Stock Code: 600438 Short Name: Tongwei Co., Ltd.
Tongwei Co., Ltd.2022 Annual Report
Important NoticeI. The board of directors, supervisory committee as well as directors, supervisors and senior
managers of the Company are responsible for the authenticity, accuracy and completeness of theinformation contained in this Annual Report without false records, misleading statements ormaterial omissions, and assume joint and several liability therefor.
II. All directors of the Company have been present in the board meeting.
III. Sichuan Huaxin (Group) CPA (Special General Partnership) has issued a standard unqualifiedopinion on the Company.
IV. Liu Shuqi, Head of the Company, Zhou Bin, Head of accounting affairs and Gan Lu, Head of
accounting 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 current period resolved in the board meetingThe Company will distribute profits for the year 2022 based on its total share capital on the recorddate. A cash dividend of 28.58 yuan per 10 shares (including tax) will be distributed to all shareholders. Asof December 31, 2022, the total share capital of the Company was 4,501,946,097 shares, based on whichthe total cash dividend to be distributed is 12,866,561,945.23 yuan (including tax). If there is any change inthe total share capital before the record date, the total dividend amount will remain unchanged, and thedividend per share will be adjusted accordingly. The above profit distribution proposal will be submitted tothe Company’s general meeting for approval before execution.
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 investorsshould pay attention to risks.
VII. Any funds possessed by the controlling shareholder and other related parties for non-operating
purposes?No
VIII. Any outward guarantee provided by the Company in violation of the prescribed
decision-making procedures?No
IX. More than half of the directors cannot ensure the truthfulness, accuracy, and completeness of
the annual report disclosed by the Company?No
X. Notice on material 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"
*The 2022 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any discrepancy arises between the English and the Chinesecontent, the Chinese version shall prevail. The English version here was only used for investors’ reference.
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 ....................................................................................................... 40
Section V. Environmental and Social Responsibility ......................................................................... 62
Section VI. Important Matters .............................................................................................................. 75
Section VII. Share Changes and Shareholders ...................................................................................... 91
Section VIII. Preference Shares .............................................................................................................. 98
Section IX. Bonds ................................................................................................................................ 98
Section X. Financial Report .............................................................................................................. 102
| List of documents to be checked | 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:
| Definitions of frequently used 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 Tongwei 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. |
| Tongwei Media | refers to | Chengdu Tongwei Culture Media Co., Ltd. |
| Phase II 50,000-ton High-purity Polysilicon Project of Yongxiang New Energy | refers to | Leshan Phase II 50,000-ton high-purity polysilicon project, i.e., technical renovation project on PV silicon material manufacturing (Phase II High-purity Polysilicon Project) |
| Phase I 50,000-ton High-purity Polysilicon Project of Yunnan Tongwei | refers to | Baoshan Phase I 50,000- ton high-purity polysilicon project, i.e., High-purity Green Energy Project (Phase I 50,000-ton High-purity Polysilicon Project) |
| Phase II 50,000-ton High-purity Polysilicon Project of Inner Mongolia Tongwei | refers to | Baotou Phase II 50,000-ton High-purity Polysilicon Project, i.e., PV Silicon Material Manufacturing Project (Phase II 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 efficient 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 efficient 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 efficient silicon-based solar cells with an annual capacity of 7.5 GW (Jintang Phase I) |
| Tonghe Project | refers to | An efficient 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 |
| 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. |
| TCL Zhonghuan | refers to | TCL Zhonghuan Renewable Energy Technology 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. |
| Yuze Semiconductor | refers to | Yuze Semiconductor (Yunnan) Co., Ltd. |
| Gokin Solar | refers to | Gokin Solar Co., Ltd. |
| Shuangliang Silicon Materials | refers to | Shuangliang Silicon Materials (Baotou) 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 bonds |
| W | refers to | Watt, the unit of power |
| KW, MW, and GW | refers to | Units of power, 1 KW = 1000 W, 1 MW = 1000 KW, and 1 GW = 1000 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. |
| TNC | refers to | Tongwei N-passivated Contact Cell, a Tongwei solar cell designed with type-N passivated contact technology. it is an advanced solar cell that can improve the conversion efficiency by leveraging the PECVD technology developed by Tongwei. |
| TBC | refers to | Tongwei Back Contact Cell, a Tongwei solar cell designed with back contact technology. |
| THC | refers to | Tongwei HJT Cell, a Tongwei solar cell designed with HJT technology. |
| Flexible support | refers to | A large spanning support consisting of prestrained flexible rigging structures that can increase the land utilization. |
| SE | refers to | Selective-emitter that influences the conductive properties of solar cells by high-doping the electrode contact area and low-doping the light absorption area. |
| Corab S. A | refers to | A leading Polish producer of solar energy system and a distributor of well-known branded equipment |
| PVO International | refers to | A leading supplier of solar cells, inverters, photovoltaic systems and materials across Europe |
| Energy 3000 Solar GmbH | refers to | A leading Austrian provider of energy products, solutions and services in the photovoltaic and energy storage system. |
| Certisolis | refers to | The only French certification body authorized by the Energy Regulatory Commission (CRE) to issue “simplified carbon footprint assessments” for solar power plants. |
| InfoLink Consulting | refers to | A global leader of research and consulting services in the renewable energy and technology sector |
| CINNOResearch | refers to | CINNO Research Institute |
| CPIA | refers to | China Photovoltaic Industry Association |
| IEA | refers to | International Energy Agency |
| Reporting period | refers to | The period from January 1, 2022 to December 31, 2022 |
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 | Liu Shuqi |
II. Contacts and contact details
| Secretary of the Board of Directors | Representative of Securities Affairs | |
| Name | Yan Ke | Li Huayu |
| Address | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone | No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China (Sichuan) Pilot Free Trade Zone |
| 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 general 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 location | 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 location | 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 for offering of convertible bonds: from March 18, 2022 to December 31, 2023 |
VII. Major accounting data and financial indicators within the latest three years(I). Major accounting data
Unit: Yuan Currency: CNY
| Major accounting data | 2022 | 2021 | YoY change (%) | 2020 | ||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Operating revenue | 142,422,517,994.99 | 64,829,996,083.91 | 63,491,070,520.12 | 119.69 | 44,557,589,877.68 | 44,200,270,334.23 |
| Net profit attributable to shareholders of the listed company | 25,726,447,236.27 | 8,109,125,091.40 | 8,207,920,822.18 | 217.25 | 3,565,490,330.73 | 3,607,923,359.56 |
| Net profit net of non-recurring gain and loss attributable to shareholders of the listed company | 26,547,373,729.76 | 8,387,692,913.89 | 8,486,488,644.67 | 216.50 | 2,366,121,200.54 | 2,408,554,229.37 |
| Net cash flow generated from operating activities | 43,817,909,631.70 | 7,474,393,433.33 | 7,618,273,876.72 | 486.24 | 2,964,584,179.22 | 3,024,927,931.94 |
| 2022 close | 2021 close | YoY change (%) | 2020 close | |||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Net assets attributable to shareholders of the listed company | 60,797,263,389.21 | 37,183,020,306.85 | 37,502,570,958.36 | 63.51 | 30,320,650,109.00 | 30,541,405,029.73 |
| Total assets | 145,243,793,631.19 | 87,895,197,228.99 | 88,249,992,122.16 | 65.25 | 64,017,869,793.39 | 64,251,948,070.91 |
(II). Major financial indicators
| Major financial indicators | 2022 | 2021 | YoY change (%) | 2020 | ||
| After adjustment | Before adjustment | After adjustment | Before adjustment | |||
| Basic earnings per share (yuan/share) | 5.7149 | 1.8014 | 1.8234 | 217.25 | 0.8480 | 0.8581 |
| Diluted earnings per share (yuan/share) | 5.4889 | 1.8014 | 1.8234 | 204.70 | 0.8367 | 0.8466 |
| Basic earnings per share net of non-recurring gain and loss (yuan/share) | 5.8973 | 1.8633 | 1.8852 | 216.50 | 0.5628 | 0.5729 |
| Weighted average return on net assets (%) | 52.36 | 24.14 | 24.24 | + 28.22 ppts | 16.08 | 16.13 |
| Weighted average return on net assets excluding of non-recurring gain and loss (%) | 54.03 | 24.97 | 25.07 | + 29.06 ppts | 10.67 | 10.77 |
Note on major accounting data and financial indicators within the latest three years by the end of reportingperiod"√ Applicable" "□ Not applicable"
The Ministry of Finance issued the “Interpretation No. 15 of Accounting Standard for BusinessEnterprises” (Cai Kuai [2021] No. 35) (“Interpretation No. 15”) on December 31, 2021, which clarifies theaccounting treatment of products or by-products produced by enterprises for sales before the fixed assetsreach the intended usable state or during the research and development process. According to relevantprovisions of Interpretation No. 15, the Company implemented the relevant provisions of Interpretation No.15 and make retrospective adjustments from January 1, 2022.
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 Accounting
Standard and China Accounting Standard"□ Applicable" "√ Not applicable"
(II). Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under Foreign Accounting
Standard and China Accounting Standard"□ Applicable" "√ Not applicable"
(III). Note on differences between China and foreign accounting standards:
"□ Applicable" "√ Not applicable"
IX. 2022 major financial data by quarters
Unit: Yuan Currency: CNY
| Q1 (Jan - Mar) | Q2 (Apr - Jun) | Q3 (Jul - Sept) | Q4 (Oct - Dec) | |
| Operating revenue | 24,685,190,176.42 | 35,654,024,725.73 | 41,744,959,822.97 | 40,338,343,269.87 |
| Net profit attributable to shareholders of the listed company | 5,194,494,567.14 | 7,029,292,140.45 | 9,506,614,023.42 | 3,996,046,505.26 |
| Net profit net of non-recurring gain and loss attributable to shareholders of the listed | 5,134,900,689.19 | 7,358,044,406.71 | 9,487,789,588.89 | 4,566,639,044.97 |
| company | ||||
| Net cash flow generated from operating activities | 3,248,916,632.41 | 10,187,380,023.49 | 15,446,295,023.92 | 14,935,317,951.88 |
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: Yuan Currency: CNY
| Non-recurring gain and loss items | 2022 amount | Notes (if applicable) | 2021 amount | 2020 amount |
| Profit and loss on disposal of non-current assets | -12,315,759.20 | -77,844,159.34 | 1,541,869,733.03 | |
| 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 | 387,940,097.37 | 345,025,134.17 | 296,657,874.92 | |
| 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 | -130,149,063.69 | 54,403,941.63 | 14,385,110.27 | |
| Non-operating revenue and expenses other than aforementioned items | -1,235,055,137.99 | -444,426,951.82 | -439,396,332.17 | |
| Less: Effects of income tax | -156,512,227.43 | 163,036,399.95 | 209,491,363.52 | |
| Effects of minority interest (after tax) | -12,141,142.59 | -7,310,612.82 | 4,655,892.34 | |
| Total | -820,926,493.49 | -278,567,822.49 | 1,199,369,130.19 |
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"
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 2022, against the backdrop of escalating Russia and Ukraine conflict, the world political andeconomic situation was turbulent, and games between greater powers were impacting global supply chains.The prices of commodities, in particular energy and food, continued to rise, and structural supply shortagespushed up inflation levels in major economies. According to the International Monetary Fund estimates, theworld’s average consumer price index grew by 8.8% in 2022, the highest inflation level since the 21stcentury started. The economic growth rate declined, and the recovery fell short of expectations across theglobe. Although facing triple pressures of shrinking demand, supply shocks, and weakening expectations,China timely introduced policies to stabilize its economy, maintaining the steady growth of the domestic
economy. According to the data from the National Bureau of Statistics, China’s GDP reached 121 trillionyuan in 2022, a year-on-year increase of 3%, continuing to lead the world’s major economies in terms ofgrowth rate.
During the reporting period, the photovoltaic industry maintained high-speed growth, and the feedindustry made steady progress. The Company firmly grasped the opportunities for industrial developmentand adhered to the operation policy of “focus, execution and efficiency” as a response to the complicatedeconomic environment, having conducted businesses in a stable manner with great performance. In 2022,the Company recorded a revenue of 142.423 billion yuan for a year-on-year growth of 119.69%; net profitattributable to shareholders of the listed company of 25.726 billion yuan for a year-on-year growth of
217.25%; net profit excluding non-recurring gain and loss attributable to shareholders of the listedcompany of 26.547 billion yuan for a year-on-year growth of 216.50%. The Company’s net weightedaverage return on assets for the year was 52.36%, and the year-end debt to asset ratio was 49.57%, adecrease of 3.44 percentage points from the end of last year.
(I) Feed and industry chain
In 2022, China’s feed industry continued to develop stably in the context of significant economicgrowth pressures. The total production of industrial feed reached 302.234 million tons, a year-on-yearincrease of 3%. Among them, the production of pig feed was 135.975 million tons, a year-on-year increaseof 4.0%; the production of poultry feed 121.363 million tons, a year-on-year decrease of 0.04%; and theproduction of aquatic feed 25.257 million tons, a year-on-year increase of 10.2%. Affected by internationalsituation and extreme weather, the cost of feed raw materials has significantly increased. According toWind, the prices of corn and soybean meal increased by 7.3% and 31.9% respectively, compared to thebeginning of 2022 year. On the other hand, in some domestic regions, there was a temporary economicslowdown and insufficient consumer demand, which resulted in lower than expected prices for breedingproducts. Feed companies faced dual pressures from upstream and downstream operations. While topcompanies effectively withheld risks with their comprehensive competitive advantages, survival anddevelopment for small and medium-sized companies remained difficult.
In 2022, the Company integrated its feed and related industrial chain businesses by establishingTongwei Agriculture Development Co., Ltd., further enhancing its level of specialized operation. Formaximizing customer benefits, everyone at Tongwei adhered to the “quality policy”, deeply promotedspecialization, standardization and scaled development for mutual development with customers. During thereporting period, the Company’s feed and industrial chain businesses achieved operating income of 31.646billion yuan, a year-on-year increase of 28.69%. The total sales volume of feed was 7.194 million tons, ayear-on-year increase of 30.42%, with sales volumes of livestock and poultry feed and aquatic feedreaching historical highs with year-on-year increases of 41.23% and 18.94% respectively.
In the reporting period, the Company performed the following key tasks:
1. Full effort into specialization, standardization and scaled development for higher corecompetitiveness
The Company adhered to the “quality policy” throughout the year, and focused on promoting“specialization, standardization and scaled” development, achieving remarkable results and furtherstrengthening its competitive advantages, which has been highly recognized by customers. Specialization inprocurement ensures stable feed quality from the source and effectively supports breeding results;specialization in technology combines product development with user needs through a closed-loop processof “market insights, R&D management, product design, and optimization by tracking”, achievingmaximum breeding benefits; product specialization includes regular dynamic reviews of product structure,optimizing it to ensure consistent product quality. In 2022, the Company focused on “productionautomation, business digitalization, and operation standardization” promoting comprehensive costreduction and efficiency improvement in feed production. Through the creation of a “benchmark factory”,it further explored new models of digital production and intelligent management. In 2022, the Companyapplied for 24 patents relating to the “intelligent management system for feed production” andenvironmental protection in feed production. The company achieved one-click startup management for thepuffing machine and developed a set of feed production management modes that can be rolled out, openingnew ways to reduce production costs and improve product quality by reducing labor and increasingautomation. The company focused on both production and sales for scaled development. It improved theefficiency by continuously optimizing the production process and promoting team building, and promotedsales through innovative models such as host marketing and breeding competitions. Through the“Marketing Communication”, a digital application system developed by the Company, it integrated thesupply and demand of its customers, achieving high synergy between production and sales. As a result,several subsidiaries achieved full production and sales, and the Company's capacity utilization rateincreased by 5.40 percentage points year-on-year.
2. Maintaining leading quality by strengthening the advantage in procurement of raw materialsAs a manufacturing process, feed production relies heavily on raw materials, which make up over 90%of the cost and the quality of raw materials directly affects the breeding results. During the reporting period,the prices of feed raw materials were affected by internal and external macro factors, continuing to rise withsignificant fluctuations, which has significantly increased the operating pressure on feed companies. Somecompanies even resorted to low-quality and low-cost raw materials to cut costs. In this context, theCompany adhered to the quality by keeping the procurement strategy of “stable raw materials andconsistent quality”. With a long-term specialized procurement team and mode, it closely tracked the feedraw material market, assessed the timing of procurement, accurately understood the impact of factors suchas exchange rate fluctuations on raw material procurement to avoid future cost fluctuations. The Companyimplemented a rolling cost budget mechanism and used advance procurement for core materials to achievecost optimization. It continued to strengthen cooperation with strategic suppliers, enhanced strategicprocurement of raw materials and factory direct procurement, with major raw material suppliers accountingfor over 75% of the procurement volume and a direct supply rate of 94% for local raw materials, furtherconsolidating its competitive advantage in the raw material supply chain. Through a reasonable supplierevaluation system, the Company adopts site visits before supplier onboarding, spot checks, and evaluationranking to strictly guard against raw material quality risks, and ensured long-term and leading feed qualityfrom the source.
3. Creating new highlights in agriculture and husbandry sectors through a reasonable degree ofdiversification
During the reporting period, while focusing on feed, the Company also fully utilized its professionaladvantages in the fisheries sector and moderately extended its reach around the green aquatic industry chain,creating new highlights in agriculture and husbandry sectors. In 2022, the Company's food business saw ahigh-speed growth in profits, driven in part by its seafood export, which demonstrated a keen understandingof market trends, seized opportunities, and expanded production capacity. As a result, gross marginsincreased significantly, and profits reached an all-time high. The Company also continued to develop itsoffline business by opening new stores and hosting various themed events, such as the “Fresh Journey” andthe “Tongwei Fish Banquet”, which increased customer loyalty and attracted new customers. Thee-commerce business adopted a “platform + community” supply chain model and focused onmid-to-high-end consumers, resulting in a rapid increase in membership numbers and a significantimprovement in operational efficiency. Tongwei Fresh Fish worked hard to build differentiated competitivestrength in product quality with the standardization of facilities and having borne fruits of consistent quality.Throughout the year, the brand’s influence steadily increased, and it secured partnerships with large-scalee-commerce platforms such as Hema and PuPu.
Leveraging its accumulated aquaculture technologies and complete resources in the industry chain,during the reporting period, the Company strategically developed its shrimp farming business. By focusingon building a modern shrimp farming base of zero-emission, automation, digitization, and intelligence, andsupporting it with seedlings, animal health, feed, and equipment, the Company was committed to producingenvironmentally friendly shrimp products of higher survival rate, better quality and lower cost, satisfyingconsumers’ demand for safe and better aquatic products. The Company has achieved results in shrimpseedling cultivation, circular water system, and intelligent aquaculture exploration, and launched a projectfor the annual production of 10,000 tons of shrimp in a factory-farmed manner. The first-phase constructionis currently underway, and is expected to be completed and put into operation within 2023, making it anindustry leader in indoor shrimp farming.
(II) PV business
In 2022, under the stimulus of the Russia-Ukraine conflict, fossil fuel prices surged, and the energycrisis quickly became highlighted. The economic benefits and energy security role of photovoltaic powerwere significantly enhanced, and the global PV installed capacity grew substantially. According to ChinaPhotovoltaic Industry Association (CPIA), the global newly installed PV capacity reached arecord-breaking 230 GW in 2022, a year-on-year increase of 35.3%. China ranked first in the world with
87.41 GW of newly installed PV capacity, a year-on-year increase of 59.3%, followed closely by the EU,with a newly installed capacity of 41.4 GW, a year-on-year increase of 47%. In terms of the manufacturingchain, China’s PV industry achieved excellent performance in 2022 again. According to CPIA, thedomestic PV manufacturing output value reached 1.4 trillion yuan, a year-on-year increase of over 95%.The production of polycrystalline silicon, silicon wafers, cells, and modules reached 827,000 tons, 357 GW,318 GW, and 288.7 GW respectively, with year-on-year increases of 63.7%, 57.5%, 60.7%, and 58.8%. Thetotal export value of products exceeded 50 billion US dollars for the first time, a year-on-year increase of
80.3%, reaching a record high. Due to the uneven production capacity in different parts of the industrialchain, supply and demand contradictions still exist, and product prices fluctuated greatly throughout the
year. However, under the strong support of end-market demand, industrial chain prices still showed anupward trend. Among them, polycrystalline silicon showed the most significant year-on-year increase inprices due to the largest production capacity gap. At the same time, driven by factors such as industrysupply and demand mismatch, technological changes, and rising demand, many players outside the industryentered the PV sector, and existing players expanded production or extended the industrial chain,intensifying market competition.Based on the expected future development of the PV industry and the Company’s judgment about itscompetitive strength, the Company released an Announcement on the Progress of Development Plan andFuture Plan for High-purity Polycrystalline Silicon and Solar Cell Business, stating that the cumulativeproduction capacity of high-purity polycrystalline silicon and solar cells will reach 800,000 to 1 milliontons and 130 to 150 GW respectively from 2024 to 2026. It would also continue to increase its investmentin technological development and enhance lean management levels to increase market share and become aglobal leader in the field of high-purity polycrystalline silicon and solar cells. On the other hand, theCompany has responded to the trend of industry development by giving full play to its advantages in scale,cost, and technology in the industrial chain, and began to expand the business in solar modules in thesecond half of 2022. This ensured that the Company continued to provide customers with more advanced,higher quality, and lower carbon PV products while keeping the long-term stable development of its PVbusiness.In 2022, some regions in China experienced power shortages due to high temperatures, and theindustry underwent technological updates, accelerating the expansion of production capacity. Against thesechallenges, the Company has focused on safety production, technological innovation, and lean managementfor its PV business, worked efficiently and collaboratively to reduce costs and increase efficiency, andfurther enhanced its core competitiveness.
1. High-purity polysilicon
The Company is a global leader in high-purity polysilicon, with industry-leading production capacity,production costs, and product quality. During the reporting period, the production capacity of high-puritypolysilicon remained stable. Although being temporarily affected by objective factors such as hightemperatures and power restrictions, with the rapid operation of new projects, the Company achieved asales volume of 256,800 tons of high-purity polysilicon for the year, a year-on-year increase of 138.41%.As the conflict between Russia and Ukraine accelerated energy transformation, global demand forphotovoltaic end-user installations exceeded expectations during the reporting period, and the supply ofhigh-purity polysilicon products was unable to meet demand, resulting in price surges. The Company'sprofitability in high-purity polysilicon reached a record high, and has recovered all investment costs for itsin-production capacity.
During the reporting period, the Company strengthened its safety responsibility and made workplacesafety and stable operation its top priority. Based on the strict implementation of Yongxiang “SafeProduction Rules and Regulations”, the Company conducted a series of safety-specific activities such as the“100-day safety campaign” and carried out comprehensive checklist-based inspections and investigationsfor continuous and stable operation of production facilities throughout the year and for four-zero targets(zero work injury, zero accident, zero operational error and zero unplanned downtime). In terms ofimproving product efficiency, the Company increased R&D efforts, improved lean management levels, andencouraged all employees to innovate in the form of reasonable proposals by timely delivering incentives.These have effectively improved production performances. The silicon consumption, comprehensiveelectricity consumption, and steam consumption per unit of output in the year all decreased by 2.7%, 10.7%,and 72% year-on-year respectively. The product quality further improved, and the mono-grade ratestabilized above 99%, achieving long-term stable supply to downstream major N-type material customers,and the annual supply of N-type materials increased significantly year-on-year.
In 2022, the Company accelerated the construction and capacity release of all kinds of projectswithout compromising the safety and quality. Among them, the second phase of the Inner MongoliaTongwei 50,000ton project achieved early production and broke the industry's practice of quality ramp-up.The first batch produced met the solar grade standard. Meanwhile, the Company steadily advanced theconstruction of Yongxiang Energy Technology's first phase of 120,000-ton project which is expected to beput into operation in the third quarter of 2023. At that time, the Company's annual production capacity ofhigh-purity polysilicon will exceed 380,000 tons
, and its scale advantages will be further expanded. Inaccordance with its development plan, the Company announced investment plans for Inner Mongolia
The completion of some high-purity polysilicon projects and equipment upgrades and renovations have resulted inproduction capacity increase, and as of the end of the reporting period, the Company's high-purity polysilicon productioncapacity exceeded 260,000 tons.
Tongwei 200,000-ton high-purity polysilicon and supporting projects and Yunnan Tongwei Phase II200,000-ton high-purity polysilicon and supporting projects during the reporting period. The new projectswould adopt the “Eighth Generation Yongxiang Method” process, with larger unit size, lower unitinvestment, better process level, and higher intelligence level, continuing to lead the industry.In line with the principle of long-term cooperation and common development, in 2022, the companysigned new long-term contracts on high-purity polysilicon with silicon wafer companies such as Longi,Yuze Semiconductor, Meeco Silicon Energy, Qinghai Gokin Solar, and Shuangliang Silicon Materials toensure stable product sales. At the same time, the Company continued the equity partnership with Longi onYunnan Tongwei Phase II 200,000-ton high-purity polysilicon project as a part of its way to build strategiccooperation relationships with upstream and downstream partners. The Company will continue to leverageits professional advantages in the high-purity polysilicon segment, provide customers with high-quality andlow-carbon high-purity polysilicon products, and contribute to the development of the industry.
2. Solar cells
During the reporting period, the Company actively seized market opportunities and comprehensivelypromoted the upgrading and transformation of small-size production lines, accelerated the construction ofnew projects, and achieved rapid release of production capacity for 182mm and larger PERC cells,effectively matching market demand. Based on its capacity planning, the Company successively launchedTonghe project, Jintang Phase II, and Meishan Phase III project. Its total production capacity has exceeded70GW, of which the capacity for 182mm and above size exceeds 95%. During the reporting period, theCompany sold 47.98GW, a year-on-year increase of 37.35%. According to InfoLink Consulting, in 2022,the Company still led the world in solar cell shipments and became the first cell manufacturer in theindustry to exceed 100GW in cumulative shipments.At the same time, the Company tapped the potential for cost reduction and efficiency improvement,and through measures such as process improvement, graphic optimization, and use of domestic materials, itachieved a steady increase in PERC cell efficiency and a continuous decrease in material consumptionwhile adapting to the rapid trend of thinning in the industry. Key competitive indicators such as A-level rate,conversion efficiency, fragment rate, and non-silicon cost allowed the Company to remain at theindustry-leading level, and the average non-silicon cost of PERC products decreased by 13% year-on-year.As a leader in the solar cell industry, the Company attaches great importance to changes in celltechnologies by continuously increasing R&D investment. It is one of the earliest companies to invest inGW-level HJT and TOPCon technology pilot lines. The Company focuses on R&D around the scaleproduction of new technologies. During the reporting period, the Company launched TNC cell productsbased on the industry’s first large-size PECVD Poly production line developed on its own regarding theTOPCon technology path. In late November 2022, it put into operation the Meishan 9GW TNC cell project,which is now fully operational and has an average conversion efficiency of 25.5%. If SE and othertechnologies are added, the conversion efficiency is expected to be 25.7%. At the end of the year, theCompany started the construction of the Pengshan 16GW TNC cell project, which is expected to becompleted and put into operation in the second half of 2023. At that time, the Company’s TNC cell capacitywill reach 25GW. In the HJT technology route, the Company has completed the development ofdouble-sided nanocrystalline technology, and the module power has exceeded 720W (210 mm 66-pieceformat). The industry’s first 210 half-cut copper interconnect pilot line has been established, and full-scaledevelopment has been carried out in equipment, process, and materials. The grid line width has beenreduced to below 15μm, the efficiency has increased by more than 0.2% compared to the printing process,and the yield rate has reached 95%, further approaching mass production conditions. In addition to abovetechnology routes, the Company has advanced its R&D effort into cutting-edge technologies such asfull-back contact cells and perovskite/silicon layered cells, all of which have made positive progress.Among them, the perovskite/silicon layered cell laboratory was put into use during the reporting period,and the third-party certified efficiency of small-size perovskite/crystalline silicon layered cells reached
27.19%.
3. Modules
The Company has been deeply involved in the photovoltaic industry for many years. It deployed someproduction capacity since entering the solar cell industry, and based on which, the effort into R&D andmarket development has never stopped. Based on the national dual carbon requirements and in line with thetrend of industry integration, during the reporting period, the Company started to comprehensively developits modules business and build a more competitive photovoltaic industry structure to ensure the steadydevelopment of its photovoltaic business.
During the reporting period, the Company completed the “8GW Photovoltaic Intelligent FactoryTechnical Transformation Project” by renovating the multicrystalline cell workshop at the original Hefeibase in just three months, and the production capacity jumped to 14GW. Thanks to the quality support from
the upstream of the industrial chain and excellent production control capabilities, the Company’s coreproduction indicators such as product yield and single-line output have reached the industry’s leading level.With full benchmarking with excellent product standards and quality systems from peers, the Company hasbuilt a standardized management system with lean thinking. It has successfully passed the QMS, EMS andOHSAS certification, and IEC 62941 system certification, obtained the French carbon footprintcertification and got listed on the Bloomberg New Energy Finance’s Tier 1 list of global photovoltaicmodule manufacturers.Its business of modules is positioned as a top brand. By quickly forming a professional team and fullyleveraging upstream resource advantages, it has helped to rapidly build a global distribution channelthrough comprehensive brand promotion. In the centralized market, relying on reliable product quality,excellent performance capability, and strong after-sales system, the Company has won orders from multiplecentral state-owned power generation groups. In the distributed market, it actively explores the win-winmodel of specialized division of labor and collaborative development by cooperating with terminalplatform-like companies. In the overseas market, it focuses on end markets in Europe, Asia-Pacific, SouthAmerica, etc., and uses a “matrix” of various product models such as overlapped-cell modules and half-cellproducts to meet the differentiated needs of overseas customers for efficient modules. It has reachedstrategic cooperation with overseas distributors and customers such as China Machinery Import and Export(Group) Co., Ltd., Corab S.A, PVO International, and Energy 3000 Solar GmbH to realize the rapidexpansion of overseas channels. In 2022, the Company’s modules sales reached 7.94GW, a year-on-yearincrease of 226.06%. According to InfoLink Consulting data, the Company was among the world's top tenin terms of module shipments.To ensure leading quality and optimized cost in modules, the Company started module projects inYancheng, Jintang, Nantong and other sites during the reporting period. According to the project investmentplan, it is expected that the its module production capacity will reach 80GW by the end of 2023. Theconstruction and operation of new projects will strongly support the its global expansion of modulebusiness and provide downstream customers with stable and high-quality solar module products.
4. Aquaculture-Photovoltaic Integration PV powerplants
During the reporting period, the Company continued to focus on the development and construction oflarge-scale Aquaculture-Photovoltaic Integration bases. Through systematic cost control and the reserve ofhigh-quality water surface resources, it has created an “ecological aquaculture + green energy” model withcore competitiveness, which can promote the coordinated development of industries, and moderatelydevelop tourism, leisure, and popular science areas. This has formed an organic integration of primary,secondary, and tertiary industries, creating the “Tongwei Solution” in line with the new fisheries, newenergy, and new rural construction. This has effectively improved the added value of the industry. By theend of 2022, the Company constructed 52 PV stations led by Aquaculture-Photovoltaic Integration with acumulative installed capacity connected to the grid being 3.4GW. The electricity settlement amount in theyear was 4.06 billion kWh, reducing 3.09 million tons of carbon emissions.With continuous R&D investment and solid technology accumulation, the Company introducedconstruction plans for a flexible support system with large span, high clearance, and zero deflection duringthe reporting period. This has provided a more friendly fishing environment for PV projects, achievedhigher photovoltaic power generation efficiency, and opened up new ways to increase power generation. Bythe end of the reporting period, the Company obtained 37 patents related to the construction plans. Therewere over 12 flexible projects connected to the grid or under construction with a total scale exceeding960MW. Among them, two external projects had a scale of over 100MW. With the on-going developmentof technologies in the PV industry, the Company will further improve the economic benefits of theAquaculture-Photovoltaic Integration model through the use of efficient modules, flexible brackets andautomatic construction. By adhering to the scale, cluster and benefit principle, the Company will advancethe implementation of more Aquaculture-Photovoltaic Integration projects for driving the fisherytransformation, and producing more 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 industry
The 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 policy, China's feed industry has developed rapidly and formed a completeindustrial system, making significant contributions to the development of modern animal husbandry and theagricultural and rural economy. In recent years, due to factors such as the slowdown in livestock production
and industry integration, increased environmental and resource constraints, higher quality and safetyrequirements, and intensified market competition, the growth rate of the feed industry has slowedsignificantly. It has gradually transitioned from a high-speed growth stage focused on quantity to anintegration and improvement stage focused on quality. According to China Feed Industry Association, theaverage annual compound growth rate of China's feed production reached 16.6% from 2000 to 2010, butdeclined to 4.79% from 2011 to 2022. In the reporting period, the feed industry presented the followingdevelopment characteristics:
1. Total feed production grew steadily and business sizes were adjusted moderatelyIn 2022, the total output value of China's feed industry reached 1,316.85 billion yuan, a year-on-yearincrease of 7.6%, and the total output of industrial feed was 302.234 million tons, a year-on-year increaseof 3%, exceeding 300 million tons for the first time. The industry has accelerated the adjustment of thestructure of feed products, and the pace of innovation has accelerated, with overall development beingstable toward a positive direction. In terms of operating scale, there were six feed groups with an annualcapacity of 10 million tons in 2022, similar to 2021. There were 36 feed companies with a capacity of over1 million tons per year, 3 fewer than in 2021. The total feed output of these companies accounted for 57.5%of the national total feed output, a decrease of 2.2 percentage points from 2021. Although the operatingscale has adjusted, the competitiveness of leading enterprises remains strong.
2. Costs of raw materials remained elevated and companies were under greater pressureAffected by factors such as the escalation of geopolitical tensions, sustained inflation, and reducedproduction in major regions, the supply of main raw materials for feed was tight, and prices continued torise in 2022. Feed companies faced significant challenges in ensuring raw material supply and controllingcosts, with some even experiencing a decrease in raw material quality and supply disruptions. In the sameperiod, the weakening of regional economic activity affected the end market, with weak consumption in thecatering sector, poor trading atmosphere in the wholesale market, and weak market conditions for majorlivestock products. With the continuous increase in feed costs, the profitability of livestock breedingcontinued to decline, with low interest in breeding, resulting in more small-scale farmers exiting from theindustry. Feed companies faced both upstream and downstream pressures, and the difficulty of operationfurther increased.
3. Regulatory policies were deepened and industry transformation acceleratedIn recent years, China's requirements for quality, safety, and environmental regulation in the feedindustry have deepened, and the industry has been accelerating its transformation towards specialized,standard, green and regulated direction. In 2022, China issued and implemented policies such as the 14thFive-Year Plan for the National Forage Industry Development, the 2022 Work Plan for Feed Quality andSafety Supervision, and the Management Measures for Production Licenses for Feeds and Feed Additives,which raised higher requirements for feed companies in terms of R&D, biological safety, and qualitycontrol capabilities. Under this trend, companies with standard operations, strong technological capabilities,strong regional presence, and excellent control capabilities are better able to adapt to policy requirementsand continue to transform and upgrade, while those with insufficient standardization face greater policyrisks.(II) PV industryPV is one of the strategic emerging industries in China. As the main direction of renewable energy, thephotovoltaic industry has become an important guarantee for global energy transformation and greendevelopment, growing faster than economic development and having huge market space. After years oftwists and turns in the development, China's photovoltaic industry has basically freed itself from externaldependence and formed a complete industry chain with significant global competitive advantages, makingimportant contributions to the country's leapfrog development of renewable energy. In 2022, the productionof polysilicon, silicon wafers, cells, and modules in China's PV industry reached 827,000 tons, 357GW,318GW, and 288.7GW respectively, with year-on-year growth rates all exceeding 55%. The industry's totaloutput value exceeded 1.4 trillion yuan and annual export exceeded 50 billion US dollars. As of 2022,China has ranked first in the world for 10 consecutive years in terms of new photovoltaic installed capacity,and the cumulative installed capacity the first in the world for 8 consecutive years. Against the backdrop ofglobal energy transformation, with the continuous implementation of energy conservation, emissionreduction, and green development policies at home and abroad, the industry will maintain high-speeddevelopment. In the reporting period, the PV Industry presented the following development characteristics:
1. Turbulent global situation accelerated energy transformation with global installed capacityexceeding expectation
For a long time, Russia has been an important exporter of traditional fossil energy, such as oil andnatural gas, to Europe. The Russia-Ukraine conflict broke out in the first half of 2022 pushed up globalprices for oil and natural gas and significantly impacted the international energy supply chain, causing an
aggravating energy crisis in Europe. As a result, major overseas economies represented by Europeancountries accelerated their renewable energy transformation, and global photovoltaic installations exceededexpectations, with the annual new installed capacity reaching 230GW, a year-on-year increase of 35.3%. InChina, despite rising prices throughout the photovoltaic industry chain and a year-on-year decline in theinvestment return rate of power station companies, the country still achieved a year-on-year growth rate of
59.3% in new installed capacity, reaching 87.41GW, with distributed photovoltaics, which have relativelylower price sensitivity, achieving a year-on-year growth of more than 70%.
2. Capital inflow remarkably sped up investments with intensified competitions in the industryGiven its development far exceeds the average economic growth, the photovoltaic industry continuesto be sought after in both the capital market and the industrial market. According to CINNOResearch, theinvestment in China’s photovoltaic and wind power industries was approximately 3.4 trillion yuan in 2022.Incomplete statistics show that in 2022, 15 new photovoltaic-related companies got listed in China, andover 50 companies across the industry expanded into distributed photovoltaic and solar cell fields, withabout 30 of them listed on the A-share market. With the acceleration of production expansion by companieswithin and beyond the industry, the tense supply in the industry chain will gradually ease. However, thecompetition for top talents and high-quality resources such as land, raw materials, and electricity willbecome more intense. Top companies in the industry will further secure their market position withcomprehensive competitive advantages in market presence, technological innovation, brand management,and talent resources, while new players may face greater operational uncertainties and competitivepressures.
3. Mismatch between supply and demand continued with elevated prices
Given the sustained and unexpectedly strong demand for end-user installations, the industrydevelopment further accelerated. Although investment in all aspects of the industry increased in scale andspeed, and new production capacity was released, the release of production capacity was slow compared todownstream demand growth, due to the large scale of investment in the upstream high-purity polysiliconsegment, long construction cycles, high management difficulties, coupled with factors such as unplannedmaintenance of some capacity in the industry and high-temperature power supply restrictions in regionssuch as Sichuan. As a result, the supply of high-purity polysilicon and downstream products remained tightthroughout the year, and prices for high-purity polysilicon and downstream products continued to rise andremained high for a long time.
4. Manufacturing processes optimized with new cell technologies booming
Cost reduction is an eternal topic for the development of PV industry. According to CPIA, in 2022, theaverage comprehensive electricity consumption and steam consumption for producing polysilicon werereduced to 60kwh/kg-Si and 15kg/kg-Si respectively, achieving significant cost reduction results. The trendof silicon wafer thinning continued, with the average thickness of P-type monocrystalline silicon waferbeing around 155μm, a decrease of 15μm from the previous year. In terms of solar cells, the technologyroute switching remained in 2022, and the average conversion efficiency of technology routes keptbreaking records. The average conversion efficiency of P-type monocrystalline cells reached 23.2%, anincrease of 0.1 percentage points from 2021; the average conversion efficiency of N-type TOPCon cells
24.5%, and the average conversion efficiency of heterojunction cells 24.6%, both significantly improvedfrom 2021. At the same time, the R&D efficiency of thin-film and perovskite cells continued to improve.
5. Integration trend furthered and top companies remained strong
Specialization and integration are two development models that have long existed in the PV industry.Specialization focuses on certain segments of the industry chain for the purpose of achieving significantcompetitive advantages in those segments. Integration involves a full industry chain, avoiding the cyclicalfluctuations of a single segment. Since 2022, with the continuous emergence of supply-demand mismatchand the significant market fluctuations in some segments, and the continuous inflow of a large number ofexternal companies, companies have continued to expand their business across upstream and downstreamthrough various means. The trend of integration has become more prominent. Meanwhile, top companieshave further increased their presence with significant comprehensive competitive advantages, resulting in amarket pattern where the strong become stronger.
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 group. As of the end of the reporting period, the Company owned more than80 subsidiaries and branches involved in feed business with a business model of adopting on-siteproduction and establishing a peripheral sales coverage, while providing effective technical, financial andother supporting services to farmers. Around the feed business, the Company was actively engaged in seedbreeding, husbandry, animal healthcare, food processing and trade which further completed the industrychain and enhanced 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 over 260,000tons for high-purity polysilicon, an annual capacity of over 70 GW for solar cells, and an annual capacity of14 GW for modules. The Company has manufacturing sites in Leshan, Baotou and Baoshan for producinghigh-purity polysilicon products with locally sourced raw materials which are delivered to downstreammanufacturers of silicon wafers. In recent years, the Company has signed long-term sale contracts withsilicon wafer manufacturers. Regarding solar cells, the manufacturing sites in Shuangliu, Jintang, Meishanand Hefei have their production plans arranged directly according to the market demand with the productsdirectly sold to the downstream manufacturers of modules. Leading technologies, quality and cost controlhave allowed the Company to serve top ten PV module manufacturers across the world and secure along-term leading position in the industry. In terms of modules, the Company accelerated its businessexpansion in the second half of 2022, relying on years of accumulation in technology and market, andcombined with the synergy benefit from high-purity polysilicon and solar cells, it has established acompetitive and large-scale module business system. Customers cover major domestic central state-ownedpower generation groups and more than 40 countries and regions overseas. It is expected that theproduction capacity will reach 80GW by the end of 2023.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 screeninghigh-quality water surfaces and for ensuring electricity consumption, the Company explores novelaquaculture ways with on-going advancements of the Aquaculture-Photovoltaic Integration bases in termsof scale, professionalism and intelligence, which are expected to bring new profit sources for the Company,farmers and 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 the country and China and Southeast Asian countries such as Vietnam,
Aquaculture-PhotovoltaicIntegration powerplantsPV powergeneration
PV powergenerationPolysilicon
PolysiliconMonocrystallinesilicon rods
Monocrystallinesilicon rodsMulticrystallinesilicon ingots
Multicrystallinesilicon ingotsType-Pmonocrystalline
silicon wafers
Type-Pmonocrystalline
silicon wafers
Type-N
monocrystalline
silicon wafers
Type-N
monocrystalline
silicon wafersMulticrystalline
silicon wafers
Multicrystalline
silicon wafers
Type-Pmonocrystalline
silicon cells
Type-Pmonocrystalline
silicon cells
Type-Nmonocrystallinesilicon cells
Type-Nmonocrystallinesilicon cellsMulticrystalline
silicon cells
Multicrystalline
silicon cellsMonocrystalline
modules
Monocrystalline
modulesMulticrystalline
modules
Multicrystalline
modulesLivestock babies
Livestock babiesAquatic seedlings
Aquatic seedlingsAquatic feed
Aquatic feedLivestock feed
Livestock feedLivestock husbandry
Livestock husbandryAquatic husbandry
Aquatic husbandryAquatic processing
Aquatic processingLivestock processing
Livestock processing
Aquatichusbandry
Bangladesh, and Indonesia. These make it a leading aquatic feed producer and an important livestock feedproducer in the world. The Company has been holding a leading position in the industry regarding theproduction and sale volume of aquatic feed, i.e., its core product. As a national key leading enterprise inagricultural industrialization and a national enterprise technology center, the Company has won honorssuch as the Second Prize of the National Science and Technology Progress Award, Famous Trademark ofChina, and China Quality Award Nomination. During the reporting period, it again won the first prize ofShandong Provincial Science and Technology Progress Award and the second prize of Sichuan ProvincialScience and Technology Progress Award, and participated in the formulation and revision of 6 national andindustry feed standards. With high-quality products and comprehensive and efficient services, the brand iswell-known in the industry and market.In the field of photovoltaics, the Company has a production capacity of over 260,000 tons ofhigh-purity polysilicon, over 70GW of solar cell capacity, and 14GW of module capacity, withworld-leading product cost, quality, and efficiency. It is an important participant and driver in the globalphotovoltaic industry. The Company’s high-purity polysilicon production has ranked first in the world forseveral consecutive years, with a domestic market share of over 30% in 2022. As a specialized solar cellproducer, the Company's cell shipments have been the world's number one for 6 consecutive years since2017 (according to InfoLink Consulting), and became the first company in the industry to accumulate over100GW of cell shipments in the second quarter of 2022. In the field of modules, the Company has built atechnology and market foundation over the years. In the second half of 2022, it rapidly promoted the scaleddevelopment of the module business, and entered the global top ten in terms of module shipments for theyear. According to its production capacity planning, by the end of 2023, the Company's high-puritypolysilicon capacity will be expected to exceed 380,000 tons, solar cell capacity reach 80-100GW, andmodule capacity 80GW. The coordinated development and progress of all businesses will continue boostingthe company's industrial chain advantages and its core competitiveness will be further enhanced,contributing to the global effort into carbon neutrality.
IV. Analysis of the core competitiveness in the reporting period"√ Applicable" "□ Not applicable"(I) Clear strategic planning and positioningThe Company focuses on technological innovation and intelligent manufacturing in the main stages ofPV 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 technical research and developmentRegarding science and technology as the primary productive force, the Company attaches greatimportance to technology research and development. For each business group, it has built a R&D team ledby subject matter experts and supported by increased investments, with plenty of achievements applied inthe market. This has helped the Company create value.
1. Agriculture and animal husbandry business group
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.During the reporting period, the Center continued various basic, applied, and forward-looking studies,comprehensively promoting the specialization and standardization of key elements such as raw materials,
formulations, and products. Important achievements were made in technology innovation and productupgrading, further consolidating the Company’s core competitiveness in the aquatic industry chain. As ofthe end of the reporting period, the Company had submitted 971 patent applications in the agriculture andanimal husbandry business group with 707 authorized, and has led or participated in the formulation orrevision of 6 national and industry standards. The Precision Nutrition Study and the Development of Greenand Efficient Artificial Compound Feed for Lateolabrax Maculatus for which the Company was a jointapplicant won the first prize of the Shandong Provincial Science and Technology Progress Award, and itsDevelopment and Application of Chinese Veterinary Drugs for the Prevention and Treatment of PigDiseases Under the Background of Antibiotic Resistance won the second prize of the Sichuan ProvincialScience and Technology Progress Award.Over the years, the Company has established a young, high-quality R&D team, which continuouslyconsolidates its R&D capabilities and improves its product competitiveness under the leadership of theexperts with special government allowances from the State Council.
2. PV business group
The Company established a Photovoltaic Technology Center based on its research system in variousphotovoltaic sectors. The center includes the branches of national technology centers at subsidiaries such asTongwei Solar (Chengdu) Co., Ltd. and Yongxiang Co., Ltd. It is supported by a research team primarilyconsisting of industry experts. The center coordinates the joint R&D and integration of technologies invarious parts of the industry chain. As of the end of the reporting period, the Company’s photovoltaicbusiness group had applied for 2,411 patents of which 1,396 were authorized, and won many national andprovincial-level honors and awards, including the first prize of China Science and TechnologyIndustrialization Award.In 2022, the PV Technology Center was mainly tasked with the cross-business group link andintegration in the introduction of new technologies and new products regarding solar cells and modules(such as TNC and THC), with increased efforts into the IUR cooperation with domestic and foreignuniversities, research institutes and other scientific research institutions, and strengthened the follow-up,research and development of cross-generation technology and cutting-edge technology (including HBC,TBC, 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 industryregarding all consumptions per unit of production. In the reporting period, the mono crystal rate ofhigh-purity polysilicon produced by the Company was over 99%; the mass delivery of N type silicon wasrealized. As of the end of the reporting period, 623 patent applications were submitted by Yongxiang with423 patents authorized.
In terms of solar cells, the Company has gained a number of technological achievements withindependent intellectual property rights in core technology fields such as atomic layer deposition backpassivation, selective emitter technology, double-sided cells, multi-grid, TNC cells, and THC cells. It hasbeen an industry leader when it comes to the conversion efficiency of THC, TNC and TBC cells from massproduction. As of the end of the reporting period, 1366 patent applications were submitted by TongweiSolar with 744 patents authorized.
During the reporting period, the Company focused on breaking through the SMBB (Super MultiBusbar) technology barriers in the field of solar modules, particularly achieving the industry's firstlarge-scale production of 210 mm SMBB modules. In addition, it made phased breakthroughs in manycutting-edge module fields, including non-busbar module non-silver module, long-life module, andspecial-scenario module products. As of the end of the reporting period, Tongwei Modules submitted 422patent applications and had 229 patents authorized.
(III) Scale and cost advantage
1. Agriculture and animal husbandry business group
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 it aleading 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 business group
The Company has an annual capacity of over 260,000 tons for high-purity polysilicon with another320,000 tons in construction and two new projects planned with a combined capacity of 320,000 tons, withinvestments and consumptions per unit of production declining. With the on-going improvements oftechnological processes and the expansion of capacity, the Company will have its costs further optimized
after the projects in construction are put into service. In terms of solar cells, the Company's annualproduction capacity has exceeded 70GW, with large-size production capacity accounting for over 95%. Theaverage non-silicon cost of PERC products has dropped by 13% year-on-year. As the new project inPengshan base is put into operation, the scale effect will be further strengthened with product technologyand size structure optimized, making the non-silicon cost advantage more prominent. As for solar modules,various indicators rapidly climbed to the industry-leading level during the reporting period. According to itsinvestment plan, the Company is expected to own a module production capacity of 80GW by the end of2023, and its production cost will take a leading position driven by both the supporting industrial chain andtechnological innovation.
(IV) Quality and brand advantages
1. Agriculture and animal husbandry business group
Since its inception, the Company has developed a series of formula feeds that can meet the needs ofvarious aquatic animals through continuous R&D and improvement. After years of tests in the market, thefeed quality and market services of the Company have been highly recognized by farmers, which hascreated one of the iconic brands in the domestic aquatic feed industry. At the same time, the Company hasmade great efforts to build a well-known fresh fish brand “Tongwei Fish”, and established aquatic andlivestock food processing bases in Hainan and Sichuan for processing food in strict accordance with therequirements of the HACCP quality management system. As a result, the full-cycle quality monitoring fromsource to dinner table has been realized, which has effectively enhanced the value and competitiveness ofthe industrial chain.
2. PV business group
The Company has improved the quality of its monocrystalline silicon products by developingtechnologies for self-control of reduction processes, multiphase flow, cascaded utilization of reductionthermal energy, and boron/phosphorus/carbon impurity removal. Its product quality is top-notch, with amonocrystalline rate exceeding 99%, and it has achieved long-term stable supply of N-type materials todownstream customers. In 2022, Yongxiang was awarded multiple national and provincial-level honors,including National Intellectual Property Demonstration Enterprise, First Prize in China's Science andTechnology Industrialization Award and Gongga Peiyou Enterprise. The conversion efficiency, yield rate,chip rate, CTM value, and other indicators of solar cells from the Company are leading in the industry andhave been widely recognized by customers, demonstrated by multiple professional certifications at homeand abroad. In 2022, Tongwei Solar was awarded multiple national, provincial, and industry honors,including National High-tech Enterprise, Outstanding Intelligent Manufacturing Scene in 2022, Top 100Manufacturing Enterprises in Sichuan Province in 2022, Green Supply Chain Management Enterprise inSichuan Province and Integrity Model Enterprise in Sichuan Province. In terms of the module business, theCompany has rapidly gained brand awareness since accelerating its expansion during the reporting period.In 2022, Tongwei Modules was included in the Tier 1 list of global photovoltaic module manufacturers byBloomberg New Energy Finance, and the Terra series module products received the carbon footprintcertificate awarded by Certisolis, an authoritative French certification body. With efficient and reliablemodules and excellent after-sales service capabilities, the Company has established stable cooperationrelationships with most of China's central state-owned power generation groups and has gained customerrecognition and trust.
(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 development ofaquaculture through effective water surface modification, rational application of fishery facilities, andoptimization and innovation of aquaculture models. In terms of PV power generation, the Company adheresto the cost strategic planning, and continuously reduces the installed cost of PV systems through designoptimization and technological innovation.
The Aquaculture-Photovoltaic Integration model can promote the coordinated development of primary,secondary and tertiary sectors, integrate and create a modern industrial park integrating new fishery, newenergy, and new rural area, advance industrial transformation and upgrading, and provide an effective wayfor the construction of new rural areas, which has helped form a unique competitive model for theCompany.
(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 indicates
the 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 and legitimacy,taking the lead with guaranteed excellence; Three Determines the important management principle of theCompany, that is, efficiency determines profit, detail determines success, speed determines life and death;Work hard; Work with intelligence; Work with the spirit of seizing the day the code of conduct foremployees. After years of development, the spirit advocated by the culture, closely integrated with ourbusiness targets and daily work, guides the benchmarking of all business groups, branches and subsidiaries,continuously and deeply advances the fine-tuning of management and constantly boosts the high-qualitydevelopment 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 period amount | Last period amount | Change (%) |
| Operating revenue | 142,422,517,994.99 | 64,829,996,083.91 | 119.69 |
| Operating cost | 88,059,961,179.23 | 48,382,829,594.08 | 82.01 |
| Sales expense | 1,434,770,892.87 | 919,009,792.93 | 56.12 |
| Management expense | 7,867,914,704.37 | 2,951,233,971.46 | 166.60 |
| Financial expense | 689,147,212.07 | 637,160,688.38 | 8.16 |
| R&D cost | 1,464,443,543.84 | 1,025,715,488.68 | 42.77 |
| Net cash flow generated from operating activities | 43,817,909,631.70 | 7,474,393,433.33 | 486.24 |
| Net cash flow generated from investing activities | -20,806,151,564.50 | -13,447,148,909.93 | -54.73 |
| Net cash flow generated from financing activities | 9,246,274,097.59 | 2,901,644,427.08 | 218.66 |
Note on the reasons for operating revenue change: mainly attributed to the expansion of PV businessgroup’s operation size and rise of product prices.Note on the reasons for operating cost change: mainly attributed to the expansion of PV business group'soperation size and rise of raw material costs.Note on the reasons for change in sales expense: mainly attributed to the business expansion and increase inthe 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 by theconvertible bonds issued by the Company.Note on the reasons for change in R&D cost: mainly attributed to increased R&D investments into siliconmaterials, solar cells and modules.Note on the reasons for change in net cash flow generated from operating activities: mainly attributed to theexpanded operating size and improved profitability.Note on the reasons for change in net cash flow generated from investing activities: mainly attributed toincreased investments into PV business group.Note on the reasons for change in net cash flow generated from financing activities: mainly attributed toconvertible bonds issued by the Company.
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 | 31,646,055,679.69 | 29,147,668,534.83 | 7.89 | 28.69 | 30.95 | - 1.59 ppts |
| PV | 109,826,328,708.82 | 58,106,965,979.28 | 47.09 | 187.62 | 152.81 | + 7.29 ppts |
| Total | 141,472,384,388.51 | 87,254,634,514.11 | 38.32 | 125.38 | 92.86 | + 10.40 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 | 31,646,055,679.69 | 29,147,668,534.83 | 7.89 | 28.69 | 30.95 | - 1.59 ppts |
| Solar cells, modules and relevant activities | 53,526,448,754.97 | 48,074,022,328.84 | 10.19 | 114.67 | 111.42 | + 1.38 ppts |
| High-purity polysilicon and chemical engineering | 61,855,061,411.02 | 15,384,960,344.64 | 75.13 | 229.70 | 146.19 | + 8.44 ppts |
| PV power | 1,654,610,456.96 | 773,526,860.19 | 53.25 | 3.25 | 29.83 | - 9.57 ppts |
| Offset from consolidation | -7,209,791,914.13 | -6,125,543,554.39 | ||||
| Total | 141,472,384,388.51 | 87,254,634,514.11 | 38.32 | 125.38 | 92.86 | + 10.40 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 | 54,197,508,326.20 | 45,417,982,480.87 | 16.20 | 133.60 | 127.85 | + 2.12 ppts |
| South China | 12,300,423,046.70 | 11,122,093,251.52 | 9.58 | 51.10 | 50.82 | + 0.17 ppts |
| West China | 74,699,211,156.62 | 38,055,628,424.35 | 49.05 | 190.44 | 139.97 | + 10.71 ppts |
| North China | 17,930,621,736.25 | 10,055,745,017.70 | 43.92 | 69.86 | 44.99 | + 9.62 ppts |
| Middle China | 6,940,137,809.05 | 6,501,478,900.83 | 6.32 | 23.53 | 22.56 | + 0.74 ppts |
| Overseas | 12,599,798,279.52 | 11,511,886,129.03 | 8.63 | 57.72 | 56.62 | + 0.64 ppts |
| Offset from consolidation | -37,195,315,965.83 | -35,410,179,690.19 | ||||
| Total | 141,472,384,388.51 | 87,254,634,514.11 | 38.32 | 125.38 | 92.86 | + 10.40 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 | 115,319,222,018.16 | 63,337,406,388.99 | 45.08 | 144.92 | 104.95 | + 10.71 ppts |
| Franchised dealership | 26,153,162,370.35 | 23,917,228,125.12 | 8.55 | 66.72 | 66.80 | - 0.04 ppts |
Note on main businesses by industry, product, region and sale model:
The dealership mode basically covers feed and modules dealership overseas.
(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 | 643.36 | 719.40 | 11.18 | 19.65 | 30.42 | 6.67 |
| High-purity polysilicon | 10,000 tons | 26.69 | 25.68 | 1.17 | 144.12 | 138.41 | 480.81 |
| Solar cells | GW | 49.18 | 47.98 | 1.90 | 38.72 | 37.35 | 60.17 |
| Modules | GW | 4.74 | 7.94 | 1.25 | 88.99 | 226.06 | 329.52 |
| PV generation | 100 million kWh | 40.61 | 40.60 | 0.00 | 27.85 | 31.39 | / |
Note: The sales volume of modules in 2022 included modules produced on behalf of clients.
