意见反馈 手机随时随地看行情
  • 公司公告

公司公告

阳光电源:2021年年度报告(英文简版)2022-06-22  

                                                           Sungrow Power Supply Co., Ltd.
                     2021 Annual Report (Concise Version in English)




Sungrow Power Supply Co., Ltd.

      2021 Annual Report

(Concise Version in English)




                                                                  1
                                                                                    Sungrow Power Supply Co., Ltd.
                                                                      2021 Annual Report (Concise Version in English)




               Section I Important Notes, Contents and Definitions

The Board of Directors, the Board of Supervisors, directors, supervisors and executives of the Company
hereby guarantee that the information presented in this annual report is truthful, accurate and integrate, free
of any false records, misleading statements or material omissions, and assume individual and joint legal
liabilities thereof.
Cao Renxian as the President of the Company, Li Guojun as the Chief Accountant, and Li Guojun as the
head of accounting department (accounting supervisor) hereby guarantee the truthfulness, integrity, and
accuracy of financial statements in this annual report.

 Director(s) who did not attend
                                          Position                  Reason                      Delegate
  the board meeting in person
            Liu Zhen                      Director                  Personal                       No

For detailed reasons of performance decline and the Company's countermeasures for improving profitability,
please refer to “Overview” of IV. Core Business Analysis and “(2) Operating Plan” of XI. Prospects of the
Company’s Future Development in Section III Management’s Discussion and Analysis.
Contents in this report concerning future plans, performance forecasts, and etc., do not constitute any
commitment made by the Company to any investor or related party. Investors and related parties should
maintain adequate risk awareness and understand the possible difference between plans, forecasts, and
commitments.
(1) Policy-related risks
Although technologies related to renewable energy power generation are still evolving and grid parity has
been achieved in most regions around the world, there are still a few regions where the power generation cost
or the on-grid electricity price is higher than that of fossil energy, and the unit electricity cost per
kilowatt-hour from wind-solar storage applications maintains relatively high. In addition, considering the
various constraints including grid consumption, intermittent fluctuations in new energy availability, as well
as land and taxation, policy support and encouragement from governments are still necessary. Since the
supportive policies are formulated by the governments of various countries, while the global trend of energy
conservation and emission reduction remains unchanged, major changes in the macro economies of major
markets or relevant supportive policies will affect the growth pace of the industry and the Company’s
profitability to a certain extent. To this end, on the basis of maintaining the leading position in the domestic
market, the Company makes market explorations overseas, and strives to achieve a global footprint to
minimize the impact of policy fluctuations within a single country. Apart from the PV inverter business and
the PV power station investment and development business, the Company makes active attempts in other
business growth points, such as energy storage converters, electric vehicle motor controllers and other new
energy oriented applications based on power electronics technologies, as well as in new business sections
such as energy storage system integration and wind farm development, to dilute the impact of single-industry
(such as PV) policies.
(2) Risk of gross margin reduction due to intensified competition
As the world's largest PV inverter manufacturer, the Company's core product, PV inverters, enjoys an

                                                                                                                   2
                                                                                   Sungrow Power Supply Co., Ltd.
                                                                     2021 Annual Report (Concise Version in English)

obvious market advantage. However, the huge potential of domestic and foreign markets has also attracted
fierce market competition. If the Company fails to maintain the leading edge in technological innovation,
new product development, and cost control, the products will face the risk of gross margin declination. As
such, the Company needs to further accelerate new product upgrade and product differentiation through
R&D innovation and increasing R&D investment, so as to provide customers with value-added services,
constantly introduce new products that create greater values for customers, and consolidate product
advantages in the market.
(3) Risk of collecting accounts receivables
As the domestic market grows rapidly, the Company puts more focus on product sales. In consideration of
the PV industry characteristics in China, such as subsidy arrearage, large project amount, and long payment
term, the Company's business growth at fast pace will lead to a quick increase of receivables and certain risks
in payment collection. In order to prevent credit risks and accelerate capital turnover, the Company
formulated strict credit management systems and sale-on-credit policies, and actively reduced the risk of
non-performing loans and bad accounts through legal actions.
(4) Risk of international trade frictions and the epidemic impact
Under the negative impact of intensified international trade frictions and the continuation of the COVID-19
epidemic, the global economy is under huge pressure of inclination, and governments are launching
monetary policies and other economic stimulation policies. While boosting the economy, such policies may
cause supply chain fluctuation, logistic efficiency reduction, and cost increase. The PV industry where the
Company is in also faces short-term pressures due to changes in demand tempo. The Company has
formulated a series of defensive measures and lean production plans to actively respond to the global
epidemic and expand the global market on the premise of ensuring the safety and health of employees. By
strengthening the global supply chain layout, improving supply chain management capabilities, the Company
makes every effort to reduce trade frictions and the epidemic impact, ensuring that the annual tasks are
completed on time.
(5) Risk of exchange rate fluctuation
USD, AUD and EUR are the three major currencies used for the Company's overseas revenue settlement.
The impact of exchange rate fluctuations is mainly reflected in the following two areas: a. Because of the
RMB exchange rate fluctuation, changes in operating income measured in local currency pose a direct
impact on the gross margin of main products; b. From the moment sales revenue is confirmed and accounts
receivable is generated to the moment of collecting foreign currency, the Company is subject to exchange
gains/losses from the fluctuations in the RMB exchange rate, which also directly affects the Company's
performance. On the foundation of normal operation and relying on specific businesses, the Company takes
various means, including hedging, continuous monitoring, and timely settling foreign currency sales to
reduce exchange-related loss and control operating risks.
(6) Risks in the supply chain of semiconductor components
Semiconductors used in the Company's power electronic devices mainly include power semiconductors and
chips that are mostly sourced from overseas since there are limited local supply and the performance of local
components are yet to be improved. With the rapid growth of new energy vehicles, renewable energy power
generation, 5G use cases, and charging infrastructure, plus the epidemic impact on the production capacity of
the above-mentioned manufacturers, semiconductors are facing certain risks of short supply and price
fluctuation. To this end, the Company has made plans in anticipation, established long-term strategic

                                                                                                                  3
                                                                                   Sungrow Power Supply Co., Ltd.
                                                                     2021 Annual Report (Concise Version in English)

partnerships with suppliers, and locked orders in advance, so as to get hold of the industry supply dynamics
and secure the supply chain to the maximum extent.
(7) Risks in construction management of PV power station investment and development projects
PV power station projects feature large amount of investment and short lead time. These projects not only
involve ground resources but also commercial roofs. For these projects, the investment decision-making is
quite challenging, and a lot of uncertainties exist in project engineering and implementation, which may lead
to project delays and jeopardize timely grid connection for power generation. While challenging the
Company's project management, the projects also require a huge amount of working capital. In response to
such risks, the Company makes cautious considerations when selecting new energy power generation
projects to prioritize those with better grid connection conditions, clearly communicated subsidy policies,
controllable installed cost and higher gross profit. Meanwhile, the Company further enhances engineering
management and improves project management level. After entering into sales contracts with customers, the
Company reinforces project construction management in a timely manner, adequately communicates with
customers on the progress, and adjusts the work schedule according to the result of communication, so that
the impact of project delay on the Company's production and operation is eliminated or alleviated to the most
extent. By providing project owners with safe, efficient and intelligent PV power stations that meet their
needs, the Company's reputation in PV power station investment and development is improved.
(8) Risk of module price increase
Module price increase may lead to a certain degree of delay in the installation of PV power stations the
Company invested and developed, thereby affecting the revenue and gross profit of the Company’s power
station investment and development business. In view of the overall supply and demand of the industry, as
the upstream production capacity is gradually released, the supply shortage will be further alleviated, the
module price will gradually fall back to a reasonable level, and the increase in global installed capacity will
be resumed.
The board meeting has deliberated and approved the following profit distribution proposal: Based on a base
quantity of 1,485,215,984 shares, a cash dividend of RMB 1.10 per 10 shares (tax inclusive) will be
distributed to all shareholders, no bonus share (tax inclusive) will be distributed, and no share distribution
from capital reserve.




                                                                                                                  4
                                                                                                                                         Sungrow Power Supply Co., Ltd.
                                                                                                                           2021 Annual Report (Concise Version in English)




                                                                                    Contents




Section I Important Notes, Contents and Definitions ..............................................................................................................................2

Section II Company Profile & Key Financial Indicators .........................................................................................................................9

Section III Management’s Discussion and Analysis ..............................................................................................................................14

Section IV Corporate Governance .........................................................................................................................................................46

Section V Environment and Social Responsibilities ..............................................................................................................................76

Section VI Significant Events ................................................................................................................................................................78

Section VII Changes in Shares and Information about Shareholders ..................................................................................................107

Section VIII Preference shares ............................................................................................................................................................120

Section IX Bonds.................................................................................................................................................................................121

Section X Financial Reports ................................................................................................................................................................122




                                                                                                                                                                                                  5
                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                  2021 Annual Report (Concise Version in English)




                                   Documents for Future Reference


1.   Accounting statements signed and stamped by the Legal Respective, the Chief Accountant, and the head of the accounting
     department (accounting supervisor) of the Company.
2.   The original Audit Report signed and stamped by the certified public accountant and stamped by the accounting firm.
3.   The originals of company documents and announcements publicly disclosed on websites designated by China Securities
     Regulatory Commission during the reporting period.
4.   Other relevant documents.




                                                                                                                               6
                                                                                      Sungrow Power Supply Co., Ltd.
                                                                        2021 Annual Report (Concise Version in English)




                                              Definitions


                        Term                                                  Definition

Sungrow, the Company                          Sungrow Power Supply Co., Ltd.

                                              Sungrow Renewables Development Co., Ltd., the Company's holding
Sungrow Renewables
                                              subsidiary

                                              The      Company's    holding     subsidiary,    previously   known    as
Sungrow Energy Storage Technology Co., Ltd.
                                              Sungrow-Samsung SDI Energy Storage Power Supply Co., Ltd.

                                              Solar photovoltaic effect, refers to the light-caused potential difference
PV                                            inside uneven semiconductors or combinations of semiconductors and
                                              metals

                                              One of the critical devices in a solar PV power generation system, which
Inverter, PV inverter                         converts DC power from solar cells into AC power that meets the grid
                                              power quality requirements

                                              Connect a number of parallel PV modules to the DC input of a centralized
                                              inverter for maximum power point tracking (MPPT), then connect them
Centralized PV inverter                       into the grid after inversion. With a relatively high power, it is mainly
                                              used in large-scale centralized ground PV power stations with uniform
                                              lighting and other centralized PV power generation systems

                                              Perform separate MPPT on several groups (in general 1 to 4 groups) of
                                              PV modules, and connect them into the AC grid after inversion. A string
String PV inverter                            inverter may have multiple MPPT modules. With a relatively low small
                                              power, it is mainly used in distributed power generation systems, and
                                              sometimes also in centralized PV power generation systems

                                              Power conversion devices between the energy storage batteries and the
                                              AC power grid, capable of charging and discharging the batteries. They
Energy storage converter
                                              are used in PV, power smoothing for wind power generation, peak load
                                              shifting, micro-grid and other scenarios

                                              Devices that convert the electric energy with unstable voltage frequency
                                              and amplitude generated by wind turbine generators under the actions of
Wind power converter
                                              natural wind into electric energy with stable frequency and amplitude that
                                              meets the grid requirements, and connect it to the grid.

                                              Distributed power supply units, that is, small and modular standalone
Distributed power supply                      power supplies ranging from several kilowatts to 50 MW that are
                                              environment-compatible

Energy storage                                Storage of electrical energy



                                                                                                                       7
                                                                                           Sungrow Power Supply Co., Ltd.
                                                                             2021 Annual Report (Concise Version in English)

                                                   One of the globally renowned testing and certification bodies and
UL
                                                   standard development bodies

                                                   A safety certification mark granted by the TüV Group to products, which
TüV
                                                   is widely recognized around the world

                                                   A certification that must be obtained by products entering the European
CE
                                                   market

                                                   A standard developed by the Italian State Power Board (Enel), which is
Enel-GUIDA
                                                   widely recognized in Italy

                                                   An Australian standard. PV modules and inverters must comply with this
AS4777                                             standard in order to be used in the design and installation of PV systems
                                                   in Australia

                                                   Abbreviation of the California Energy Commission. External power
CEC
                                                   supplies exported to California must obtain this certification

                                                   Canadian Standards Association, the largest non-profit organization for
CSA
                                                   defining industrial standards in Canada

                                                   One of the most experienced certification bodies in Europe with a high
VDE                                                reputation in the world that is directly involved in developing the German
                                                   national standards

IPD                                                Integrated product development management process

Watt (W), Kilowatt (kW), Megawatt (MW),            The unit of measure for power of electricity, in specific, 1 GW = 1,000
Gigawatt (GW)                                      MW = 1,000,000 kW = 1,000,000,000 W

RMB, 10K RMB, 100 million RMB                      Renminbi yuan, renminbi 10,000 yuan, renminbi 100 million yuan

Reporting period, current reporting period, this   January 1, 2021 to December 31, 2021
period




                                                                                                                            8
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)




              Section II Company Profile & Key Financial Indicators

I.    Company Profile

Stock abbreviation             Sungrow, 阳光电源                      Stock code                     300274

Name of the Company in
                               Sungrow Power Supply Co., Ltd.
Chinese

Abbreviation of the Company
                               阳光电源
in Chinese

Name of the Company in
                               Sungrow Power Supply Co., Ltd.
English (if any)

Abbreviation of the Company
                               Sungrow
in English (if any)

Legal representative           Cao Renxian

Registered address             No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province

Zip code of registered address 230088

Changes in the Company's
                               The registered address has not changed since the Company went public in 2011
registered address

Business address               No. 1699 Xiyou Road, High-tech Zone, Hefei, Anhui Province

Zip code of business address   230088

Company website                http://www.sungrowpower.com

E-mail                         dshms@sungrow.cn, kangml@sungrowpower.com


II. Contacts and Contact Information

                                                        Board Secretary                     Securities Affairs Representative

Name                                       Lu Yang                                     Kang Maolei

                                           No. 1699 Xiyou Road, High-tech Zone,        No. 1699 Xiyou Road, High-tech Zone,
Address
                                           Hefei, Anhui Province                       Hefei, Anhui Province

Phone                                      0551-65325617                               0551-65325617

Fax                                        0551-65327800                               0551-65327800

E-mail                                     dshms@sungrow.cn                            kangml@sungrowpower.com


III. Information Disclosure and Place of the Report

Website of the stock exchange specified for disclosing http://www.cninfo.com.cn


                                                                                                                                9
                                                                                                         Sungrow Power Supply Co., Ltd.
                                                                                           2021 Annual Report (Concise Version in English)

the Annual Report

Media and websites specified for disclosing the                China Securities Journal, Securities Times, Shanghai Securities News,
Annual Report                                                  Securities Daily

Place where the Annual Report is available for
                                                               Office of the Board of Directors
inspection


IV. Other Relevant Information

Accounting firm engaged by the Company

Name of the accounting firm                                    RSM China (Special General Partnership)

Business address of the accounting firm                        29/F, Block A, the Landmark, Shushan District, Hefei City, Anhui Province

Name of the undersigning accountants                           Wan Yunlong, Jiang Wei, Yao Na

Sponsor institution engaged by the Company for continuous supervision during the reporting period
√ Applicable □ Not Applicable

                                    Business address of sponsor                                                  Period of continuous
  Name of sponsor institution                                                 Sponsor representative
                                                 institution                                                           supervision

                                  Floors 27/28, China World
China International Capital       Office 2, No. 1 Jianguomenwai                                             October 22, 2021 to December
                                                                          Liu Chengli, Li Jizhe
Corporation Limited               Avenue, Beijing 100004, P.R.                                              31, 2023
                                  China

Financial advisor engaged by the Company for continuous supervision during the reporting period
□ Applicable √ Not Applicable


V. Key Accounting Data and Financial Indicators

Whether the Company performed a retroactive adjustment or restatement of previous accounting data
□ Yes √ No

                                                                   2021                   2020             YOY Change          2019

Operating income (RMB)                                         24,136,598,726.55    19,285,641,347.02          25.15% 13,003,331,783.65

Net profit attributable to shareholders of the
                                                                1,582,707,374.76     1,954,308,244.82          -19.01%       892,552,821.20
Company (RMB)

Net profit attributable to shareholders of the
Company after deducting non-recurring gains and                 1,334,589,366.45     1,846,326,102.70          -27.72%       905,373,089.13
losses (RMB)

Net cash flows from operating activities (RMB)                 -1,638,632,122.77     3,088,658,224.59         -153.05%     2,480,423,195.18

Basic earnings per share (RMB/share)                                        1.08                    1.34       -19.40%                  0.61

Diluted earnings per share (RMB/share)                                      1.08                    1.34       -19.40%                  0.61

Weighted average return on equity                                         13.05%                  20.36%        -7.31%               10.93%




                                                                                                                                           10
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

                                                        As at Dec. 31 2021    As at Dec. 31 2020 YOY Change As at Dec. 31 2019

Total assets (RMB)                                        42,840,130,915.46    28,002,933,994.86            52.98% 22,819,128,262.19

Net assets attributable to shareholders of the
                                                          15,655,063,485.71    10,455,904,743.14            49.72%    8,594,198,036.97
Company (RMB)

The lower of the Company's net profit including extraordinary and net profit excluding extraordinary is negative in the last three
fiscal years, and the audit report for the last year shows that uncertainties exist in the Company's business continuity
□ Yes √ No
The lower of net profit including extraordinary and net profit excluding extraordinary is negative
□ Yes √ No


VI. Key Financial Indicators by Quarter

                                                                                                                                 (in RMB)

                                                  Quarter 1             Quarter 2               Quarter 3                  Quarter 4

Operating income                                 3,346,740,239.11      4,863,465,081.98       7,163,450,542.91        8,762,942,862.55

Net profit attributable to shareholders
                                                  386,719,538.98         370,258,817.97        747,796,288.80               77,932,729.01
of the Company

Net profit attributable to shareholders
of the Company after deducting                    377,919,781.81         341,797,919.45        732,240,888.13              -117,369,222.94
non-recurring gains and losses

Net cash flows from operating
                                             -2,483,141,097.98          -646,758,724.60        -724,891,299.90        2,216,158,999.71
activities

Whether there are significant differences between above financial indicators or their sums and the relevant financial indicators in the
quarterly and half-year reports disclosed by the Company
□ Yes √ No


VII. Differences in Accounting Data between Chinese and Overseas Accounting Standards

1. Differences in the net profits and net assets disclosed in the financial statements as per the international
   accounting standards and China accounting standards

□ Applicable √ Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the international accounting
standards and China accounting standards.


2. Differences in the net profits and net assets disclosed in the financial statements as per the local
   (overseas) accounting standards and China accounting standards

□ Applicable √ Not Applicable
There is no difference in the net profits and net assets disclosed in the financial statements as per the local (overseas) accounting
standards and China accounting standards.


                                                                                                                                         11
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

VIII. Non-recurring Items and Their Gains/Losses

√ Applicable □ Not Applicable
                                                                                                                              (in RMB)

                           Item                          Amount in 2021 Amount in 2020        Amount in 2019         Remarks

Gains or losses from disposal of non-current
assets (including the write-off accrued for 198,734,481.06                       255,099.07      -5,796,490.26
impairment of assets)

Government grants accounted for, in the Gains or
losses for the current period (except for those
closely related to the Company’s normal business
                                                          110,269,947.66    103,595,912.36       77,034,220.05
operation, compliant with national policies and
regulations, and granted to a certain standard or at
a fixed amount)

Gains entitled to the Company when the
investment     cost   of     acquiring   subsidiaries,
associates or joint ventures is less than the fair           266,221.04                           1,120,717.01
value of identifiable net assets of invested unit at
the time of investment

Gains or losses from debt restructuring                     8,019,908.32

Gains or losses from changes in fair value arising
from holding trading financial assets and trading
financial liabilities, as well as investment gains
from disposal of trading financial assets, trading
                                                           12,598,837.40     15,060,054.04      -64,832,822.84
financial liabilities, and salable financial assets,
except    for the effective hedging business
associated with the Company’s normal business
operation

Reversal of impairment provisions for accounts
receivable which are separately tested for                  2,883,005.14
impairment

Other non-operational income and expenditure in
                                                             -198,891.28     11,538,157.44      -11,885,512.74
addition to the items listed above

Less: Income tax impact                                    42,695,728.48     19,730,145.34        6,863,960.83

Minority shareholders' equity impact (after tax)           41,759,772.55       2,736,935.45       1,596,418.32

Total                                                     248,118,008.31    107,982,142.12      -12,820,267.93           --

Details of other gains or losses that fit in the definition of extraordinary items:
□ Applicable √ Not Applicable
There are no other gains or losses in the Company that fit in the definition of extraordinary items.
Explanation on defining the extraordinary items listed in the Explanatory Announcement No. 1 on Information Disclosure for



                                                                                                                                   12
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

Companies Publicly Offering Securities - Extraordinary Items as recurring gains or losses
√ Applicable □ Not Applicable

                   Item                 Amount (RMB)                                         Reason

Equity gains from transfer of power                          Equity transfer of power station projects is one of the Company's
                                             31,546,616.20
station projects                                             day-to-day businesses

Gains from changes in fair value of                          Equity transfer of power station projects is one of the Company's
                                             65,706,834.00
power station projects in possession                         day-to-day businesses




                                                                                                                                 13
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)




                    Section III Management’s Discussion and Analysis

I.    Discussion and analysis of business situation

In the reporting period, due to unbalanced supply and demand in the upstream and downstream of the industrial chain, the long
lead-time of upstream capacity expansion, and the high installed capacity expected in the PV industry, the price of silicon materials
rose sharply, causing different price increases across the entire PV industry chain, including silicon wafers, cells, and modules.
According to data from the China Photovoltaic Industry Association, China's initial investment cost of PV systems in 2021 increased
by 4% year-on-year, marked the first increase in many years. Due to the price increase, installation schedules were postponed. The
National Energy Administration’s data shows that, in 2021, China’s newly installed PV capacity was 54.88 GW, a year-on-year
increase of 13.9%. According to the data of the International Renewable Energy Agency (IRENA), the global PV installed capacity
in 2021 was 133 GW, a very small year-on-year increase of 5.5% only.
In the context of global warming, green and low carbon has become a global consensus. Governments around the world have actively
released policies to promote the development and utilization of renewable energy. More than 170 countries around the world have
put forth Zero Carbon or Carbon Neutrality targets, and the development of renewable energy such as PV and wind power has been
globally acknowledged. In 2022, as the silicon material production capacity is gradually released, the supply shortage will be
alleviated, the market price of silicon material is expected to drop, and PV power generation will become the most competitive power
supply in more and more countries. Driven by the carbon neutrality goals, the clean energy transformation and green resurrection
across many countries, a rapid growth is expected in the average annual installed capacity of global PV during China’s 14th
Five-Year Plan period.


