |
| Tongwei Group Co., Ltd. | 446,111.12 | 2021-12-21 | 2022-11-10 | No |
| Tongwei Group Co., Ltd. | 298,680.55 | 2021-12-21 | 2022-05-25 | No |
| Tongwei Group Co., Ltd. | 886,218.06 | 2021-12-21 | 2022-11-23 | No |
| Tongwei Group Co., Ltd. | 543,124.98 | 2021-12-21 | 2022-11-22 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2020-11-23 | 2022-03-20 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2020-11-23 | 2022-09-20 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2021-04-28 | 2022-04-27 | No |
| Tongwei Group Co., Ltd. | 1,000,000.00 | 2020-12-28 | 2022-06-27 | No |
| Tongwei Group Co., Ltd. | 1,000,000.00 | 2020-12-28 | 2022-12-02 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2020-06-22 | 2022-05-25 | No |
| Tongwei Group Co., Ltd. | 5,483,102.00 | 2016-11-25 | 2022-05-18 | No |
| Tongwei Group Co., Ltd. | 5,483,102.00 | 2016-11-25 | 2022-11-18 | No |
| Tongwei Group Co., Ltd. | 5,850,000.00 | 2017-03-16 | 2022-05-31 | No |
| Tongwei Group Co., Ltd. | 16,600,000.00 | 2017-03-16 | 2022-05-31 | No |
| Tongwei Group Co., Ltd. | 5,870,000.00 | 2017-03-16 | 2022-11-18 | No |
| Tongwei Group Co., Ltd. | 16,800,000.00 | 2017-03-16 | 2022-11-30 | No |
| Tongwei Group Co., Ltd. | 125,000.00 | 2021-09-27 | 2022-12-31 | No |
| Tongwei Group Co., Ltd. | 410,000,000.00 | 2020-11-23 | 2023-11-22 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2020-11-23 | 2023-03-20 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2020-11-23 | 2023-09-20 | No |
| Tongwei Group Co., Ltd. | 495,000,000.00 | 2020-12-28 | 2023-12-27 | No |
| Tongwei Group Co., Ltd. | 1,000,000.00 | 2020-12-28 | 2023-06-27 | No |
| Tongwei Group Co., Ltd. | 440,000,000.00 | 2020-11-24 | 2023-11-23 | No |
| Tongwei Group Co., Ltd. | 10,000,000.00 | 2021-04-28 | 2023-04-27 | No |
| Tongwei Group Co., Ltd. | 250,000,000.00 | 2021-04-28 | 2024-04-27 | No |
| Tongwei Group Co., Ltd. | 200,000,000.00 | 2020-11-11 | 2023-11-10 | No |
| Tongwei Group Co., Ltd. | 200,000,000.00 | 2021-04-16 | 2024-04-15 | No |
| Tongwei Group Co., Ltd. | 220,000,000.00 | 2020-06-22 | 2023-05-25 | No |
| Tongwei Group Co., Ltd. | 100,000,000.00 | 2021-09-27 | 2024-09-26 | No |
| Tongwei Group Co., Ltd., Tongwei Solar (Hefei) Co., Ltd. | 100,000,000.00 | 2021-11-17 | 2024-10-29 | No |
| Tongwei Group Co., Ltd., Tongwei Solar (Hefei) Co., Ltd. | 500,000,000.00 | 2021-10-29 | 2023-10-26 | No |
Note on related-party guarantees"√ Applicable" "□ Not applicable"Long-term borrowings due within one year include interest on long-term borrowings due within one yearof 4,321,792.34 yuan.