(3). Fulfillment of major purchase contacts and sales contracts
√ Applicable □ Not applicable
Fulfillment of major existing sales contracts as of the end of the reporting period
√ Applicable □ Not applicable
Unit:100 million 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 |
| High-purity polysilicon | LONGi | / | 243.30 | 243.30 | / | Yes | |
| High-purity polysilicon | Qinghai Gokin Solar | / | 50.50 | 50.50 | / | Yes | |
| High-purity polysilicon | Yuze Semiconductor | / | 15.49 | 15.49 | / | Yes | |
| High-purity polysilicon | Metco Silicon Energy | / | 73.29 | 55.49 | / | Yes | |
| High-purity polysilicon | Shuangliang Silicon Materials | / | 17.94 | 17.94 | / | Yes | |
| High-purity polysilicon | Jinko Solar | / | 123.33 | 88.50 | / | Yes | |
| High-purity polysilicon | Trina Solar | / | 38.64 | 24.48 | / | Yes |
Note: ① only quantities are agreed in the above major sales contracts where prices are determined according to the market prices; ② above amounts include taxes.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 period amount to total cost (%) | Last period amount | Last period amount to total cost (%) | YoY amount change (%) | Remarks |
| Agriculture and animal husbandry | Raw materials | 27,595,466,380.85 | 94.67 | 20,912,211,007.71 | 93.95 | 31.96 | |
| Agriculture and animal husbandry | Labor cost | 380,990,879.22 | 1.31 | 367,104,377.22 | 1.65 | 3.78 | |
| Agriculture and animal husbandry | Manufacturing expense | 1,171,211,274.75 | 4.02 | 979,382,716.46 | 4.40 | 19.59 | |
| PV industry | Raw materials | 45,102,802,056.52 | 77.62 | 17,056,289,488.92 | 74.21 | 164.73 | |
| PV industry | Labor cost | 1,823,636,210.19 | 3.14 | 806,471,779.10 | 3.51 | 115.74 | |
| PV industry | Manufacturing expense | 11,180,527,712.58 | 19.24 | 5,121,685,079.88 | 22.28 | 104.75 | |
| Cost by product | |||||||
| Product | Cost item | Current amount | Current period amount to total cost (%) | Last period amount | Last period amount to total cost (%) | YoY amount change (%) | Remarks |
| Feed, food and relevant activities | Raw materials | 27,595,466,380.85 | 94.67 | 20,912,211,007.71 | 93.95 | 31.96 | |
| Feed, food and relevant activities | Labor cost | 380,990,879.22 | 1.31 | 367,104,377.22 | 1.65 | 3.78 | |
| Feed, food and relevant activities | Manufacturing expense | 1,171,211,274.75 | 4.02 | 979,382,716.46 | 4.40 | 19.59 | |
| High-purity polysilicon and chemical engineering | Raw materials | 7,097,583,400.89 | 50.20 | 3,072,125,706.97 | 49.16 | 131.03 | |
| High-purity polysilicon and chemical engineering | Labor cost | 420,052,797.73 | 2.97 | 265,592,641.47 | 4.25 | 58.16 | |
| High-purity polysilicon and chemical engineering | Manufacturing expense | 6,619,608,592.98 | 46.82 | 2,911,520,274.36 | 46.59 | 127.36 | |
| Solar cells, modules and relevant activities | Raw materials | 43,504,348,412.37 | 90.49 | 20,517,743,788.12 | 90.23 | 104.78 | |
| Solar cells, modules and relevant activities | Labor cost | 1,366,510,671.86 | 2.84 | 540,879,137.63 | 2.38 | 144.01 | |
| Solar cells, modules and relevant activities | Manufacturing expense | 3,203,163,244.61 | 6.66 | 1,680,093,841.06 | 7.39 | 84.14 | |
| PV power | Manufacturing expense | 773,526,860.19 | 100.00 | 595,820,555.39 | 100.00 | 29.83 | |
(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 customers"√Applicable" "□Not applicable"The sales amount from top five customers was 53.489 billion yuan, accounting for 37.56% of the total saleamount; 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 suppliers
√Applicable "□Not applicable"
The purchase amount to top five suppliers was 26.858 billion yuan, accounting for 21.23% of the totalpurchase amount; the purchase amount to related parties (in the purchase amount to top five suppliers) was0, accounting for 0% of the total purchase amount.
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"
Other notesNone.
3. Expenses
"□ Applicable" "√ Not applicable"
4. R&D cost
(1).R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan
| R&D cost expensed in the current period | 4,400,583,344.89 |
| R&D cost capitalized in the current period | |
| Total R&D cost | 4,400,583,344.89 |
| Total R&D cost to operating revenue (%) | 3.09 |
| Percent of capitalized R&D cost (%) |
(2).R&D personnel
"√ Applicable" "□ Not applicable"
| R&D employees | 3,549 |
| R&D employees to total employees (%) | 8.61 |
| Education background of R&D employees | |
| Education background | Number of employees |
| Doctor degree | 29 |
| Master degree | 342 |
| Bachelor's degree | 1,578 |
| Others | 1,600 |
| Age groups of R&D employees | |
| Age group | Number of employees |
| Under 30 years old | 1,324 |
| 30 - 40 years old | 1,595 |
| 40 - 50 years old | 465 |
| 50 - 60 years old | 160 |
| 60 years old or above | 5 |
(3).Note
"√ Applicable" "□ Not applicable"Science and technology are the primary productive force. The Company keeps technologicalinnovation and development by keeping abreast of industry trends and for meeting customer needs. Foreach business group, it has built a R&D team led by subject matter experts and supported by increasedinvestments, with plenty of achievements that helped the Company create value.The Company has3,549 R&D employees, or 8.61% of its total 41,214 employees. Specifically, thoseholding bachelor or higher degrees account for 54.92% of the R&D employees; 62.69% of the R&Demployees are 30 years old or above, and 37.31% are under 30 years old.
(4).Reasons for material changes in R&D staff structure and the impact on the Company’s futuredevelopment"√ Applicable" "□ Not applicable"As of the end of the reporting period, the Company had 3,549 R&D employees, a year-on-yearincrease of 214 from 3,335, which is mainly driven by: the increase of talents in aquatic and livestock R&Dteam, technical service team, and alga R&D team because the Company intended to enhance the systematicstudy into indoor shrimp farming and intelligent feeding system, and processes for spirulina feed used forphotoenergy aquaculture; the further business expansion of high-purity polysilicon, solar cells and solarmodules with the advancement of new projects in Leshan, Yunnan, Inner Mongolia, Jintang, Meishan,Pengshan and Hefei, which required more talents and resulted in the increase of R&D employees. Theincrease in R&D personnel helps with the advancement of R&D projects, has boosted its R&D capabilityand level for improving its sustainability on a long-term basis.
5. Cash flow
"√ Applicable" "□ Not applicable"
Refer to the analysis of changes in related items of the income statement and cash flow statement inthis Section.
(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
| Project 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 (%) | Note |
| Cash at bank and on hand | 36,841,572,130.01 | 25.37 | 3,001,930,882.38 | 3.42 | 1,127.26 | Due to improved profitability and sufficient operating cash flow. |
| Held-for-trading financial assets | 4,298,524,475.70 | 2.96 | 10,617,668.58 | 0.01 | 40,384.64 | Due to purchase of wealth management products. |
| Notes receivable | 2,450,913,663.89 | 1.69 | 1,576,925,682.02 | 1.79 | 55.42 | Due to expansion of overseas business and increase in the L/Cs. |
| Accounts receivable | 4,501,362,630.14 | 3.10 | 2,915,527,149.08 | 3.32 | 54.39 | Due to extended payment cycle to strategic customers in the agriculture and husbandry, and module businesses. |
| Inventories | 11,002,649,108.38 | 7.58 | 5,682,791,568.04 | 6.47 | 93.61 | Due to increase in goods in stock, goods in transit and raw materials as a result of increased operation size, overseas business expansion, and rise of raw material costs. |
| Other current assets | 786,407,734.06 | 0.54 | 1,220,643,137.83 | 1.39 | -35.57 | Due to deduction of the previous year's overpaid input tax in the current year. |
| Construction in progress | 3,997,396,999.92 | 2.75 | 10,610,819,753.03 | 12.07 | -62.33 | Due to the conversion of solar cells and high-purity polysilicon projects into fixed assets. |
| Short-term borrowings | 87,767,124.22 | 0.06 | 1,375,230,141.70 | 1.56 | -93.62 | Due to the adjustment of the Company's financing structure. |
| Accounts payable | 11,018,161,537.30 | 7.59 | 8,151,270,076.21 | 9.27 | 35.17 | Due to business expansion and increase in procurement. |
| Contract liabilities | 5,405,872,108.61 | 3.72 | 3,112,027,804.79 | 3.54 | 73.71 | Due to business expansion and increase in advances from suppliers in the PV business group. |
| Long-term borrowings | 15,409,335,995.67 | 10.61 | 11,441,029,860.16 | 13.02 | 34.68 | Due to expanded investment size and adjustment of financing structure. |
2. Overseas assets
"√Applicable" "□Not applicable"
(1) Assets
In which: The overseas assets were 2,637,790,616.96 yuan, accounting for 1.82% of the total 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"
Unit: CNY
| Item | Closing carrying value | Restriction reasons |
| Cash at bank and on hand | 25,374,248.91 | Provide guarantees for financing and operations |
| Receivables financing | 9,665,638,659.50 | Provides pledges for bank acceptance bills issued by the Company |
| Accounts receivable | 715,625,583.47 | Provide collaterals for financing of the Company |
| Contract assets | 355,864,692.87 | Provide collaterals for financing of the Company |
| Fixed assets | 5,957,339,958.31 | Provide collaterals for the Company's financing |
| Right-of-use assets | 1,392,343,524.16 | Provide collaterals for financing of the Company |
| Intangible assets | 445,149,567.28 | Provide collaterals for financing of the Company |
| Investment properties | 72,509,754.87 | Provide collaterals for financing of the Company |
| Total | 18,629,845,989.37 |
4. Other notes
"□ Applicable" "√ Not applicable"
(IV). Industrial operation analysis"√ 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 energy-grade polysilicon: | Output ratio of products at all levels | Ratio of electricity cost to total product cost |
| Solar energy-grade polysilicon | 100% | 29.77% |
| Solar cells: | Average energy conversion efficiency in mass production | Maximum energy conversion efficiency in R&D stage |
| Monocrystalline silicon cells | Type P: 23.98% Type N: 25.50% | 26.18% |
| Modules: | Average module power in mass production | Maximum module power in R&D stage |
| Silicon solar cells | 182 72 format PERC modules: 547.9 W 182 72 format TOPCon modules: 580.5 W | 182 72 format PERC modules: 588.4 W 210 66 format PERC modules: 720.7 W |
| Discussion and analysis of indicators: (1) Average energy conversion efficiency of mass production 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: The highest average conversion efficiency of cells in R&D experiments is tested by recognized third-party organizations. The Company focuses on the development of high-efficiency cells. It further improves the conversion efficiency of cells and modules by adopting multi-busbars, back passivation, SE process, high-resistance dense grid, alkali polishing, overlapping 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 |
| 48 powerplants with grid connected installed capacity of 2.7 GW | 0 | 52 powerplants with grid connected installed capacity of 3.4 GW | 6.6 GW | 0 | No powerplant was sold in the period |
Note: The total installed capacity approved means the installation capacity of powerplants that have been registered and held by the Company (including thoseconnected to and not connected to the grid)
"√ 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: | |||||||
| Anhui | 280.15 | 36,861.82 | 35,620.34 | 35,279.63 | 0.37 | 11,858.73 | 1,331.86 |
| Guangdong | 245.00 | 20,333.34 | 20,101.74 | 19,948.37 | 0.48 | 7,977.11 | 1,580.52 |
| Hubei | 419.33 | 23,919.65 | 23,644.39 | 23,616.06 | 0.37 | 8,737.71 | 6.35 |
| Jiangsu | 315.00 | 43,288.69 | 42,344.96 | 42,305.52 | 0.52 | 14,637.66 | 7,302.21 |
| Shandong | 557.91 | 75,552.37 | 74,328.95 | 75,251.79 | 0.34 | 23,693.70 | 1,904.85 |
| Others | 1,504.07 | 198,640.43 | 195,429.41 | 195,018.79 | 0.34 | 61,428.97 | 4,873.37 |
| Total | 3,321.46 | 398,596.30 | 391,469.79 | 391,420.16 | / | 128,333.88 | 16,999.16 |
| Distributed: | |||||||
| Anhui | 0.42 | 42.50 | 42.50 | 42.50 | 0.87 | 14.46 | 22.40 |
| Hubei | 3.14 | 201.08 | 201.08 | 201.08 | 0.86 | 98.60 | 73.55 |
| Jiangsu | 0.56 | 61.58 | 61.58 | 61.58 | 0.99 | 37.89 | 22.83 |
| Shandong | 11.32 | 1,565.29 | 1,534.54 | 1,523.20 | 0.75 | 772.21 | 365.83 |
| Others | 94.13 | 13,171.69 | 12,814.96 | 12,738.38 | 0.66 | 4,126.79 | 4,227.61 |
| Total | 109.57 | 15,042.14 | 14,654.66 | 14,566.74 | / | 5,049.95 | 4,712.22 |
Note:
① The average on-grid electricity price for centralized power generation is 0.37 yuan/kWh, while the average on-grid electricity price for distributed power
generation is 0.67 yuan/kWh.
② The Company focuses on Aquaculture-Photovoltaic Integration a differentiator, and the market development mainly covers five provinces: Anhui, Guangdong,Hubei, Jiangsu, and Shandong.
"□ Applicable" "√ Not applicable"
4. Recommended tables
(1). Production of PV products and PV capacity in construction (as of the end of the reporting period)"√ 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 energy-grade polysilicon | 266,900 tons | 122.91% | Modified Siemens process | 287,943.43 | 287,943.43 | 120,000 tons | 2023 | Modified Siemens process |
| Modified Siemens process | 44,719.43 | 44,719.43 | 200,000 tons | 2024 | Modified Siemens process | |||
| Silicon wafers: | ||||||||
| Monocrystalline silicon wafers | / | / | / | 351,020.33 | 246,816.77 | 15 GW | 2022 | Monocrystalline |
| Solar cells: | ||||||||
| Monocrystalline silicon cells | 49.18 GW | 100.50% | PERC/TOPCON | 15,629.53 | 15,629.53 | 16 GW | 2023 | PERC/TOPCON |
| Modules: | ||||||||
| Silicon solar modules | 4.74 GW | 105.43% | High-efficiency modules | 1,572.17 | 1,572.17 | 25 GW | 2023 | High-efficiency modules |
| Analysis of the reasons and effect of significant changes in capacity utilization: Not applicable | ||||||||
(2). Major financial indicators of PV products
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Product category | Sales-to-production ratio (%) | Sales revenue | Gross profit margin (%) | ||
| Domestic | Overseas | Domestic | Overseas | ||
| Solar energy-grade polysilicon | 96.19 | 60,195,496,172.34 | 76.96 | ||
| Solar cells: | |||||
| Multicrystalline silicon cells | / | 657,226.35 | 2,147,399.65 | / | / |
| Monocrystalline silicon cells | 97.56 | 31,920,633,281.37 | 5,757,095,854.34 | 9.82 | 10.56 |
| Modules: | |||||
| Silicon solar cells | 75.68 | 9,559,687,047.64 | 4,380,510,790.67 | 5.33 | 17.72 |
PV products sold overseas should be listed by country or region"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Overseas sales of modules | ||
| Country/region | Sales revenue | Gross profit margin (%) |
| South Korea | 1,961,861,356.90 | 21.96 |
| Germany | 1,024,126,456.79 | 12.75 |
| Italy | 238,821,426.13 | 10.64 |
| Poland | 183,826,513.94 | 11.04 |
| Netherlands | 212,350,501.50 | 14.07 |
| France | 303,098,052.91 | 15.00 |
| Others | 456,426,482.50 | 20.55 |
Unit: Yuan Currency: CNY
| Overseas sales of monocrystalline silicon cells | ||
| Country/region | Sales revenue | Gross profit margin (%) |
| Türkiye | 3,348,874,889.35 | 11.33 |
| South Korea | 312,924,110.73 | 6.72 |
| Germany | 413,938,510.91 | 9.84 |
| Hong Kong SAR, China | 320,789,632.97 | 13.37 |
| India | 248,621,417.30 | 10.75 |
| Others | 1,111,947,293.08 | 8.75 |
(3). PV powerplant projects commissioned or developed
"□ Applicable" "√ Not applicable"
5. Other notes
"□ Applicable" "√ Not applicable"
(V). Investment analysisOverall analysis of outward equity investments"□ Applicable" "√ Not applicable"
1. Significant equity investments
"□ Applicable" "√ Not applicable"
2. Significant non-equity investments
"√ Applicable" "□ Not applicable"Unit: 10,000 Yuan
| Project name | Amount invested in the reporting period | Cumulative investment amount | Project progress | Return realized in the reporting period | Sources of funds |
| Phase I 50,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 56,153.67 | 464,378.94 | Completed | 561,916.96 | Self-funding |
| Phase II 50,000-ton High-purity Polysilicon Project of Inner Mongolia Tongwei | 284,376.77 | 511,242.03 | Completed | 352,171.80 | Raising fund and self-funding |
| 15 GW Monocrystalline Rod Pulling and Cutting Project of Yongxiang PV Technology | 246,816.77 | 351,020.33 | Put into production by batch | -50,262.88 | Raising fund and self-funding |
| Phase I 120,000-ton High-purity Polysilicon Project of Yongxiang New Energy | 287,943.43 | 287,943.43 | In progress | / | Self-funding |
| Tonghe Project | 131,438.88 | 359,981.26 | Completed | 82,120.24 | Self-funding |
| Phase I 16 GW High-efficiency Solar Cell Project in Pengshan | 15,629.53 | 15,629.53 | In progress | / | Self-funding |
| Phase II 200,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 44,719.43 | 44,719.43 | In progress | / | Self-funding |
| 25 GW High-efficiency Solar Modules Manufacturing Base Project in Yancheng | 1,572.17 | 1,572.17 | In progress | / | Self-funding |
3. FVTPL financial assets
"□ Applicable" "√ Not applicable"
Securities investments"□ Applicable" "√ Not applicable"
PE investments"□ Applicable" "√ Not applicable"
Derivatives investments"□ 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 | Operating revenue | Operating profit | Net income |
| Yongxiang Co., Ltd (combination) | PV industry | 142,086.69 | 6,516,829.10 | 4,310,424.63 | 6,233,082.70 | 4,069,490.58 | 3,429,593.31 |
(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) Entering a stage of steady and high-quality development where there is still room for marketexpansionSince the Reform and Opening up, China’s feed industry has undergone many years of high-speeddevelopment. From 2011 on, its output has steadily ranked first in the world, and its annual output nowexceeds one-fifth of the global total. Since 2011, the annual growth of feed production in China hasgradually slowed down. In 2022, the national growth was only 3%, and the number of feed companiesdecreased from over 10,000 to just over 5,000 in 2019, indicating significant industry consolidation andupgrading. The further revision, publication and implementation of relevant laws and regulations such asthe Environmental Protection Law of the People's Republic of China, the Food Safety Law of the People'sRepublic of China, and the Measures for the Administration of Feed and Feed Additives have raised higherrequirements for safety and quality, technology development, and environmental protection of feedenterprises, and the industry has entered a stable and high-quality development stage. However, from theperspective of market space, China's per capita consumption of meat is still lower than that of developedcountries, indicating significant room for growth. With the further development of the domestic economyand the continuous increase in per capita disposable income, the demand for high-quality meat products,dairy products, and aquatic food by consumers will continue to rise, and the feed industry still has a goodoutlook.
(2) Some raw materials are dependent on imports and reducing grain in feed is a long-termstrategy for the industry
Main raw materials for feed production are corn and soybean (meal), the latter is primarily imported, asituation that is unlikely to change in a long run. The demand for corn for feed is the main contributor to the
significant shortfall, making it a crucial risk point for China's food security. In recent years, impacted byglobal inflation and geopolitical conflicts, grain prices have risen sharply, which led to rising feed costs.Looking ahead, extreme weather, frequent geopolitical conflicts, and ongoing cross-border trade frictionsmay keep grain prices at high levels for a long time, making it difficult for feed companies to alleviate costpressures. Since 2018, to resolve the high content of corn and soybean meal in feed, China launched acampaign to replace corn and soybean meal in feed, making improving feed conversion efficiency a keytask to promote high-quality development of animal husbandry, which has delivered good results. Thelow-protein diets and precision formula technologies that are part of the action to reduce grain content infeed will also place higher requirements on the research and development, formulation, and productioncapabilities of feed companies, and are expected to further widen the gap between feed companies.
(3) Scaled development together with digital upgrading is the direction with the integrationtrend further boostedIn recent years, the scale of livestock and poultry farming has been growing, which imposes greaterpressure on small-scale farmers in terms of animal quarantine, environmental protection, and profitability,leading some to exit the market. As a result, the market share of large-scale farms and breeding groupscontinues to increase. Aquaculture is also increasingly specialized and intensive, placing higherrequirements on the scale, R&D capabilities, and biological control. Leading feed enterprises, representedby the Company, are taking the lead in exploring intelligent factories and digital enterprises, which willlead the direction of industry upgrading. At the same time, in the context of slower total growth, accelerateddevelopment of self-formulated feed by breeding enterprises, and intensified market competition, industryleaders with established channels, brand advantages, stronger capital, management, R&D, talent, and scalestrength attempt to expand downstream into breeding, slaughtering, food, and trade sectors, and the trendtowards integration is further strengthened However, small and medium-sized enterprises with weakcomprehensive competitiveness may face continued pressure in environmental governance, R&D, andmarket competition, and their survival space may be further narrowed.
2. PV
(1) The global trend of energy transformation is clear and PV has a huge development space
It is highly certain that the trend of vigorously promoting the development of green energy globallyremains in a long run. Due to simple construction and installation, wide applicability, safety,cost-effectiveness and efficiency, photovoltaics have developed into the main force of renewable energy,and will also reduce the cost of electricity generation, expand the market space, and improve thedevelopment speed through continuous technological progress and increased scale. With carbon emissionsbecoming an important factor affecting commodity imports and exports, and many countries issuingpolicies to encourage investment, construction, and application of photovoltaic power generation to achieveenergy independence and get rid of energy dependence, vigorously developing renewable energy inparticular photovoltaics has become an inevitable choice concerning the national strategic development ofcountries. According to IEA, the new installed PV capacity over the world from 2022 to 2027 would reach1500 GW. By 2027, the cumulative installed capacity of photovoltaics globally will exceed that of coal andbecome the largest installed energy form, indicating that the photovoltaic industry has broad prospects.
(2) Industry competition continues to intensify, and the market concentration may be subject tofragmentation
In recent years, the demand for photovoltaic products has grown rapidly, leading to supply shortfalland price increase, while the entire PV industry chain has shown strong willingness to expand production,and large amounts of capital have entered the industry. According to InfoLink Consulting, as of the end of2022, effective production capacities for silicon materials, wafers, cells, and modules all exceeded 500GW,and there are still plans for further expansion in each segment. It is expected that by the end of 2023, thetotal production capacity in each segment will exceed 800GW, and the industry will go to a phase ofintensified competition, with the possibility that the concentration in some segments may be subject tofragmentation. Meanwhile, some companies are accelerating their vertical integration to consolidate theircompetitive advantage and reduce risks associated with upstream and downstream sectors. This trend willalso increase competition in the industry. Against this backdrop, leading companies with advanced R&Dcapability, management and operational experience, and strong talent pool will be able to bear more risksand consolidate their market position and competitive advantages during the expansion of their productioncapacities.
(3) Distributed PV market grows rapidly with increasingly diverse “PV+” scenarios
The wide application of photovoltaic products has resulted in two categories of PV models, i.e.,centralized and distributed, in China where the latter is in particular growing fast. Driven by the nationalpolicy of “Bringing Solar Energy to Every Household”, the domestic distributed market is expected tocontinue its rapid growth in the future, benefiting from the accelerated development of distributed
photovoltaic projects across counties and the one-stop energy solutions facilitated by photovoltaiccompanies. As technology advancements, economies of scale and policy-based incentives have remarkablyincreased the economic benefits of photovoltaic power generation, the application scenarios of photovoltaicpower generation will become increasingly diversified. The “PV+” market has spawned various businessmodels that are combined with agriculture, industry, construction, transportation, and communication,providing photovoltaic companies with broader opportunities. Relevant companies participate in businessdevelopment in various application scenarios through investment, acquisition, business cooperation, andother means to achieve performance growth. However, the requirements for photovoltaic products varydepending on application scenarios. This has imposed new requirements for photovoltaic companies interms of targeted product development, R&D capabilities, technological reserves, production organization,and other aspects.
(4) Solar cell technologies are updating and type-n may have a significantly increased marketshareAs the conversion efficiency of PERC cells approaches its theoretical limit, new types of celltechnologies are thriving, continuously breaking through both conversion efficiency and productioncapacity. As of 2022, the average conversion efficiency of P-type monocrystalline cells was 23.2%, N-typeTOPCon cells 24.5%, heterojunction cells 24.6%. The conversion efficiencies of thin-film and perovskitecells are improving as well. However, given the current production capacity and investment scale at theindustry-level as well as the level of end-user electricity costs, it is expected that N-type cells representedby TOPCon and HJT may become the mainstream of the next generation, while the market share of P-typecells may gradually decline.
(5) PV companies may go globally at a higher speed in the context of trade barriers and localmanufacturing capability
Photovoltaics has become one of representative industries where China bears notable advantages, andChinese companies have secured an absolute leading advantage along the entire industry chain includingpolysilicon, wafers, cells, and modules, with global market shares in all segments exceeding 70%. However,from the perspective of end markets, as the global energy transformation accelerates, the overseas marketspace and growth continue to expand, and the localization of photovoltaic manufacturing in overseasmarkets is a clear trend. At the same time, many countries have supported their local photovoltaicmanufacturing industry in recent years through the combination of “trade barriers + support for localindustries”, which has impacted domestic photovoltaic companies to some extent. Chinese photovoltaiccompanies will accelerate their global development, and continuous improvement of market share throughproduct exports and overseas investment may become a new path for development.
(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 business group andagriculture and animal husbandry business group, and optimizes and improves their respective industrialchain, strives to promote the Company's sustainable and stable development by both endogenous andextensional investment methods, promotes the continuous and stable development and realizes theCompany's vision of "For Better Life".
1. Agriculture and animal husbandry business group: a world-class safe food supplier
Feed industry: Adhering to Quality Policy and with a focus on the specialization and scale up of thefeed business, the Company tries to grow steadily by setting up facilities and M&A activities at home andabroad. While focusing on the aquatic feed business, the Company makes the most of the season-basedcycle of the business by advancing the collaborative mode with large farming companies in livestock andpoultry 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 efficiency improvement,the Company puts great efforts into the new approach combining the Company with farmers, and furtherexplores and develops facility-based standard fishery where factory-based farming targeting premiumaquatic products represented by shrimps and special aquatic foods, elevates the automation, intelligenceand environmental standards for aquaculture, advances the transformation from traditional to modernfishery, and build state-of-the-art production bases of safe aquatic products which can be fully tracked.
Processing and trade activities: The Company accelerates the deep processing and trade of aquatic
products and build a uniform industry chain from farmers to consumers around the growth mode of“three-fish, one-prawn, one brand, one-platform and one-market”. Tongwei Fish, the Company's green andsafe food benchmark, has been highly recognized in the regional market, and the successful model will bereplicated in the future. At the same time, it is actively applying big data to the sale of aquatic products bycombining an online 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 focuses onthe operation of key products like Tilapia, mullet, channel catfish and Yantian shrimp, striving to cover theentire industry chain including farming, production, processing and trade.
2. PV business group: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry, the Company will continue to enhance itsadvantage along the industry chain and strengthen its leading positions in all parts, and accelerate theAquaculture-Photovoltaic Integration mode 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. By continuously consolidating andenhancing its scale, technology, and cost advantages that are leading in the high-purity polysilicon segment,the Company strives to increase its market share, and secure a globally leading position in the segment. Bycontinuously strengthening the research and development, scale, and management advantages in the solarcell segment, the Company tries to consolidate its leading profitability and market share, and secure aglobally leading position in the segment. By rapidly increasing the production capacity and market share inthe module segment, and establishing channel and brand advantages in multiple domestic and internationalmarkets, the Company works to be one of the leading global module companies.
In the photovoltaic power generation segment, the Company firmly advances theAquaculture-Photovoltaic Integration mode through organic combination of its resources in agriculture andPV, in order to create an Aquaculture-Photovoltaic Coexistence economy where feed, aquatic products andgreen energy are integrated, thereby building a differentiated competitiveness for the Company.
(III). Business plan"√ Applicable" "□ Not applicable"
In 2023, 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 whilefully leveraging the synergy effect of PV business group to rapidly increase the brand impact and marketshare for the modules business. These are intended for increasing the Company's value and returns toshareholders.
1. Agriculture and Animal Husbandry: The Company strives to increase the revenue of feed, food andassociated businesses along the industry chain by over 10% YoY.
2. PV: The Company strives to deliver 300,000 tons for high-purity polysilicon business, 70 GW(including self-use) for solar cell business, and 35 GW for module business; for the photovoltaic powergeneration business, it plans to construct an Aquaculture-Photovoltaic Integration project with a capacity of1 GW through investment.
(IV). Possible risks"√ Applicable" "□ Not applicable"
1. Feed industry
(1) Volatility of prices of main raw materials. In 2022, the prices of main raw materials for feedproducts continued going up due to various factors such as international political and economic turbulence,changes in production in major producing areas, and exchange rate fluctuations. From a macro perspective,the worrying situation of high inflation and high risk in Europe and America restricts the upward space ofcommodities and increases the downward risk. From the perspective of overall market supply, regionalconflicts have eased, and the decrease of soybean production in Brazil and canola production in Canada hasbeen relieved, so it is expected that raw materials will recover on the supply side and remain weak on thedemand side, leading to falling prices of agricultural products. Given that the situation of China's highdependence on imported raw materials is difficult to change, and fluctuations in import prices may furtherincrease the operating pressure on feed companies.
Risk response measures: The Company has a professional procurement team, which closely trackschanges in raw material prices, makes careful judgments on procurement timing, adheres to the principlesof long-term, medium-term, and short-term procurement, reasonably controls raw material inventory, andeffectively avoids large fluctuations in production costs. The Company is also actively building data-drivensystems such as self-service analysis platforms for market conditions and procurement execution, a
management cockpit 4.0, and direct supplier data connection to assist the procurement team in makingefficient and accurate decisions. The procurement team works together with technology and quality controlteams to actively develop alternative raw materials with good quality, cost-effectiveness, and stable supplychannels. The company will adhere to its strategy of securing raw materials to ensure stable and consistentquality of raw material supply. Additionally, it will increase the recruitment and training of outstandingtalents to enhance the capabilities of the procurement team.
(2) Market demand volatility. Feed sales are directly related to breeding activities which may benegatively impacted by natural disasters, abnormal temperature, the spread of diseases, and policy changes,thereby leading to fluctuations in feed demand in some regions or periods.Risk response measures: The Company will strengthen the tracking and monitoring of natural disasters,climate change, and animal diseases, actively guide farmers to take risk prevention and control measures,and provide timely assistance to restore normal production. It will also enhance animal immunity throughdeveloping immune-boosting products, promote standardized farming practices, assist in building ahigh-standard epidemic prevention system, and enhance farming benefits to increase customer loyalty. Witha wide range of product categories and subsidiaries properly distributed in major farming regions, theCompany can effectively respond to risks caused by abnormal weather and natural disasters in local areas.
(3) Policy risk. After policies including Environmental Protection Law of the People's Republic ofChina, Animal Husbandry Law of the People's Republic of China, Regulations on Pollution Prevention andControl in Scaled Livestock Husbandry, Action Plan for Prevention and Control of Water Pollution, andGuiding Opinions on Promoting the Optimization of Pig Breeding in the Southern Water Network Regionhave been implemented, regions across the country have set prohibition and restriction areas and boostedthe supervision and punishment on environmental violations in the livestock husbandry sector, which hasremarkably raised the access threshold and free range farmers that do not meet the environmentalprotection provisions have been exiting the industry. In addition, China has launched comprehensiveactions to reduce the use of antibiotics by replacing antibiotics or eliminating antibiotics in the livestockindustry. This, combined with strong incentives for the development of large-scale farms in various regions,is accelerating the livestock industry to transform towards antibiotic-free, green, scalable, and intelligentoperations. This poses higher requirements for the research, production, and management of feedcompanies. Failure to timely adapt to policy requirements may result in operational risks for thesecompanies.
Risk response measures: Guided by the “Quality Policy”, the Company relies on robust technologicalcapability, material procurement systems, and scalable and specialized production capability to providecustomers with cost-effective feed products, achieve rapid development of large-scale farms, andcontinuously optimize the customer structure. It assists financially capable free-range farmers inestablishing scaled farms that meet environmental protection standards and disease prevention and controlrequirements, promoting their smooth transition. The Company produces antibiotic-free feed and improvesproduct formulations, production processes, and farming models to enhance customer farming benefitswhile effectively meeting the needs for greener livestock production, leading to rapid growth in sales.
(4) Exchange rate risk. Exchange rates are influenced by various factors, including the economicdevelopment and fiscal and monetary policies of countries, international trade tensions, geopoliticalenvironment. In recent years, the global economic and political situation has been volatile, leading toincreased exchange rate fluctuations. With the growing demand for international raw material trade and theexpanded overseas feed business of the Company, frequent two-way fluctuations in the CNY exchange ratewill leave an obvious impact on business operations.
Risk response measures: The Company closely monitors the economic and political situations andpolicies of major currency countries to assess and choose more favorable settlement currencies andmethods. It actively recruits and trains specialized personnel to strengthen research and forecastingcapabilities in the foreign exchange market, enhance import and export management, and effectivelymitigate exchange rate risks by flexibly utilizing forward foreign exchange contracts, swaps, options, andother hedging instruments.
(5) Other risks from force majeure. In recent years, there have been frequent occurrences ofunexpected public health events, natural disasters, and geopolitical conflicts. Similar force majeure eventsmay continue to happen in the future, posing risks to feed companies’ operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeurerisks and take necessary measures to respond to adverse impacts on procurement, production, sales, andother operations caused by such events.
2. PV industry
(1) Industry chain instability. The photovoltaic industry covers multiple production stages, with eachstage involving various raw and auxiliary materials. The expansion cycles of different materials vary. In
recent years, the industry demand has been growing rapidly. The industry chain experiences alternatingmismatches and contradictions, leading to varying degrees of supply shortages for materials such aspolycrystalline silicon, encapsulant films, glass, and quartz sand. This has resulted in significant priceincreases, placing pressure on supply chain management for companies.Risk response measures: The Company will closely monitor and assess changes in the supply anddemand of raw and auxiliary materials, make efficient decisions, and ensure timely reserves. Additionally,it will strengthen strategic cooperation with upstream and downstream partners, employing variousmethods such as equity cooperation and long-term supply agreements to ensure supply chain security.
(2) Policy risk. In order to implement climate governance, promote energy transformation, improvethe environment, and drive economic development, countries are vigorously supporting the development ofthe photovoltaic applications. Some still adopt subsidy and other incentive policies for photovoltaic powergeneration. If these subsidies or incentives are scaled back or canceled, it may have an impact oninstallation demand. In China, policies related to land used for photovoltaic powerplant projects andmarket-based transactions may pose challenges in ensuring land availability and introduce uncertainties inelectricity prices, which could affect the profitability of Aquaculture-Photovoltaic Integration powerplants.Risk response measures: The Company will closely monitor changes in relevant policies, boost costreduction of products, enhance product competitiveness, and maintain its competitive position. It will alsokeep driving the healthy and orderly development of the industry, actively explore green certification andgreen electricity transactions to safeguard its profitability.
(3) Technology updates. New battery technologies are evolving with conversion efficiency once againreaching a historic record. In 2022, new generation crystalline silicon solar cell technologies such asTOPCon and HJT achieved breakthroughs, and, thin-film and perovskite technologies, among others, havealso advanced. Mature technology, excellent stability, and a dominant market share allow crystalline siliconsolar cell products to remain the mainstream for the foreseeable future. Companies are accelerating theexpansion of production capacity for new battery technologies, which will advance technological upgradesin the upstream sector. Failing to keep up with cutting-edge technologies and adapt to industry changes mayweaken business competitiveness.
Risk response measures: The Company actively performs pilot testing and application ofnext-generation mainstream technology routes. Leveraging the cost-effectiveness of TOPCon technology, ithas put a 9 GW TNC (Topcon N-Type Cell) production line into operation, and another 16 GW TNCproduction line under construction is expected to start production in 2023. The Company has made criticalprogress in cost reduction and efficiency improvement of HJT (Heterojunction) technology and keepsdeveloping technologies such as back-contact and perovskite tandem cell to ensure its technologicalleadership. The Company continues to increase the proportion of high-quality N-type silicon material in theproduction of high-purity polysilicon, and boosts cost reduction for consolidating its core competitiveness.
(4) International trade risk. The photovoltaic application market is blooming, with rapidly increasinginstalled capacity. Some countries, considering energy security and manufacturing reshoring, have decidedto increase support for their domestic PV industry, and impose barriers on import of Chinese PV products.It is possible that similar events may continue in the future, which may impact Chinese PV industry.
Risk response measures: The Company will continue to monitor international trade situation anddevelop strategies to address trade barriers, while strengthening its core competencies in product scale,technology, and cost. By creating higher value for customers, providing more efficient services, andenhancing its market share, the Company aims to mitigate the potential impact.
(5) Other risks from force majeure. In recent years, there have been frequent occurrences ofunexpected public health events, natural disasters, and geopolitical conflicts, which have resulted indisruptions in logistics and transportation, prolonged installation and construction cycles, and mismatchesin supply and demand within the industry chain. Similar force majeure events may continue to happen inthe future, posing risks to feed companies’ operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeurerisks. By leveraging its industry chain resources and core competitive advantages, it will enhance supplychain collaboration, boost customer development and maintenance efforts, and mitigate the adverse impactof force majeure risks on its operations.
(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. Company governance"√ Applicable" "□ Not applicable"In the reporting period, the Company further improved its organizational structure and governancestructure, and various internal systems, and risk management given its actual conditions in strict accordancewith the Company Law, Securities Law, Code of Corporate Governance for Publicly Listed Companies andother legal requirements. The general meeting, the board of directors, the supervisory committee and themanagement of work under clear powers and responsibilities, having formed a procedure-based governancestructure for the legal entity to ensure its smooth and efficient running in accordance with regulations.(I) 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 general meeting. Board of directors, supervisory committee andthe management performed independently and the Company had independent businesses and was able tooperate 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 for which the voting rights of related directors were disabled. Therelated transactions were priced fairly without any influence on the Company's independence or harm to thelisted company.(II) Shareholders and general meetingIn the reporting period, the Company held one annual general meeting and two interim generalmeetings. The procedures for general meeting were in compliance with the Listing Rules of the ShanghaiStock Exchange, Articles of Association of the Company, and Rules of Procedure for General Meeting andsafeguarded the legitimate interests of the Company and its shareholders. The convening, holding, voting,and result disclosure were strictly implemented in accordance with the above rules, which effectivelyensured shareholders’ right to information, participate, and vote on major matters of the Company, as wellas safeguarded the equal status and legitimate rights and interests of shareholders.(III) Directors and the boardAt the 2021 annual general meeting held on May 16, 2022, the eighth board of directors was elected. Itis composed of nine directors, including three independent directors and three female directors. During thereporting period, the board held 11 meetings. All directors attended the board meetings in accordance withthe Company’s Articles of Association and Rules of Procedure of the Board of Directors, fully discussedvarious proposals, and took into account the interests and expectations of small and medium investors,thereby enhancing the proper decision-making of the board and promoting the stability and efficiency ofthe Company’s production and operation. The board has four committees, namely the Strategy Committee,Remuneration and Assessment Committee, Nomination Committee, and Audit Committee, whichperformed their duties according to corresponding rules of procedure, ensuring the orderly and efficientoperation of the Company.(IV) Supervisory committee and supervisorsThe eighth supervisory committee elected at the 2021 annual general meeting on May 16, 2022consists of three supervisors, including one employee representative and one female supervisor. During thereporting period, the committee held nine meetings, and the supervisors strictly performed their duties inaccordance with relevant laws and regulations such as the Company Law, the Company’s Articles ofAssociation, and the Rules of Procedure of the Supervisory Committee. They exercised their powersindependently in accordance with the law and promoted the standard operation of the Company. Thesupervisory committee fulfilled its supervisory responsibilities diligently by imposing compliantsupervision over important matters such as the use of raised funds, employee shareholding plans, andfinancial conditions, effectively safeguarding the rights and interests of the Company and its shareholders.(V) Disclosure and transparencyThe Company attaches great importance to information disclosure and strictly observes the provisionsof Shanghai Stock Exchange on information disclosure of listed companies as set forth in Securities Law.
In the reporting period, board of directors, board of supervisors and management of the Companyprudentially signed written confirmations to ensure that the authenticity, accuracy, completeness, timelinessand fairness of the disclosure. The Company received the best rating (Grade A) on information disclosure2021 - 2022 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.(VI) Investor relationship managementThe 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 general meetings, performance briefings and investorplatforms. In addition, it responded carefully and patiently to queries from investors via phone calls, emails,visits and http://sns.sseinfo.com/, which helped investors understand and gain confidence in the Company,and maintained the Company's image in the capital market. In 2022, the company was awarded multiplehonors, including the Top 50 Best Listed Companies by New Fortune for the fourth time, the SocialResponsibility Award, Most Valuable Investment Award, and Golden Bull Secretary Award by ChinaSecurities Journal. The company was also recognized as one of the Top 100 Main Board Companies andreceived the Annual Excellent Management Team and Sunshine Secretary awards by STCN.(VII) Safeguard the rights and interests of shareholdersThe Company highly prioritizes the rights and interests of shareholders, in particular small andmiddle-sized ones and seeks for sustainable returns to shareholders. During the reporting period, theCompany strictly followed the Shareholder Dividend Return Plan for the Next Three Years (2021-2023).After being approved at the 28th meeting of the 7th board of directors and the 2021 annual general meeting,the 2021 Profit Distribution Plan was implemented, and on May 30, 2022, a cash dividend of 9.12 yuan(including tax) was distributed to all shareholders for every 10 shares. According to the 2022 ProfitDistribution Proposal approved at the 10th meeting of the 8th board of directors in 2023, the Companyintended to distribute a cash dividend of 28.58 yuan (including tax) per ten shares to shareholders. Thisproposal will be submitted to the 2022 annual general meeting for consideration.
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 measure taken by the controlling shareholder and actual controller of the Company forensuring 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 from beingindependent 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 independenceThe 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 takes 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 accounting
system and financial management system, being able to make financial decisions independently. As anindependent taxpayer, the Company makes tax returns and pays taxes under laws. The Company hasindependent bank accounts and a special account for the use of funds raised for projects. The Companydoes not share any bank account with its controlling shareholder, actual controller and/or businesses undertheir control.
(IV) Structure independenceThe Company has a completed governance structure consisting of general meeting, board of directorsand board of supervisor with respective procedures. Furthermore, the Company has developed a completeoperation management system with independence in power of management and not influenced by itscontrolling 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, actualcontroller 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 general meeting
| Session No. | Session date | Link to the designated website where the published resolutions are available | Disclosure date | Resolutions |
| 2021 annual general meeting | May 16, 2022 | http://www.sse.com.cn | May 17, 2022 | The following proposals were approved during the meeting: the 2021 Board of Directors Work Report, 2021 Supervisory Committee Work Report, 2021 Annual Report and Executive Summary, 2021 Year-end Closing Report, Proposal on Profit Distribution for 2021, Independent Directors’ 2021 Performance Report, Proposal on the Reappointment of Accounting Firm, Proposal on Comprehensive Credit Application for 2022, Proposal on Mutual Guarantee for the Company and Its Subsidiaries in 2022, Proposal on Providing Guarantees for Customers of the Company in 2022, Proposal on the Operation of the Commercial Bill Pool in 2022, Proposal on the Election of Members of the 8th Board of Directors, Proposal on the Election of Members of the 8th Supervisory Committee, Proposal on the Registration and Issuance of Super Short-term Commercial Papers, Proposal on the Registration and Issuance of Medium-term Notes, Proposal on the Adjustment of Allowances for Directors and Supervisors, Proposal on the Revision of Articles of Association, Proposal on the Revision or Formulation of a Series of Policies and Proposal on the Progress and Future Development Plan for the High-purity Polysilicon and Solar Cell Business. |
| The 1st interim general meeting for the year 2022 | June 01, 2022 | http://www.sse.com.cn | June 02, 2022 | Proposals discussed and resolved: The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and its Summary, the Proposal on the Management Procedures on Tongwei Co., Ltd. Employee Share Plan 2022-2024, and 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 2022-2024. |
| The 2nd interim general meeting for the year 2022 | September 26, 2022 | http://www.sse.com.cn | September 27, 2022 | Proposals approved: The Proposal on Donations to the Earthquake-stricken Luding Area and the Proposal on the Election of Directors. |
Interim general meetings requested by the preferred shareholders whose voting rights have been restored"□ Applicable" "√ Not applicable"
Note on general 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 Shuqi (newly appointed) | Chair and CEO | F | 33 | March 21, 2023 | May 15, 2025 | 80,000 | 80,000 | 0 | 329.76 | No | |
| Yan Hu | Vice Chair of the Board of Directors | M | 59 | May 09, 2016 | May 15, 2025 | 836,650 | 836,650 | 0 | 413.97 | No | |
| Liu Hanyuan | Director | M | 58 | October 23, 2000 | May 15, 2025 | 0 | 0 | 0 | 466.98 | No | |
| Ding Yi | Director | F | 58 | May 12, 2020 | May 15, 2025 | 0 | 0 | 0 | 6.88 | No | |
| Li Peng (newly appointed) | Director | M | 41 | September 26, 2022 | September 25, 2025 | 0 | 0 | 0 | / | No | |
| Xie Yi (retired) | Director | M | 39 | May 03, 2016 | March 21, 2023 | 217,622 | 217,622 | 0 | 638.73 | No | |
| Wang Xiaohui (retired) | Director | M | 46 | May 08, 2019 | September 25, 2022 | 0 | 0 | 0 | / | No | |
| Fu Daiguo | Independent director | M | 58 | May 08, 2019 | May 15, 2025 | 0 | 0 | 0 | 13.75 | No | |
| Jiang Yumei (newly appointed) | Independent director | F | 59 | May 16, 2022 | May 15, 2025 | 0 | 0 | 0 | 10.00 | No | |
| Song Dongsheng (newly appointed) | Independent director | M | 60 | May 16, 2022 | May 15, 2025 | 0 | 0 | 0 | 10.00 | No | |
| Du Kunlun (retired) | Independent director | M | 54 | January 15, 2016 | May 15, 2022 | 0 | 0 | 0 | 3.75 | No | |
| Wang Jin (retired) | Independent director | M | 56 | May 03, 2016 | May 15, 2022 | 0 | 0 | 0 | 3.75 | No | |
| Deng San | Chair | F | 38 | May 05, 2017 | May 15, 2025 | 225,880 | 225,880 | 0 | 241.67 | No | |
| Yang Shixian (retired) | Supervisor | M | 50 | April 30, 2007 | May 15, 2022 | 158,100 | 0 | -158,100 | Secondary market trading | 51.62 | Yes |
| Chen Xiaohua (retired) | Supervisor | M | 53 | May 03, 2016 | May 15, 2022 | 0 | 0 | 0 | 1.13 | No |
| Cui Yong (newly appointed) | Supervisor | M | 40 | May 16, 2022 | May 15, 2025 | 0 | 0 | 0 | 3.13 | Yes | |
| Chen Pingfu (newly appointed) | Supervisor | M | 57 | May 16, 2022 | May 15, 2025 | 444,730 | 469,730 | 25,000 | Secondary market trading | 130.86 | No |
| Wang Shangwen (retired) | Senior manager | M | 59 | May 07, 2013 | May 15, 2022 | 659,050 | 659,050 | 0 | 61.32 | No | |
| Song Gangjie (retired) | Senior manager | M | 59 | May 07, 2013 | May 15, 2022 | 331,375 | 330,000 | -1,375 | Secondary market trading | 106.81 | No |
| Shen Jinzhu (retired) | Senior manager | M | 57 | May 09, 2016 | May 15, 2022 | 210,300 | 224,898 | 14,598 | Conversion of convertible bonds to shares | 58.98 | No |
| Li Bin (newly appointed) | Senior manager | M | 57 | May 16, 2022 | May 15, 2025 | 241,888 | 241,888 | 0 | 8,652.91 | No | |
| Xing Guoqiang (newly appointed) | Senior manager | M | 59 | May 16, 2022 | May 15, 2025 | 0 | 0 | 0 | 445.45 | No | |
| Gan Jufu (newly appointed) | Senior manager | M | 51 | May 16, 2022 | May 15, 2025 | 0 | 0 | 0 | 2,482.53 | No | |
| Guo Yizhong | Senior manager | M | 52 | May 07, 2013 | May 15, 2025 | 500,450 | 500,450 | 0 | 379.82 | No | |
| Zhang Lu | Senior manager | M | 44 | March 12, 2017 | May 15, 2025 | 281,600 | 281,600 | 0 | 229.76 | No | |
| Zhou Bin | Senior manager | M | 54 | May 08, 2019 | May 15, 2025 | 55,211 | 59,043 | 3,832 | Conversion of convertible bonds to shares | 615.43 | No |
| Yan Ke | Senior manager | M | 38 | May 08, 2019 | May 15, 2025 | 0 | 0 | 0 | 227.43 | No | |
| Total | / | / | / | / | / | 4,242,856 | 4,126,811 | -116,045 | / | 15,586.42 | / |
| Name | Work experience |
| Liu Hanyuan | Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer. He was the chair of the first to sixth board of directors of the Company, and a member of the seventh board of the Company. He is the chair of the board of directors of Tongwei Group and a director of the 8th 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 vice chair of All-China Federation of Industry and Commerce, the executive chairman of CNECC. |
| Xie Yi | Male, born in 1984, MIM from Imperial College London, UK, member of the CPC. He was the president assistance of Tongwei Group, chair of the board of directors of Tongwei Solar (Hefei) Co., Ltd., chair of the board of directors of Tongwei Solar (Chengdu) Co., Ltd., and chair of the 8th board of directors of the Company. Other social positions include, a member of the 13th Sichuan Provincial CPPCC Committee, a deputy to the 14th 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 third 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, chief accountant, president, and secretary of the board of directors of Tongwei Co., Ltd., and a director of the board of directors (1st, 2nd, 4th, 5th, 6th, and 7th) of Tongwei Co., Ltd. He is the vice chair of the 8th board of directors of the Company. He is also an executive member of China Association for Public Companies (CAPCO), the legal representative and vice-chair of Sichuan Association for Listed Companies, vice chair of Sichuan Enterprise Confederation and the Sichuan Entrepreneurs Association, vice-chairman of China Society of Forestry, Animal Husbandry and Fishery Economics, vice chair of Sichuan Research Institute for International Tax, and vice chair of Association of Feed Industry, and vice-chairman of Sichuan Fisheries Society. | |
| Liu Shuqi | Female, born in 1989, a bachelor from the Queen Mary University of London. She served as the assistance to President of the Company, the general manager of commerce in PV. She is now a supervisor of Tongwei Group, the chair of the 8th board of the Company and the Company's CEO. |
| 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, the executive general manager of M&A Department of Investment Banking Committee of CITIC Securities, the executive director of China Life Asset Management Co., Ltd., a director of Beijing Jingneng Power Co., Ltd. and a director of the 7th and 8th boards of the Company. |
| Li Peng | Male, born in 1982, doctor's degree in finance from School of Economics, Xiamen University. He served as a senior manager of investment banking, a deputy general manager and senior vice president of energy and chemical industry group, and director of investment banking management committee at CITIC Securities Co., Ltd; a senior research analyst and responsible person for alternative investment and equity investment (secondary) at the Innovation Business Division of China Life Asset Management Co., Ltd. He currently serves as the Head of ED (Alternative Investment) and the Equity Investment (Secondary Market) Department at China Life Asset Management Co., Ltd; a director of Beijing Jingneng Power, China Tea, and Oriental Wisdom (Hebei) New Energy Co., Ltd. He is director of the 8th board the Company. |
| Ding Yi | Female, born in 1964, a member of the Communist Party of China, doctoral degree in economics from the Renmin University of China. She worked at Renmin University of China, Huaneng Power International, and China Life Asset Management Co., Ltd. She served as the chair of Huaneng Capital Services Co., Ltd., Great Wall Securities and other companies. She is a director of the 8th board of directors of the Company and also serves as an independent director of Huaxia Bank Co., Ltd, Huatai Asset Management Co., Ltd., SF International and Yuanshi 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, 6th and 7th boards of directors of the Company. |
| 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 Elion Energy Company Limited and Shuangdeng Cable Co., Ltd., and an external director of the SPIC Guangdong Electric Power Co., Ltd. He was 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 8th board of directors of the Company, and also an independent director of Maccura Biotechnology Co., Ltd. and Sichuan Langjiu Group Co., Ltd. (which has planned its IPO). |
| Jiang Yumei | Female, born in 1963, doctoral degree in Law, a mentor of PhD candidates a recipient of the Special Government Allowance granted by the State Council. She served as the Deputy Director of the Law Department and Vice Dean of the Law School, Deputy Director of the Graduate School and Executive Dean of the International Business School at Southwestern University of Finance and Economics. Currently, she serves as the executive president of the Institute of Comprehensive Research on China (Sichuan) Pilot Free Trade Zone at Southwestern University of Finance and Economics. She is also a member of the Decision-making Advisory Committee, and a legal advisor of the Sichuan Provincial Party Committee and Government; a member of the National Steering Committee for the Education of Applied Graduates in International Business; vice chairman of the China Cooperation Committee for International Trade Discipline; vice chair of the China Association of Trade in Services; vice chair of the Free Trade Zone and Port Committee of the China Academy of International Trade; vice chair of Sichuan Business Economics Association; expert of the Sichuan Trade Promotion Committee, certified expert on economics and management by the Ministry of Education; member of the Chengdu Arbitration Commission; expert for the Advisory Committee of Chengdu Pilot Free Trade Zone; member of the Decision-making Advisory Committee of the Luzhou Municipal Party Committee and Municipal Government; leader of several teams, including the “Collaborative Innovation Center for Outbound Direct Investment from Inland Areas” of Sichuan Province, Innovation Team for International Trade of Sichuan Province, and Comprehensive Reform Pilot Project for International Trade in Sichuan Province; independent director of Chengdu Xingrong Environment |
| Co., Ltd., Chengdu YMK Technology Co., Ltd., Liangshan Rural Commercial Bank Co., Ltd., and an external supervisor of Sichuan Tianfu Bank Co., Ltd. She is currently an independent director of the Company's eighth Board of Directors. | |
| Song Dongsheng | Male, born in 1962, with a master’s degree, senior engineer, recipient of the Special Government Allowance granted by the State Council, and an arbitrator of the Beijing Arbitration Commission. From 1981 to 1987, he worked in the Quality Section of the Technical Safety Division of the 11th Engineering and Construction Bureau of Sino-hydro Corporation, serving as a quality inspector and deputy section chief. From 1987 to 1991, he worked Gu County Branch of the 11th Engineering and Construction Bureau of Sino-hydro Corporation, serving as deputy chief of Technical Safety Section, a deputy chief of Technology Section, and a deputy director of Acceptance Office. From 1991 to 1995, he worked in the 11th Engineering and Construction Bureau of Sino-hydro Corporation, serving as a deputy head of the Technology Division and a director of the International Department. In 1996, he served as the Chinese representative and assistant project manager of the Xiaolangdi CGIC Joint Venture. From 1996 to 2004, he was the deputy head of the 11th Engineering and Construction Bureau of Sino-hydro Corporation. From 2004 to 2019, he worked for Sino-hydro Group, serving successively as deputy general manager, general manager, chairman, and general manager of the Sinohydro Corporation Limited, and the general manager of the Group. From 2016 to 2019, he served as the general manager of Power China International, chair of Power China Trade, vice president of China International Contractors Association, and chair of the International New Energy Solution. Since September 2019, he has served as an independent director of China Oil HBP Technology Co., Ltd., China National Complete Plant Import and Export Corporation Limited and Jiangsu Huasheng Tianlong Photoelectric Co., Ltd. He currently serves as an independent director of the Company's 8th board of directors. |
| 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 chair of the board of directors of Tongwei Group, and the chair of the 6th and 7th supervisory committees of the Company. She is the chair of the 8th supervisory committee 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 assistance and financial manager of He'nan Tongwei Feed Co., Ltd., and a member of the 3rd to 7th supervisory committees 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 head of Sichuan Office of Beijing Xinghua Accounting Firm (special general partnership). He was a member of the 6th and 7th supervisory committees of the Company. |
| Cui Yong | Male, born in 1982, graduated from the School of Civil and Commercial Law, Southwest University of Political Science, qualified to law practice. He served as an inspector at the Supervision and Inspection Department of Tongwei Group, an assistant to the head of the Department, a deputy head of the Department, and the head of the Department. Now he is a member of the 8th supervisory committee of the Company. |
| Guo Yizhong | Male, born in 1970, has held various positions including general manager of Jieyang Tongwei, general manager of Guangdong Tongwei, general manager of Guangdong and Shrimp Special Materials Area at Tongwei Agriculture Development Co., Ltd. He served as the Company's general manager from October 2015 to May 2022. Since May 2022, he has served as the president of Agriculture and Animal Husbandry of the Company. He has also served as executive vice president of the 8th Council of China Feed Industry Association and member of the Quality and Safety Work Committee, vice president of Sichuan Association of Feed Industry, vice president of Sichuan Animal Agriculture Association, executive vice president of Frog Industry Branch of China Aquatic Products Processing and Marketing Association, vice president of China Association for the Promotion of International Agricultural Cooperation, and entrepreneurship mentor and part-time researcher of China Livestock Feed Industry Research Center of Renmin University of China. |
| Chen Pingfu | Male, born in 1965, EMBA, CPA. He was the general manager of Tongwei, the general manager of Sichuan Area for Tongwei, the general manager of Vietnam Tongwei, the general manager of Tongwei overseas business, the general manager of Vietnam Tongwei 1st Area business, the deputy general manager of Tongwei Co., Ltd, and a member of the 4th and 5th board of directors of the Company. He is a member of the 8th supervisory committee of the Company. |
| Wang Shangwen | Male, born in 1963, MBA, doctor's degree. He served as president assistant, director of human resources, marketing director, technology director, and 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, deputy general manager 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. |
| 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., and deputy general manager of the Company and general manager of Hefei branch of the Company. |
| Li Bin | Male, born in 1966, graduated from Chongqing University with a major in mining machinery, MBA from Hong Kong Finance and Economics College. He is a member of the Communist Party of China and a senior mechanical engineer. He is an outstanding high-level talent in Leshan City, and has won honors such as the China Patent Excellence |
| Award and the Sichuan Science and Technology Progress Award. He serves as vice president of Tongwei Co., Ltd., chair and general manager of Yongxiang Co., Ltd., and general manager of Yongxiang New Energy Co., Ltd. His other social positions include the 8th Party Representative of Leshan City, member of the Standing Committee of the 8th People’s Congress of Leshan City, vice chair of the 7th Executive Committee of the Leshan Federation of Industry and Commerce (Chamber of Commerce). He is a representative of the 10th People’s Congress of Wutongqiao District, executive director of the Sichuan Strategic Emerging Industry Promotion Agency, and graduate student supervisor of the Power Engineering Department of the College of Chemical Engineering at Sichuan University. | |
| Zhang Lu | Male, born in 1979, post-doctoral degree and a researcher. As a recipient of the State Council Special Allowance, he is included into Chengdu Golden Panda Talent program and Chengdu Outstanding Talent Training program. He is an expert in the evaluation of National Science and Technology Progress Awards, vice chair of the Chinese Society of Fisheries, director of the Key Laboratory of Nutrition and Health Aquaculture of the Ministry of Agriculture and Rural Affairs, director of the Sichuan Provincial Key Laboratory of Aquatic Animal Nutrition and Feed Science, member of the National Feed Industry Standardization Technical Committee, chair of the Feed Testing Method Standardization Working Group of the National Feed Industry Standardization Technical Committee, deputy secretary-general of the Technical Committee on Aquatic Feed of the National Feed Industry Standardization Technical Committee, member of the National Aquatic Standardization Technical Committee, external supervisor of master candidates at Ocean University of China, guest professor at Nanjing Agricultural University, external supervisor of master candidates at Sichuan Agricultural University, external supervisor of master candidates at Hunan Agricultural University, and reviewer for international journals such as Aquaculture Research and Aquaculture International. Zhang Lu has led on or participated in 16 projects, including the Blue Granary project sponsored by the Chinese Ministry of Science and Technology and other key scientific and technological projects at the provincial and ministerial levels. Some outcomes have won one Second Prize of National Science and Technology Progress Award, one First Prize of Chinese Agricultural Science and Technology Award, two First Prizes of Sichuan Science and Technology Progress Award, and seven other important awards at provincial and ministerial levels. As the head of the Feed Detection Method Standardization Working Group of the National Feed Industry Standardization Technical Committee, Zhang Lu has led on the formulation or revision of 4 national and industry standards for feed, and another 2 national standards that she has led on have passed the preliminary review. Zhang Lu has published 16 papers as the first or corresponding author in domestic and foreign journals, including 11 SCI papers. 12 invention patents and 14 utility model patents were granted with him as the first inventor. He edited or translated two books. He served as the Technical Director of Fish Feed at Guangdong Yuehai Feed Group and holds positions as vice president and technology director of the Company, as well as deputy general manager of Tongwei Agricultural Development Co., Ltd. |
| Xing Guoqiang | Male, born in 1963, holds a bachelor’s degree in physics from Peking University, a master’s degree in physics and a doctor's degree in chemistry from Rice University. He has won the first prize of Shanghai Science and Technology Progress Award in 2004, the first prize of China Renewable Energy Society Science and Technology Progress Award in 2019, and the first prize of Jiangsu Science and Technology Award in 2020. He was selected into the Jiangsu High-level Program for Introducing Innovative and Entrepreneurial Talent. He holds more than 70 authorized patents in China and 28 authorized patents in the United States. He served as the leader/chief expert of some 863 Projects, a member of the Photovoltaic Professional Committee of China Renewable Energy Society, and co-chair of the SEMI International Technology Roadmap for Photovoltaic (ITRPV). He was formerly the chief technology officer and vice president of Hareon Solar Technology Co., Ltd. and senior vice president and chief technology officer of Canadian Solar. He is currently the chief technology officer of Tongwei Solar Co., Ltd. |
| Gan Jufu | Male, born in 1971, MBA from Xi’an Jiaotong University. He is a member of the Communist Party of China and a senior chemical engineer. He has been honored as excellent expert with outstanding contributions in Sichuan Province and a model individual in the science and technology community of Sichuan Province. He has twice won the second prize of Science and Technology Progress Award in Sichuan Province, as well as the special prize, first prize of Science and Technology Progress Award in Leshan City. He has applied for 101 patents for technological achievements in which he has served as a project leader or participant, and 66 of them have been granted, including 5 inventions for which he is one of the top two inventors. He held important positions in companies such as Emei 739, Xinguang Silicon Technology, and Jiangsu Zhongneng. He joined the Company in June 2013 and has served as the chief engineer and deputy general manager of Sichuan Yongxiang Polysilicon Co., Ltd., the general manager of Inner Mongolia Tongwei High-purity Polysilicon Co., Ltd. He is now the director of the Technology Center (National) of Yongxiang Co., Ltd., the project director of Sichuan Yongxiang Energy Technology Co., Ltd., the executive vice president and director of the Leshan West Silicon Materials Photovoltaic and New Energy Industry Technology Research Center. |
| 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. He is the secretary of the 8th board of directors of the Company. |
Other notes"√ Applicable" "□ Not applicable"According to the Company Law and the Articles of Association of the Company, the term of office of the seventh board of directors and supervisory committeeof the Company expired on May 15, 2022. On May 16, 2022, the Company held the annual general meeting for the year 2021, which elected the members of theeighth board of directors and supervisory committee. On the same day, the first meeting of the eighth board of directors of was held, with the new management teamof the Company appointed. Among the above named directors, supervisors and senior managers, Liu Shuqi, Jiang Yumei, Song Dongsheng, Cui Yong, Li Bin, XingGuoqiang and Gan Jufu were newly appointed during the reporting period; Du Kunlun, Wang Jin, Yang Shixian, Chen Xiaohua, Wang Shangwen, Song Gangjie andShen Jinzhu retired during the reporting period; and Chen Pingfu took on the office as a supervisor after he left the office as a senior manager. On September 26, 2022,the Company held its second extraordinary general meeting for the year 2022. Wang Xiaohui resigned from the board of directors due to work reasons. At the meeting,Li Peng was elected as a director of the eighth board of directors and appointed as a member of the Strategic Committee.