II. Business Scope in the Reporting Period

Sungrow Power Supply Co., Ltd. is a national key high-tech enterprise specializing in R&D, manufacturing, sales and service of
solar energy, wind energy, energy storage, electric vehicles, and other new energy power supply equipment. With a wide range of
products including PV inverters, wind energy converters, energy storage systems, electric drive system for new energy vehicles,
floating PV systems, and smart energy operation and maintenance service, the Company is committed to providing world-class
solutions for the full life cycle of clean energy.
1. PV inverters
Since the establishment in 1997, the Company has been concentrating on the R&D and manufacturing of PV system equipment, with
PV inverters being the core product. Adhering to the mission of “Clean power for all”, the Company provides cutting-edge PV
system solutions to users around the globe.
Connecting PV arrays to the grid, PV inverter is one of the main components in a PV power generation system, and plays a critical
role in ensuring the long-term and reliable operation of PV power stations and improving the project investment return. The
Company abides by the principle of “design and adjust to the local condition”, and makes rational select of inverter types according
to the scale, the terrain and building attachments of PV power stations, in order to maximize the value of PV power stations in the
full life cycle.
String PV inverters feature high power density and simple installation and maintenance, can meet the requirements of different
applications indoor and outdoor, and are hence widely used in small and medium PV power generation systems in parking lots, on
commercial roofs or farms, as well as large-scale ground power stations on complex terrains.
Centralized PV inverters feature high conversion efficiency, safety and reliability, are highly grid-friendly and cost effective. They
can cope with various environments such as extremely low temperature and high altitude, and are widely used in large and


                                                                                                                                   14
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

medium-sized PV power generation systems in deserts, plateaus, and on commercial roofs.
Household PV inverters feature high power density, appealing exterior design, and simple installation and maintenance, can
automatically adapt to complicated grid environment, prolong power generation, and effectively improve power generation revenue.
With built-in lightning protection and high-precision leakage current protection, as well as energy storage interfaces and various
communication modes, they can meet various application requirements indoor and outdoor, and are widely used in residential PV
power generation systems on residential roofs or in courtyards.
Inverter integration solutions consist of PV inverters, AC/DC power distribution modules (optional), medium voltage transformers,
ring main units, system monitoring modules, fire alarm modules, environmental monitoring modules (optional) and other functional
modules, as well as AC cables integrated in advance, thereby reducing the loss and work intensity in the field, realizing fast
installation, and creating higher economic benefits for customers. These solutions can cope with extremely low temperature and high
altitude, and are widely used in large and medium PV power generation systems in deserts, plateaus, and on commercial roofs.
Smart energy management platform leverages the Internet of Things, artificial intelligence, and big data analysis technologies to help
group customers achieve centralized operation and maintenance management of PV, energy storage and other energies, and build a
smart energy brain. The platform can meet customers’ management needs at different stages in the full life cycle of multiple energies,
and realize four core values including steadily increasing investment return, ensuring asset security, standardizing operation
management, and assisting group decision-making.
Sungrow's PV inverters cover the power range of 3 to 8800 kW, which consist of household inverters, medium-power string inverters,
and large-scale centralized inverters. Being exported to more than 150 countries around the world, they topped the list of global
shipments for four consecutive years, and scored 100% in BloombergNEF’s inverter bankability surveys for three consecutive years.
As of December 2021, Sungrow has cumulatively installed over 224 GW of inverter equipment in the global market.
2. Power station investment and development
In recent years, Sungrow Renewables, as the Company's new energy project development and investment platform, has been
pioneering the exploration of a new pattern of green and ecological development featuring multiple-energy complement and
industrial collaboration. In the areas of agriculture-PV complementary development, fishery-PV complementary development,
floating power station, solar-wind-storage complementary development and comprehensive utilization of land, the Company has
established an innovative "New Energy +" value chain and delivered a number of industry-leading demonstration projects, achieving
breakthroughs in industrial and commercial PV, household PV, energy storage, hydrogen production from renewable energy, and
comprehensive energy services. Under the dual action of technology and market, Sungrow Renewables makes active attempts in
domestic and international markets, and has built a diversified and collaborative industrial layout with China as the base and the
overseas market as the growth point. As of December 2021, the Company has developed and built PV and wind power projects with
a cumulative capacity of more than 25 million kilowatts.
Large-scale ground PV power station solutions: Sungrow's large-scale ground PV power station projects cover various application
scenarios, which rely on the Company’s technical research and development capabilities, abundant system integration experience and
the well-established smart operation and maintenance system to greatly improve the return on investment of PV power stations and
create greater values for customers. In addition, a number of comprehensive utilization forms such as comprehensive land
reclamation, agriculture-PV complementary development, floating power station, and forest-PV complementary development have
created more opportunities for comprehensive environmental governance and new energy industry applications.
Distributed energy solutions: In response to the diversified and personalized energy needs, the Company leverages the world-leading
system integration technology strength and comprehensive energy service system to provide enterprises with distributed PV and
energy storage system consultancy, development, investment, delivery, operation and maintenance, as well as other full life cycle
solutions for clean energy, thereby enabling enterprises to achieve independent management of energy consumption, maintain and
increase the value of diversified assets, and push enterprises into the era of zero emission.
Household PV solutions: Sungrow’s household PV takes “generating more power" as its core value, and is a uniquely designed and
integrated end-to-end smart household PV system on the foundation of intelligence and digitization. The full range of smart products



                                                                                                                                    15
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

are exclusively customized and intelligently connected to a cloud platform. Thanks to the fine-granular smart operation and
maintenance, it has become the world’s first household-oriented brand with a TV certification.
Wind power station solutions: The companies wind farms cover different operating environments such as high and low temperatures,
high altitude, low wind speed, and coastal areas. With a benign ecosystem and a development pattern including wind power on plains,
wind power on mountains, offshore wind power, and wind-solar complement, the Company provides solutions that meet the diverse
needs of customers and maximize customers’ value.
3. Wind power converters
The Company's wind power converter products are transmission frequency conversion devices that integrate power electronics,
modern transmission control theory and new energy application technologies. Covering a power range from 2 MW to 15 MW and a
voltage range of 690V, 900V, 1140V, and 3300V, the portfolio consists of full-power wind power converters and double-fed wind
power converters that are fully compatible with mainstream wind turbine models in China, and can be used in various wind farm
environments such as salt haze, extremely low temperature, plateaus, coastal areas, and high humidity. As wind power generation
goes into the era of parity, the industry needs to work together to further innovate and optimize the component performance as well
as achieve cost reduction and efficiency improvement across the entire industry chain. Dedicated in the power electronics industry
for more than 20 years, Sungrow has recently developed high-power double-fed air-cooled main control integrated converters, 3 MW
to 15 MW three-level converters and other new products to supply mainstream wind turbine manufactures in China. In the future,
Sungrow will stick to the low-cost innovation and development strategy, accelerate the system cost reduction of wind turbines, and
contribute added values to customers.
4. Energy storage system (ESS)
Sungrow's energy storage business relies on the world-leading new energy power conversion technology and the cutting-edge ESS
integration technology. With a focus on the R&D, production, sales, and service of lithium battery ESS, the Company can provide
energy storage converters, lithium batteries, energy storage management system and other core equipment for energy, deliver a range
of energy storage system solutions for auxiliary new energy grid connection, power frequency and peak regulation, demand side
response, micro-grid, and household scenarios, and is known as a world-class supplier of energy storage equipment and system
solutions.
As one of companies that made the earliest attempts in the field of energy storage in China, Sungrow has been supplying ESS to
customers in China, US, UK, Canada, Germany, Japan, Australia, India and etc.
5. New energy vehicle drive system
With the profound accumulation of clean power conversion technology and R&D advantages, Sungrow has extended the inverter
application into the electric vehicle industry, providing new energy vehicles with quality drive systems.
Sungrow's new energy vehicle drive system is suitable for pure electric commercial vehicles of large, medium and small sizes,
passenger cars, logistics vehicles, etc. Featuring a modular design and complete functions, the products have low energy
consumption, long driving range, and high reliability, with the maximum efficiency reaching 99%. Since the launch, new energy
vehicles built with Sungrow's motor controllers have been running smoothly in Beijing, Shenzhen, Xiamen, Hefei, Nanchang, Dalian,
and Hangzhou, receiving a good reputation from customers because of the smooth and efficient operation and strong power.
Since setting foot in the electric vehicle industry, the Company has received various honors, such as the Red Star Design Award, the
2015 Electric Vehicle Technology Excellence Award, and the Red Dot: Best of the Best Award (one of the three major design
awards in the world). The Company has also won a number of awards in the new energy vehicle TOP50 selections, such as the
Innovative Component Award, the Outstanding Enterprise of New Energy Core Components, and the Best Company of Innovative
New Energy Bus Power Drive.
6. Floating PV system
Relying on the Company’s technology R&D and production experience in the PV industry of more than 20 years, Sungrow Floating
Modules (Sungrow FM) has set up an R&D team for floating modules consisting of industry experts and doctors. Sungrow FM has
made more than 100 patent applications in the fields of advanced floating bodies, matrix anchorage, inverter booster floating



                                                                                                                                 16
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

platforms, system operation and maintenance, led and participated in the formulation of multiple standards related to floating body
technology, and is committed to becoming a reliable provider for PV floating modules and solutions. As of December 2021, the
cumulative application of the Company’ floating modules has exceeded 1.7 GW worldwide, leading the global market share for four
consecutive years.
7. Charging equipment
Rooted in Sungrow’s profound technological background, Sungrow Lechong shares the design and application experience of outdoor
power supply products with long service life and high reliability, builds product lines of EV charging equipment based on the core
principles of “Reliable, Efficient, and Intelligent", and is committed to providing smart integrated charging solutions.
Charging + mode: Sungrow Lechong has established an ecological connection with Sungrow's PV and energy storage products to
provide an integrated PV-Storage-Charging solution for charging infrastructure, thereby allowing vehicle owners and operators to
benefit from the charging technology.
8. Smart operation and maintenance
Relying on the Company’s 25 years of power electronic conversion technology and power station integration practice, the operation
and maintenance business adheres to the service concept of “Secure with technology, reliable and trustworthy” to provide standard
all-round services for new energy assets, and continues to ensure customers' stable return and asset safety with advanced technology.
As of December 31, 2021, Sungrow Zhiwei has contracted new energy power station operation and maintenance projects with a total
capacity exceeding 10 GW, accumulated rich experiences in PV power station, wind farm, and energy storage operation and
maintenance, and is capable of customizing proven and effective operation and maintenance solutions for different types of power
stations. The Company has established the first independent R&D team in the industry that developed the SolarEye smart energy
operation and maintenance platform to enable digitalization and visualization of field operation data as well as the operation and
maintenance work. In the process of field operation and maintenance, the Company leverages drone-patrolling, component hot
spot/EL detection, intelligent cleaning analysis and other advanced technologies to ensure the operation and maintenance quality and
efficiency.
9. Hydrogen energy
As the very first new energy company that set foot in the field of hydrogen energy in China, the Company is committed to providing
efficient, intelligent and safe green power hydrogen production systems and solutions, and has identified two technical routes —
alkaline water electrolysis for hydrogen production (ALK) and proton exchange membrane (PEM) pure water electrolysis for
hydrogen production — together with the supporting MW-level hydrogen production rectifier power supply and smart hydrogen
energy management system. At present, the Company has established China's first PV off-grid hydrogen production and hydrogen
energy storage and power generation demonstration platform, and set up a joint laboratory of PEM electrolysis for hydrogen
production technology with the Chinese Academy of Sciences. The Company’s green power hydrogen production system is widely
used in hydrogen projects in Jilin, Ningxia, Inner Mongolia and other provinces.
In the reporting period, Sungrow Hydrogen Energy Technology Co., Ltd. was registered and established, and a hydrogen production
equipment plant with an annual capacity of GW was built in Hefei High-Tech Zone to address the R&D and manufacturing needs of
hydrogen production power supplies, ALK/PEM hydrogen production facilities, and smart hydrogen energy management systems.
The 1000 Nm/h alkaline electrolyzed water hydrogen production was successfully delivered to Baicheng of Jilin Province, enabling
the establishment of the North China Hydrogen Valley.


The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the
Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed
Companies.
1. PV inverters’ conversion efficiency
The indicator “conversion efficiency” refers to the ratio of inverters converting the input DC power to AC power, which is inverter’s
output power / inverter’s DC input power × 100%.



                                                                                                                                     17
                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                        2021 Annual Report (Concise Version in English)

By utilizing new semiconductor materials and high-efficiency magnetic devices, optimizing circuit design, improving MPPT
algorithm, and optimizing the heat dissipation system, the Company continuously drives inverters’ efficiency to go up. The
maximum efficiency of Sungrow's full range of inverters has reached 99% at the moment.
2. Cost of energy per kilowatt-hour of the Company's PV system
The indicator “cost of energy per kilowatt-hour” refers to the ratio of the PV system’s total investment cost versus the power
generated throughout the entire life cycle of the system. The total investment cost includes the initial investment and the operation
and maintenance investment throughout the life cycle. The cost of energy per kilowatt-hour directly reflects the power generation
cost of the PV system, that is, the lower the cost of energy per kilowatt-hour, the higher revenue the PV system generates.
Through constant technological innovation and system optimization, the Company reduces investment cost and increases system
power generation, thereby reducing the cost of energy per kilowatt-hour and improving customers' return on investment. By
increasing the unit power of inverters, less inverters are required for power stations to reach the same capacity, and the cable cost is
also reduced. By forming inverters into power units of larger capacity, a maximum sub-array of 12.5 MW can be supported, which
further saves the cost of transformers and reduces the initial investment by RMB 0.1 per watt. Highly integrated inverters and
solutions will be widely used. For example, the box-type medium-voltage inverter not only has the inverter, transformer, power
distribution, communication, and smoke detection functions integrated, but also is built with a PID control box and communication
power supply interfaces for the tracking system. By improving the level of integration, the system cost across its life cycle, including
cable cost, construction cost, project management cost, post-operation and maintenance cost, can be reduced; systems are strongly
coupled, which improves reliability and increases power generation of the power station.
3. PV system’s grid friendliness
As PV systems are being utilized at large scale, the penetration rate of PV increases year by year. Inverters are directly connected to
the grid as a link for energy transfer, and the requirements for inverters’ grid friendliness are getting increasingly higher.
Sungrow inverters are built with low-voltage ride-through, zero-voltage ride-through, and high-voltage ride-through capabilities,
which can cope with the voltage changes of power grid in the case of power grid problems, hence to ensure that PV systems will not
be disconnected from the grid on a large scale, resulting in the escalation of incident. Moreover, inverters are built-in with fast power
control modules to enable quick scheduling in less than 30 ms for reactive power response and support stronger reactive power. They
also support the virtual synchronous power generation (VSG) technology to realize proactive support for the power grid. Inverters
have the DC energy storage interface integrated, hence to eliminate transformation afterwards. In addition, they support reverse
charging and take advantages of the energy storage equipment. The power generation side is a multi-energy complementary platform
that allows PV power station peak regulation, smooth PV power station output, and grid stability; the power consumption side is an
intelligent PV-storage micro-grid platform, which enables peak-trough balance through energy storage, improves PV consumption,
and achieves precise energy supply.
4. Unit production cost of the Company's PV inverters
Due to wide range of the Company's PV inverters and different power ratings, the unit production cost varies from RMB 0.1 to RMB
0.15 per watt at the moment.


III. Analysis of Core Competitiveness

In the nearly two decades of rapid development, the Company has been committed to the independent innovation of power
electronics and electric energy conversion technology in the field of new energy, with a number of technologies reaching the
world-leading level. In recent years, the Company successively deployed a range of new businesses, such as key components of new
energy vehicles, micro-grid energy storage, smart energy and new energy hydrogen production, and has gained considerable
development.
1. Brand Advantages
As the first enterprise engaged in the R&D and production of inverter products in China, the Company has secured a solid leading



                                                                                                                                      18
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

position. In 2015, the Company for the first time outperformed the European Company that had been the world leader in terms of
shipment for many years, and shipped the most PV inverters in the world. In 2021, the Company’s shipment accounted for more than
30% of the global market, and the products were sold to more than 150 countries including Germany, Italy, Australia, the United
States, Japan, and India. By the end of 2021, the Company has cumulatively installed more than 224 GW of inverter equipment
worldwide. The Company's brand and reputation are highly acknowledged in the industry and continually improving. The Company
has successively received the honors of China Industry Awards, Demonstration Enterprise of National Individual Champion in
Manufacturing, Most Innovative Companies in China, National Intellectual Property Demonstration Enterprise, Global Top 500 New
Energy Enterprises, Best Companies to Work For in Asia, and etc. Boasting a state-level post-doctoral research workstation, a
national high-tech industrialization demonstration base, a national recognized enterprise technology center, a national industrial
design center, and a national green plant, the Company is one of the first tier in the global new energy power generation industry in
terms of comprehensive strength.
2. R&D Innovation Capability
Since the establishment in 1997, the Company has been concentrating on the field of new energy power generation, adhering to
market demand orientation, and taking technological innovation as the propellant for development. The Company has fostered a
professional R&D team with solid R&D experiences and strong innovation capabilities. With R&D professionals accounting for
more than 40% of the total headcount, this team has successively undertaken more than 20 national key science and technology
programs, and led the drafting of multiple national standards. As one of the few companies in the industry that has mastered a range
of core technologies with independent intellectual property rights, the Company has acquired a total of 1,952 patents, including 812
inventions, 977 utility models, and 163 exterior designs as of December 2021. Relying on the industry-leading technological reserve,
the Company actively promotes the formulation and optimization of relevant standards in the industry, and has organized the drafting
of multiple Chinese national standards.
The Company has introduced the integrated product development (IPD) process to guide the technological reserve and product
development efforts according to the customer demand analysis, the technological development analysis, and the competitive
strategy analysis. From concept, planning, development, verification, trial production to mass production, staged quality indicators
are set for each step of new product development to ensure the quality of products. The Company has invested in a world-leading
electromagnetic compatibility laboratory that is equipped with high-performance large-capacity low-voltage ride-through facilities
with a variety of power supplies and power grid simulators, and is capable of providing the most demanding test condition. The
Company continues to establish and optimize the ISO9001:2008, ISO14001, OHSAS18001 management systems, and strictly
promote the integrated quality, environment, occupational health and safety management system. The Company's products have
passed a number of authoritative international certifications including UL, TV, CE, Enel-GUIDA, AS4777, CEC, CSA, and VDE.
3. Global Marketing, Channels and Service Network
Since its establishment, the Company has identified a global development strategy. While the production base in India expanded its
production capacity to 10 GW, another 10 GW plant was put into operation in Thailand in the reporting period. At present, the
Company has set up 20+ overseas subsidiaries, 5 global service regions, 60+ global service centers, 180+ authorized service
providers, and a number of important channel partners. The products have been sold to more than 150 countries around the world. In
the future, the Company will continue to explore the global market, orderly promote the global deployment of inverters, energy
storage, charging, power stations, and floating modules, prioritize the improvement of global marketing, service, financing, and other
key capabilities, thereby reinforcing the global support capability system and strengthen the global influence.