(5). Related-party lending
"□ Applicable" "√ Not applicable"
(6). Related-party asset transfer and debt restructuring
"□ Applicable" "√ Not applicable"
(7). Key management personnel compensation
"√ Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
| Item | Current amount | Prior amount |
| Key management personnel compensation | 3,009.97 | 3,416.38 |
(8). Other related-party transactions
"□ Applicable" "√ Not applicable"
15. Accounts receivable and payable from and to related parties
(1). Accounts receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item name | Related party | Closing balance | Opening balance | ||
| Balance | Provision for bad debts | Balance | Provision for bad debts | ||
| Accounts receivable | BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 12,800.00 | 22,300.00 | ||
| Accounts receivable | Chengdu Tongwei Business Management Co., Ltd. | 4,550.00 | |||
| Accounts receivable | Tongwei Group Co., Ltd. | 45,544.80 | |||
| Advances to suppliers | Anhui Tech-bank Feed Technology Co., Ltd. | 532,545.20 |
(2). Accounts payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item name | Related party | Closing balance | Opening balance |
| Accounts payable | Chengdu Xinrui Technology Development Co., Ltd. | 35,843,000.82 | 19,615,058.44 |
| Accounts payable | Chengdu Tongwei Culture Media Co., Ltd. | 6,851,067.39 | 3,583,632.38 |
| Accounts payable | Anhui Tech-bank Feed Technology Co., Ltd. | 4,920,062.20 | |
| Accounts payable | Anhui Tech-bank Biotechnology Co., Ltd. | 2,122,411.00 | |
| Accounts payable | Zhuhai Haiwei Feed Co., Ltd. | 11,712.20 | 209,203.69 |
| Accounts payable | Chengdu Tongyu Property Management Co., Ltd. | 683.05 | |
| Contract liabilities | Anhui Tech-bank Feed Technology Co., Ltd. | 88,843.13 | |
| Contract liabilities | Meishan Tongwei Property Co., Ltd. | 50,000.00 | |
| Contract liabilities | Chengdu Low-carbon Urban Investment Co., Ltd. | 2,870.00 | |
| Contract liabilities | Chengdu Tongyu Property Management Co., Ltd. | 2,099.81 | |
| Other payable | Chengdu Xinrui Technology Development Co., Ltd. | 3,757,800.00 | 670,000.00 |
| Other payable | Chengdu Tongwei Culture Media Co., Ltd. | 40,000.00 | 328,978.47 |
| Other payable | Chengdu Tongwei Business Management Co., Ltd. | 3,360.00 | |
| Other payable | Chengdu Tongyu Property Management Co., Ltd. | 86,747.86 | |
| Other payable | Zhuhai Haiwei Feed Co., Ltd. | 33,422.22 | |
| Other payable | Maoming Tongwei Jiuding Feed Co., Ltd. | 249.22 | |
| Other payable | Huangmei Tongwei Jiuding Feed Co., Ltd. |
Note: The Company coordinates funds of joint ventures (the funds coordinated from BioMarTongwei (Wuxi) Biotech Co., Ltd. and Zhuhai Haiwei Feed Co., Ltd are provided by shareholdersdepending in their contribution percentages), and calculates interest according to the benchmark rate onone-year loan specified by the People's Bank of China. The interest paid by the Company (negative valuemeans the interest received) is as below:
| Related party | Current amount | Prior amount |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 270,061.53 | |
| Hefei Tongwei Jiuding Feed Co., Ltd. | 175,665.88 | |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 459,688.47 | |
| Zhuhai Haiwei Feed Co., Ltd. | -715,997.24 | |
| Maoming Tongwei Jiuding Feed Co., Ltd. | 129,735.92 | |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 1,994.51 | 751,919.52 |
| Total | 1,994.51 | 1,071,074.08 |
16. Related-party commitments
"□ Applicable" "√ Not applicable"
17. Others
"□ Applicable" "√ Not applicable"
XII. Share-based payment
1. Overview of share-based payments
"□ Applicable" "√ Not applicable"
2. Equity-settled share-based payments
"□ Applicable" "√ Not applicable"
3. Cash-settled share-based payments
"□ Applicable" "√ Not applicable"
4. Modification and termination of share-based payments
"□ Applicable" "√ Not applicable"
5. Others
"□ Applicable" "√ Not applicable"
XIII. Commitments and contingencies
1. Important commitments
"□ Applicable" "√ Not applicable"
2. Contingencies
(1). Important contingencies on balance sheet date
"√ Applicable" "□ Not applicable"
Outward guaranteesAs of December 31, 2021, the Company had the following outward guarantees and the post-daterepayments of guaranteed borrowings and recovery of guaranteed sales on credit:
Guarantees for farmers who borrowed money from financial institutions for purchasing TongweiFeed and building rooftop powerplants:
Unit: CNY
| Item | Guarantee commencement date | Guarantee expiry date | Balance of guaranteed amount | Post-date repayment or recovery |
| Tongwei Agricultural Finance Guarantee Co., Ltd. provided guarantees for farmers who borrowed money from financial institutions for purchasing Tongwei feed | 2021-01-05 | 2022-12-17 | 201,349,278.49 | 147,128,146.99 |
| Tongwei Agricultural Finance Guarantee Co., Ltd. provided guarantees for farmers who borrowed money from financial institutions for building rooftop powerplants | 2017-09-15 | 2027-12-27 | 20,739,382.43 | 918,270.63 |
| Total | 222,088,660.92 | 148,046,417.62 |
Note: As of December 31, 2021, the balance of repayment made by Tongwei Agricultural FinanceGuarantee Co., Ltd. for behalf of guaranteed parties was 17,631,911.48 yuan. It is trying to recover thebalance.