(II). Other offices of directors, supervisors and senior management currently in office and having leftoffice 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. | Chair of the board of directors | March 2008 | |
| Liu Shuqi | Tongwei Group Co., Ltd. | Supervisor | December 2019 | |
| Cui Yong | Tongwei Group Co., Ltd. | Head of the Supervision Department | April 2022 | |
| Wang Xiaohui | China Life Asset Management Company Limited | Executive director | March 2017 | September 2022 |
| Li Peng | China Life Asset Management Company Limited | Head of Equity Investment (secondary) Department | August 2021 | |
| 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 | December 2012 | |
| Wang Jin | International Energy Research Institute | Head | June 2012 | |
| Shuangdeng Cable Co., Ltd. | Independent director | August 2020 | ||
| Elion Energy Company Limited | Independent director | March 2021 | ||
| SPIC Guangdong Electric Power Co., Ltd. | External director | March 2020 | ||
| Fu Daiguo | Southwestern University of Finance and Economics | Professor | December 2002 | |
| Maccura Biotechnology Co., Ltd. | Independent director | January 2019 | ||
| Sichuan Langjiu Co., Ltd. | Independent director | July 2019 | ||
| Ding Yi | Hua Xia Bank Co., Ltd. | Independent director | September 2020 | |
| Huatai Asset Management Co., Ltd. | Independent director | September 2020 | ||
| S.F. Holding Co., Ltd. | Independent director | December 2022 | ||
| Yuanshi New Materials Co., Ltd. | Independent director | November 2021 | ||
| Xi'an Togeek Information Technology Co., Ltd. | Senior Advisor | January 2022 | ||
| Wang Xiaohui | Beijing Jingneng Power Co., Ltd. | Director | December 2017 | December 2022 |
| Chen Xiaohua | Beijing Xinghua Accounting Firm (special general partnership) | Head of Sichuan office | September 2012 | |
| Song Dongsheng | China Oil HBP Technology Co., Ltd. | Independent director | September 2019 | |
| China National Complete Plant Import and Export Corporation Limited | Independent director | April 2020 | ||
| Jiangsu Huasheng Tianlong Photoelectric Co., Ltd. | Independent director | June 2020 | ||
| Li Peng | Oriental Wisdom (Hebei) New Energy Co., Ltd. | Director | February 2022 | |
| Beijing Jingneng Power | Director | December 2022 |
| China Tea | Director | December 2019 | ||
| Jiang Yumei | Southwestern University of Finance and Economics | Executive President of the Institute of Comprehensive Research on China (Sichuan) Pilot Free Trade Zone | April 2017 | |
| Chengdu Xingrong Environment Co., Ltd. | Independent director | August 2020 | ||
| Chengdu YMK Technology Co., Ltd. | Independent director | May 2022 | ||
| Liangshan Rural Commercial Bank Co., Ltd. | Independent director | October 2022 | ||
| Sichuan Tianfu Bank Co., Ltd. | External supervisor | May 2022 | ||
| Note on offices in other entities | None. | |||
(III). Renumeration of directors, supervisors, and senior managers"√ Applicable" "□ Not applicable"
| Procedure for determining the renumerations of directors, supervisors and senior managers | In accordance relevant provisions of the Company Law, the Articles of Association, and Working Rules on the Remuneration and Review Committee of the Board, the compensation policies and plans for directors are proposed by the Remuneration and Review Committee, considered by the board of directors, and then submitted to the general meeting for approval. The compensation policies and plans for directors are considered by the supervisory committee, and then submitted to the general meeting for approval. The compensation and performance review procedures applicable to senior managers are approved by the board for execution. |
| 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 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 | 155,864,200 yuan |
(IV). Changes in directors, supervisors, and senior managers"√ Applicable" "□ Not applicable"
| Name | Title | Change | Reason for change |
| Du Kunlun | Independent director | Resigned | Retired after term expiry |
| Wang Jin | Independent director | Resigned | Retired after term expiry |
| Yang Shixian | Supervisor | Resigned | Retired after term expiry |
| Chen Xiaohua | Supervisor | Resigned | Retired after term expiry |
| Chen Pingfu | Deputy General Manager | Resigned | Retired after term expiry |
| Wang Shangwen | Deputy General Manager | Resigned | Retired after term expiry |
| Song Gangjie | Deputy General Manager | Resigned | Retired after term expiry |
| Shen Jinzhu | Deputy General Manager | Resigned | Retired after term expiry |
| Wang Xiaohui | Director | Resigned | Resigned for work reasons |
| Liu Shuqi | Director | Elected | |
| Li Peng | Director | Elected | |
| Jiang Yumei | Independent director | Elected | |
| Song Dongsheng | Independent director | Elected | |
| Cui Yong | Supervisor | Elected | |
| Chen Pingfu | Supervisor | Elected | |
| Li Bin | Vice president | Engaged | |
| Xing Guoqiang | Director of Technology Center (National) at Tongwei Solar | Engaged | |
| Gan Jufu | Director of Technology Center (National) at Yongxiang Co., Ltd. | Engaged |
(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 |
| 24th meeting of the 7th board of directors | February 21, 2022 | The proposals on Clarifying the Plan for Public Issuance of Convertible Bonds, The Plan for the Public Listing of Convertible Bonds issued by the Company and Opening a Special Account for Fundraising and Signing a Regulatory Agreement were approved. |
| 25th meeting of the 7th board of directors | March 09, 2022 | The following proposals were approved: Proposal on Using Raised Funds to Replace Self-Raised Funds Previously Invested, Proposal on Using Bills (including Bank Acceptance Drafts and Letters of Credit) to Pay for Projects and Replace them with Raised Funds, and Proposal on Using a Portion of Temporarily Idle Raised Funds to Supplement Working Capital. |
| 26th meeting of the 7th board of directors | March 21, 2022 | The Proposal on Signing Significant Sales Contracts was passed. |
| 27th meeting of the 7th board of directors | March 31, 2022 | The Proposal on Investing into the Construction of the 32 GW High-purity Silicon Project was approved. |
| 28th meeting of the 7th board of directors | April 22, 2022 | The following proposals were approved during the meeting: the 2021 Board of Directors Work Report, 2021 General Manager Work Report, 2021 Annual Report and Executive Summary, 2021 Year-end Closing Report, Proposal on Profit Distribution for 2021, 2021 ESG Report, 2021 Assessment Report on Internal Controls, 2021 Audit Report on Internal Controls, Audit Committee’s Summary on the 2021 Audit Work performed by Sichuan Huaxin (Group) CPA (Special-General Partnership), Independent Directors’ 2021 Performance Report, Special Report on the Storage and Use of Raised Funds for 2021, Proposal on the Provision of Asset Impairment and Scrap of Fixed Assets for 2021, Proposal on the Changes in Accounting Policies and Accounting Estimates, Proposal on the Reappointment of Accounting Firm, Proposal on Comprehensive Credit Application for 2022, Proposal on Mutual Guarantee for the Company and Its Subsidiaries in 2022, Proposal on Providing Guarantees for Customers of the Company in 2022, Proposal on the Operation of the Bill Pool in 2022, Proposal on the Estimation of Daily Related-party Transactions in 2022, Proposal on Using Short-term Surplus Funds for Wealth Management Purpose in 2022, Proposal on Hedging Business in 2022, Proposal on Applying for Registration and Issuance of Super and Short-Term Commercial Papers, Proposal on the Election of Members of the 8th Board of Directors, Proposal on the Adjustment of Allowances for Directors, Proposal on the Revision of Articles of Association, Proposal on the Revision or Formulation of a Series of Policies, Proposal on the Progress and Future Development Plan for the High-purity Polysilicon and Solar Cell Business, Q1 2022 Report, and Proposal on Holding the Annual General Meeting for the Year 2021. |
| 1st meeting of the 8th board of directors | May 16, 2022 | Proposals discussed and resolved: Proposal on Election of the Chair and Vice-chair of the Company, Proposal on Election of Members of the Four Committees under the |
| 8th Board of Directors, Proposal on Engagement with the Company’s Management Level, Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and its Summary, the Proposal on the Management Procedures on Tongwei Co., Ltd. Employee Share Plan 2022-2024, the Proposal on Requesting the General Meeting to Authorize the Board of Directors to Deal with Issues Relating to Tongwei Co., Ltd. Employee Share Plan 2022-2024, and Proposal on Holding the 1st Interim General Meeting in 2022. | ||
| 2nd meeting of the 8th board of directors | August 16, 2022 | Reviewed and approved: 2022 Semi-year Report and its Summary, the 2022 Semi-year Special Report on the Storage and Use of Funds Raised, Proposal on Investing into 200,000-ton High-purity Polysilicon and Supporting Projects in Baotou, and Proposal on Investing into 200,000-ton High-purity Polysilicon and Supporting Projects in Baoshan. |
| 3rd meeting of the 8th board of directors | September 08, 2022 | Proposals approved: the Proposal on Donations to the Earthquake-stricken Luding Area, Proposal on Changes of Directors and Election of Directors, and Proposal on Holding the 2nd Interim General Meeting in 2022. |
| 4th meeting of the 8th board of directors | September 22, 2022 | The Proposal on Investing into the Construction of the 25 GW High-purity Silicon Project and Proposal on Changes in Accounting Estimates were approved. |
| 5th meeting of the 8th board of directors | October 24, 2022 | Reviewed and approved the Q3 2022 Report of the Company. |
| 6th meeting of the 8th board of directors | December 12, 2022 | Approved the Proposal on Using Some Idle Raised Funds to Temporarily Supplement Current Funds, and the Proposal on Investing the Project of 25GW High-purity Solar Modules in Nantong. |
VI. Performance of duties by directors(I). Attendances at board of directors meetings and general meetings by directors
| Director name | Independent director | Attendance at board of directors meetings | Attendance at general meetings | |||||
| Number of board of directors meetings the director should have attended in the year | In person | Virtual | By proxy | Number of absences | Absence from two consecutive meetings | Number of general meetings the director has attended | ||
| Liu Hanyuan | No | 11 | 11 | 9 | 0 | 0 | No | 2 |
| Xie Yi | No | 11 | 11 | 9 | 0 | 0 | No | 3 |
| Yan Hu | No | 11 | 11 | 9 | 0 | 0 | No | 3 |
| Liu Shuqi | No | 6 | 6 | 5 | 0 | 0 | No | 2 |
| Li Peng | No | 2 | 2 | 2 | 0 | 0 | No | 0 |
| Ding Yi | No | 11 | 11 | 11 | 0 | 0 | No | 0 |
| Fu Daiguo | Yes | 11 | 11 | 9 | 0 | 0 | No | 1 |
| Song Dongsheng | Yes | 6 | 6 | 6 | 0 | 0 | No | 0 |
| Jiang Yumei | Yes | 6 | 6 | 5 | 0 | 0 | No | 1 |
| Wang Xiaohui (retired) | No | 9 | 9 | 9 | 0 | 0 | No | 0 |
| Du Kunlun (retired) | Yes | 5 | 5 | 4 | 0 | 0 | No | 1 |
| Wang Jin (retired) | Yes | 5 | 5 | 5 | 0 | 0 | No | 0 |
Note on absence from two consecutive meetings"□ Applicable" "√ Not applicable"
| Number of board of directors meetings held in the year | 11 |
| Number of physical meetings | 0 |
| Number of virtual meetings | 9 |
| Number of virtual and physical combined meetings | 2 |
(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, Jiang Yumei, and Yan Hu |
| Nomination Committee | Jiang Yumei, Liu Shuqi, and Song Dongsheng |
| Remuneration and Review Committee | Song Dongsheng, Fu Daiguo and Liu Shuqi |
| Strategy Committee | Liu Shuqi, Liu Hanyuan, Yan Hu, Song Dongsheng, and Li Peng |
(2).Five meetings held by the Audit Committee in the reporting period
| Session date | Content | Important opinions and recommendations | Other information on performance of duties |
| February 28, 2022 | Discussed and reviewed Issues Concerned relating to the Work of 2021 Annual Report | Based on the audit results before and in 2021, Tongwei Co., Ltd has been running in accordance with regulations, with robust internal controls and adequate functioning of its internal audit and supervision system for effective risk prevention. According to these internal audits, due to the large number of branches and subsidiaries of the Company, the annual financial statements and the notes to the financial statements concern a large amount of data and text descriptions where there were a small number of data errors and inaccurate text expressions. These errors and inaccurate expressions are not core major problems whose risks can be well controlled. The 2021 annual report must be prepared in strict accordance with Standards on Annual Reports of Publicly Listed Company of CSRC, the Notice on 2021 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. Given the disclosure timeline, the annual report and relevant materials of proposals to board of directors must be drafted before April 3, 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. |
| April 17, 2022 | Considered the Letter of Communication with the Governance Level from Huaxin Accounting Firm | Communicated with Sichuan Huaxin on the following topics: 1. Sichuan Huaxin declaration on its independence; 2. How well the audit plan is executed; 3. The key audit matters and how well the responses are executed; 4. Evaluate the implementation of responses to other material misstatement risks; 5. Adjustments of audit differences; 6. Other important issues, including changes in accounting policies, the treatment of provision for PV powerplant impairment, loss from scrap of fixed assets, goodwill impairment testing, outward guarantee and related-party transactions. | 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. |
| April 19, 2022 | 1. Considered the 2021 Annual Report of Tongwei Co., Ltd. 2. Considered the Summary Report on 2021 Audit Work by Sichuan Huaxin (Group) CPA (Special General Partnership) 3. Considered the Proposal on | 1. Passed the 2021 Annual Report of Tongwei Co., Ltd. 2. Passed the Summary Report on 2021 Audit Work by Sichuan Huaxin (Group) CPA (Special General Partnership) 3. Passed the Proposal on Renewing the Engagement with the Accounting Firm 4. Passed the Proposal on Expected Daily Related-party Transactions in 2022 5. Passed the Proposal on 2021 Provision for Asset Impairment and Loss from Scrap of Fixed Assets |
| Renewing the Engagement with the Accounting Firm 4. Considered the Proposal on Expected Daily Related-party Transactions in 2022 5. Considered the Proposal on 2021 Provision for Asset Impairment Reserve and Loss from Scrap of Fixed Assets 6. Considered the Special Report on Storage and Actual Use of Funds Raised in 2021 7. Considered the Proposal on Changes in Accounting Policies and Accounting Estimates 8. Considered the Proposal on Revision or Re-formulation of the Related-party Transaction Policy of Tongwei Co., Ltd., the Outward Guarantee Policy of Tongwei Co., Ltd., the FX Hedging Management Policy of Tongwei Co., Ltd., the Fundraising Management Policy of Tongwei Co., Ltd., and the Short-term Wealth Management Policy of Tongwei Co., Ltd. 9. Considered the 2021 Performance Report by Audit Committee 10. Considered the Q1 2022 Report of Tongwei Co., Ltd. | 6. Passed the Special Report on Storage and Actual Use of Funds Raised in 2021 7. Passed the Proposal on Changes in Accounting Policies and Accounting Estimates. 8. Passed the Proposal on Revision or Re-formulation of the Related-party Transaction Policy of Tongwei Co., Ltd., the Outward Guarantee Policy of Tongwei Co., Ltd., the FX Hedging Management Policy of Tongwei Co., Ltd., the Fundraising Management Policy of Tongwei Co., Ltd., and the Short-term Wealth Management Policy of Tongwei Co., Ltd. 9. Passed the 2021 Performance Report by Audit Committee 10. Passed the Q1 2022 Report of Tongwei Co., Ltd. | ||
| August 02, 2022 | Considered the 2022 Semi- Annual Report of Tongwei Co., Ltd. | Passed the 2022 Semi-Annual Report of Tongwei Co., Ltd. | |
| October 14, 2022 | Considered the Q3 2022 Report of Tongwei Co., Ltd. | Passed the Q3 2022 Report of Tongwei Co., Ltd. |
(3).Two meetings held by the Strategy Committee in the reporting period
| Session date | Content | Important opinions and recommendations | Other information on performance of duties |
| August 12, 2022 | Reviewed and approved: the Proposal on Investing into 200,000-ton High-purity Polysilicon and Supporting Projects in Baoshan ,and Proposal on Investing into 200,000-ton High-purity Polysilicon and | These projects are can help the Company leverage its comprehensive advantage in technology, cost, quality and management in terms of polysilicon sector, and further enhance the leading position of the Company in this sector. The Strategy Committee agreed the proposal which was then submitted to |
| Supporting Projects in Baotou. | the board of directors for consideration. | ||
| September 21, 2022 | Approved the Proposal on Investing the Project of 25GW High-purity Solar Modules in Yancheng | Proper extension of its module business is aligned with the Company’s long-term strategic goal of becoming a world-class clean energy operator, and can help release its leadership in high-purity polysilicon and solar cell areas, to build a PV industrial structure with higher competitiveness. |
(4).Three meetings held by the Nomination Committee in the reporting period
| Session date | Content | Important opinions and recommendations | Other information on performance of duties |
| April 19, 2022 | Approved the Proposal on Nomination of Candidates for the Directors of the 8th Board | The committee checked the eligibility of candidates for independent directors and directors of the 8th board and made the following resolutions: 1. Mr. Liu Hanyuan, Mr. Xie Yi, Mr. Yan Hu, Ms. Liu Shuqi, Mr. Wang Xiaohui and Ms. Ding Yi are nominated as the candidates for the directors of the 8th board; 2. Mr. Fu Daiguo, Ms. Jiang Yumei and Mr. Song Dongsheng are nominated as the candidates for the independent directors of the 8th board. 3. The above candidates are to be considered by the board. | |
| May 13, 2022 | Approved the Proposal on Election of the Chair and Vice-Chair of the Board, the Proposal on Appointment of the General Manager, the Proposal on Appointment of the Board Secretary and the Proposal on Appointment of the Deputy General Manager and Financial Director | Approved the meeting topics which were to be considered by the board. | |
| August 30, 2022 | Approved the Proposal on Change of Directors and Election of Directors | Due to the job transfer, Mr. Wang Xiaohui, the director nominated by China Life, can no longer serve as a director of the Company’s board. Therefore, Mr. Li Peng is nominated as a director of the Company’s board. Mr. Li Peng is experienced in investment, and his experience and ability makes him eligible for a director of the Company. It is proposed to appoint Mr. Li Peng as a director. |
(5).Two meetings held by the Remuneration and Review Committee in the reporting period
| Session date | Content | Important opinions and recommendations | Other information on performance of duties |
| April 19, 2022 | Passed the Proposal on Adjustment of the Allowances for Directors | Given the diligence and dedication of the directors during their tenure, and the significant contributions they have made to the regulated operations, internal systems and development of the Company, and in light of the Company’s current scale and status, with reference to the remuneration standards for directors of listed companies of the same size |
| in the same industry, it is proposed to adjust the allowance for each independent director from 100,000 yuan to 160,000 yuan per year pre-tax, and the allowance for each other director from 50,000 yuan to 80,000 yuan per year pre-tax. The above proposal is agreed to be submitted to the board for consideration. | |||
| December 30, 2022 | Approved the Proposal on the Compensation and Performance Assessment of Senior Management for the Year 2022 | The 2022 compensation and performance assessment plan for senior management is compliant, reasonable, and has effectively motivated the management team, laying a solid foundation for the Company’s business development in 2023. The proposal is approved to be submitted to the board for consideration. |
(6).Specific circumstances where objections were raised
"□ Applicable" "√ Not applicable"
VIII. Note on supervisory committee's findings of the Company's risks"□ Applicable" "√ Not applicable"The supervisory committee 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 | 166 |
| Number of active employees of major subsidiaries | 41,048 |
| Total employees | 41,214 |
| Number of retirees for whom the parent and major subsidiaries must bear relevant expenses | 67 |
| Profession structure | |
| Profession | Number of employees |
| Production | 24,824 |
| Sales | 3,635 |
| Technology | 7,792 |
| Finance | 766 |
| Administration | 4,197 |
| Total | 41,214 |
| Education structure | |
| Education background | Number of employees |
| Master's degree or higher | 731 |
| Bachelor's degree | 7,892 |
| Three-year college | 9,943 |
| Three-year college or lower | 22,648 |
| Total | 41,214 |
(II). Compensation policy"√ Applicable" "□ Not applicable"Adhering to the principle of external competition and internal fairness, the Company has established afair, competitive and diverse salary and benefit system that motivates people for win-win results. In order toattract outstanding external talents, motivate, develop and retain internal potential talents, the Companycontinuously optimizes the salary and performance management system. By effectively linking salary toperformance, the Company leverages merit-based pay to mobilize employees, increase the overallefficiency and profitability of the organization, and improve the income level of employees. To maintainmoderately competitive salaries, the Company conducts periodic market research and salary cost analysis,adjusts the salary incentive strategy, and work out salaries based on factors such as job value and workintensity, thus maximizing the internal fairness of salary incentives.
(III). Training projects"√ Applicable" "□ Not applicable"Talent is the most essential resource in the process of Tongwei’s development and growth. Guided bythe cultural values of striving for excellence in everything, the Company has established a comprehensivetalent development system. Continuously efforts into talent selection, use, development and retention, andthe deployment of effective incentive policies fully guarantee the retention and personal development oftalent. The Company relies on its internal training mechanism, centered on the Tongwei Learning Center, tocombine high-quality education resources from internal and external sources, consolidate internalfoundations, and obtain excellent management methods. Externally, the Company actively learns fromadvanced management experience and advanced technology from the industry, and expands its ownbusiness advantages. To meet the development needs of employees at different levels and fields, theCompany has established a complete training system that focuses on internal training and integrates allbusiness lines and subsidiaries and branches. The Company also encourages employees to improve theirwork skills and proficiency, and provides certain economic incentives and support for their education and
training. Talent is the key to the development of Tongwei whose future is inseparable from talent. Tongweiwill continue to innovate its talent development model, optimize training methods, and strengthen its talentfoundation, providing a continuous driver for its high-quality development across the globe.
(IV). Labor outsourcing"□ Applicable" "√ Not applicable"
X. Proposal on profit distribution or capital reserve converted to share capital(I). Development, execution or adjustments of cash dividend policy"√ Applicable" "□ Not applicable"The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board ofdirectors and the 2020 annual general meeting specified that the Company preferred the cash dividendpolicy with minimum dividend payout ratio to ensure the execution of the profit distribution policy.
The 2021 Profit Distribution Proposal considered at the 28th meeting of the 7th board of directors onApril 22, 2022 and approved at the 2021 annual general meeting on May 16, 2022 stated that based on thetotal 4,501,548,184 shares, a cash dividend of 9.12 yuan (including tax) per ten shares would be paid to allshareholders for a total cash distribution of 4,105,411,943.81 yuan. This plan was fully executed on May 30,2022.The 2022 Distribution Proposal approved by the board meeting on April 21, 2023 stated that based onthe total 4,501,946,097 shares, a cash dividend of 28.58 yuan (including tax) per ten shares would be paidto all shareholders for a total cash distribution of 12,866,561,945.23 yuan. This plan will be submitted tothe 2022 annual meeting for consideration.
(II). Special note on cash dividend policy"√ Applicable" "□ Not applicable"
| Compliance with provisions of the Articles of Association or resolutions of the general 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 undistributed
profit where the Company achieved profits and the profit attributable to shareholders of the
parent company was positive, but no cash dividend proposal was raised"□ Applicable" "√ Not applicable"
(IV). Profit distribution and capital reserve converted to share capital in the reporting period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Bonus shares per 10 shares | / |
| Dividend per 10 shares (yuan) (including tax) | 28.58 |
| Shares converted from capital reserve per 10 shares | / |
| Cash distribution (including tax) | 12,866,561,945.23 |
| Net profit attributable to common shareholders of the listed company in the consolidated financial statements for the distribution year | 25,726,447,236.27 |
| % of net profit attributable to common shareholders of the listed company in the consolidated financial statements | 50.01 |
| Cash used for share repurchases that is included in the cash distribution | / |
| Total distribution (including tax) | 12,866,561,945.23 |
| The ratio of total distribution to the net profit attributable to common shareholders of the listed company in the consolidated financial statements | 50.01 |
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 without furtherprogress 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 plans"√ Applicable" "□ Not applicable"To fully mobilize employees in enthusiasm and creativity, and align the interests among shareholders,the Company, and employees, the Company has used employee share plans in recent years.The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary wasapproved at the 17th meeting of the 7th board of directors on February 9, 2021 and the first interim generalmeeting on February 25, 2021. The total size of employee shareholding under this plan is 2.7 billion yuan,with a term of 36 months. A total of 76,499,840 shares of the Company were purchased, accounting for
1.70% of the total share capital, at an average price of 34.43 yuan per share. The lock-up period is fromMay 21, 2021 to May 20, 2022. As of the end of the reporting period, this employee share plan wasunlocked but not expired.The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and its Summary wasapproved at the 1st meeting of the 8th board of directors on May 16, 2022 and the first interim generalmeeting on June 1, 2022. The total size of employee shareholding under this plan is 5.6 billion yuan, with aterm of 36 months. A total of 99,278,665 shares of the Company were purchased, accounting for 2.21% ofthe total share capital, at an average price of 55.28 yuan per share. The lock-up period is from July 6, 2022to July 5, 2023.
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 development and
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, and the workplan and its execution of the committee are considered at board meetings. Remuneration to senior managersconsists of base salary and performance-based bonus. The Remuneration and Review Committee pays fairand appropriate salaries given the Company's performance, needs of job positions, duties and workperformance to ensure the compensation and benefits of employees are competitive in the market andindustry.
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 the Companyon April 25, 2023.
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 2022, the Company had 251 subsidiaries including 239 domestic companies and 12overseas companies. The Company held shares directly in 34 subsidiaries and indirectly in 217 subsidiaries.It has completed management and control policies over subsidiaries. Regarding operation and businesscontrol, the Company has clear strategic goals. With completed organizational structure and businessprocesses, it has effectively made subsidiaries organic parts for its overall strategy for synergies in businessoperation and for the integration, creation and sharing of resources. Also, subsidiaries submit productionand operation statements to the Company as required so that it gains an understanding of and control overthe operation and management of subsidiaries. Regarding financial control, the Company has created apowerful financial control system consisting of clear policies and requirements on financial budgeting andexecution, funds with other parties, loans and guarantees. Subsidiaries have their financial affairs managedin strict accordance with the Company's financial management requirements and policies. Regardingpersonnel management, the Company sends directors, supervisors and senior managers to subsidiaries forwhich it is the controlling shareholder to effectively supervise them. At the same time, the Companyenhances the performance review on subsidiaries to better motivate their employees, drive theirdevelopment and ensure their overall operational targets are met.
XIV. Note on relevant information on internal control audit report"√ Applicable" "□ Not applicable"Sichuan Huaxin engaged by the Company has audited the Company’s 2022 internal controls andissued a report with standard unqualified opinion, details of which are in the 2022 Internal Control AuditReport on Tongwei Co., Ltd. disclosed on http:www.sse.com.cn on April 25, 2023 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 companies
□ Applicable √ Not applicable
XVI. Others"□ Applicable" "√ Not applicable"
Section V. Environmental and Social ResponsibilityI. Environmental information
| Environmental protection mechanisms established or not | Yes |
| Environmental protection investment in the reporting period (unit: 10,000 Yuan) | 88,814.43 |
(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 release
"√ Applicable" "□ Not applicable"
In the reporting period, the Company strictly observed applicable environmental laws, and regulationsin the construction and operation of environmental facilities, wastewater, waste gas and solid wasteproduced were discharged under relevant standards for clean production. Relevant environmentalinformation about the Company’s key polluting units and major subsidiaries is as follows:
(1) Sichuan Yongxiang Polysilicon Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.Number of release outlets: 1.Release 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.Release concentrations: COD: 10.45 mg/l, NH3-N: 0.433 mg/l and PH: 7.748, all of which complied withthe standards.Approved annual release limits: No limits for COD and NH3-N.2022 total release amounts: COD: 3.427 tons and NH3-N: 0.2085 tons.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.Major pollutant in the waste gas from manufacturing process is hydrogen chloride.Release method: continuous and stable release.Number of release outlets: 18.Release standards: Boiler smoke follows the special emission limits in Table 3 of the Emission Standard ofAir Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 150 mg/m? (EIArequirement is 80 mg/m?), and particles ≤ 20 mg/m?. exhaust gas from manufacturing process follows thegrade two standards in Table 2 of Integrated Emission Standard of Air Pollutants — hydrogen chloride≤100mg/m
.Release concentrations: boiler smoke — sulfur dioxide 0.34 mg/m?, nitrogen oxides 34.85 mg/m? andparticles 0.85 mg/m?; exhaust gas from manufacturing process: Hydrogen chloride up to 0.77 mg/m?, all ofwhich complied with the standards.Approved annual release limits: No limits for sulfur dioxide, hydrogen chloride, and particles; nitrogenoxides ≤ 53.1 tons.2022 total release amounts: nitrogen oxides 7.097 tons, lower than the approved amount.
(2) Sichuan Yongxiang New Energy Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.Number of release outlets: 1.Release standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15 mg/l; 6≤pH≤9.Release concentrations: COD 13.826 mg/l, NH3-N 2.048 mg/l and PH 6 - 9, all of which complied with thestandards.Approved annual release limits: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.2022 total release amounts: COD 8.35 tons and NH3-N 1.237 tons, each of which was lower than theapproved amount.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.Major pollutant in the waste gas from manufacturing process is hydrogen chloride.Release method: continuous and stable release.Number of release outlets: 14.Release standards: Boiler smoke follows the special emission limits in Table 3 of the Emission Standard ofAir Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 150 mg/m? (EIArequirement is 80 mg/m?), and particles ≤ 20 mg/m?. exhaust gas from manufacturing process follows thegrade two standards in Table 2 of Integrated Emission Standard of Air Pollutants — hydrogen chloride≤100 mg/m
.Release concentrations: In 2022, the Company’s gas-fired boilers mainly operated during the powerrestriction period in August, with an average emission limits of 1.661 mg/m? for sulfur dioxide, 55.454mg/m? for nitrogen oxides, and 5.188 mg/m? for particles. The highest concentration of hydrogen chloridein the process exhaust gas was 2.53 mg/m?.Approved annual release limits according to the new release permit: No limits for sulfur dioxide, hydrogenchloride, and particles; nitrogen oxides ≤ 55.017 tons.2022 total release amounts: nitrogen oxides 0.528 tons.
(3) Inner Mongolia Tongwei High-purity Crystalline Silicon Company:
① No wastewater release.
② Major pollutants in the boiler smoke: sulfur dioxide, nitrogen oxides and particles.Release method: continuous and stable release.Number of release outlets: 10Release standards on boiler smoke: emission limits for boilers in Table 2 of the Emission Standard of AirPollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m?, nitrogen oxides ≤ 200 mg/m? andparticles ≤ 20 mg/m?.Release standards on hydrogen production smoke: Air pollutant limits in Table 4 of the Emission Standardof Pollutants for Petroleum Chemistry Industry (GB31571-2015) — sulfur dioxide ≤100 mg/m?, nitrogenoxides ≤ 180 mg/m? and particles ≤ 20 mg/m?.
Release standards on process exhaust gas: hydrogen chloride ≤ 100 mg/m? subject to grade two standards inthe Integrated Standards for Emission of Air Pollutants (GB16297-1996).Boiler smoke release concentrations: sulfur dioxide 0.71 mg/m?, nitrogen oxides 53.21 mg/m? and particles
6.78 mg/m?, all of which complied with the standards.
Release concentrations of smoke from hydrogen production: sulfur dioxide 3.52 mg/m?, nitrogen oxides
42.43 mg/m? and particles 4.86 mg/m?, all of which complied with the standards.
Release concentrations of manufacturing process exhaust: hydrogen chloride 30.6mg/m? which compliedwith the standards.Approved annual release limits: sulfur dioxide ≤ 1.459 tons, nitrogen oxides ≤ 67.36 tons.2022 total release amounts: sulfur dioxide 0.171 tons; nitrogen oxides 6.2378 tons, each of which waslower than the approved amount.
(4) Yunnan Tongwei High-purity Crystalline Silicon Company:
① Major pollutants in the wastewater: COD, NH3-N, pH and SS.
Release method: intermittent release.Number of release outlets: 1.Release standards: Grade three standard in Table 4 of Integrated Wastewater Discharge Standard(GB8978-1996) — COD ≤ 500 mg/l; NH3-N no requirement; 6≤pH≤9; SS: 400 mg/L.Release concentrations: COD 32.25 mg/L; SS 11.5 mg/L; NH3-N 1.2985 mg/L.Approved annual release limits: The wastewater is discharged to the industrial park's wastewater treatmentstation without the need to assess total release amount.
② Major pollutant in the waste gas: hydrogen chloride.
Release method: continuous and stable release.Number of release outlets: 6.Release standards: hydrogen chloride ≤ 100 mg/m? subject to grade two standards in Table 2 of IntegratedStandards for Emission of Air Pollutants;Release concentrations: hydrogen chloride 10.2 mg/m
.Approved annual release limits: hydrogen chloride 3.574 tons.2022 total release amounts: hydrogen chloride 3.503139 tons.
(5) PVC and sodium hydroxide production in Yongxiang
① Major pollutants in the wastewater: COD, NH3-N and pH.
Release method: continuous and stable release.Number of release outlets: 1.Release standards: Table 1 of 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.Release concentrations: COD 13.29 mg/l, NH3-N 2.77 mg/l and PH 6 - 9, all of which complied with thestandards.Approved annual release limits: COD ≤ 39 tons and NH3-N ≤ 9.75 tons.2022 total release amounts: COD 2.13 tons and NH3-N 0.45 tons, each of which was lower than theapproved amount.
② Major pollutants in the waste gas: particles and NMHC.
Release method: continuous and stable release.Number of release outlets: 3.Release standards: Table 4 of Emission Standard of Pollutants for Caustic Alkali and Polyvinyl ChlorideIndustry (GB15581-2016) — Particles 60 mg/m
and NMHC 50 mg/m
from the waste gas from dryoutlets.Release concentrations: Particles 2.01 mg/m
and NMHC 4.88 mg/m
3.
Approved annual release limits: particles ≤60 tons; NMHC ≤50 tons.2022 total release amounts: particles 2.38 tons and NMHC 5.41 tons.
③ Major heavy metal pollutants is mercury (II) chloride which is mainly used as the catalyst for vinylchloride synthesis, and coded as HW29 in National Directory of Hazardous Substances, must be disposedcentrally to qualified suppliers for treatment and recycle.
(6) Sichuan Yongxiang New Materials Co., Ltd.:
② Major pollutants in waste gas: particles, sulfur dioxide, and nitrogen oxides.Release method: continuous and stable release.Number of release outlets: 2Release standards: Emission Standard of Air Pollutants for Cement Industry (GB4915-2013) — particles≤20 mg/m?; sulfur dioxide ≤100 mg/m?; and nitrogen oxides ≤320 mg/m?.Average release concentrations: particles in the kiln head 5.57 mg/m?; smoke in the kiln tail 3.21 mg/m?;
sulfur dioxide 2.77 mg/m?; nitrogen oxides 54.29 mg/m?, all of which met the standards.Approved annual release limits: particles 51.60 tons; sulfur dioxide 150 tons; nitrogen oxides 480 tons.2022 total release amounts: particles from kiln head 8.91 tons; particles from kiln tail 6.82 tons; sulfurdioxide 5.84 tons; nitrogen oxides 124.64 tons. All of them were lower than the respective approvedamount.
② Major pollutants in the wastewater: COD and NH3-N.
Release method: continuous and stable release.Number of release outlets: 1Release standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996) —COD ≤ 100 mg/l; NH3-N ≤ 15 mg/l;Release concentrations: COD 25.58 mg/l and NH3-N 0.41 mg/l. Each of them met the standards.Approved annual release limits: No limits for COD and NH3-N.2022 total release amounts: COD 0.75 tons and NH3-N 0.01 tons.
(7) Tongwei Solar (Jintang) Co., Ltd.:
① Major pollutants in the waste gas: hydrogen chlorine, chlorine, ammonia, particles, nitrogen oxides andVOCs; typical pollutant: fluoride.Release method: continuous and stable release.Number of release outlets: 14.Release standards: Limits in Table 5 of Emission Standard of Pollutants for Battery Industry(GB30484-2013) — hydrogen chloride ≤ 5 mg/m?; fluoride ≤ 3 mg/m?; chlorine ≤5 mg/m?; nitrogen oxides≤ 30 mg/m?; particles ≤30 mg/m?. Ammonia ≤ 20t/h (30m), 15.2kg/h (26m) subject to limits in Table 2 ofEmission Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60mg/m? subject to industrial standardsfor electronic industry set in Table 3 of Sichuan Control Standards for Volatile Organic Compounds(DB51/2377-2017).Release concentrations: hydrogen chloride 1.43 mg/m?; fluoride 0.24 mg/m?; chloride 0.23 mg/m?;ammonia 1.71 kg/h; particles 10.33 mg/m?; nitrogen oxides 8.63 kg/m?; VOCs 1.21 mg/m?. Each of themmet the standards.Approved annual release limits: nitrogen oxides ≤25.61 tons, and VOCs ≤27.71 tons.2022 total release amounts: nitrogen oxides 6.48 tons and VOCs 2.02 tons. All of them were lower than therespective approved amount.
② Major pollutants in the wastewater: pH, COD, NH3-N and fluoride.
Release method: continuous and stable release.Number of release outlets: 1.Release 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.Release concentrations: pH 7.01- 7.73; COD 32 mg/L; NH3-N 13.17 mg/L; fluoride 5.15 mg/L. Each ofthem met the standards.Approved annual release limits: COD ≤ 1181.2 tons and NH3-N ≤ 236.3 tons.2022 total release amounts: COD 69.15 tons and NH3-N 29.57 tons; each of which was lower than theapproved amount.
(8) Tongwei Solar (Chengdu) Co., Ltd.:
① Major pollutants in the waste gas: fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia,particles and volatile organic compounds (VOCs).Typical pollutant(s): fluoride.Release method: continuous and stable release.Number of release outlets: 27.Release standards: ammonia ≤ 14 kg/h subject to limit in Table 2 of Emission Standards for Odor Pollutants(GB14554-1993); VOCs ≤ 60 mg/m? subject to industrial standards for electronic industry set in Table 3 ofSichuan Control Standards for Volatile Organic Compounds (DB51/2377-2017); other pollutants subject tolimits 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 ≤30 mg/m?; hydrogen chloride ≤5 mg/m? and nitrogenoxides ≤30 mg/m?.Release concentrations: fluoride 0.13 mg/m?; chlorine 0.85 mg/m?; particles 2.43 mg/m?; nitrogen oxides
5.24 mg/m?; VOCs 2.43 mg/m?; hydrogen chloride 1.41 mg/m?; ammonia 0.053 kg/h, all of which met thestandards.2022 total release amounts: nitrogen oxides 27.97 tons and VOCs 12.58 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH; typical pollutant(s): fluoride.Release method: continuous and stable release.
Number of release outlets: 2.Release standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard of Pollutantsfor Battery Industry (GB30484-2013); CODcr ≤ 150 mg/L; NH3-N ≤ 30 mg/L; pH 6 - 9; fluoride ≤ 8mg/L.Release concentrations: CODcr 17.50 ml/L; NH3-N 3.73 mg/l; pH 7.58 and fluoride 5.39 mg/l. Each ofthem met the standards.Approved annual release limits: COD ≤ 1109.8 tons and NH3-N ≤ 221.9 tons.2022 total release limits: CODcr 90.56 tons and NH3-N 10.08 tons, each of which was lower than theapproved amount.
(9) Tonghe New Energy (Jintang) Co., Ltd.:
① Major pollutants in the waste gas: fluoride, chlorine, hydrogen chloride, particles, nitrogen oxides andVOCs.Release method: continuous and stable release.Number of release outlets: 18.Release standards: Emission Standard of Pollutants for Battery Industry (GB30484-2013) — fluoride ≤ 3mg/m?; chlorine ≤ 5 mg/m?; particles ≤ 30 mg/m?; nitrogen oxides ≤ 30 mg/m?; Sichuan Control Standardsfor Volatile Organic Compounds (DB51/2377-2017) — VOCs ≤ 60 mg/m?; standard limit in Table 2 ofOdor Pollutants (GB14554-1993) — ammonia ≤ 14 kg/h.Release concentrations: fluoride ≤ 0.98 mg/m?; hydrogen chloride ≤ 0.33 mg/m?; particles ≤ 15.65 mg/m?;NOx ≤ 12 mg/m?; VOCs≤ 0.47 mg/m?; ammonia ≤ 0.2 kg/h, all of which met the standards. Each of themmet the standards.2022 total release amounts: fluoride 1.19 tons; particles 3.1 tons; nitrogen oxides 0.72 tons, VOCs 2.85 tonsand ammonia 2.06 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH, and SS; typical pollutant(s):
fluoride.Release method: continuous and stable release.Number of release outlets: 1.Release standards: Emission Standard of Pollutants for Battery Industry (GB30484) — COD ≤ 150 mg/L;NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; SS ≤140 mg/l; total nitrogen ≤40 mg/l; fluoride ≤ 8 mg/L.Release concentrations: COD 102 mg/l; NH3-N 9.115 mg/l; PH 7.35; SS 4.75 mg/l; total nitrogen 11.8mg/l, and fluoride 3.9325 mg/l. Each of them met the standards.2022 total release amounts: COD 536.2 tons; NH3-N 54.4 tons; SS 27.59 tons; total phosphorus 57.56 tonsand fluoride 15.33 tons.Environmental protection facilities and their operational status: Cell and wafer slicing wastewater weretreated separately due to the different nature of pollutants in the wastewater. The cell wastewater wassubject to three stages of physical and chemical treatment at the sewage treatment plant before meeting thedischarge standards, while the wafer slicing wastewater was subject to micro-sand filtration, dissolved airflotation, hydrolysis and acidification, anaerobic treatment and six-stage aerobic treatment before meetingthe discharge standards.
(10) Tongwei Solar (Meishan) Co., Ltd.:
① Major pollutants in the waste gas: general pollutants: chlorine, particles, hydrogen chloride and VOCs;typical pollutant: fluoride.Release method: continuous and stable release.Number of release outlets: 15Release standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard ofPollutants 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 ≤ ammonia ≤ 20 kg/h (manufacturing process waste gas); ammonia ≤14 kg/h(waste gas fromthe wastewater station); hydrogen sulfide ≤ 0.9 kg/h; and odor gas concentration 6000; Sichuan ControlStandards for Volatile Organic Compounds (DB51/2377-2017) — VOCs ≤ 60 mg/m?; grade two limits inTable 2 of Integrated Standards for Emission of Air Pollutants (GB16297-1996) — sulfuric acid mist ≤ 60mg/m?.Release concentrations: fluoride 1.07 mg/m?; chlorine 0.32 mg/m?; particles 6.08 mg/m?; hydrogen chloride
0.37 mg/m?; VOCs 0.55 mg/m?; nitrogen oxides 4.38 mg/m?; sulfuric acid mist 0.44 mg/m?; ammonia 0.09kg/h (rate), odor 296.25, all of which met the standards.2022 total release amounts: nitrogen oxides 8.17 ton and VOCs 2.465 tons.
② Major pollutants in the wastewater: general pollutants: COD, NH3-N, pH and total nitrogen; typicalpollutant(s): fluoride.
Release method: continuous and stable release.Number of release outlets: 3 general wastewater discharge outlets (production wastewater outlet, generalwastewater outlet, and domestic wastewater outlet), and all these outlets are in the west part of the factory.Discharge 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;Release concentrations: COD 23.66 mg/l; NH3-N 19 mg/l; pH 8.06; total nitrogen 22.23 mg/l; and fluoride
5.39 mg/l, all of which met the standards.
2022 total release amounts: COD 113.46 tons and NH3-N 67.91 tons.
(11) Tongwei Solar (Anhui) Co., Ltd.:
① Major pollutants in the waste gas: chlorine, particles, ammonia, nitrogen oxides, hydrogen chloride,VOCs and fluoride.Release method: continuous and stable release.Number of release outlets: 12.Release standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard ofPollutants 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?; ammonia ≤30 mg/m?; VOCs ≤ 50mg/m? subject to Emission Standards for Volatile Organic Compounds from Industrial Enterprises(DB16297-2014).Release concentrations: nitrogen oxides < 3 mg/m?; fluoride 0.39 mg/m?; chlorine not detected; particles
8.6 mg/m?; hydrogen chloride 0.52 mg/m?; VOCs 2.02 mg/m?; ammonia 0.58 mg/m?, all of which met thestandards.2022 total release amounts: nitrogen oxides 0.308 tons and VOCs 3.02 tons.
② Major pollutants in the wastewater: COD, NH3-N, pH, total nitrogen and fluoride.Release method: continuous and stable release.Number of release outlets: 1Release 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; total nitrogen ≤ 40 mg/l; fluoride ≤ 8 mg/L.Release concentrations: COD 32.33 mg/l; NH3-N 1.33 mg/l; PH 7.23; total nitrogen 15.47 mg/l; andfluoride 6.76 mg/l. Each of them met the standards.2022 total release amounts: COD 120.43 tons and NH3-N 9.73 tons.
(12) Chengdu Chunyuan Food Company Limited:
① Major pollutants in the wastewater: COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils, totalphosphorus and total nitrogen.Release method: intermittent release.Number of release outlets: 1.Release standards: grade three standards for livestock processing in Table 3 of Discharge Standard of WaterPollutants for Meat Packing Industry (GD13457-1992) — COD 500 mg/l; no limit for 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 for total phosphorus and nolimit for total nitrogen.Release concentrations: COD 29 mg/L; NH3-N 12.81 mg/l/L; PH 7.5; SS 11.33 mg/L; BOD 6.07 mg/L;animal fat and vegetable oils 0.25 mg/L; total phosphorus 4.00 mg/L and total nitrogen 17.55 mg/L, all ofwhich met the standards.Approved annual release limits: COD 357.5 tons, no limits on other pollutants.2022 total release amounts: COD 3.68 tons, lower than the approved.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides, particles and carbon monoxide.Release method: intermittent release.Number of release outlets: 1.Release standards: Emission Standard of Air Pollutants for Boilers in Chengdu; random waste gas emissionat facility boundaries is subject to new construction and expansion standards of grade two in Table 1 ofEmission Standards for Odor Pollutants (GB14554-93): odor concentration ≤ 20 mg/m?; hydrogen sulfide ≤
0.06 mg/m? and ammonia ≤ 1.5 mg/m?.
Release concentrations: Odor <10 mg/m?; hydrogen sulfide 0.005 mg/m?; and ammonia 0.065 mg/m?.Approved annual release amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(13) Chengdu Xintaifeng Agriculture Development Co., Ltd.:
① Major pollutants in the wastewater: COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils, totalphosphorus and total nitrogen.Release method: intermittent release.Number of release outlets: 1.Release 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, SS300 mg/L, BOD 250 mg/L, animal fat and vegetable oils 50 mg/L, no limit on total phosphorus and nolimit on total nitrogen.Release concentrations: COD 39 mg/L; NH3-N 1.09 mg/l/L; PH 7.21; 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 whichmet the standards.Approved annual release limits: COD 306 tons, no limits on other pollutants.2022 total release amounts: COD 3.016 tons, lower than the approved.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides and particles.Release method: continuous and stable release.Number of release outlets: 1.Release standards: Emission Standard of Air Pollutants for Boilers in Chengdu — odor ≤ 20 mg/m?;hydrogen sulfide ≤ 0.06 mg/m?; ammonia ≤ 1.5 mg/m?.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. Random wastegas emission at facility boundaries is subject to new construction and expansion standards of grade two inTable 1 of Emission Standards for Odor Pollutants (GB14554-1993).Release concentrations: odor 10 mg/m?; hydrogen sulfide 0.01 mg/m?; and ammonia 0.02 mg/m?.Approved annual release amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(14) Tongwei (Hainan) Aquatic Products Co., Ltd.:
Major pollutants in the wastewater are COD, NH3-N, PH, total phosphorus and total nitrogen.Release method: intermittent release.Number of release outlets: 1.Release 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.Release concentrations: COD 40.3 mg/l; NH3-N 2.98 mg/l; total nitrogen 13.6 mg/l; and total phosphorus
0.44 mg/l; all of which met the standards.
Approved annual release limits: No limits for COD, NH3-N, SS, total nitrogen, and total phosphorus.2022 total release amounts: COD 18.61 tons, NH3-N 1.37 tons, total phosphorus 0.2 tons and total nitrogen
6.28 tons.
2. Construction and operation of pollution prevention and treatment facilities"√ Applicable" "□ Not applicable"Each of the Company’s key polluting units has constructed environmental protection facilities inaccordance with environmental assessment and regulatory requirements. During the reporting period, allfacilities operated normally, and environment staff performed periodical inspections and maintenance of thefacilities to ensure that pollutants were released in compliance with standards. Details are 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-stage physiochemical+ biochemical pre-treatment + two stage A/O wastewater treatment system, all of which operated 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, Animal Husbandry and Food Business Group:
(1) Wastewater treatment measures: Septic tanks for domestic sewage, 2,500-ton sewage stations,phosphorus removal and dosing facilities, sludge pressure filter systems, and online monitoring facilitiesfor sewage.
(2) Solid-waste facilities: temporary sludge storage room and temporary storage room of hazardous wastes,all of which were managed subject to environmental protection requirements. Solid waste was transportedand disposed by qualified third parties.
3. Environmental impact assessments and other administrative permits on construction projects"√ Applicable" "□ Not applicable"Environmental impact assessments and other administrative permits on construction projectsundertaken by the Company during the reporting period:
Tongwei Solar:
(1) Jintang Solar: The Environmental Impact Environmental Assessment Report on the project on theapplication of intelligent connected factory powered by efficient silicon-based solar cells with an annualcapacity of 7.5 GW was approved on June 15, 2020 by Chengdu Bureau of Ecology and Environment(CHPS [2020] No.42), and the updated report was approved on June 28, 2021 by Chengdu Bureau ofEcology and Environment (CHPS [2021] No.39); the environmental protection acceptance on completionwas issued on December 16, 2021 with the acceptance report made public on January 10, 2022. TheEnvironmental Impact Environmental Assessment Report on demonstration project for the application ofcore technologies in domestic equipment for high-efficiency solar cells was approved on July 18, 2022 byChengdu Bureau of Ecology and Ministry (CHPS (committed) [2022] No. 24). The environmentalprotection facilities for above projects have been designed, constructed, and developed in accordance withenvironmental laws, regulations, and environmental impact assessment requirements. Currently, theself-acceptance is underway. The pollutant release permit no: 91510121MA69DM7440001U;
(2) Tonghe Solar: The environmental impact assessments on Tonghe wafer slicing and solar cells projectshave been approved by Chengdu Bureau of Ecology and Environment, and the environmental protectionacceptance on completion was completed. The approval for solar cells project is CHPS (committed) [2021]No.19; for wafer slicing project is CHPS (committed) [2021] No. 73. Self-acceptance was organized forand successfully completed for the two projects on May 26, 2022. The pollutant release permit (No.91510121MA662CJD4R001U) was obtained on December 13, 2021;
(3) Meishan Solar Cell: The Meishan phase III project on the application of homemade intelligentequipment (system) powered by efficient silicon-based solar cells with an annual capacity of 7.5 GW wasregistered with Meishan Development and Reform Commission on April 20, 2022 (CTZB[2204-511400-04-01-940169]) with No. FGQB-0061. The environmental impact assessment on the projectwas approved by Meishan Bureau of Ecology and Environment on December 23, 2022 (MSHJH [2022] No.
91).
Yongxiang:
(1) Sichuan Yongxiang New Energy Co., Ltd.: Environmental impact assessment on the phase I capacitybalance project was approved by Leshan Bureau of Ecology and Environment on May 30, 2022 (LSHP[2022] No.18);
(2) Sichuan Yongxiang Energy Technology Co., Ltd.: Environmental impact assessment on the phase Ihigh-purity polysilicon project was approved by Leshan Bureau of Ecology and Environment on September27, 2022 (LSHP [2022] No.34);
(3) Yunnan Tongwei high-purity polysilicon Company Limited: The pollutant release permit (No.91530524MA6PEG4C47001V) for the phase I 50,000-ton high-purity polysilicon project was granted byBaoshan Bureau of Ecology and Environment on March 18, 2022;
(4) The PVC and sodium hydroxide production in Yongxiang: the valid period of pollutant release permit(No. 915111127446516660002L) was extended.
4. Environmental-related emergency response plans
"√ 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 emergency
work 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, theCompany and its subsidiaries have formulated emergency response plans for emergency events and havethe plans registered in local bureaus of ecology and environment. Registration numbers:
(1) Environmental Emergency Response Plan of Sichuan Yongxiang New Energy Co. Ltd. (511112 - 2022 -018 - H);
(2) Environmental Emergency Response Plan of Yunnan Tongwei High-purity Crystalline Silicon Company(530502 - 2022 - 01 - L);
(3) Environmental Emergency Response Plan of Sichuan Yongxiang New Materials Co., Ltd. (511112 -2022 - 031);
(4) Environmental Emergency Response Plan of Tongwei Solar (Jintang) Co., Ltd. (510121 - 2023 - 011 -H);
(5) Environmental Emergency Response Plan of Tongwei Solar (Chengdu) Co., Ltd. (510122 - 2022 - 1646- M);
(6) Environmental Emergency Response Plan of Tonghe New Energy (Jintang) Co., Ltd. (510121 - 2022 -082 - M);
5. Self-monitoring plans
"√ Applicable" "□ Not applicable"Major subsidiaries have established safety and environment departments or management teams,equipped with sufficient personnel and advanced monitoring equipment. Various methods such as real-timemonitoring by environmental monitoring equipment, regular manual monitoring, and third-partymonitoring ensure the compliance with environmental management requirements.
(1) Yongxiang:
It has established a safety and environment department. Online waste gas monitoring systems are set atemission outlets of boilers and cement kilns and at main wastewater discharge outlets at each site. Onlinewastewater testing devices are installed at wastewater discharge outlets to detect pollutants like COD,NH3-N and PH; online waste gas testing devices are set at emission outlets of gas-fired boilers and cementkilns to detect pollutants such as SO
, NOX and particles. These online monitoring instruments areconnected to local environmental authorities so that all data are sent to the pollution source monitoringsystems of environmental protection authorities in a real-time manner.
(2) Tongwei Solar:
It has established a safety and environment department supported by sufficient personnel and advancedmonitoring and detection instruments.Online testing devices are installed at general wastewater discharge outlets to detect pollutants like COD,NH3-N, PH and fluoride in a real-time manner, with detection data sent to the environmental protectioninformation platform on a regular basis. The wastewater treatment station is equipped with a wastewatertesting laboratory, where laboratory technicians conduct regular tests on various stages of wastewatertreatment to ensure that the discharged wastewater meets the required standards. In addition, the companyhas developed an annual environmental monitoring plan. In accordance with the requirements of theenvironmental impact assessment report and pollution discharge permit, third-party testing agencies arecommissioned to test the company’s exhaust gas, wastewater, noise, plant boundary exhaust gas,groundwater and other environmental aspects.