IV. Core Business Analysis

1. Overview

A. Overview of core business analysis
In 2021, facing the challenges of the worldwide COVID-19 epidemic and supply chain shortages, Sungrow firmly sticked to the new

                                                                                                                                   19
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

energy sections including solar energy, wind energy, energy storage, new energy electronic control, charging, and hydrogen energy,
continuously enforced technological innovation and accelerated the global strategic deployment. As such, the Company’s brand
influence was further enhanced, and the leading position of the core business in the global market further consolidated.
B. Overview of core business in the reporting period
In the reporting period, the Company made the following attempts related to the main business:
(1) Business development
PV inverters
In the reporting period, the Company continued to focus on technology research and development and promote innovations in
PV-storage integration. By vigorously advancing the global brand strategy, deeply exploring key market segments, and fully
leveraging the advantages of global marketing, service and supply chain, the Company’s global competitiveness and influence
continued to grow. The Company’s global PV inverter shipment reached 47 GW, including 18 GW in China and 29 GW overseas,
accounting for more than 30% of the global market. As of December 2021, the Company has cumulatively installed more than 224
GW of inverter equipment worldwide.
In the reporting period, the Company reinforced and expanded its marketing footprint in Europe, America and China, seized many
opportunities in emerging markets, and further improved its sales and service network. At present, the Company has set up 20+
overseas subsidiaries, 5 global service regions, and 240+ service outlets. The Company successfully established collaboration with a
number of major customers and entered into several sales orders for GW-level inverters, leaving other major PV investment players
far behind. The Company firmly secured the first place in global mainstream market share, and gained significant performance
growth in Japan, Europe, and China’s distributed market. In 2021, the Company’s global shipment of inverters exceeded 500,000.
In the reporting period, the Company further strengthened investment in R&D and innovation as an acknowledged leader in clean
power conversion technology. The Company set up the Nanjing R&D Center, and planned to grow it as the largest R&D base second
only to the Hefei Center. With commitments in technological innovation and growth of digitalized talents, the Company joined forces
with leading scientific research institutions, universities, and innovation platforms to promote the industry-university-research
collaboration.
In the reporting period, the Company introduced the high-power string inverter SG320HX that refreshed the 300 kW+ string
technology with a maximum output power of 352 kW. The Company’s "1+X" modular inverters marked a major renovation of
traditional inverters and created a new category in the industry. Featuring the advantages of both centralized inverters and string
inverters, they not only operate at an affordable cost of energy per kilowatt-hour as traditional centralized inverters, their modules are
separately designed MPPT that operate independently, contributing to a higher tracking accuracy and simplified plug-and-play
operation and maintenance. The release of SG30/40CX, a new distributed product, further enriched the portfolio of medium and
small power inverters and enabled full coverage of distributed application scenarios.
In the reporting period, the Company released full-scenario solutions in response to the national strategy of advancing distributed PV
county-wise, and prospectively introduced the “PV-Storage-Charging Integration" model. In addition, the Company further
strengthened the sales and post-sales network for the distributed market, and fully engaged in the construction of quality distributed
PV power stations to support the promotion of distributed PV across counties.
At the same time, in response to the escalating demand of overseas markets, the Company released a number of new products in a
targeted manner, covering household, industrial and commercial, large-scale ground power stations and other markets. The products
were used in many projects and were highly acknowledged by customers.
Wind power converters
In the reporting period, the Company continued to increase strategic investment in the wind energy business, insisted on R&D
innovation, and maintained a technological leadership in wind power converters. The Company kept on developing wind storage and
wind power aftermarket business to enhance Sungrow's brand influence in the wind power industry, promote the quality development
of the industry, and contribute to make the zero-carbon society an early reality in the context of delivering the dual-carbon goal.
In 2021, the Company shipped wind power converters with a total capacity of more than 15 GW and 400+ wind farms, achieving a



                                                                                                                                       20
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

major breakthrough in offshore wind power and overseas market. Among them, the high-power air-cooled converters and three-level
1000 Vac (900 - 1140V) converters were industry-leading products. Through the deep integration of wind power and storage
applications, the Company released the integrated wind power-storage converter in October 2021.
Energy storage
In the reporting period, the Company's energy storage business grew rapidly. With a significant cost reduction and efficiency
increase, the 1500 V full-scenario energy storage system solution was recognized as the key supporting technology for the large-scale
development of new energy + energy storage under the challenging reality of PV energy storage parity. In 2021, the Company's
energy storage system shipments grew exponentially, with the total global shipment hitting 3 GWh.
In the reporting period, Sungrow introduced the liquid-cooled energy storage system in overseas markets. The product was built with
better temperature uniformity and lower power consumption thanks to the liquid cooling, and innovatively leveraged the
Cluster-Level Manager to address the "cask effect" of batteries. In the meanwhile, it supported the mixed use of new and old batteries
to further drive the LCOS down. In view of the pressure brought by the growing household and distributed PV to the power grid in
the future, the Company concentrated on household and industrial and commercial energy storage systems, launched the 5 to 10
kW/9.6 to 102.4 kWh household energy storage systems and 50 kW to 1 MW/2 to 5 h distributed energy storage systems that have
been widely used in the global market.
At present, the Company's energy storage systems are widely used in mature power markets such as the United States, the United
Kingdom, and Germany, continually benefiting the in-depth integration of wind power, PV, and energy storage. All of the energy
storage projects the Company involved in have not experienced any safety accident, and the Company has accumulated extensive
application experience in frequency and peak regulation, auxiliary renewable energy grid connection, micro-grid, and
industrial/commercial/household energy storage. In the reporting period, the Company provided integrated solutions for many
projects around the world, such as the Three Gorges Ulanqab Source-Grid-Load-Storage Integration Demonstration Project, the
largest (136.24 MWh) PV-storage integration power station in Southeast Asia, and the largest (430 MWh) energy storage project in
Israel, with the largest individual project reaching a capacity of 900 MWh.
In the reporting period, China Energy Storage Alliance officially released the 2021 Energy Storage Industry White Paper, according
to which, Sungrow’s energy storage system shipments ranked first for five consecutive years. As a leader in clean power conversion
technology, Sungrow will continually take advantages of the collaborative wind-PV-storage innovation to ensure the safe, stable and
efficient operation of new energy, energy storage, and power grids, thereby promoting the top-level design of the industry and
contributing to building a new power system highlighting new energies.
Power station investment and development
In the reporting period, Sungrow Renewables continued to promote the business principle of being pragmatic and detail-oriented,
comprehensively upgraded the vision, strategic positioning, and value proposition of the company, and identified the updated vision
as "becoming the global leader in new energy power generation technology, the brand-new value proposition as "more power
generation, more friendly”, and the new strategic positioning as “a recognized leader in new energy system technology and a new
energy developer with advanced system technology”, hence to further clarify the strategic direction for the next step. By the end of
the reporting period, Sungrow Renewables’ business had covered 30 provinces, autonomous regions and municipalities in the
country, as well as countries and regions along the Belt and Road, cumulatively developed and built PV and wind power projects
with a total capacity of more than 25 million kilowatts, topping the list of global PV developers.
Leveraging system technology innovation to secure the differentiated competitiveness, Sungrow Renewables continually increases
technological innovation and industrial application of new energy systems. In the reporting period, the company upgraded the
PowMart smart energy solution portfolio, increased R&D investment around the three core technology systems of "high-efficiency
power generation, system integration, and power station life cycle optimization", released the world's first iSolarTool new energy
system optimization software and the iBlock flat roof distributed PV solution. In 2021, Sungrow Renewables led the establishment of
China's first new energy system innovation technology committee, organized and sponsored the 2021 China PV Market Development
Forum, the 2021 New Energy System Innovation Technology Forum, the PV Station Equivalent Power Generation Hours Evaluation



                                                                                                                                   21
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

Seminar, the 17th CSPV PV System Innovation Technology Sub-Forum in 2021 and other major industry events, in order to enable
technology exchange and innovation sharing, and promote the technological progress and upgrade of the new energy industry.
Focusing on the new energy development sections and guided by the value proposition of "more power generation, more friendly",
Sungrow Renewables actively engages in major national energy strategies such as the construction of national large-scale wind
power-PV bases and the county-wise promotion of distributed PV pilot projects. The company continually optimizes the
development system, reinforces the project reserve and resource transformation, and has won leading number of projects in
Shandong, Anhui, and Jiangxi. In the overseas market, Sungrow Renewables also expands the project resource reserve and
accelerates the transformation, hence to maintain a steady growth momentum. In the distributed business, by prioritizing two major
business patterns of Key Account Development and Channel Expansion, Sungrow Renewables has established cooperative
partnership with a large number of quality customers including PetroChina, Sinopec, NIO, Mengniu, and Danone.
Taking the opportunity of rapid growth in the household market, Sungrow Household PV accelerated deployment in key markets,
optimizes channel development, and improves service efficiency. In collaboration with central enterprises and state-owned
enterprises, Sungrow Household PV innovatively launched the Sungrow Home business mode to advance the development of
distributed PV power station projects on residential roofs. Relying on comprehensive advantages in brand, product, channel, and
service, Sungrow Household PV realized coordinated development of multiple business modes including full payment, financed, and
joint construction. In view of the market demand, Sungrow Household PV accelerated upgrading of iRoof home power stations,
iGarden colorful PV wind gardens and other products, to ensure efficient power generation of the power stations and sustainable
benefits to users. The company provided all-around supports to customers, including continuous technical instruction, financial
support and training, and improved user experience with brand service actions such as the Quality Excellence Initiative. In 2021,
Sungrow Household PV’s installed capacity increased by more than 500% year-on-year, ranking top in the household PV sector.
Facing the brand-new competition, Sungrow Renewables sticked to the parallel development of technology and market, innovated
application patterns, and accelerated implementation of agriculture-PV complementary development, fishery-PV complementary
development, desert regulation and control, salt-PV integration and other scene integration projects. Sungrow Renewables developed
and built a large number of community-friendly, grid-friendly, and environment-friendly power stations with high power generation
efficiency, contributing to power generation efficiency improvement and cost of energy reduction, and setting examples in leading
the new energy industry transforming towards high quality.
(2) Operation management and others
Non-public offering
In the reporting period, the Company successfully completed the non-public offering for year 2021, and raised RMB 3.623 billion by
privately issuing 28,418,634 A-shares to 18 selected objects. The fund was intended for the Company's 100 GW new energy power
generation equipment manufacturing base project, the R&D innovation center expansion project, the global marketing service system
project, as well as working capital supplement. With the fundraising projects put into production in the future, the Company's
production capacity will be further upscaled. While addressing the growing needs in PV, wind power, and energy storage industries,
the Company improves the utilization of production resources, enhances the scale effect, and reinforces the competitive advantage,
thereby further expanding its market share and consolidating the leading position in the industry.
Corporate culture
Throughout decades of growth, Sungrow has shaped a unique corporate culture. We always adhere to the mission of “Clean power
for all” and practice the core values of “Sincere & pragmatic, precise & open, customer oriented”, contributing wisdom and power to
a green future. In 2021, the Sungrow culture continued to make a difference: the cultural stories conveyed positive energy of
front-line employees, and the Cultural Salon promoted sharing and interaction of cross-cultural teams. A number of themed cultural
activities were carried out: the Global Trailwalk attracted nearly 5,000 employees from all over the world as well as external fans
participants both online and offline, with the cumulative distance hitting nearly 100,000 kilometers, advocating the green and
low-carbon Sungrow Lifestyle. The Company invited more than 100 juveniles to the Sungrow Green Technology Tours and shared
new energy knowledge with them. The Donation with Love activity won the title of Exemplary Enterprise in Environmental



                                                                                                                                   22
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

Protection, motivating the Company to make more contributions to the society and promote environmental protection efforts. In
terms of employer branding, we work together to improve employees' sense of happiness at work, create an appealing atmosphere of
“joyful work and healthy life", extend internal and external training to fully empower employees, and energize employees with
diversified incentives and benefits. Polo shirts at summer time and new office outfits complement the appearance of Sungrow people;
the second Sungrow University Innovation Competition attracted more than 100 undergraduates as well as master and doctoral
candidates from key universities in the country; Open Day activities, campus workshops, winter campus and etc. bridged the gap
between Sungrow and students on campus, allowing the Sungrow employer brand to reach the campus. The Company further
strengthens care for relocated employees and consolidate the brand image as an overseas employer by creating a diversified and
inclusive workplace. With a total of 634 foreign employees and a local employee ratio of 96.6% in overseas subsidiaries, Sungrow
has been awarded the Best Companies to Work for in Asia for three consecutive years, as well as the Forbes China Most Sustainable
Employer of the Year and the Best Happy Enterprise.
Social responsibilities
In 2021, Sungrow achieved breakthroughs in business revenues, gained increasing trust from the society and the market, and topped
the list of China’s Top 500 Enterprises with ESG Excellence. The Company maintained two consecutive AA ratings in the
world-renowned MSCI ESG Ratings, and was included in the Hang Seng Corporate Sustainability Benchmark Index. The
Company’s current moves and long-term plans for sustainable development were further clarified.
Being a strong supporter and an active doer in responding to global climate change, Sungrow always adhered to the mission of
“Clean power for all”, and continued to advance the deep integration of business and sustainability. By strengthening the
development and utilization of renewable energy and improving energy efficiency, the Company vigorously contributed to global
pollution reduction and carbon reduction. By focusing on new energy sections including solar energy, wind energy, energy storage,
electricity, and hydrogen energy, the Company achieved a cumulative installed capacity of 224 GW+ of inverter equipment,
generated 315.2 billion kWh of clean power throughout the year, and reduced carbon dioxide emissions by more than 250 million
tons per annum. By sticking to technological innovation and continuous investment, the Company was quickly approaching the goal
of 100% renewable electricity. In 2021, the Company's green electricity consumption accounted for 35% of the total. The Company
comprehensively reviewed and reduced the greenhouse gas emissions, actively promoted the green supply chain with partners, and
continued to enable the low-carbon operation across the entire industry chain.
In 2021, Sungrow joined the United Nations Global Compact to respond to the global sustainability initiative and incorporate the
concept of sustainability into the Company manifesto. The Company upheld operation transparency and standardization, and
delivered greater customer values by continuously promoting technological progress and product innovation. The Company was
awarded the Best Companies to Work for in Asia for the third year in a row, providing an equal, diverse, secure and respected
working environment for employees around the world, and setting up a sophisticated empowerment system to accelerate employees’
career development. The Company made plans for the global public welfare strategy, and accumulatively donated RMB 5,262,000 in
five areas including ecological environment protection; poverty alleviation; supporting science and technology innovation, education
and talents; community development; and disaster recovery assistance, responding to the care and support of the society with
practical actions.
R&D, intellectual property
In the reporting period, the Company continued to increase R&D investment and actively advanced the consolidation of independent
intellectual properties and patent application. In 2021, the Company was granted 498 new patents, all of which were original patents,
including 40 overseas patents, 161 domestic inventions, 258 utility models, and 39 exterior design patents. The Company has also
submitted 1,149 new patent applications, including 157 overseas patents, 538 domestic inventions, 410 utility models, and 44
exterior designs, which contribute to the Company's further improvement of independent innovation capabilities and core
competitiveness.
As of December 2021, the Company has cumulatively acquired a total of 1,952 patents, including 812 inventions, 977 utility models,
and 163 exterior designs. Relying on the industry-leading technological reserve, the Company actively promotes the formulation and



                                                                                                                                  23
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

optimization of relevant standards in the industry, and has organized the drafting of multiple Chinese national standards.
Honors and awards received in the reporting period
                            Honors and Awards                                                     Awarded by

  2021 Industry Best Practices of China Digital Economy Top 50             APEC China Business Council

  China Photovoltaic Industry Association 2021 Outstanding                 China Photovoltaic Industry Association
  Contribution Award

  2021 China ESG Golden Award                                              Sina Finance

  Jinglun Awards - Company of the Year with the Most Investment Value China Fund, Jihuibao

  Jinglun Awards - The Listed Company Most Favored by Private Funds China Fund, Jihuibao

  2021 Top 500 China ESG Excellence Enterprises (No. 1)                    Sina Finance ESG Rating Center, CCTV-1 The Great
                                                                           Brands

  The Influential PV Inverter Brand in 2021                                Polaris Solar PV Network

  China's Top 500 Most Valuable Brands (with a brand value of RMB          World Brand Lab
  43.896 billion)

  The Influential PV-Storage Integration Solution Provider in 2021         Polaris Solar PV Network

  President of the Yangtze River Delta (Xuancheng) PV-Storage Industry Yangtze River Delta (Xuancheng) PV-Storage Industry
  Alliance                                                                 Alliance

  Red Dot Award 2021 (SolarEye)                                            Red Dot Award Selection Committee

  Top 50 GEM-Listed Companies in China in the 15th China Listed            Securities Times
  Company Value Selection

  Top 500 Private Manufacturing Enterprises in China (No. 323)             All-China Federation of Industry and Commerce

  Top 500 Global New Energy Enterprises (No. 48)                           China Energy News, China Energy Economic Research
                                                                           Institute

  Top 10 Influential Brands in China's Charging and Battery Swapping       Chongdian360.cn
  Industry

  IF Awards 2021 (SG20RT)                                                  iF Industrie Forum Design

  SNEC Top Ten Highlights - Diamond Award of TW-Level                      SNEC 2021 Organizing Committee, Shanghai New
                                                                           Energy Industry Association

  SNEC Top Ten Highlights - Gold Award of GW-Level                         SNEC 2021 Organizing Committee, Shanghai New
                                                                           Energy Industry Association

  Vice President of China Power Supply Society                             China Power Supply Society

  Tope 10 Energy Storage Application Innovation Models in 2021             China Energy Storage Alliance

  President of China Photovoltaic Industry Association                     China Photovoltaic Industry Association

  Pathfinder of China’s PV Development in the World                       China New Energy Overseas Development Alliance

  2021 Best Companies to Work For In Asia                                  HR Asia



                                                                                                                                   24
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

2. Income and Cost Analysis

(1) Composition of operating income
The Company needs to comply with the requirements on the disclosure of PV industry chain related business specified in the
Shenzhen Stock Exchange’s No. 4 Regulatory Guidelines for Listed Companies — Information Disclosure of GEM-Listed Companies:
Overview of operating income
                                                                                                                         (in RMB)

                                                         2021                                   2020

                                                                % of Operating                         % of Operating YoY Change
                                                Amount                                Amount
                                                                    Income                                Income

Total operating income                   24,136,598,726.55          100%         19,285,641,347.02         100%           25.15%

By sector

PV                                       18,931,185,451.66             78.43%     16,023,640,408.32            83.09%         18.15%

Energy storage                              3,137,622,772.49           13.00%      1,168,513,044.05             6.06%        168.51%

Other                                       2,067,790,502.40            8.57%      2,093,487,894.65            10.86%         -1.23%

By product

PV inverters and other power
                                            9,050,773,565.63           37.50%      7,514,803,699.19            38.97%         20.44%
conversion devices

Power station investment and
                                            9,678,744,379.61           40.10%      8,226,945,937.60            42.66%         17.65%
development

Energy storage systems                      3,137,622,772.49           13.00%      1,168,513,044.05             6.06%        168.51%

Wind power converters                       1,177,080,263.56            4.88%      1,414,611,002.95             7.34%        -16.79%

PV power generation                          485,629,355.11             2.01%        374,147,482.00             1.94%         29.80%

Other                                        606,748,390.15             2.51%        586,620,181.23             3.04%          3.43%

By geography

Mainland China (not including Hong
                                         14,959,211,117.66             61.98%     12,684,121,715.13            65.77%         17.94%
Kong, Macau and Taiwan)

Overseas (including Hong Kong,
                                            9,177,387,608.89           38.02%      6,601,519,631.89            34.23%         39.02%
Macao and Taiwan)

Sales to major revenue-contributing countries
                                                                                                                           (in RMB)

         Major                                                         Significant adverse changes in local PV industrial policies or
 revenue-contributing       Sales volume            Sales revenue      trade policies and their impacts on the Company's current and
        countries                                                                         future operating results

         China             Not Applicable         14,959,211,117.66                           Not Applicable

Basic situation of PV power stations

Since there are a large number of PV power station projects in the reporting period, the basic information of the top ten PV power


                                                                                                                                        25
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

stations by revenue is disclosed here item by item, and the rest power stations are listed as a whole by business pattern.


                                                                                                                    Source of PV
                                                                             Capacity
  No.                     Project Name                        BT/EPC                             Status             inverters/wind
                                                                          (MW/MWH)
                                                                                                                 power converters


         Jingcheng Guazhou Anbei 100 MW Wind                                                  Full capacity
   1                                                             BT              100.00                             Self-supplied
         Power Project                                                                       grid connection

         Susong Suyang Huikou Town 150 MW Project                                             Full capacity
   2                                                             BT              151.25                             Self-supplied
                                                                                             grid connection

         Qiqihar Rize Longjiang County 100 MW                                                 Full capacity
   3                                                             BT              100.00                             Self-supplied
         Project                                                                             grid connection

         Huoqiu Huaqin Fengjing Town 108 MW                                                   Full capacity
   4                                                             BT              107.86                             Self-supplied
         Project                                                                             grid connection

         Dongxing      City    150     MW      Fishery-PV                                     Full capacity
   5                                                             BT              150.20                             Self-supplied
         Complementary Tourism Demonstration Project                                         grid connection

         Suzhou Jidian New Energy Co., Ltd. 70 MW                                             Full capacity
   6                                                             BT              112.39                             Self-supplied
         Sungrow Household PV Power Station Project                                          grid connection

         Shangshui County Jiaoyang 42 MW Distributed                                          Full capacity
   7                                                             BT                42.00                            Self-supplied
         Wind Power Project - New Energy                                                     grid connection

         Xian County Yangzhao New Energy 100 MW                                               Full capacity
   8                                                             BT              105.53                             Self-supplied
         Sungrow Household PV Power Station Project                                          grid connection

         Yangjiang Yangchun 120MW Agriculture-PV                                              Full capacity
   9                                                             BT              120.03                             Self-supplied
         Complementary Project                                                               grid connection

         Hainan Chunjie Qinghai Gonghe 100 MW                                                 Full capacity
  10                                                             BT              110.00                             Self-supplied
         Project                                                                             grid connection

                    Other BT power station projects                           3,066.02              -                        -
                   Other EPC power station projects                             859.18              -                        -
                                                                          The construction contract between the Company and the
                                                                          customer includes the performance obligation of power
                                                                          station construction. Since the customer can control the
                                                                          construction-in-progress during the contract performance,
                                                                          the Company considers it as a performance obligation
                                                                          within a certain period of time, and recognizes revenue
                                                                          according to the progress of performance, unless the
            Accounting treatment for BT and EPC models
                                                                          progress    of   performance     cannot    be      reasonably
                                                                          determined. The Company determines the performance
                                                                          progress of service provision according to the percentage
                                                                          of investment. The performance progress is the ratio of
                                                                          the actual cost incurred for the performance of the
                                                                          contract versus the estimated cost of the contract. The
                                                                          Company re-estimates the progress of completion or the


                                                                                                                                          26
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

                                                                          labor service provided on the date of the balance sheet, so
                                                                          that it can reflect changes in the contract performance.


(2) Industries, products, geographies, and sales models that account for more than 10% of the Company's
operating income or operating profit

√ Applicable □ Not Applicable
                                                                                                                             (in RMB)

                                                                      Gross      YoY changes in    YoY changes in     YoY changes in
                                Operating income   Operating cost
                                                                      margin    operating income   operating cost      gross margin

By sector

PV                              18,931,185,451.66 14,500,901,449.36   23.40%             18.15%             16.97%               0.77%

Energy storage                   3,137,622,772.49 2,695,021,137.94    14.11%            168.51%           195.55%               -7.86%

By product

PV inverters and other
power           conversion 9,050,773,565.63 5,991,308,013.70          33.80%             20.44%             22.72%              -1.23%
devices

Power                 station
investment               and 9,678,744,379.61 8,526,446,450.57        11.91%             17.65%             14.50%               2.42%
development

Energy storage systems           3,137,622,772.49 2,695,021,137.94    14.11%            168.51%           195.55%               -7.86%

By geography

Mainland       China     (not
including Hong Kong, 14,959,211,117.66 12,106,755,867.92              19.07%             17.94%             14.69%               2.29%
Macau and Taiwan)

Overseas           (including
Hong Kong, Macao and 9,177,387,608.89 6,658,478,873.16                27.45%             39.02%             55.54%              -7.71%
Taiwan)

Where the statistical caliber for the Company's core business data was adjusted in the reporting period, the adjusted core business
data in the last year at the end of the reporting period
□ Applicable √ Not Applicable


(3) Whether the Company's physical sales revenue is greater than the labor revenue

√ Yes □ No

          Sector                    Item                UoM                    2021                2020               YoY Change

                                    Sales                  GW                   47                  35                  34.29%

     PV inverters                Production                GW                   56                  36                  55.56%

                                  Inventory                GW                   18                   9                  100.00%



                                                                                                                                        27
                                                                                                       Sungrow Power Supply Co., Ltd.
                                                                                         2021 Annual Report (Concise Version in English)

Reasons for year-on-year changes greater than 30%
√ Applicable □ Not Applicable
In the reporting period, the newly installed capacity of the global PV market continued to grow, the Company's global market
position further improved, and the production volume and shipment volume increased year-on-year. In order to secure the supply to
overseas markets, product inventory was built in advance.