No important continencies other than the above-mentioned ones as of December 31, 2021.
(2). Note on no important contingencies that require disclosure
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
XIV. Post balance sheet events
1. Important non-adjusting events
"□ Applicable" "√ Not applicable"
2. Profit distribution
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Proposed profit or dividend distribution | 4,105,411,943.81 |
| Declared profit or dividend |
In 2021, the parent company received a total net profit of 4,896,256,431.26 yuan, with priorundistributed profit of 4,107,010,606.38 yuan, adjustment of opening undistributed profit of -3,306,489.02yuan under new lease standards, withdrawal of statutory surplus reserve of 489,625,643.13 yuan,distribution of prior cash dividend of 1,084,873,112.35 yuan. As a result, the parent company had a totalundistributed profit of 7,425,461,793.14 yuan. Given the actual conditions, the Company proposed to pay
9.12 yuan in cash (including tax) per 10 shares to all shareholders for the total 4,501,548,184 shares.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note on other post balance sheet events
"□ Applicable" "√ Not applicable"XV. Other important matters
1. Prior error corrections
(1). Retrospective restatement
"□ Applicable" "√ Not applicable"
(2). Prospective application
"□ Applicable" "√ Not applicable"
2. Debt restructuring
"□ Applicable" "√ Not applicable"
3. Asset exchange
(1). Non-monetary exchange
"□ Applicable" "√ Not applicable"
(2). Other asset exchange
"□ Applicable" "√ Not applicable"
4. Annuity plan
"□ Applicable" "√ Not applicable"
5. Discontinued operations
"□ Applicable" "√ Not applicable"
6. Segments
(1). Basis and accounting policies for reporting segments
"√ Applicable" "□ Not applicable"
The Company classifies operating segments given its organizational structure, managementrequirements and internal reporting policies. An operating segment is a component that meets the
following conditions: ① it can earn revenues and incur expenses in daily activities; ② its operatingresults are reviewed regularly by the management to make decisions about resources to be allocated to thecomponent and assess its performance; ③ accounting information relating to financial position,operating results and cash flows about the component are available to the Company through analysis. Twoor more operating segments that bear similar economic characteristics and meet certain conditions can becombined into one operating segment.
The Company classifies reporting segments based on operating segments with operating revenue,operating cost, assets and liabilities classified by the same type of operating entities.
(2). Financial information of reporting segments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Management head office | Agriculture and animal husbandry | PV | Offsets among segments | Total |
| Total assets | 36,610,286,905.30 | 11,524,665,011.98 | 75,252,463,827.82 | 35,137,423,622.94 | 88,249,992,122.16 |
| Total liabilities | 6,501,953,299.16 | 9,404,038,873.79 | 52,343,252,239.50 | 21,655,852,428.45 | 46,593,391,984.00 |
| Operating revenue | 24,590,256,728.92 | 38,184,020,831.78 | 3,308,475.76 | 62,770,969,084.94 | |
| Operating cost | 22,258,698,101.39 | 22,984,446,347.90 | 45,243,144,449.29 |
(3). Note on reasons why the Company has no reporting segments or cannot disclose the total assets
and total liabilities of each reporting segment"□ Applicable" "√ Not applicable"
(4). Other notes
"□ Applicable" "√ Not applicable"
7. Important transactions or events with influence on decisions of investors"□ Applicable" "√ Not applicable"
8. Others
"√ Applicable" "□ Not applicable"
(1) Pledge of the Company's shares held by the controlling shareholder
As of December 31, 2021, Tongwei Group Co., Ltd. held 1,974,022,515 shares in the Company ofwhich, 529,150,000 were pledged for financing purpose.