(3) Agriculture, Animal Husbandry and Food Business Group:
The Company has developed a self-monitoring plan for the environment. Qualified third parties have beencommissioned to conduct quarterly tests on various indicators such as COD, pH, and suspended solids inthe wastewater, and issue testing reports accordingly, and conduct semi-annual tests on kitchen exhaust,plant boundary exhaust gas, and noise levels, and issues testing reports accordingly. All online monitoringinstruments are connected to the environmental protection authorities, and all monitoring data istransmitted in real-time to pollution source monitoring system of the authorities. Company has alsoimplemented manual monitoring. In accordance with regulatory standards, it commissions qualifiedthird-party testing agencies to conduct annual monitoring on exhaust gas and plant boundary noise, andprovides testing 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, and Xiamen Tongwei were fined for the facility-boundary odor and water pollutantsexceeding the limits. These are no significant penalties for environmental pollution. All corrective actionswere completed in the reporting period and no materially adverse impact was caused to the Company.
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, highhumidity and high dust, which is treated by cyclone dust collector and dust collection bags, then treated bysprinkler-based oxidation equipment before emitted.
(2) Wastewater control
No wastewater or little wastewater is generated in feed production. The wastewater is mainly from thesprinkler 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 Type Astandards 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 hazardous solidwaste. General type is periodically removed and transported by local environmental and health authoritiesto 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. The Company useslow-noise equipment and has them arranged properly so that noise attenuates to the largest extent overdistance. High-noise equipment is enclosed with noise absorbing walls.The Company and its subsidiaries have been strengthening the procedure-based environmental protectionwith significant effect. No significant environmental event or pollution occurred in the reporting period.
3. Reason for non-disclosure of other environmental information
"□ Applicable" "√ Not applicable"
(III). Information relating to protecting ecology, preventing pollution and fulfilling environmental
obligation"√ 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 Waste Storage,and developed and implemented many internal environmental management policies.In terms of air pollution prevention and control, the Company strictly complies with nationalenvironmental protection standards such as Emission Standards for Odor Pollutants (GB14554-1993),actively promotes special treatment of odor emissions, and conducts in-depth research on feed gastreatment technologies. It adopts various measures, including internal recycling of waste gas, multiphase
oxidation technology, and deep dust and fog removal technology. As a result, the organized emission ofodor after waste gas treatment is below 200, which is much lower than specified limit (GB14554-1993) of2000. The treatment effect has reached the leading level in the industry.
Regarding wastewater treatment, the Company standardizes the discharge procedures for domestic andproduction wastewater, keeps optimizing and upgrading the treatment techniques and devices forwastewater to effectively enhance its wastewater treatment capabilities and treatment quality. Regarding thecomprehensive use of waste, the Company actively drives the reuse of waste, standardizes the disposal ofsolid waste and ensure the safe transfer and effective monitoring of solid waste for prevention of solidwaste pollution.The Company has set up an Energy Management Committee, and has created a three-level governancestructure where the board of directors makes decisions, the Energy Management Committee coordinates themanagement, and Energy Management Working Groups execute tasks. This was to enhance the awarenessof ESG and sustainable development among all departments, improve the Company's ESG managementand steadily elevate the ESG governance system. The Company’s 2022 Environmental, Social andGovernance Report approved at the 10th meeting of the 8th board of directors and the 8th meeting of the8th supervisory committee was disclosed on the website of Shanghai Stock Exchange and other appointedmedia on April 25, 2023. The report has described the Company's practices and performances in economy,environment, society and company governance over the year of 2022.
(IV). Emission reduction actions during the reporting period and the effect
| Carbon reduction actions taken or not | Yes |
| Carbon emission reduction (tCO2e) | 8,248,455 |
| Types of carbon reduction actions (such as use clean energy for power generation, use decarbonization technologies in production process and develop new products that help reduce carbon footprint) | During the reporting period, the Company achieved its carbon reduction targets through various measures such as purchasing clean energy, actively developing photovoltaic power generation, optimizing waste heat recovery and upgrading equipment and processes. |
Specific description"√ Applicable" "□ Not applicable"
At the end of 2021, the Central Committee of the CPC issued the Working Guidance for CarbonDioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New DevelopmentPhilosophy, which clearly requires the comprehensive green transformation of economic and socialdevelopment, the key to which is low-carbon development of energy. The Company, as a leading player inthe photovoltaic industry in China, is committed to becoming a global clean energy supplier and pursuing a“dual development” path underpinned by green energy and green agriculture. It contributes to theachievement of the country's dual-carbon goals, the development of a green economy, and thetransformation of the world's energy structure.
The Company is dedicated to ecological protection and actively responds to the national call forcarbon reduction. It established an Energy Management Committee at the end of 2021, and an EnergyManagement Execution Working Group at the head office and Sustainability Supervision Teams atbranches and subsidiaries to coordinate the efforts into energy consumption management and emissionreduction. The Company will always be committed to the sustainable development of the whole society.
It is improving its overall work plan, direction, and objectives for achieving carbon emissions targets,strengthening carbon emission management, optimizing and upgrading the clean energy supply systemthrough among others carbon offset, energy conservation, and carbon footprint certification, promotinggreen transformation, establishing an image of green development, and achieving sustainable development.The Company has measured and calculated the carbon emissions of its silicon material and solar cell overtheir life cycles in accordance with the Environmental Management — Life Cycle Assessment —Requirements and Guidelines and Greenhouse Gases — Carbon Footprint of Products — Requirements andGuidelines for Quantification. It is an industry leader in terms of carbon footprint. The Yongxiang businessgroup has established a carbon asset management department which is responsible for ensuring theimplementation of Yongxiang carbon neutrality work plan, and the timely achievement of carbon neutralitygoals. The Company has successfully developed key technologies, such as large-scale energy-savingreduction furnaces, energy efficiency cold hydrogenation, and high-efficiency coupled distillation throughindependent research and development, and has created an internationally leading Yongxiang Method forproducing high-purity crystalline silicon. It has also implemented a by-product steam cascade utilizationtechnology which fully uses waste heat steam to replace gas boilers for steam supply, with continuous
effort to upgrade, to solidly promote the quality and efficiency save energy and reduce carbon emissions forthe high-purity crystalline silicon production. In terms of solar cell production, the Company activelydevelops photovoltaic power generation by deploying photovoltaic panels in factories to increase the use ofgreen energy, and upgrading production equipment and processes to achieve energy-saving and emissionreduction in multiple processes.
II. Social responsibility(I). Whether or not separate disclosure of social responsibility report, sustainable development orESG report"√ Applicable" "□ Not applicable"Refer to the 2022 Environmental, Social and Governance Report of Tongwei Co., Ltd. disclosed onhttp://www.sse.com.cn on April 25, 2023 for details.
(II). Social responsibility practices"√ Applicable" "□ Not applicable"
| Outward donations and public interest projects | Amount/description | Note |
| Total investment (10,000 yuan) | 5,788.98 | Donations to earthquake-stricken areas and others |
| In which: cash (10,000 yuan) | 5,639.85 | |
| In-kind donations (10,000 yuan) | 149.13 | |
| Number of benefited persons | / |
Specific description"√ Applicable" "□ Not applicable"As a company with environmental, social, and corporate governance (ESG) into its DNAs, theCompany fully understand the benefits that the concept of sustainable development has brought, and isaware that practicing ESG is the only way to become a world-class safe food supplier and world-class cleanenergy operator. Therefore, it is firmly committed to deeply mainstreaming ESG into operations andmanagement.The Company has developed a sustainable development strategy covers both internal and externalactivities, based on the principles of building together, governing together, and sharing together. Focusingon important ESG issues such as business ethics, environmental protection, human rights and labor, andconflict minerals in the supply chain, the Company commits to self-reflection and self-improvement, whilealso driving suppliers and partners to strive towards a sustainable future.To manage its ESG practices, the Company has established a three-level “decision-making,management, and execution” framework that includes the board of directors, energy managementcommittee, functional departments, and business groups. By fully leveraging the power of each level, it hascreated a combined force for sustainable management, and comprehensively, systematically, and effectivelyimplements the philosophy of sustainable development.
In terms of working mechanisms, ESG work progress is reported to the board of directors and coremanagement, and ESG analysis, discussions, and training sessions are organized in departments andbusiness on a monthly basis. The company also keeps track of its progress and performance in ESG-relatedwork, and uses ESG reports as a tool to promote ESG management. The goal is to establish a long-term,effective ESG management mechanism that covers all employees and processes.In terms of performance management, the Company promotes linking key ESG performanceindicators with the performance of the heads of relevant business groups. Outstanding projects andindividuals are recognized and rewarded, while departments and individuals who fail to meet the evaluationcriteria are ineligible for participating in the selection of great projects and individuals for that year.In terms of employee training, the Company incorporates ESG-related information into trainingprograms for management personnel, key business personnel, and frontline employees to enhance ESGmanagement capabilities across all business groups. In the reporting period, the Company held 10 ESGthematic training sessions which covered over 300 participants.In 2022, with total employee involvement in ESG, the Company achieved a year-on-year decrease of
19.69% in greenhouse gas emissions per million yuan revenue and a year-on-year increase of 113% inclean energy power usage. It also participated in COP27 and contributed to the development of multiple
carbon-related standards, actively practicing actions to address climate change. In terms of socialresponsibility, the Company donated 50 million yuan to the Red Cross Society of Ya'an City and GanziPrefecture through the Sichuan Guangcai Charity Promotion Association to support emergency relief,transitional resettlement, and post-disaster reconstruction in the earthquake-stricken area in Luding,fulfilling its social responsibilities. In terms of corporate governance, board members are selected based onthe principle of diversity, taking into account the Company's actual situation, business model, andoperational needs. As of the end of 2022, the share of female members in the board increased significantly,reaching one third, compared to the previous year.
The Company is deeply aware of the need on our path to development. This is integrating theCompany's development with national expectations and social needs while achieving high-quality businessdevelopment. We uphold the purpose of pursuing excellence and dedicating to society, enhancing itsresilience against crises or uncertainties, and working together with all stakeholders to achieve a balanceddevelopment of the Company, society, and environment, and create a sustainable future for the earth andhuman society.
III. Work relating to poverty relief and rural revitalization"√ Applicable" "□ Not applicable"
| Poverty-alleviation and rural revitalization projects | Amount/description | Note |
| Total investment (10,000 yuan) | 1,420.28 | |
| In which: cash (10,000 yuan) | 1,418.78 | |
| In-kind donations (10,000 yuan) | 1.50 | |
| Number of benefited persons | / | |
| Poverty relief forms (such as through industry development, employment and education） |
Specific description"√ Applicable" "□ Not applicable"
Photovoltaic-based targeted poverty alleviation is a targeted and precise approach that combined greentype, 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 for poorhouseholds. This indeed provides a long-term solution to the poverty problem and a new path for povertyalleviation 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 area of rural revitalization, Tongwei has pioneered the Aquaculture-Photovoltaic Integrationmodel by integrating photovoltaic power generation with modern organic fisheries. This innovative modelproduces green energy on the water surface while cultivating green food under the water. Aligned with thenational strategy of rural revitalization, the Company has moderately introduced elements of rural tourism,striving to create a "new fishery, new energy, and new rural" project that integrates the primary, secondary,and tertiary industries perfectly.
The Company will continue to fulfill its corporate social responsibility, and combine photovoltaicindustry with Aquaculture-Photovoltaic Integration to continue the photovoltaic-based poverty alleviation.It will build a sustainable and positive industry ecosystem with the unique characteristics of Tongwei,promote local industrial development, improve the environment, and achieve efficient synergy betweenindustrial development and ecological improvement. The development of the photovoltaic industry can alsohelp address rural poverty in China, promote the construction of new rural areas and rural revitalization,and contribute to achieving the goal of carbon neutrality.
Section VI. Important MattersI. Fulfillment of commitments(I). Commitments made by the Company, its actual controller, shareholders, related parties, and acquirers 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 relating to restructuring of material assets | 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 related-party transactions | Liu Hanyuan and Tongwei Group | Liu Hanyuan, Tongwei Group and entities under their control do not any 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 | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| 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. | |||||||
| 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 | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| requirements in applicable laws and regulations, administrative rules and the articles of associations (including but not limited to provisions on related-party transactions). | ||||||||
| Commitments relating 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 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. | This commitment remains valid and is being fulfilled. | No | Yes | Not applicable | Not applicable |
| 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 | 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 - Advantage Select 2108 Insurance-based Asset Management Product” | |||||||
| Restricted shares | Tongwei Co., Ltd. Employee share plans: China Life Asset Management Company Limited - Dingkun Advantage Select 2246 Insurance Asset Management Product, China Life Asset Management Company Limited - Dingkun Advantage Select 2247 Insurance Asset Management Product, Dingkun Advantage Select 2257 Insurance Asset Management Product, Dingkun Advantage Select 2258 Insurance Asset Management Product, Dingkun Advantage Select 2260 Insurance Asset Management Product, and Dingkun Advantage Select 2271 Insurance Asset Management Product | Shares may not be transferred within 12 months since the completion of the purchase. | July 06, 2022 to July 05, 2023 | Yes | Yes | Not applicable | Not applicable |
(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 theassets and 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"
1. Changes in accounting estimates: On April 22, 2022, the 28th meeting of the 7th board ofdirectors and the 27th meeting of the 7th supervisory board were held, during which the Proposal onChanges in Accounting Policies and Accounting Estimates was approved. Due to the acceleratedtechnological upgrading in the photovoltaic industry, the current depreciation period applied to machineryand equipment used by the Company no longer properly reflects the actual usage status of fixed assets. Inorder to more fairly reflect the financial status and operating results, and improve the quality of accountinginformation, out of prudence, the Company has adjusted the depreciation period applied to machinery andequipment in the solar cell and related processes from 10 years to 6 years, effective from January 1, 2022.Changes in accounting estimates are accounted for using the prospective approach. This change willnot have any impact on the financial position and operating results of the Company for 2021 and prioryears, and therefore, there is no need for retrospective adjustments. However, the aforementionedaccounting estimate changes will increase the depreciation of fixed assets provided by the company for theyear 2022.On September 22, 2022, the 4th meeting of the 8th board of directors and the 3th meeting of the 8thsupervisory committee were held, during which the Proposal on Changes in Accounting Estimates wasapproved. Against the backdrop of global carbon neutrality, leveraging on the leading advantages inhigh-purity polysilicon and solar cell areas, as well as the accumulated technology and market foundationin solar modules over the years, the Company is aligned with national dual-carbon targets and industrydevelopment trends, planning to make appropriate expansions in the module area, so as to further enhanceits overall competitiveness. Given that the Company has planned to expand its module business, in order toprovide assured after-sales service for module customers, the Company has intended to provide modulequality guarantee deposit at 1% of module sales revenue in accordance with the relevant provisions ofAccounting Standard for Business Enterprises No. 13 - Contingencies, and with reference to practices ofmajor peer companies.The accounting estimate change involving the provision of quality warranty deposits is effective fromthe date of approval by the board of directors, and there is no need to retrospectively adjust previouslydisclosed financial statements. This change will not affect the financial condition and operating results ofthe Company for previous years.
2. Changes in accounting policies: On December 13, 2022, the Ministry of Finance and the Ministryof Emergency Management jointly issued the Management Measures for Workplace Safety Costs, which
expanded the scope of application and revised some of the standards for providing safety costs forcompanies.This accounting policy change is concerned with the provision of workplace safety costs and selectiveapplication of hedging accounting. The Company implemented the latest requirement on provision and useof workplace safety costs from December 2022. The accounting policy change has no material effect on theprofit, total assets and net assets of the Company, and for which the prospective application is used. Thereis no need to retrospectively adjust previously disclosed financial statements. This change will not affectthe financial condition and operating results of the Company for previous years.
(II). Analysis and note by the Company on reasons and effect of corrections of material accounting
errors"□ 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 | 491 |
| Audit period of domestic accounting firm | 22 |
| CPA names of domestic accounting firm | Li Wulin, Tang Fangmo, and Xia Hongbo |
| Consecutive years of service provided by CPAs of domestic accounting firm | 2 years by Li Wulin, 2 years by Tang Fangmo, and 2 years by Xia Hongbo |
| Name | Remuneration | |
| Internal control auditing firm | Sichuan Huaxin (Group) CPA (Special General Partnership) | 1.52 million yuan |
| Sponsor | China Securities Co., Ltd | 8.4 million yuan |
Note on engagement and dismissal of accounting firm"√ Applicable" "□ Not applicable"As approved by 2021 general meeting on May 16, 2022, the Company renewed the appointment of SichuanHuaxin to provide 2022 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 actual controller"□ 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 the Companyhas 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) | Guarantee the guarantee | Guarantee Maturity date | Guarantee type | Collateral (if any) | Guarantee fulfilled completely or not | Guarantee overdue or not | Overdue amount | Counter-guarantee | Related-party guarantee or not | Relation with the related party | |
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiary | Farmers (rooftop powerplants) | 1,792.11 | January 12, 2018 | May 31, 2028 | Joint and several guarantee | No | No | 0.00 | No | |||||
| Tongwei Co., Ltd. | Head office | Farmers and dealers | 5,400.00 | July 13, 2022 | April 15, 2023 | Joint and several guarantee | No | No | 0.00 | No | |||||
| Tongwei Agricultural Finance Guarantee Co., Ltd. | Wholly-owned subsidiary | Farmers and dealers | 12,985.20 | March 04, 2022 | December 16, 2023 | Joint and several guarantee | No | Yes | 1,855.20 | No | |||||
| Total guaranteed amount in the reporting period (excluding guarantees for subsidiaries) | 55,670.46 | ||||||||||||||
| Total balance of guaranteed amount at the end of the reporting period (A) (excluding guarantees for subsidiaries) | 20,177.31 | ||||||||||||||
| Guarantees by the Company and its subsidiaries for other subsidiaries | |||||||||||||||
| Total guaranteed amount for subsidiaries in the reporting period | 634,722.54 | ||||||||||||||
| Total guaranteed amount for subsidiaries at the end of the reporting period (B) | 1,138,383.79 | ||||||||||||||
| Total guaranteed amount by the Company (including guarantees for subsidiaries) | |||||||||||||||
| Total guaranteed amount (A+B) | 1,158,561.10 | ||||||||||||||
| Ratio of total guaranteed amount to net assets of the Company (%) | 15.82% | ||||||||||||||
| Including: | |||||||||||||||
| Amount for shareholders, actual controller and its related parties (C) | 0.00 | ||||||||||||||
| Indirect or direct guaranteed amount for parties whose debt-ratio is over 70% (D) | 418,776.78 | ||||||||||||||
| Amount out of the total guaranteed amount that exceeds 50% of the net assets (E) | 0.00 | ||||||||||||||
| Total of the above three items (C+D+E) | 418,776.78 | ||||||||||||||
| 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 not overdue | Overdue amount |
| Structured deposits | The Company's own funds | 1,861,000.00 | 426,000.00 |
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 | Purpose of funds | How to determine method | 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) |
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 100,000.00 | March 10, 2022 | March 30, 2022 | The Company's own funds | Structured deposits | Floating income | 3.55% | 197.22 | 100,000.00 | Yes | |||
| Chongqing Branch, Ping An Bank Co., Ltd. | Ping An Bank Business Structured Deposit (100% principal protection and link to exchange rate) | 20,000.00 | March 11, 2022 | June 13, 2022 | The Company's own funds | Structured deposits | Floating income | 3.25% | 167.40 | 20,000.00 | Yes | |||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 68 Days (bullish and linked to gold) | 20,000.00 | March 16, 2022 | May 23, 2022 | The Company's own funds | Structured deposits | Floating income | 3.4% | 126.68 | 20,000.00 | Yes | |||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 40 Days (bullish and linked to gold) | 100,000.00 | March 16, 2022 | April 25, 2022 | The Company's own funds | Structured deposits | Floating income | 3.4% | 372.60 | 100,000.00 | Yes | |||
| Chengdu Branch, | Liduoduo | 20,000.00 | March 11, | April 11, | The | Structured | Floating | 3.09% | 51.50 | 20,000.00 | Yes |
| Shanghai Pudong Development Bank | Corporate Stable Rate 22JG6293 (bullish on three-level) CNY Business Structured Deposit | 2022 | 2022 | Company's own funds | deposits | income | ||||||||
| Chengdu Donghu Sub-branch, China CITIC Bank Corporation Ltd. | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 08872 Series | 50,000.00 | March 16, 2022 | June 16, 2022 | The Company's own funds | Structured deposits | Floating income | 3.10% | 390.68 | 50,000.00 | Yes | |||
| Chengdu Chunxi Sub-branch, Industrial and Commercial Bank of China | ICBC Exchange Rate-linked Range Accumulative Corporate CNY Structured Deposit - Special Account Series 102 Type C 2022 (112 Days) | 50,000.00 | March 17, 2022 | July 07, 2022 | The Company's own funds | Structured deposits | Floating income | 1.72% | 264.41 | 50,000.00 | Yes | |||
| Chengdu Branch, China Minsheng Banking Corporation Ltd. | Juying Exchange Rate-linked USD/JPY Structured Deposit (SDGA220070Z) | 30,000.00 | March 25, 2022 | June 24, 2022 | The Company's own funds | Structured deposits | Floating income | 3.15% | 235.42 | 30,000.00 | Yes | |||
| Chengdu Branch, Industrial Bank Co., Ltd. | Tianli Short-term Net Wealth Management Product | 110,000.00 | March 30, 2022 | April 01, 2022 | The Company's own funds | Fixed-income assets | Floating income | 3.09% | 18.87 | 110,000.00 | Yes | |||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 100,000.00 | April 01, 2022 | June 10, 2022 | The Company's own funds | Structured deposits | Floating income | 3.61% | 701.94 | 100,000.00 | Yes | |||
| Chengdu Shuangnan Sub-branch, Bank of China Ltd. | Linked Structured Deposit (Institutional Client) | 5,500.00 | April 14, 2022 | July 15, 2022 | The Company's own funds | Structured deposits | Floating income | 1.50% | 20.79 | 5,500.00 | Yes | |||
| Chengdu Shuangnan Sub-branch, Bank of China Ltd. | Linked Structured Deposit (Institutional Client) | 4,500.00 | April 14, 2022 | July 15, 2022 | The Company's own funds | Structured deposits | Floating income | 3.43% | 38.90 | 4,500.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG6479 (bullish on three-level) CNY Business | 20,000.00 | April 18, 2022 | May 18, 2022 | The Company's own funds | Structured deposits | Floating income | 3.25% | 54.17 | 20,000.00 | Yes |
| Structured Deposit | ||||||||||||||
| Chengdu Branch, Industrial Bank Co., Ltd. | Industrial Bank Business Finance CNY Structure Deposit | 30,000.00 | April 20, 2022 | May 20, 2022 | The Company's own funds | Structured deposits | Floating income | 2.98% | 73.48 | 30,000.00 | Yes | |||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 39 Days (bullish and linked to gold) | 70,000.00 | April 28, 2022 | June 06, 2022 | The Company's own funds | Structured deposits | Floating income | 3.30% | 246.82 | 70,000.00 | Yes | |||
| Chengdu Branch, China Minsheng Banking Corporation Ltd. | Juying Exchange Rate-linked USD/JPY Structured Deposit | 20,000.00 | April 28, 2022 | May 30, 2022 | The Company's own funds | Structured deposits | Floating income | 3.20% | 56.11 | 20,000.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG6888 (bullish on three-level) CNY Business Structured Deposit | 50,000.00 | May 05, 2022 | June 06, 2022 | The Company's own funds | Structured deposits | Floating income | 3.29% | 146.39 | 50,000.00 | Yes | |||
| Chengdu Branch, Industrial Bank Co., Ltd. | Industrial Bank Golden Snow Ball Stable Rate Series 1 Type B Net Wealth Management Product | 5,000.00 | May 17, 2022 | November 17, 2022 | The Company's own funds | Fixed-income assets | Floating income | 2.70% | 69.04 | 5,000.00 | Yes | |||
| Chengdu Chunxi Sub-branch, Industrial and Commercial Bank of China | ICBC Exchange Rate-linked Range Accumulative Corporate CNY Structured Deposit - Special Account Series 205 Type C 2022 | 25,000.00 | June 06, 2022 | December 29, 2022 | The Company's own funds | Structured deposits | Floating income | 2.70% | 381.30 | 25,000.00 | Yes | |||
| Chengdu Majiahuayuan Office, China Securities Co., Ltd. | Ping An Trust Fixed Income Connect No. 1M-8 Collective Investment Trust | 5,000.00 | June 08, 2022 | July 08, 2022 | The Company's own funds | Fixed-income assets | Floating income | 4.25% | 17.70 | 5,000.00 | Yes | |||
| Chengdu Chunxi Sub-branch, Industrial and Commercial Bank of China | ICBC Series 3 2022 Certificates of Deposit for Corporate Client | 30,000.00 | June 06, 2022 | June 05, 2023 | The Company's own funds | Transferable certificates of deposit | Floating income | 3.25% | Yes | |||||
| Chengdu Chunxi Sub-branch, Industrial | ICBC Exchange Rate-linked | 40,000.00 | June 13, 2022 | December 29, 2022 | The Company's | Structured deposits | Floating income | 3.27% | 714.15 | 40,000.00 | Yes |
| and Commercial Bank of China | Range Accumulative Corporate CNY Structured Deposit - Special Account Series 214 Type L 2022 | own funds | ||||||||||||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 100,000.00 | June 10, 2022 | September 10, 2022 | The Company's own funds | Structured deposits | Floating income | 3.36% | 910.43 | 100,000.00 | Yes | |||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 180 Days (bullish and linked to gold) | 30,000.00 | June 15, 2022 | December 12, 2022 | The Company's own funds | Structured deposits | Floating income | 3.25% | 480.82 | 30,000.00 | Yes | |||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 216 Days (bullish and linked to gold) | 40,000.00 | June 15, 2022 | January 17, 2023 | The Company's own funds | Structured deposits | Floating income | 1.85%/3.3% | Yes | |||||
| Chengdu Majiahuayuan Office, China Securities Co., Ltd. | Ping An Trust Fixed Income Connect No. 6M-31 Collective Investment Trust | 10,000.00 | June 17, 2022 | December 20, 2022 | The Company's own funds | Fixed-income assets | Floating income | 0.19% | 9.58 | 10,000.00 | Yes | |||
| Chengdu Donghu Sub-branch, China CITIC Bank Corporation Ltd. | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 10199 Series | 50,000.00 | June 17, 2022 | July 18, 2022 | The Company's own funds | Structured deposits | Floating income | 3.10% | 131.64 | 50,000.00 | Yes | |||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 30,000.00 | June 20, 2022 | September 20, 2022 | The Company's own funds | Structured deposits | Floating income | 3.60% | 276.00 | 30,000.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG7156 (bearish on three-level) CNY Business Structured Deposit | 60,000.00 | June 24, 2022 | September 23, 2022 | The Company's own funds | Structured deposits | Floating income | 3.25% | 487.50 | 60,000.00 | Yes | |||
| Chengdu Branch, China Minsheng Banking Corporation Ltd. | Juying Exchange Rate-linked Yield-to-Maturity of 10Y Government | 35,000.00 | July 21, 2022 | October 21, 2022 | The Company's own funds | Structured deposits | Floating income | 2.63% | 232.43 | 35,000.00 | Yes |
| Bonds Structured Deposit (SDGA220494Z) | ||||||||||||||
| Chengdu Majiahuayuan Office, China Securities Co., Ltd. | Ping An Trust Fixed Income Connect No. 1M-9 Collective Investment Trust | 3,000.00 | July 23, 2022 | October 24, 2022 | The Company's own funds | Fixed-income assets | Floating income | 4.08% | 30.57 | 3,000.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG7413 (bullish on three-level) CNY Business Structured Deposit | 30,000.00 | July 26, 2022 | October 25, 2022 | The Company's own funds | Structured deposits | Floating income | 3.08% | 233.63 | 30,000.00 | Yes | |||
| Chengdu Donghu Sub-branch, China CITIC Bank Corporation Ltd. | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 10837 Series | 50,000.00 | July 25, 2022 | October 25, 2022 | The Company's own funds | Structured deposits | Floating income | 3.5% | 441.10 | 50,000.00 | Yes | |||
| Chengdu Majiahuayuan Office, China Securities Co., Ltd. | Ping An Trust Fixed Income Connect No. 3M-31 Collective Investment Trust | 2,000.00 | August 15, 2022 | November 15, 2022 | The Company's own funds | Fixed-income assets | Floating income | 3.44% | 18.17 | 2,000.00 | Yes | |||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 100,000.00 | September 19, 2022 | December 19, 2022 | The Company's own funds | Structured deposits | Floating income | 3.55% | 897.36 | 100,000.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG7766 (bullish on three-level) CNY Business Structured Deposit | 60,000.00 | September 26, 2022 | December 26, 2022 | The Company's own funds | Structured deposits | Floating income | 3.30% | 495.00 | 60,000.00 | Yes | |||
| Chengdu Branch, Shanghai Pudong Development Bank | Liduoduo Corporate Stable Rate 22JG7968 (bearish on three-level) CNY Business Structured Deposit | 50,000.00 | October 31, 2022 | January 30, 2023 | The Company's own funds | Structured deposits | Floating income | 1.3%/3.1%/3.3% | Yes | |||||
| Chengdu Donghu Sub-branch, China CITIC Bank Corporation Ltd. | Gongying Zhixin Exchange Rate-linked CNY Structured Deposit 12284 Series | 30,000.00 | November 01, 2022 | January 30, 2023 | The Company's own funds | Structured deposits | Floating income | 1.3%/2.95%/3.35% | Yes |
| Fujian Branch, Changjiang Securities Co., Ltd. | Changjiang Asset Management Yueyueying No.1 Collective Asset Management Plan | 1,000.00 | November 14, 2022 | Redemption depending on the product's operation status | The Company's own funds | Fixed-income assets | Floating income | 0%-3.2% | Yes | |||||
| Chengdu Branch, Industrial Bank Co., Ltd. | Industrial Bank Golden Snow Ball Stable Rate Series 1 Type B Net Wealth Management Product | 15,000.00 | November 16, 2022 | May 16, 2023 | The Company's own funds | Fixed-income assets | Floating income | 0%-3.8% | Yes | |||||
| Chengdu Branch, Industrial Bank Co., Ltd. | Industrial Bank Golden Snow Ball Stable Rate Series 1 Type G Net Wealth Management Product | 10,000.00 | November 16, 2022 | August 16, 2023 | The Company's own funds | Fixed-income assets | Floating income | 0%-3.8% | Yes | |||||
| Chengdu Xin’du Sub-branch, Bank of Communications Co., Ltd. | CBC Yuntong Wealth Fixed-term Structured Deposit 160 Days (bullish and linked to gold) | 50,000.00 | December 01, 2022 | May 10, 2023 | The Company's own funds | Structured deposits | Floating income | 1.75%-3.2% | Yes | |||||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 30,000.00 | December 13, 2022 | March 14, 2023 | The Company's own funds | Structured deposits | Floating income | 1.54%-3.50% | Yes | |||||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 100,000.00 | December 19, 2022 | March 20, 2023 | The Company's own funds | Structured deposits | Floating income | 1.54%-3.50% | Yes | |||||
| Bank of Chengdu Keji Branch | “Furong Jincheng” Entity Structured Deposit | 60,000.00 | December 27, 2022 | March 28, 2023 | The Company's own funds | Structured deposits | Floating income | 1.54%-3.45% | Yes | |||||
| Bank of Chengdu Keji Branch | Bank of Chengdu “Furong Jincheng” 3M No.6 Fixed-Term Open CNY Net Wealth Management Product | 10,000.00 | December 29, 2022 | April 13, 2023 | The Company's own funds | Fixed-income assets | Floating income | 0%-3.95% | 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. Notes on material matters that have significant impact on value judgment and investment decisions of investors"□ Applicable" "√ Not applicable"
Section VII. Share Changes and ShareholdersI. 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 | |||||||||
| 1. Shares held by the state | |||||||||
| 2. Shares held by the state-owned legal entities | |||||||||
| 3. Shares held by other domestic investors | |||||||||
| 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 | 4,501,548,184 | 100 | 0 | 0 | 0 | 397,913 | 397,913 | 4,501,946,097 | 100 |
| 1. CNY common shares | 4,501,548,184 | 100 | 0 | 0 | 0 | 397,913 | 397,913 | 4,501,946,097 | 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 | 397,913 | 397,913 | 4,501,946,097 | 100 |
2. Notes on share changes
"√ Applicable" "□ Not applicable"On February 24, 2022, the Company issued convertible bonds (“Tong22 Convertible Bonds”) whichentered the conversion period on September 2, 2022. As of December 31, 2022, a total of 397,913 shareshad been converted, and the total share capital of the Company increased from 4,501,548,184 shares to4,501,946,097 shares.
3. Impact of the share change on the earnings per share, net assets per share and other financialindicators of the latest year and the latest period (if any)"√ Applicable" "□ Not applicable"During the reporting period, due to the conversion of convertible bonds into shares, the total sharecapital of the Company increased from 4,501,548,184 shares to 4,501,946,097 shares. This share capitalchange resulted in the dilution of earnings per share and net assets per share attributable to the listedcompany in 2022.
4. Other disclosures the Company thinks necessary or required by the CSRC"□ Applicable" "√ Not applicable"
(II). Change in restricted shares"□ Applicable" "√ Not applicable"
II. Issuance and listing of securities(I). Issuance in reporting period"√ Applicable" "□ Not applicable"
Unit: share Currency: CNY
| Type of stock and its derivative securities | Issue date | Issue price (or interest rate) | Issue size | Listing date | Approved quantity to trade on market | Transaction end date |
| Convertible bonds, detachable convertible bonds | ||||||
| Tong22 Convertible Bonds | February 24, 2022 | 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd year, 1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year | 120 million units | March 18, 2022 | 120 million units | February 23, 2028 |
Note on issuance of securities in the reporting period (bonds with different interest rates and within theduration should be specified individually):
"√ Applicable" "□ Not applicable"Approved by the CSRC in the CSRC Permit [2021] No. 4028, on February 24, 2022, the Companyissued 120 million convertible bonds publicly with the nominal value of each bond being 100 yuan for atotal amount of 12 billion yuan. The duration of these convertible bonds is 6 years from February 24, 2022to February 23, 2028, the coupon rate is 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd year,
1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year. One interest payment is made onTong22 Convertible Bonds each year, and the value date is the first day of the issuance (i.e., February 24,2022). Convertible bonds converted into shares before (including) the record date for creditors are notentitled to interest for the current and subsequent interest calculation years.According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and theprovisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co., Ltd., theTong22 Convertible Bonds issued by the Company can be converted into shares from September 2, 2022.The initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share, and the latest price is
38.36 yuan per share.
(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 4,501,946,097 shares, an increase of 397,913 shares.As of the end of the reporting period, Tongwei Group, the controlling shareholder, held 43.85% of shares inthe Company.As of the end of the reporting period, the total assets were 145.244 billion yuan and total liabilities were
71.999 billion yuan for a L/A ratio of 49.57%.
(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 | 358,703 |
| Total common shareholders at the end of the month prior to the disclosure date of annual report | 421,656 |
| 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) | Change in the reporting period | Closing shares | Percent (%) | Restricted shares | Pledge, mark or freeze | Shareholder type | |
| Status | Number | ||||||
| Tongwei Group Co., Ltd. | 0 | 1,974,022,515 | 43.85 | 0 | Pledged | 437,000,000 | Domestic investor other than state-owned legal entities |
| Hong Kong Securities Clearing Company Ltd. | 3,892,227 | 261,994,907 | 5.82 | 0 | None. | Unknown | |
| China Life Asset Management Company Limited - Bank of China - China Life Asset - Advantage Select 2108 Insurance Asset Management Fund | 0 | 52,099,840 | 1.16 | 0 | None. | Unknown | |
| National Social Security Fund 110 Combination | 20,241,336 | 42,366,732 | 0.94 | 0 | None. | Unknown | |
| Yang Lin | 14,111,700 | 32,552,100 | 0.72 | 0 | None. | Unknown | |
| Bank of China - Huatai PineBridge Investments Zhongzheng PV Industry Trade Open-ended Index Investment Fund | 2,452,761 | 27,013,213 | 0.60 | 0 | None. | Unknown | |
| CMB - Ruiyuan Growth Value Mixed Investment Fund | 16,974,788 | 24,668,900 | 0.55 | 0 | None. | Unknown | |
| China Life Asset Management Company Limited - Industrial Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management Fund | 0 | 24,400,000 | 0.54 | 0 | None. | Unknown | |
| Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan | -264,400 | 22,815,914 | 0.51 | 0 | None. | Unknown | |
| China Life Asset Management Company Limited - CGB - China Life Asset - Dingkun Advantage Select 2258 Insurance Asset Management Product | 21,707,578 | 21,707,578 | 0.48 | 0 | None. | Unknown | |
| Top ten shareholders without restricted shares | |||||||
| 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. | 261,994,907 | CNY common share | 261,994,907 | ||||
| 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 | ||||
| National Social Security Fund 110 Combination | 42,366,732 | CNY common share | 42,366,732 | ||||
| Yang Lin | 32,552,100 | CNY common share | 32,552,100 | ||||
| Bank of China - Huatai PineBridge Investments Zhongzheng PV Industry Trade Open-ended Index Investment Fund | 27,013,213 | CNY common share | 27,013,213 | ||||
| CMB - Ruiyuan Growth Value Mixed Investment Fund | 24,668,900 | CNY common share | 24,668,900 | ||||
| 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 | |
| Dacheng Fund - Huaneng Trust Jiayue No.7 Fund Trust - Dacheng Fund Excellence No. 2 Single Asset Management Plan | 22,815,914 | CNY common share | 22,815,914 | |
| China Life Asset Management Company Limited - CGB - China Life Asset - Dingkun Advantage Select 2258 Insurance Asset Management Product | 21,707,578 | CNY common share | 21,707,578 | |
| 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, China Life Asset Management - Industrial Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management Product, and China Life Asset Management Company Limited - CGB - China Life Asset - Dingkun Advantage Select 2258 Insurance Asset Management 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 new
bonus share"□ Applicable" "√ Not applicable"
IV. Controlling shareholder and actual controller(I). Controlling shareholder1 Legal entity"√ Applicable" "□ Not applicable"
| Name | Tongwei Group Co., Ltd. |
| Person in charge or legal representative | Guan Yamei |
| Date of incorporation | October 14, 1996 |
| 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; advertising; 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 person"□ 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 its
controlling shareholder"√ Applicable" "□ Not applicable"
(II). Actual controller1 Legal entity"□ Applicable" "√ Not applicable"
2 Natural person"√ Applicable" "□ Not applicable"
| Name | Liu Hanyuan |
| Nationality | China |
| Residence right in another country/region | No |
| Main professions and titles | Chair of the board of directors of Tongwei Group, member of the 8th board of directors of the Company, member of the 11th Standing Committee of the CPPCC National Committee, deputy to the NPC, vice-chair of Standing Committee of All-China Federation of Industry and Commerce, executive chair of CNECC, and others |
| 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"
V. The cumulative shares pledged by controlling shareholder or the largest shareholders and their
persons acting in concert account for over 80% of the total shares they hold"□ Applicable" "√ Not applicable"
VI. Other legal entities holding over ten percent of the total shares"□ Applicable" "√ Not applicable"
VII. Note on restricting sale of shares"□ Applicable" "√ Not applicable"
VIII. Specific implementation of share repurchases in the reporting period"□ Applicable" "√ Not applicable"
Section VIII. Preference Shares"□ Applicable" "√ Not applicable"
Section IX. Bonds
I. Enterprise bonds, company bonds and non-financial enterprise debt-financing instruments"√ Applicable" "□ Not applicable"
(I). Enterprise bonds"□ Applicable" "√ Not applicable"
(II). Company 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 | June 17, 2020 | June 19, 2020 | June 19, 2023 | 1.45 | 3.20 | 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 |
| 2022 Super & Short-term Commercial Paper Series 1 of Tongwei Co., Ltd. | 22Tongwei SCP001 (green) | 12281990 | May 31, 2022 | June 02, 2022 | November 29, 2022 | 0.00 | 2.50 | Interest is paid together with the principal in full at 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 |
| 2022 Green Super & Short-term Commercial Paper Series 1 of Tongwei Co., Ltd. | Paid |
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, and 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 | |
| Industrial Bank Co., Ltd. | Industrial Bank Building, No. 398 Middle Jiangbin Avenue, Taijiang District, Fuzhou, Fujian | Li Jie, and Fan Weikai | 028-84179143 | |
| China Minsheng Banking Corporation Ltd. | Minsheng Bank Building, No. 2 Fuxingmen Inner Street, Xicheng District, Beijing | Shuchang, and Yang Xi | 010-58560666 | |
| 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"
Progress and benefits of construction projects where the raised funds were used"□ Applicable" "√ Not applicable"
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 indicators | 2022 | 2021 | Change YoY (%) | Reason for change |
| Net profit net of non-recurring gain and loss attributable to shareholders of the listed company | 26,547,373,729.76 | 8,387,692,913.89 | 216.50 | |
| Current ratio | 2.08 | 1.01 | 105.94 | |
| Quick ratio | 1.77 | 0.81 | 118.52 | |
| L/A ratio (%) | 49.57 | 53.01 | -3.44 ppts | |
| EBITDA/Total debt | 1.42 | 0.75 | 89.33 | |
| Interest coverage ratio | 30.99 | 14.07 | 120.26 | |
| Cash coverage ratio | 80.13 | 21.72 | 268.92 | |
| EBITDA coverage | 36.43 | 19.96 | 82.52 | |
| Repayment ratio (%) | 100.00 | 100.00 | 0.00 | |
| Interest repayment ratio (%) | 100.00 | 100.00 | 0.00 |
II. Convertible bonds"√ Applicable" "□ Not applicable"(I). Offering of convertible bonds"√ Applicable" "□ Not applicable"
On February 21, 2022, proposals including the Proposal on Clarifying the Plan for Public OfferingA-share Convertible Bonds were approved at the 24th meeting of the 7th board of directors where mattersrelating to the offering of convertible bonds were discussed and decided. On February 24, 2022, theCompany publicly issued convertible bonds of 12 billion yuan (“Tong22 Convertible Bond”, code 110085).The amount received net of undertaking and sponsorship costs (78 million yuan) (including tax) is 11.922billion yuan. Sichuan Huaxin issued the Capital Verification Report [2022] No.0009 that confirmed theraised funds were in place. The funds raised net of issuing fee will be used for the renovation project for the
manufacturing of PV silicon materials (Yongxiang New Energy's Phase II 50,000-ton High-purityPolysilicon Project), for the manufacturing project of PV silicon materials (Inner Mongolia Tongwei’sPhase II 50,000-ton High-purity Polysilicon Project), the 15 GW monocrystalline Rod Pulling and CuttingProject as well as for supplementing current funds.
On March 7, 2022, the registration and custody procedures for “Tong22 Convertible Bond” werecompleted in CSDC Shanghai. On March 18, 2022, “Tong22 Convertible Bond” was listed in the bondmarket. According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and theprovisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co., Ltd., theTong22 Convertible Bonds issued by the Company can be converted into shares from September 2, 2022.The initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share, and the latest price is
38.36 yuan per share.
(II). Convertible bond holders and guarantors in the reporting period"√Applicable" "□Not applicable"
| Name of convertible bond | Tong22 Convertible Bonds | |
| Number of holders at the period-end | 67,178 | |
| Guarantor of the Company's convertible bonds | None. | |
| Top ten holders of convertible bonds: | ||
| Convertible bonds holders | Bonds held at the end of the period (yuan) | Bond holding percent (%) |
| Tongwei Group Co., Ltd. | 3,251,080,000 | 27.13 |
| Haitong Securities Asset Management - CITIC Bank - Haitong Asset Management Ruifeng Huicheng No. 3 Collective Asset Management Plan | 809,690,000 | 6.76 |
| ICBC - Boshi Credit Bond Investment Fund | 192,892,000 | 1.61 |
| CMB - Ruiyuan Wenjin Allocation 2Y Mixed Security Investment Fund | 190,226,000 | 1.59 |
| Happy Life Insurance Co., Ltd. - Distribution | 153,343,000 | 1.28 |
| CNPC Business Annuity Plan - ICBC | 126,208,000 | 1.05 |
| Fuguo Fuyi Aggressive Fixed Income Pension Product - ICBC | 125,841,000 | 1.05 |
| China Construction Bank - E-Fund Dual-bond Enhanced Bond Investment Fund | 122,285,000 | 1.02 |
| E-Fund Anxin Fixed Income Pension Product - ICBC | 114,610,000 | 0.96 |
| Ping An Bank - Changxin Convertible Bond Investment Fund | 113,367,000 | 0.95 |
(III). Changes in convertible bonds in the reporting period"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Bond name | Before the change | Change | After the change | ||
| Converted to share capital | Redemption | Sell back | |||
| Tong22 Convertible Bonds | 12,000,000,000.00 | 15,270,000.00 | 11,984,730,000.00 | ||
Cumulative conversion to shares in the reporting period"√Applicable" "□Not applicable"
| Name of convertible bond | Tong22 Convertible Bonds |
| Amount converted in the reporting period (yuan) | 15,270,000.00 |
| Shares converted in the reporting period | 397,913 |
| Accumulated shares converted | 397,913 |
| Ratio of accumulated shares converted to the total shares issued by the Company before the conversion (%) | 0.00884 |
| Amount that has not converted (yuan) | 11,984,730,000.00 |
| Ratio of balance convertible bonds to total convertible bonds issued (%) | 99.87275 |
(IV). Adjustments of conversion prices"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Name of convertible bond | Tong22 Convertible Bonds | |||
| Adjustment date | Conversion price after adjustment | Disclosure date | Disclosure media | Remarks |
| May 30, 2022 | 38.36 yuan/share | May 31, 2022 | China Securities Journal, Shanghai Securities News, Securities Daily, and STCN | The Company paid cash distribution of 9.12 yuan for per 10 shares (including tax) |
| The latest conversion price as of the end of the reporting period | 38.36 yuan/share | |||
(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 XiaHongbo, accountants from Sichuan Huaxin who have issued an unqualified opinion.