(4) Performance of major sales contracts and purchase contracts entered by the Company up to the
reporting period

□ Applicable √ Not Applicable


(5) Composition of operating cost

By industry
                                                                                                                             (in RMB)

                                                        2021                                     2020

                                                                    % of                                   % of
     Industry               Item                                                                                        YoY Change
                                              Amount             Operating              Amount           Operating
                                                                   Income                                 Income

          PV           Raw materials     11,648,179,923.82        80.33%            8,840,913,753.98      71.32%          31.75%


(6) Whether the scope of consolidation changed in the reporting period

√ Yes □ No
For details, please refer to the Description of Changes in the Scope of Consolidation in Section X Financial Reports.


(7) Significant changes or adjustments to the Company's business, products or services in the reporting
period

□ Applicable √ Not Applicable


(8) Major Customers and Major Suppliers

Major customers

Total amount of sales to top five customers (RMB)                                                                     2,230,143,897.90

Proportion of total sales amount to top five customers in the annual total sales                                                  9.24%

Proportion of related party sales to top five customers in the annual total sales                                                 0.00%

Sales to top 5 customers

    No.                     Customer Name                            Sales (RMB)                        % of Total Annual Sales

1              Customer 1                                                    536,356,418.52                                       2.22%

2              Customer 2                                                    501,990,419.56                                       2.08%


                                                                                                                                      28
                                                                                              Sungrow Power Supply Co., Ltd.
                                                                                2021 Annual Report (Concise Version in English)

3          Customer 3                                                  433,101,088.69                                       1.79%

4          Customer 4                                                  385,153,319.91                                       1.60%

5          Customer 5                                                  373,542,651.22                                       1.55%

Total                             --                                  2,230,143,897.90                                      9.24%

Other information about major customers
□ Applicable √ Not Applicable
Major suppliers

Total amount of purchase from top five suppliers (RMB)                                                           5,004,117,657.91

Proportion of total purchase amount from top five suppliers in the
                                                                                                                           21.40%
annual purchase amount

Proportion of related party purchase from top five suppliers in the
                                                                                                                            0.00%
annual purchase amount

Purchase from top 5 suppliers

    No.                    Supplier Name                 Purchase Amount (RMB)              % of Total Annual Purchase Amount

1            Supplier 1                                           1,315,122,615.33                                          5.62%

2            Supplier 2                                           1,043,880,170.84                                          4.46%

3            Supplier 3                                               996,846,181.74                                        4.26%

4            Supplier 4                                               832,367,154.11                                        3.56%

5            Supplier 5                                               815,901,535.89                                        3.49%

Total                              --                             5,004,117,657.91                                         21.40%

Other information about major suppliers
□ Applicable √ Not Applicable


3. Expenses

                                                                                                                        (in RMB)

                                  2021           2020          YOY Change                      Notes on Major Changes

                                                                                  Mainly due to the large increase in the salaries
                                                                                  of sales staff and the post-sales maintenance
Selling expenses           1,582,578,297.46   973,407,951.35             62.58%
                                                                                  fee accrued for the increased sales revenue in
                                                                                  the current period.

Management expenses          491,053,482.80   396,100,336.53             23.97%

Financial expenses           283,256,851.58   261,228,514.51              8.43%

                                                                                  Mainly due to the large increase in the salaries
                                                                                  of R&D staff and the use of raw materials for
R&D expenses               1,161,389,788.60   806,352,266.48             44.03%
                                                                                  the expanded R&D investment in the current
                                                                                  period.



                                                                                                                                   29
                                                                                             Sungrow Power Supply Co., Ltd.
                                                                               2021 Annual Report (Concise Version in English)

4. R&D Investment

√ Applicable □ Not Applicable

    Major R&D                                                                                         Impacts Expected on the
                              Purpose               Progress                Objective
      Projects                                                                                            Company’s Growth

The Logger4000       Quickly launch the                          It should support 30 ms fast      Fast      scheduling          gets
with supporting box Logger4000 product and                       scheduling, AC PID                increasingly important, and
EMU200 project       supporting                                  acquisition and energy            has become an entry-level
                     communication box to                        management equipment. With consideration             for        bid
                     enable fast scheduling                      the AC insulation impedance evaluation of ground power
                     and platformization.                        detection (AC ISO) and local stations.        The     supporting
                                                                 wireless operation and            model SG320HX is equipped
                                                                 maintenance functions             with the 30 ms scheduling
                                                                 integrated, it should support     feature to corner a market.
                                                                 data acquisition, networking,
                                                                 and energy management
                                                                 solutions of ground power
                                                                 stations, thereby addressing
                                                                 customers' needs for a
                                                                 systematic solution in this
                                                                 power station. It should
                                              Ready for volume   deliver an internal circulation
                                              shipment           time of 1 ms, a
                                                                 communication time from
                                                                 master PLC to slave PLC
                                                                 (including time for
                                                                 modulation, sending and
                                                                 receiving) of 9 ms, and an
                                                                 action time of 20 ms for
                                                                 inverters to go up to 90%. In
                                                                 addition to the 30 ms fast
                                                                 regulation, it should also
                                                                 deliver the basic functions of
                                                                 SG320HX, including data
                                                                 display, parameter setting,
                                                                 software upgrade, IV
                                                                 scanning, grid scheduling,
                                                                 data forwarding (IEC104),
                                                                 and AC PID setting.

SG8800UD Series Modular design reduces                           Designed    on    the    mature In the next three years, the
of products          power generation loss in Ready for volume   modular    platform      in   the ground power station market
                     case of faults; optimized shipment          industry, the inverter unit is is expected to be stably
                     system design improves                      built into modules of 1 MW. growing. The new generation



                                                                                                                                    30
                                                                                              Sungrow Power Supply Co., Ltd.
                                                                                2021 Annual Report (Concise Version in English)

                   equipment     utilization;                  An 8.8 MW series integrated of centralized products will be
                   enhanced smart operation                    MV         system         can       be built into modules, so as to
                   and maintenance reduces                     accommodated in a 40-foot solve the problem of large
                   maintenance costs.                          container, and a 4.4 MW power generation loss in the
                                                               system in a 20-foot container. case of failure suffered by the
                                                               The                       supporting previous          generation       of
                                                               210-component combiner box products,                   and      drastically
                                                               and       intelligent     night-time reduce the cost. The new
                                                               cut-off         device          further product   is     expected       to
                                                               enhances the competitiveness gradually                  replace        the
                                                               of the system.                         SG3125HV              series    and
                                                               The new product has inherited become a mainstream product
                                                               the control algorithm, the in the centralized solution for
                                                               regional                      standard ground power stations. We
                                                               requirements            and      main expect to increase the market
                                                               functions           from           the share of our products with
                                                               SG3125HV series, and works better quality.
                                                               with the 182 and 210 series of
                                                               components available in the
                                                               market to further reduce the
                                                               LCOE of power stations by
                                                               reducing the system cost, the
                                                               equipment cost per watt and
                                                               the maintenance cost.
                                                               Built with IP65 protection, it
                                                               is safe and reliable, and
                                                               supports real-time monitoring
                                                               of DC parallel arcing. Being
                                                               the only product that has
                                                               passed the CEI testing, it can
                                                               operate stably on weak power
                                                               grids with an SCR of 1.02. Its
                                                               reactive power response is
                                                               less than 20 ms, which is the
                                                               only one that outperforms the
                                                               national standard. With a
                                                               lower LCOE, it can operate at
                                                               1.1 MW independently. Its
                                                               faults are independent from
                                                               each other, contributing to
                                                               reducing the power generation
                                                               loss by 95%.

SG125CX            The main purpose is cost Ready for volume   Minimal installation: compact Reduce cost and improve the
three-phase   string reduction; therefore, a shipment          size      and     light       weight, competitiveness of our


                                                                                                                                         31
                                                                                                        Sungrow Power Supply Co., Ltd.
                                                                                          2021 Annual Report (Concise Version in English)

PV inverter          single-tube solution          is                      standalone IP66 enclosure, products in domestic and
                     used for BOOST, the                                   communication plug & Play, overseas markets.
                     input current is increased                            and    tool-free     installation.
                     from 26A to 30A. It can                               Ultimate safety: detects and
                     work with the 182/210                                 extinguishes       arcs     in     2
                     components, and the AC                                seconds, precisely identifies
                     side wiring is optimized                              17    types    of     component
                     for better heat dissipation                           exceptions.
                     and    noise         reduction,                       Intelligent    operation         and
                     thereby improving user                                maintenance         copes        with
                     and                 installation                      different application scenarios
                     experience.                                           flexibly, enabling an optimal
                                                                           system solution.

The       ST2752UX The          global       energy                        By introducing liquid cooling,
energy        storage storage      market          is                      modular pre-installation,
battery       system growing rapidly. In order                             cluster-level DC/DC, BMS
project              to    enhance          product                        battery health management
                     competitiveness,           new                        functions and the liquid
                     energy storage products                               cooling + horizontal RACK
                     need to be developed to                               design, the ESS integration             In the next three to four years,
                     cope with the market                                  level is improved, the power            three major energy storage
                     demand.                                               cables between packs are                markets overseas (Europe,
                                                                           shortened, and the CAPEX is North America, Asia-Pacific)
                                                                           reduced;                                are expected to grow steadily
                                                                           The supporting liquid cooling and rapidly under the policy
                                                                           features small thermal                  actions of the respective
                                                                           resistance, the operational             countries. Take the North
                                                        Ready for volume   time of chiller units can be            America market as an
                                                        shipment           flexibly controlled, the                example. The large-scale
                                                                           grid-connection voltage can             ground energy storage market
                                                                           be raised, so as to improve             size in North America is 2.07
                                                                           system efficiency and reduce GWh in 2020, which is
                                                                           OPEX;                                   expected to reach 9.254 GWh
                                                                           Liquid cooling improves                 in 2024. This product can help
                                                                           temperature uniformity, and             the Company to secure a solid
                                                                           cluster-level DC/DC reduces position in the energy storage
                                                                           the number of cells in a                market in the future.
                                                                           battery system, thereby
                                                                           minimizing the cask effect of
                                                                           the batteries and reducing
                                                                           OPEX;
                                                                           The strong correlation
                                                                           between cluster-level DC/DC



                                                                                                                                                   32
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

                                                                    decoupling voltage and
                                                                    capacity enables flexible
                                                                    initial configuration and
                                                                    convenient addition at a later
                                                                    stage;
                                                                    Modular pre-installation
                                                                    eliminates field installation
                                                                    and reduces CAPEX. It also
                                                                    shortens the lead time to grid
                                                                    connection, lowers risk in the
                                                                    field and enhances customer
                                                                    experience;
                                                                    BMS enhances battery health
                                                                    management functions and
                                                                    improves customer
                                                                    experience.

Statement of R&D staff

                                              2021                            2020                         % of Change

Total R&D Staff                                            2,734                            1,824                        49.89%

R&D Staff in Total HC                                    40.65%                           40.61%                          0.04%

Educational Background of R&D Staff

Bachelor                                                   1,350                                841                      60.52%

Master                                                      994                                 666                      49.25%

Doctor                                                        31                                 23                      34.78%

College Graduate                                            359                                 294                      22.11%

Age Structure of R&D Staff

Below 3o                                                   1,031                                655                      57.40%

30 to 40                                                   1,529                            1,051                        45.48%

Above 40                                                    174                                 118                      47.46%

R&D investment size and percentage in operating proceeds in the past three years

                                              2021                            2020                            2019

R&D investment (RMB)                           1,161,389,788.60                    806,352,266.48                635,873,987.32


Percentage of R&D investment
                                                          4.81%                            4.18%                          4.89%
in operating proceeds


Capitalized R&D expenditure
                                                            0.00                                0.00                        0.00
(RMB)

Capitalized R&D expenditure                               0.00%                            0.00%                          0.00%



                                                                                                                               33
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

as   a   percentage   of   R&D
investment

Capitalized R&D expenditure
as a percentage of net profit in                            0.00%                            0.00%                          0.00%
the period

Reasons for substantial changes in R&D staff and their impacts
□ Applicable √ Not Applicable
Reasons for substantial change in percentage of total R&D investment in operating income as compared with the previous year
□ Applicable √ Not Applicable
Reasons for substantial changes in the capitalization rate of R&D investment and the justifications
□ Applicable √ Not Applicable


5. Cash Flows

                                                                                                                        (in RMB)

              Item                             2021                               2020                     YoY Change (%)

Cash inflow from operating
                                               24,052,818,855.57                  20,231,423,522.03                        18.89%
activities

Cash outflow from operating
                                               25,691,450,978.34                  17,142,765,297.44                        49.87%
activities

Net cash flow from operating
                                                -1,638,632,122.77                  3,088,658,224.59                      -153.05%
activities

Cash inflow from investment
                                                 4,557,428,471.65                  1,167,140,332.14                       290.48%
activities

Cash outflow from investment
                                                 8,270,637,807.44                  1,280,963,652.80                       545.66%
activities

Net cash flow from investment
                                                -3,713,209,335.79                   -113,823,320.66                    -3,162.26%
activities

Cash inflow from financing
                                                 6,979,881,183.93                   954,745,847.07                        631.07%
activities

Cash outflow from financing
                                                 1,801,225,561.76                  1,148,060,804.43                        56.89%
activities

Net cash flow from financing
                                                 5,178,655,622.17                   -193,314,957.36                     2,778.87%
activities

Net increase in cash and cash
                                                  -192,686,945.97                  2,712,192,572.33                      -107.10%
equivalents

Explanation on main contributors to the significant YoY change in relevant data
√ Applicable □ Not Applicable
1.   Net cash flow from operating activities decreased by 153.05% YoY, which was mainly due to the large increase in cash
     payment for commodities and cash receipts for labor services in the current period;

                                                                                                                                 34
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

2.   Cash inflow from investment activities increased by 290.48% YoY, which was mainly due to the increase in cash from the
     recovery of project investment and investment returns of financial products in the current period;
3.   Cash outflow from investment activities increased by 545.66% YoY, which was mainly due to the increase in cash paid for
     investment in projects and financial products in the current period;
4.   Net cash flow from investing activities decreased by 3,162.26% YoY, which was mainly due to the large increase in cash
     outflow from investing activities in the current period;
5.   Cash inflow from financing activities increased by 631.07% YoY, which was mainly due to the large increase in cash received
     from investment and new borrowings in the current period;
6.   Cash outflow from financing activities increased by 56.89% YoY, which was mainly due to the large increase in cash paid for
     borrowings in the current period;
7.   Net cash flow from financing activities increased by 2,778.87% YoY, which was mainly due to the large increase in cash
     received from investment and new borrowings in the current period;
8.   Net increase in cash and cash equivalents decreased by 107.10% YoY, which was mainly due to the large increase in cash
     payment for commodities and investments, as well as cash receipts for labor services.
Explanation on reasons for the significant difference between the net cash flow from operating activities and the net profit of the year
during the reporting period
□ Applicable √ Not Applicable


V. Status of Non-Core Business

□ Applicable √ Not Applicable


VI. Analysis of Assets and Liabilities

1. Significant changes in asset composition

                                                                                                                            (in RMB)

                                         End of Year 2021                    Beginning of Year 2021                    Notes on Major
                                                                                                              Change
                                   Amount          % of Total Assets        Amount       % of Total Assets               Variations

Money funds                    7,790,144,016.01              18.18% 7,417,442,785.55               26.28%     -8.10%

Accounts receivable            8,748,141,497.54              20.42% 6,585,489,222.22               23.33%     -2.91%

Contract assets                1,364,393,136.40                 3.18%   972,128,094.97                3.44%   -0.26%

Inventory                     10,767,519,365.64              25.13% 3,873,426,789.49               13.72% 11.41%

Long-term equity
                                  115,159,366.42                0.27%   406,420,414.50                1.44%   -1.17%
investment

Fixed assets                   4,245,993,353.02                 9.91% 3,240,954,477.91             11.48%     -1.57%

Construction-in-progress          424,310,899.34                0.99%   211,746,133.58                0.75%    0.24%

Right-of-use asset                344,386,440.69                0.80%   234,062,622.80                0.82%   -0.02%

Short-term loan                1,524,580,849.05                 3.56%   135,125,000.00                0.48%    3.08%

Contract liabilities           1,713,946,572.46                 4.00% 1,408,025,979.44                4.99%   -0.99%




                                                                                                                                      35
                                                                                                        Sungrow Power Supply Co., Ltd.
                                                                                          2021 Annual Report (Concise Version in English)

Long-term loan                    1,891,445,000.00               4.42% 1,781,240,000.00                      6.31%     -1.89%

Lease liability                     283,789,579.70               0.66%        198,773,077.53                 0.70%     -0.04%

High percentage of overseas assets
□ Applicable √ Not Applicable


2. Assets and liabilities measured at fair value

√ Applicable □ Not Applicable
                                                                                                                                       (in RMB)

                                  Gains/losses    Cumulative
                                                                 Impairment      Amount of          Amount of
                   Beginning from changes changes at fair                                                             Other
     Item                                                        accrued for procurement in         sales in the                   Closing amount
                    Amount        at fair value value included                                                       changes
                                                                 the period       the period          period
                                  in the period    in equity

Financial Assets

1.    Trading
financial
assets (excl. 671,605,158. 66,430,233.4                                         5,000,000,000. 3,152,064,03 1,216,917,3 3,802,888,726.
derivative                   47               6                                                00           0.05        64.15                 03
financial
assets)

2.
Derivative
                  1,444,500.00        8,062.95                                  10,000,000.00 1,444,500.00                          10,008,062.95
financial
assets

3.        Other
                  1,429,890,90                                                  3,228,762,477. 3,895,937,47
investments                                                                                                                        762,715,906.62
                          3.46                                                                 07           3.91
in debts

4.
Investment
                  146,361,887.                                                  1,581,936,542. 546,955,469. -1,141,334,
in        other                                                                                                                     40,008,527.59
                             62                                                                24              94      432.33
equity
instruments

Subtotal of
                  2,249,302,44 66,438,296.4                                     9,820,699,019. 7,596,401,47 75,582,931. 4,615,621,223.
financial
                          9.55                1                                                31           3.90              82              19
assets

Sum               2,249,302,44 66,438,296.4                                     9,820,699,019. 7,596,401,47 75,582,931. 4,615,621,223.
                          9.55                1                                                31           3.90              82              19

Financial
                          0.00                                                                                                               0.00
liabilities

Other changes



                                                                                                                                                36
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

None
Significant changes in the measurement attributes of the Company's main assets during the reporting period
□ Yes √ No


3. Restricted asset rights as of the end of the reporting period


Item                              Book Value as at Dec. 31, 2021    Reasons for Restriction

Cash in bank                              10,841,361.00             Judicial freeze

Other monetary assets                   1,219,302,862.25            Bank acceptance, letter of guarantee, letter of credit and PV
                                                                    loan deposit

Notes receivable                         228,672,750.00             Long-term loan pledge, short-term loan pledge, bills payable
                                                                    pledge

Receivables financing                    136,816,862.19             Long-term loan pledge, short-term loan pledge, bills payable
                                                                    pledge

Fixed assets                             766,420,510.53             Long-term loan collateral

Accounts receivable                      581,076,901.71             Long-term loan pledge

Other debtors                             27,708,495.80             Long-term loan pledge


VII. Investment Analysis

1. Overview

√ Applicable □ Not Applicable

 Investment in the reporting period (RMB)     Investment in the same period last year (RMB)                    Change

               2,674,922,334.76                             1,038,654,106.28                                  157.54%


2. Significant equity investment received in the reporting period

□ Applicable √ Not Applicable


3. Significant non-equity investment in progress in the reporting period

□ Applicable √ Not Applicable


4. Financial assets measured at fair value

□ Applicable √ Not Applicable


5. Use of funds raised

√ Applicable □ Not Applicable


                                                                                                                                  37
                                                                                                           Sungrow Power Supply Co., Ltd.
                                                                                             2021 Annual Report (Concise Version in English)

(1) General use of funds raised

√ Applicable □ Not Applicable
                                                                                                                                (in 10K RMB)

                                                                                             Percenta
                                                                 Total                         ge of
                                                                                                                       Purpose      Amount of
                                        Total                 amount of Cumulativ cumulati
                                                                                                                          and         raised
                                      amount of Cumulativ        raised       e amount          ve
  Year of    Fundrais                                                                                   Total funds whereabou funds that
                        Total funds     raised     e amount funds with of raised              amount
fundraisin      ing                                                                                     raised but       ts of      have been
                          raised      funds used of raised     changed        funds with of raised
     g        mode                                                                                       not used       unused       idle for
                                        in this   funds used use in the        changed         funds
                                                                                                                         funds      more than
                                        period                 reporting         use           with
                                                                                                                        raised      two years
                                                                period                        changed
                                                                                                use

                                                                                                                      RMB
                                                                                                                      283,515,30
                                                                                                                      0 in the
                                                                                                                      special
                                                                                                                      account
             Non-pu                                                                                                   for funds
2021         blic        362,314.61 84,624.67 84,624.67                   0              0      0.00%    278,351.53 raised,                     0
             offering                                                                                                 RMB
                                                                                                                      2,500,000,
                                                                                                                      000 used
                                                                                                                      on undue
                                                                                                                      financial
                                                                                                                      products.

Total           --       362,314.61 84,624.67 84,624.67                   0              0      0.00%    278,351.53        --                   0

                                             Description of the general use of funds raised

(1) Before the above-mentioned funds raised were in place, the Company had accumulatively invested RMB 243,141,600 in
fund-raising projects with self-raised funds as of October 11, 2021. After the funds raised were in place, the Company replaced the
self-raised funds of RMB 243,141,600 with the funds raised for the specific projects.
(2) An amount of RMB 603,105,100 was directly invested in fund-raising projects. In 2021, the Company accumulatively used
RMB 846,246,700 of funds raised, gained returns and interests amounting to RMB 740,480 from financial products bought with
the temporarily idle funds raised, and gained an interest of RMB 5,871,000 after deducting service charges from the special account
for funds raised. The balance of funds raised as of December 31, 2021 was RMB 2,783,515,300.