(2) Impact of bill pool service on the Company's assets and liabilities
Bill-based settlement is a common practice in PV industry where the Company operates. With thegrowing business of Tongwei and the introduction of bill pool service, undue banker's acceptances arepledged by the Company for issuing banker's acceptances payable to pay suppliers, leading to significanceincrease in banker's acceptances payable and receivable. At the end of 2021, the balances of banker'sacceptances receivable and payable reached 11,406,947,300 yuan and 9,761,984,500 yuan respectively,accounting for 12.93% of total assets and 20.95% of total liabilities, having impacted the L/A ratio by 5.87ppts. Refer to the following table for details (unit: 10,000 yuan).
| Item | Consolidated amount | Effect | Amount net of effect |
| Total current assets | 2,874,901.66 | -976,198.45 | 1,898,703.21 |
| Total non-current assets | 5,950,201.95 | 5,950,201.95 | |
| Total assets | 8,824,999.21 | -976,198.45 | 7,848,800.76 |
| Total current liabilities | 2,835,964.64 | -976,198.45 | 1,859,766.19 |
| Total non-current liabilities | 1,823,374.56 | 1,823,374.56 | |
| Total liabilities | 4,659,339.20 | -976,198.45 | 3,683,140.75 |
| L/A ratio | 52.80% | 46.93% |
(3) Progress for obtaining the title for land used for phase III and phase IV of Tongwei Solar(Chengdu) Co., Ltd.
The phase III and phase IV are located in No.5 and No. 6 groups of Bajiao community, Huangjiasubdistrict, and No.5 group of Wangjiachang community, Shuangliu district, Chengdu for a total land areaof 340 Mu. The Company has not obtained the title for 160 Mu including 60 Mu in litigation. The plaintiffChengdu Guigu Environment Technology Co., Ltd withdrew its claims on August 16, 2021. As a result,the license for land use is in progress.
(4) Loss from scrap of non-current assets
The 2021 loss from scrap of non-current assets was 451,946,700 yuan detailed as below:
1) In order to increase the benefits of assets and install high-efficiency module facilities, the Companyscraped the facility and equipment for multicrystalline solar cell production line in Hefei Solar. Theoriginal carrying value of scraped asset is 1,869,433,000 yuan, and the carrying value after scrap is433,755,700 yuan. The net loss from scrap net of expected residual value is 385,044,500 yuan.
2) Tongwei Solar (Chengdu) Co., Ltd. upgraded its production line for monocrystalline solar cellsand scrapped the removed assets. The original carrying value of scraped asset is 37,252,700 yuan, and thecarrying value after scrap is 25,456,000 yuan. The net loss from scrap net of expected residual value is24,350,400 yuan.
No important matters other that the above-mentioned ones required disclosure as of December 31,2021.
(5) Leases
The Company as lessee:
| Item | Amount (in 10,000 yuan) |
| Interest expense on lease liabilities | 12,174.18 |
| Short-term lease expense subject to simplified treatment carried into relevant assets or current profit and loss | 1,937.19 |
| Low-value lease expense subject to simplified treatment carried into relevant assets or current profit and loss (excluding short-term lease expense from low-value assets) | 0 |
| Variable lease payments not included into the measurement of lease liabilities carried into relevant assets or current profit and loss | 0 |
| Income received subleases of right-of-use rights | 23,725.84 |
| Total cash outflows relating to leases (Note 1) | 68,673.02 |
| Relevant gain or loss on leasebacks | 0 |
① Total cash outflows relating to leases include rents calculated and paid under lease liabilities andshort-term lease expenses, excluding relevant leaseback expenses when the leaseback does not qualify asa sale.
② Refer to “risks relating to financial instruments” for details on analysis of maturity of leaseliabilities.