II. Financial Statements
Consolidated balance sheetDecember 31, 2022Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
| Item | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Cash at bank and on hand | 36,841,572,130.01 | 3,001,930,882.38 | |
| Settlement provisions | |||
| Lending to banks and other financial institutions | |||
| Held-for-trading financial assets | 4,298,524,475.70 | 10,617,668.58 | |
| Derivative financial assets | |||
| Notes receivable | 2,450,913,663.89 | 1,576,925,682.02 | |
| Accounts receivable | 4,501,362,630.14 | 2,915,527,149.08 | |
| Receivables financing | 13,066,496,368.98 | 11,406,947,347.71 | |
| Prepayments | 1,487,172,992.72 | 1,606,545,040.83 | |
| Premium receivable | |||
| Reinsurance receivable | |||
| Reinsurance contract reserve receivable | |||
| Other receivables | 477,514,347.63 | 611,985,134.57 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Buy-back of financial assets | |||
| Inventories | 11,002,649,108.38 | 5,682,791,568.04 | |
| Contract assets | 597,931,195.59 | 715,103,024.30 | |
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 786,407,734.06 | 1,220,643,137.83 | |
| Total current assets | 75,510,544,647.10 | 28,749,016,635.34 | |
| Non-current assets: | |||
| Loans and advances | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 390,587,150.21 | 455,798,325.58 | |
| Other equity investments | 154,196,557.28 | 153,551,598.71 | |
| Other non-current financial assets | 3,146,248.25 | 3,146,248.25 | |
| Investment properties | 107,712,227.79 | 112,342,965.02 | |
| Fixed assets | 53,291,968,869.20 | 36,958,671,998.09 | |
| Construction in progress | 3,997,396,999.92 | 10,610,819,753.03 | |
| Productive biological assets | 9,069,395.61 | 3,637,671.91 | |
| Oil and gas assets | |||
| Right-of-use assets | 4,063,421,131.88 | 4,376,242,263.30 | |
| Intangible assets | 2,455,828,500.38 | 2,410,841,890.16 | |
| R&D cost | |||
| Goodwill | 603,006,493.02 | 746,573,277.73 | |
| Deferred expenses | 359,564,900.07 | 261,810,537.42 | |
| Deferred tax assets | 1,593,765,733.23 | 612,117,399.13 | |
| Other non-current assets | 2,703,584,777.25 | 2,440,626,665.32 | |
| Total non-current assets | 69,733,248,984.09 | 59,146,180,593.65 | |
| Total assets | 145,243,793,631.19 | 87,895,197,228.99 | |
| Current liabilities: | |||
| Short-term borrowings | 87,767,124.22 | 1,375,230,141.70 | |
| Borrowings from central bank | |||
| Borrowings from banks and other financial institutions | |||
| Held-for-trading financial liabilities | 64,351,114.48 | ||
| Derivative financial liabilities | |||
| Notes payable | 8,851,423,365.95 | 9,957,923,070.67 | |
| Accounts payable | 11,018,161,537.30 | 8,151,270,076.21 | |
| Advances from customers | 36,467,894.64 | 102,259,825.29 | |
| Contract liabilities | 5,405,872,108.61 | 3,112,027,804.79 | |
| 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 | 3,141,064,588.92 | 1,388,757,870.41 | |
| Taxes payable | 2,974,081,003.57 | 815,986,908.56 | |
| Other payables | 2,142,680,307.16 | 761,620,932.59 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Service charge and commission payable | |||
| Reinsurance receivable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 2,212,098,569.45 | 2,487,029,263.29 | |
| Other current liabilities | 423,380,299.96 | 207,540,516.40 | |
| Total current liabilities | 36,357,347,914.26 | 28,359,646,409.91 | |
| Non-current liabilities: | |||
| Reinsurance contract reserve | |||
| Long-term borrowings | 15,409,335,995.67 | 11,441,029,860.16 | |
| Bonds payable | 10,276,944,561.67 | 410,493,072.19 | |
| Including: preference share | |||
| Perpetual bond | |||
| Lease liabilities | 2,906,711,682.49 | 2,500,641,465.80 | |
| Long-term payables | 974,391,127.03 | 1,648,303,239.69 | |
| Long-term employee benefits payable | 3,805,815,900.20 | 649,891,600.00 | |
| Estimated liabilities | 177,993,077.06 | ||
| Deferred income | 867,530,196.50 | 900,673,699.85 | |
| Deferred tax liability | 1,222,489,360.55 | 682,712,636.40 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 35,641,211,901.17 | 18,233,745,574.09 | |
| Total liabilities | 71,998,559,815.43 | 46,593,391,984.00 | |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,946,097.00 | 4,501,548,184.00 | |
| Other equity instruments | 1,965,085,659.43 | ||
| Including: Preference share | |||
| Perpetual bond | |||
| Capital reserve | 16,144,302,399.09 | 16,107,859,721.40 | |
| Less: Treasury shares | |||
| Other comprehensive income | -108,859,803.29 | -82,307,403.96 | |
| Special reserve | 33,751,973.14 | 15,918,034.03 | |
| Surplus reserve | 2,407,355,585.45 | 1,414,948,005.57 | |
| General risk reserve | |||
| Undistributed profit | 35,853,681,478.39 | 15,225,053,765.81 | |
| Total equity attributable to owners or shareholders of parent company | 60,797,263,389.21 | 37,183,020,306.85 | |
| Minority interest | 12,447,970,426.55 | 4,118,784,938.14 | |
| Total owners’ equity (or shareholders' equity) | 73,245,233,815.76 | 41,301,805,244.99 | |
| Total liabilities and owners’ equity (or shareholders' equity) | 145,243,793,631.19 | 87,895,197,228.99 | |
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Parent balance sheet
December 31, 2022Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
| Item | Notes | December 31, 2022 | December 31, 2021 |
| Current assets: | |||
| Cash at bank and on hand | 34,996,954,215.09 | 1,970,060,333.61 | |
| Held-for-trading financial assets | 4,290,735,647.46 | ||
| Derivative financial assets | |||
| Notes receivable | |||
| Accounts receivable | 40,695,659.25 | ||
| Receivables financing | 36,154,999.85 | 109,493,387.71 | |
| Prepayments | 4,363,885.53 | 108,614,897.08 | |
| Other receivables | 22,391,469,716.10 | 20,560,977,497.02 | |
| Including: Interest receivable | |||
| Dividend receivable | |||
| Inventories | 14,343,230.10 | 261,237,746.52 | |
| Contract assets | |||
| Assets held for sale | |||
| Non-current assets due within one year | |||
| Other current assets | 338,226.78 | 2,541,944.34 | |
| Total current assets | 61,734,359,920.91 | 23,053,621,465.53 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | 4,441,414,203.45 | 3,779,357,407.99 | |
| Long-term equity investments | 21,181,430,718.04 | 17,409,956,118.46 | |
| Other equity investments | 154,196,557.28 | 153,551,598.71 | |
| Other non-current financial assets | |||
| Investment properties | 35,202,472.92 | 36,946,716.47 | |
| Fixed assets | 41,873,569.27 | 318,040,343.39 | |
| Construction in progress | 9,222,801.67 | 32,573,013.72 | |
| Productive biological assets | |||
| Oil and gas assets | |||
| Right-of-use assets | 95,863,377.40 | 186,547,779.55 | |
| Intangible assets | 9,611,894.35 | 59,947,661.65 | |
| R&D cost | |||
| Goodwill | |||
| Deferred expenses | 9,951,422.32 | 28,608,471.43 | |
| Deferred tax assets | 11,881.09 | 1,718,240.52 | |
| Other non-current assets | 629,339.86 | ||
| Total non-current assets | 25,979,408,237.65 | 22,007,247,351.89 | |
| Total assets | 87,713,768,158.56 | 45,060,868,817.42 | |
| Current liabilities: | |||
| Short-term borrowings | 1,000,952,777.78 | ||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 100,599,628.21 | 210,000,000.00 | |
| Accounts payable | 2,668,604.48 | 192,746,374.17 | |
| Advances from customers | 980,272.02 | ||
| Contract liabilities | 133,018,997.22 | ||
| Employee benefits payable | 134,030,997.42 | 75,932,124.36 | |
| Taxes payable | 11,295,059.26 | 6,854,246.18 | |
| Other payables | 30,293,482,060.86 | 7,261,257,606.36 | |
| Including: Interest payable | |||
| Dividend payable | |||
| Liabilities held for sale | |||
| Non-current liabilities due within one year | 686,154,965.70 | 180,364,861.73 | |
| Other current liabilities | 500.83 | ||
| Total current liabilities | 31,228,231,315.93 | 9,062,107,760.65 | |
| Non-current liabilities: | |||
| Long-term borrowings | 6,675,680,000.00 | 4,066,980,000.00 | |
| Bonds payable | 10,276,944,561.67 | 410,493,072.19 | |
| Including: Preference share | |||
| Perpetual bond | |||
| Lease liabilities | 97,681,720.48 | 175,574,283.65 | |
| Long-term payables | 875,898,885.36 | 875,898,885.36 | |
| Long-term employee benefits payable | 328,435,130.02 | 37,740,000.00 | |
| Estimated liabilities | |||
| Deferred income | |||
| Deferred tax liability | |||
| Other non-current liabilities | |||
| Total non-current liabilities | 18,254,640,297.53 | 5,566,686,241.20 | |
| Total liabilities | 49,482,871,613.46 | 14,628,794,001.85 | |
| Owners’ equity (or shareholders' equity) | |||
| Paid-up capital (or share capital) | 4,501,946,097.00 | 4,501,548,184.00 | |
| Other equity instruments | 1,965,085,659.43 | ||
| Including: preference share | |||
| Perpetual bond | |||
| Capital reserve | 17,097,876,701.86 | 17,082,993,947.39 | |
| Less: Treasury shares | |||
| Other comprehensive income | 6,914,433.08 | 7,122,885.47 | |
| Special reserve | |||
| Surplus reserve | 2,407,355,585.45 | 1,414,948,005.57 | |
| Undistributed profit | 12,251,718,068.28 | 7,425,461,793.14 | |
| Total owners’ equity (or shareholders' equity) | 38,230,896,545.10 | 30,432,074,815.57 | |
| Total liabilities and owners’ equity (or shareholders' equity) | 87,713,768,158.56 | 45,060,868,817.42 |
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Consolidated Profit Statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | Notes | 2022 | 2021 |
| I. Total operating revenue | 142,422,517,994.99 | 64,829,996,083.91 | |
| Including: Operating revenue | 142,422,517,994.99 | 64,829,996,083.91 | |
| Interest income | |||
| Earned premium | |||
| Service charge and commission income | |||
| II. Total operating cost | 100,427,612,658.05 | 54,191,904,775.91 | |
| Including: Operating cost | 88,059,961,179.23 | 48,382,829,594.08 | |
| 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 | 911,375,125.67 | 275,955,240.38 | |
| Sales expense | 1,434,770,892.87 | 919,009,792.93 | |
| Management expense | 7,867,914,704.37 | 2,951,233,971.46 | |
| R&D cost | 1,464,443,543.84 | 1,025,715,488.68 | |
| Financial expense | 689,147,212.07 | 637,160,688.38 | |
| Including: Interest expense | 1,184,822,793.36 | 680,586,204.87 | |
| Interest income | 458,574,423.96 | 111,780,056.77 | |
| Add: Other income | 397,490,494.89 | 359,499,729.72 | |
| Investment gain or loss (“-” for loss) | -421,003,980.91 | 42,536,586.67 | |
| Including: Gains or losses from investments into associates and joint ventures | -62,827,359.84 | -14,159,521.52 | |
| 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) | -36,444,307.36 | 5,754,600.46 | |
| Credit impairment loss (“-” for loss) | -135,768,734.15 | -123,656,047.25 | |
| Asset impairment loss (“-” for loss) | -2,211,875,357.07 | -129,121,084.08 | |
| Gain or loss from disposal of assets (“-” for loss) | -13,438,161.21 | -78,230,632.51 | |
| III. Operating profit (“-” for loss) | 39,573,865,291.13 | 10,714,874,461.01 | |
| Add: Non-operating revenue | 31,419,391.34 | 19,939,910.39 |
| Less: Non-operating expense | 1,266,474,529.33 | 464,366,862.21 | |
| IV: Total profit (“-” for loss) | 38,338,810,153.14 | 10,270,447,509.19 | |
| Less: Income tax expense | 5,965,924,612.33 | 1,648,944,454.00 | |
| V. Net profit (“-” for net loss) | 32,372,885,540.81 | 8,621,503,055.19 | |
| (I) By continuation | |||
| 1. Going Concern profit (“-” for net loss) | 32,372,885,540.81 | 8,621,503,055.19 | |
| 2. Discontinuation profit (“-” for net loss) | |||
| (II) By ownership attribution | |||
| 1. Net profit attributable to shareholders of the parent company (“-” for net loss) | 25,726,447,236.27 | 8,109,125,091.40 | |
| 2. Gain or loss to minority shareholders (“-” for net loss) | 6,646,438,304.54 | 512,377,963.79 | |
| VI. Other comprehensive income after tax | -25,773,410.24 | -8,662,660.90 | |
| (I) Other comprehensive income after tax attributable to owners of the parent company | -26,552,399.33 | -8,393,182.24 | |
| 1. Other comprehensive income that cannot be reclassified into profit or loss | 644,958.57 | 106,497.86 | |
| (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 | 644,958.57 | 106,497.86 | |
| (4) Change in fair value of the Company's own credit risk | |||
| 2. Other comprehensive income that will be reclassified into profit or loss | -27,197,357.90 | -8,499,680.10 | |
| (1) Other comprehensive income that can be converted to profit or loss under equity method | -1,120,566.26 | 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 | -26,076,791.64 | -8,758,766.86 | |
| (7) Others | |||
| (II) Other comprehensive income after tax attributable to minatory shareholders | 778,989.09 | -269,478.66 | |
| VII. Total other comprehensive income | 32,347,112,130.57 | 8,612,840,394.29 | |
| (I) Total other comprehensive income attributable to owners of the parent company | 25,699,894,836.94 | 8,100,731,909.16 | |
| (II) Total other comprehensive income attributable to minatory shareholders | 6,647,217,293.63 | 512,108,485.13 | |
| VIII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | 5.7149 | 1.8014 | |
| (II) Diluted earnings per share (yuan/share) | 5.4889 | 1.8014 | |
The net income realized by the acquired business before business combinations under common control is 0yuan, the net income realized by the acquired business in the previous period is 0 yuan.Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Parent profit statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | Notes | 2022 | 2021 |
| I. Operating revenue | 3,367,210,659.32 | 4,745,062,369.13 |
| Less: Operating cost | 2,981,184,608.14 | 4,138,074,509.01 | |
| Tax and surcharge | 8,347,289.08 | 9,442,554.93 | |
| Sales expense | 95,730,597.83 | 136,155,655.40 | |
| Management expense | 590,606,402.95 | 284,114,028.78 | |
| R&D cost | 129,328,520.57 | 123,549,069.00 | |
| Financial expense | 308,179,111.19 | 43,467,537.55 | |
| Including: Interest expense | 1,052,683,104.01 | 346,428,748.95 | |
| Interest income | 851,330,246.98 | 313,377,278.23 | |
| Add: Other income | 18,601,098.59 | 15,780,831.45 | |
| Investment gain or loss (“-” for loss) | 10,806,401,329.43 | 5,126,983,146.04 | |
| Including: Gains or losses from investments into associates and joint ventures | 1,006,754.59 | -10,820,494.85 | |
| 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) | 30,735,647.46 | ||
| Credit impairment loss (“-” for loss) | -56,886,334.13 | -233,666,771.33 | |
| Asset impairment loss (“-” for loss) | -86,073,100.00 | -24,020,900.00 | |
| Gain or loss from disposal of assets (“-” for loss) | 3,953,723.06 | 373,738.64 | |
| II. Operating profit (“-” for loss) | 9,970,566,493.97 | 4,895,709,059.26 | |
| Add: Non-operating revenue | 3,981,779.45 | 3,088,115.30 | |
| Less: Non-operating expense | 50,998,355.60 | 2,648,476.27 | |
| III. Total profit (“-” for loss) | 9,923,549,917.82 | 4,896,148,698.29 | |
| Less: Income tax expense | -525,881.01 | -107,732.97 | |
| IV. Net profit (“-” for net loss) | 9,924,075,798.83 | 4,896,256,431.26 | |
| (I) Net going concern profit (“-” for net loss) | 9,924,075,798.83 | 4,896,256,431.26 | |
| (II) Net discontinuation profit (“-” for net loss) | |||
| V. Other comprehensive income after tax | -208,452.39 | 365,584.62 | |
| (I) Other comprehensive income that cannot be reclassified into profit or loss | 644,958.57 | 106,497.86 | |
| 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 | 644,958.57 | 106,497.86 | |
| 4. Change in fair value of the Company's own credit risk | |||
| (II) Other comprehensive income that will be reclassified into profit or loss | -853,410.96 | 259,086.76 | |
| 1. Other comprehensive income that can be converted to profit or loss under equity method | -853,410.96 | 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 | 9,923,867,346.44 | 4,896,622,015.88 | |
| VII. Earnings per share: | |||
| (I) Basic earnings per share (yuan/share) | |||
| (II) Diluted earnings per share (yuan/share) | |||
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Consolidated cash flow statement
Jan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | Notes | 2022 | 2021 |
| I. Cash flow generated from operating activities: | |||
| Cash received from sales of goods and rendering of services | 129,778,869,793.04 | 57,872,243,385.87 | |
| 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 | 3,233,928,616.99 | 590,036,800.90 | |
| Other cash received relating to operating activities | 1,667,360,720.28 | 1,174,476,733.25 | |
| Subtotal of cash inflows from operating activities | 134,680,159,130.31 | 59,636,756,920.02 | |
| Cash paid for purchase of goods and services | 72,510,726,290.58 | 46,141,587,117.16 | |
| 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 | 5,677,680,301.33 | 3,196,053,127.99 | |
| Taxes paid | 11,250,865,083.20 | 1,796,494,444.14 | |
| Other cash paid relating to operating activities | 1,422,977,823.50 | 1,028,228,797.40 | |
| Subtotal of cash outflows from operating activities | 90,862,249,498.61 | 52,162,363,486.69 | |
| Net cash flow generated from operating activities | 43,817,909,631.70 | 7,474,393,433.33 | |
| II. Cash flow generated from investing activities: | |||
| Cash received due to recovery of investments | 15,351,122,402.01 | 4,833,376,932.32 | |
| Cash received from investment income | 90,168,401.31 | 123,201,544.94 | |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 32,745,081.47 | 123,667,405.09 | |
| Net cash received from disposal of subsidiaries and other operations | 1,225,758.29 | ||
| Other cash received relating to investing activities | 702,279,499.81 | 467,644,949.90 | |
| Subtotal of cash inflows from investing activities | 16,176,315,384.60 | 5,549,116,590.54 | |
| Cash paid for acquisition or construction of fixed assets, intangible assets and other long-term assets | 15,217,915,448.02 | 13,831,244,643.76 | |
| Cash paid for investments | 21,257,542,308.85 | 3,398,650,423.15 | |
| 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 | 507,009,192.23 | 506,985,472.09 | |
| Subtotal of cash outflows from investing activities | 36,982,466,949.10 | 18,996,265,500.47 | |
| Net cash flow generated from investing activities | -20,806,151,564.50 | -13,447,148,909.93 | |
| III. Cash flow generated from financing activities: | |||
| Cash received from investors | 2,032,310,000.00 | 2,731,415,000.00 | |
| Including: Cash received by subsidiaries from minority shareholders | 2,032,310,000.00 | 2,731,415,000.00 | |
| Cash received from borrowings | 24,315,537,980.34 | 13,172,158,951.98 | |
| Other cash received relating to financing activities | 457,955,650.47 | 343,181,178.57 | |
| Subtotal of cash inflows from financing activities | 26,805,803,630.81 | 16,246,755,130.55 | |
| Cash paid for debt repayment | 9,946,780,729.20 | 9,310,054,630.44 | |
| Cash paid for dividend or profit distribution, or interest payment | 5,058,764,723.29 | 1,726,682,632.19 | |
| Including: Dividend and profit paid by subsidiaries to minority shareholders | 352,297,232.96 | 217,972,571.50 | |
| Other cash paid relating to financing activities | 2,553,984,080.73 | 2,308,373,440.84 | |
| Subtotal of cash outflows from financing activities | 17,559,529,533.22 | 13,345,110,703.47 | |
| Net cash flow generated from financing activities | 9,246,274,097.59 | 2,901,644,427.08 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | 32,930,746.69 | -11,852,850.31 | |
| V. Net increase in cash and cash equivalents | 32,290,962,911.48 | -3,082,963,899.83 | |
| Add: Opening cash and cash equivalents | 2,903,078,719.63 | 5,986,042,619.46 | |
| VI. Closing cash and cash equivalents | 35,194,041,631.11 | 2,903,078,719.63 | |
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Parent cash flow statementJan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | Notes | 2022 | 2021 |
| I. Cash flow generated from operating activities: | |||
| Cash received from sales of goods and rendering of services | 3,340,807,926.80 | 4,719,527,304.66 | |
| Tax refunds received | |||
| Other cash received relating to operating activities | 503,273,895.96 | 119,239,810.87 | |
| Subtotal of cash inflows from operating activities | 3,844,081,822.76 | 4,838,767,115.53 | |
| Cash paid for purchase of goods and services | 2,992,277,754.28 | 4,170,583,130.41 | |
| Cash paid to and for employees | 278,171,429.61 | 335,195,029.61 | |
| Taxes paid | 10,497,939.50 | 11,870,127.73 | |
| Other cash paid relating to operating activities | 223,948,983.50 | 212,211,511.38 | |
| Subtotal of cash outflows from operating activities | 3,504,896,106.89 | 4,729,859,799.13 | |
| Net cash flow generated from operating activities | 339,185,715.87 | 108,907,316.40 | |
| II. Cash flow generated from investing activities: | |||
| Cash received due to recovery of investments | 14,539,599,013.42 | 4,665,314,477.11 | |
| Cash received from investment income | 10,871,381,001.31 | 5,075,416,248.29 | |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 13,541,176.21 | 2,789,338.88 | |
| 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 | 25,424,521,190.94 | 9,744,336,538.98 | |
| Cash paid for acquisition or construction of fixed | 21,513,848.16 | 110,423,219.68 | |
| assets, intangible assets and other long-term assets | |||
| Cash paid for investments | 23,556,047,295.90 | 6,697,701,017.73 | |
| Net cash paid by subsidiaries and other operations | |||
| Other cash paid relating to investing activities | 855,177.47 | ||
| Subtotal of cash outflows from investing activities | 23,578,416,321.53 | 6,808,124,237.41 | |
| Net cash flow generated from investing activities | 1,846,104,869.41 | 2,936,212,301.57 | |
| III. Cash flow generated from financing activities: | |||
| Cash received from investors | |||
| Cash received from borrowings | 19,835,576,945.97 | 5,490,022,450.94 | |
| Other cash received relating to financing activities | 23,008,374,092.93 | 3,228,660,151.11 | |
| Subtotal of cash inflows from financing activities | 42,843,951,038.90 | 8,718,682,602.05 | |
| Cash paid for debt repayment | 6,217,188,719.97 | 5,927,154,780.94 | |
| Cash paid for dividend or profit distribution, or interest payment | 4,334,627,138.79 | 1,317,238,048.86 | |
| Other cash paid relating to financing activities | 3,065,756,083.26 | 7,989,717,459.15 | |
| Subtotal of cash outflows from financing activities | 13,617,571,942.02 | 15,234,110,288.95 | |
| Net cash flow generated from financing activities | 29,226,379,096.88 | -6,515,427,686.90 | |
| IV. Effect of exchange rate changes on cash and cash equivalents | 299,949.33 | 74,502.26 | |
| V. Net increase in cash and cash equivalents | 31,411,969,631.49 | -3,470,233,566.67 | |
| Add: Opening cash and cash equivalents | 1,959,806,333.61 | 5,430,039,900.28 | |
| VI. Closing cash and cash equivalents | 33,371,775,965.10 | 1,959,806,333.61 | |
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou BinHead of Accounting Department: Gan Lu
Consolidated statement of owner's equity
Jan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | 2022 | ||||||||||||||
| Equity attributable to owners of parent company | Minority interest | Total owner’s equity | |||||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital reserve | 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 | 16,107,859,721.40 | -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 | ||||||
| Add: Changes in accounting policies | -319,550,651.51 | -319,550,651.51 | -35,244,241.66 | -354,794,893.17 | |||||||||||
| Correction of previous errors | |||||||||||||||
| Business combination under common control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of the current year | 4,501,548,184.00 | 16,107,859,721.40 | -82,307,403.96 | 15,918,034.03 | 1,414,948,005.57 | 15,225,053,765.81 | 37,183,020,306.85 | 4,118,784,938.14 | 41,301,805,244.99 | ||||||
| III. Change in current period (“-” for decrease) | 397,913.00 | - | - | 1,965,085,659.43 | 36,442,677.69 | - | -26,552,399.33 | 17,833,939.11 | 992,407,579.88 | 20,628,627,712.58 | - | 23,614,243,082.36 | 8,329,185,488.41 | 31,943,428,570.77 | |
| (I) Total comprehensive income | -26,552,399.33 | 25,726,447,236.27 | 25,699,894,836.94 | 6,647,217,293.63 | 32,347,112,130.57 | ||||||||||
| (II) Capital invested and decreased by owners | 397,913.00 | 1,965,085,659.43 | 15,050,495.92 | 1,980,534,068.35 | 2,032,310,000.00 | 4,012,844,068.35 | |||||||||
| 1. Common shares invested by owners | 2,032,310,000.00 | 2,032,310,000.00 | |||||||||||||
| 2. Capital invested by holders of other equity instruments | 397,913.00 | 1,965,085,659.43 | 15,050,495.92 | 1,980,534,068.35 | 1,980,534,068.35 | ||||||||||
| 3. Amount of share payment recorded into owner's equity | |||||||||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | 992,407,579.88 | -5,097,819,523.69 | -4,105,411,943.81 | -352,297,232.96 | -4,457,709,176.77 | ||||||||||
| 1. Withdrawal from surplus reserve | 992,407,579.88 | -992,407,579.88 | |||||||||||||
| 2. Withdrawal from general risk reserve | |||||||||||||||
| 3. Distribution to owners (or shareholders) | -4,105,411,943.81 | -4,105,411,943.81 | -352,297,232.96 | -4,457,709,176.77 | |||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||||||
| 1. Capital reserve 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 | 17,833,939.11 | 17,833,939.11 | 8,458,633.63 | 26,292,572.74 | |||||||||||
| 1. Withdrawal in the current period | 140,169,711.16 | 140,169,711.16 | 24,864,389.98 | 165,034,101.14 | |||||||||||
| 2. Use in the current period | 122,335,772.05 | 122,335,772.05 | 16,405,756.35 | 138,741,528.40 | |||||||||||
| (VI) Others | 21,392,181.77 | 21,392,181.77 | -6,503,205.89 | 14,888,975.88 | |||||||||||
| IV. Closing balance of the current period | 4,501,946,097.00 | - | - | 1,965,085,659.43 | 16,144,302,399.09 | - | -108,859,803.29 | 33,751,973.14 | 2,407,355,585.45 | 35,853,681,478.39 | 60,797,263,389.21 | 12,447,970,426.55 | 73,245,233,815.76 |
| Item | 2021 | ||||||||||||||
| Equity attributable to owners of parent company | Minority interest | Total owner’s equity | |||||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital reserve | 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 | -375,926,424.61 | -375,926,424.61 | -17,567,039.46 | -393,493,464.07 | |||||||||||
| Correction of previous errors | |||||||||||||||
| Business combination 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 | 8,690,427,429.89 | 30,165,478,605.12 | 984,974,241.00 | 31,150,452,846.12 | ||||||
| III. Change in current period (“-” for decrease) | 2,165,933.96 | -8,393,182.24 | -483,029.04 | 489,625,643.13 | 6,534,626,335.92 | 7,017,541,701.73 | 3,133,810,697.14 | 10,151,352,398.87 | |||||||
| (I) Total comprehensive income | -8,393,182.24 | 8,109,125,091.40 | 8,100,731,909.16 | 512,108,485.13 | 8,612,840,394.29 | ||||||||||
| (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 owner's 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 owner's equity | |||||||||||||||
| 1. Capital reserve 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 the current period | 67,672,255.14 | 67,672,255.14 | 67,672,255.14 | ||||||||||||
| 2. Use in the 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 | 15,225,053,765.81 | 37,183,020,306.85 | 4,118,784,938.14 | 41,301,805,244.99 |
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
Parent statement of owner's equity
Jan to Dec, 2022
Unit: Yuan Currency: CNY
| Item | 2022 | ||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owner’s equity | |||
| Preference share | Perpetual bond | Others | |||||||||
| I. Closing balance of the previous year | 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 | |||||
| Add: Changes in accounting policies | |||||||||||
| Correction of previous errors | |||||||||||
| Others | |||||||||||
| II. Opening balance of the current year | 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 | |||||
| III. Change in current period (“-” for decrease) | 397,913.00 | 1,965,085,659.43 | 14,882,754.47 | -208,452.39 | 992,407,579.88 | 4,826,256,275.14 | 7,798,821,729.53 | ||||
| (I) Total comprehensive income | -208,452.39 | 9,924,075,798.83 | 9,923,867,346.44 | ||||||||
| (II) Capital invested and decreased by owners | 397,913.00 | 1,965,085,659.43 | 15,050,495.92 | 1,980,534,068.35 | |||||||
| 1. Common shares invested by owners | |||||||||||
| 2. Capital invested by holders of other equity instruments | 397,913.00 | 1,965,085,659.43 | 15,050,495.92 | 1,980,534,068.35 | |||||||
| 3. Amount of share payment recorded into owner's equity | |||||||||||
| 4. Others | |||||||||||
| (III) Profit distribution | 992,407,579.88 | -5,097,819,523.69 | -4,105,411,943.81 | ||||||||
| 1. Withdrawal from surplus reserve | 992,407,579.88 | -992,407,579.88 | |||||||||
| 2. Distribution to owners (or shareholders) | -4,105,411,943.81 | -4,105,411,943.81 | |||||||||
| 3. Others | |||||||||||
| (IV) Internal carryover of owner's equity | |||||||||||
| 1. Capital reserve 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 the current period | |||||||||||
| 2. Use in the current period | |||||||||||
| (VI) Others | -167,741.45 | -167,741.45 | |||||||||
| IV. Closing balance of the current period | 4,501,946,097.00 | 1,965,085,659.43 | 17,097,876,701.86 | 6,914,433.08 | 2,407,355,585.45 | 12,251,718,068.28 | 38,230,896,545.10 |
| Item | 2021 | ||||||||||
| Paid-up capital (or share capital) | Other equity instruments | Capital reserve | Less: Treasury shares | Other comprehensive income | Special reserve | Surplus reserve | Undistributed profit | Total owner’s 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. Change in current period (“-” 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 owner's 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 owner's equity | |||||||||||
| 1. Capital reserve 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 the current period | |||||||||||
| 2. Use in the 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 | |||||
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
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 Commerce ofthe 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 general meeting of Tongwei Co., Ltd. onnon -tradable share reform on February 20, 2006. According to the plan, floating shareholders would get aconsideration of 1.5 shares from non-floating shareholders for each 10 floating shares they hold. As such,floating shareholders obtained 9 million shares as the consideration. The registration of shares as result ofthe reform was completed on March 3, 2006.
On May 25, 2006, the Company increased its share capital through capital reserve (5 shares per 10shares) and share bonus (5 shares per 10 shares). As a result of the conversion and bonus, the Company hada total of 343.76 million shares; on May 23, 2007, the Company again increased its share capital throughcapital reserve (7 shares per 10 shares) and share bonus (3 shares per 10 shares), leading to a total of 687.52million 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 such asTongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such as Tang Guangyue,the face value of each share was 1.00 yuan. After that, the share capital was 1,055,434,512 shares.
On May 19, 2016, the Company increased its share capital through capital reserve (4 shares per 10shares) and share bonus (6 shares per 10 shares). As a result of the conversion and bonus, the Company hada 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 08, 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 convertiblebonds 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 bonds were listed for trading on the ShanghaiStock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible Bond for short, thebond code is 110054; the corporate stock was not lower than 130% (namely 15.96 yuan/share ) of thecurrent conversion price of Tongwei Convertible Bond for at least 15 trading days in 30 consecutive tradingdays from January 14, 2020 to March 3, 2020; the redemption clause of "Tongwei Convertible Bonds" hasbeen triggered. The sixth meeting of the seventh board of directors approved the Company to exercise theearly redemption right to redeem all "Tongwei Convertible Bonds" registered on the "RedemptionRegistration Date"; the deadline of the redemption registration date is March 16, 2020; TongweiConvertible Bonds with a face value of 4,979,353,000 yuan were converted into 405,483,464 company
shares. After that, the Company had a total of 4,287,855,684 shares.On November 20, 2020, the Company issued 213,692,500 shares to 16 institutions including ChangduTongrui Industrial Partnership (Limited Partnership) Co., Ltd. After that, the Company had a total of4,501,548,184 shares.
As approved by CSRC in its ZJXK [2021] No. 4028, the Company publicly issued 120 millionconvertible bonds valued 12 billion yuan for a term of 6 years. As agreed by the Shanghai Stock Exchangein the Self-Discipline Regulation Decision 2022 [No.61], the convertible bonds were listed on ShanghaiStock Exchange on March 18, 2022. The short name of the bond is “Tong22 Convertible Bonds” (code110085). The Tong22 Convertible Bonds can be converted to the Company's shares from September 2,2022. From September 2, 2022 when Tong22 Convertible Bonds entered the conversion period, toDecember 31, 2022, a total of 152,700 Tong22 Convertible Bonds were converted into the Company's Ashares, with a cumulative conversion of 15,270,000.00 yuan or 397,913 shares. After the conversion, thetotal number of shares is 4,501,946,097.
(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 veterinary drugsand feed additives; slaughtering and processing fish, pig and duck food and selling live fish; production andsales of polysilicon and monocrystalline silicon, polyvinyl chloride and its series products, sodiumhydroxide and ancillary products, carbide slag cement; research and development of new chemical products;production and sales of monocrystalline and polycrystalline silicon wafers, solar cell wafers, solar cellmodules, solar heat pipes, solar water heaters, water heating systems and solar photo thermal applications;energy technology research and development; research and development of solar power generationtechnology and technical consultation; design and construction of power engineering and power systeminstallation engineering; sales of PV equipment and providing technical advice; solar power generation;electricity supply; electrical installation; engineering design; science and technology promotion andapplication service industry; comprehensive utilization of waste resources; environmental governanceindustry; wholesale and retail of commodities; rental and commercial services; import and export 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 statementsfor the current period were approved by the 10th meeting of the 8th board of directors on April 21, 2023.
2. Scope of consolidation
"√ Applicable" "□ Not applicable"
(1) The 37 first-level subsidiaries consolidated in the current period are listed as follows:
| No. | Subsidiary name | Short name | Number of its subsidiaries | Shareholding percentage (%) | Voting interest (%) |
| 1 | Yongxiang Co., Ltd. | Yongxiang | 10 | 100 | 100 |
| 2 | Tongwei Solar (Hefei) Co., Ltd. | Hefei Solar | 10 | 100 | 100 |
| 3 | Tongwei New Energy Co., Ltd. | Tongwei New Energy | 110 | 100 | 100 |
| 4 | Tongwei Solar (Hainan) Co., Ltd. | Hainan Solar | 2 | 100 | 100 |
| 5 | Tongwei Solar (Singapore) PTE. Ltd. | Singapore Solar | 3 | 100 | 100 |
| 6 | Sichuan Tongwei Food Co., Ltd. | Sichuan Food | 11 | 80 | 80 |
| 7 | Tongwei Agriculture Development | Tongwei AD | 70 | 100 | 100 |
| Co., Ltd. | |||||
| 8 | Panzhihua Tongwei Feed Co., Ltd. | Panzhihua Tongwei | 100 | 100 | |
| 9 | Zaozhuang Tongwei Feed Co., Ltd. | Zaozhuang Feed | 100 | 100 | |
| 10 | Nanning Tongwei Feed Co., Ltd. | Nanning Feed | 100 | 100 | |
| 11 | Qianxi Tongwei Feed Co., Ltd. | Qianxi Feed | 100 | 100 | |
| 12 | Foshan Tongwei Feed Co., Ltd. | Foshan Feed | 100 | 100 | |
| 13 | Tongwei (Dafeng) Feed Co., Ltd. | Dafeng Feed | 51 | 51 | |
| 14 | Fuzhou Tongwei William Feed Co., Ltd. | Fuzhou Feed | 65 | 65 | |
| 15 | Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan Feed | 100 | 100 | |
| 16 | Sichuan Tongguang Construction Engineering Co., Ltd. | Tongguang Construction | 100 | 100 | |
| 17 | Qingyuan Tongwei Feed Co., Ltd. | Qingyuan Feed | 100 | 100 | |
| 18 | Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu Fishery-PV Technology | 100 | 100 | |
| 19 | Shenyang Tongwei Biotechnology Co., Ltd. | Shenyang Biotechnology | 100 | 100 | |
| 20 | Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang Solar | 100 | 100 | |
| 21 | Sichuan Chunyuan Ecological Farming Co., Ltd. | Chuanyuan Farming | 100 | 100 | |
| 22 | Zibo Tongwei Food Co., Ltd. | Zibo Food | 100 | 100 | |
| 23 | Tianmen Tongwei Aquaculture Technology Co., Ltd. | Tianmen Technology | 100 | 100 | |
| 24 | Sichuan Fusion Link Co., Ltd. | Fusion Link | 60 | 60 | |
| 25 | Chengdu Tongwei Aquaculture Technology Co.,Ltd. | Chengdu Technology | 100 | 100 | |
| 26 | Nanjing Tongwei Aquaculture Technology Co.,Ltd. | Nanjing Technology | 100 | 100 | |
| 27 | Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Foshan Technology | 100 | 100 | |
| 28 | Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu Seed | 100 | 100 | |
| 29 | Hefei Tongwei Biotechnology Co., Ltd. | Hefei Biotechnology | 100 | 100 | |
| 30 | Shaoxing Tongwei Biotechnology Co., Ltd. | Shaoxing Biotechnology | 100 | 100 | |
| 31 | Huizhou Tongwei Biotechnology Co., Ltd. | Huizhou Biotechnology | 100 | 100 | |
| 32 | Changde Tongwei Biotechnology Co., Ltd. | Changde Biotechnology | 100 | 100 | |
| 33 | Huanggang Tongwei Biotechnology Co., Ltd. | Huanggang Biotechnology | 100 | 100 | |
| 34 | Nanchang Tongwei Feed Co., Ltd. | Nanchang Feed | 100 | 100 | |
| 35 | Chengdu Tongwei Biotechnology Co., Ltd. | Chengdu Biotechnology | 100 | 100 | |
| 36 | Tongwei Industrial (Tibet) Co., Ltd. | Tibet Industrial | 100 | 100 | |
| 37 | Hengshui Tongwei Feed Co., Ltd. | Hengshui Feed | 100 | 100 | |
| Total | 216 |
(2) New first-level subsidiaries consolidated in the current period
| Subsidiary name | Reason for change |
| Tongwei Solar (Hainan) Co., Ltd. | New establishment through investment |
| Tongwei Solar (Singapore) PTE. Ltd. | New establishment through investment |
| Tongwei Agriculture Development Co., Ltd. | New establishment through investment |
| Hefei Tongwei Biotechnology Co., Ltd. | New establishment through investment |
| Shaoxing Tongwei Biotechnology Co., Ltd. | New establishment through investment |
| Huizhou Tongwei Biotechnology Co., Ltd. | New establishment through investment |
| Changde Tongwei Biotechnology Co., Ltd. | New establishment through investment |
| Huanggang Tongwei Biotechnology Co., Ltd. | New establishment through investment |
| Nanchang Tongwei Feed Co., Ltd. | New establishment through investment |
| Chengdu Tongwei Biotechnology Co., Ltd. | New establishment through investment |
(3) First-level subsidiaries canceled in the current period
| Subsidiary name | Reason for change |
| Tongwei Industrial (Tibet) Co., Ltd. | Revoke window |
| Hengshui Tongwei Feed Co., Ltd. | Revoke window |
(4) First-level subsidiaries merged through absorption or disposed in the current periodNone.
(5) First-level subsidiaries over which the control was moved to other subsidiaries of the Company inthe current period
1) Tongwei (Hainan) Aquatic Products Co., Ltd., a previous first-level subsidiary of the Companybecome a subsidiary of Sichuan Tongwei Food Co., Ltd. in the current period.
2) The following 54 companies over which the control was moved from the Company to TongweiAgriculture Development Co., Ltd.:
| Subsidiary name | Subsidiary name | Subsidiary name |
| Chongqing Tongwei Feed Co., Ltd. | Chongqing Changshou Tongwei Feed Co., Ltd. | Sichuan Willtest Technology Co., Ltd. |
| Shandong Tongwei Feed Co., Ltd. | Nantong Bada Feed Co., Ltd. | Wuxi Tongwei Biotechnology Co., Ltd. |
| Shashi Tongwei Feed Co., Ltd. | Zibo Tongwei Feed Co., Ltd. | Sichuan Tongwei Feed Co., Ltd. |
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Kunming Tongwei Feed Co., Ltd. | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. |
| Yuanjiang Tongwei Feed Co., Ltd. | Foshan Gaoming Tongwei Feed Co., Ltd. | Zhanjiang Haixianfeng Bio-tech Co., Ltd. |
| Changchun Tongwei Feed Co., Ltd. | Tianmen Tongwei Biotechnology Co., Ltd. | Nanchang Tongwei Biotechnology Co., Ltd. |
| He’nan Tongwei Feed Co., Ltd. | Binyang Tongwei Feed Co., Ltd. | Yangjiang Haiyi Biotechnology Co., Ltd. |
| Guangdong Tongwei Feed Co., Ltd. | Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | Nanning Tongwei Biotechnology Co., Ltd. |
| Xiamen Tongwei Feed Co., Ltd. | Tongwei Agricultural Finance Guarantee Co., Ltd. | Maoming Tongwei Biotechnology Co., Ltd. |
| Wuhan Tongwei Feed Co., Ltd. | Chengdu Tongwei Automation Equipment Co., Ltd. | Ningbo Tech-bank Feed Technology Co., Ltd. |
| Tianjin Tongwei Feed Co., Ltd. | Haerbin Tongwei Feed Co., Ltd. | Qingdao Qihao Biotechnology Co., Ltd. |
| Huaian Tongwei Feed Co., Ltd. | Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Ningbo Tech-bank Biotechnology Co., Ltd. |
| Jieyang Tongwei Feed Co., Ltd. | Hainan Haiyi Aquatic Seed Co., Ltd. | Yancheng Tech-bank Feed Technology Co., Ltd. |
| Chengdu Ronglai Tongwei Feed Co., Ltd. | Tongwei Holdings PTE. Ltd. | Nanning Aigefei Feed Co., Ltd. |
| Langfang Tongwei Feed Co., Ltd. | Chizhou Tongwei Feed Co., Ltd. | Bengbu Tech-bank Feed Technology Co., Ltd. |
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | Honghu Tongwei Feed Co., Ltd. | Hubei Tech-bank Feed Co., Ltd. |
| Yangzhou Tongwei Feed Co., Ltd. | Hainan Tongwei Biotechnology Co., Ltd. | Dongying Tech-bank Feed Technology Co., Ltd. |
| Lianyungang Tongwei Feed Co., | Hanshou Tongwei Feed Co., | Guangdong Tongwei Biotechnology |
| Ltd. | Ltd. | Co., Ltd. |
Please refer to “Change in Scope of Consolidation” and “Rights and Interests in Other Entities” fordetails on the changes in scope of consolidation and specific changes.
IV. Basis of preparation for financial statements
1. Basis of preparation
The Company's financial statements are prepared based on the assumption of going concern and actualtransactions and matters, in accordance with the Accounting Standards for Business Enterprises issued bythe Ministry of Finance and its supporting guidelines as well as explanations ("ASBE") and the disclosureprovisions in the Rules for 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. 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 estimatesNotes to the specific accounting policies and accounting estimates:
"√ Applicable" "□ Not applicable"
1. Statement of compliance
These financial statements and their notes prepared by the Company comply with the requirements setforth in Accounting Standards for Business Enterprises and accurately and completely reflect the financialcondition on December 31, 2022 and the operation results, cash flow and other necessary information ofthe Company for the year of 2022. Additionally, the Company’s financial statements in all major aspectscomply with the requirements for the disclosure of the financial statements and the notes in the Rules forthe Preparation and Submission of Information Disclosure by Companies That Offer Securities to thePublic (No. 15) — General Rules on the Financial Statements revised by CSRC in 2014.
2. Accounting periods
Each accounting year starts from the January 1st 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/year constitutean operating cycle which is used as a criterion for determining the liquidity of assets and liabilities.
4. Reporting currency
The reporting currency used by the Company is CNY.
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 other
combining entities on the acquisition date is called acquirer and other called acquiree(s). Acquisition date iswhen 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 consolidated financialstatements of the ultimate controller is used to calculate the initial cost of long-term equity investment. Anexcess of consideration paid (or the total par value of shares issued) for the combination over the carryingvalue of net assets obtained from the acquisition is allocated to capital reserve (share premium) first withany 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 for thepurpose of a business combination is carried into the initial recognition amount of such equity securities ordebt securities. Contingent consideration is measured at fair value on acquisition date, and whenrecognition criteria are met within 12 months after the acquisition date, it is treated as an adjustment to thecost of the combination with a corresponding effect on goodwill. Combination cost incurred to the acquirerand net identifiable assets obtained in the acquisition are measured at the fair value on the acquisition date.The excess of the consideration paid for the combination over the fair value of net identifiable assetsobtained from the acquiree is recognized as goodwill. The excess of fair value of net identifiable assetsobtained from the acquiree over the consideration paid for the combination is carried into current profit andloss if the excess remains after the fair value of measurement of all identifiable assets, liabilities andcontingent liabilities obtained from the acquiree, as well as the combination cost is re-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 are applied to determine whether these transactions form a package deal. Accounting for apackage deal is similar to the accounting for “long-term equity investments”; otherwise, accounting isperformed by separate financial statements 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 the acquireeheld by the acquirer before the acquisition date is remeasured at fair value at the acquisition date, with thedifference between fair value and carrying value carried into current investment income; where the equityheld 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 corresponding share
in the change arising from the acquiree’s re-measurement of net liabilities or net assets of defined benefitplan under equity method, the rest will be carried into investment income of the period in which theacquisition 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 flow until the disposal date have been appropriately included inthe consolidated profit statement and consolidated cash flow statement; disposal of subsidiaries during thecurrent period do not affect the opening balances in the consolidated balance sheet. For a new subsidiaryfrom a business combination under different control, the operation results and cash flow after the disposaldate have been appropriately included in the consolidated profit statement and consolidated cash flowstatement; and the opening balances and comparison numbers in consolidated financial statements are notadjusted. For a new subsidiary from a business combination under common control and the acquiree fromAbsorption combination, the operation results and cash flow from the start of the acquisition period to theacquisition date have been appropriately included in the consolidated profit statement and consolidatedcash flow statement, with the comparison numbers in the consolidated financial 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, necessaryadjustments shall be made to financial statements of such subsidiary such that these differences areeliminated. For a subsidiary obtained through business combination under different control, adjustments toits financial statements shall be based on the fair value of net identifiable assets on the acquisition 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 items ofshareholders' equity and net profit in the consolidated financial statements. The share of current net profitand loss that is attributed to minority interest is presented as the minority interest gain or loss in the netprofit item of the consolidated financial statements. If the loss borne by minority shareholders exceeds theamount they enjoy in the shareholders' equity at the beginning of the current period, the minority interest iswritten 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’sre-measurement of net liabilities or net assets of defined benefit plan, the rest will be carried intoinvestment income of current period). The retained interest shall be subsequently measured as per theAccounting Standards for Business Enterprises No. 2 - Long-term Equity Investments or AccountingStandards for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments or otherrelevant regulations. 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 apackage deal. These multiple transactions are generally under accounting treatment as a package deal if theterms, 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; ② unless
operated as a whole, they cannot reach a complete commercial result; ③ the occurrence of one transactiondepends on the occurrence of another one or more; or ④ a transaction is not economic when seenseparately 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” and “Losing control of a subsidiary due to partial disposal of equityinvestment or other reasons” depending on the specific circumstance. Where transactions for disposal ofequity investment in a subsidiary leading to losing control forms a package deal, each transaction is treatedas a transaction for disposal of equity investment in a subsidiary leading to losing control; however, thedifference between each disposal amount and the net assets that the Company would be entitled regardingthe disposed investment, before the control is lost, is recognized as other comprehensive income in theconsolidated financial statements; and upon the control is lost, all these differences are carried into profitand loss of current 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 of theCompany in the output of the joint operation is recognized; the revenue generated from the joint operation'ssale of its products by the Company’s share is recognized; expenses incurred separately by the Company aswell 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 forms abusiness, hereinafter the same) into or purchases assets from the joint operation, before such assets are soldto a third party by the joint operation, the Company only recognizes the share of profit and loss generatedfrom such transaction that is attributable to other parties in the joint operation. Where such assets sufferfrom 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 cash and cash equivalents
Cash equivalents are defined as short-term investments (not greater than three months between thepurchase date and the maturity date) that have strong liquidity, are easy to be converted into cashes and areunlikely to subject to value change risk.
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:
A 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 at thespot rate on occurrence date; foreign currency non-monetary items measured at fair value are converted atthe spot rate on the fair value determination date. Exchange differences are carried into the purchase andconstruction costs of fixed assets if they are relating to purchase and construction of such fixed assets andbefore 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 flow and cash flow 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 and afinancial 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 flow;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 flow 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 costs 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 which thesignificant 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) Assets measured at amortized cost
Financial assets measured at motorized cost are 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 is derecognized,reclassified, through the amortization process or in order to recognize impairment gains or losses.
2) Investments measured at fair value through other comprehensive income
Financial 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) Held for trading equity investments measured at fair value through other comprehensive income
Financial 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 comprehensive
income and may not be reclassified to current profit and loss subsequently, except for dividend (except forrecovered 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) 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 (except forrelating 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 flow receivable and cash flow that are expected to becollected, with default risk as the weight, by considering reasonable and supportable information, includingpast events, current conditions, and forecasts.
On each balance sheet date, the Company measures the expected credit loss of financial instruments ateach stage. Financial instruments in relation to which credit risk has not been increased significantly sinceinitial recognition are at the first stage, for which, the Company measures a 12-month expected credit lossas 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 Company measuresa 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 calculates theexpected credit loss for each group. The basis for determining groups are as follows:
| Group category | Group type | Basis | Provision method |
| Group 1 | Notes or letters of credit receivable (excluding commercial acceptance bills), performance bonds receivable during the settlement period; use of petty cash by construction projects that will be reimbursed and offset by project expenditure, and other receivables for which sufficient evidence showing no risk is available | Payment type | No provision |
| 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 after
the balance sheet date without risk(such as government subsidies receivable); the provision for bad debts isestablished as 5.00% of the balance receivable if the payments are expected to be recovered after 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 according toall reasonable and grounded information including forward looking information.
| Age | Provision (%) |
| Within 1 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 profit andloss. Gains or losses from debt investments measured at fair value through other comprehensive income arerecognized into current profit and loss with the other comprehensive income adjusted accordingly.
(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 flow has expired; or ② if it has been transferred and the Companyhas transferred substantially all the risks and rewards of ownership of the financial asset to the recipient; or
③ if it has been transferred and the Company has surrendered control over the financial asset although itneither transferred nor retained substantially all the risks and rewards of ownership of the financial 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 change in fairvalue previously recognized into other comprehensive income is recognized into current profit and loss.
Where a transfer of partial financial asset qualifies for derecognition, the carrying value of the asset issplit 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) Liabilities measured at fair value through current profit and loss
Financial liabilities measured at fair value through profit and loss (FVTPL) include financial liabilitiesheld for trading (including derivative instruments that belong to financial liabilities) and financial liabilitiesdesignated as financial liabilities measured at fair value through current profit. Financial liabilitiesmeasured at fair value through current profit and loss are subsequently measured at fair value. A gain orloss arising from any change in the fair value of a financial liability of this category is carried into currentprofit 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 obligation for a financial liability has 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, and thenew 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 party, 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 liability inan 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 by avaluation 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 notes receivable"√ 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 for expectedcredit 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’sacceptance 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, scaffolding forconstruction projects), goods on consignment, goods in transit, materials for processing on consignment,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 inventory
allowanceAt the end of a period, an inventory is measured at the lower of cost and net realizable value. Excess of costover net realizable value is recognized into current profit and loss, and the provision for obsolete inventoryallowance is established. For inventories related to a product series produced and sold in the same area andfor similar purposes or final applications, and it is difficult to distinguish them from other items related tothe product series, the provisions are established for these inventories as a whole; for inventories large inquantities 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 than thepassage of time. Contract assets and contract liabilities under the same contract are presented after on anetting 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 its carrying value isexpected to be recovered via future cash flow from the sale (including non-monetary exchange withcommercial substance) of the asset or disposal group rather than future cash flow 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 subject toterms 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 its 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 held-for-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 held forsale shall continue to be recognized.
A non-current asset or disposal group no longer classified as held for sale because it no longer meets
the 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 for anydepreciation, amortization or impairment that would have been recognized had the asset (or disposal group)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-termequity 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 includes thefair value of assets paid, liabilities incurred or assumed, and equity securities issued on the acquisition dateby the acquirer for obtaining the control of the acquiree; intermediary expenses including audit, legalservice 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 recognition ofthese 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 accounting of long-term share 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 accounting of long-term share investments
Under the equity method of accounting, when the initial investment cost is greater than the Company'sshare of the fair value of net identifiable assets of the investee upon investment, the initial investment costof the long-term equity investment is not adjusted; when the initial investment cost is smaller than the
Company's share of the fair value of the net identifiable assets of the investee upon investment, suchdifference shall be carried into current profit/loss and the cost of the long-term equity investment isadjusted.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 of theinvestee, 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 and lossesresulting from transactions between the Company and its associate and joint venture are eliminated to theextent of the Company's interest in the associate or joint venture, and then the investment profit or loss isrecognized. However, unrealized losses between the Company and the investee are not eliminated to theextent 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 owner's equity of theinvestee other than net profit and loss, other comprehensive income and profit distribution, is recorded intoshareholders’ equity with the carrying value of the long-term equity investment adjusted accordingly. Uponsubsequent disposal of the long-term equity investment, the amount recorded into shareholders’ equity shallbe 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 in theinvestee is written down to zero. If the Company still has to assume additional obligations, such expectedobligations are recognized as expected liabilities and carried into current investment loss. When theinvestee realizes any net profit in a subsequent period, the Company's share of net loss is eliminated and itsshare of net profit is then reversed (if possible).
3) Purchase of minority shareholding
For preparation of consolidated financial statements, the Company's capital reserve is written down tothe 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 (or combination date), and if the capital reserve is insufficient, the retained earnings areadjusted 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 of thenet 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 loss, refer to relevant accountingpolicies described 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-termequity investment or other financial liability at its carrying value, and subject to subsequent measurementaccording to the aforesaid accounting policies for long-term equity investments or financial assets. Aretroactive adjustment is made under relevant provisions if the accounting treatment for the remaininginterest 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 returns byparticipating in related activities of the investee and able to influence the amount of return by exercising thepower. 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 by allsuch 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 company bonds convertible in the current period and warrantsexercisable in the current period, that the investor and other parties hold in the investee, should beconsidered.
(4) Impairment test and provision for impairment
The Company assesses at each balance sheet date whether there is an indication that a long-term
equity investments 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 and loss.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 methodAn investment property is real estate property that has been purchased with the intention of earning areturn on the investment, either through rental income, the future resale of the property or both. Investmentproperties include leased land use rights, land use rights held and prepared for transfer after they areappreciated, and leased building.
1) Initial measurement
An investment property is initially measured at cost if rent income or added value that are 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; its carrying value isadjusted 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 otherproperties.
23. Fixed assets
(1). Recognition criteria
"√ Applicable" "□ Not applicable"
Fixed assets refer to property, plant, and equipment with a useful life of over one year, held for use inthe production or supply of goods or services, rental 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 | 4—5 | 5% | 23.75—19% |
| method | ||||
| 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 its 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 its 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"
If payment for a fixed asset is deferred beyond normal credit terms so that it is a financing activity, itscost is the equivalent cash price. The difference between this amount and the total payments is recognizedinto current profit and loss over the period of credit unless it is capitalized.
(4) Provision for impairment of fixed assets
A fixed asset is measured at the lower of its carrying value and its recoverable amount on the balancesheet date.
The Company assesses at each balance sheet date whether there is an indication that a long-termequity investments may be impaired by assessing whether the following conditions are met:
1) During the period, an asset's market value has declined significantly more than would be expectedas a result of the passage of time or normal use.
2) Significant negative changes (have occurred or are expected) in the technological, market,economic or legal environment where the Company operates, and the market where an asset is located.
3) Market interest rates or other market rates of return on investments have increased (which impactthe discount rate used in calculating an asset’s expected future cash flow and lead to a significant decline ofthe asset's recoverable amount).
4) Evidence is available of obsolescence or physical damage of an asset.
5) Assets have been or will be idle, discontinued or the assets will be disposed before the previouslyexpected date.
6) Evidence is available from internal reporting that indicates the economic performance of an asset is,or will be, worse than expected; for example, the net cash flow created or operating profit (loss) achievedby the asset is much lower (or higher) than expected amount.
7) Other signals that indicate the possible impairment of assets.
If any such indication exists, Company shall estimate the recoverable amount of the asset. If carryingvalue of the asset is greater than its recoverable amount, an impairment provision equaling to the differenceof the two shall be established.
Once recognized, the impairment loss will not be reversed in subsequent periods.
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 a 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 its carrying value and its recoverable amount onthe 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 circumstances
exist. 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 next 3years;
2) The construction has been outdated in performance and technology and the economic benefitsbrought to the Company is largely uncertain;
3) Other circumstance that indicate 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: ①expenditures are incurred, ② borrowing costs are incurred, and ③ the activities necessary to prepare theasset for its intended use or sale are in progress; and ends when the fixed asset reaches its intended use. Thecapitalization should be suspended during periods in which acquisition or construction of the fixed asset isinterrupted for over consecutive three months; in this case, the borrowing costs are recognized as currentexpense.
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 qualifying asset,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 cos 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 use orsale, and recognized as expense and carried into current profit and loss if it incurs after the asset reaches itsintended use or sale.
26. Biological assets
"√ Applicable" "□ Not applicable"
(1) Classification of productive biological assets
Productive biological assets of the Company include boar, drake, male fish (and male pawn) andothers.
(2) Initial measurement of productive biological assets
1) 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
of the asset.
2) Cost for constructing or generating a productive biological asset includes the feed cost, labor cost,indirect expense that should be amortized and other necessary expenditures before the asset reaches itsintended 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 biological assetare 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 its carrying value and its recoverable amounton 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) amount of the initial measurement of the lease liability;
2) payments made at or before the commencement date of the lease, less any lease incentives received(if any);
3) initial direct costs incurred by the Company;
4) an estimate of costs to be incurred when the Company removes the asset, restore the place wherethe asset is installed or restore 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 identification ofwhether 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 the Companyowns 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 its carrying value and its recoverable amount on thebalance sheet date.
(2). Accounting policies for internal R&D cost
"√ 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) the intangible asset will generate probable future economic benefits, including the Company candemonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or,if it is used internally, the usefulness of the intangible asset;
4) availability of adequate technical, financial and other resources to complete the development and touse or sell the intangible asset;
5) expenditure attributable to the intangible asset during its development stage can be reliablymeasured.
30. Impairment of long-term assets
"√ Applicable" "□ Not applicable"
The Company assesses at 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 book value of an asset is greater than its recoverable amount, animpairment 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 flow 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 but anactive 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 flow 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 unit of assets that can generatecash inflows.In impairment test, the carrying value of goodwill which is separately listed in the financial statementsis shared among the CGU or the group of CGUs which are expected to be benefited from synergies ofbusiness combination. If the impairment test indicates that book value of a CGU or a group of CGUs,which takes a share of the goodwill, is greater than its recoverable amount, the corresponding impairmentloss is recognized. An impairment loss amount calculated for a CGU or a group of CGUs should beallocated to the CGU or the group's individual assets - first of all to goodwill allocated to the CGU or thegroup, and then to the other assets of the CGU on a pro rata basis according to the book amount of eachasset in the CGU or the group.
If 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 period, 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 which ithas received consideration from the customer. If a customer pays consideration or the Company has a rightto an amount of consideration that is unconditional before the Company transfers a good or service to thecustomer, the Company shall present the payment as a contract liability when the payment is made or thepayment is due (whichever is earlier). Contract assets and contract liabilities under the same contract arepresented after on a netting basis; and contract assets and contract liabilities under different contracts arepresented separately.
33. Employee benefits
(1). Accounting of short-term employee benefits
"√ Applicable" "□ Not applicable"
Short-term employee benefits include salaries, bonuses, allowances and subsidies, benefit expense,medical insurance costs, maternity insurance costs, work injury insurance costs, house provident fundexpenses, labor union expense and education expense, and non-monetary benefits. The Companyrecognizes the short-term employee benefits that are 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 of 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.The defined benefit plan 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 gain orloss from actuarial valuation recognized into other comprehensive income. Service cost and net interest onthe net defined benefit liability or asset.
(3). Accounting of 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 not tobe fully settled within 12 months after the end of the annual reporting period are treated as other long-termemployee 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 sad termination benefits.Salaries and social insurance premiums to be paid by Group for employees subject to internal retirementplan from the date when they stop rendering services to the date when they reach legal retirement ages, arerecognized as liabilities and recorded into current profit and loss (termination benefits), if the criteria forrecognition of expected liabilities are met.
(4). Accounting of 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 lease, the Company recognizes a right-of-use asset and a lease liability,short-term leases and low-value leases that should be subject to the simplified approach are exempted.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 lease, the Company uses a fixed periodical interest rate to calculatethe interest on the lease liability over each period in the lease term and recognizes it into current profit andloss or relevant costs of asset. After the commencement date of lease, the Company will re-measure thelease liability at the present value of changed lease payments in the event of any change in-substance fixedpayments change, in the amounts expected to be payable under residual value guarantees, the index or rateused for determining the lease payments, the assessment result or actual exercise of purchase 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 by athird party or other parties or when the Company basically ascertains that the compensation can be received,the compensation is recognized as an asset to the extent that the amount is not higher than the carryingvalue of the recognized liability.
On the balance sheet date, the Company reviews the carrying value of an estimated liability, and adjustthe carrying value at the current best estimate if conclusive evidence indicates that the carrying valuecannot truly reflect the current best estimate.
Given that the Company has planned to expand its module business, in order to provide assuredafter-sales service for module customers, the Company provides module quality guarantee deposit at 1% ofmodule sales revenue in accordance with the relevant provisions of Accounting Standard for Enterprises No.13 - Contingencies, and with reference to practices of major peer companies. These deposits are recognizedas an estimated liability when the aforesaid conditions for recognition of estimated liabilities are met.
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) principles for recognition of revenues
Revenue is the total inflow of economic benefits formed in the daily operating activities of theCompany, which will lead to the increase of owner's equity and is not related to the capital invested byowners.
The Company recognizes a revenue when it satisfies the performance obligation in the contract, i.e.,the customer obtains control of the good or service.
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 good or service 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 is 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 good or service. The difference between such amount and the contract consideration isamortized over the contract term with effective interest method. The significant financing component is notconsidered if on the start date of the contract Company expects that the period from the customer obtainscontrol over the good or service 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, itis satisfied at a point of time:
1) customer receives and consumes the economic benefits from the Company's satisfaction of theperformance obligation as it is satisfied by the Company;
2) customer is able to control work-in-process created by the Company in satisfying the performanceobligation;
3) goods created by the Company during the obligation performance does not have an alternative use
and the Company has an enforceable 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 good or service is transferred to the customer. A customer obtains control of a good orservice if the following indicators are met:
1) the Company presents right to payment for the good or service;
2) the Company has transferred physical possession of the good or service to the customer;
3) the Company has transferred to the customer the significant risks and rewards of ownership of thegood;
4) customer has accepted the good 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) Recognition methods
1) Revenue from sale of goods
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 International Rulesfor the Interpretation of Trade Term and given revenue recognition principles and the Civil Code, a revenueis 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.
2) 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 percent of costs incurred to the budget costs. Revenue should be recognized only to theextent of costs incurred are expected to be compensated. Otherwise, the costs incurred are carried intocurrent profit and loss.
3) 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 is 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 performance obligations
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 of obtain a contract is 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). Thecosts 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 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 its carrying value on the reversal date should the provisionwas not established.
40. Government grants
"√ Applicable" "□ Not applicable"
(1) Judgment 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) Judgment 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 compensate relevantexpenses or losses to be incurred; and they are carried into current profit and loss or to write down relevantcosts 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 has incurred.
3) When should grants are recognized
A government grant is recognized when the Company complies with the conditions attaching to it andthe 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 be
obtained 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 the current and prior periods aremeasured are measured at the amount expected to be paid to (recovered from) taxation authorities; deferredtax assets and deferred tax liabilities are measured on the balance sheet date at tax rates applicable to theperiods during which such assets are expected to be recovered or such liabilities are expected to bedischarged.The carrying values of deferred tax assets and deferred tax liabilities are reviewed on the balance sheetdate. Current and deferred tax is recognized as income or expense and included in profit or loss for theperiod, except to the extent that the tax arises from transactions or events that are recognized directly inowner's 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 whether acontract is a lease or contains a lease on the commencement date of the contract.
(1) Company as lessee
1) Initial measurement
On the commencement date of a lease, the Company recognizes a right-of-use asset for the asset that itcan use over the lease period and a lease liability for the present value of lease payments that it has notmaid, 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:
① the amount of the initial measurement of the lease liability;
② 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, restore the place wherethe asset is installed or restore 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:
① fixed payments (including in-substance fixed payments), less any lease incentives receivable (ifany);
② variable lease payments that depend on an index or a rate;
③ the purchase exercise price of a purchase option that the Company is reasonably certain toexercise;
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.
2) Subsequent measurement
The depreciation of right-of-use assets are established under Accounting Standard for BusinessEnterprises No. 4 - Fixed Assets. Depreciation of a lease asset is provided over remaining useful life of aright-of-use asset if the Company is able to reasonably determine that it will obtain the ownership of theasset upon the lease term expires. Otherwise, the depreciation is provided over the shorter of the remaininguseful 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 is included into currentprofit and loss or relevant costs of asset when incurred.
After the commencement date of lease, the Company will re-measure the lease liability at the presentvalue of changed lease payments in the event of any change in-substance fixed payments change, in theamounts expected to be payable under residual value guarantees, the index or rate used for determining thelease payments, the assessment result or actual exercise of purchase option, renewal option or terminationoption, and the carrying value of the right-of-use asset is adjusted accordingly. The remaining amount isincluded into current profit and loss if the lease liability needs to be further reduced after the carrying valueof the right-of-use asset has been written down to zero.
3) 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, when new,is not over 50,000.00 yuan.
4) 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 date ofa lease modification is he 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:
① the modification increases the scope of the lease or extends the lease term by adding the right touse one or more underlying assets; and
② 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-determine the lease term, and re-measure 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 Company adjuststhe carrying value of the right-of-use asset to reflect the partial or whole termination of the lease, andinclude 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 there-measurement of the lease liability.
(2) Company as lessor
A lease is classified into either a financial lease or an operating lease on the commencement of thedate depending 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.
1) Operating lease
The 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 lease areincluded into current profit and loss when incurred.
2) Financial lease
The Company recognizes the lease payments and de-recognizes the lease asset on commencement dateof the lease. Lease payments receivable are initially measured at net investment in the lease (the sum of theun-guaranteed 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 interestincome over the lease term is recognized at the fixed periodical interest rate. The variable lease payments
not included into the measurement of the net investment in a lease is included into current profit and losswhen incurred.
(3) Leaseback
1) Company as seller and lessee
The Company determines whether the transfer of the asset in a leaseback qualifies as a sale.
① 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 Standard forBusiness Enterprises No. 22 - Recognition and Measurement of Financial Instruments (2017).
② 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;
A. Any below-market terms shall be accounted for as a prepayment of lease payments; and
B. Any above-market terms shall be accounted for as additional financing provided by the buyer-lessorto the seller-lessee. At the same time, the lesser adjusts its sale gain or loss at fair value and the lessoradjusts the rental income at market rates.
The Company makes the adjustment by one of the following amounts that is easier to be determined:
A. difference between the fair value of the consideration for the sale of the asset and the fair value ofthe asset;
B. difference between the present value of the payments for the lease and the present value of the rentat market rates.
2) 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 the “Interpretation No. 15 of Accounting Standard for Business Enterprises” (Cai Kuai [2021] No. 35) (“Interpretation No. 15”) on December 31, 2021, which clarifies the accounting treatment of products or by-products produced by enterprises for sales before the fixed assets reach the intended usable state or during the research and development process. According to relevant provisions of Interpretation No. 15, the Company implemented the relevant provisions of Interpretation No. 15 and make retrospective adjustments from January 1, 2022. | 28th meeting of the 7th board of directors, and 27th meeting of the 7th supervisory committee | Refer to other notes for details |
| On December 13, 2022, the Ministry of Finance and the Ministry of Emergency Management jointly issued the Management Measures for Workplace Safety Costs (Cai Zi [2022] No. 136), which expanded the scope of application and revised some of the standards for providing safety costs for companies. The Company implemented the latest requirement on provision and use of workplace safety costs from December 2022. | 7th meeting of the 8th board of directors, and 6th meeting of the 8th supervisory committee | The newly revised Management Measures for Workplace Safety Costs by the Ministry of Finance and the Ministry of Emergency Management shall be implemented from the date of issuance. This requires a prospective application without the need for |
Other notesPrior to the change in accounting policies, for the sale of products or by-products produced and soldbefore the fixed assets reached their planned usable state, the Company recognized these fixed assets as"construction in progress"; after the change, the sale revenue and sale cost will be separately recognized as"operating revenue" and "operating cost". Prior to the change in accounting policies, the Companyrecognized costs of sale of products or by-products from research and development process as "R&D cost";after the change, such costs will be recognized as "operating cost".
The said changes in accounting policies have no impact on the comparative financial statements of theparent company for previous periods. The retrospective adjustments of comparative consolidated financialstatements are as follows:
(1) Consolidated balance sheet
Unit: Yuan Currency: CNY
retrospective adjustments,and will not affect theCompany's financial statusand operating results inprevious years.
Item
| Item | Balance on December 31, 2021 | ||
| Before adjustment | After adjustment | Adjustment | |
| Fixed assets | 37,299,171,038.78 | 36,958,671,998.09 | -340,499,040.69 |
| Construction in progress | 10,636,400,885.06 | 10,610,819,753.03 | -25,581,132.03 |
| Deferred tax assets | 600,832,119.58 | 612,117,399.13 | 11,285,279.55 |
| Undistributed profit | 15,544,604,417.32 | 15,225,053,765.81 | -319,550,651.51 |
| Minority interest | 4,154,029,179.80 | 4,118,784,938.14 | -35,244,241.66 |
(2) Consolidated profit statement
Unit: Yuan Currency: CNY
| Item | 2021 amount | ||
| Before adjustment | After adjustment | Adjustment | |
| Operating revenue | 63,491,070,520.12 | 64,829,996,083.91 | 1,338,925,563.79 |
| Operating cost | 45,918,101,338.17 | 48,382,829,594.08 | 2,464,728,255.91 |
| Sales expense | 918,970,450.73 | 919,009,792.93 | 39,342.20 |
| Management expense | 2,947,649,906.71 | 2,951,233,971.46 | 3,584,064.75 |
| R&D cost | 2,035,847,045.43 | 1,025,715,488.68 | -1,010,131,556.75 |
| Income tax expense | 1,647,522,380.67 | 1,648,944,454.00 | 1,422,073.33 |
| Net profit attributable to owners of the parent | 8,207,920,822.18 | 8,109,125,091.40 | -98,795,730.78 |
| Gain and loss of minatory interest | 534,298,848.66 | 512,377,963.79 | -21,920,884.87 |
（3) Consolidated cash flow statement
Unit: Yuan Currency: CNY
| Item | 2021 amount | ||
| Before adjustment | After adjustment | Adjustment | |
| Cash received from sales of goods and rendering of services | 56,533,317,822.08 | 57,872,243,385.87 | 1,338,925,563.79 |
| Cash paid for purchase of goods and services | 44,658,781,109.98 | 46,141,587,117.16 | 1,482,806,007.18 |
| Cash paid for acquisition or construction of fixed assets, intangible assets and other long-term assets | 13,975,125,087.15 | 13,831,244,643.76 | -143,880,443.39 |
No other changes in significant accounting policies occurred in the reporting period except for the saidchange.