(2) Projects commitments of raised funds

√ Applicable □ Not Applicable




                                                                                                                                                38
                                                                                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                                                                                     2021 Annual Report (Concise Version in English)


                                                                                                                                                                                        (in 10K RMB)

                                                                                                                                                             Cumulative
                                                     Total
                                      Changes                     Total                       Cumulative        Investment        Date of      Benefit         benefit
                                                   investment                  Amount                                                                                                      Substantial
        Investment projects          in projects                investment                    amount of       progress by the    projects      realized realized by Achieved the
                                                    amount                   invested in                                                                                                  changes in the
     committed and target of         (including                   after                      investment by      end of the       reaching       in the       the end of      expected
                                                   committed                 the reporting                                                                                                     project
         over-raised funds             partial                  adjustment                   the end of the       period        scheduled      reporting        the          benefits
                                                   by raised                    period                                                                                                        feasibility
                                     changes)                      (1)                        period (2)        (3)=(2)/(1)     availability    period        reporting
                                                     funds
                                                                                                                                                               period

Investment Project Commitments

1. The New Energy Power
Generation              Equipment
Manufacturing Base Project No                         241,787 240,343.09       25,034.06          25,034.06           10.42% Apr. 1, 2024                0               0 No            No
with an annual output of
100GW

2.    The      R&D      Innovation
                                     No                63,970       63,970     14,464.04          14,464.04           22.61% Mar. 1, 2024                0               0 No            No
Center Expansion Project

3.    The      Global    Marketing
                                     No                49,835       49,835     36,960.04          36,960.04           74.16% Mar. 1, 2023                0               0 No            No
Service System Project

4.       The         Supplementary
                                     No              8,166.52     8,166.52       8,166.52          8,166.52          100.00%                             0               0 No            No
Working Capital Project

Subtotal        of      committed
                                          --       363,758.52 362,314.61       84,624.67          84,624.67         --               --                  0               0      --                --
investment projects

Target of over-raised funds

-

Total                                     --       363,758.52 362,314.61       84,624.67          84,624.67         --               --                  0               0      --                --


                                                                                                                                                                                                            39
                                                                                                                                                              Sungrow Power Supply Co., Ltd.
                                                                                                                                                2021 Annual Report (Concise Version in English)
Description of projects behind Not Applicable
planned schedule or failing to
gain expected returns and the
reasons (by project)

Description     of       material Not Applicable
changes in project feasibility

Amount,       purpose,       and Not Applicable
progress of use of over-raised
funds

Changes in implementation Not Applicable
locations of projects invested
with funds raised

Changes in implementation Not Applicable
modes of projects invested
with funds raised

Preliminary investment and          Applicable
replacement in projects
invested with funds raised

Changes in implementation
modes of projects invested Not Applicable
with funds raised

                                    Applicable
                                    As of October 11, 2021, the Company had invested RMB 243,141,600 in fund-raising projects with self-raised funds, of which RMB 143,827,900 was for the
Preliminary investment and
                                    new energy power generation equipment manufacturing base with an annual output of 100GW, RMB 94,743,100 for the expansion of R&D Innovation
replacement      in      projects
                                    Center, and RMB 4,570,600 for the global marketing service system project. At the 12th meeting of the fourth Board of Directors, the Proposal on Replacing
invested with funds raised
                                    Self-Raised Funds Previously Used in Fund-Raising Projects was reviewed and approved, and it was agreed that the Company should replace RMB
                                    243,141,600 of self-raised funds previously used in fund-raising projects with the funds raised. RSM China (Special General Partnership) verified the

                                                                                                                                                                                                 40
                                                                                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                                                                                     2021 Annual Report (Concise Version in English)
                                  advanced investment in the above-mentioned fundraising projects, and issued the Assurance Report on the Advance Input in Fund-Raising Projects made by
                                  Sungrow Power Supply Co., Ltd. with Self-Raised Funds (RSM [2021] No. 230Z2674) on October 12, 2021.

Description of temporarily        Not Applicable
replenishing working capital
with idle funds raised

Amount of surplus raised fund Not Applicable
in project implementation and
reasons behind

Purpose and whereabouts of        As of December 31, 2021, the unused funds raised amounted to RMB 2,783,515,300, of which RMB 283,515,300 was deposited in the special account for
unused funds raised               funds raised, and RMB 2,500,000,000 was used on undue financial products.

                                  On April 16, 2021, the Company held the first extraordinary general meeting in 2021, at which the Proposal on Requesting the Shareholders’ Meeting to
                                  Authorize the Board of Directors to Proceed with the Issuance to Specific Objects was reviewed and approved. The Board of Directors was authorized to
                                  handle all matters related to the issuance of shares to specific objects in 2021, including but not limited to determining the specific arrangements for the use of
                                  the funds raised for this issuance to specific objects.
Problems or other situations in
                                  On October 21, 2021, Company held the 12th meeting of the fourth Board of Directors and the 11th meeting of the fourth Board of Supervisors, at which the
the use and disclosure of
                                  Proposal on Paying the Fund-Raising Investment Projects with Bank Acceptances and Replacing Them Equally with Funds Raised was reviewed and
funds raised
                                  approved. It was agreed that during the implementation of the fund-raising investment project, the Company could use bank acceptances for payments
                                  involved in the project, and regularly transfer the same amount from the special account of funds raised to the Company's general settlement account. The
                                  Board of Supervisors, independent directors and sponsors expressed their consent. As of December 31, 2021, the Company had accumulatively made
                                  investment project-related payments with RMB 43.148 million of bank acceptances, and the same amount had been replaced with funds raised.


(3) Projects with changes in funds raised

□ Applicable √ Not Applicable
There were no projects with changes in funds raised in the reporting period.




                                                                                                                                                                                                        41
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

VIII. Sale of Major Assets or Equity

1. Sale of major assets

□ Applicable √ Not Applicable
The Company did not sell any major assets in the reporting period.


2. Sale of major equity

□ Applicable √ Not Applicable


IX. Analysis of Major Controlling and Holding Companies

√ Applicable □ Not Applicable
Major subsidiaries and holding companies that contribute to a net profit by 10% and above
                                                                                                                        (in 10KRMB)

  Company                               Main       Registered                               Operating     Operating
                     Type                                       Total Assets   Net Assets                                 Net Profit
    Name                            Business        Capital                                  Income         Profit

Sungrow                           Power station
Renewables                        investment
               Subsidiary                         142,053.44    1,720,068.87   513,486.36 1,072,313.02      70,631.69        55,422.6
Development                       and
Co., Ltd.                         development

Subsidiaries acquired or disposed in the reporting period
√ Applicable □ Not Applicable
Description of major controlling and holding companies
For details, please refer to the Description of Changes in the Scope of Consolidation in Section X Financial Reports.


X. Structured Entities Controlled by the Company

□ Applicable √ Not Applicable


XI. Prospects of the Company’s Future Development

(1) Planned Prospects
By thoroughly implementing the overall strategic guideline of "Focusing on the field of clean power, promoting related
diversification in an innovative manner at low-cost, striving to improve the market, technology and synergy capabilities, and
achieving rapid and sustainable growth”, the Company shall seize the historical opportunity of the rapid development of green
energies worldwide, focus on the main sections including solar energy, wind energy, energy storage, electricity and hydrogen energy,
make in-depth strategic exploration, and continue to expand the global leading edge.
(2) Operating Plan
2022 will be a year of accelerated development for green energies worldwide. In China, solar-wind energy base projects rapidly
move forward with county-wide deployments blooming, the new energy storage market is expected to rise, and the development
momentum of new energy vehicles and charging piles continues. Outside China, the growth trend in clean energy continues in the


                                                                                                                                       42
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

United States, the process of energy transition and independence is accelerating in Europe, and renewable energies are expected to
grow rapidly in India, Brazil and other regions.
In 2022, the Company will seize the historical opportunity of the rapid development of green energies worldwide, focus on the core
business, lead and empower the industry to further strengthen technological innovation, deepen global strategic deployment, and
reinforce the supply chain assurance capabilities, so as to comprehensively upscale the brand power, product power and marketing
power, widen the leading edge of the core business, and achieve rapid and sustainable growth.
In order to achieve the annual operating objectives, the Company plans to take the following key actions:
1.   Strengthen technological innovation and consolidate the leading position of products; improve insights on customer demand and
     product definition; fully leverage the scientific research capabilities and advantages of R&D bases in Hefei, Nanjing, and
     Shenzhen to continuously promote product upgrading; strengthen school-enterprise cooperation to improve the scientific
     research strength, and reinforce the reserve of key technologies and future technologies.
2.   Strengthen supply chain collaboration and consolidate global delivery capabilities. Strengthen global procurement capabilities,
     and consolidate strategic partnerships with suppliers, so as to improve the supply chain assurance capabilities. Establish a global
     production and delivery system, accelerate the Industrial Park Stage III Project and the energy storage expansion project,
     thereby improving production and delivery capabilities.
3.   Deepen global strategic deployment and enhance global influence. Adhere to the strategy of serving the world with a worldwide
     footprint, continue to improve localization, and strive to improve the global brand, marketing and service capabilities with a
     focus on reinforcing the global channel system.
4.   Improve the refined management level of power stations, energy storage and other projects to mitigate project operation risks.
     Strengthen the pre-judgment of project economics, and use comprehensive information technology to improve process
     management and control, thereby enabling refined management across the full-cycle of projects from development, construction
     to handover, improving project profitability, and avoiding project operation risks.
5.   Continuously improve organizational capabilities and activate development momentum. Optimize the closed-loop
     organizational capability improvement system with innovation, speed, efficiency, and human capital in the center. Further
     enhance organizational vitality and execution through a range of measures such as culture shaping, development traction,
     motivation, strategy communication, and strategy tracking, hence to ensure the efficient implementation of strategies.
6.   Reinforce the prevention of the COVID-19 epidemic, minimize the epidemic impact on employees’ health and the Company’s
     production and operation, ensure that annual tasks are completed on schedule.


XII. Events Register for Research Visits, Communication, and Interviews in the Period

√ Applicable □ Not Applicable

Date              Venue              Type of Visit     Type of Visitors Visitors            Main       Contents Disclosure   of   Basic
                                                                                            of              the Research Data
                                                                                            Discussion     and
                                                                                            Information
                                                                                            Provided

January 7, 2021 Sungrow No. 5 Field Research           Institution       24    institutions Production            www.cninfo.com.cn
                  Conference                                             including CITIC schedule          and
                  Room                                                   Securities, UBS profitability       of
                                                                         Securities,        the    Company's
                                                                         Changjiang         inverter
                                                                         Securities,    and products,     sales
                                                                         Boyuan Funds       coverage       and


                                                                                                                                      43
                                                                                            Sungrow Power Supply Co., Ltd.
                                                                              2021 Annual Report (Concise Version in English)

                                                                                      prospects         of
                                                                                      products, and the
                                                                                      future pattern of
                                                                                      the           energy
                                                                                      storage business

March 26, 2021 Sungrow No. 11 Field Research      Institution   30      institutions The Company's www.cninfo.com.cn
                 Conference                                     including CITIC development
                 Room                                           Securities,           priorities        in
                                                                Essence               2021,            the
                                                                Securities, Junxi Company's
                                                                Capital,              competitiveness
                                                                Dingfeng Asset, in the inverter
                                                                Tongben Invest, field, the impact
                                                                China         Asset of          upstream
                                                                Management,           price     increases
                                                                Orient        Jiafu, in       the      PV
                                                                Horizon       Asset, industry on the
                                                                Nord Fund, GF Company
                                                                Qianhe,     Guotai
                                                                Junan,        CICC,
                                                                and        Yichuan
                                                                Investment

May 6, 2021      Online                 Other     Other         Investors             Overall                 www.cninfo.com.cn
                 interaction                                    participating     in operation          in
                 platform         of                            the performance 2020
                 Shenzhen                                       briefing via the
                 Securities                                     online
                 Information Co.,                               interaction
                 Ltd.                                           platform
                 (http://rs.p5w.net
                 )

November      02, Sungrow No. 11 Field Research   Institution   14      institutions Inverter market www.cninfo.com.cn
2021             Conference                                     including             dynamics,
                 Room                                           Zhongtai              development of
                                                                Securities,           the           energy
                                                                Broad         Fund, storage business,
                                                                Chaser        Asset, and      plans     of
                                                                Zhengyuan             power         station
                                                                Investment, and investment             and
                                                                CIB Fund              development

November      12, SSE’s Getting to Other         Other         Investors             Status quo of the www.p5w.net
2021             Know          Listed                           participating     in new            energy
                 Companies Issue                                the activity via power              supply


                                                                                                                                  44
                                              Sungrow Power Supply Co., Ltd.
                                2021 Annual Report (Concise Version in English)

No.     306   -   the           online equipment
Sungrow Online    interaction         industry,
Event             platform            competitions,
                                      and prospects




                                                                            45
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)




                                    Section IV Corporate Governance

I.    Basic Situation of Corporate Governance

During the reporting period, the Company strictly followed the Company Law, the Securities Law, the Governance Guidelines for
Listed Companies, the Rules for Stock Listing at Shenzhen Stock Exchange as well as other laws and regulations to constantly
optimize the corporate governance structure, improve the internal control system, and achieve standardized operation.
The Company's overall operation in the reporting period was standardized and highly independent, the information disclosure was
standardized, and the actual situation was basically in line with the requirements in the CSRC normative documents on the
governance of listed companies.
a. About shareholders and the Shareholders’ Meeting
Shareholders of the Company hold equal status based on the shares they possess and assume corresponding obligations following the
provisions in the Articles of Association. The Company convenes and holds shareholders’ meetings in strict accordance with the
regulations and requirements of the Rules for the Shareholders’ Meeting of Listed Companies and the Rules of Procedure for the
Shareholder’s Meeting, making sure shareholders exercise their rights and interests legitimately, treating all shareholders equally,
and providing as much convenience as possible for shareholders to participate in the shareholders’ meetings, so that they can fully
exercise their rights as shareholders.
b. About the Company and the controlling shareholder
The Company’s controlling shareholder, Mr. Cao Renxian, strictly abides by the Governance Guidelines for Listed Companies, Rules
for GEM Stock Listing at Shenzhen Stock Exchange, Shenzhen Stock Exchange’s Regulatory Guidelines for GEM-Listed Companies,
and the Articles of Association to regulate his behavior. He makes no actions that directly or indirectly interfere with the Company's
decision-making and business activities beyond the shareholders’ meeting, nor jeopardize the interests of the Company and other
shareholders. There is no occurrence of the controlling shareholder taking up the Company's funds or the Company providing
guarantees for the controlling shareholder. The Company owns independent and complete business and is capable of operating
independently. The Company is independent from the controlling shareholder in terms of business, assets, personnel, organization
and finance, and the Company's Board of directors, Board of Supervisors, and internal organizations operate independently.
c. About directors and the Board of Directors.
The Board of Directors is composed of 8 directors, including 3 independent directors. The number of directors and the composition
of the Board of Directors are in line with the relevant laws, regulations and the Articles of Association. Directors perform their duties
in accordance with the Rules of Procedure for the Board of Directors, the Rules for Independent Director, and the Shenzhen Stock
Exchange’s Regulatory Guidelines for GEM-Listed Companies, attend board meetings and shareholders' meetings, diligently assume
their job responsibilities and obligations, and actively participate in relevant training to get familiar with the relevant laws and
regulations.
d. About supervisors and the Board of Supervisors
The Board of Supervisors is composed of 3 supervisors, including 2 employee supervisors. The number of supervisors and the
composition of the Board of Supervisors are in line with the requirements of laws and regulations. Supervisors perform their duties in
accordance with the Rules of Procedure for the Board of Supervisors, and supervise the Company’s major transactions, related
transactions, financial status, and the legitimacy and compliance of directors’ and executives’ job performance.
e. About performance evaluation and the incentive and restraint mechanism
The Remuneration and Evaluation Committee is set up under the Board of Directors, which has formulated the Working Rules of the
Remuneration and Evaluation Committee, established and implemented the performance evaluation system, and defined a scientific
system of indicators. The various centers, product lines, and departments make full use of the performance management tools to


                                                                                                                                      46
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

ensure objectives and performance plans are under control. The manager-in-charge holds the primary accountability for realizing
annual objectives and performance plans of the respective department. Each department further breaks down the work plan into
monthly and weekly tasks, and strives to achieve performance indicators on time, in quality and quantity, hence to ensure the
delivery of the Company's annual objectives. All accountable organizations and all employees are subject to regular performance
evaluation and objective assessment, and the evaluation results are used as the foundation for determining employees’ remuneration,
promotion/demotion, appraisal and job transfer.
f. About information disclosure and transparency
In strict accordance with relevant laws and regulations, as well as the requirements in the Information Disclosure Management
Procedures and the Investor Relations Management Procedures, the Company fairly discloses the relevant information in a truthful,
accurate, timely, and complete manner. The Company's Board Secretary is appointed to take charge of information disclosure,
coordinate the relations between the Company and investors, receive investors’ visits, reply investors' inquiries, and provide investors
with the information disclosed by the Company. The Company has also designated www.cninfo.com.cn as the website for disclosing
company information, China Securities Journal, Securities Times, Securities Daily and Shanghai Securities News as the newspapers
for disclosing the Company’s periodical reports, hence to ensure that all shareholders of the Company are informed of with equal
opportunities.
g. About stakeholders
The Company fully values and safeguards the legitimate rights and interests of relevant stakeholders, attaches great importance to the
Company's social responsibilities, actively collaborates with relevant stakeholders, and enhances communication and exchange with
all parties, so as to realize the coordination and balance of the interests of shareholders, employees, society and other parties, and
jointly promote the sustainable and healthy development of the Company.
Whether there is a material difference between the actual situation of corporate governance and laws, administrative regulations and
the CSRC regulations on the governance of listed companies
□ Yes √ No
There is no material difference between the actual situation of corporate governance and laws, administrative regulations and the
CSRC regulations on the governance of listed companies


II. The specific measures taken by the controlling shareholders and actual controllers to
    ensure the independence of the Company's assets, personnel, finance, organization and
    business

The Company is capable of operating its business independently and has set up a complete operation and management system that is
independent from the controlling shareholder in terms of business, personnel, assets, organization, and finance.


III. Horizontal competition

□ Applicable √ Not Applicable


IV. Information on the annual Shareholders’ Meeting and the extraordinary general
    meeting(s) held in the reporting period

1. The shareholders’ meeting in the reporting period


                                                  Investor
         Session                  Type                           Date of Meeting      Date of Disclosure           Resolution(s)
                                             Participation %


                                                                                                                                      47
                                                                                               Sungrow Power Supply Co., Ltd.
                                                                                 2021 Annual Report (Concise Version in English)

                                                                                                      No. 202-020 Announcement
The First Extraordinary                                                                               on the Resolutions of the
                          Extraordinary
General Meeting in                                44.50% Apr. 16, 2021          Apr. 16, 2021         First Extraordinary General
                          General Meeting
2021                                                                                                  Meeting in 2021 on
                                                                                                      http://www.cninfo.com.cn

                                                                                                      No. 202-041 Announcement
                          Annual                                                                      on the Resolutions of the
2020 Annual
                          Shareholders’          37.63% May 18, 2021           May 18, 2021          2020 Annual Shareholders’
Shareholders’ Meeting
                          Meeting                                                                     Meeting in 2021 on
                                                                                                      http://www.cninfo.com.cn

                                                                                                      No. 202-063 Announcement
The Second                                                                                            on the Resolutions of the
                          Extraordinary
Extraordinary General                             37.67% Aug. 20, 2021          Aug. 20, 2021         Second Extraordinary
                          General Meeting
Meeting in 2021                                                                                       General Meeting in 2021 on
                                                                                                      http://www.cninfo.com.cn

                                                                                                      No. 202-095 Announcement
The Third Extraordinary                                                                               on the Resolutions of the
                          Extraordinary
General Meeting in                                46.52% Dec. 20, 2021          Dec. 20, 2021         Third Extraordinary General
                          General Meeting
2021                                                                                                  Meeting in 2021 on
                                                                                                      http://www.cninfo.com.cn


2. The extraordinary general meeting(s) requested by preference shareholders with restored voting rights

□ Applicable √ Not Applicable


V. The Company’s voting rights difference arrangement

□ Applicable √ Not Applicable


VI. Corporate governance with the red-chip architecture

□ Applicable √ Not Applicable


VII.      Directors, Supervisors and Executives

1. Basic Situation


                                                                     Shares
                                                                                 Shares   Shares                Shares
                                                                     held at                                              Reason
                                                                                increased decrease    Other     held at
                                                  Office    Office       the                                                 for
  Name       Title    Status      Gender    Age                                  during   d during changes      the end
                                                  starts on ends on beginnin                                              changes
                                                                                  the       the      (shares)   of the
                                                                     g of the                                             in shares
                                                                                 period   period                period
                                                                     period



                                                                                                                                   48
                                                                                             Sungrow Power Supply Co., Ltd.
                                                                               2021 Annual Report (Concise Version in English)

           Chairma
Cao                     Incumbe                 Dec. 8,   May 19,   451,008,                              451,008,
           n      and             Male     54                                                                        -
Renxian                 nt                      2016      2023          000                                    000
           President

Zhang      Vice
                        Incumbe                 May 19, May 19,
Xucheng Chairma                   Male     50                       200,000              50,000            150,000 Sell
                        nt                      2020      2023
           n

Zheng      Director, Incumbe                    Dec. 8,   May 19,   13,076,3           1,100,00           11,976,3
                                  Male     54                                                                        Sell
Guibiao SVP             nt                      2016      2023           60                   0                 60

Zhao       Director, Incumbe                    Dec. 8,   May 19,   8,076,00           1,000,00           7,076,00
                                  Male     49                                                                        Sell
Wei        SVP          nt                      2016      2023            0                   0                  0

Liu Zhen Director Incumbe                       Dec. 8,   May 19,
                                  Male     46                                                                        -
                        nt                      2016      2023

Li         Ind.         Incumbe                 May 19, May 19,
                                  Male     59                                                                        -
Mingfa     Director nt                          2020      2023

Li         Ind.         Incumbe                 Dec. 8,   May 19,
                                  Male     69                                                                        -
Baoshan Director nt                             2016      2023

Gu         Ind.         Incumbe                 May 19, May 19,
                                  Female   59                                                                        -
Guang      Director nt                          2020      2023

Tao        Chairma
Gaozhou n of the
                        Incumbe                 Dec. 8,   May 19,
           Board of               Male     51                                                                        -
                        nt                      2016      2023
           Supervis
           ors

He Wei     Employe
           e            Incumbe                 Dec. 8,   May 19,
                                  Male     47                                                                        -
           Supervis nt                          2016      2023
           or

Li         Employe
Xiaomei e               Incumbe                 Dec. 8,   May 19,
                                  Female   54                                                                        -
           Supervis nt                          2016      2023
           or

Gu Yilei SVP            Incumbe                 Dec. 11, May 19,
                                  Male     44                       600,000            150,000             450,000 Sell
                        nt                      2018      2023

Zhang                   Incumbe                 Dec. 8,   May 19,
           VP                     Male     55                       300,000              75,000            225,000 Sell
Youquan                 nt                      2016      2023

Chen                    Incumbe                 Dec. 8,   May 19,
           VP                     Male     42                       500,000            125,000             375,000 Sell
Zhiqiang                nt                      2016      2023

Wu                      Incumbe                 Dec. 8,   May 19,
           VP                     Male     50                       500,000            125,000             375,000 Sell
Jiamao                  nt                      2016      2023

Cheng      VP           Incumbe Male       42 Dec. 8,     May 19,   500,000            125,000             375,000 Sell


                                                                                                                            49
                                                                                                         Sungrow Power Supply Co., Ltd.
                                                                                           2021 Annual Report (Concise Version in English)

Cheng                  nt                                   2016      2023

Xie
                       Incumbe                              Aug. 14, May 19,
Xiaoyon VP                         Male                46                       400,000              100,000             300,000 Sell
                       nt                                   2017      2023
g

Deng                   Incumbe                              Dec. 11, May 19,
           VP                      Male                46                       492,905              123,226             369,679 Sell
Dejun                  nt                                   2018      2023

Li         Finance Incumbe                                  Dec. 8,   May 19,   1,480,00                                1,200,00
                                   Male                47                                            280,000                         Sell
Guojun     Director nt                                      2016      2023            0                                          0

Li Shun                Incumbe                              Oct. 29, May 19,
           VP                      Male                45                        25,000                                   25,000 -
                       nt                                   2020      2023

Peng                   Incumbe                              Oct. 29, May 19,
           VP                      Male                45                       105,000               26,250              78,750 Sell
Chaocai                nt                                   2020      2023

Lu Yang VP,
                       Incumbe                              Oct. 21, May 19,
           Board                   Male                40                                                                            -
                       nt                                   2021      2023
           Secretary

Total                                                                           477,263,             3,279,47           473,983,
                --           --        --         --           --        --                      0                                       --
                                                                                    265                    6                 789

Resignation of directors/supervisors or dismissal of executives within the term of office during the reporting period
□ Yes √ No
Changes in directors, supervisors and executives of the Company
√ Applicable □ Not Applicable

        Name                Position             Type                 Date                                 Reason

                                                                                 In order to implement the Company's strategy, Mr. Xie
Xie xiaoyong         Board Secretary Departure                  Oct. 21, 2021    Xiaoyong resigned from the position of Board Secretary
                                                                                 and continued to serve as the Vice President.