XVI. Notes to main items of parent's financial statements
1. Accounts receivable
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Age | Closing balance |
| Within 1 year | 42,509,610.28 |
| 1- 2 years | 346,143.87 |
| 2- 3 years | |
| Over 3 years | 861,921.96 |
| Total | 43,717,676.11 |
(2). Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Closing balance | Opening balance | ||||||||
| Balance | Provision for bad debts | Carrying value | Balance | Provision for bad debts | Carrying value | |||||
| Amount | Percent (%) | Amount | Provision (%) | Amount | Percent (%) | Amount | Provision (%) | |||
| Creation of provision for a single bad debt | ||||||||||
| Including: | ||||||||||
| Creation of provision for a group of bad debts | 43,717,676.11 | 100 | 3,022,016.86 | 6.91 | 40,695,659.25 | 4,065,977.45 | 100 | 1,063,230.60 | 26.15 | 3,002,746.85 |
| Including: | ||||||||||
| Group 4 | 43,717,676.11 | 100 | 3,022,016.86 | 6.91 | 40,695,659.25 | 4,065,977.45 | 100 | 1,063,230.60 | 26.15 | 3,002,746.85 |
| Total | 43,717,676.11 | / | 3,022,016.86 | / | 40,695,659.25 | 4,065,977.45 | / | 1,063,230.60 | / | 3,002,746.85 |
Creation of provision for a single bad debt:
"□ Applicable" "√ Not applicable"Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"Creation of provision for groups: Group 4
Unit: Yuan Currency: CNY
| Name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Within 1 year | 42,509,610.28 | 2,125,480.51 | 5.00 |
| 1- 2 years | 346,143.87 | 34,614.39 | 10.00 |
| 2- 3 years | |||
| Over 3 years | 861,921.96 | 861,921.96 | 100.00 |
| Total | 43,717,676.11 | 3,022,016.86 | 6.91 |
Criteria for recognizing accounts receivables regarding the creation of provision for a group of bad debts:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for expected credit loss:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model for expected credit loss:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Current change | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Bad debt provision for accounts receivable | 1,063,230.60 | 1,894,628.26 | 64,158.00 | 3,022,016.86 | ||
| Total | 1,063,230.60 | 1,894,628.26 | 64,158.00 | 3,022,016.86 | ||
Significant amounts recovered or reversed in current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Recovered or reversed amount | Recovery method |
| Customer 1 | 34,158.00 | Recovery of bad debts in prior period |
| Customer 2 | 30,000.00 | Recovery of bad debts in prior period |
| Total | 64,158.00 |
Other notesNone.
(4). Accounts receivable written off in current period
"□ Applicable" "√ Not applicable"Significant accounts receivable written off"□ Applicable" "√ Not applicable"
(5). Top five entities in accounts receivable at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Closing balance | Percent in the total accounts receivable at the end of the period (%) | Closing balance of provision for bad debts |
| Entity 1 | 17,285,675.87 | 39.54 | 864,283.79 |
| Entity 2 | 9,455,489.99 | 21.63 | 472,774.50 |
| Entity 3 | 9,017,565.12 | 20.63 | 450,878.26 |
| Entity 4 | 2,150,387.74 | 4.92 | 107,519.39 |
| Entity 5 | 1,378,663.24 | 3.15 | 68,933.16 |
| Total | 39,287,781.96 | 89.87 | 1,964,389.10 |
(6). Accounts receivable de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(7). Amounts of assets and liabilities generated due to transfer of accounts receivable andcontinuing involvement"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Other receivables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Interest receivable | ||
| Dividend receivable | ||
| Other receivables | 20,560,977,497.02 | 12,569,916,260.88 |
| Total | 20,560,977,497.02 | 12,569,916,260.88 |
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(4). Dividend receivable
"□ Applicable" "√ Not applicable"
(5). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Age | Closing balance |
| Within 1 year | 21,316,259,319.76 |
| 1- 2 years | 1,469,008.56 |
| 2- 3 years | 1,289,388.15 |
| Over 3 years | 3,149,244.09 |
| Total | 21,322,166,960.56 |
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Payment type | Closing balance | Opening balance |
| Current accounts with related parties | 21,267,261,376.21 | 13,087,118,075.50 |
| Performance bond | 43,495,417.81 | 4,844,381.00 |
| Others | 11,410,166.54 | 8,141,079.34 |
| Total | 21,322,166,960.56 | 13,100,103,535.84 |
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Provision for bad debts | Stage I | Stage II | Stage III | Total |
| 12-Month expected credit loss | Lifetime expected credit loss (without credit impairment) | Lifetime expected credit loss (with credit impairment) | ||