(2). Changes in significant accounting estimates
"√Applicable" "□Not applicable"
| Changes in accounting estimates and reasons for change | Approval procedures | Starting time of application | Notes (names and amounts significantly impacted) |
| Due to updated photovoltaic industry with accelerated technological upgrading, the current depreciation period applied to machinery and equipment used by the Company no longer properly reflects the actual usage status of fixed assets. In order to more fairly reflect the financial status and operating results, and improve the quality of accounting information, out of prudence, the Company has adjusted the depreciation period applied to machinery and equipment in the solar cell and related processes from 10 years to 6 years, effective from January 1, 2022. | 28th meeting of the 7th board of directors, and 27th meeting of the 7th supervisory committee | January 1, 2022 | For this change in accounting estimate, the prospective application will be used. This change will not have any impact on the financial position and operating results of the Company for prior years, and therefore, there is no need for retrospective adjustments. |
| Against the backdrop of global carbon neutrality, leveraging on the leading advantages in high-purity polysilicon and solar cell areas, as well as the accumulated technology and market foundation in solar modules over the years, the Company is aligned with national dual-carbon targets and industry development trends, planning to make appropriate expansions in the module area, so as to further enhance its overall competitiveness. Given that the Company has planned to expand its module business, in order to provide assured after-sales service for module customers, the Company provides module quality guarantee deposit at 1% of module sales revenue in accordance with the relevant provisions of Accounting Standard for Business Enterprises No. 13 - Contingencies, and with reference to practices of major peer companies. | 4th meeting of the 8th board of directors, and 3th meeting of the 8th supervisory committee | September 22, 2022 | For this change in accounting estimate, the prospective application will be used. This change will not have any impact on the financial position and operating results of the Company for prior years and for prior months, and therefore, there is no need for retrospective adjustments. |
(3). Adjustments of financial statements at the beginning of the year for which new accounting
standards or interpretations are applied for the first time in 2022"□ Applicable" "√ Not applicable"
45. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Major tax types and tax rates
Major tax types and tax rates"√ Applicable" "□ Not applicable"
| Tax type | Tax basis | Tax rate |
| VAT | Sales amount | 0%, 3%-5%, 6%, 9%, 13% |
| 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 x 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 an immediate refund of70% VAT exempted from value added tax under the Cai Shui [2015] No. 78 document from the Ministry ofFinance and the State Taxation Administration.
Sale of agricultural products directly produced by some subsidiaries in livestock farming businessincluding Nanjing Tongwei Aquaculture Technology Co., Ltd. and Hainan Haiyi Aquatic Seed Co., Ltd. isexempt from value-added tax under the Temporary Regulations on VAT of the People’s Republic of China(No. 538 order from the State Council) and the Implementation Rules on the Temporary Regulations onVAT of the People's Republic of China (No. 50 order from the Ministry of Finance and the State TaxationAdministration).
The Company's transfer of the right of use of land to agricultural producers for the purpose ofagricultural production is exempted 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) Consolidated tax payment for cross-region operations
The collection provisions for corporate income tax in respect of the parent company (including thehead office administration and all branches), Tongwei Agriculture Development Co., Ltd. and its branchesare “untied calculations, tiered administration, local prepayments, consolidated clearing, and treasuryadjustment” in accordance with the Corporate Income Tax Law and the Procedures for Collection ofConsolidated Corporate Income Tax for Cross-region Operations ((2012) No. 57 Announcement of theState Taxation Administration).
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) jointlyreleased by the Ministry of Finance, the State Taxation Administration and the National Development andReform Commission provided for that enterprises in encouraged industries established in west China areentitled to income tax rate of 15% from January 1, 2021 to December 31, 2030. Tongwei AgriculturalFinance Guarantee Co., Ltd., Sichuan Tongwei Sanlian Aquatic Products Co., Ltd., Sichuan YongxiangPolysilicon Co., Ltd., Sichuan Yongxiang New Materials Co., Ltd., Sichuan Yongxiang New Energy Co.,Ltd., Sichuan Yongxiang Silicon Materials Co., Ltd., Sichuan Yongxiang PV Technology Co., Ltd., InnerMongolia Tongwei high-purity polysilicon Company Co., Ltd., Yunnan Tongwei high-purity polysiliconCompany 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 tothis 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).
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).
Chengdu Tongwei Animal Nutrition Technology Co., Ltd. was approved as a high-tech enterprise in2022 (No. GR202251001505).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 Enterprise 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 Haiyi Aquatic Seed Co., Ltd.,Zhanjiang Haiyi Aquatic Seed Co., Ltd., Tongwei Aquaculture-Photovoltaic Integration (Rudong) Co., Ltd.Chengdu Tongwei Aquatic Seed Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd.,and Nanjing Tongwei Aquaculture Technology Co., Ltd. are entitled to this tax 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 Heping Tongwei Co., Ltd. is entitled: a 10-year preference period for its feed businessfrom the start of the production and operation, exemption from income tax for two years and 50% incometax for four years from the start of the profitability period. The tax preferences to which Qianjiang TongweiCo., Ltd. is entitled: a 15-year preference period for its feed business from the start of the production andoperation during which the tax rate is 10%, exemption from income tax for four years and 50% income taxfor nine years from the start of the profitability period.
For Tongwei Feed Mill Bangladesh Ltd., the interest income on bank deposits out of its total profit issubject to an income tax rate of 35% (10% is withheld by banks), net income from non-operating activitiesis subject to an income tax rate of 35%. The profit net of interest income and non-operating income issubject to multi-level income tax rate: 0% for the amount less than (including) 1 million BDT; 5% for theamount between 1 and 2 million BDT (including 2 million); 10% for the amount between 2 million and 3million BDT (including 3 million); and 15% for the amount over 3 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 Catalog ofEnterprise Income Tax for Public Infrastructure Projects (Cai Shui 2008 [46]), the income from investmentand operation of enterprises engaged in public infrastructure projects supported by the State are exemptfrom enterprise income tax from the first to the third year starting from the tax year in which the firstproduction and operation income of the project is obtained, and the enterprise income tax is halved fromthe 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 | 152,905.98 | 109,314.50 |
| Cash at bank | 36,810,223,406.34 | 2,894,022,360.61 |
| Other cash at bank and on hand | 31,195,817.69 | 107,799,207.27 |
| Total | 36,841,572,130.01 | 3,001,930,882.38 |
| Including: total deposits overseas | 104,247,603.68 | 205,052,603.96 |
Other notesFor details on cash at bank and on hand that are restricted at the end of the period, refer to “Assetswith restricted ownership or use right”.The cash at bank and on hand of 1,622,156,249.99 yuan, which are not restricted in their use and havenot been used as cash and cash equivalents, are fixed-term deposits held by the Company that are intendedto be held until maturity and accrue interest at the fixed deposit rate. Such deposits are not classified ascash and cash equivalents because the purpose of the Company holding such deposits is not to meetshort-term liquidity needs for external payments, but rather to earn interest income.
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 | 4,298,524,475.70 | 10,617,668.58 |
| Including: | ||
| Debt investments | 4,278,667,572.63 | |
| Derivative financial assets | 19,856,903.07 | 10,617,668.58 |
| Total | 4,298,524,475.70 | 10,617,668.58 |
Other notes:
"√ Applicable" "□ Not applicable"Note 1: Debt instrument investments refer to bank structured deposits and wealth management productspurchased by the Company.Note 2: The derivative financial assets refer to paper gains resulting from the difference between the lockedexchange rate in the undelivered forward foreign exchange contract and the central parity rate at the end ofthe period.
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 | |
| Letters of credit | 2,450,913,663.89 | 1,376,925,682.02 |
| Total | 2,450,913,663.89 | 1,576,925,682.02 |
(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"
(4). Notes that have been converted by the Company to other receivables due to non-performance ofissuers 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 model forexpected credit loss:
"□ Applicable" "√ Not applicable"
(6). Provision for bad debts
"□ Applicable" "√ Not applicable"
(7). Notes receivable written off in the current period
"□ Applicable" "√ Not applicable"
Other notes"□ Applicable" "√ Not applicable"
5. Accounts receivable
(1). Disclosure by age
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Age | Closing book balance |
| Within 1 year | |
| In which: Within 1 year | |
| Within 1 year | 3,791,028,295.86 |
| Within 1 year | 3,791,028,295.86 |
| 1- 2 years | 402,092,947.42 |
| 2- 3 years | 401,470,215.73 |
| Over 3 years | 210,301,102.61 |
| Total | 4,804,892,561.62 |
(2). Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Carrying value | Book balance | Provision for bad debts | Carrying value | |||||
| amount | Percent (%) | amount | Provision (%) | amount | Percent (%) | amount | Provision (%) | |||
| Creation of provision for a single bad debt | 67,797,723.02 | 1.41 | 2,048,007.32 | 3.02 | 65,749,715.70 | 103,540,864.18 | 3.27 | 1,035,408.64 | 1.00 | 102,505,455.54 |
| Creation of provision for a group of bad debts | 4,737,094,838.60 | 98.59 | 301,481,924.16 | 6.36 | 4,435,612,914.44 | 3,064,741,941.20 | 96.73 | 251,720,247.66 | 8.21 | 2,813,021,693.54 |
| Including: | ||||||||||
| Group 2 | 1,416,738,083.83 | 29.49 | 65,681,707.01 | 4.64 | 1,351,056,376.82 | 1,435,401,418.99 | 45.30 | 68,054,324.68 | 4.74 | 1,367,347,094.31 |
| Group 3 | 17,350.00 | 0.00 | 17,350.00 | |||||||
| Group 4 | 3,320,356,754.77 | 69.10 | 235,800,217.15 | 7.10 | 3,084,556,537.62 | 1,629,323,172.21 | 51.43 | 183,665,922.98 | 11.27 | 1,445,657,249.23 |
| Total | 4,804,892,561.62 | / | 303,529,931.48 | / | 4,501,362,630.14 | 3,168,282,805.38 | / | 252,755,656.30 | / | 2,915,527,149.08 |
Creation of provision for a single bad debt:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| name | Closing balance | |||
| Book balance | Provision for bad debts | Provision (%) | Provision reason | |
| Price of feed delivered to overseas customers secured by banks | 66,002,392.49 | 660,023.92 | 1.00 | Note 1 |
| Other accounts receivable with individual provision for bad debts | 1,795,330.53 | 1,387,983.40 | 77.31 | |
| Total | 67,797,723.02 | 2,048,007.32 | 3.02 | / |
Note on creation of individual provision for bad debts:
"√ Applicable" "□ Not applicable"Note 1: Price of feed delivered to overseas customers are fully secured by local banks. The security bankswill make payments unconditionally when the payments are due, which are at a low risk, the provisionpercentage is set as 1% accordingly.
Creation of provision for a group of bad debts:
"√Applicable" "□Not applicable"Creation of provision for groups: Group 2
Unit: Yuan Currency: CNY
| name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Power supply companies (desulfurization electricity price) | 188,857,569.41 | ||
| Electricity price subsidies | 1,227,880,514.42 | 65,681,707.01 | 5.35 |
| Total | 1,416,738,083.83 | 65,681,707.01 | 4.64 |
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 subsides that have not been included into the catalog are presented in contract assets.
Creation of provision for groups: Group 4
Unit: Yuan Currency: CNY
| name | Closing balance | ||
| Accounts receivable | Provision for bad debts | Provision (%) | |
| Within 1 year | 3,129,134,642.32 | 156,456,732.12 | 5.00 |
| 1- 2 years | 107,530,228.27 | 10,753,022.83 | 10.00 |
| 2- 3 years | 30,202,843.97 | 15,101,421.99 | 50.00 |
| Over 3 years | 53,489,040.21 | 53,489,040.21 | 100.00 |
| Total | 3,320,356,754.77 | 235,800,217.15 | 7.10 |
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 forexpected credit loss:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Change in current period | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Creation for a single debt | 1,035,408.64 | 1,012,598.68 | 2,048,007.32 | |||
| Risk group | 251,720,247.66 | 103,162,845.27 | 247,038.82 | 51,298,405.38 | -2,349,802.21 | 301,481,924.16 |
| Total | 252,755,656.30 | 104,175,443.95 | 247,038.82 | 51,298,405.38 | -2,349,802.21 | 303,529,931.48 |
Note: Other changes are due to the difference in foreign currency translation and the impact ofexchange rate fluctuations on financial statements.Significant amounts recovered or reversed in the current period:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Entity name | Recovered or reversed amount | Recovery method |
| Customer 1 | 125,000.00 | Recovery of bad debts in prior period |
| Customer 2 | 10,000.00 | Recovery of bad debts in prior period |
| Customer 3 | 15,129.60 | Recovery of bad debts in prior period |
| Customer 4 | 28,373.29 | Recovery of bad debts in prior period |
| Customer 5 | 68,535.93 | Recovery of bad debts in prior period |
| Total | 247,038.82 | / |
(4). Accounts receivable written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Accounts receivable written off | 51,298,405.38 |
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 | Loan | 22,070,798.37 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 2 | Loan | 4,825,857.88 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 3 | Loan | 2,989,682.17 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 4 | Loan | 2,739,105.00 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 5 | Loan | 2,516,227.31 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 6 | Loan | 2,296,713.28 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 7 | Loan | 1,634,033.44 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 8 | Loan | 1,471,954.85 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 9 | Loan | 1,432,973.03 | The payment is expected unrecoverable | Approval under due procedures | No |
| Customer 10 | Loan | 1,106,988.82 | The payment is expected unrecoverable | Approval under due procedures | No |
| Other 78 customers | Loan | 8,214,071.23 | The payment is expected unrecoverable | Approval under due procedures | No |
| Total | / | 51,298,405.38 | / | / | / |
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 | 1,826,730,589.19 | 38.02 | 91,336,529.46 |
| Customer 1 | 655,267,190.12 | 13.64 | 32,763,359.51 |
| Customer 2 | 173,154,105.91 | 3.60 | 9,240,931.28 |
| Customer 3 | 142,908,726.75 | 2.97 | 9,017,016.16 |
| Customer 4 | 115,712,664.21 | 2.41 | 6,383,987.23 |
| Total | 2,913,773,276.18 | 60.64 | 148,741,823.64 |
Other notesNote: the age of accounts receivable from the pig farming company under Tech-bank Food Co., Ltd.(“Tech-bank”) is within the 1 year and the amount 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 continuinginvolvement"□ 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 acceptances | 13,066,496,368.98 | 11,406,947,347.71 |
| Total | 13,066,496,368.98 | 11,406,947,347.71 |
Change in receivable financing and change in fair value in the current period:
"□ Applicable" "√ Not applicable"
Refer to disclosure of other receivables if the provision for bad debts is created under the general model forexpected credit loss:
"□ Applicable" "√ Not applicable"
Other notes:
"√ Applicable" "□ Not applicable"
(1) The banker's acceptances pledged by the Company at the end of the period totaled 9,665,638,659.50yuan.
(2) The banker’s acceptances endorsed as of the end of the period that have not been due on the balancesheet date totaled 10,192,859,326.46 yuan.
(3) The banker's acceptances discounted as of the end of the period that have not been due on the balancesheet date totaled 31,445,606,956.18 yuan.The acceptors of the said banker's acceptances are banks with a very low possibility of non-performance, sothese banker's acceptances have been de-recognized. The Company will be liable jointly and severally withbanks 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 | 1,477,431,107.85 | 99.35 | 1,592,976,378.78 | 99.15 |
| 1- 2 years | 7,294,527.86 | 0.49 | 9,894,205.53 | 0.62 |
| 2- 3 years | 802,288.11 | 0.05 | 1,238,495.57 | 0.08 |
| Over 3 years | 1,645,068.90 | 0.11 | 2,435,960.95 | 0.15 |
| Total | 1,487,172,992.72 | 100.00 | 1,606,545,040.83 | 100.00 |
Note on the reason for significant prepayments over 1 year:
None.
(2). Top five entities in prepayments at the end of the current period
"□ Applicable" "√ Not applicable"
Other notes"√ Applicable" "□ Not applicable"The total amount of prepayments from top five entities for the current period is 829,451,693.13 yuan,taking up 55.77% of the total amount of prepayments at the end of the 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 | 477,514,347.63 | 611,985,134.57 |
| Total | 477,514,347.63 | 611,985,134.57 |
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
(1). Dividend receivable
"□ Applicable" "√ Not applicable"
(2). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(3). 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 book balance |
| Within 1 year | |
| In which: Within 1 year | |
| Within 1 year | 313,924,039.39 |
| Within 1 year | 313,924,039.39 |
| 1- 2 years | 85,395,361.21 |
| 2- 3 years | 48,547,965.01 |
| Over 3 years | 120,425,876.85 |
| Total | 568,293,242.46 |
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Payment type | Closing book balance | Opening book balance |
| Performance bond | 422,137,512.78 | 444,273,452.92 |
| Asset disposal | 76,665,987.95 | |
| Advances | 41,079,914.03 | 38,008,377.28 |
| Government grants | 17,593,568.84 | |
| Insurance claims | 22,111,905.64 | 4,702.00 |
| Others | 82,963,910.01 | 106,044,683.63 |
| Total | 568,293,242.46 | 682,590,772.62 |
(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 January 01, 2022 | 39,260,833.08 | 31,344,804.97 | 70,605,638.05 | |
| The Jan 1, 2022 balance during the current period | ||||
| -- converted into stage II | ||||
| -- converted into stage III | -11,642,054.49 | 11,642,054.49 | ||
| -- reversed into stage II | ||||
| -- reversed into stage I | ||||
| Creation in the current period | -14,511,197.26 | 46,104,487.46 | 31,593,290.20 | |
| Reversal in the current period | ||||
| Clear in the current period | ||||
| Write-off in the current period | 11,642,054.49 | 11,642,054.49 | ||
| Other changes | 222,021.07 | 222,021.07 | ||
| Balance on December 31, 2022 | 13,329,602.40 | 77,449,292.43 | 90,778,894.83 |
Note on significant changes in balances of other receivables for which their provisions were changed in thecurrent period:
"√ Applicable" "□ Not applicable"Other changes are due to the in foreign currency translation.
Provisions for bad debts and basis for determining significant increases in credit risks of financialinstruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"□ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Change in current period | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Other receivables | 70,605,638.05 | 31,593,290.20 | 11,642,054.49 | 222,021.07 | 90,778,894.83 | |
| Total | 70,605,638.05 | 31,593,290.20 | 11,642,054.49 | 222,021.07 | 90,778,894.83 | |
Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Other receivables written off in the current period | 11,642,054.49 |
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 |
| Entity 1 | Lease payments for water surface (land) | 9,153,117.99 | The payment is expected unrecoverable | Approval under due procedures | No |
| Entity 3 | Current account | 1,217,024.00 | The payment is expected unrecoverable | Approval under due procedures | No |
| Entity 4 | Performance bond | 390,000.00 | The payment is expected unrecoverable | Approval under due procedures | No |
| Other entities | 881,912.50 | The payment is expected unrecoverable | Approval under due procedures | No | |
| Total | / | 11,642,054.49 | / | / | / |
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 |
| Entity 1 | Performance bond | 76,190,000.00 | Within 1 year | 13.41 | |
| Entity 2 | Performance bond | 56,681,911.77 | Note 1 | 9.97 | |
| Entity 3 | Performance bond | 30,000,000.00 | 1- 2 years | 5.28 | |
| Entity 4 | Insurance claims | 22,100,000.00 | Within 1 year | 3.89 | |
| Entity 5 | Performance bond | 20,400,000.00 | 2- 3 years | 3.59 | |
| Total | / | 205,371,911.77 | / | 36.14 |
Note 1: The closing balance for entity 2: 34,496,451.77 yuan within 1 year, and 22,185,460.00 yuanbetween 1 and 2 years.
(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 continuinginvolvement"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable" "√ Not applicable"
9. Inventories
(1). Classification of inventories
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Provision for obsolete inventory/provision for impairment on fulfillment costs | Carrying value | Book balance | Provision for obsolete inventory/provision for impairment on fulfillment costs | Carrying value | |
| Raw materials | 3,933,801,975.56 | 76,889,145.51 | 3,856,912,830.05 | 2,567,707,745.26 | 9,983,945.22 | 2,557,723,800.04 |
| Work-in-process | 472,567,045.48 | 472,567,045.48 | 286,891,070.52 | 286,891,070.52 | ||
| Goods in stock | 3,583,696,215.78 | 252,067,262.23 | 3,331,628,953.55 | 924,876,172.89 | 27,417,517.64 | 897,458,655.25 |
| Materials for repeated use | 59,575,288.33 | 59,575,288.33 | 48,917,893.98 | 48,917,893.98 | ||
| Consumable biological assets | 51,893,637.87 | 7,843,337.72 | 44,050,300.15 | 63,370,049.03 | 7,843,337.72 | 55,526,711.31 |
| Costs to fulfill contracts | 49,524,009.90 | 49,524,009.90 | 13,936,566.22 | 13,936,566.22 | ||
| Packing materials | 33,585,149.60 | 33,585,149.60 | 31,170,648.04 | 31,170,648.04 | ||
| Materials in transit | 13,153,709.97 | 13,153,709.97 | 9,318.11 | 9,318.11 | ||
| Materials for processing on consignment | 664,990,947.31 | 7,357,102.19 | 657,633,845.12 | 847,765,826.97 | 847,765,826.97 | |
| Goods in transit | 2,598,930,595.62 | 114,912,619.39 | 2,484,017,976.23 | 948,652,713.69 | 5,261,636.09 | 943,391,077.60 |
| Total | 11,461,718,575.42 | 459,069,467.04 | 11,002,649,108.38 | 5,733,298,004.71 | 50,506,436.67 | 5,682,791,568.04 |
(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 | 9,983,945.22 | 66,905,200.29 | 76,889,145.51 | |||
| Work-in-process | ||||||
| Goods in stock | 27,417,517.64 | 266,282,040.98 | 41,632,296.39 | 252,067,262.23 | ||
| Materials for repeated use | ||||||
| Consumable biological assets | 7,843,337.72 | 1,274,000.00 | 1,274,000.00 | 7,843,337.72 | ||
| Costs to fulfill contracts | ||||||
| Goods in transit | 5,261,636.09 | 127,133,447.21 | 17,482,463.91 | 114,912,619.39 | ||
| Materials for processing on consignment | 7,357,102.19 | 7,357,102.19 | ||||
| Total | 50,506,436.67 | 468,951,790.67 | 60,388,760.30 | 459,069,467.04 | ||
(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 the 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 | ||||
| Book balance | Impairment provision | Carrying value | Book balance | Impairment provision | Carrying value | |
| Electricity price subsidies | 630,254,246.71 | 32,323,051.12 | 597,931,195.59 | 758,955,932.09 | 43,852,907.79 | 715,103,024.30 |
| Total | 630,254,246.71 | 32,323,051.12 | 597,931,195.59 | 758,955,932.09 | 43,852,907.79 | 715,103,024.30 |
(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 the 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
Unit: Yuan Currency: CNY
| Category | Closing balance | Closing balance | ||||
| Book balance | Impairment provision | Provision (%) | Book balance | Impairment provision | Provision (%) | |
| Electricity price subsidies | 630,254,246.71 | 32,323,051.12 | 5.13 | 758,955,932.09 | 43,852,907.79 | 5.78 |
(2) Changes in impairment provision for contract assets
Unit: Yuan Currency: CNY
| Category | Opening balance | Change in current period | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Electricity price subsidies | 43,852,907.79 | 11,529,856.67 | 32,323,051.12 | |||
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"Other notesNone.
13. Other current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Costs to obtain contracts | ||
| Costs of returns receivable | ||
| Input tax credit | 680,785,868.61 | 1,192,394,602.16 |
| Corporate income tax prepayment | 105,330,225.62 | 25,773,110.65 |
| Costs of issuing convertible bond to be deducted | 1,140,203.28 | |
| Other tax prepayments | 291,639.83 | 1,335,221.74 |
| Total | 786,407,734.06 | 1,220,643,137.83 |
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 the current period and basis for determining significant increases in creditrisks of financial instruments for the 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 the current period and basis for determining significant increases in creditrisks of financial instruments for the 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 the 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 andcontinuing involvement"□ Applicable" "√ Not applicable"Other notes"□ Applicable""√ Not applicable"
17. Long-term equity investments
"√Applicable" "□Not applicable"
Unit: Yuan Currency: CNY
| Investee | Opening balance | Change in current period | 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 | |||||||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 6,411,699.14 | -902,593.03 | 233,020.64 | 5,276,085.47 | |||||||
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 105,106,774.23 | -2,947,930.43 | 102,158,843.80 | ||||||||
| Sub-total | 111,518,473.37 | -3,850,523.46 | 233,020.64 | 107,434,929.27 | |||||||
| II. Associates | |||||||||||
| Bohai Aquaculture Co., Ltd. | 99,603,329.66 | 2,136,863.18 | -682,837.29 | -166,628.78 | 100,890,726.77 | ||||||
| Haimao Seed Industry Technology Co., Ltd. | 136,707,219.24 | -57,308,947.49 | -437,728.97 | 24,673,524.79 | 54,287,017.99 | 24,673,524.79 | |||||
| Anhui Tech-bank Feed Technology Co., Ltd. | 59,356,017.38 | 1,795,335.25 | 61,151,352.63 | ||||||||
| Anhui Tech-bank Biotechnology Co., Ltd. | 23,402,678.61 | 338,944.91 | 23,741,623.52 | ||||||||
| Suzhou Taiyangjing New Energy Co., Ltd. | 25,210,607.32 | -5,939,032.23 | 23,809,924.94 | 43,081,500.03 | |||||||
| Sub-total | 344,279,852.21 | -58,976,836.38 | -1,120,566.26 | 23,643,296.16 | 24,673,524.79 | 283,152,220.94 | 24,673,524.79 | ||||
| Total | 455,798,325.58 | -62,827,359.84 | -1,120,566.26 | 23,643,296.16 | 233,020.64 | 24,673,524.79 | 390,587,150.21 | 24,673,524.79 | |||
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. | 154,196,557.28 | 153,551,598.71 |
| Total | 154,196,557.28 | 153,551,598.71 |
(2). Non-trading equity investments
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Dividend income recognized in the 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. | 7,508,757.28 | 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 | 3,146,248.25 |
| Total | 3,146,248.25 | 3,146,248.25 |
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 | 162,080,432.71 | 21,630,000.00 | 183,710,432.71 | |
| 2. Current increase | ||||
| (1) Purchased | ||||
| (2) Conversion from stock/fixed assets/construction in progress | ||||
| (3) Increase from business combination | ||||
| 3. Current decrease | ||||
| (1) Disposal | ||||
| (2) Others | ||||
| 4. Closing balance | 162,080,432.71 | 21,630,000.00 | 183,710,432.71 | |
| II. Accumulated depreciation and accumulated amortization | ||||
| 1. Opening balance | 32,373,457.85 | 9,301,444.64 | 41,674,902.49 | |
| 2. Current increase | 3,964,328.84 | 666,408.39 | 4,630,737.23 | |
| (1) Deprecation or amortization | 3,964,328.84 | 666,408.39 | 4,630,737.23 | |
| 3. Current decrease | ||||
| (1) Disposal | ||||
| (2) Others | ||||
| 4. Closing balance | 36,337,786.69 | 9,967,853.03 | 46,305,639.72 | |
| II. Impairment provision | ||||
| 1. Opening balance | 29,692,565.20 | 29,692,565.20 | ||
| 2. Current increase | ||||
| (1) Provision | ||||
| 3. Current decrease | ||||
| (1) Disposal | ||||
| (2) Others | ||||
| 4. Closing balance | 29,692,565.20 | 29,692,565.20 | ||
| IV. Carrying value | ||||
| 1. Closing carrying value | 96,050,080.82 | 11,662,146.97 | 107,712,227.79 | |
| 2. Opening carrying value | 100,014,409.66 | 12,328,555.36 | 112,342,965.02 | |
(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 | 53,291,583,073.49 | 36,953,602,608.30 |
| Disposal of fixed assets | 385,795.71 | 5,069,389.79 |
| Total | 53,291,968,869.20 | 36,958,671,998.09 |
Other notes:
"□ Applicable" "√ Not applicable"
Fixed assets
(1). Fixed assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Premises and buildings | Machinery equipment | PV generation equipment | Transportation equipment | Office equipment | Total |
| I. Original carrying value: | ||||||
| 1. Opening balance | 11,272,217,776.88 | 24,162,239,256.40 | 10,831,731,685.90 | 318,616,312.57 | 355,222,948.04 | 46,940,027,979.79 |
| 2. Current increase | 5,162,903,579.60 | 18,292,125,909.28 | 2,637,504,831.29 | 122,727,795.27 | 50,414,649.37 | 26,265,676,764.81 |
| (1) Purchase | 554,370,355.91 | 1,105,823.98 | 121,590,896.08 | 40,552,438.83 | 717,619,514.80 | |
| (2) Conversion from construction in progress | 5,300,235,310.78 | 16,245,692,632.31 | 2,554,041,622.96 | 9,730,641.91 | 24,109,700,207.96 | |
| (3) Increase from business combination | ||||||
| (4) Conversion from right-of-use assets | 1,471,361,284.91 | 1,471,361,284.91 | ||||
| (5) Adjustment from final accounts of construction completion | -145,747,000.24 | 10,185,379.98 | 82,357,384.35 | 572,422.94 | -818,610.69 | -53,450,423.66 |
| (6) Effect of foreign currency translation | 8,415,269.06 | 10,516,256.17 | 564,476.25 | 950,179.32 | 20,446,180.80 | |
| 3. Current decrease | 230,575,857.43 | 4,520,613,799.75 | 656,194.57 | 35,451,100.30 | 40,762,126.55 | 4,828,059,078.60 |
| (1) Disposal or scrap | 136,713,554.21 | 1,846,021,208.80 | 656,194.57 | 35,451,100.30 | 40,762,126.55 | 2,059,604,184.43 |
| (2) Conversion to construction in progress | 93,862,303.22 | 2,674,592,590.95 | 2,768,454,894.17 | |||
| 4. Closing balance | 16,204,545,499.05 | 37,933,751,365.93 | 13,468,580,322.62 | 405,893,007.54 | 364,875,470.86 | 68,377,645,666.00 |
| II. Accumulated depreciation | ||||||
| 1. Opening balance | 2,438,247,994.47 | 5,583,990,212.97 | 1,137,438,071.30 | 162,768,214.41 | 197,491,395.68 | 9,519,935,888.83 |
| 2. Current increase | 559,384,218.39 | 4,063,066,114.71 | 437,312,287.34 | 53,080,713.35 | 49,534,102.03 | 5,162,377,435.82 |
| (1) Provision | 566,607,801.56 | 3,730,357,989.30 | 428,181,678.13 | 52,649,267.01 | 48,909,773.41 | 4,826,706,509.41 |
| (2) Conversion from right-of-use assets | 324,828,173.03 | 324,828,173.03 | ||||
| (3) Adjustment from final accounts of construction completion | -10,720,797.96 | 1,590,188.75 | 9,130,609.21 | |||
| (3) Effect of foreign currency translation | 3,497,214.79 | 6,289,763.63 | 431,446.34 | 624,328.62 | 10,842,753.38 | |
| 3. Current decrease | 70,808,249.03 | 1,480,600,344.26 | 225,918.27 | 24,002,716.35 | 36,076,972.16 | 1,611,714,200.07 |
| (1) Disposal or scrap | 50,477,658.24 | 699,761,044.48 | 225,918.27 | 24,002,716.35 | 36,076,972.16 | 810,544,309.50 |
| (9) Conversion to construction in progress | 20,330,590.79 | 780,839,299.78 | 801,169,890.57 | |||
| 4. Closing balance | 2,926,823,963.83 | 8,166,455,983.42 | 1,574,524,440.37 | 191,846,211.41 | 210,948,525.55 | 13,070,599,124.58 |
| II. Impairment provision | ||||||
| 1. Opening balance | 153,494,696.78 | 47,207,099.06 | 265,252,962.50 | 10,219.13 | 524,505.19 | 466,489,482.66 |
| 2. Current increase | 1,215,166,752.04 | 367,725,502.52 | 8,388.29 | 8,018.87 | 1,582,908,661.72 | |
| (1) Provision | 1,215,166,752.04 | 367,725,502.52 | 8,388.29 | 8,018.87 | 1,582,908,661.72 | |
| 3. Current decrease | 6,110,206.34 | 27,311,375.08 | 10,219.13 | 502,875.90 | 33,934,676.45 | |
| (1) Disposal or scrap | 6,110,206.34 | 27,311,375.08 | 10,219.13 | 502,875.90 | 33,934,676.45 | |
| 4. Closing balance | 147,384,490.44 | 1,235,062,476.02 | 632,978,465.02 | 8,388.29 | 29,648.16 | 2,015,463,467.93 |
| IV. Carrying value | ||||||
| 1. Closing carrying value | 13,130,337,044.78 | 28,532,232,906.49 | 11,261,077,417.23 | 214,038,407.84 | 153,897,297.15 | 53,291,583,073.49 |
| 2. Opening carrying value | 8,680,475,085.63 | 18,531,041,944.37 | 9,429,040,652.10 | 155,837,879.03 | 157,207,047.17 | 36,953,602,608.30 |
Note 1: Adjustment from final accounts of construction completions mainly refers to the adjustment of fixed assets pre-converted to fixed assets from finalaccounts for phase 1 project of Tongwei Solar (Meishan) Co., Ltd.Note 2: As stated in “changes in significant accounting policies”, the retrospective adjustments of the opening balances of fixed assets are as below:
Unit: Yuan Currency: CNY
| Category | Item | Opening balance | ||
| Before adjustment | Adjustment amount | After adjustment | ||
| Premises and buildings | Original carrying value | 11,273,521,319.87 | -1,303,542.99 | 11,272,217,776.88 |
| Accumulated depreciation | 2,438,346,397.86 | -98,403.39 | 2,438,247,994.47 | |
| Impairment provision | 153,494,696.78 | 153,494,696.78 | ||
| Carrying value | 8,681,680,225.23 | -1,205,139.60 | 8,680,475,085.63 | |
| Machinery equipment | Original carrying value | 24,632,305,612.33 | -470,066,355.93 | 24,162,239,256.40 |
| Accumulated depreciation | 5,714,762,667.81 | -130,772,454.84 | 5,583,990,212.97 | |
| Impairment provision | 47,207,099.06 | - | 47,207,099.06 | |
| Carrying value | 18,870,335,845.46 | -339,293,901.09 | 18,531,041,944.37 | |
| PV generation equipment | Original carrying value | 10,831,731,685.90 | 10,831,731,685.90 | |
| Accumulated depreciation | 1,137,438,071.30 | 1,137,438,071.30 | ||
| Impairment provision | 265,252,962.50 | 265,252,962.50 | ||
| Carrying value | 9,429,040,652.10 | 9,429,040,652.10 | ||
| Transportation equipment | Original carrying value | 318,616,312.57 | 318,616,312.57 | |
| Accumulated depreciation | 162,768,214.41 | 162,768,214.41 | ||
| Impairment provision | 10,219.13 | 10,219.13 | ||
| Carrying value | 155,837,879.03 | 155,837,879.03 | ||
| Office equipment | Original carrying value | 355,222,948.04 | 355,222,948.04 | |
| Accumulated depreciation | 197,491,395.68 | 197,491,395.68 | ||
| Impairment provision | 524,505.19 | 524,505.19 | ||
| Carrying value | 157,207,047.17 | 157,207,047.17 | ||
| Total | Original carrying value | 47,411,397,878.71 | -471,369,898.92 | 46,940,027,979.79 |
| Accumulated depreciation | 9,650,806,747.06 | -130,870,858.23 | 9,519,935,888.83 | |
| Impairment provision | 466,489,482.66 | 466,489,482.66 | ||
| Carrying value | 37,294,101,648.99 | -340,499,040.69 | 36,953,602,608.30 |
(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 | 729,275.97 | 289,893.32 | 439,382.65 | ||
| Machinery equipment | 1,173,024.70 | 918,422.67 | 254,602.03 | ||
| Total | 1,902,300.67 | 1,208,315.99 | 693,984.68 |
(3). Fixed assets acquired by financial lease
"□ Applicable" "√ Not applicable"
(4). Fixed assets leased out by operating lease
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing carrying value |
| Premises and buildings | 119,365,144.59 |
| Machinery equipment | 14,096,207.87 |
| Transportation equipment | 70,508.47 |
| Office equipment | 214,268.91 |
| Total | 133,746,129.84 |
(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 (Hainan) Aquatic Products Co., Ltd. | 17,990,405.42 | In progress |
| Premises of Huaian Tongwei Feed Co., Ltd. | 17,709,274.76 | In progress |
| Premises of Xiamen Tongwei Feed Co., Ltd. | 2,305,825.10 | In progress |
| Premises of Nanchang Tongwei Biotechnology Co., Ltd. | 32,394,060.19 | In progress |
| Premises of Hainan Tongwei Biotechnology Co., Ltd. | 1,528,086.69 | In progress |
| Premises of Hainan Haiyi Aquatic Products Feed Co., Ltd. | 61,621.36 | In progress |
| Premises of Qianxi Tongwei Feed Co., Ltd. | 5,124,208.04 | In progress |
| Premises of Fuzhou Tongwei William Feed Co., Ltd. | 125,333,729.24 | In progress |
| Premises of Shenyang Tongwei Biotechnology Co., Ltd. | 34,276,771.66 | In progress |
| Premises of Huizhou Tongwei Biotechnology Co., Ltd. | 10,717,625.01 | In progress |
| Premises of Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 514,257,581.47 | In progress |
| Premises of Yunnan Tongwei High-purity Crystalline Silicon Company | 720,591,473.62 | In progress |
| Premises of Sichuan Yongxiang PV Technology Co., Ltd. | 801,604,223.16 | In progress |
| Premises of Tonghe New Energy (Jintang) Co., Ltd. | 974,231,354.94 | In progress |
| Premises of Sichuan Yongxiang Energy Technology Co., Ltd. | 207,476,446.41 | In progress |
| Premises of Tongwei Solar (Hefei) Co., Ltd. | 362,417,681.97 | In progress |
| Premises of Tongwei Solar (Meishan) Co., Ltd. | 798,432,847.79 | In progress |
| Premises of Tongwei Solar (Jintang) Co., Ltd. | 858,629,617.68 | In progress |
| Premises of Tongwei Solar (Chengdu) Co., Ltd. | 814,281,002.00 | In progress |
| Total | 6,299,363,836.51 |
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 | 385,795.71 | 5,069,389.79 |
| Total | 385,795.71 | 5,069,389.79 |
Other notes:
None.
22. Construction in progress
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Construction in progress | 3,752,450,983.65 | 10,250,325,529.08 |
| Construction materials | 244,946,016.27 | 360,494,223.95 |
| Total | 3,997,396,999.92 | 10,610,819,753.03 |
Other notes:
"□ Applicable" "√ Not applicable"
Construction in progress
(1). Construction in progress
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Carrying value | Book balance | Impairment provision | Carrying value | |
| Phase I High-purity Polysilicon Project of Yongxiang Energy Technology | 581,846,907.06 | 581,846,907.06 | 2,629,615.55 | 2,629,615.55 | ||
| 15 GW Monocrystalline Rod Pulling and Cutting Project of Yongxiang PV Technology | 94,842,688.37 | 94,842,688.37 | 746,198,554.03 | 746,198,554.03 | ||
| Yongxiang Technological Renovation for Production | 52,302,278.30 | 52,302,278.30 | 29,930,785.31 | 29,930,785.31 | ||
| 20,000-Ton High-purity Polysilicon Rod Pulling and Cutting Project of Yongxiang PV Technology | 54,273,623.61 | 54,273,623.61 | ||||
| Phase I 50,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 45,978,767.94 | 45,978,767.94 | 3,409,911,750.01 | 3,409,911,750.01 | ||
| Inner Mongolia Tongwei Technological Renovation for Production | 21,123,010.82 | 21,123,010.82 | 48,968,660.93 | 48,968,660.93 | ||
| Phase II 200,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 19,012,818.39 | 19,012,818.39 | ||||
| Yongxiang New Energy Technological Renovation for Production | 20,313,734.26 | 20,313,734.26 | 5,061,605.83 | 5,061,605.83 | ||
| Phase II High-purity Polysilicon Project of Inner Mongolia Tongwei | 1,192,138,830.18 | 1,192,138,830.18 | ||||
| Phase II High-purity Polysilicon Project of Yongxiang New Energy | 21,508,913.81 | 21,508,913.81 | ||||
| Phase I 7.5 GW High-efficiency Solar Cell Project in Meishan | 115,621,150.20 | 115,621,150.20 | ||||
| Phase II 7.5 GW High-efficiency Solar Cell Project in Meishan | 809,599.56 | 809,599.56 | ||||
| Phase III 9 GW High-efficiency Solar Cell Project in Meishan | 1,907,004,489.28 | 1,907,004,489.28 | ||||
| Phase I 7.5 GW High-efficiency Solar Cell Project in Jintang | 1,964,042.72 | 1,964,042.72 | ||||
| Micro-crystalline Technology Upgrading for the High-efficiency HJT Half-cut and Double-sided Solar Cells 210mm in Jintang | 348,162,426.96 | 348,162,426.96 | ||||
| Jintang S2_Demonstration Project for Application of Core Technologies in Domestic Equipment for High-efficiency Solar Cells | 2,061,184.60 | 2,061,184.60 | 2,606,601.33 | 2,606,601.33 | ||
| Tonghe 15 GW High-Efficiency Solar Cell Project | 2,274,672,207.79 | 2,274,672,207.79 | ||||
| Tonghe 15 GW Wafer Slicing Project | 550,360,995.61 | 550,360,995.61 | ||||
| Hefei Phase III 5GW High-efficiency Module Project | 3,929,203.56 | 3,929,203.56 | 7,549,250.11 | 7,549,250.11 | ||
| Technological Upgrading Project for the 8 GW Solar Intelligent Factory in Hefei | 13,104,798.68 | 13,104,798.68 | 20,001.98 | 20,001.98 | ||
| 25 GW High-efficiency Solar Modules Project in Yancheng | 14,423,633.63 | 14,423,633.63 | ||||
| Phase II 250 MW Aquaculture-Photovoltaic Integration Powerplant Project in Chenhu for Tongwei Tianmen | 17,698,462.02 | 17,698,462.02 | ||||
| Other constructions | 556,372,956.17 | 556,372,956.17 | 1,845,655,227.03 | 5,282,262.90 | 1,840,372,964.13 | |
| Total | 3,752,450,983.65 | 3,752,450,983.65 | 10,255,607,791.98 | 5,282,262.90 | 10,250,325,529.08 |
Note 1: As stated in “changes in significant accounting policies”, the retrospective adjustments of the opening balances of construction in progress are as below:
Unit: Yuan Currency: CNY
| Project | Opening balance | ||
| Before adjustment | Adjustment amount | After adjustment | |
| 15 GW Monocrystalline Rod Pulling and Cutting Project of Yongxiang PV Technology | 755,030,527.90 | -8,831,973.87 | 746,198,554.03 |
| Tonghe 15 GW High-Efficiency Solar Cell Project | 2,281,757,633.72 | -7,085,425.93 | 2,274,672,207.79 |
| Tonghe 15 GW Wafer Slicing Project | 560,024,727.84 | -9,663,732.23 | 550,360,995.61 |
| Total | 3,596,812,889.46 | -25,581,132.03 | 3,571,231,757.43 |
(2). Changes in significant construction in progress in current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Project 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 |
| Phase I High-purity Polysilicon Project of Yongxiang Energy Technology | 6,000,000,000.00 | 2,629,615.55 | 650,074,356.56 | 70,857,065.05 | 581,846,907.06 | 10.88 | 15.00 | 4,083,044.26 | 4,083,044.26 | 3.62 | Self-funding |
| 15 GW Monocrystalline Rod Pulling and Cutting Project of Yongxiang PV Technology | 4,103,929,600.00 | 746,198,554.03 | 2,397,952,907.66 | 3,036,155,340.13 | 13,153,433.19 | 94,842,688.37 | 76.61 | 95.00 | Raising fund and self-funding | |||
| Yongxiang Technological Renovation for Production | 160,822,200.00 | 29,930,785.31 | 85,805,257.43 | 63,433,764.44 | 52,302,278.30 | 71.97 | 70.00 | Self-funding | ||||
| 20,000-Ton High-purity Polysilicon Rod Pulling and Cutting Project of Yongxiang PV Technology | 104,849,000.00 | 54,273,623.61 | 54,273,623.61 | 51.76 | 45.00 | Self-funding | ||||||
| Phase I 50,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 3,963,900,000.00 | 3,409,911,750.01 | 48,949,923.85 | 3,412,882,905.92 | 45,978,767.94 | 111.63 | 95.00 | 8,080,960.21 | 1,221,893.14 | 4.69 | Self-funding | |
| Inner Mongolia Tongwei Technological Renovation for Production | 120,019,700.00 | 48,968,660.93 | 31,292,839.37 | 59,138,489.48 | 21,123,010.82 | 66.87 | 65.00 | Self-funding | ||||
| Phase II 200,000-ton High-purity Polysilicon Project of Yunnan Tongwei | 10,079,410,000.00 | 19,012,818.39 | 19,012,818.39 | 0.19 | Preparation | Self-funding | ||||||
| Yongxiang New Energy Technological Renovation for Production | 430,080,000.00 | 5,061,605.83 | 95,602,058.09 | 80,349,929.66 | 20,313,734.26 | 23.41 | 20.00 | Self-funding | ||||
| Phase II High-purity Polysilicon Project of Inner Mongolia Tongwei | 4,016,290,000.00 | 1,192,138,830.18 | 3,498,484,813.71 | 4,679,831,025.63 | 10,792,618.26 | 119.51 | 100.00 | 16,193,920.61 | 15,583,107.19 | 4.30 | Raising fund and self-funding | |
| Phase II High-purity Polysilicon Project of Yongxiang New Energy | 3,893,700,000.00 | 21,508,913.81 | 53,543,080.73 | 75,051,994.54 | 97.29 | 100.00 | Raising fund and self-funding | |||||
| Phase I 7.5 GW efficient solar cell project in Meishan | 2,500,000,000.00 | 115,621,150.20 | 23,917,402.29 | 139,538,552.49 | 93.64 | 100.00 | Self-funding | |||||
| Phase II 7.5 GW efficient solar cell project in Meishan | 2,200,000,000.00 | 809,599.56 | 26,542,589.55 | 27,425,785.57 | -73,596.46 | 73.77 | 100.00 | Raising fund and self-funding | ||||
| Phase III 9 GW High-efficiency Solar Cell Project in Meishan | 2,200,000,000.00 | 1,907,004,489.28 | 1,907,004,489.28 | 86.68 | 90.00 | Self-funding | ||||||
| Phase I 7.5 GW High-efficiency Solar Cell Project in Jintang | 2,500,359,400.00 | 1,964,042.72 | 50,059,015.31 | 51,680,726.05 | 342,331.98 | 100.71 | 100.00 | 9,299,363.05 | 3,978,773.61 | 5.20 | Raising fund and self-funding | |
| Micro-crystalline Technology Upgrading for the High-efficiency HJT Half-cut and Double-sided Solar Cells 210mm in Jintang | 120,000,000.00 | 348,162,426.96 | 348,162,426.96 | 3.45 | 3.00 | Self-funding | ||||||
| Jintang S2_Demonstration Project for Application of Core Technologies in Domestic Equipment for High-efficiency Solar Cells | 2,000,000,000.00 | 2,606,601.33 | 1,649,641,379.98 | 1,589,837,582.20 | 60,349,214.51 | 2,061,184.60 | 95.68 | 99.00 | Self-funding | |||
| Tonghe 15 GW High-Efficiency Solar Cell Project | 4,500,000,000.00 | 2,274,672,207.79 | 1,033,895,738.51 | 3,306,454,676.32 | 2,113,269.98 | 73.52 | 100.00 | 2,619,263.77 | 2,619,263.77 | 4.62 | Self-funding | |
| Tonghe 15 GW Wafer Slicing Project | 1,500,000,000.00 | 550,360,995.61 | 209,980,788.12 | 757,343,733.73 | 2,998,050.00 | 50.69 | 100.00 | Self-funding | ||||
| Hefei Phase III 5GW High-efficiency Module Project | 370,700,000.00 | 7,549,250.11 | 354,264,204.30 | 356,893,684.82 | 990,566.03 | 3,929,203.56 | 97.60 | 99.99 | Self-funding | |||
| Technological Upgrading Project for the 8 GW Solar Intelligent Factory in Hefei | 1,119,320,000.00 | 20,001.98 | 730,131,009.40 | 712,538,294.62 | 4,507,918.08 | 13,104,798.68 | 65.23 | 80.00 | Self-funding | |||
| 25 GW High-efficiency Solar Modules Project in Yancheng | 4,500,000,000.00 | 14,423,633.63 | 14,423,633.63 | 0.32 | 0.75 | Self-funding | ||||||
| Phase II 250 MW Aquaculture-Photovoltaic Integration Powerplant Project in Chenhu for Tongwei Tianmen | 1,541,934,500.00 | 796,897,321.98 | 779,198,859.96 | 17,698,462.02 | 51.68 | 49.83 | 5,614,885.81 | 5,614,885.81 | 4.39 | Self-funding | ||
| Other constructions | 1,845,655,227.03 | 3,769,809,976.78 | 4,981,944,862.40 | 77,147,385.24 | 556,372,956.17 | 111,587,285.45 | 19,528,927.40 | |||||
| Total | 57,925,314,400.00 | 10,255,607,791.98 | 17,849,721,655.49 | 24,109,700,207.96 | 243,178,255.86 | 3,752,450,983.65 | / | / | 157,478,723.16 | 52,629,895.18 | / | / |
(3). Impairment provision for construction in progress in current period
"□ Applicable" "√ Not applicable"Other notes"□ Applicable" "√ Not applicable"
Construction materials
(1). Construction materials
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Carrying value | Book balance | Impairment provision | Carrying value | |
| Special equipment | 152,590,656.82 | 152,590,656.82 | 155,963,464.57 | 155,963,464.57 | ||
| Special materials | 92,355,359.45 | 92,355,359.45 | 204,530,759.38 | 204,530,759.38 | ||
| Total | 244,946,016.27 | 244,946,016.27 | 360,494,223.95 | 360,494,223.95 | ||
Other notes:
None.
23. Productive biological assets
(1). Productive biological assets measured at cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Aquaculture | Total | |
| Male fish | Male pawn | ||
| I. Original carrying value | |||
| 1. Opening balance | 145,460.00 | 13,985,535.85 | 14,130,995.85 |
| 2. Current increase | 16,801,702.14 | 16,801,702.14 | |
| (1) Purchased | 16,801,702.14 | 16,801,702.14 | |
| (2) Self-cultivated | |||
| 3. Current decrease | 105,171.45 | 105,171.45 | |
| (1) Disposal | 105,171.45 | 105,171.45 | |
| (2) Others | |||
| 4. Closing balance | 40,288.55 | 30,787,237.99 | 30,827,526.54 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 138,187.04 | 10,355,136.90 | 10,493,323.94 |
| 2. Current increase | 11,364,719.87 | 11,364,719.87 | |
| (1) Provision | 11,364,719.87 | 11,364,719.87 | |
| 3. Current decrease | 99,912.88 | 99,912.88 | |
| (1) Disposal | 99,912.88 | 99,912.88 | |
| (2) Others | |||
| 4. Closing balance | 38,274.16 | 21,719,856.77 | 21,758,130.93 |
| II. 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 | 2,014.39 | 9,067,381.22 | 9,069,395.61 |
| 2. Opening carrying value | 7,272.96 | 3,630,398.95 | 3,637,671.91 |
(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 | 231,755,303.04 | 2,166,786,175.15 | 3,278,047,224.94 | 5,676,588,703.13 |
| 2. Current increase | -28,664,827.11 | 782,510,106.34 | 620,073,128.26 | 1,373,918,407.49 |
| (1) Lease in current period | 7,840,052.17 | 824,759,340.05 | 620,064,251.19 | 1,452,663,643.41 |
| (2) Adjustment from modifications of terms of lease contracts | -36,504,879.28 | -401,200.20 | 8,877.07 | -36,897,202.41 |
| (3) Conversion from construction in progress | ||||
| (4) Other increase | -41,848,033.51 | -41,848,033.51 | ||
| 3. Current decrease | 42,263,199.67 | 1,471,361,284.91 | 338,019,863.67 | 1,851,644,348.25 |
| (1) Written-off upon lease expiry | 35,952,516.29 | 133,017,269.38 | 168,969,785.67 | |
| (2) Scrap or disposal | 6,310,683.38 | 205,002,594.29 | 211,313,277.67 | |
| (3) Conversion to fixed assets | 1,471,361,284.91 | 1,471,361,284.91 | ||
| 4. Closing balance | 160,827,276.26 | 1,477,934,996.58 | 3,560,100,489.53 | 5,198,862,762.37 |
| II. Accumulated depreciation | ||||
| 1. Opening balance | 47,060,888.07 | 317,105,969.66 | 936,179,582.10 | 1,300,346,439.83 |
| 2. Current increase | 23,292,238.00 | 91,644,850.77 | 280,238,764.67 | 395,175,853.44 |
| (1) Provision | 23,292,238.00 | 91,644,850.77 | 280,238,764.67 | 395,175,853.44 |
| 3. Current decrease | 36,674,557.65 | 324,828,173.03 | 198,577,932.10 | 560,080,662.78 |
| (1) Disposal | 722,041.36 | 65,560,662.72 | 66,282,704.08 | |
| (2) Written-off upon lease expiry | 35,952,516.29 | 133,017,269.38 | 168,969,785.67 | |
| (3) Conversion to fixed assets | 324,828,173.03 | 324,828,173.03 | ||
| 4. Closing balance | 33,678,568.42 | 83,922,647.40 | 1,017,840,414.67 | 1,135,441,630.49 |
| II. 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 | 127,148,707.84 | 1,394,012,349.18 | 2,542,260,074.86 | 4,063,421,131.88 |
| 2. Opening carrying value | 184,694,414.97 | 1,849,680,205.49 | 2,341,867,642.84 | 4,376,242,263.30 |
Other notes:
Note 1: The “other increase” for “machinery equipment” in current period is due to the adjustmentmade for this year on the basis of amount excluding tax because the PV generation equipment directlyleased in 2021 was initially recognized on the price (including tax), and it was confirmed in 2022 by theleaser that special VAT invoice was allowed.Note 2: “Conversion to fixed assets” means the Company has obtained the ownership of machineryequipment acquired under financial lease upon the lease expires or through its early exercising the purchaseoption.
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 | 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 |
| 2. Current increase | 199,990,164.56 | 86,603.77 | 46,555.43 | 35,159,849.65 | 82,610.00 | 22,573.20 | 2,301,231.00 | 237,689,587.61 |
| (1) Purchase | 52,896,430.78 | 86,603.77 | 46,555.43 | 15,049,516.46 | 82,610.00 | 2,301,231.00 | 70,462,947.44 | |
| (2) Internal research and development | ||||||||
| (3) Increase from business combination | ||||||||
| (4) Conversion from construction in progress | 144,286,817.34 | 17,682,976.86 | 161,969,794.20 | |||||
| (5) Adjustment from final accounts of construction completion | 2,427,356.33 | 22,573.20 | 2,449,929.53 | |||||
| (6) Effect of foreign currency translation | 2,806,916.44 | 2,806,916.44 | ||||||
| 3. Current decrease | 1,447,340.76 | 11,751,705.19 | 13,199,045.95 | |||||
| (1) Disposal | 1,447,340.76 | 11,751,705.19 | 13,199,045.95 | |||||
| 4. Closing balance | 2,325,062,670.86 | 149,685,999.97 | 193,889,298.16 | 187,338,029.53 | 97,333,717.50 | 56,092,043.98 | 32,282,731.00 | 3,041,684,491.00 |
| II. Accumulated amortization | ||||||||
| 1. Opening 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 |
| 2. Current increase | 48,486,442.54 | 10,593,133.35 | 19,858,202.54 | 21,219,091.41 | 82,258,599.60 | 2,087,907.51 | 1,584,811.26 | 186,088,188.21 |
| (1) Provision | 47,840,243.85 | 10,593,133.35 | 19,858,202.54 | 21,219,091.41 | 82,258,599.60 | 2,087,907.51 | 1,584,811.26 | 185,441,989.52 |
| (2) Adjustment from final accounts of construction completion | ||||||||
| (3) Effect of foreign currency translation | 646,198.69 | 646,198.69 | ||||||
| 3. Current decrease | 895,227.29 | 5,689,029.48 | 6,584,256.77 | |||||
| (1) Disposal | 895,227.29 | 5,689,029.48 | 6,584,256.77 | |||||
| 4. Closing balance | 307,834,638.54 | 25,615,546.77 | 56,672,694.06 | 89,168,469.60 | 93,101,185.83 | 10,408,912.51 | 3,054,543.31 | 585,855,990.62 |
| II. 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 | 2,017,228,032.32 | 124,070,453.20 | 137,216,604.10 | 98,169,559.93 | 4,232,531.67 | 45,683,131.47 | 29,228,187.69 | 2,455,828,500.38 |
| 2. Opening 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 |
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 Huizhou Tongwei Biotechnology Co., Ltd. | 7,017,013.41 | In progress |
| Land used by Huaian Tongwei Feed Co., Ltd. | 575,295.08 | In progress |
| Land used by Xiamen Tongwei Feed Co., Ltd. | 3,701,738.09 | In progress |
| Land used by Tongwei Solar (Chengdu) Co., Ltd. | 49,916,888.91 | In progress |
| Land used by Gao’an Tongwei Fishery-PV Technology Co., Ltd. | 126,316.67 | In progress |
| Total | 61,337,252.16 |
Other notes:
"□ Applicable""√ Not applicable"
27. R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | |||
| Internal R&D cost | Others | Recognized as intangible assets | Converted into current profit and loss | Converted to operating cost | |||
| R&D projects for silicon materials | 2,066,616,172.22 | 97,841,714.74 | 1,968,774,457.48 | ||||
| R&D projects for solar cells and modules | 1,729,881,805.72 | 1,002,788,501.48 | 727,093,304.24 | ||||
| Others | 604,085,366.95 | 363,813,327.62 | 240,272,039.33 | ||||
| Total | 4,400,583,344.89 | 1,464,443,543.84 | 2,936,139,801.05 | ||||
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 | |
| From business combination | Others | 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 | |||
| Tech-bank Feed Co., Ltd. | 139,528,632.05 | 3,304,451.85 | 142,833,083.90 | ||
| Total | 797,632,156.16 | 3,304,451.85 | 800,936,608.01 | ||
Note: The goodwill increase for Tech-bank Feed Co., Ltd. is due to the acquisition considerationdetermined by facts such as accounts receivable of Tech-bank Feed Co., Ltd. that had existed before thepurchase date (combination date) were recovered within 12 months after the purchase date (combinationdate), so that the Company paid an acquisition consideration of 3,304,451.85 yuan in the current period.