                     VP, Board
Lu Yang                                     Appointment         Oct. 21, 2021    Appointment
                     Secretary


2. Incumbents Overview

The professional background, main work experience and job responsibilities of current directors, supervisors and executives of the
Company
(1) Directors
Mr. Cao Renxian, Chinese national with no permanent residency overseas, born in July 1968, master degree, and researcher, is
currently a delegate of the 13th National People's Congress and the chairman of the China Photovoltaic Industry Association. Mr.
Cao Renxian was one of the faculty of Hefei University of Technology from June 1993 to 1998, and worked in Sungrow Power
Supply Co., Ltd. from July 1998 to July 2001. He served the role of Executive Director and General Manager of Sungrow Power
Supply Co., Ltd. from July 2001 to August 2007, followed by the role of Chairman and General Manager from August 2007 to date.
He is the current Chairman and President of Sungrow.
Mr. Zhang Xucheng, Chinese national with no permanent residency overseas, born in June 1972, master degree. He served the roles



                                                                                                                                              50
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

of Vice Procurement Manager, Logistics Manager, Human Resources Manager and Senior Vice President of Sungrow. He is currently
the Vice Chairman of Sungrow, and the Executive Director and President of Sungrow Renewables Development Co., Ltd.
Mr. Zheng Guibiao, Chinese national with no permanent residency overseas, born in May 1968, master degree, and senior engineer.
He served the roles of Vice General Manager and Director of Sungrow, and is currently the Director and Senior Vice President of
Sungrow.
Mr. Zhao Wei, Chinese national with no permanent residency overseas, born in December 1973, Ph.D., and senior engineer. He
served the roles of Vice Director of Sungrow R&D Center, Vice General Manager and Director, and is currently the Director and
Senior Vice President of Sungrow.
Mr. Liu Zhen, Chinese national with no permanent residency overseas, born in September 1976, master degree. He was the Director
of the General Manager's Office of Anhui Guofeng Group Co., Ltd., the Board Secretary, Vice General Manager, Director and
General Manager of Anhui Guotong High-Tech Pipes Industry Co., Ltd., Vice General Manager of Anhui Xinhua Group Investment
Co., Ltd. and Executive Director of Beijing Huadi Investment Co., Ltd., Executive President of Anhui Nanxiang Wanshang Logistics
Industry Co., Ltd., Director and General Manager of Anhui Zhiying Investment Co., Ltd. He is currently a director of Sungrow and
the Chairman of Anhui Anyuan Investment Fund Management Co., Ltd.
Mr. Li Mingfa, Chinese national with no permanent residency overseas, born in February 1963, Ph.D., Level 2 professor and doctoral
supervisor of Anhui University. He was Director of the Law School of Anhui University and the Executive Vice Director of the
Graduate School of Anhui University. He is currently the Executive Director of the Civil Law Research Association of the China Law
Society, the Vice Director-General of the Anhui Civil and Commercial Law Research Association, the Legal Adviser of the Standing
Committee of the Anhui Provincial People's Congress, and the Expert Advisor of the Anhui Provincial People's Procuratorate. He is
currently an independent director of Sungrow and an independent director of Anhui Wantong Technology Co., Ltd.
Mr. Li Baoshan, Chinese national with no permanent residency overseas, born in March 1953, bachelor, and senior engineer. He was
a research intern of the Energy Research Institute of the State Development and Reform Commission, an engineer of the Agricultural
Engineering Design and Research Institute of the Ministry of Agriculture, a vice section chief, researcher and vice inspector in the
Department of High and New Technology Development of the Ministry of Science and Technology. He is currently an independent
director of Sungrow, the Vice Chairman of China Renewable Energy Society, an independent director of CECEP Wind Power Co.,
Ltd., and an independent director of Titan Wind Energy (Suzhou) Co., Ltd.
Ms. Gu Guang, Chinese national with no permanent residency overseas, born in July 1963, master degree, a certified public
accountant of China (non-practicing member). She graduated from the Department of Economics of Anhui University in 1986, and
has been teaching at the university ever since. She was the Vice Director and Director of the Accounting Department of Anhui
University’s Business School, and the Director of the Financial Management Department, and is currently an associate professor of
Anhui University Business School, an MPAcc advisor and the Director of the MPAcc Education Center. She is also an independent
director of Anhui Shanhe Pharmaceutical Excipients Co., Ltd., Anhui Antai Technology Co., Ltd., Anhui Taida New Materials Co.,
Ltd., Anhui Wanken Seeds Industry Co., Ltd., Anhui Hongyu Wuzhou Medical Manufacturer Co., Ltd., and an independent director
of Sungrow.
(2) Supervisors
Mr. Tao Gaozhou, Chinese national with no permanent residency overseas, born in March 1971, master degree, and senior engineer.
He was the Manager of Structure Department and Supervisor of Sungrow, and is currently Chairman of Sungrow's Supervisory
Committee and Director of the Industrial Design Center.
Mr. He Wei, Chinese national with no permanent residency overseas, born in October 1975, master degree. He was the Business
Planning Manager and Logistics Assurance Manager of Sungrow. He is currently the Employee Representative Supervisor of
Sungrow and the General Manager of the Administrative Center.
Ms. Li Xiaomei, Chinese national with no permanent residency overseas, born in November 1968, bachelor degree. She was the
Process Technology Manager of Sungrow R&D Center, the PV System Engineering Technology Manager, and a Senior Internal
Audit Specialist of the System Management Team of the Power Station Division. She is currently the Employee Representative

                                                                                                                                 51
                                                                                                        Sungrow Power Supply Co., Ltd.
                                                                                          2021 Annual Report (Concise Version in English)

Supervisor of Sungrow and a Senior SQE Engineer of the Supply Chain Quality Technology Department.
(3) Executives
Mr. Cao Renxian, President. Refer to the introduction in “(1) Directors” for details.
Mr. Zheng Guibiao, Senior Vice President. refer to the introduction in “(1) Directors” for details.
Mr. Zhao Wei, Senior Vice President. refer to the introduction in “(1) Directors” for details.
Mr. Gu Yilei, Chinese national with no permanent residency overseas, born in February 1978, Ph.D. He has successively worked in
Zhongda Simike Electronics Co., Ltd. (Delta Group), Shenzhen Kangdawei Electronic Technology Co., Ltd., Santak Electronics
(Shenzhen) Co., Ltd., and Eaton (China) Investment Co., Ltd. He joined Sungrow in September 2015, and successively served the
roles of Vice Director of the Sungrow Research Institute, Director of the Central Research Institute. He is currently the Senior Vice
President of Sungrow and President of the Solar Storage Division.
Mr. Zhang Youquan, Chinese national with no permanent residency overseas, born in April 1967, master degree, and senior engineer.
He was the Vice Chief Engineer of Sungrow Hefei, Director of the Product Management Center, Chairman of the Supervisory
Committee and Vice General Manager of Sungrow. He is currently the Vice President of Sungrow.
Mr. Chen Zhiqiang, Chinese national with no permanent residency overseas, born in April 1980, graduated from the University of
Science and Technology of China in 2020 with a master degree, and a certified quality engineer of China. He was the Quality Control
Supervisor, Quality Control Manager, Management Representative, Quality Director, Employee Supervisor, and Chairman of the
Board of Supervisors of Sungrow. He is currently the Vice President of Sungrow.
Mr. Wu Jiamao, Chinese national with no permanent residency overseas, born in September 1972, master degree. He worked for
Anhui Ningguo Shuangjin Group previously and joined Sungrow in March 2005. He successively served the roles of Sales Manager
of Sungrow, General Manager of Shanghai Yangfeng Power Supply Co., Ltd., General Manager of Sungrow Shanghai Company,
and is currently the Vice President of Sungrow and the Vice President of the Solar Storage Division.
Mr. Cheng Cheng, Chinese national with no permanent residency overseas, born in October 1980, master degree. He worked for
Shanghai Haihong Industrial (Group) Chaohu Jinchen Pharmaceutical Co., Ltd. previously, and joined Sungrow in November 2005.
He successively served the roles of Manager of Sungrow’s Northwest Region, General Manager of Domestic PV Sales Division, and
is currently the Vice President of Sungrow and the President of the Hydrogen Energy Division.
Mr. Xie Xiaoyong, Chinese national with no permanent residency overseas, born in September 1976, master degree. He worked for
Xuancheng Administration for Industry and Commerce, Yiren (Ningbo) Arts & Crafts Co., Ltd., Wison Marine Engineering Co., Ltd.
previously, and joined Sungrow in October 2009. He successively served the roles of Human Resources Manager, Strategic Planning
Manager, Operation Director, General Manager of the Strategy Center of Sungrow, and is currently the Vice President of Sungrow.
Mr. Deng Dejun, Chinese national with no permanent residency overseas, born in September 1976, bachelor degree. He worked for
Maanshan Iron and Steel Co., Ltd., Foxconn Technology Group, Philips Electronics, and Great Wall Development Technology Co.,
Ltd. previously. After joining Sungrow in January 2011, he successively served the role of Production Planning Manager, Production
Planning Manager and Vice General Manager of the Gansu Division, Manufacturing Director of the Production Center and
Production Planning Manager, Vice General Manager of the Production Center, and General Manager of the Production Center. He
is currently the Vice President of Sungrow and the General Manager of the Production Center.
Mr. Li Guojun, with no permanent residency overseas, born in November 1975, Ph.D., member of the first Business Accounting
Standards Advisory Committee of the Ministry of Finance, and a member of the third Management Accounting Advisory Panel of
the Ministry of Finance. He worked for Zhejiang Chint Electric Co., Ltd. previously as the General Manager of Finance Center, and
is currently the Finance Director of Sungrow.
Mr. Li Shun, Chinese national with no permanent residency overseas, born in January 1977, master degree. He worked for China
Academy of Engineering Physics, Santak Electronics (Shenzhen) Co., Ltd., and Samil Power Co., Ltd. After joining Sungrow, he
successively served the roles of Director of Small-to-Medium Power Products, Director of String Products, and Vice President of the
Solar Storage Division. He is currently the Vice President of Sungrow and Vice President of the Solar Storage Division.
Mr. Peng Chaocai, Chinese national with no permanent residency overseas, born in December 1977, master degree. He worked for



                                                                                                                                      52
                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                        2021 Annual Report (Concise Version in English)

Shangqiu Experimental Middle School, Sinoma Technology Wind Power Blade Co., Ltd., and Delta Electronics (Shanghai) Co., Ltd.
before joining Sungrow as President of the Wind Energy Division. He is currently the Vice President of Sungrow and President of
the Wind Energy Division.
Mr. Lu Yang, Chinese national with no permanent residency overseas, born in October 1982, master degree. He worked previously
for State Nuclear Power Technology Corporation, Beijing Zhenglue Junce Management Consulting Co., Ltd., and ENN Group Co.,
Ltd. In August 2016, he joined Sungrow and successively served the roles of Strategic Planning Manager, Strategic Planning
Director, and General Manager of the Strategy Center. He is currently the Vice President, Board Secretary, and General Manager of
the Strategy Center of Sungrow.
Positions in organizations as a shareholder
□ Applicable √ Not Applicable
Positions in other organizations
√ Applicable □ Not Applicable

                                                                                                                            Paid by the
     Name                          Organization                       Position     Office starts on   Office ends on
                                                                                                                         Organization

                 Hefei Renshang Enterprise Management
Cao Renxian                                                        Supervisor                                          No
                 Co., Ltd.

                 Anhui       Anyuan         Investment     Fund
Liu Zhen                                                           Chairman                                            Yes
                 Management Co., Ltd.

Liu Zhen         Lu'an Anyuan Investment Fund Co., Ltd.            Chairman                                            No

Liu Zhen         Fuyang Anyuan Investment Fund Co., Ltd.           Chairman                                            No

                 Xuancheng Anyuan Innovation Venture
Liu Zhen                                                           Chairman                                            No
                 Capital Fund Co., Ltd.

                 Suzhou Anyuan Innovation Venture Capital
Liu Zhen                                                           Chairman                                            No
                 Fund Co., Ltd.

Liu Zhen         Chuzhou Anyuan Investment Fund Co., Ltd. Chairman                                                     No

                 Huangshan         Anyuan     Modern     Service
Liu Zhen                                                           Chairman                                            No
                 Industry Investment Fund Co., Ltd.

Liu Zhen         Tongling Anyuan Investment Fund Co., Ltd. Chairman                                                    No

                 Anhui Anyuan Innovation Wanbei Venture
Liu Zhen                                                           Chairman                                            No
                 Capital Fund Co., Ltd.

Liu Zhen         Anqing Anyuan Investment Fund Co., Ltd.           Chairman                                            No

Liu Zhen         Huaibei Anyuan Investment Fund Co., Ltd. Chairman                                                     No

                 Anhui Anyuan Innovation Venture Capital
Liu Zhen                                                           Director, GM                                        No
                 Fund Co., Ltd.

Li Mingfa        Anhui Wantong Technology Co., Ltd.                Ind. Director                                       Yes

Li Mingfa        Anhui Estone Material Technology Co., Ltd. Ind. Director                                              Yes

Li Mingfa        Wuhu Sanlian Forging Co., Ltd.                    Ind. Director                                       Yes

Li Mingfa        Tongling Jingqiang Electronic Technology
                                                                   Ind. Director                                       Yes
                 Co., Ltd.


                                                                                                                                          53
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

Li Baoshan       China Renewable Energy Society                 Vice
                                                                Chairman,                                          Yes
                                                                Secretary

Li Baoshan       Titan Wind Energy (Suzhou) Co., Ltd.           Ind. Director                                      Yes

Li Baoshan       CECEP Wind Power Co., Ltd.                     Ind. Director                                      Yes

Gu Guang         Anhui Shanhe Pharmaceutical Excipients
                                                                Ind. Director                                      Yes
                 Co., Ltd.

Gu Guang         Anhui Antai Technology Co., Ltd.               Ind. Director                                      Yes

Gu Guang         Anhui Taida New Materials Co., Ltd.            Ind. Director                                      Yes

Gu Guang         Anhui Wanken Seeds Industry Co., Ltd.          Ind. Director                                      Yes

Gu Guang         Anhui       Hongyu       Wuzhou      Medical
                                                                Ind. Director                                      Yes
                 Manufacturer Co., Ltd.

Xie Xiaoyong     Hefei Shangneng Enterprise Management Exe. Director,
                                                                                                                   No
                 Co., Ltd.                                      GM

Zhang Xucheng Xuzhou Chuneng New Energy Engineering
                                                                Exe. Director                                      No
                 Co., Ltd.

Penalties imposed by securities regulators in the past three years on incumbent directors, supervisors, executives and those departed
in the reporting period
□ Applicable √ Not Applicable


3. Remuneration of Directors, Supervisors and Executives

The procedure for determining remuneration for directors, supervisors and executives, the ground for determination, and the actual
payment
Procedure for determination: Remuneration of the Company's directors and supervisors is determined by the shareholders' meeting,
and remuneration of executives is determined by the Board of Directors. Directors, supervisors and executives who hold offices in
the Company receive remuneration according to their specific positions.
Ground for determination: Remuneration of directors, supervisors and executives is determined and paid in accordance with the
provisions in the Working Rules of the Remuneration and Evaluation Committee defined by the Board of Directors, taking into
consideration of their respective business performance, professional competency, job ranking and other evaluation results.
Actual payment: Remuneration of directors, supervisors and executives has been paid in full according to the predefined standard.


                Remuneration of Directors, Supervisors and Executives of the Company during the Reporting Period
                                                                                                                          (in KRMB)

                                                                                                      Total         Paid by related
      Name                Position           Gender              Age                Status        remuneration          party of the
                                                                                                    before tax           Company

                   Chairman,
Cao Renxian                           Male                                  54 Incumbent                      2800 No
                   President




                                                                                                                                       54
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

Zhang Xucheng        Vice Chairman         Male                             50 Incumbent                    2250 No

Zheng Guibiao        Director, SVP         Male                             54 Incumbent                    1800 No

Zhao Wei             Director, SVP         Male                             49 Incumbent                    2200 No

Liu Zhen             Director              Male                             46 Incumbent                            No

Li Mingfa            Ind. Director         Male                             59 Incumbent                      80 No

Li Baoshan           Ind. Director         Male                             69 Incumbent                      80 No

Gu Guang             Ind. Director         Female                           59 Incumbent                      80 No

Tao Gaozhou          Chairman of the
                     Board            of Male                               51 Incumbent                     800 No
                     Supervisors

He Wei               Employee
                                           Male                             47 Incumbent                     800 No
                     Supervisor

Li Xiaomei           Employee
                                           Female                           54 Incumbent                     500 No
                     Supervisor

Gu Yilei             SVP                   Male                             44 Incumbent                    6000 No

Zhang Youquan        VP                    Male                             55 Incumbent                    1300 No

Chen Zhiqiang        VP                    Male                             42 Incumbent                    1600 No

Wu Jiamao            VP                    Male                             50 Incumbent                    5000 No

Cheng Cheng          VP                    Male                             42 Incumbent                    1200 No

Xie Xiaoyong         VP                    Male                             46 Incumbent                    1640 No

Deng Dejun           VP                    Male                             46 Incumbent                    1500 No

Li Guojun            Finance Director Male                                  47 Incumbent                    1300 No

Li Shun              VP                    Male                             45 Incumbent                    2800 No

Peng Chaocai         VP                    Male                             45 Incumbent                    2000 No

Lu Yang              VP,           Board
                                           Male                             40 Incumbent                    1200 No
                     Secretary

Total                        --                     --            --                  --                   36,930        --


VIII. Directors' Performance of Duties During the Reporting Period

1. Board meetings during the reporting period


Session                              Date of Meeting     Date of Disclosure     Resolution(s)

The 6th meeting of the fourth February 2, 2021           February 3, 2021       No. 2021-004 Announcement on Resolutions of the
Board of Directors                                                              Sixth Meeting of the Fourth Board of Directors on
                                                                                http://www.cninfo.com.cn

The 7th meeting of the fourth March 31, 2021             April 1, 2021          No. 2021-015 Announcement on Resolutions of the



                                                                                                                                 55
                                                                                                            Sungrow Power Supply Co., Ltd.
                                                                                              2021 Annual Report (Concise Version in English)

Board of Directors                                                                 Seventh Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 8th meeting of the fourth April 26, 2021               April 27, 2021          No. 2021-023 Announcement on Resolutions of the
Board of Directors                                                                 Eighth Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 9th meeting of the fourth April 28, 2021               April 29, 2021          The          2021     First      Quarter     Report       on
Board of Directors                                                                 http://www.cninfo.com.cn

The 9th meeting of the fourth June 15, 2021                June 16, 2021           No. 2021-046 Announcement on Resolutions of the
Board of Directors                                                                 Ninth Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 10th meeting of the fourth August 4, 2021              August 5, 2021          No. 2021-056 Announcement on Resolutions of the
Board of Directors                                                                 Tenth Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 11th meeting of the fourth August 27, 2021             August 28, 2021         No. 2021-067 Announcement on Resolutions of the
Board of Directors                                                                 Eleventh Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 12th meeting of the fourth October 21, 2021            October 21, 2021        No. 2021-074 Announcement on Resolutions of the
Board of Directors                                                                 Twelfth Meeting of the Fourth Board of Directors on
                                                                                   http://www.cninfo.com.cn

The 13th meeting of the fourth October 28, 2021            October 29, 2021        No. 2021-082 The 2021 Third Quarter Report on
Board of Directors                                                                 http://www.cninfo.com.cn

The 13th meeting of the fourth December 03, 2021 December 04, 2021                 No. 2021-087 Announcement on Resolutions of the
Board of Directors                                                                 Thirteenth Meeting of the Fourth Board of Directors
                                                                                   on http://www.cninfo.com.cn


2. Directors’ presence at Board Meetings and Shareholders’ Meetings


                                  Directors’ presence at Board Meetings and Shareholders’ Meetings

Director                                                                                                           Failed
                         Board                                                                                    in-person
                                         In-person        Audio/Video        Delegate                                            Presence at
                     meetings to be                                                            Absence from      presence at
                                        presence at       presence at       presence at                                         shareholders’
                     attended in the                                                          board meetings        two
                                       board meetings board meetings board meetings                                               meetings
                         period                                                                                  consecutive
                                                                                                               board meetings

Cao Renxian                        8                  0                 8                 0                0 No                                4

Zhang Xucheng                      8                  0                 8                 0                0 No                                4

Zheng Guibiao                      8                  0                 8                 0                0 No                                4

Zhao Wei                           8                  0                 8                 0                0 No                                4

Liu Zhen                           8                  0                 8                 0                0 No                                4




                                                                                                                                               56
                                                                                                       Sungrow Power Supply Co., Ltd.
                                                                                         2021 Annual Report (Concise Version in English)

Li Baoshan                          8                  0              8              0                0 No                              4

Gu Guang                            8                  0              8              0                0 No                              4

Li Mingfa                           8                  0              8              0                0 No                              4

Explanation on failing in-person presence at two consecutive board meetings
No directors failed in-person presence at two consecutive board meetings during the reporting period.