| Balance on Jan-1-2021 | 530,187,274.96 | 530,187,274.96 | ||
| The Jan-1-2021 balance during the current period | ||||
| -- Converted into stage II | ||||
| -- Converted into stage III | -769,954.49 | 769,954.49 | ||
| -- Reversed into stage II | ||||
| -- Reversed into stage I | ||||
| Creation in current period | 231,772,143.07 | 231,772,143.07 | ||
| Reversal in current period | ||||
| Clear in current period | ||||
| Write-off in current period | -769,954.49 | -769,954.49 | ||
| Other changes | ||||
| Balance on December 31, 2021 | 761,189,463.54 | 761,189,463.54 |
Note on significant changes in balances of other receivables for which their provisions were changed incurrent period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financialinstruments for current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Current change | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Other receivables | 530,187,274.96 | 231,772,143.07 | 769,954.49 | 761,189,463.54 | ||
| Total | 530,187,274.96 | 231,772,143.07 | 769,954.49 | 761,189,463.54 | ||
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Other receivables written off in current period | 769,954.49 |
Significant receivable written off:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Nature of other receivables | Written off amount | Write-off reason | Write-off procedure | Whether the amount is generated from a related-party transaction |
| Customer 1 | Lease payments for water surface (land) | 495,909.04 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 2 | Performance bond for water surface | 150,969.00 | The payment is expected unrecoverable | Approval under due procedures | No |
| Other 5 customers | 123,076.45 | The payment is expected unrecoverable | Approval under due procedures | No | |
| Total | 769,954.49 | / |
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(6). Top five entities in other receivables at the end of the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Payment type | Closing balance | Age | Percent in the total other receivables at the end of the period (%) | Provision for bad debts closing balance |
| Tongwei Solar Co., Ltd. | Current accounts with related parties | 3,720,058,219.01 | Within 1 year | 17.45 | |
| Tongwei Solar (Chengdu) Co., Ltd. | Current accounts with related parties | 2,757,224,362.96 | Within 1 year | 12.93 | |
| Yongxiang Co., Ltd. | Current accounts with related parties | 1,807,871,698.78 | Within 1 year | 8.48 | |
| Tongwei Solar (Meishan) Co., Ltd. | Current accounts with related parties | 1,242,695,466.28 | Within 1 year | 5.83 | |
| Sichuan Yongxiang Silicon Materials Co., Ltd. | Current accounts with related parties | 886,829,191.57 | Within 1 year | 4.16 | |
| Total | 10,414,678,938.60 | 48.85 |
(7). Grants receivable
"□ Applicable" "√ Not applicable"
(8). Other receivables de-recognized due to transfer of financial assets
"□ Applicable" "√ Not applicable"
(9). Amounts of assets and liabilities generated due to transfer of other receivables and continuing involvement"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
3. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Balance | Impairment provision | Carrying value | Balance | Impairment provision | Carrying value | |
| Investments into subsidiaries | 17,022,660,757.00 | 43,292,356.80 | 16,979,368,400.20 | 13,629,952,348.59 | 19,271,456.80 | 13,610,680,891.79 |
| Investments into associates and joint ventures | 430,587,718.26 | 430,587,718.26 | 225,720,367.11 | 225,720,367.11 | ||
| Total | 17,453,248,475.26 | 43,292,356.80 | 17,409,956,118.46 | 13,855,672,715.70 | 19,271,456.80 | 13,836,401,258.90 |
(1). Investments into subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Investee | Opening balance | Current increase | Current decrease | Closing balance | Impairment provision in current period | Closing balance of impairment provision |
| 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 Aquaculture 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 Ronglai Tongwei Feed Co., Ltd. | 16,000,000.00 | 16,000,000.00 | ||||
| Sichuan Tongguang Construction Engineering Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Tongwei Agricultural Finance Guarantee Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Panzhihua Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| 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. | 12,103,854.14 | 12,103,854.14 | ||||
| Kunming Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Shandong Tongwei Feed Co., Ltd. | 703,760.04 | 703,760.04 | ||||
| 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 | ||||