(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 | 86,073,100.00 | 110,094,000.00 | |||
| Goodwill of Tech-bank Feed Co., Ltd. | 4,753,172.31 | 60,798,136.56 | 65,551,308.87 | |||
| Total | 51,058,878.43 | 146,871,236.56 | 197,930,114.99 |
(3). Information relating to asset group or combination of asset groups where the goodwill belongs"√ Applicable" "□ Not applicable"Products of above companies that generated goodwill have active markets. Main cash flow into thesecompanies are independent from the cash flow into other asset groups or combinations of asset groups.These companies are determined as separate asset groups. Such asset group is identical to the combinationof asset groups 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 presentvalue of future cash flow, growth rate in stable period, profit margin rate, discount rate, forecastperiod, applicable) of goodwill impairment test as well as the recognition of goodwill impairmentloss"√ Applicable" "□ Not applicable"
① Core goodwill
The recoverable amount is determined by asset group on the basis of expected future cash flow. Futurecash flow is determined according to the financial budget 2023 and financial forecast 2024-2027 approvedby the management. The cash flow over 5 years for the asset group is calculated as perpetual cash flow.Other key assumptions used for expecting future cash flow include: estimate the expected revenue, grossmargin, 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.Determination of discount rate: The comparable company analysis is used for this test with the expectedreturn on investments estimated under weighted average costs of capital model. Under this approach, thefirst step is to select comparable companies from listed companies, and estimate the systemic riskcoefficient β (Levered Beta) of the comparable companies; the second step is to estimate the expectedreturn on investments before tax according to the capital structure and β of comparable companies and thecapital structure of the Company. This expected return on investments is then taken as the discount rate.The management believes that any reasonable change in the said assumptions would not cause the carryingvalue of any asset group that shares the goodwill to be greater than its recoverable amount except that theimpairment provision for core goodwill from Tongwei Solar (Hefei) Co., Ltd. and Tech-bank Feed Co., Ltd.
② Non-core goodwill
Referring to the case study 5-1 “Goodwill and its impairment issues arising from the recognition ofdeferred tax liabilities due to asset valuation appreciation during acquisition”, from Chapter 5 of theAnalysis of Cases of Listed Companies Implementing Accounting Standard for Enterprises (2020)published by the Accounting Department of the China Securities Regulatory Commission in June 2020. Fornon-core goodwill, the deferred tax liability is reversed, and the future income tax expenses is reduced. Therecoverable amount of this portion of goodwill is essentially the amount of future income tax expenses thathave been reduced. As the fair value increment of assets due to acquisition is amortized in the consolidatedfinancial statements, the corresponding deferred tax liability is reversed and a provision for impairment ofnon-core goodwill is recognized accordingly.
(5). Effects of goodwill impairment test
"√ Applicable" "□ Not applicable"Goodwill impairment test has indicated that the goodwill impairment in 2022 caused a goodwillimpairment loss of 146,871,200 yuan in the consolidated financial statements of the Company.Other notes"□ Applicable" "√ Not applicable"
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 | 105,933,322.75 | 120,457,216.53 | 64,599,436.69 | 161,791,102.59 |
| improvements of long-term assets | |||||
| Decoration expense | 122,814,222.70 | 86,065,941.44 | 51,016,899.17 | 157,863,264.97 | |
| Others | 33,062,991.97 | 48,787,632.62 | 41,940,092.08 | 39,910,532.51 | |
| Total | 261,810,537.42 | 255,310,790.59 | 157,556,427.94 | 359,564,900.07 |
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 | 2,256,674,882.39 | 402,795,236.91 | 759,649,485.88 | 151,104,304.39 |
| Unrealized gain on internal transactions | 2,751,537,922.22 | 423,457,310.00 | 1,308,235,055.38 | 203,294,395.80 |
| Deductible loss | 58,023,069.45 | 9,282,943.58 | 127,368,220.47 | 19,811,869.18 |
| Claims reserve | 17,774,435.23 | 4,443,608.81 | ||
| Amortization of fixed assets greater than the amortization under tax laws | 83,228,601.01 | 12,484,290.15 | 89,054,507.33 | 13,358,176.10 |
| Decrease in depreciation of fixed assets due to provision for asset impairment | -39,266,319.74 | -4,603,953.08 | -72,121,613.64 | -10,729,826.87 |
| Employee benefits | 3,964,862,186.96 | 594,729,328.04 | 753,695,409.29 | 113,354,311.39 |
| Deferred income | 692,274,458.64 | 111,129,338.65 | 724,500,421.51 | 115,775,526.75 |
| Deduction of gain at consolidation on increase in assessed value of land | 24,755,230.47 | 3,713,284.57 | 25,565,344.73 | 3,834,801.71 |
| Lease interest amortization | 15,425,604.51 | 2,313,840.68 | ||
| Estimated liabilities | 177,993,077.06 | 26,698,961.56 | ||
| Paper loss of held-for-trading financial liabilities | 64,230,257.65 | 9,635,384.04 | ||
| Total | 10,052,087,801.34 | 1,593,765,733.23 | 3,731,372,435.46 | 612,117,399.13 |
(2). Deferred tax liabilities not offset
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance | ||
| Taxable temporary difference | Deferred income tax Liabilities | Taxable temporary difference | Deferred income tax Liabilities | |
| Increase in assessed value from business combinations under | 360,307,872.46 | 84,508,900.31 | 486,551,435.76 | 114,919,145.64 |
| different control | ||||
| 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 | 6,650,967,370.42 | 1,007,325,075.89 | 2,379,425,585.71 | 356,913,837.86 |
| Discounted income from interest-free debts | 5,760,114.68 | 864,017.20 | 18,955,505.36 | 2,843,325.80 |
| Amortization of fixed assets less than the amortization under tax laws | 856,150,608.82 | 128,422,591.32 | 1,372,249,974.84 | 205,837,496.23 |
| Paper gain on held-for-trading financial assets | 7,788,828.24 | 1,368,775.83 | 10,617,668.58 | 2,198,830.87 |
| Total | 7,880,974,794.62 | 1,222,489,360.55 | 4,267,800,170.25 | 682,712,636.40 |
(3). Net amount after offsetting deferred tax assets or liabilities
"□ Applicable" "√ Not applicable"
(4). Details of un-recognized deferred tax assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Deductible temporary difference | ||
| Deductible loss | 6,055,471,972.83 | 2,176,875,369.80 |
| Provision for asset impairment | 698,856,020.00 | 159,535,463.69 |
| Employee benefits | 335,981,978.32 | 59,273,714.10 |
| Deferred income | 490,652.78 | |
| Change in fair value of held-for-trading financial liabilities | 120,856.83 | |
| Total | 7,090,430,827.98 | 2,396,175,200.37 |
(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 |
| 2022 | 95,747,614.75 | ||
| 2023 | 116,616,691.24 | 100,189,511.81 | |
| 2024 | 201,981,863.88 | 230,356,593.24 | |
| 2025 | 426,453,093.92 | 354,691,177.91 | |
| 2026 | 1,107,701,974.53 | 1,395,890,472.09 | |
| 2027 | 4,202,718,349.26 | ||
| Total | 6,055,471,972.83 | 2,176,875,369.80 | / |
Other notes:
"□ Applicable" "√ Not applicable"
31. Other non-current assets
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Book balance | Impairment provision | Carrying value | Book balance | Impairment provision | Carrying value | |
| Costs to obtain contracts | ||||||
| Costs to fulfill contracts | ||||||
| Costs of returns receivable | ||||||
| Contract assets | ||||||
| Input tax credit under VAT | 129,047,943.34 | 129,047,943.34 | 620,859,210.32 | 620,859,210.32 | ||
| Prepayments for engineering equipment | 2,554,289,711.33 | 2,554,289,711.33 | 1,819,767,455.00 | 1,819,767,455.00 | ||
| Land prepayments | 19,362,354.02 | 19,362,354.02 | ||||
| Others | 884,768.56 | 884,768.56 | ||||
| Total | 2,703,584,777.25 | 2,703,584,777.25 | 2,440,626,665.32 | 2,440,626,665.32 |
Other notes:
Input tax credit under VAT whose deduction is expected to be over a year is presented under othernon-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 | |
| Guarantee borrowings | 32,275,024.55 | 734,950,572.25 |
| Credit borrowings | 20,015,972.23 | 40,032,625.01 |
| Discount of commercial acceptances | 200,000,000.00 | |
| Guarantee + mortgage borrowings | 200,204,722.22 | |
| Trade finance loan | 35,476,127.44 | |
| Total | 87,767,124.22 | 1,375,230,141.70 |
(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 provided by Tongwei Group for the Company.Guarantees between the Company and its subsidiaries are as below:
Unit: Yuan Currency: CNY
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 871,205.97 | October 01, 2022 | January 13, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 2,707,967.41 | October 05, 2022 | January 13, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 2,852,178.23 | October 13, 2022 | January 31, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 2,776,209.98 | October 17, 2022 | January 31, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 3,101,462.12 | November 08, 2022 | February 06, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 1,772,264.07 | November 09, 2022 | February 07, 2023 |
| Tongwei Holdings PTE. Ltd. | PT. Tongwei Indonesia | 2,658,396.10 | December 14, 2022 | March 14, 2023 |
| Vietnam Tongwei Feed Co., | Qianjiang Tongwei Co., | 1,238,543.21 | October 10, 2022 | January 06, 2023 |
| Ltd. | Ltd. | |||
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 1,740,989.61 | October 11, 2022 | January 09, 2023 |
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 832,914.05 | October 13, 2022 | January 11, 2023 |
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,154,266.82 | October 17, 2022 | January 13, 2023 |
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 3,055,870.92 | October 27, 2022 | January 25, 2023 |
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 2,585,195.99 | October 28, 2022 | January 26, 2023 |
| Vietnam Tongwei Feed Co., Ltd. | Qianjiang Tongwei Co., Ltd. | 3,927,560.07 | November 22,2022 | February 20, 2023 |
33. Held-for-trading financial liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Held-for-trading financial liabilities | ||||
| Including: | ||||
| Financial liabilities designated to be measured at fair value through current profit and loss | ||||
| Including: | ||||
| Derivative financial liabilities | 64,351,114.48 | 64,351,114.48 | ||
| Total | 64,351,114.48 | 64,351,114.48 | ||
Other notes:
"√ Applicable" "□ Not applicable"The derivative financial liabilities refer to paper losses resulting from the difference between the lockedexchange rate in the undelivered forward foreign exchange contract and the central parity rate at the end ofthe period.
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 | 8,840,732,429.14 | 9,761,984,458.33 |
| Letters of credit | 10,690,936.81 | 71,490,068.10 |
| Total | 8,851,423,365.95 | 9,957,923,070.67 |
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 | 9,158,290,478.11 | 7,686,622,841.17 |
| 1- 2 years | 1,696,665,608.81 | 388,134,629.62 |
| 2- 3 years | 127,094,781.97 | 42,680,870.30 |
| Over 3 years | 36,110,668.41 | 33,831,735.12 |
| Total | 11,018,161,537.30 | 8,151,270,076.21 |
(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 payable by theCompany；
2) Classification by nature of payment:
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Payable on operating activities | 4,171,159,587.56 | 2,586,374,768.27 |
| Payable on non-operating activities | 6,847,251,082.48 | 5,564,895,307.94 |
| Total | 11,018,410,670.04 | 8,151,270,076.21 |
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 | 26,743,540.63 | 97,237,950.05 |
| 1- 2 years | 5,902,926.55 | 2,630,455.22 |
| 2- 3 years | 1,973,487.73 | 728,229.39 |
| Over 3 years | 1,847,939.73 | 1,663,190.63 |
| Total | 36,467,894.64 | 102,259,825.29 |
(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 | 5,405,872,108.61 | 3,112,027,804.79 |
| Total | 5,405,872,108.61 | 3,112,027,804.79 |
(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 | 1,388,757,870.41 | 7,333,858,281.76 | 5,581,551,563.25 | 3,141,064,588.92 |
| II. Post-employment benefits - defined contribution plans | 270,931,739.31 | 270,931,739.31 | ||
| III. Termination benefits | 7,566,789.48 | 7,566,789.48 | ||
| IV. Other benefits due within one year | ||||
| Total | 1,388,757,870.41 | 7,612,356,810.54 | 5,860,050,092.03 | 3,141,064,588.92 |
Note: 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.
(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 | 1,323,924,230.34 | 6,784,349,035.51 | 5,071,326,247.76 | 3,036,947,018.09 |
| II. Employee benefit expense | 225,495,265.83 | 225,495,265.83 | ||
| III. Social insurance expense | 151,292,403.51 | 151,292,403.51 |
| Including: Medical insurance expense | 133,125,331.45 | 133,125,331.45 | ||
| Work injury insurance expense | 15,939,071.41 | 15,939,071.41 | ||
| Maternity insurance expense | 2,228,000.65 | 2,228,000.65 | ||
| IV. House provident fund | 64,353,943.40 | 64,353,943.40 | ||
| V. Union funds and education expense | 64,833,640.07 | 108,367,633.50 | 69,083,702.74 | 104,117,570.83 |
| VI. Short-term paid leave | ||||
| VII. Short-term profit sharing plan | ||||
| Total | 1,388,757,870.41 | 7,333,858,281.76 | 5,581,551,563.25 | 3,141,064,588.92 |
(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 | 261,648,124.01 | 261,648,124.01 | ||
| 2. Unemployment insurance expense | 9,283,615.30 | 9,283,615.30 | ||
| 3. Enterprise annuity expense | ||||
| Total | 270,931,739.31 | 270,931,739.31 |
Other notes:
"□ Applicable""√ Not applicable"
40. Taxes payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| VAT | 437,308,048.59 | 248,318,107.38 |
| Corporate income tax | 2,423,575,096.10 | 496,865,750.99 |
| Personal income tax | 39,520,951.40 | 24,877,403.26 |
| Urban construction and maintenance tax | 14,363,121.16 | 15,889,519.06 |
| Stamp duty | 32,256,582.08 | 7,637,857.31 |
| Property tax | 6,104,220.08 | 6,773,632.40 |
| Land use tax | 3,361,264.48 | 3,309,489.18 |
| Others | 17,591,719.68 | 12,315,148.98 |
| Total | 2,974,081,003.57 | 815,986,908.56 |
41. Other payables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Interest payable | ||
| Dividend payable | ||
| Other payables | 2,142,680,307.16 | 761,620,932.59 |
| Total | 2,142,680,307.16 | 761,620,932.59 |
Other notes:
"□ Applicable" "√ Not applicable"Interest payable
(1). Presentation by category
"□ Applicable" "√ Not applicable"Dividend payable
(1). 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 | 2,853,250.00 | 3,801,160.00 |
| Performance bond | 1,879,416,612.15 | 511,772,262.14 |
| Others | 260,410,445.01 | 246,047,510.45 |
| Total | 2,142,680,307.16 | 761,620,932.59 |
(2). Other significant payables with an age over 1 year
"□ Applicable" "√ Not applicable"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 | 1,054,189,602.55 | 981,675,606.47 |
| Bonds payable due within 1 year | 167,792,353.66 | |
| Long-term accounts payable due within 1 year | 522,191,207.59 | 1,039,544,910.06 |
| Lease liabilities due within 1 year | 467,925,405.65 | 465,808,746.76 |
| Total | 2,212,098,569.45 | 2,487,029,263.29 |
Other notes:
(1) Long-term borrowings due within one year
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Credit borrowings | 4,602,899.29 | 67,722,242.68 |
| Guarantee borrowings | 110,163,681.11 | 455,298,240.87 |
| Mortgage borrowings | 100,329,999.99 | 1,499,305.06 |
| Pledge + guarantee borrowings | 138,459,263.10 | 124,603,755.53 |
| Mortgage + guarantee borrowings | 472,227,132.22 | 107,591,505.55 |
| Mortgage + pledge + guarantee borrowings | 228,406,626.84 | 224,960,556.78 |
| Total | 1,054,189,602.55 | 981,675,606.47 |
Note 1: Guarantees provided by Tongwei Group for the Company are detailed in “related-partyguarantees”. Guarantees provided by the Company for its subsidiaries:
Unit: Yuan Currency: CNY
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| The Company | Tongwei New Energy Co., Ltd. | 7,348,254.11 | March 18, 2019 | November 20, 2023 |
| The Company | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 11,083,826.11 | June 28, 2019 | April 10, 2023 |
| The Company | Sihong Tongli New Energy Co., Ltd. | 70,679,194.35 | October 20, 2019 | October 20, 2023 |
| The Company | Aohanqi Xinhuo New Energy Co., Ltd. | 40,443,437.50 | March 27, 2020 | September 30, 2023 |
| The Company | Gao’an Tongwei Fishery-PV Technology Co., Ltd. | 9,818,798.93 | April 01, 2020 | December 21, 2023 |
| The Company | Tianjin Binhai Tongli New Energy Co., Ltd. | 24,133,327.60 | June 30, 2020 | December 10, 2023 |
| The Company | Changde Dingcheng Tongwei New Energy Co., Ltd. | 19,231,215.45 | September 11, 2020 | December 20, 2023 |
| The Company | Xichan Tongwei New Energy Co., Ltd. | 6,691,315.28 | September 27, 2020 | December 21, 2023 |
| The Company | Binzhou Zhanhua Tonghui Marine Technology Co., Ltd. | 46,455,780.45 | December 30, 2020 | December 20, 2023 |
| The Company | Bengbu Tongwei New Energy Co., Ltd. | 48,562,933.91 | March 11, 2021 | November 20, 2023 |
| The Company | Gong’an Tongwei Fishery-PV Technology Co., Ltd. | 25,197,633.33 | March 26, 2021 | September 21, 2023 |
| The Company | Binyang Jingchuang New Energy Co., Ltd. | 9,621,166.88 | December 10, 2021 | December 10, 2023 |
| The Company | Binyang Jingchuang New Energy Co., Ltd. | 11,643,542.36 | December 10, 2021 | December 10, 2023 |
| The Company | Qinzhou Tongwei Huijin New Energy Co., Ltd. | 12,565,702.78 | October 27, 2021 | December 15, 2023 |
| The Company | Dongying Tongli New Energy Co., Ltd. | 20,238,944.44 | March 04, 2021 | August 22, 2023 |
| The Company | Tongwei Fishery-PV Technology (Jiangmen) Co., Ltd. | 399,197.09 | October 28, 2022 | October 26, 2023 |
| The Company | Lianjiang Tongwei Fishery-PV Technology Co., Ltd. | 459,585.67 | October 25, 2022 | October 20, 2023 |
| The Company | Tianmen Tongli Fishery-PV Technology Co., Ltd. | 13,665,555.56 | December 27, 2022 | December 26, 2023 |
| The Company | Xide Tongwei Huijin New Energy Co., Ltd. | 3,049,885.00 | December 23, 2022 | December 20, 2023 |
| The Company | Zhaoyuan Tongwei New Energy Technology Co., Ltd. | 171,999.89 | May 27, 2022 | November 26, 2023 |
| The Company | Binyang Jingchuang New Energy Co., Ltd. | 2,519,230.90 | July 29, 2022 | December 10, 2023 |
| The Company | Tonghe New Energy (Jintang) Co., Ltd. | 980,765.85 | May 12, 2022 | November 12, 2023 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 2,000,000.00 | September 27, 2022 | December 21, 2023 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 24,000,000.00 | December 26, 2022 | December 21, 2023 |
| The Company | Yunnan Tongwei High-purity Crystalline Silicon Company | 115,578,151.60 | November 24, 2021 | December 31, 2023 |
| Total | 526,539,445.04 |
Note 2: Pledges and mortgage are detailed in “assets with restricted ownership or use right”.Note 3: There is no overdue long-term borrowings due within one year.
(2) Long-term accounts 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 | 405,605,864.73 | 190,563,712.84 |
| Reserve established by guarantor | 17,774,435.23 | 16,976,803.56 |
| Including: undue claims reserve | 2,516,102.90 | 3,012,100.99 |
| Compensation reserve established by guarantor | 15,258,332.33 | 13,964,702.57 |
| Total | 423,380,299.96 | 207,540,516.40 |
Increase/decrease in short-term bonds:
"□ Applicable" "√ Not applicable"Other notes:
"□ Applicable""√ Not applicable"
45. Long-term borrowings
(1). Classification of long-term borrowings
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Mortgage borrowings | 300,000,000.00 | |
| Guarantee borrowings | 8,928,810,054.34 | 5,462,279,024.22 |
| Credit borrowings | 2,377,710,000.00 | 1,220,980,000.00 |
| Pledge + guarantee borrowings | 1,292,458,536.98 | 1,388,907,338.52 |
| Mortgage + guarantee borrowings | 727,550,000.00 | 1,364,310,000.00 |
| Mortgage + pledge + guarantee borrowings | 1,782,807,404.35 | 2,004,553,497.42 |
| Total | 15,409,335,995.67 | 11,441,029,860.16 |
Note on classification of long-term borrowings:
(1) Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group for theCompany. Guarantees provided by the Company for its subsidiaries are as below:
Unit: Yuan Currency: CNY
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| The Company | Tianmen Tongli Fishery-PV Technology Co., Ltd. | 786,666,666.66 | December 27, 2022 | December 26, 2042 |
| The Company | Sichuan Yongxiang New Energy Co., Ltd. | 705,000,000.00 | July 30, 2021 | August 24, 2028 |
| The Company | Tonghe New Energy (Jintang) Co., Ltd. | 589,800,000.00 | August 31, 2022 | August 30, 2027 |
| The Company | Sihong Tongli New Energy Co., Ltd. | 547,554,450.00 | October 20, 2019 | April 20, 2031 |
| The Company | Tongwei Solar Hong Kong Co., Ltd. | 544,810,195.88 | December 01, 2021 | November 30, 2024 |
| The Company | Tongwei Solar Hong Kong Co., Ltd. | 417,876,000.00 | December 01, 2021 | November 30, 2024 |
| The Company | Tongwei Solar Hong Kong Co., Ltd. | 417,876,000.00 | December 01, 2021 | November 30, 2024 |
| The Company | Binzhou Zhanhua Tonghui Marine Technology Co., Ltd. | 412,770,400.00 | December 30, 2020 | December 03, 2032 |
| The Company | Bengbu Tongwei New Energy Co., Ltd. | 361,224,128.35 | March 11, 2021 | December 29, 2031 |
| The Company | Tongwei Solar (Hefei) Co., Ltd. | 300,000,000.00 | December 14, 2021 | December 13, 2024 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 300,000,000.00 | October 20, 2021 | October 19, 2024 |
| The Company | Tianjin Binhai Tongli New Energy Co., Ltd. | 272,895,000.00 | June 30, 2020 | June 10, 2032 |
| The Company | Aohanqi Xinhuo New Energy Co., Ltd. | 260,000,000.00 | March 27, 2020 | March 26, 2030 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 250,000,000.00 | December 27, 2022 | December 26, 2029 |
| The Company | Tongwei Solar (Jintang) Co., Ltd. | 233,000,000.00 | December 24, 2021 | December 21, 2026 |
| The Company | Changde Dingcheng Tongwei New Energy Co., Ltd. | 222,888,630.97 | September 11, 2020 | August 10, 2032 |
| The Company | Binyang Jingchuang New Energy Co., Ltd. | 218,575,000.00 | December 10, 2021 | December 08, 2032 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 216,000,000.00 | December 26, 2022 | December 25, 2027 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 198,000,000.00 | September 27, 2022 | September 26, 2025 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 192,000,000.00 | July 26, 2021 | July 25, 2025 |
| The Company | Dongying Tongli New Energy Co., Ltd. | 150,000,000.00 | March 04, 2021 | February 21, 2031 |
| The Company | Gao’an Tongwei Fishery-PV Technology Co., Ltd. | 144,112,876.00 | April 01, 2020 | December 21, 2034 |
| The Company | Gong’an Tongwei Fishery-PV Technology Co., Ltd. | 143,000,000.00 | March 26, 2021 | September 21, 2029 |
| The | Tongwei Solar (Meishan) Co., Ltd. | 128,000,000.00 | January 01, 2022 | July 31, 2025 |
| Company | ||||
| The Company | Qinzhou Tongwei Huijin New Energy Co., Ltd. | 115,200,000.00 | October 27, 2021 | October 27, 2032 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 100,000,000.00 | September 27, 2021 | September 26, 2024 |
| The Company | Tongwei Solar (Jintang) Co., Ltd. | 95,000,000.00 | December 24, 2021 | December 21, 2026 |
| The Company | Xide Tongwei Huijin New Energy Co., Ltd. | 90,200,000.00 | December 23, 2022 | December 05, 2035 |
| The Company | Tongwei New Energy Co., Ltd. | 86,600,000.00 | March 18, 2019 | March 18, 2036 |
| The Company | Tongwei Solar (Meishan) Co., Ltd. | 64,000,000.00 | September 10, 2021 | July 31, 2025 |
| The Company | Xichan Tongwei New Energy Co., Ltd. | 62,900,000.00 | September 27, 2020 | September 27, 2033 |
| The Company | Panzhihua Tongwei Huijin New Energy Co., Ltd. | 47,000,000.00 | June 28, 2019 | June 10, 2027 |
| The Company | Binyang Jingchuang New Energy Co., Ltd. | 21,250,000.00 | July 29, 2022 | December 08, 2032 |
| The Company | Yunnan Tongwei High-purity Crystalline Silicon Company | 11,550,000.00 | November 24, 2021 | June 30, 2025 |
| The Company | Tongwei Fishery-PV Technology (Jiangmen) Co., Ltd. | 9,611,191.80 | October 28, 2022 | October 26, 2037 |
| The Company | Tongwei Solar (Hefei) Co., Ltd. | 5,000,000.00 | March 31, 2022 | March 30, 2028 |
| The Company | Zhaoyuan Tongwei New Energy Technology Co., Ltd. | 4,750,000.01 | May 27, 2022 | May 25, 2037 |
| The Company | Lianjiang Tongwei Fishery-PV Technology Co., Ltd. | 4,545,456.00 | October 25, 2022 | October 25, 2034 |
| The Company | Tonghe New Energy (Jintang) Co., Ltd. | 4,000,000.00 | May 12, 2022 | May 11, 2026 |
| Total | 8,733,655,995.67 |
(2) Guarantees from external entities
Unit: Yuan Currency: CNY
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date |
| Chongqing Branch, Ping An Bank Co., Ltd. | The Company | 496,000,000.00 | September 21, 2022 | September 20, 2025 |
| Total | 496,000,000.00 |
(3) Pledges and mortgage are detailed in “assets with restricted ownership or use 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 | 147,817,803.66 | 410,493,072.19 |
| Tong22 Convertible Bonds | 10,296,919,111.67 | |
| Less: Bonds payable due within one year | 167,792,353.66 | |
| Total | 10,276,944,561.67 | 410,493,072.19 |
(2). Increase/decrease in bonds payable: (excluding other financial instruments such as preference share and perpetual bond classified as financialliabilities)"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Bond name | Face value | New date | Bond duration | New amount | Opening balance | Current New | Interest established by face value | Amortization of premium or discount | Current repayment | Closing balance |
| 2020 Middle-Term Note Series 1 | 100 | June 17, 2020 | 3 Years | 400,000,000.00 | 410,493,072.19 | 12,720,000.00 | 404,731.47 | 275,800,000.00 | 147,817,803.66 | |
| Tong22 Convertible Bonds | 100 | February 24, 2022 | 6 Years | 12,000,000,000.00 | 12,000,000,000.00 | 19,974,550.00 | -1,707,785,438.33 | 15,270,000.00 | 10,296,919,111.67 | |
| Total | / | / | / | 12,400,000,000.00 | 410,493,072.19 | 12,000,000,000.00 | 32,694,550.00 | -1,707,380,706.86 | 291,070,000.00 | 10,444,736,915.33 |
Note 1: Amortization of premium or discount on “Tong22 Convertible Bonds” is as below:
Unit: Yuan Currency: CNY
| Composition of amortization of premium or discount | Amortized premium or discount |
| Initially recognized amount of debt part of Tong22 Convertible Bonds | -2,048,613,255.07 |
| Current amortization of adjusted interest for Tong22 Convertible Bonds | 338,508,525.45 |
| Reversal of adjusted interest due to conversion of Tong22 Convertible Bonds | 2,319,291.29 |
| Total | -1,707,785,438.33 |
Note 2: Of the closing balance of bonds payable, those re classed into non-current liabilities due within one year are presented as below:
Unit: Yuan Currency: CNY
| Item | Book balance | Amount of non-current liability due within one year | Amount of bonds payable |
| 2020 Middle-Term Note Series 1 | 147,817,803.66 | 147,817,803.66 | |
| Tong22 Convertible Bonds | 10,296,919,111.67 | 19,974,550.00 | 10,276,944,561.67 |
| Total | 10,444,736,915.33 | 167,792,353.66 | 10,276,944,561.67 |
Note 3: The amount payable for the current period regarding “Tong22 Convertible Bonds” was paid through conversion of the bonds to shares. In the current period, atotal of 152,700 bonds were converted to the Company's A-shares for a total amount of 15,270,000.00 yuan.
(3). Note on conversion conditions and conversion time on convertible bonds"√ Applicable" "□ Not applicable"The conversion period for the convertible bonds issued this time is from the 1st trading day 6 monthsafter the issuance was completed (March 2, 2022, T+4) to the maturity date of the convertible bonds - thatis from September 2, 2022 to February 23, 2028.
(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 | 3,374,637,088.14 | 2,966,450,212.56 |
| Less: Lease liabilities due within one year | 467,925,405.65 | 465,808,746.76 |
| Total | 2,906,711,682.49 | 2,500,641,465.80 |
Other notes:
Note 1: Information on leases where the Company is the lessee is detailed in “other important matters -leases”.Note 2: Guarantees provided by the Company for its subsidiaries:
(1) The Company has provided guarantees for the net financial lease of 519,000,442.22 yuan taken bySichuan Yongxiang Energy Technology Co., Ltd. and Yunnan Tongwei High-purity Crystalline SiliconCompany.
(2) The Company and Tongwei New Energy Co., Ltd. have provided guarantees for the net financial leaseof 1,637,635,172.73 yuan taken by Dongxing Tonghui New Energy Co., Ltd., Fuqing Tongwei Huijin NewEnergy Co., Ltd., Pingdu Tongwei New Energy Co., Ltd., Qian’an Tongwei Huijin New Energy Co., Ltd.,Suihua Tongli Fishery-PV Technology Co., Ltd., Tongli Fishery-PV Technology (Nanjing) Co., Ltd.,Tongwei Fishery-PV (Tangshan) Co., Ltd., Tongwei Fishery-PV (Nanchang) Co., Ltd., TongweiFishery-PV (Rudong) Co., Ltd., Chongqing Tongwei New Energy Co., Ltd., and Zibo Huixiang NewEnergy Co., Ltd.
(3) The Company has provided guarantees for the net financial lease of 156,527,451.66 yuan taken byTongwei Solar (Jintang) Co., Ltd.
48. Long-term payables
Presentation of items"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Long-term payables | 973,541,127.03 | 1,647,453,239.69 |
| Special payables | 850,000.00 | 850,000.00 |
| Total | 974,391,127.03 | 1,648,303,239.69 |
Other notes:
"□ Applicable" "√ Not applicable"
Long-term payables
(1). Presentation of other payable by nature
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| Financial lease payments payable (sale-leaseback does not constitute of a sale) | 807,596,681.47 | 1,315,358,937.56 |
| Others | 165,944,445.56 | 332,094,302.13 |
| Total | 973,541,127.03 | 1,647,453,239.69 |
Note: As of December 31, 2022, PV powerplant companies under the Company acquired a net amount of1,129,390,844.93 yuan 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
(1). 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 | Note | ||
| Total | 850,000.00 | 850,000.00 | / |
Other notes:
Note: The special funds used as guarantees by Tongwei Agriculture Financing Guarantee (a subsidiaryof the Company) are 2,480,000.00 yuan consisting of risk support funds (1,630,000.00 yuan) and funds forreward in place of subsidy (850,000.00 yuan). The use of these funds is subject to Sichuan ManagementProcedures on Provincial-level Special Fiscal Subsidy for Agriculture-related Credit Guarantee issued bythe Department of Finance of Sichuan province on August 28, 2012. Article 18 of the Procedures providesfor that: funds for reward in place of subsidy are injected as state-owned capital to increase the registeredcapital of the guarantor; every time when the cumulative funds for reward in place of subsidy received bythe guarantor is or over 10 million yuan, the guarantor must timely report to relevant authority underrelevant provisions for approval and then complete the change registration of its registered capital. Risksupport funds are to compensate the loss from guarantee risk if the risk reserve created by the guarantor isinsufficient to compensate the loss; the balance of the risk support funds (if any) is carried over to the nextyear. The funds received by the Company were used in 2018 to compensate a loss of 1,630,000.00 yuanresulted from the unrecovered repayments made for behalf of the guaranteed parties, with a balance of850,000.00 yuan.
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 | 3,805,815,900.20 | 649,891,600.00 |
| Total | 3,805,815,900.20 | 649,891,600.00 |
Note: Other long-term employee benefits refer to the bonus to be paid one year later.
(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 future cashflow, 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"
50. Estimated liabilities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Closing balance | Reason |
| Outward guarantee | |||
| Pending litigation | |||
| Product warranty | 177,993,077.06 | ||
| Reorganization obligation | |||
| Loss contracts to be enforced | |||
| Sale returns payable | |||
| Others | |||
| Total | 177,993,077.06 | / |
Other notes including notes on important assumptions and estimates relating to significant estimatedliabilities:
The Company provides module quality guarantee deposit at 1% of module sales revenue withreference to practices of major peer companies.
51. Deferred income
Deferred income"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance | Reason |
| Government grants | 900,673,699.85 | 189,943,587.50 | 223,087,090.85 | 867,530,196.50 | |
| Total | 900,673,699.85 | 189,943,587.50 | 223,087,090.85 | 867,530,196.50 | / |
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 | 412,616,407.45 | 68,643,300.00 | 127,188,678.61 | 354,071,028.84 | Relating to asset | ||
| Infrastructure support fund for Global Innovation Base project | 63,072,000.00 | 63,072,000.00 | Relating to asset | ||||
| Subsidy for land investment | 56,542,372.77 | 1,220,339.04 | 55,322,033.73 | Relating to asset | |||
| Special funds for infrastructure construction | 49,878,746.72 | 9,653,950.97 | 40,224,795.75 | Relating to asset | |||
| State public service platform | 26,830,588.24 | 27,150,000.00 | 15,042,086.81 | 38,938,501.43 | Relating to asset | ||
| Compensation for relocation | 30,393,248.73 | 9,550,397.52 | 20,842,851.21 | Relating to asset | |||
| Technological renovation project for the 2 GW intelligent factory | 24,750,820.29 | 5,514,363.57 | 19,236,456.72 | Relating to asset | |||
| 2021 annual advanced manufacturing policy | 20,000,000.00 | 1,944,444.46 | 18,055,555.54 | Relating to asset | |||
| Special funds for uniform It-enabled service platform in the industrial park (digital fishery) | 18,000,000.00 | 18,000,000.00 | Relating to asset | ||||
| Fiscal subsidy for emerging strategies | 19,097,222.26 | 2,083,333.32 | 17,013,888.94 | Relating to asset | |||
| Other amounts relating to asset | 208,968,775.21 | 42,990,287.50 | 47,229,010.15 | 204,730,052.56 | Relating to asset | ||
| Other amounts relating to income | 8,523,518.18 | 13,160,000.00 | 3,660,486.40 | 18,023,031.78 | Relating to income | ||
| Total | 900,673,699.85 | 189,943,587.50 | 223,087,090.85 | 867,530,196.50 |
Other notes:
"□ Applicable" "√ Not applicable"
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 reserve Converted to share capital | Others | Sub-total | |||
| Total shares | 4,501,548,184 | 397,913 | 397,913 | 4,501,946,097 | |||
Note: Other increase means the conversion of Tong22 Convertible Bonds to shares in the current period.
54. Other equity instruments
(1). Basic information of other financial instruments (including preference share and perpetual bond)outstanding as of the end of the period"√ Applicable" "□ Not applicable"Approved by the CSRC in the CSRC Permit [2021] No. 4028, on February 24, 2022, the Companyissued convertible bonds publicly valued 12 billion yuan for a term of 6 years. The coupon ratearrangements for these convertible bonds: 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rdyear, 1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year. Interest payments are madeannually and the principal and interest for the last year will be paid on maturity.
(2). Changes in other financial instruments (including preference share and perpetual bond)outstanding as of the end of the period"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Note on changes in other equity instruments and the reasons as well as basis for relevant accountingtreatment"√ Applicable" "□ Not applicable"Note: The current decrease is due to the accumulative conversion of Tong22 Convertible Bonds with anominal value of 15,270,000.00 yuan to the Company’ shares, which resulted in the conversion of otherequity instruments into capital reserve.Other notes:
"□ Applicable" "√ Not applicable"
55. Capital reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Capital premium (share premium) | 16,108,230,834.72 | 21,207,139.65 | 8,407,758.12 | 16,121,030,216.25 |
| Other capital reserves | -371,113.32 | 23,809,924.94 | 166,628.78 | 23,272,182.84 |
| Total | 16,107,859,721.40 | 45,017,064.59 | 8,574,386.90 | 16,144,302,399.09 |
Financialinstrumentsoutstanding
| Financial instruments outstanding | Opening | Current increase | Current decrease | Closing | ||||
| Number | Carrying value | Number | Carrying value | Number | Carrying value | Number | Carrying value | |
| Tong22 Convertible Bonds | 120,000,000 | 1,967,589,416.96 | 152,700 | 2,503,757.53 | 119,847,300 | 1,965,085,659.43 | ||
| Total | 120,000,000 | 1,967,589,416.96 | 152,700 | 2,503,757.53 | 119,847,300 | 1,965,085,659.43 | ||
Other notes including changes in current period and reasons:
Note 1: Current change in capital reserve is from:
Unit: Yuan Currency: CNY
| Item | Current increase | Current decrease |
| I. Share premium | 21,207,139.65 | 8,407,758.12 |
| 1. “Tong22 Convertible Bonds” converted to share capital | 15,050,495.92 | |
| 2. Equity transactions with minority interest | 6,156,643.73 | 8,407,758.12 |
| II. Other capital reserves | 23,809,924.94 | 166,628.78 |
1. Other changes in equity of Suzhou Taiyangjing New
Energy Co., Ltd. (an associate of the Company) recognizedby the shareholding percentage
| 23,809,924.94 | ||
| 2. Other changes in equity of Bohai Aquaculture Co., Ltd. (an associate of the Company) recognized by the shareholding percentage | 166,628.78 | |
| Total | 45,017,064.59 | 8,574,386.90 |
Note 2: Equity transactions with minority interest are detailed in “Equity in other entities -Transactions resulting in changes in ownership interest without loss of control”. The share premium isadjusted as below according to the difference between the Company’s share of the net assets of the investeeand the acquisition consideration/disposal consideration:
Unit: Yuan Currency: CNY
| No. | Investee | Change in equity percentage before and after the transaction | Adjustment of capital reserve | ||
| Before transaction | Shareholding percentage under transaction | After transaction | |||
| 1 | Sichuan Willtest Technology Co., Ltd. | 85.04% | 0.36% | 85.40% | 4,813.50 |
| 2 | Sichuan Yongxiang Silicon Materials Co., Ltd. | 92.75% | 7.25% | 100.00% | -8,407,758.12 |
| 3 | Tongwei (Hainan) Aquatic Products Co., Ltd. | 100.00% | -20.00% | 80.00% | 6,151,830.23 |
| Total | -2,251,114.39 | ||||
56. Treasury shares
"□ Applicable" "√ Not applicable"
57. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current period amount | Closing balance | |||||
| Current period amount before tax | 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 expense | 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 | 6,863,798.71 | 644,958.57 | 644,958.57 | 7,508,757.28 | ||||
| Including: Changed 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 | 6,863,798.71 | 644,958.57 | 644,958.57 | 7,508,757.28 | ||||
| Change in fair value of the company's own credit risk | ||||||||
| II. Other comprehensive income that will be reclassified into profit or loss | -89,171,202.67 | -26,418,368.81 | -27,197,357.90 | 778,989.09 | -116,368,560.57 | |||
| Including: other comprehensive income that can be converted into profit and loss under equity method | 259,086.76 | -1,120,566.26 | -1,120,566.26 | -861,479.50 | ||||
| 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 | -89,430,289.43 | -25,297,802.55 | -26,076,791.64 | 778,989.09 | -115,507,081.07 | |||
| Total other comprehensive income | -82,307,403.96 | -25,773,410.24 | - | - | -26,552,399.33 | 778,989.09 | -108,859,803.29 |
Other notes including the adjustment of the initially recognized amount of a hedged item converted fromthe effective portion of cash flow hedge: None.
58. Special reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Work safety expense | 15,918,034.03 | 140,169,711.16 | 122,335,772.05 | 33,751,973.14 |
| Total | 15,918,034.03 | 140,169,711.16 | 122,335,772.05 | 33,751,973.14 |
Other notes including changes in current period and reasons:
None.
59. Surplus reserve
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Opening balance | Current increase | Current decrease | Closing balance |
| Statutory surplus reserve | 1,414,948,005.57 | 992,407,579.88 | 2,407,355,585.45 | |
| Discretionary surplus reserve | ||||
| Reserve fund | ||||
| Enterprise development fund | ||||
| Others | ||||
| Total | 1,414,948,005.57 | 992,407,579.88 | 2,407,355,585.45 |
Surplus reserve notes, including notes on changes in current period and reasons for the changes:
None.
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 | 15,544,604,417.32 | 9,066,353,854.50 |
| Total adjustment of opening undistributed profit (+ for increase and - for decrease) | -319,550,651.51 | -375,926,424.61 |
| Adjusted opening undistributed profit | 15,225,053,765.81 | 8,690,427,429.89 |
| Add: net current profit attributable to owners of parent company | 25,726,447,236.27 | 8,109,125,091.40 |
| Less: Withdrawal from statutory surplus | 992,407,579.88 | 489,625,643.13 |
| Withdrawal from discretionary surplus reserve | ||
| Withdrawal from general risk reserve | ||
| Common dividend payable | 4,105,411,943.81 | 1,084,873,112.35 |
| Common dividend converted to share capital | ||
| Closing undistributed profit | 35,853,681,478.39 | 15,225,053,765.81 |
Details on adjustment of opening undistributed profit:
1. Retrospective adjustment made under the Accounting Standard for Business Enterprises and relevantnew provisions had an effect of -319,550,651.51 yuan on the opening undistributed profit.
2. Changes in accounting policies had an effect of 0 yuan on the opening undistributed profit.
3. Corrections of material accounting errors had an effect of 0 yuan on opening undistributed profit.
4. Change in the scope of the consolidation due to business combination under common control had aneffect of 0 yuan on the opening undistributed profit.
5. The total effect of other adjustments on the 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 | 141,472,384,388.51 | 87,254,634,514.11 | 64,109,894,648.73 | 47,707,872,705.20 |
| Other operating activities | 950,133,606.48 | 805,326,665.12 | 720,101,435.18 | 674,956,888.88 |
| Total | 142,422,517,994.99 | 88,059,961,179.23 | 64,829,996,083.91 | 48,382,829,594.08 |
(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"
62. Tax and surcharge
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Urban construction and maintenance tax | 377,178,795.41 | 70,012,995.86 |
| Education surcharge | 163,166,551.01 | 30,168,484.84 |
| Property tax | 89,394,957.45 | 58,097,775.48 |
| Land use tax | 52,628,305.98 | 35,038,174.67 |
| Stamp duty | 94,650,742.15 | 46,710,678.44 |
| Local education surcharge | 108,780,536.29 | 20,103,271.22 |
| Others | 25,575,237.38 | 15,823,859.87 |
| Total | 911,375,125.67 | 275,955,240.38 |
63. Sales expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Employee benefits | 770,817,518.67 | 528,231,438.62 |
| Estimated loss from product warranty | 182,911,569.17 | |
| Business travel cost | 113,684,620.81 | 99,407,130.03 |
| Advertising costs | 149,568,889.24 | 80,254,400.11 |
| Marketing and promotion costs | 80,378,401.05 | 111,456,577.28 |
| After-sale costs | 25,658,311.95 | 34,614,317.63 |
| Others | 111,751,581.98 | 65,045,929.26 |
| Total | 1,434,770,892.87 | 919,009,792.93 |
64. Management expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Employee benefits | 6,343,786,628.08 | 2,064,751,080.97 |
| Depreciation expense | 263,277,201.43 | 204,677,855.44 |
| Amortization of intangible assets | 169,676,417.53 | 75,297,475.40 |
| Work safety expense | 163,287,723.11 | 69,318,823.96 |
| Consulting expense (including advisory expense) | 107,243,742.53 | 66,490,767.62 |
| Others | 820,642,991.69 | 470,697,968.07 |
| Total | 7,867,914,704.37 | 2,951,233,971.46 |
65. R&D cost
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Costs of materials | 740,997,184.57 | 544,172,230.59 |
| Labor cost | 342,122,319.57 | 264,910,724.79 |
| Fuel and power | 172,464,460.31 | 96,754,339.59 |
| Depreciation expense | 71,625,073.77 | 59,155,137.92 |
| Other expense | 137,234,505.62 | 60,723,055.79 |
| Total | 1,464,443,543.84 | 1,025,715,488.68 |
66. Financial expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Interest expense | 960,173,341.35 | 469,390,027.14 |
| Add: Fiscal interest subsidy | 655,131.16 | 12,516,147.44 |
| Less: Interest income | 458,574,423.96 | 111,780,056.77 |
| Add: Exchange loss | 304,701,078.39 | 107,665,859.41 |
| Less: Exchange gain | 362,325,267.48 | 50,678,301.83 |
| Add: Amortization of unrecognized financing costs | 212,094,771.40 | 223,712,325.17 |
| Add: Long-term interest on employee benefits payable | 13,209,811.77 | |
| Add: Financial institution fees | 20,523,031.76 | 11,366,982.70 |
| Total | 689,147,212.07 | 637,160,688.38 |
67. Other income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Government grants relating to everyday activities | 397,490,494.89 | 359,499,729.72 |
| Total | 397,490,494.89 | 359,499,729.72 |
Other notes:
Government grants relating to everyday activities are detailed below:
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount | Relating to asset/income |
| Special reward funds | 68,299,113.00 | 14,398,300.00 | Relating to income |
| Subsidy for employment stabilization | 10,099,574.85 | 2,977,131.25 | Relating to income |
| Government supports | 10,000,000.00 | 20,880,000.00 | Relating to income |
| Tax refund | 3,187,034.78 | 20,154,724.40 | Relating to income |
| Amount relating to asset that is converted from deferred income | 219,999,271.08 | 168,293,435.91 | Relating to asset |
| Amount relating to income that is | 3,087,819.77 | 1,479,897.53 | Relating to income |
| converted from deferred income | |||
| Other amounts relating to income | 82,817,681.41 | 131,316,240.63 | Relating to income |
| Total | 397,490,494.89 | 359,499,729.72 |
68. Investment gain
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Gain on long-term equity investment under equity method | -62,827,359.84 | -14,159,521.52 |
| Gain on disposal of long-term equity investment | 1,122,402.01 | 386,473.17 |
| 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 | 497,846.62 | |
| 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 other non-current financial assets | -12,271.90 | |
| Discount interest on receivable financing | -374,197,220.05 | -15,695,856.14 |
| Gain on wealth management products purchased from banks | 89,935,380.67 | 23,368,421.89 |
| Gain on forward exchange settlement | -75,037,183.70 | 48,151,494.55 |
| Total | -421,003,980.91 | 42,536,586.67 |
Other notes:
(1) Gain on long-term equity investment under equity method
Unit: Yuan Currency: CNY
| Investee | Current amount | Prior amount |
| Bohai Aquaculture Co., Ltd. | 2,136,863.18 | 1,030,906.22 |
| Anhui Tech-bank Feed Technology Co., Ltd. | 1,795,335.25 | -643,982.62 |
| Anhui Tech-bank Biotechnology Co., Ltd. | 338,944.91 | 402,678.61 |
| Maoming Tongwei Jiuding Feed Co., Ltd. | -902,593.03 | -655,071.22 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | -2,947,930.43 | 3,881,464.81 |
| Suzhou Taiyangjing New Energy Co., Ltd. | -5,939,032.23 | -3,339,026.67 |
| Haimao Seed Industry Technology Co., Ltd. | -57,308,947.49 | -13,461,047.10 |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | -93,859.57 | |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. | -196,132.16 | |
| Hefei Tongwei Jiuding Feed Co., Ltd. | -1,085,451.82 | |
| Total | -62,827,359.84 | -14,159,521.52 |
(2) Gain on disposal of long-term equity investment
Unit: Yuan Currency: CNY
| Investee | Current amount | Prior amount |
| Hefei Tongwei Jiuding Feed Co., Ltd. Note | 990,241.92 | 141,666.67 |
| Shaoxing Tongwei Jiuding Feed Co., Ltd. Note | 132,160.09 | 118,750.00 |
| Lijiang Longji Silicon Materials Co., Ltd. | 116,781.50 | |
| Huangmei Tongwei Jiuding Feed Co., Ltd. | 9,275.00 | |
| Total | 1,122,402.01 | 386,473.17 |
Note: Hefei Tongwei Jiuding Feed Co., Ltd. and Shaoxing Tongwei Jiuding Feed Co., Ltd. (two jointventures) were dis-registered in 2021, the gain on distribution of remaining assets of the two joint venturesafter the dis-registration was recognized as gain on investment in the current period.
(3) Gain on disposal of held-for-trading financial assets
Unit: Yuan Currency: CNY
| Investee | Current amount | Prior amount |
| Disposal of the equity in Chengdu Tongwei Industrial Co., Ltd. | 497,846.62 | |
| Total | 497,846.62 |
(4) Gain on other non-current financial assets
Unit: Yuan Currency: CNY
| 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 | 20,117,978.88 | 5,754,600.46 |
| Including: Gain on change in fair value of derivate financial instruments | 1,450,406.25 | 5,754,600.46 |
| Gain on change in fair value of structured deposits and wealth management products | 18,667,572.63 | |
| Held-for-trading financial liabilities | -56,562,286.24 | |
| Investment properties measured at fair value | ||
| Total | -36,444,307.36 | 5,754,600.46 |
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 | -104,175,443.95 | -92,018,130.84 |
| Bad debt loss from other receivables | -31,593,290.20 | -31,637,916.41 |
| Impairment loss from debt investments | ||
| Impairment loss from other debt investments | ||
| Bad debt loss from long-term receivables | ||
| Impairment loss from contract assets | ||
| Total | -135,768,734.15 | -123,656,047.25 |
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 | -468,951,790.67 | -43,333,695.97 |
| III. Impairment loss from long-term equity investments | -24,673,524.79 | |
| IV. Impairment loss from investment properties | ||
| V. Impairment loss from fixed assets | -1,582,908,661.72 | -43,375,936.90 |
| 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 | -146,871,236.56 | -28,774,072.31 |
| XII. Others | ||
| XIII. Impairment loss from contract assets | 11,529,856.67 | -13,637,378.90 |
| Total | -2,211,875,357.07 | -129,121,084.08 |
73. Gain on asset disposal
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Gain on disposal of fixed assets | -9,233,490.26 | -99,013,550.58 |
| Gain on disposal of intangible assets | 3,128,786.74 | 15,823,037.54 |
| Gain on disposal of right-of-use assets | -7,486,618.82 | 5,007,050.34 |
| Gain on disposal of construction in progress | -47,169.81 | |
| Gain on disposal of productive biological assets | 153,161.13 | |
| Total | -13,438,161.21 | -78,230,632.51 |
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 |
| Total gain on disposal of non-current assets | 230,421.30 | 257,617.59 | 230,421.30 |
| In which: Gain on disposal of fixed assets | 230,421.30 | 257,617.59 | 230,421.30 |
| Gain on disposal of intangible assets | |||
| Gain on non-monetary exchange | |||
| Receipt of donations | |||
| Government grants | |||
| Payables that cannot be paid | 17,811,097.71 | 11,220,621.89 | 17,811,097.71 |
| Income relating to damages for breach | 12,262,136.16 | 7,891,108.73 | 12,262,136.16 |
| Others | 1,115,736.17 | 570,562.18 | 1,115,736.17 |
| Total | 31,419,391.34 | 19,939,910.39 | 31,419,391.34 |
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 |
| Total loss on disposal of non-current assets | 1,189,771,474.52 | 451,946,658.93 | 1,189,771,474.52 |
| In which: Loss on disposal of fixed assets | 1,189,771,474.52 | 451,946,658.93 | 1,189,771,474.52 |
| Loss on disposal of intangible assets | |||
| Loss on non-monetary exchange | |||
| Outward donations | 57,889,843.28 | 2,205,539.82 | 57,889,843.28 |
| Damages | 14,225,476.46 | 4,856,884.84 | 14,225,476.46 |
| Others | 4,587,735.07 | 5,357,778.62 | 4,587,735.07 |
| Total | 1,266,474,529.33 | 464,366,862.21 | 1,266,474,529.33 |
76. Income tax expense
(1). Income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Current income tax | 6,407,796,222.28 | 1,568,558,449.66 |
| Deferred income tax | -441,871,609.95 | 80,386,004.34 |
| Total | 5,965,924,612.33 | 1,648,944,454.00 |
(2). Adjustment of accounting profit and income tax expense
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount |
| Total profit | 38,338,810,153.14 |
| Income tax expense under legal/applicable tax rate | 9,584,702,538.28 |
| Effect of different tax rates applied to subsidiaries | -3,739,754,419.63 |
| Effect of periods prior to adjustment | -17,084,155.10 |
| Effect of non-taxable income | -265,667,288.52 |
| Effect of nondeductible cost, expense and loss | 79,202,156.25 |
| Effect of use of deductible loss from prior unrecognized deferred tax assets | -21,109,109.37 |
| Effect of deductible temporary difference or deductible loss from deferred tax assets not recognized in current period | 557,090,177.01 |
| Effect of recognition of deferred tax asset in current period for the deductible loss/deductible temporary difference from deferred tax assets not recognized in prior period | -4,978,114.49 |
| Effect of the reversal of deductible loss/deductible temporary difference from prior recognized deferred tax assets | 36,747,737.42 |
| Effect of taxable income deduction | -153,471,003.21 |
| Effect of tax credit | -91,301,334.72 |
| Deferred income tax expense impacted by changes in tax rates | 1,853,442.37 |
| Income tax expense | 5,965,924,612.33 |
Other notes:
"□ Applicable""√ Not applicable"
77. Other comprehensive income
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| 1. Other comprehensive income attributable to owners of the parent company | -26,552,399.33 | -8,393,182.24 |
| In which: Change in fair value of other equity investments | 644,958.57 | 106,497.86 |
| Other comprehensive income that can be converted to profit or loss under equity method | -1,120,566.26 | 259,086.76 |
| Foreign currency translation | -26,076,791.64 | -8,758,766.86 |
| 2. Other comprehensive income attributable to minatory shareholders | 778,989.09 | -269,478.66 |
| In which: Change in fair value of other equity investments | ||
| Other comprehensive income that can be converted to profit or loss under equity method | ||
| Foreign currency translation | 778,989.09 | -269,478.66 |
| Total | -25,773,410.24 | -8,662,660.90 |
78. Cash flow statement
(1). Other cash received relating to operating activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Performance bond | 860,757,228.02 | 216,063,316.45 |
| Interest on bank deposits | 381,361,028.20 | 111,381,985.30 |
| Government grants | 387,782,690.24 | 505,800,189.28 |
| Reserve and current accounts | 14,433,073.85 | |
| Rent income | 20,764,119.65 | 13,703,889.84 |
| Damages for breach | 5,757,415.65 | 5,691,790.25 |
| Insurance claims | 3,686,436.65 | 304,741,143.61 |
| Others | 7,251,801.87 | 2,661,344.67 |
| Total | 1,667,360,720.28 | 1,174,476,733.25 |
Other cash received relating to operating activities:
None.
(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 | 975,744,124.58 | 851,207,059.21 |
| Performance bond | 442,975,203.98 | 136,890,264.51 |
| Reserve and current accounts | 27,699,083.31 | |
| Prepaid distribution from PV powerplants in poverty alleviation program | 4,258,494.94 | 12,432,390.37 |
| Total | 1,422,977,823.50 | 1,028,228,797.40 |
Other cash paid relating to operating activities:
None.
(3). Other cash received relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Construction bid bonds | 702,279,499.81 | 461,244,114.22 |
| Construction account funds unlocked | 6,400,835.68 | |
| Total | 702,279,499.81 | 467,644,949.90 |
Other cash received relating to investing activities:
None.
(4). Other cash paid relating to investing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Refunded construction bid bonds | 501,949,500.23 | 506,985,472.09 |
| Reclamation deposit paid | 5,059,692.00 | |
| Total | 507,009,192.23 | 506,985,472.09 |
Other cash paid relating to investing activities:
None.
(5). Other cash received relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Cash received from sale-leaseback (which does not constitute of a sale) | 420,000,000.00 | |
| Recovered borrowings, letters of guarantee, and bills of guarantee deposit | 18,563,287.33 | 167,104,080.27 |
| Funds coordinated to joint ventures | 16,181,517.10 | 52,701,735.98 |
| Recovered lease risk reserve | 3,144,221.04 | |
| Income including interest on financing margin | 66,625.00 | 400,362.32 |
| Debt investments from minority shareholders of subsidiaries | 122,975,000.00 | |
| Total | 457,955,650.47 | 343,181,178.57 |
Notes on other cash received relating to financing activities:
None.
(6). Other cash paid relating to financing activities
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Current amount | Prior amount |
| Lease payments | 2,303,848,382.42 | 2,028,127,474.39 |
| In which: Lease payments for sale-leaseback (which does not constitute of a sale) | 1,509,098,738.01 | 1,341,397,284.46 |
| Principal repayment for interest-free debts | 185,087,917.55 | 185,087,917.55 |
| Financial lease risk reserve | 34,496,451.77 | 22,549,598.12 |
| Funds coordinated to joint ventures | 16,181,517.10 | 52,701,735.99 |
| Purchase of minority shareholding | 8,520,015.17 | 1,534,258.73 |
| Financing charges | 3,270,000.00 | 9,179,990.00 |
| Intermediary costs including attorney costs and accountant costs for issuing convertible bonds | 2,579,796.72 | |
| Paid notes, letters of credit and deposits for borrowings | 7,503,287.33 | |
| Investment withdrawn by minority shareholders | 1,689,178.73 | |
| Total | 2,553,984,080.73 | 2,308,373,440.84 |
Notes on other cash paid relating to investing activities:
None.