3. Objections raised by directors to matters related to the Company

Whether there were objections raised by directors to matters related to the Company
□ Yes √ No
No directors raised any objection to matters related to the Company during the reporting period.


4. Other explanations on directors’ performance of duties

Whether suggestions made by directors were accepted
√ Yes □ No
Explanation on accepting or rejecting suggestions made by directors
During the reporting period, all directors of the Company strictly followed the Company Law, the Securities Law, the Governance
Guidelines for Listed Companies, Shenzhen Stock Exchange’s No. 2 Regulatory Guidelines for Listed Companies — Standardized
Operation of GEM-Listed Companies, as well as other relevant regulations and requirements in the Articles of Association and the
Board of Directors’ Rules of Procedure. All directors performed their duties in a diligent and conscientious way to ensure thoughts
were adequately exchanged, decisions were made in a timely and efficient manner, and the legitimate rights and interests of the
Company and all shareholders were safeguarded. During the reporting period, independent directors expressed independent views on
critical issues such as profit distribution and outbound guarantee, in order to safeguard the legitimate rights and interests of the
Company and all shareholders.


IX. Operation of Special Committees under the Board of Directors During the Reporting
Period

Committee        Members                                              Content      of Important                             Specific
                                                           Date of    Meeting        comments and Performance of circumstances
                                        Meetings
                                                           Meetings                  suggestions          other duties   of objection (if
                                                                                     made                                       any)

The     Strategy Cao     Renxian,                      April 14, 2021 Deliberation of Approved      the
Committee        Zhang                                                the 2020 Work proposal,      and
                 Xucheng,                                             Report of the agree to submit
                 Zheng Guibiao                                        Board        of the proposal for
                                                   1                  Directors   and deliberation by None               None
                                                                      the 2020 Work the Board of
                                                                      Report of the Directors
                                                                      General
                                                                      Manager


                                                                                                                                        57
                                                                                    Sungrow Power Supply Co., Ltd.
                                                                      2021 Annual Report (Concise Version in English)

The           Li Mingfa, Gu        October    15, Deliberation of Unanimously
Nomination    Guang,     Cao       2021          the Proposal on agreed             to
Committee     Renxian                            the                 appoint Mr. Lu
                                                 Appointment         Yang     as   the
                                                 of     the     Vice Company's
                                                 President       and Vice President
                               1                 Board               and         Board None         None
                                                 Secretary           Secretary, and
                                                                     submit        the
                                                                     proposal      for
                                                                     deliberation by
                                                                     the Board of
                                                                     Directors

The           Li Baoshan, Li       April 14, 2021 Deliberation of Approved         the
Remuneration Mingfa, Zhang                       the Proposal on proposal,         and
and Evaluation Xucheng                           the            2020 agree to submit
Committee                      1                 Remuneration the proposal for None                 None
                                                 of     Directors, deliberation by
                                                 Supervisors         the Board of
                                                 and Executives Directors

The     Audit Gu Guang, Li         April 14, 2021 1. Deliberation Approved         the
Committee     Baoshan,                           of the Proposal proposal,         and
              Zheng Guibiao                      on              the agree to submit
                                                 Company's           the proposal for
                                                 2020         Annual deliberation by
                                                 Report and its the Board of
                                                                                         None       None
                                                 Abstract;        2. Directors
                                                 Deliberation of
                                                 the Proposal on
                                                 Re-Engaging
                                                 the     Auditing

                               4                 Office in 2021

                                   April 16, 2021 Deliberation of Approved         the
                                                 the Proposal on proposal,         and
                                                 the Company's agree to submit
                                                 2021           First the proposal for None         None
                                                 Quarter Report deliberation by
                                                                     the Board of
                                                                     Directors

                                   August     13, Deliberation of Approved         the
                                   2021          the Proposal on proposal,         and
                                                                                         None       None
                                                 the Company's agree to submit
                                                 2021 Half Year the proposal for


                                                                                                                  58
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

                                                                   Report           deliberation by
                                                                                    the Board of
                                                                                    Directors

                                                    October    15, Deliberation of Approved      the
                                                    2021           the Proposal on proposal,    and
                                                                   the Company's agree to submit
                                                                   2021      Third the proposal for None             None
                                                                   Quarter Report deliberation by
                                                                                    the Board of
                                                                                    Directors


X. Operation of the Board of Supervisors

Whether the Board of Supervisors identified any risks during the monitoring activities in the reporting period
□ Yes √ No
The Board of Supervisors had no objections to matters subject to supervision in the reporting period.


XI: Employees

1. The number of employees and their professional and educational background


Incumbent employees of the parent company at the end of the period                                                          3,502

Incumbent employees of major subsidiaries at the end of the period                                                          3,224

Total incumbent employees at the end of the period                                                                          6,726

Total number of employees receiving remuneration in the current period                                                      6,726

Retirees to be financially supported by the parent company and major
                                                                                                                                0
subsidiaries

                                                       Professional Background

                                 Profession Split                                                       Head Count

Production                                                                                                                  1,809

Sales                                                                                                                       1,334

Technical                                                                                                                   2,734

Financial                                                                                                                     107

Administration                                                                                                                742

Total                                                                                                                       6,726

                                                       Educational Background

                                 Education Level                                                        Head Count

Doctor                                                                                                                         45

Master                                                                                                                      1,496


                                                                                                                                59
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

Bachelor                                                                                                                        3,089

College Graduate and below                                                                                                      2,096

Total                                                                                                                           6,726


2. Remuneration policy

Competitive remuneration stimulates employees’ enthusiasm and creativity, and promotes the sustainable growth of the Company. In
consideration of the Company’s strategic development needs and based on the different stages of business development (mature
business for profit contribution and seeding business for rapid growth), the Company designed targeted incentive plans incorporating
the medium- and long-term objectives, thereby promoting the sustainable development of the various businesses. The Company also
made remuneration adjustments according to the relevant national laws and regulations on human resources management, the market
status, and employees' individual job performance, so as to allow employees to receive reasonable returns, and establish a
remuneration and performance management system that takes into account of internal fairness and external competitiveness.


3. Training plan

The Company attached great importance to employee development, paid attention to growing employees' technical skills and
comprehensive competency, and therefore established a robust training system. The Company clarified the annual training needs in
combination with the corporate development objectives and the work targets of each department, formulated a complete annual
training plan, and established a hierarchical curriculum design. Induction training helped new employees quickly blend in, new
manager training helped managers get hold of basic management skills, and strategic leadership training helped middle- and
high-level managers build strategic thinking and improve their management level. While engaging external trainers, the Company
also set up an internal trainers’ team and trained a number of excellent internal trainers, so that employees' skills and competencies
could be improved through the combination of internal and external training, a learning map could be created, and a learning
organization could be established to better serve the business growth.


4. Labor outsourcing

□ Applicable √ Not Applicable


XII. Profit Distribution and Conversion of Capital Reserve into Share Capital

The formulation, implementation or adjustment of the profit distribution policy, especially the cash dividend policy, during the
reporting period
√ Applicable □ Not Applicable
The Company strictly implemented the profit distribution policy in accordance with the Articles of Association. The formulation and
implementation of the Company's cash dividend policy were aligned with the provisions in the Articles of Association and the
requirements in the resolution of the shareholders' meeting. The dividend standard and proportion were clearly specified; the relevant
decision-making procedures and mechanisms were in place. Independent directors fulfilled their responsibilities and played their
roles, the minority shareholders fully expressed their opinions and demands, and the legitimate rights and interests of the minority
shareholders were adequately safeguarded.

                                          Special Explanation on the Cash Dividend Policy

Whether it complied with the provisions in the Articles of Association or the requirements in the Yes


                                                                                                                                    60
                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                        2021 Annual Report (Concise Version in English)

resolution(s) of the shareholders' meeting:

Whether the dividend standard and proportion were clearly specified:                                  Yes

Whether the relevant decision-making procedures and mechanisms were in place:                         Yes

Whether independent directors performed their duties and played their roles:                          Yes

Whether minority shareholders had the opportunity to fully express their views and demands, Yes
and whether their legitimate rights and interests were adequately safeguarded:

In the case of cash dividend policy modification or change, whether the conditions and Yes
procedures were compliant and transparent:

The Company's profit distribution plan and capital reserve conversion plan for the reporting period were consistent with the relevant
provisions in the Articles of Association and the dividend management policy
√ Yes □ No □ Not Applicable
The Company's profit distribution plan and capital reserve conversion plan for the reporting period were in line with the relevant
provisions in the Articles of Association.
Profit distribution and conversion of capital reserve into share capital for the year

Number of bonus shares for every 10 shares                                                                                             0

Dividend (in RMB) per 10 shares (tax inclusive)                                                                                      1.10

Number of shares transferred per 10 shares                                                                                             0

Equity base of the distribution plan (in shares)                                                                          1,485,215,984

Cash dividend (in RMB) (tax inclusive)                                                                                   163,373,758.24

Cash dividend in other ways (such as share buyback) (in RMB)                                                                         0.00

Total cash dividend (including those distributed in other ways) (in RMB)                                                 163,373,758.24

Distributable profit (in RMB)                                                                                          5,654,051,628.97

Total cash dividend (including those distributed in other ways) in total profit distribution                                    100.00%

                                                    Overview of this Cash Dividend

Other

                          Detailed description of the profit distribution or the capital reserve conversion plan

As audited and confirmed by RSM China (Special General Partnership), the net profit realized by the parent company in 2021 was
RMB 1,227,313,062.34. After setting aside statutory reserves of RMB 122,731,306.23 at 10% of the net profit realized, the
undistributed profit amounted to RMB 1,104,581,756.11. Adding up the undistributed profit of RMB 4,753,441,381.86 from the
previous year and deducting the 2020 cash dividend of RMB 203,971,509 already distributed, the distributable profit of the parent
company as of December 31, 2021 was RMB 5,654,051,628.97.
According to the Company Law, the No. 3 Regulatory Guidelines for Listed Companies — Cash Dividends and the Articles of
Association, and after comprehensive consideration of the Company's financial status, business development needs in the future and
return to shareholders, the Company made the following profit distribution plan for 2021:
Based on the current total share capital of 1,485,215,984 shares, the Company plans to distribute a cash dividend of RMB 1.1 (tax
inclusive) for every 10 shares to all shareholders, with the total cash dividend amounting to RMB 163,373,758.24 (tax inclusive).
The remaining undistributed profit will carry forward next year. No share capital was increased, and no bonus shares was issued
this year. In the event that the Company’s total share capital changes prior to the execution of the distribution plan due to the


                                                                                                                                       61
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

conversion of convertible bonds, share buyback, exercise of equity incentives, and listing of new shares from refinancing, the
Company will adjust the distribution ratio while maintaining the total amount of distribution unchanged.

The Company was profitable during the reporting period, the parent company made positive profits distributable to shareholders, but
no cash dividend distribution plan was proposed
□ Applicable √ Not Applicable


XIII. Progress of the Company's Equity Incentive Plan, Employee Stock Ownership Plan or
Other Employee Incentive Measures

√ Applicable □ Not Applicable


a. Equity Incentives

The 2017 Restricted Stock Incentive Plan:

1. On March 17, 2017, the Company held the 2nd meeting of the third Board of Directors, at which the 2017 Restricted Stock
   Incentive Plan (Draft) and its abstract, the Assessment Measures for the Implementation of the 2017 Restricted Stock Incentive
   Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the Equity
   Incentive Related Initiatives were reviewed and approved. On the same day, independent directors expressed independent views
   on the incentive object’s qualification and the specific contents of the restricted stock incentive plan, as well as on whether it
   contributed to the sustainable development of the Company and whether there were any signs of compromising the benefits of
   the Company and all shareholders.

2. On April 5, 2017, the Company held the first extraordinary general meeting in 2017, at which the 2017 Restricted Stock Incentive
   Plan (Draft) and its abstract, the Assessment Measures for the Implementation of the Restricted Stock Incentive Plan, and the
   Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the Equity Incentive
   Related Initiatives were reviewed and approved. The Board of Directors was authorized to deal with the changes and
   terminations of the Plan according to the provisions in the Company's 2017 Restricted Stock Incentive Plan, including but not
   limited to revoking the incentive object’s qualifications for unlocking restricted shares, buying back and cancelling restricted
   shares held by incentive objects that have not been unlock.

3. On May 23, 2017, the Company held the 4th meeting of the third Board of Directors, at which the Proposal on Adjusting the
   Incentive Objects of the 2017 Restricted Stock Incentive Plan and the Granting Quantity, and the Proposal on Granting
   Restricted Stock to Incentive Objects were reviewed and approved. Since 21 of the Company’s original incentive objects,
   including Sun Zhonghe and Liu Xueliang, resigned and were no longer eligible for incentive granting as per the Restricted Stock
   Incentive Plan, the Company cancelled a total of 1.54 million restricted shares that were not granted to those 21 former
   employees yet. After the adjustment, the number of incentive objects qualifying the first grant of Company's Restricted Stock
   Incentive Plan changed from 518 to 497, and the number of restricted shares granted changed from 36 million to 34.46 million.
   In addition, the Company also decided to take May 23, 2017 as the granting date and grant 34.46 million restricted shares to 497
   incentive objects. Independent directors expressed independent views on the adjustment of the incentive plan and the granting of
   restricted shares, agreed that the Board of Directors should adjust the restricted stock incentive objects and the number of grants,
   and agreed to take May 23, 2017 as the first granting date to grant restricted shares to incentive objects according to the
   Restricted Stock Incentive Plan.

4. On August 14, 2017, the Company held the 6th meeting of the third Board of Directors, at which the Proposal on Adjusting the
   Buyback Price of Restricted Shares and the Buyback and Cancelling of Some Restricted Shares was reviewed and approved.

                                                                                                                                    62
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

   Since the Company’s 2016 benefits distribution and incentive objects Xiao Yongli, Sun Wei, and Wang Guowei resigned, the
   Company's restricted share buyback price was adjusted to RMB 5.2112 per share, a total of 310,000 restricted shares granted to
   Xiao Yongli, Sun Wei, and Wang Guowei but not unlocked were bought back and cancelled. Independent directors expressed
   independent views on the above matters and agreed to buy back and cancel the restricted shares granted to Xiao Yongli, Sun Wei,
   and Wang Guowei but not unlocked.

5. On December 28, 2017, the Company held the 8th meeting of the third Board of Directors, at which the Proposal on the Buyback
   and Cancelling of Some Restricted Shares was reviewed and approved. Since the incentive objects Zhou Chao, Feng Hongyan,
   Qian Jing resigned, a total of 180,000 restricted shares granted to Zhou Chao, Feng Hongyan, Qian Jing but not unlocked were
   bought back at the buyback price of RMB 5.2112 per share and cancelled. Independent directors expressed independent views on
   the above matters and agreed to buy back and cancel the restricted shares granted to Zhou Chao, Feng Hongyan, Qian Jing but
   not unlocked.

6. On March 21, 2018, the Company held the 10th meeting of the third Board of Directors, at which the Proposal on Granting the
   Reserved Part of the 2017 Restricted Stock Incentive Plan was reviewed and approved. The Company decided to take March 21,
   2018 as the granting date and granted 4 million reserved restricted shares to 108 incentive objects. Independent directors
   expressed independent views on the proposal, agreed that the method used to confirm incentive object’s qualification for the
   reserved part was legitimate and effective, and the granting date decided was in line with the relevant regulations.

7. On April 23, 2018, the Company held the 11th meeting of the third Board of Directors, at which the Proposal on Adjusting the
   Incentive Objects and Granting Quantity for the Reserved Part of the 2017 Restricted Stock Incentive Plan was reviewed and
   approved. The Board of Directors decided to make the following adjustments to the incentive objects involved and the granting
   quantity for the reserved part of the 2017 Restricted Stock Incentive Plan: the number of incentive objects for the reserved part of
   the restricted stock plan changed from 108 to 107, and the first granting quantity changed from 4 million shares to 3.98 million
   shares. On the same day, the 9th meeting of the third Board of Supervisors was held to verify the list of incentive objects to be
   granted. Independent directors expressed independent views on the proposal.

8. On May 30, 2018, the Company held the 12th meeting of the third Board of Directors, at which the Proposal on the Achievement
   of Unlocking Conditions for Stage I of the First Batch of Restricted Shares Granted in 2017 was reviewed and approved. It was
   agreed that the unlocking of the Stage I restricted shares in the first batch granted in 2017 should be proceeded with according to
   the relevant provisions of the 2017 Restricted Stock Incentive Plan. A total of 491 incentive objects were eligible for this
   unlocking, and the number of restricted shares that could be unlocked was 8,482,500, accounting for 0.58% of the Company's
   total share capital at present.

9. On August 14, 2018, the Company held the 14th meeting of the third Board of Directors, at which the Proposal on Adjusting the
   Buyback Price of Restricted Shares and the Buyback and Cancelling of Some Restricted Shares was reviewed and approved.
   Since the original incentive objects Ling Chengxuan, Gao Chunying, Ning Jian, Zheng Chunguo, Ni Shenggeng, Sun Wei, Chen
   Shengjun, Dong Yi, Kong Shuang, Jiang Liqun, He Changing, Zhao Mingjian, Zhang Yong, Xu Chuanfu, Liu Meng, and Fang
   Ying resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were
   granted to them but not unlocked should be bought back and cancelled by the Company. The buyback quantity was 745,000
   shares, and the buyback price was RMB 5.1314 and RMB 8.8002 per share according to the respective time of granting.

10. On December 11, 2018, the Company held the 16th meeting of the third Board of Directors, at which the Proposal on the
   Buyback and Cancelling of Some Restricted Shares was reviewed and approved. Since the original incentive objects Xie
   Mingfeng, Tang Yongming, Wang Baochen, Deng Jun, Huang Yulong, GUo Zhengbin, Zhang Haiming, Yao Jun, Feng
   ZHongxian, Ning Desheng, Zhang Bo, Dai Changshun, Li Huaxiang, Yao Pengfei, and Zhou Hao resigned, according to the
   relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not unlocked



                                                                                                                                    63
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

   should be bought back and cancelled by the Company. The buyback quantity was 715,000 shares, and the buyback price was
   RMB 5.1314 and RMB 8.8002 per share according to the respective time of granting.

11. On March 28, 2019, the Company held the 18th meeting of the third Board of Directors, at which the Proposal on the Buyback
   and Cancelling of Some Restricted Shares was reviewed and approved. Since the original incentive objects Wang Qizhi, Lu
   Xinghu, Zhou Long, Sun Lei, Di Jie, Zhao Fei, and Liu Tao resigned, according to the relevant provisions of the Company's
   equity incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled by
   the Company. The buyback quantity was 265,000 shares, and the buyback price for the first grant was RMB 5.1314 per share and
   that for the reserved grant was RMB 8.8002 per share.

12. On May 9, 2019, the Company held the 20th meeting of the third Board of Directors, at which the Proposal on the Buyback and
   Cancellation of Some Restricted Shares was reviewed and approved. Since some of the Company’s original incentive objects,
   Wei Yongzhen, Zhang Daqiang, Ai Shaowei, Cheng Zheng, Zeng Jin, and Wang Qigang, resigned, according to the relevant
   provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not unlocked should be
   bought back and cancelled by the Company. Since the individual annual performance of the Company’s original incentive
   objects, Li Bing, accounted for an unlocking percentage of 50%, according to the relevant provisions of the Company's equity
   incentive plan, some of the restricted shares that were granted to them but not unlocked should be bought back and cancelled by
   the Company, with the total buyback quantity amounting to 268,750 shares. The buyback price was RMB 5.1314 per share for
   restricted shares in the first grant in 2017 and RMB 8.8002 per share for the reserved grant in 2017, and that for restricted shares
   in the first grant in 2018 was RMB 4.66 per share.

   On May 9, 2019, the Company held the 20th meeting of the third Board of Directors, at which the Proposal on the Achievement
   of Unlocking Conditions for Stage II of the First Batch of Restricted Shares and Stage I for the Reserved Part Granted in 2017
   was reviewed and approved. It was agreed that the unlocking of the Stage II restricted shares in the first batch granted and Stage I
   restricted shares in the reserved part granted in 2017 should be proceeded with according to the relevant provisions of the 2017
   Restricted Stock Incentive Plan. A total of 463 incentive objects were eligible for the Stage II unlock. Except for Li Bing who’s
   eligible for an unlocking percentage of 50% due to the individual annual performance, an unlocking percentage of 100% applied
   to the rest 462 incentive objects. The total number of restricted shares that could be unlocked was 8,003,750, accounting for
   0.5489% of the Company's total share capital at present. A total of 92 incentive objects were eligible for the Stage I unlock of the
   reserved part, and the total number of restricted shares that could be unlocked was 1,050,000, accounting for 0.0720% of the
   Company's total share capital at present.

13. On May 24, 2019, the Stage I unlocked restricted shares from the reserved part of the 2017 Restricted Stock Incentive Plan were
   listed for circulation. The number of restricted shares unlocked this time was 1,050,000, accounting for 0.0720% of the
   Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,040,000,
   accounting for 0.0713% of the Company's total share capital at present.