| Huaian 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 Feed 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 | 50,000,000.00 | 151,859,769.84 | |||
| 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 William 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 | ||||
| Haerbin Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Nanjing Tongwei Aquaculture 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 Holdings 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 Tongwei Biotechnology Co., Ltd. | - | 50,000,000.00 | 50,000,000.00 | |||
| Sichuan Tongwei Food Co., Ltd. | 48,000,000.00 | 16,000,000.00 | 64,000,000.00 | |||
| Hanshou Tongwei Feed Co., Ltd. | 27,900,000.00 | - | 27,900,000.00 | |||
| Yongxiang Co., Ltd. | 4,103,699,373.39 | 2,284,361,365.68 | 6,388,060,739.07 | |||
| Tongwei Solar (Hefei) Co., Ltd. | 2,884,624,940.43 | 2,884,624,940.43 | 24,020,900.00 | 24,020,900.00 | ||
| Tianmen Tongwei Aquaculture Technology Co., Ltd. | 25,939,300.00 | 25,939,300.00 | ||||
| Sichuan Fusion Link Co., Ltd. | 1,200,000.00 | 1,200,000.00 | ||||
| Sichuan Willtest Technology Co., Ltd. | 20,894,961.76 | 553,874.73 | 21,448,836.49 | |||
| Wuxi Tongwei Biotechnology Co., Ltd. | 150,007,603.05 | 150,007,603.05 | ||||
| Tongwei New Energy Co., Ltd. | 4,055,911,940.76 | 4,055,911,940.76 | ||||
| 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 Feed Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | 40,800,000.00 | 9,885,000.00 | 50,685,000.00 | |||
| Sichuan Yongxiang New Materials Co., Ltd. | 83,053,975.00 | 83,053,975.00 | ||||
| Nanchang Tongwei Biotechnology Co., Ltd. | 96,000,000.00 | 96,000,000.00 |
| Yangjiang Haiyi Securities Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Sichuan Chunyuan Ecological Farming 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 | ||||
| Ningbo Tech-bank Feed Technology Co., Ltd. | 941,052,018.29 | 941,052,018.29 | ||||
| Qingdao Qihao Biotechnology Co., Ltd. | 76,369,224.71 | 76,369,224.71 | ||||
| Ningbo Tech-bank Biotechnology Co., Ltd. | 18,340,900.00 | 18,340,900.00 | ||||
| Yancheng Tech-bank Feed Technology Co., Ltd. | 61,200,000.00 | 61,200,000.00 | ||||
| Nanning Aigefei Feed Co., Ltd. | 29,000,000.00 | 29,000,000.00 | ||||
| Bengbu Tech-bank Feed Technology Co., Ltd. | 28,300,000.00 | 28,300,000.00 | ||||
| Hubei Tech-bank Feed Co., Ltd. | 4,400,000.00 | 4,400,000.00 | ||||
| Dongying Tech-bank Feed Technology Co., Ltd. | 10,600,000.00 | 10,600,000.00 | ||||
| Total | 13,629,952,348.59 | 3,530,062,383.41 | 137,353,975.00 | 17,022,660,757.00 | 24,020,900.00 | 43,292,356.80 |
(2). Investments into associates and joint ventures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Investment Unit | Opening balance | Current change | Closing balance | Closing balance of impairment provision | |||||||
| Additional investments | Decreased investments | Investment gain or loss under equity method | Adjustment of other comprehensive income | Other changes in equity | Declared cash dividend or profit | Impairment provision | Others | ||||
| I. Joint ventures | |||||||||||
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | 5,737,908.83 | 5,541,776.67 | -196,132.16 | ||||||||
| Hefei Tongwei Jiuding Feed Co., Ltd. | 5,228,897.07 | 1,851,778.58 | -1,085,451.82 | 2,291,666.67 | |||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 9,757,770.36 | - | -655,071.22 | 2,691,000.00 | 6,411,699.14 | ||||||
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 3,714,781.43 | 3,620,921.86 | -93,859.57 | - | |||||||
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 101,225,309.42 | 3,881,464.81 | 105,106,774.23 | ||||||||
| Sub-total | 125,664,667.11 | 11,014,477.11 | 1,850,950.04 | 4,982,666.67 | 111,518,473.37 | ||||||
| II. Associates | |||||||||||
| Bohai Aquaculture Co., Ltd. | 100,055,700.00 | 1,030,906.22 | 88,513.09 | -1,571,789.65 | 99,603,329.66 | ||||||
| Haimao Seed Industry Technology Co., Ltd. | 150,000,000.00 | -13,461,047.10 | 170,573.67 | -2,307.33 | 136,707,219.24 | ||||||
| Anhui Tech-bank Feed Technology Co., Ltd. | 60,000,000.00 | -643,982.62 | 59,356,017.38 | ||||||||
| Anhui Tech-bank Biotechnology Co., Ltd. | 23,000,000.00 | 402,678.61 | 23,402,678.61 | ||||||||
| Sub-total | 100,055,700.00 | 233,000,000.00 | -12,671,444.89 | 259,086.76 | -1,574,096.98 | 319,069,244.89 | |||||
| Total | 225,720,367.11 | 233,000,000.00 | 11,014,477.11 | -10,820,494.85 | 259,086.76 | -1,574,096.98 | 4,982,666.67 | 430,587,718.26 |
Other notes:
There are not significant limitations on realization of investments and remittance of investment gains.