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 | 32,372,885,540.81 | 8,621,503,055.19 |
| Add: provision for asset impairment | 2,211,875,357.07 | 129,121,084.08 |
| Credit impairment loss | 135,768,734.15 | 123,656,047.25 |
| Deprecation of fixed assets, depletion of oil and gas assets and depreciation of productive biological assets | 4,842,701,966.51 | 2,595,470,227.61 |
| Amortization of right-of-use assets | 395,175,853.44 | 436,570,018.21 |
| Amortization of intangible assets | 185,441,989.52 | 92,013,927.02 |
| Amortization of long term prepaid expenses | 157,556,427.94 | 103,368,124.71 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (“-” for gain) | 13,438,161.21 | 78,230,632.51 |
| Loss from scrap of fixed assets (“-” for gain) | 1,189,541,053.22 | 451,689,041.34 |
| Loss from change in fair value (“-” for gain) | 36,444,307.36 | -5,754,600.46 |
| Financial expense (“-” for gain) | 1,105,568,202.87 | 704,955,202.62 |
| Investment loss (“-” for gain) | 421,003,980.91 | -42,536,586.67 |
| Decrease in deferred tax assets (“-” for increase) | -981,648,334.10 | -170,385,098.15 |
| Increase in deferred tax liabilities (“-” for decrease) | 539,776,724.15 | 250,771,102.49 |
| Decrease in inventories (“-” for increase) | -5,788,809,331.01 | -2,796,868,142.01 |
| Decrease in operating receivables (“-” for increase) | -6,104,015,351.83 | -7,394,759,888.49 |
| Increase in operating receivables (“-” for decrease) | 13,085,204,349.48 | 4,297,349,286.08 |
| Others | ||
| Net cash flow generated from operating activities | 43,817,909,631.70 | 7,474,393,433.33 |
| 2. Significant investing and financing activities not related to cash receipt and payment: | ||
| Debt for equity swap | 12,950,708.71 | |
| Convertible bonds due within one year | ||
| Fixed assets acquired by financial lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 35,194,041,631.11 | 2,903,078,719.63 |
| Less: Opening balance of cash | 2,903,078,719.63 | 5,986,042,619.46 |
| Add: Closing balance of cash equivalents | ||
| Less: Opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 32,290,962,911.48 | -3,082,963,899.83 |
(2). Net cash paid by subsidiaries in current period
"□ Applicable" "√ Not applicable"
(3). Net cash received in current period for disposal of subsidiary
"□ Applicable" "√ Not applicable"
(4). Components of cash and cash equivalents
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Closing balance | Opening balance |
| I. Cash | 35,194,041,631.11 | 2,903,078,719.63 |
| Including: Cash on hand | 152,905.98 | 109,314.50 |
| Bank deposits available for payment | 35,171,465,208.91 | 2,872,458,634.04 |
| Other cash available for payment | 22,423,516.22 | 30,510,771.09 |
| Central bank deposits available for payment | ||
| Interbank deposits | ||
| Interbank borrowings | ||
| II. Cash equivalents | ||
| Including: Bond investments due within three months | ||
| II. Closing cash and cash equivalents | 35,194,041,631.11 | 2,903,078,719.63 |
| Including: Restricted cash and cash equivalents available for use by parent company or subsidiaries |
Other notes:
"□ Applicable""√ Not applicable"
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 | 25,374,248.91 | Provide guarantees for financing and operating activities of the Company |
| Receivables financing | 9,665,638,659.50 | Provides pledges for the bank acceptance bills issued by the Company |
| Accounts receivable | 715,625,583.47 | Provide collaterals for financing of the Company |
| Contract assets | 355,864,692.87 | Provide collaterals for financing of the Company |
| Fixed assets | 5,957,339,958.31 | Provide securities for financing of the Company and financial lease |
| Right-of-use assets | 1,392,343,524.16 | Provide collaterals for financing of the Company |
| Intangible assets | 445,149,567.28 | Provide collaterals for financing of the Company |
| Investment properties | 72,509,754.87 | Provide collaterals for financing of the Company |
| Total | 18,629,845,989.37 | / |
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 | 52,165,598.43 | 6.9646 | 363,312,526.88 |
| VND | 186,436,434,592.84 | 0.0002952 | 55,028,463.57 |
| BDT | 341,859,501.11 | 0.0730199 | 24,962,540.88 |
| IDR | 11,622,323,637.03 | 0.0004431 | 5,149,456.64 |
| EUR | 6,500,588.19 | 7.4229 | 48,253,216.08 |
| HKD | 2,173,601.96 | 0.8933000 | 1,941,678.63 |
| Notes receivable | |||
| USD | 253,151,673.51 | 6.9646 | 1,763,100,145.35 |
| EUR | 92,661,024.47 | 7.4229 | 687,813,518.54 |
| Accounts receivable | - | - | |
| Including: USD | 13,447,964.89 | 6.9646 | 93,659,696.27 |
| VND | 371,273,280,684.83 | 0.0002952 | 109,584,793.59 |
| BDT | 25,534,533.98 | 0.0730199 | 1,864,528.70 |
| IDR | 121,315,998,102.01 | 0.0004431 | 53,750,996.06 |
| Short-term borrowings | |||
| USD | 6,415,829.92 | 6.9646000 | 44,683,689.04 |
| VND | 52,633,734,200.00 | 0.0002952 | 15,535,340.66 |
| IDR | 17,000,000,000.00 | 0.0004431 | 7,532,122.29 |
| Notes payable | |||
| USD | 1,192,650.00 | 6.9646 | 8,306,330.19 |
| EUR | 321,250.00 | 7.4229 | 2,384,606.62 |
| Accounts payable | |||
| USD | 1,308,701.32 | 6.9646 | 9,114,581.19 |
| VND | 156,596,951,194.71 | 0.0002952 | 46,221,059.96 |
| BDT | 276,812,011.55 | 0.0730199 | 20,212,780.78 |
| IDR | 43,053,236,032.25 | 0.0004431 | 19,075,425.81 |
| EUR | 1,738,795.15 | 7.4229 | 12,906,930.24 |
| Employee benefits payable |
| VND | 13,140,244,969.32 | 0.0002952 | 3,878,466.62 |
| BDT | 47,711,618.55 | 0.0730199 | 3,483,896.82 |
| IDR | 563,250,000.00 | 0.0004431 | 249,556.93 |
| Taxes payable | |||
| USD | 41,252,996.57 | 6.9646 | 287,310,619.88 |
| VND | 10,143,711,306.70 | 0.0002952 | 2,994,011.59 |
| BDT | 961,063.17 | 0.0730199 | 70,176.72 |
| IDR | 5,897,546,827.00 | 0.0004431 | 2,613,002.58 |
| EUR | 1,658,393.26 | 7.4229 | 12,310,087.35 |
| Other payables | |||
| USD | 41,252,996.57 | 6.9646 | 287,310,619.88 |
| VND | 10,143,711,306.70 | 0.0002952 | 2,994,011.59 |
| BDT | 961,063.17 | 0.0730199 | 70,176.72 |
| IDR | 5,897,546,827.00 | 0.0004431 | 2,613,002.58 |
| EUR | 1,658,393.26 | 7.4229 | 12,310,087.35 |
| Non-current liabilities due within one year | |||
| USD | 1,193,612.42 | 6.9646 | 8,313,033.06 |
| Long-term borrowings | - | - | |
| Including: USD | 198,225,626.15 | 6.9646 | 1,380,562,195.88 |
(2). Note on overseas operating entities, including for important overseas operating entities, the
principal 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 Solar (Singapore) 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 |
| Tongwei Solar (Germany) GmbH | Germany | EUR | Local main currency |
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 | 1,068,933,769.17 | Deferred income | 219,426,604.45 |
| Grants related to income | 21,683,518.18 | Deferred income | 3,660,486.40 |
| Grants related to income | 177,181,223.81 | Other income | 177,181,223.81 |
| Grants related to income | 5,837,894.16 | Operating cost | 5,837,894.16 |
| Grants related to income | 655,131.16 | Financial expense | 655,131.16 |
| Total | 1,274,291,536.48 | Total | 406,761,339.98 |
(2). Return of grants
"□ Applicable" "√ Not applicable"Other notes:
None.
85. Others
"□ Applicable" "√ Not applicable"
VIII. Changes in the scope of consolidation
1. Business combinations under different control
"□ 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"Other notes:
"□ Applicable""√ Not applicable"
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 ofsubsidiary) and relevant circumstances:
"√ Applicable" "□ Not applicable"
(1) The 10 first-level subsidiaries newly established through investment in current period are listed as
follows:
| Subsidiary name | Subsidiary name |
| Tongwei Solar (Hainan) Co., Ltd. | Huizhou Tongwei Biotechnology Co., Ltd. |
| Tongwei Solar (Singapore) PTE. Ltd. | Changde Tongwei Biotechnology Co., Ltd. |
| Tongwei Agriculture Development Co., Ltd. | Huanggang Tongwei Biotechnology Co., Ltd. |
| Hefei Tongwei Biotechnology Co., Ltd. | Nanchang Tongwei Feed Co., Ltd. |
| Shaoxing Tongwei Biotechnology Co., Ltd. | Chengdu Tongwei Biotechnology Co., Ltd. |
(2) The 2 first-level subsidiaries canceled in current period are listed as follows:
| Subsidiary name | Subsidiary name |
| Tongwei Industrial (Tibet) Co., Ltd. | Hengshui Tongwei Feed Co., Ltd. |
(3) 55 first-level subsidiaries were converted to second-level ones in the current period
① Tongwei (Hainan) Aquatic Products Co., Ltd. become a subsidiary of Sichuan Tongwei Food Co.,Ltd.
② The following 54 subsidiaries were converted to the subsidiaries of Tongwei AgricultureDevelopment Co., Ltd. in the current period:
| Subsidiary name | Subsidiary name | Subsidiary name |
| Chongqing Tongwei Feed Co., Ltd. | Chongqing Changshou Tongwei Feed Co., Ltd. | Sichuan Willtest Technology Co., Ltd. |
| Shandong Tongwei Feed Co., Ltd. | Nantong Bada Feed Co., Ltd. | Wuxi Tongwei Biotechnology Co., Ltd. |
| Shashi Tongwei Feed Co., Ltd. | Zibo Tongwei Feed Co., Ltd. | Sichuan Tongwei Feed Co., Ltd. |
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | Kunming Tongwei Feed Co., Ltd. | Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. |
| Yuanjiang Tongwei Feed Co., Ltd. | Foshan Gaoming Tongwei Feed Co., Ltd. | Zhanjiang Haixianfeng Bio-tech Co., Ltd. |
| Changchun Tongwei Feed Co., Ltd. | Tianmen Tongwei Biotechnology Co., Ltd. | Nanchang Tongwei Biotechnology Co., Ltd. |
| He’nan Tongwei Feed Co., Ltd. | Binyang Tongwei Feed Co., Ltd. | Yangjiang Haiyi Biotechnology Co., Ltd. |
| Guangdong Tongwei Feed Co., Ltd. | Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | Nanning Tongwei Biotechnology Co., Ltd. |
| Xiamen Tongwei Feed Co., Ltd. | Tongwei Agricultural Finance Guarantee Co., Ltd. | Maoming Tongwei Biotechnology Co., Ltd. |
| Wuhan Tongwei Feed Co., Ltd. | Chengdu Tongwei Automation Equipment Co., Ltd. | Ningbo Tech-bank Feed Technology Co., Ltd. |
| Tianjin Tongwei Feed Co., Ltd. | Haerbin Tongwei Feed Co., Ltd. | Qingdao Qihao Biotechnology Co., Ltd. |
| Huaian Tongwei Feed Co., Ltd. | Zhuhai Haiyi Aquatic Products Feed Co., Ltd. | Ningbo Tech-bank Biotechnology Co., Ltd. |
| Jieyang Tongwei Feed Co., Ltd. | Hainan Haiyi Aquatic Seed Co., Ltd. | Yancheng Tech-bank Feed Technology Co., Ltd. |
| Chengdu Ronglai Tongwei Feed Co., Ltd. | Tongwei Holdings PTE. Ltd. | Nanning Aigefei Feed Co., Ltd. |
| Langfang Tongwei Feed Co., Ltd. | Chizhou Tongwei Feed Co., Ltd. | Bengbu Tech-bank Feed Technology Co., Ltd. |
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | Honghu Tongwei Feed Co., Ltd. | Hubei Tech-bank Feed Co., Ltd. |
| Yangzhou Tongwei Feed Co., Ltd. | Hainan Tongwei Biotechnology Co., Ltd. | Dongying Tech-bank Feed Technology Co., Ltd. |
| Lianyungang Tongwei Feed Co., Ltd. | Hanshou Tongwei Feed Co., Ltd. | Guangdong Tongwei Biotechnology Co., Ltd. |
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 | |
| Tongwei Solar (Hainan) Co., Ltd. | Chengmai County, Hainan | Chengmai County, Hainan | Sale of modules | 100 | Establishment through investment | |
| Tongwei Solar (Singapore) PTE. Ltd. | Singapore | Singapore | Sale of modules | 100 | Establishment through investment | |
| Sichuan Tongwei Food Co., Ltd. | Chengdu | Chengdu | Food processing | 80 | Establishment through investment | |
| Tongwei Agriculture Development 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 | |
| Zaozhuang Tongwei Feed Co., Ltd. | Zaozhuang | Zaozhuang | Feed production and operation | 100 | Business combination under common control | |
| Nanning Tongwei Feed Co., Ltd. | Nanning | Nanning | Feed production and operation | 100 | Establishment through investment | |
| Qianxi Tongwei Feed Co., Ltd. | Qianxi | Qianxi | Feed production and operation | 100 | Establishment through investment | |
| Foshan Tongwei Feed Co., Ltd. | Foshan | Foshan | Feed production and operation | 100 | Establishment through investment | |
| Tongwei (Dafeng) Feed Co., Ltd. | Yancheng | Yancheng | Feed production and operation | 51 | Establishment through investment | |
| Fuzhou Tongwei William Feed Co., | Fuzhou | Fuzhou | Feed production and | 65 | Establishment through | |
| Ltd. | operation | investment | ||||
| Ningxia Yinchuan Tongwei Feed Co., Ltd. | Yinchuan | Yinchuan | Feed production and operation | 100 | Establishment through investment | |
| Sichuan Tongguang Construction Engineering Co., Ltd. | Chengdu | Chengdu | Construction | 100 | Establishment through investment | |
| Qingyuan Tongwei Feed Co., Ltd. | Yingde | Yingde | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Tongwei Fishery-PV Technology Co., Ltd. | Chengdu | Xinjin | Others | 100 | Establishment through investment | |
| Shenyang Tongwei Biotechnology Co., Ltd. | Shenyang | Shenyang | Feed production and operation | 100 | Establishment through investment | |
| Zhejiang Tongwei Solar Technology Co., Ltd. | Zhejiang | Zhejiang | PV | 100 | Establishment through investment | |
| Sichuan Chunyuan Ecological Farming Co., Ltd. | Chengdu | Qionglai | Farming | 100 | Business control under different control | |
| Zibo Tongwei Food Co., Ltd. | Zibo | Zibo | Food processing | 100 | Establishment through investment | |
| Tianmen Tongwei Aquaculture Technology Co., Ltd. | Tianmen | Tianmen | PV electricity operation | 100 | Establishment through investment | |
| Sichuan Fusion Link Co., Ltd. | Chengdu | Chengdu | Others | 60 | Establishment through investment | |
| Chengdu Tongwei Aquaculture Technology Co., Ltd. | Chengdu | Chengdu | Farming | 100 | Business combination under common control | |
| Nanjing Tongwei Aquaculture Technology Co., Ltd. | Nanjing | Nanjing | Farming and feed sale | 100 | Establishment through investment | |
| Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | Guangzhou | Guangzhou | Farming | 100 | Establishment through investment | |
| Chengdu Tongwei Aquatic Seed Co., Ltd. | Chengdu | Chengdu | Farming | 100 | Establishment through investment | |
| Hefei Tongwei Biotechnology Co., Ltd. | Hefei | Hefei | Feed production and operation | 100 | Establishment through investment | |
| Shaoxing Tongwei Biotechnology Co., Ltd. | Shaoxing | Shaoxing | Feed production and operation | 100 | Establishment through investment | |
| Huizhou Tongwei Biotechnology Co., Ltd. | Huizhou City | Huizhou City | Feed production and operation | 100 | Establishment through investment | |
| Changde Tongwei Biotechnology Co., Ltd. | Changde | Changde | Feed production and operation | 100 | Establishment through investment | |
| Huanggang Tongwei Biotechnology Co., Ltd. | Huanggang City | Huanggang City | Feed production and operation | 100 | Establishment through investment | |
| Nanchang Tongwei Feed Co., Ltd. | Nanchang | Nanchang | Feed production and operation | 100 | Establishment through investment | |
| Chengdu Tongwei Biotechnology Co., Ltd. | Chengdu | Chengdu | Feed production and operation | 100 | Establishment through investment | |
| Tongwei Industrial (Tibet) Co., Ltd. | Lhasa | Lhasa | Trade | 100 | Establishment through investment | |
| Hengshui Tongwei Feed Co., Ltd. | Hebei | Hebei | Feed production and operation | 100 | Establishment through investment |
Note on equity percent different from voting right percent:
None.
Basis for cases when the Company has control of investee in which it only holds 50% or less voting rightsand when the Company has no control of investee in 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:
10 first-level subsidiaries were newly established, 2 first-level were catcalled, and 55 were turned tosecond-level subsidiaries in the current period.
(2). Important non-wholly-owned subsidiaries
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Subsidiary name | Minority equity Percentage | Current profit or loss attributable to minority | Current dividend declared to monitory | Closing minority interest balance |
| shareholders | shareholders | |||
| Sichuan Yongxiang New Energy Co., Ltd. | 15.00% | 2,292,876,227.14 | 325,500,000.00 | 2,761,655,928.93 |
| Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 20.00% | 1,232,601,295.27 | 1,792,601,295.27 | |
| Yunnan Tongwei High-purity Crystalline Silicon Company | 49.00% | 2,753,393,109.87 | 3,888,851,743.50 |
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 name | 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. | 18,350,818,358.97 | 6,015,580,249.11 | 24,366,398,608.08 | 2,945,904,867.86 | 2,317,028,437.67 | 5,262,933,305.53 | 3,577,128,981.61 | 6,318,559,026.43 | 9,895,688,008.04 | 2,550,821,147.39 | 2,030,145,996.60 | 4,580,967,143.99 |
| Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 7,050,201,465.49 | 7,374,629,015.39 | 14,424,830,480.88 | 3,440,885,204.37 | 1,738,279,450.49 | 5,179,164,654.86 | 2,873,221,927.26 | 5,192,361,709.88 | 8,065,583,637.14 | 2,365,006,622.69 | 1,240,863,384.23 | 3,605,870,006.92 |
| Yunnan Tongwei High-purity Crystalline Silicon Company | 5,938,916,629.59 | 4,853,156,274.80 | 10,792,072,904.39 | 2,056,775,497.20 | 798,865,277.60 | 2,855,640,774.80 | 517,638,329.26 | 4,171,961,361.12 | 4,689,599,690.38 | 2,635,557,680.20 | 454,042,010.18 | 3,089,599,690.38 |
| Subsidiary name | Current amount | Prior amount | ||||||
| Operating revenue | Net income | Total comprehensive income | Cash flow from operating activities | Operating revenue | Net income | Total comprehensive income | Cash flow from operating activities | |
| Sichuan Yongxiang New Energy Co., Ltd. | 26,901,512,100.82 | 15,958,744,438.50 | 15,958,744,438.50 | 16,878,564,935.55 | 6,909,496,192.32 | 3,531,078,979.98 | 3,531,078,979.98 | 3,083,528,871.28 |
| Inner Mongolia Tongwei High-purity Crystalline Silicon Company | 17,558,954,593.62 | 9,806,952,195.80 | 9,806,952,195.80 | 10,663,010,692.14 | 6,596,764,472.94 | 3,496,533,270.77 | 3,496,533,270.77 | 3,479,298,068.24 |
| Yunnan Tongwei High-purity Crystalline Silicon Company | 10,090,209,647.84 | 5,619,169,611.98 | 5,619,169,611.98 | 3,994,695,927.84 | - | - | - | -175,888,103.79 |
(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). Notes on changes in equity interest in subsidiaries
"√ Applicable" "□ Not applicable"In May 2022, the Company acquired 0.36% of ownership in Sichuan Willtest Technology Co., Ltd.from minority shareholders with a consideration of 112,257.05 yuan. After the acquisition, the Company'sownership interest in Sichuan Willtest Technology Co., Ltd. was changed from 85.04% to 85.40%.In June 2022, Yongxiang Co., Ltd. (a wholly-owned subsidiary of the Company) acquired 7.25% ofownership interest in Sichuan Yongxiang Silicon Materials Co., Ltd. from minority shareholders with aconsideration of 8,407,758.12 yuan. After the acquisition, the ownership interest of Yongxiang Co., Ltd. inSichuan Yongxiang Silicon Materials Co., Ltd. was changed from 92.75% to 100.00%.In August 2022, the Company transferred a portion of its shares in Tongwei (Hainan) Aquatic ProductsCo., Ltd. where it previously held 100.00% shares to Sichuan Tongwei Food Co., Ltd. where it directly held
80.00% shares for a consideration of 188,470,100.00 yuan. As such, the equity percentage of the Companyin Tongwei (Hainan) Aquatic Products Co., Ltd. decreased from 100.00%to 80.00%.
(2). Effects of transactions on minority interest and interest attributable to owners of parentcompany"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Sichuan Willtest Technology Co., Ltd. | Sichuan Yongxiang Silicon Materials Co., Ltd. | Tongwei (Hainan) Aquatic Products Co., Ltd. | |
| Acquisition cost/disposal consideration | 112,257.05 | 8,407,758.12 | 37,694,020.00 |
| --Cash | 112,257.05 | 8,407,758.12 | 37,694,020.00 |
| --Fair value of non-cash assets | |||
| Total acquisition cost/disposal consideration | 112,257.05 | 8,407,758.12 | 37,694,020.00 |
| Less: Share of subsidiary's net assets based on the ownership interest acquired or disposed | 117,070.55 | - | 31,542,189.77 |
| Difference | -4,813.50 | 8,407,758.12 | 6,151,830.23 |
| Including: Adjustment of capital reserve | 4,813.50 | -8,407,758.12 | 6,151,830.23 |
| Adjustment of surplus reserve | |||
| Adjustment of undistributed profit |
Other notes"□ Applicable""√ Not applicable"
3. Interest in joint ventures or associates
"□ 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 due toselling on credit. Before signing a new contract, the Company assesses the credit risk of the new customerincluding its external credit rating, and in some cases, the creditworthiness certificate from bank (whenavailable). The Company sets a credit limit for each customer, this is the maximum limit that requires noadditional approval. On each balance sheet date, the carrying value of receivables of the Company presentsthe 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 to alow 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, 2022, thebalance of accounts receivable from top five customers was 2,913,773,300 yuan accounting for 60.64% ofthe period-end total balance of accounts receivable.
(II) Market risk
It is the risk the 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 “Notes: Foreign currency monetary items”.
(III) Liquidity risk
It is the risk of incurring losses resulting from the inability to meet payment obligations via delivery ofcash 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 of
cash flow, the Financial Department ensures the Company keeps adequate cash to pay debts under allreasonably expected conditions.As of December 31, 2022, 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 | 8,776.71 | 8,776.71 | |||
| Held-for-trading financial liabilities | 6,435.11 | 6,435.11 | |||
| Notes payable | 885,142.34 | 885,142.34 | |||
| Accounts payable | 1,101,816.15 | 1,101,816.15 | |||
| Other payables | 214,268.03 | 214,268.03 | |||
| Long-term borrowings | 139,136.06 | 663,159.40 | 772,649.60 | 266,933.38 | 1,841,878.44 |
| Bonds payable | 17,360.95 | 4,793.89 | 46,740.45 | 1,222,442.46 | 1,291,337.75 |
| Lease liabilities | 58,061.52 | 55,426.31 | 92,218.55 | 247,529.04 | 453,235.42 |
| Long-term payables | 57,325.87 | 35,573.87 | 59,173.65 | 11,949.04 | 164,022.43 |
| Total | 2,488,322.74 | 758,953.47 | 970,782.25 | 1,748,853.92 | 5,966,912.38 |
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 | 19,856,903.07 | 4,278,667,572.63 | 4,298,524,475.70 | |
| 1. Financial assets measured at fair value through current profit and loss | 19,856,903.07 | 4,278,667,572.63 | 4,298,524,475.70 | |
| (1) Debt investments | 4,278,667,572.63 | 4,278,667,572.63 | ||
| (2) Equity investments | ||||
| (3) Derivative financial assets | 19,856,903.07 | 19,856,903.07 | ||
| 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 | 154,196,557.28 | 154,196,557.28 | ||
| (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 | 13,066,496,368.98 | 13,066,496,368.98 | ||
| Other non-current financial assets | 3,146,248.25 | 3,146,248.25 | ||
| Total assets continuously measured at fair value | 19,856,903.07 | 17,502,506,747.14 | 17,522,363,650.21 | |
| (VI) Held-for-trading financial liabilities | 64,351,114.48 | 64,351,114.48 | ||
| 1. Financial liabilities measured at fair value through current profit and loss | 64,351,114.48 | 64,351,114.48 | ||
| Including: trading bonds issued | ||||
| Derivative financial liabilities | 64,351,114.48 | 64,351,114.48 | ||
| Others | ||||
| 2. Financial liabilities designated to be measured at fair value through current profit and loss | ||||
| Total liabilities continuously measured at fair value | 64,351,114.48 | 64,351,114.48 | ||
| 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. The basis for recognizing the market value of projects measured at first-level fair value on acontinuing and non-continuing basis"□ Applicable" "√ Not applicable"
3. Qualitative and quantitative information on valuation techniques and important parameters forprojects measured at second-level fair value on a continuing and non-continuing basis"√ Applicable" "□ Not applicable"
Debt instruments investments are structure deposits and wealth management products purchased bythe Company. The market value of projects measured at fair value on a continuing and non-continuing basisis recognized based on the value calculated according to the yield observable at commonly quoted
intervals.Derivative financial assets and derivative financial liabilities are paper gains and losses from FX forwardcontracts. The market value of projects measured at fair value on a continuing and non-continuing basis isrecognized based on the gains and loss calculated according to the observable parameters published by thebanks with which the contracts are signed.
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"Remaining term of receivables financing is short, which means its 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 its fairvalue 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 investeesand these amounts are not significant.
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"XII. Related parties and related-party transactions
1. 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 |
Description of the Company’s parent company
Tongwei Group Co., Ltd. is a limited liability company whose registered office and business office areboth at No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, legally represented by GuanYamei, with a registered capital of 200 million 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 modules; cell manufacturing; manufacturing of gas-fired, solar and similar-fueled homeappliances; aquaculture (the above items are limited to branches and subsidiaries); wholesale and retail ofgoods; livestock husbandry; services for promoting and applying technologies; services for software andinformation technology; import and export; development and operation of real properties; propertymanagement; lease; advertising; PV generation. (Any activity that requires approval under laws may not be
conducted until such approval is obtained from relevant authorities)
The ultimate controller of the Company is Liu Hanyuan.
2. Subsidiaries of the Company
Refer to Notes for details."√ Applicable" "□ Not applicable"Details of subsidiaries are in Note IX. Interest in other entities.
3. Joint ventures and associates
Details of important joint ventures and associates are in Notes."√ Applicable" "□ Not applicable"None.Other joint ventures or associates that concluded related-party transactions with the Company in the currentperiod or in prior periods that had caused balances"√ Applicable" "□ Not applicable"
| Name of joint venture or associate | Relationship with the Company |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Joint venture |
| Anhui Tech-bank Feed Technology Co., Ltd. | Associate |
| Anhui Tech-bank Biotechnology Co., Ltd. | Associate |
| Bohai Aquaculture Co., Ltd. | Associate |
| Suzhou Taiyangjing New Energy Co., Ltd. | Associate |
Other notes"□ Applicable""√ Not applicable"
4. 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 |
| 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 |
| Tongwei Microelectronics 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 |
5. 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 |
| Anhui Tech-bank Feed Technology Co., Ltd. | Raw materials, feed and others | 280,736,973.22 |
| Chengdu Tongyu Property Management Co., Ltd. | Property management and service fees | 54,388,845.77 | 40,633,560.03 |
| Chengdu Xinrui Technology Development Co., Ltd. | Machinery equipment, raw materials and others | 63,540,825.44 | 38,560,074.17 |
| Anhui Tech-bank Biotechnology Co., Ltd. | Raw materials, feed and others | 41,527,937.80 | |
| Zhuhai Haiwei Feed Co., Ltd. | Feed, packaging materials and others | 15,638,890.03 | 29,054,160.65 |
| Suzhou Taiyangjing New Energy Co., Ltd. | Equipment, raw materials and others | 15,166,701.94 | |
| Chengdu Tongwei Culture Media Co., Ltd. | Tongwei Newspaper, and related goods | 14,389,212.92 | 19,657,805.03 |
| Chengdu Tongwei Business Management Co., Ltd. | Spirits and beverages, gifts | 1,930,085.00 | 2,889,642.18 |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed, pre-mixed feed and others | 1,352,304.04 | 199,789.47 |
| Chengdu Haozhuren Pet Food Co., Ltd. | Feed and pet supplies | 39,906.75 | 1,725.61 |
| Chengdu Tongwei Property Co., Ltd. | Others | 11,428.57 |
Sale of goods/rendering of services"√ Applicable""□ Not applicable"
Unit: Yuan Currency: CNY
| Related party | Related-party transaction | Current amount | Prior amount |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | Feed, pre-mixed feed and others | 27,935,807.89 | 20,103,851.67 |
| Bohai Aquaculture Co., Ltd. and its subsidiaries | Feed, pre-mixed feed and others | 27,309,672.32 | |
| Zhuhai Haiwei Feed Co., Ltd. | Feed, pre-mixed feed and others | 23,507,534.89 | 90,079,786.26 |
| Anhui Tech-bank Feed Technology Co., Ltd. | Raw materials, feed and others | 3,777,900.77 | |
| Tongwei Group Co., Ltd. | Accessories, food and others | 1,221,676.18 | 1,519,237.15 |
| Chengdu Tongwei Business Management Co., Ltd. | Accessories, food and others | 1,043,945.36 | 533,148.01 |
| Chengdu Haozhuren Pet Food Co., Ltd. | Feed, pre-mixed feed and others | 500,845.04 | 285,335.10 |
| Sichuan Tongwei Shidi Property Co., Ltd. | Accessories, food and others | 479,042.85 | 1,690,814.66 |
| Chengdu Tongwei Culture Media Co., Ltd. | Accessories, food and others | 309,273.00 | |
| Tongwei Microelectronics Co., Ltd. | Accessories, food and others | 47,025.84 | |
| Suzhou Taiyangjing New Energy Co., Ltd. | Cells, raw materials and others | 26,548.68 | |
| Other subsidiaries of Tongwei Group Co., Ltd. | Others | 21,354.20 | 32,550.37 |
| Meishan Tongwei Property Co., Ltd. | Food, and coupon cards | 4,627.52 | 51,613.79 |
| Anhui Tech-bank Biotechnology Co., Ltd. | Feed | 4,099.20 |
| Chengdu Tongyu Property Management Co., Ltd. | Equipment, and technical services | 191,818.34 |
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. | Premises, buildings and machinery equipment | 5,888,379.75 | 6,285,474.88 |
| Tongwei Microelectronics Co., Ltd. | Premises and buildings | 1,988,885.68 |
The Company as lessee:
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Lessor name | Type of leased asset | Lease payments for short-term leases and low-value leases under a simplified approach (if applicable) | Variable lease payments not included into the measurement of lease liabilities (if applicable) | Paid rents | Interest expense on lease liabilities | Increased right-of-use assets | |||||
| Current amount | Prior amount | Current amount | Prior amount | Current amount | Prior amount | Current amount | Prior amount | Current amount | Prior amount | ||
| Chengdu Tongwei Property Co., Ltd. | Premises and buildings | 7,687,842.36 | 4,613,688.60 | 15,669,690.79 | 15,087,274.23 | 4,908,883.02 | 5,503,281.85 | 3,213,254.39 | |||
| Tongwei Group Co., Ltd. | Premises and buildings | 110,194.28 | 16,325.26 | 1,121,075.99 | 1,121,075.99 | 119,371.34 | 154,119.01 | ||||
| Chengdu Tongyu Property Management Co., Ltd. | Premises and buildings | 88,073.40 | 95,119.27 | ||||||||
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 or not |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 19,000,000.00 | August 12, 2022 | March 24, 2023 | No |
| Sichuan Tongwei Green Electricity Co., Ltd. | 18,634,514.60 | January 17, 2022 | January 13, 2023 | No |
The Company has provided a guarantee limited to 55 million yuan for the debt of BioMar Tongwei(Wuxi) Biotech Co., Ltd. (one of its joint ventures) made from HSBC Bank (China) Co., Ltd. As ofDecember 31, 2022, the borrowing balance in HSBC Bank (China) Co., Ltd. was 19 million yuan.The Company has provided a guarantee limited to 90 million yuan for the debt incurred in a period bySichuan Tongwei Green Electricity Co., Ltd. (one of its subsidiaries). As of December 31, 2022, the debtowned by Sichuan Tongwei Green Electricity Co., Ltd. to its trading partners was 18,634,500 yuan.As of December 31, 2022, the Company had no related-party guarantees other than the above ones and thefinancing 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 or not |
| Tongwei Group Co., Ltd. | 100,119,698.27 | April 28, 2022 | January 31, 2023 | No |
| Tongwei Group Co., Ltd. | 254,304,033.62 | September 27, 2022 | October 26, 2023 | No |
| Tongwei Group Co., Ltd. | 20,652,277.82 | October 19, 2022 | September 20, 2023 | No |
| Tongwei Group Co., Ltd. | 455,407.94 | June 01, 2022 | December 01, 2023 | No |
| Tongwei Group Co., Ltd. | 30,258,194.44 | August 26, 2022 | August 26, 2023 | No |
| Tongwei Group Co., Ltd. | 2,704,825.01 | August 18, 2022 | December 21, 2023 | No |
| Tongwei Group Co., Ltd. | 200,000,000.00 | April 16, 2021 | April 15, 2024 | No |
| Tongwei Group Co., Ltd. | 300,000,000.00 | April 28, 2022 | April 27, 2024 | No |
| Tongwei Group Co., Ltd. | 480,000,000.00 | October 19, 2022 | October 18, 2025 | No |
| Tongwei Group Co., Ltd. | 235,000,000.00 | April 07, 2022 | April 07, 2025 | No |
| Tongwei Group Co., Ltd. | 499,970,000.00 | June 01, 2022 | May 30, 2024 | No |
| Tongwei Group Co., Ltd. | 230,000,000.00 | August 26, 2022 | May 29, 2025 | No |
| Tongwei Group Co., Ltd. | 590,000,000.00 | August 05, 2022 | July 29, 2025 | No |
| Tongwei Group Co., Ltd. | 270,000,000.00 | September 26, 2022 | September 26, 2025 | No |
| Tongwei Group Co., Ltd. | 697,000,000.00 | August 18, 2022 | August 17, 2025 | No |
| Tongwei Group Co., Ltd. | 100,000,000.00 | September 27, 2021 | September 26, 2024 | No |
Note on related-party guarantees"□ Applicable""√ Not applicable"
(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 | 15,586.42 | 3,009.97 |
(8). Other related-party transactions
"□ Applicable" "√ Not applicable"
6. Accounts receivable and payable from and to related parties
(1). Receivable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Related party | Closing balance | Opening balance | ||
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 12,800.00 | |||
| Accounts receivable | Chengdu Tongwei Business Management Co., Ltd. | 4,550.00 | |||
| Advances to suppliers | Anhui Tech-bank Feed Technology Co., Ltd. | 6,376,445.84 | 532,545.20 | ||
(2). Payable
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Related party | Closing book balance | Opening book balance |
| Accounts payable | Chengdu Xinrui Technology Development Co., Ltd. | 46,532,808.36 | 35,843,000.82 |
| Accounts payable | Suzhou Taiyangjing New Energy Co., Ltd. | 15,717,420.87 | |
| Accounts payable | Chengdu Tongwei Culture Media Co., Ltd. | 4,386,999.62 | 6,851,067.39 |
| Accounts payable | Anhui Tech-bank Feed Technology Co., Ltd. | 2,426,111.30 | 4,920,062.20 |
| Accounts payable | Anhui Tech-bank Biotechnology Co., Ltd. | 800,840.00 | 2,122,411.00 |
| Accounts payable | Chengdu Tongyu Property Management Co., Ltd. | 142,900.00 | |
| Accounts payable | Zhuhai Haiwei Feed Co., Ltd. | 11,712.20 | |
| Contract liabilities | Meishan Tongwei Property Co., Ltd. | 36,728.00 | 50,000.00 |
| Contract liabilities | Chengdu Low-carbon Urban Investment Co., Ltd. | 2,870.00 | 2,870.00 |
| Contract liabilities | Anhui Tech-bank Feed Technology Co., Ltd. | 88,843.13 | |
| Contract liabilities | Chengdu Tongyu Property Management Co., Ltd. | 2,099.81 | |
| Other payables | Chengdu Tongwei Culture Media Co., Ltd. | 2,853,250.00 | 40,000.00 |
| Other payables | Chengdu Xinrui Technology Development Co., Ltd. | 3,757,800.00 | |
| Other payables | Chengdu Tongwei Business Management Co., Ltd. | 3,360.00 | |
| Lease liabilities (including those due within one year) | Chengdu Tongwei Property Co., Ltd. | 103,407,308.75 | 145,395,418.74 |
| Lease liabilities (including those due within one year) | Tongwei Group Co., Ltd. | 2,630,318.79 | 3,464,362.08 |
The Company coordinates funds of joint ventures and calculates interest according to the benchmarkrate on one-year loan specified by the People's Bank of China. The interest paid by the Company is asbelow:
| Related party | Current amount | Prior amount |
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 1,994.51 | |
| Total | 1,994.51 |
7. Related-party commitments
"□ Applicable" "√ Not applicable"
8. Others
"□ Applicable" "√ Not applicable"
XIII. 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"
XIV. 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, 2022, the Company had the following outward guarantees and the post-daterepayments of guaranteed borrowings and recovery of guaranteed sales on credit:
1) Guarantees for farmers who borrowed money from financial institutions for purchasing Tongwei Feedand building rooftop powerplants:
Unit: 10,000 Yuan Currency: 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 | January 01, 2022 | December 16, 2023 | 12,985.20 | 8,743.19 |
| Tongwei Agricultural Finance Guarantee Co., Ltd. Provided guarantees for farmers who borrowed money from financial institutions for building rooftop powerplants | September 15, 2017 | May 31, 2028 | 1,792.11 | 75.51 |
| Total | 14,777.31 | 8,818.70 |
Note: As of December 31, 2022, the balance of repayment made by Tongwei Agricultural Finance
Guarantee Co., Ltd. for behalf of guaranteed parties was 18,552,000 yuan. It was trying to recover thebalance.
2) Tongwei Co., Ltd. has provided the following guarantees for its strategic partners:
Unit: 10,000 Yuan Currency: CNY
| Guarantor | Guaranteed party | Guaranteed amount | Guarantee commencement date | Guarantee expiry date | Guarantee fulfilled completely or not |
| The Company | Guangdong Dajia Food Co., Ltd. | 3,500.00 | October 13, 2022 | March 01, 2023 | No |
| The Company | Jiangxi Junshanhu Ecologic Agriculture Development Co., Ltd. | 1,900.00 | July 13, 2022 | April 15, 2023 | No |
The Company had no important matters or contingences other than the above- mentioned ones thatrequired disclosure as of December 31, 2022.
(2). Note on no important contingencies that require disclosure
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
XV. 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 | 12,866,561,945.23 |
| Declared profit or dividend |
The Company will distribute profit for the year 2022 based on the its total share capital on the recorddate. A cash dividend of 28.58 yuan per 10 shares (including tax) will be distributed to all shareholders. Asof December 31, 2022, the total share capital of the Company was 4,501,946,097 shares, based on whichthe total cash dividend to be distributed is 12,866,561,945.23 yuan (including tax). If there is any change inthe total share capital before the record date, the total dividend amount will remain unchanged, and thedividend per share will be adjusted accordingly. The above profit distribution proposal will be submitted tothe Company’s general meeting for approval before execution.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note on other post balance sheet events
"□ Applicable" "√ Not applicable"
XVI. 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 for determining reporting segments and accounting policies applicable to reportingsegments"√ 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 followingconditions: ①it can earn revenues and incur expenses in daily activities; ② its operating results arereviewed regularly by the management to make decisions about resources to be allocated to the componentand assess its performance; ③ accounting information relating to financial position, operating results andcash flow about the component are available to the Company through analysis. Two or more operatingsegments that bear similar economic characteristics and meet certain conditions can be combined into oneoperating segment.The Company classifies reporting segments based on operating segments with operating revenue, operatingcost, 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 | 87,829,523,481.54 | 11,335,603,425.76 | 119,853,940,150.79 | -73,775,273,426.90 | 145,243,793,631.19 |
| Total liabilities | 49,732,811,639.21 | 6,218,360,071.36 | 68,757,053,082.09 | -52,709,664,977.23 | 71,998,559,815.43 |
| Operating revenue | 31,646,055,679.69 | 109,826,328,708.82 | 141,472,384,388.51 | ||
| Operating cost | 29,147,668,534.83 | 58,106,965,979.28 | 87,254,634,514.11 |
(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, 2022, Tongwei Group Co., Ltd. held 1,974,022,515 shares in the Company ofwhich, 437,000,000 were pledged for financing purpose.
(2) Impact of bill pool 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, banker's acceptance that are undueare pledged by the Company for issuing banker's acceptances payable to pay suppliers, leading tosignificance increase in banker's acceptances payable and receivable. At the end of 2022, the balances ofbanker's acceptances receivable and payable reached 13,066,496,400 yuan and 8,840,732,400 yuanrespectively, accounting for 9.00% of total assets and 12.28% of total liabilities, having impacted the L/Aratio by 3.27 ppts. Refer to the following table for details (unit: 10,000 yuan).
| Item | Consolidated amount | Effect | Amount net of effect |
| Total current assets | 7,551,054.46 | -884,073.24 | 6,666,981.22 |
| Total non-current assets | 6,973,324.90 | 6,973,324.90 | |
| Total assets | 14,524,379.36 | -884,073.24 | 13,640,306.12 |
| Total current liabilities | 3,635,734.79 | -884,073.24 | 2,751,661.55 |
| Total non-current liabilities | 3,564,121.19 | 3,564,121.19 | |
| Total liabilities | 7,199,855.98 | -884,073.24 | 6,315,782.74 |
| L/A ratio | 49.57% | 46.30% |
(3) Loss from scrap of non-current assets
In order to improve asset utilization, the Company eliminated some production equipment that couldnot be used normally due to aging, high failure rate, and damage. In 2022, the Company incurred a fixedasset scrap loss of 118,977.15 yuan, mainly due to the upgrading and renovation of some production linesfor small-sized solar cells to adapt to market demand. During the upgrading process, equipment that wasdismantled and could no longer be used was scrapped.
(4) Impairment of fixed assets
If the carrying value of a fixed asset is greater than its recoverable amount, an impairment provisionequaling to the difference of the two shall be established. Assessments showed that the recoverable amountof production lines for small sized solar cells and other relevant fixed assets was lower than the carryingvalue, a total provision for important of fixed assets of 1,582,908,700 was established.
The photovoltaic industry is developing rapidly, with technology, products, and market demandevolving quickly. Since 2022, the market share of small-sized solar cells has been decreasing with theprofitability declining. Large-sized solar cells have become the mainstream product sought after in themarket. There is great uncertainty about the expected future profitability and survival space of small-sizedsolar cells. Based on the principle of prudence, the Company evaluated production lines for small-sizedsolar cells in the middle and at the end of 2022. For the difference between the expected future recoverableamount and the lower carrying value, the Company provided fixed asset impairment.
(5) Leases
The Company as lessee:
Unit: 10,000 Yuan Currency: CNY
| Item | Amount |
| Interest expense on lease liabilities | 13,841.70 |
| Short-term lease expense subject to simplified treatment carried into relevant assets or current profit and loss | 3,197.84 |
| 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) | |
| Variable lease payments not included into the measurement of lease liabilities carried into relevant assets or current profit and loss | |
| Income received from subleases of right-of-use rights | 22,187.67 |
| Total cash outflows relating to leases | 79,474.96 |
| Relevant gain or loss on leasebacks |
XVII. Notes to main items of parent's financial statements
1. Accounts receivable
(1). Disclosure by age
"□ Applicable" "√ Not applicable"
(2). Disclosure by method for creation of provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Carrying value | Book 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 | 100.00 | 3,022,016.86 | 6.91 | 40,695,659.25 | |||||
| Including: | ||||||||||
| Group 4 | 43,717,676.11 | 100.00 | 3,022,016.86 | 6.91 | 40,695,659.25 | |||||
| Total | / | / | 43,717,676.11 | 100.00 | 3,022,016.86 | 6.91 | 40,695,659.25 | |||
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 model for expected credit loss:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Change in current period | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Bad debt provision for accounts receivable | 3,022,016.86 | 3,357,100.25 | -6,379,117.11 | |||
| Total | 3,022,016.86 | 3,357,100.25 | -6,379,117.11 | |||
Note: Other changes are due to conversion of branches to subsidiaries.Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(4). Accounts receivable written off in the 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"
(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 continuinginvolvement"□ 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 | 22,391,469,716.10 | 20,560,977,497.02 |
| Total | 22,391,469,716.10 | 20,560,977,497.02 |
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 book balance |
| Within 1 year | |
| In which: Within 1 year | |
| Within 1 year | 23,202,309,572.09 |
| Within 1 year | 23,202,309,572.09 |
| 1- 2 years | 1,046,705.41 |
| 2- 3 years | |
| Over 3 years | 157,882.00 |
| Total | 23,203,514,159.50 |
(2). Classification by nature of payment
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Payment type | Closing book balance | Opening book balance |
| Current accounts with related parties | 23,201,234,084.93 | 21,267,261,376.21 |
| Performance bond | 1,403,687.41 | 43,495,417.81 |
| Others | 876,387.16 | 11,410,166.54 |
| Total | 23,203,514,159.50 | 21,322,166,960.56 |
(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 January 01, 2022 | 761,189,463.54 | 761,189,463.54 | ||
| The Jan 1, 2022 balance during the current period | ||||
| -- converted into stage II | ||||
| -- converted into stage III | ||||
| -- reversed into stage II |
| -- reversed into stage I | ||||
| Creation in the current period | 53,642,310.18 | -113,076.30 | 53,529,233.88 | |
| Reversal in the current period | ||||
| Clear in the current period | ||||
| Write-off in the current period | 113,076.30 | 113,076.30 | ||
| Other changes | -2,561,177.72 | -2,561,177.72 | ||
| Balance on December 31, 2022 | 812,044,443.40 | 812,044,443.40 |
Note on significant changes in balances of other receivables for which their provisions were changed in thecurrent period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financialinstruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Category | Opening balance | Change in current period | Closing balance | |||
| Provision | Recovered or reversed | Cleared or written off | Other changes | |||
| Other receivables | 761,189,463.54 | 53,529,233.88 | 113,076.30 | -2,561,177.72 | 812,044,443.40 | |
| Total | 761,189,463.54 | 53,529,233.88 | 113,076.30 | -2,561,177.72 | 812,044,443.40 | |
Significant amounts recovered or reversed in the current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in the current period
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Written off amount |
| Other receivables written off in the current period | 113,076.30 |
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 | Others | 113,076.30 | The payment is expected unrecoverable | Approval under due procedures | No |
| Total | / | 113,076.30 | / | / | / |
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 | 3,781,666,877.72 | Within 1 year | 16.30 |
| Tongwei Solar (Hefei) Co., Ltd. | Current accounts with related parties | 2,879,719,274.78 | Within 1 year | 12.41 | |
| Tongwei Solar (Jintang) Co., Ltd. | Current accounts with related parties | 996,997,747.79 | Within 1 year | 4.30 | |
| Bengbu Tech-bank Feed Technology Co., Ltd. | Current accounts with related parties | 972,129,646.04 | Within 1 year | 4.19 | 14,617,801.17 |
| Tongwei Holdings PTE. Ltd. | Current accounts with related parties | 922,162,472.40 | Within 1 year | 3.97 | |
| Total | / | 9,552,676,018.73 | / | 14,617,801.17 |
(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 continuinginvolvement"□ 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 | ||||
| Book balance | Impairment provision | Carrying value | Book balance | Impairment provision | Carrying value | |
| Investments into subsidiaries | 21,201,717,905.80 | 126,454,000.00 | 21,075,263,905.80 | 17,022,660,757.00 | 43,292,356.80 | 16,979,368,400.20 |
| Investments into associates and joint ventures | 106,166,812.24 | 106,166,812.24 | 430,587,718.26 | 430,587,718.26 | ||
| Total | 21,307,884,718.04 | 126,454,000.00 | 21,181,430,718.04 | 17,453,248,475.26 | 43,292,356.80 | 17,409,956,118.46 |
(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 | ||||
| Shandong Tongwei Feed Co., Ltd. | 703,760.04 | 703,760.04 | ||||
| Shashi Tongwei Feed Co., Ltd. | 21,851,065.30 | 21,851,065.30 | ||||
| Chengdu Tongwei Animal Nutrition Technology Co., Ltd. | 11,605,910.79 | 11,605,910.79 | ||||
| Yuanjiang Tongwei Feed Co., Ltd. | 70,858,072.03 | 70,858,072.03 | ||||
| Changchun Tongwei Feed Co., Ltd. | 10,585,208.09 | 10,585,208.09 | ||||
| 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 | ||||
| Xiamen Tongwei Feed Co., Ltd. | 13,752,585.43 | 13,752,585.43 | ||||
| Wuhan Tongwei Feed Co., Ltd. | 16,479,438.23 | 16,479,438.23 | ||||
| Zaozhuang Tongwei Feed Co., Ltd. | 18,987,038.58 | 18,987,038.58 | ||||
| Nanning Tongwei Feed Co., Ltd. | 28,978,368.63 | 28,978,368.63 | ||||
| Tianjin Tongwei Feed Co., Ltd. | 14,700,000.00 | 55,000,000.00 | 69,700,000.00 | |||
| Huaian Tongwei Feed Co., Ltd. | 10,599,481.76 | 10,599,481.76 | ||||
| Jieyang Tongwei Feed Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Chengdu Ronglai Tongwei Feed Co., Ltd. | 16,000,000.00 | 16,000,000.00 | ||||
| Langfang Tongwei Feed Co., Ltd. | 15,000,000.00 | 15,000,000.00 | ||||
| Tongwei (Hainan) Aquatic Products Co., Ltd. | 151,859,769.84 | 151,859,769.84 | ||||
| Hainan Haiyi Aquatic Products Feed Co., Ltd. | 85,711,797.01 | 85,711,797.01 | ||||
| Yangzhou Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Panzhihua Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 |
| Qianxi Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Lianyungang Tongwei Feed Co., Ltd. | 80,000,000.00 | 80,000,000.00 | ||||
| Chongqing Changshou Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Nantong Bada Feed Co., Ltd. | 57,372,600.00 | 57,372,600.00 | ||||
| Foshan Tongwei Feed Co., Ltd. | 30,095,100.00 | 30,095,100.00 | ||||
| Zibo Tongwei Feed Co., Ltd. | 3,800,000.00 | 3,800,000.00 | - | |||
| Tongwei (Dafeng) Feed Co., Ltd. | 49,900,133.00 | 49,900,133.00 | ||||
| Kunming Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| 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 | ||||
| Ningxia Yinchuan Tongwei Feed Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Chengdu Tongwei Aquaculture Technology Co., Ltd. | 9,245,867.39 | 10,000,000.00 | 19,245,867.39 | |||
| Chengdu Tongwei Sanxin Pharmaceutical Co. Ltd. | 7,000,000.00 | 7,000,000.00 | ||||
| Foshan Nanhai Tongwei Aquatic Products Technology Co., Ltd. | 10,000,000.00 | 10,000,000.00 | 3,940,000.00 | |||
| Zibo Tongwei Food Co., Ltd. | 50,000,000.00 | 20,736,000.00 | 70,736,000.00 | 12,420,000.00 | ||
| 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 | ||||
| Chengdu Tongwei Automation Equipment Co., Ltd. | 12,103,854.14 | 12,103,854.14 | ||||
| Haerbin Tongwei Feed Co., Ltd. | 20,000,000.00 | 25,000,000.00 | 45,000,000.00 | |||
| Nanjing Tongwei Aquaculture Technology Co., Ltd. | 10,000,000.00 | 160,000,000.00 | 170,000,000.00 | |||
| 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 | ||||
| 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 | 12,000,000.00 | 17,000,000.00 | |||
| 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 | ||||
| Sichuan Tongwei Food Co., Ltd. | 64,000,000.00 | 64,000,000.00 | ||||
| Hainan Tongwei Biotechnology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Hanshou Tongwei Feed Co., Ltd. | 27,900,000.00 | 17,100,000.00 | 45,000,000.00 | |||
| Yongxiang Co., Ltd. | 6,388,060,739.07 | 2,299,000,000.00 | 8,687,060,739.07 | |||
| Tongwei Solar (Hefei) Co., Ltd. | 2,884,624,940.43 | 2,884,624,940.43 | 86,073,100.00 | 110,094,000.00 | ||
| 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. | 21,448,836.49 | 112,257.05 | 21,561,093.54 | |||
| 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 Energy Co., Ltd. | 8,000,000.00 | 8,000,000.00 | ||||
| Sichuan Tongwei Feed Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd. | 50,685,000.00 | 50,685,000.00 | ||||
| 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 | ||||
| Nanchang Tongwei Biotechnology Co., Ltd. | 96,000,000.00 | 96,000,000.00 | ||||
| Yangjiang Haiyi Biotechnology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| 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 | 2,099,038.85 | 943,151,057.14 | |||
| 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 | ||||
| Shenyang Tongwei Biotechnology Co., Ltd. | 46,000,000.00 | 46,000,000.00 | ||||
| Tongwei Agriculture Development Co., Ltd. | 4,463,391,837.20 | 4,463,391,837.20 | ||||
| Tongwei Solar (Hainan) Co., Ltd. | 100,000,000.00 | 100,000,000.00 | ||||
| Guangdong Tongwei Biotechnology Co., Ltd. | 1,000,000.00 | 1,000,000.00 | ||||
| Hefei Tongwei Biotechnology Co., Ltd. | 38,000,000.00 | 38,000,000.00 | ||||
| Shaoxing Tongwei Biotechnology Co., Ltd. | 50,000,000.00 | 50,000,000.00 | ||||
| Huanggang Tongwei Biotechnology Co., Ltd. | 30,000,000.00 | 30,000,000.00 | ||||
| Changde Tongwei Biotechnology Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Huizhou Tongwei Biotechnology Co., Ltd. | 80,000,000.00 | 80,000,000.00 | ||||
| Nanchang Tongwei Feed Co., Ltd. | 20,000,000.00 | 20,000,000.00 | ||||
| Chengdu Tongwei Biotechnology Co., Ltd. | 60,000,000.00 | 60,000,000.00 | ||||
| Total | 17,022,660,757.00 | 7,509,439,133.10 | 3,330,381,984.30 | 21,201,717,905.80 | 86,073,100.00 | 126,454,000.00 |
Note 1: The decrease in the long-term equity investment in Tongwei (Hainan) Aquatic Food Co., Ltd. was due to the transfer of the Company's equity to SichuanTongwei Food Co., Ltd., a subsidiary for which the Company is the controlling shareholder; the decrease in the long-term equity investment in Tongwei Industry(Tibet) Co., Ltd. and Hengshui Tongwei Feed Co., Ltd. was due to the cancellation of these two companies in the current period; and the decrease in the long-termequity investment in other companies was due to the transfer of the Company's equity to Tongwei Agriculture Development Co., Ltd., a wholly-owned subsidiary ofthe Company.Note 2: The opening provision for impairment of the long-term equity investment in Hainan Haiyi Aquatic Seed Co., Ltd., i.e., 2,911,456.80 yuan, which has beentransferred together with the equity to Tongwei Agriculture Development Co., Ltd.
(2). Investments into associates and joint ventures
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Investment Unit | Opening balance | Change in current period | 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 | |||||||||||
| Maoming Tongwei Jiuding Feed Co., Ltd. | 6,411,699.14 | -902,593.03 | 233,020.64 | 5,276,085.47 | |||||||
| BioMar Tongwei (Wuxi) Biotech Co., Ltd. | 105,106,774.23 | -1,283,158.59 | -103,823,615.64 | ||||||||
| Sub-total | 111,518,473.37 | -2,185,751.62 | 233,020.64 | -103,823,615.64 | 5,276,085.47 | ||||||
| II. Associates | |||||||||||
| Bohai Aquaculture Co., Ltd. | 99,603,329.66 | 2,136,863.18 | -682,837.29 | -166,628.78 | 100,890,726.77 | ||||||
| Haimao Seed Industry Technology Co., Ltd. | 136,707,219.24 | -1,052,635.98 | -135,654,583.26 | ||||||||
| Anhui Tech-bank Feed Technology Co., Ltd. | 59,356,017.38 | 824,225.02 | -60,180,242.40 | ||||||||
| Anhui Tech-bank Biotechnology Co., Ltd. | 23,402,678.61 | 1,284,053.99 | -24,686,732.60 | ||||||||
| Sub-total | 319,069,244.89 | 3,192,506.21 | -682,837.29 | -166,628.78 | -220,521,558.26 | 100,890,726.77 | |||||
| Total | 430,587,718.26 | 1,006,754.59 | -682,837.29 | -166,628.78 | 233,020.64 | -324,345,173.90 | 106,166,812.24 | ||||
Other notes:
Other changes are due to the Company's transfer of a portion of its equity to Tongwei Agriculture Development Co., Ltd.
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 | 3,346,595,726.56 | 2,972,307,955.86 | 4,554,199,847.43 | 3,998,297,572.06 |
| Other operating activities | 20,614,932.76 | 8,876,652.28 | 190,862,521.70 | 139,776,936.95 |
| Total | 3,367,210,659.32 | 2,981,184,608.14 | 4,745,062,369.13 | 4,138,074,509.01 |
(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 | 10,781,212,600.00 | 5,047,065,159.73 |
| Gain on long-term equity investment under equity method | 1,006,754.59 | -10,820,494.85 |
| Gain on disposal of long-term equity investment | 45,402,735.74 | 82,577,082.35 |
| 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 | 89,935,380.67 | 23,368,421.89 |
| Discount interest on accounts receivable financing | -111,156,141.57 | -15,207,023.08 |
| Total | 10,806,401,329.43 | 5,126,983,146.04 |
Other notes:
None.
6. Others
"□ Applicable" "√ Not applicable"
XVIII. Additional information
1. Current non-recurring gains and losses
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
| Item | Amount | Remarks |
| Profit and loss on disposal of non-current assets | -12,315,759.20 | |
| 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) | 387,940,097.37 | |
| In addition to the effective hedging business related to the normal business | -130,149,063.69 |
| 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 | ||
| Non-operating revenue and expenses other than aforementioned items | -1,235,055,137.99 | |
| Less: Effects of income tax | -156,512,227.43 | |
| Effects of minority interest | -12,141,142.59 | |
| Total | -820,926,493.49 |
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 | Weighted average return on net assets (%) | Earnings per share | |
| Basic earnings per share | Diluted earnings per share | ||
| Net profit attributable to common shareholders of the Company | 52.36 | 5.7149 | 5.4889 |
| Net profit excluding non-recurring profits and losses attributable to common shareholders of the Company | 54.03 | 5.8973 | 5.6623 |
3. Differences between accounting data under domestic and foreign accounting standards"□ Applicable""√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chair: Liu ShuqiSubmission date approved by the board of directors: April 21,2023
Revision
"□ Applicable" "√ Not applicable"