4. Operating revenue and operating cost
(1). Operating revenue and operating cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount | ||
| Revenue | Cost | Revenue | Cost | |
| Main operating activities | 4,554,199,847.43 | 3,998,297,572.06 | 4,074,241,307.34 | 3,607,501,899.05 |
| Other activities | 190,862,521.70 | 139,776,936.95 | 118,253,970.35 | 29,896,596.70 |
| Total | 4,745,062,369.13 | 4,138,074,509.01 | 4,192,495,277.69 | 3,637,398,495.75 |
(2). Revenue from contracts with customers
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
Other notes:
None.
5. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Long-term equity investment gains under cost method | 5,047,065,159.73 | 4,058,240,234.33 |
| Gain on long-term equity investment under equity method | -10,820,494.85 | -3,090,231.86 |
| Gain on disposal of long-term equity investment | 82,577,082.35 | -360,357,041.95 |
| Investment gain on held-for-trading financial assets in the holding period | ||
| Dividend income on other equity investments in the holding period | ||
| Interest income on debt investments in the holding period | ||
| Interest income on other debt investments in the holding period | ||
| Gain on disposal of held-for-trading financial assets | ||
| Investment gain on disposal of other equity investments | ||
| Investment gain on disposal of debt investments | ||
| Investment gain on disposal of other debt investments | ||
| Debt restructuring gain | ||
| Gain on wealth management products purchased from banks | 23,368,421.89 | 1,298,783.09 |
| Discount interest on receivable financing | -15,207,023.08 | |
| Total | 5,126,983,146.04 | 3,696,091,743.61 |
Other notes:
None.
6. Others
"√ Applicable" "□ Not applicable"
The Company coordinates funds of all subsidiaries. The fund flows between the Company and itsparent company are reflected in “other cash received relating to financing activities” or “other cash paidrelating to financing activities” of “parent company's cash flow statement” as quarterly net amount forfinancing activities.XVII. Additional information
1. Current non-recurring gains and losses
"√ Applicable" "□ Not applicable"
Unit: 元 Currency: CNY
| Item | Amount | Notes |
| Profit and loss on disposal of non-current assets | -77,844,159.34 | |
| Tax refund, reduction or exemption approved beyond authority or without official approval | ||
| Government subsidies included in current profit and loss (excluding ration or quota-based on-gonging government subsidies closely related to the normal operating businesses of the Company) | 345,025,134.17 | |
| Gain or loss from contingencies not relating to normal operating activities of the Company | ||
| In addition to the effective hedging business related to the normal business operations of the Company, the fair value gain and loss from held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, and derivative financial liabilities, as well as investment returns from disposal of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative financial liabilities, and other debt investments | 54,403,941.63 | |
| Reversal of impairment provision for accounts receivable and contract assets subject to separate impairment test | ||
| Gain or loss from outward entrusted loans | ||
| Gain or loss from fair value change of investment properties subsequently measured at fair value | ||
| Effect on current profit and loss of one-time adjustment under taxation and accounting laws and regulations | ||
| Custody income from entrusted operations | ||
| Non-operating revenue and expenses other than aforementioned items | -444,426,951.82 | |
| Other non-recurring gain and loss items | ||
| Less: Effects of income tax | 163,036,399.95 | |
| Effects of minority interest | -7,310,612.82 | |
| Total | -278,567,822.49 |
Where the Company lists the non-recurring gain and loss items defined in the Explanatory Announcementon Information Disclosure for Companies Offering Their Securities to the Public No.1 - Non-RecurringGain and Loss Items as recurring gain and loss items, notes should be provided."□ Applicable" "√ Not applicable"
2. Net yield on assets and earnings per share
"√ Applicable" "□ Not applicable"
| Profit in reporting period | Earnings per share |
| Weighted average return on net assets (%) | Basic earnings per share | Diluted earnings per share | |
| Net profit attributable to common shareholders of the Company | 24.24 | 1.8234 | 1.8234 |
| Net profit excluding non-recurring profits and losses attributable to common shareholders of the Company | 25.07 | 1.8852 | 1.8852 |
3. Differences between accounting data under domestic and foreign accounting standards"□ Applicable" "√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chairman of the board of directors: Xie YiSubmission date approved by the board of directors: April, 22 2022
Revision"□ Applicable" "√ Not applicable"