14. On June 20, 2019, the Stage II unlocked restricted shares from the first grant of the 2017 Restricted Stock Incentive Plan were
   listed for circulation. The number of restricted shares unlocked this time was 8,003,750, accounting for 0.5489% of the
   Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 7,553,750,
   accounting for 0.5180% of the Company's total share capital at present.

15. On August 14, 2019, the Company held the 21th meeting of the third Board of Directors and the 18th meeting of the third Board
   of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Li Chen, Meng Wei, Hu Weichao, Li Guo, Jiang Lihui, Cao Zhi, Geng
   Anran, Yu Guoqiang, Lin Li, Lai Chengzhi, Li Guoqing, Yang Mei, Zuo Yalian, Lu Tao, and Ma Xiangyun, resigned, according
   to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not



                                                                                                                                    64
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

   unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 528,000 shares.
   The buyback price was RMB 5.0714 per share for restricted shares in the first grant in 2017 and RMB 8.7402 per share for the
   reserved grant in 2017, and that for restricted shares in the first grant in 2018 was RMB 4.6 per share.

16. On October 25, 2019, the Company held the 22th meeting of the third Board of Directors and the 19th meeting of the third Board
   of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Sun Hongfei, Ji Ruifei, Huang Yong, Yin Zufa, Tu Chao, Chen Yadong,
   Dong Bincheng, Wang Huichao, and Han Gao, resigned, according to the relevant provisions of the Company's equity incentive
   plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the Company,
   with the total buyback quantity amounting to 274,000 shares. The buyback price was RMB 5.0714 per share for restricted shares
   in the first grant in 2017 and RMB 8.7402 per share for the reserved grant in 2017, and that for restricted shares in the first grant
   in 2018 was RMB 4.6 per share.

17. On April 23, 2020, the Company held the 24th meeting of the third Board of Directors, at which the Proposal on the Achievement
   of Unlocking Conditions for Stage III of the First Batch and Stage II of the Reserved Part of Restricted Shares Granted in 2017
   and Stage I of the First Batch Granted in 2018 was reviewed and approved. It was agreed that the unlocking of the Stage III
   restricted shares in the first batch and Stage II restricted shares in the reserved part granted in 2017 should be proceeded with
   according to the relevant provisions of the 2017 Restricted Stock Incentive Plan. A total of 440 incentive objects were eligible for
   the Stage III unlock of the first batch granted in 2017, and the total number of restricted shares that could be unlocked was
   7,600,000, accounting for 0.5217% of the Company's total share capital at present. A total of 80 incentive objects were eligible
   for the Stage II unlock of the reserved part granted in 2017, and the total number of restricted shares that could be unlocked was
   894,000, accounting for 0.0614% of the Company's total share capital at present.

18. On April 23, 2020, the Company held the 24th meeting of the third Board of Directors and the 21st meeting of the third Board of
   Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Lu Chunguang, Xiao Fuqin, Wu Changhong, Zhang Changxin, Zhang
   Lei, Wang Xiaofei, Yu Hong, Zhang Yingfan, Xie Jiehua, Liu Ziyu, Liu Dawei, Chen Qiang, Gao Yu, Jiao Xiangbo, Xu
   Zhongren, Zhang Jiannan, Qu Rao, and Li Gaoshan, resigned, according to the relevant provisions of the Company's equity
   incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the
   Company. Since the individual annual performance of the Company’s original incentive objects, Yang Li, accounted for an
   unlocking percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, some of the restricted
   shares that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback
   quantity amounting to 522,000 shares. The buyback price was RMB 5.0714 per share for restricted shares in the first grant in
   2017 and RMB 8.7402 per share for the reserved grant in 2017, and that for restricted shares in the first grant in 2018 was RMB
   4.6 per share.

19. On May 14, 2020, the Stage II unlocked restricted shares from the reserved part of the 2017 Restricted Stock Incentive Plan were
   listed for circulation. The number of restricted shares unlocked this time was 894,000, accounting for 0.0614% of the Company's
   total share capital at present; the actual number of restricted shares that could be listed for circulation was 834,000, accounting
   for 0.0572% of the Company's total share capital at present.

20. On June 23, 2020, the Stage III unlocked restricted shares from the first grant of the 2017 Restricted Stock Incentive Plan were
   listed for circulation. The number of restricted shares unlocked this time was 7,550,000, accounting for 0.5183% of the
   Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 7,150,000,
   accounting for 0.4908% of the Company's total share capital at present.

21. On July 13, 2020, the Company held the 2nd meeting of the fourth Board of Directors and the 2nd meeting of the fourth Board of



                                                                                                                                     65
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

   Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Yao Shaohua, Wu Zongjian, Zhang Fenggang, Liu Lei, Wang Rui, Tian
   Geng, Wang Baoping, Wu Jie, Tang Jie, Yan Shichao, Wu Bin, Cheng Qi, Yang Gangxin, Shen Tan, Song Zijian, Lin Guangyi,
   and Chen Chao, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares
   that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback
   quantity amounting to 504,000 shares. The buyback price was RMB 5.0014 per share for restricted shares in the first grant in
   2017 and RMB 8.6702 for the reserved grant in 2017, and that for restricted shares in the first grant in 2018 was RMB 4.5300 per
   share.

22. On October 29, 2020, the Company held the 4th meeting of the fourth Board of Directors and the 4th meeting of the fourth Board
   of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Zhu Hui, Yang Guoqiang, Zhang Tao, Wang Xinzhong, Dong Yugang,
   Liu Ming, Yu Chuandian, Xing Zhen, Tian Hao, Hu Di, Tu Fang, WARDZACHARIAH HUSSEIN, and KIM MYUNGKWAN,
   resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted
   to them but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to
   297,500 shares. The buyback price for restricted shares in the first grant in 2017 was RMB 4.5300 per share and that for
   restricted shares in the first grant in 2018 was RMB 5.3000 per share.

23. On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board of
   Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
   Since some of the Company’s original incentive objects, Wan Rubin, Zhou Ping, Zhan Zhihai, Zhang Jianzhou, Jiang Wenjun,
   Xie Feng, and Yao Li, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted
   shares that were granted to them but not unlocked should be bought back and cancelled by the Company. Since the individual
   annual performance of the Company’s original incentive objects, Li Tao and Shang Xiaozhong, accounted for an unlocking
   percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, some of the restricted shares that
   were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity
   amounting to 142,000 shares. The buyback price for restricted shares in the first grant in 2017 was RMB 5.0014 per share and
   that for restricted shares in the first grant in 2018 was RMB 4.5300 per share.

   On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board of
   Supervisors, at which the Proposal on the Achievement of Unlocking Conditions for Stage IV of the First Batch and Stage III of
   the Reserved Part of Restricted Shares Granted in 2017 and Stage II of the First Batch Granted in 2018 was reviewed and
   approved. It was agreed that the unlocking of the Stage IV restricted shares in the first batch and Stage III restricted shares in the
   reserved part granted in 2017 should be proceeded with according to the relevant provisions of the 2017 Restricted Stock
   Incentive Plan. A total of 423 incentive objects were eligible for the Stage IV unlock of the first batch granted in 2017, and the
   total number of restricted shares that could be unlocked was 7,237,500, accounting for 0.4968% of the Company's total share
   capital at present. A total of 77 incentive objects were eligible for the Stage III unlock of the reserved part granted in 2017, and
   the total number of restricted shares that could be unlocked was 1,132,000, accounting for 0.0777% of the Company's total share
   capital at present.

24. On May 17, 2021, the Stage III unlocked restricted shares from the reserved part of the 2017 Restricted Stock Incentive Plan
   were listed for circulation. The number of restricted shares unlocked this time was 1,132,000, accounting for 0.0777% of the
   Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,052,000,
   accounting for 0.0722% of the Company's total share capital at present.

25. On June 21, 2021, the Stage IV unlocked restricted shares from the reserved part of the 2017 Restricted Stock Incentive Plan
   were listed for circulation. The number of restricted shares unlocked this time was 7,237,500, accounting for 0.4968% of the


                                                                                                                                      66
                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                        2021 Annual Report (Concise Version in English)

     Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 6,818,750,
     accounting for 0.4680% of the Company's total share capital at present.


The 2018 Restricted Stock Incentive Plan

1.    On December 11, 2018, the Company held the 16th meeting of the third Board of Directors, at which the 2018 Restricted Stock
      Incentive Plan (Draft) and its abstract, the Assessment Measures for the Implementation of the 2018 Restricted Stock Incentive
      Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the 2018
      Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. On the same day, independent directors
      expressed independent views on the incentive object’s qualification and the specific contents of the restricted stock incentive
      plan, as well as on whether it contributed to the sustainable development of the Company and whether there were any signs of
      compromising the benefits of the Company and all shareholders.

2. On December 28, 2018, the Company held the fourth extraordinary general meeting in 2018, at which the 2018 Restricted Stock
      Incentive Plan (Draft) and its abstract, the Assessment Measures for the Implementation of the 2018 Restricted Stock Incentive
      Plan, and the Proposal on Requesting the Shareholders’ Meeting to Authorize the Board of Directors to Proceed with the 2018
      Restricted Stock Incentive Plan Related Initiatives were reviewed and approved. The Board of Directors was authorized to deal
      with the changes and terminations of the Plan according to the provisions in the Company's 2018 Restricted Stock Incentive
      Plan, including but not limited to revoking the incentive object’s qualifications for unlocking restricted shares, buying back and
      cancelling restricted shares held by incentive objects that have not been unlock.

3.    On January 9, 2019, the Company held the 17th meeting of the third Board of Directors, at which the Proposal on Granting
      Restricted Shares to Incentive Objects for the First Time was reviewed and approved. The Company decided to take January 9,
      2019 as the granting date, and granted 7.5 million restricted shares to 142 incentive objects of the first grant in 2018 at the
      granting price of RMB 4.66 per share.

      In the registration for the first grant of restricted shares in 2018, some incentive objects voluntarily waived the restricted shares,
      in whole or in part, due to personal reasons, the quantity of first grant in the 2018 incentive plan changed from 7.5 million shares
      to 7.35 million shares, and the number incentive objects changed from 142 to 139. After review and confirmation by the
      Shenzhen Stock Exchange and the China Securities Depository and Clearing Corporation Limited Shenzhen Branch, the
      Company completed the registration of 7.35 million restricted shares granted to 139 incentive objects involved in the first grant,
      and the restricted shares granted were listed on February 27, 2019.

4.    On May 9, 2019, the Company held the 20th meeting of the third Board of Directors, at which the Proposal on the Buyback and
      Cancellation of Some Restricted Shares was reviewed and approved. Since some of the Company’s original incentive objects,
      Wei Yongzhen, Zhang Daqiang, Ai Shaowei, Cheng Zheng, Zeng Jin, and Wang Qigang, resigned, according to the relevant
      provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not unlocked should be
      bought back and cancelled by the Company. Since the individual annual performance of the Company’s original incentive
      objects, Li Bing, accounted for an unlocking percentage of 50%, according to the relevant provisions of the Company's equity
      incentive plan, some of the restricted shares that were granted to them but not unlocked should be bought back and cancelled by
      the Company,, with the total buyback quantity amounting to 268,750 shares. The buyback price was RMB 5.1314 per share for
      restricted shares in the first grant in 2017 and RMB 8.8002 per share for the reserved grant in 2017, and that for restricted shares
      in the first grant in 2018 was RMB 4.66 per share.

5.    On August 14, 2019, the Company held the 21th meeting of the third Board of Directors and the 18th meeting of the third Board
      of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
      Since some of the Company’s original incentive objects, Li Chen, Meng Wei, Hu Weichao, Li Guo, Jiang Lihui, Cao Zhi, Geng


                                                                                                                                         67
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

     Anran, Yu Guoqiang, Lin Li, Lai Chengzhi, Li Guoqing, Yang Mei, Zuo Yalian, Lu Tao, and Ma Xiangyun, resigned, according
     to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not
     unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 528,000 shares.
     The buyback price was RMB 5.0714 per share for restricted shares in the first grant in 2017 and RMB 8.7402 per share for the
     reserved grant in 2017, and that for restricted shares in the first grant in 2018 was RMB 4.6 per share.

6.   On October 25, 2019, the Company held the 22th meeting of the third Board of Directors and the 19th meeting of the third
     Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
     approved. Since some of the Company’s original incentive objects, Sun Hongfei, Ji Ruifei, Huang Yong, Yin Zufa, Tu Chao,
     Chen Yadong, Dong Bincheng, Wang Huichao, and Han Gao, resigned, according to the relevant provisions of the Company's
     equity incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled
     by the Company, with the total buyback quantity amounting to 274,000 shares. The buyback price was RMB 5.0714 per share
     for restricted shares in the first grant in 2017 and RMB 8.7402 per share for the reserved grant in 2017, and that for restricted
     shares in the first grant in 2018 was RMB 4.6 per share.

7.   On December 26, 2019, the Company held the 23rd meeting of the third Board of Directors and the 20th meeting of the third
     Board of Supervisors, at which the Proposal on Granting the Reserved Part of Restricted Shares to Incentive Objects was
     reviewed and approved. The Company decided to take December 26, 2019 as the granting date and granted 1.5 million restricted
     shares from the reserved part of 2018 to 38 incentive objects.

8.   On April 23, 2020, the Company held the 24th meeting of the third Board of Directors, at which the Proposal on the
     Achievement of Unlocking Conditions for Stage III of the First Batch and Stage II of the Reserved Part of Restricted Shares
     Granted in 2017 and Stage I of the First Batch Granted in 2018 was reviewed and approved. It was agreed that the unlocking of
     the Stage I restricted shares in the first grant in 2018 should be proceeded with according to the relevant provisions of the 2018
     Restricted Stock Incentive Plan. A total of 131 incentive objects were eligible for the Stage II unlock of the first batch granted in
     2018, and the total number of restricted shares that could be unlocked was 2,145,000, accounting for 0.1472% of the Company's
     total share capital at present.

9.   On April 23, 2020, the Company held the 24th meeting of the third Board of Directors and the 21st meeting of the third Board
     of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
     Since some of the Company’s original incentive objects, Lu Chunguang, Xiao Fuqin, Wu Changhong, Zhang Changxin, Zhang
     Lei, Wang Xiaofei, Yu Hong, Zhang Yingfan, Xie Jiehua, Liu Ziyu, Liu Dawei, Chen Qiang, Gao Yu, Jiao Xiangbo, Xu
     Zhongren, Zhang Jiannan, Qu Rao, and Li Gaoshan, resigned, according to the relevant provisions of the Company's equity
     incentive plan, all the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the
     Company. Since the individual annual performance of the Company’s original incentive objects, Yang Li, accounted for an
     unlocking percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, some of the
     restricted shares that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total
     buyback quantity amounting to 522,000 shares. The buyback price was RMB 5.0714 per share for restricted shares in the first
     grant in 2017 and RMB 8.7402 per share for the reserved grant in 2017, and that for restricted shares in the first grant in 2018
     was RMB 4.6 per share.

10. On May 14, 2020, the Stage I unlocked restricted shares from the first grant of the 2018 Restricted Stock Incentive Plan were
     listed for circulation. The number of restricted shares unlocked this time was 2,145,000, accounting for 0.1472% of the
     Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,895,000,
     accounting for 0.1301% of the Company's total share capital at present.

11. On July 13, 2020, the Company held the second meeting of the fourth Board of Directors and the second meeting of the fourth



                                                                                                                                       68
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

    Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
    approved. Since some of the Company’s original incentive objects, Yao Shaohua, Wu Zongjian, Zhang Fenggang, Liu Lei,
    Wang Rui, Tian Geng, Wang Baoping, Wu Jie, Tang Jie, Yan Shichao, Wu Bin, Cheng Qi, Yang Gangxin, Shen Tan, Song
    Zijian, Lin Guangyi, and Chen Chao, resigned, according to the relevant provisions of the Company's equity incentive plan, all
    the restricted shares that were granted to them but not unlocked should be bought back and cancelled by the Company, with the
    total buyback quantity amounting to 504,000 shares. The buyback price was RMB 5.0014 per share for restricted shares in the
    first grant in 2017 and RMB 8.6702 per share for the reserved grant in 2017, and that for restricted shares in the first grant in
    2018 was RMB 4.5300 per share.

12. On August 28, 2020, the Company made the Announcement on the Completion of the Reserved Grant Registration for the 2018
    Restricted Stock Incentive Plan, and shares granted this time were listed on September 1, 2020. A large number of incentive
    objects for this grant were foreign employees working outside China. Due to the global epidemic impact, it was very
    challenging for employees to pay and verify their capital, and the share-granting progress fell behind. The original plan was to
    grant a total of 1.5 million restricted shares to 38 eligible incentive objects. In the subsequent payment and capital verification
    process, the original incentive objects Xu Youbin and CARDOSOROBERTOMIGUEL voluntarily waived, therefore, 36
    incentive objects were actually granted this time, and the actual quantity granted was 1,450,000 shares.

13. On October 29, 2020, the Company held the fourth meeting of the fourth Board of Directors and the fourth meeting of the fourth
    Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and
    approved. Since some of the Company’s original incentive objects, Zhu Hui, Yang Guoqiang, Zhang Tao, Wang Xinzhong,
    Dong Yugang, Liu Ming, Yu Chuandian, Xing Zhen, Tian Hao, Hu Di, Tu Fang, WARDZACHARIAH HUSSEIN, and KIM
    MYUNGKWAN, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares
    that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback
    quantity amounting to 297,500 shares. The buyback price was RMB 5.0014 per share for restricted shares in the first grant in
    2017 and RMB 8.6702 per share for the reserved grant in 2017, and the buyback price was RMB 4.5300 per share for restricted
    shares granted in the first grant in 2018 and RMB 5.3000 per share for the reserved grant in 2018.

14. On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board
    of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
    Since some of the Company’s original incentive objects, Wan Rubin, Zhou Ping, Zhan Zhihai, Zhang Jianzhou, Jiang Wenjun,
    Xie Feng, and Yao Li, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted
    shares that were granted to them but not unlocked should be bought back and cancelled by the Company. Since the individual
    annual performance of the Company’s original incentive objects, Li Tao and Shang Xiaozhong, accounted for an unlocking
    percentage of 50%, according to the relevant provisions of the Company's equity incentive plan, some of the restricted shares
    that were granted to them but not unlocked should be bought back and cancelled by the Company, with the total buyback
    quantity amounting to 142,000 shares. The buyback price for restricted shares in the first grant in 2017 was RMB 5.0014 per
    share and that for restricted shares in the first grant in 2018 was RMB 4.5300 per share.

15. On April 26, 2021, the Company held the 8th meeting of the fourth Board of Directors and the 7th meeting of the fourth Board
    of Supervisors, at which the Proposal on the Achievement of Unlocking Conditions for Stage IV of the First Batch and Stage III
    of the Reserved Part of Restricted Shares Granted in 2017 and Stage II of the First Batch Granted in 2018 was reviewed and
    approved. It was agreed that the unlocking of the Stage II restricted shares in the first grant in 2018 should be proceeded with
    according to the relevant provisions of the 2018 Restricted Stock Incentive Plan. A total of 116 incentive objects were eligible
    for the Stage II unlock of the first batch granted in 2018, and the total number of restricted shares that could be unlocked was
    1,986,000, accounting for 0.1363% of the Company's total share capital at present.

16. On May 12, 2021, the Stage II unlocked restricted shares from the first grant of the 2018 Restricted Stock Incentive Plan were


                                                                                                                                    69
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

    listed for circulation. The number of restricted shares unlocked this time was 1,986,000, accounting for 0.1363% of the
    Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 1,326,000,
    accounting for 0.0910% of the Company's total share capital at present.

17. On September 8, 2021, the Stage I unlocked restricted shares from the reserved part of the 2018 Restricted Stock Incentive Plan
    were listed for circulation. The number of restricted shares unlocked this time was 680,000, accounting for 0.0467% of the
    Company's total share capital at present; the actual number of restricted shares that could be listed for circulation was 680,000,
    accounting for 0.0467% of the Company's total share capital at present.




                                                                                                                                     70
                                                                                                                                                                           Sungrow Power Supply Co., Ltd.
                                                                                                                                                             2021 Annual Report (Concise Version in English)
Equity incentives granted to directors and executives
√ Applicable □ Not Applicable
                                                                                                                                                                                                       (in Shares)

                                                                                                                                              Restricted
                                     Stock                                                     Exercise price     Stock                                                                                 Restricted
                                                      Stock          Shares       Shares                                       Market price    shares      Restricted Granting price         Shares
                                  options held                                                   of shares       options                                                                                shares held
                                                     options       exercisable exercised                                       at the end of held at the    shares          of restricted   unlocked
     Name              Title         at the                                                     exercised in    held at the                                                                             at the end
                                                    granted in       in the       in the                                        the period    beginning    granted in          shares        in the
                                  beginning of                                                   the period     end of the                                                                                of the
                                                    the period       period       period                                       (RMB/share)      of the     the period       (RMB/share)      period
                                   the period                                                  (RMB/share)        period                                                                                  period
                                                                                                                                               period

Zheng Guibiao        Director,
                                                0              0              0            0                               0                    210,000                 0                     90,000       120,000
                    Senior VP

Zhao Wei             Director,
                                                0              0              0            0                               0                    210,000                 0                     90,000       120,000
                    Senior VP

Li Guojun            Finance
                                                0              0              0            0                               0                    190,000                 0                    110,000        80,000
                     Director

Gu Yilei            Senior VP                   0              0              0            0                               0                    285,000                 0                    165,000       120,000

Zhang Xucheng          Vice
                                                0              0              0            0                               0                     50,000                 0                     50,000
                    Chairman

Chen Zhiqiang           VP                      0              0              0            0                               0                    260,000                 0                    140,000       120,000

Wu Jiamao               VP                      0              0              0            0                               0                    260,000                 0                    140,000       120,000

Cheng Cheng             VP                      0              0              0            0                               0                    260,000                 0                    140,000       120,000

Xie Xiaoyong            VP                      0              0              0            0                               0                    235,000                 0                    115,000       120,000

Deng Dejun              VP                      0              0              0            0                               0                    220,000                 0                    140,000        80,000

Zhang Youquan           VP                      0              0              0            0                               0                    210,000                 0                     90,000       120,000

Li Shun                 VP                      0              0              0            0                               0                     25,000                 0                     25,000


                                                                                                                                                                                                                     71
                                                                                                                                                             Sungrow Power Supply Co., Ltd.
                                                                                                                                               2021 Annual Report (Concise Version in English)
Peng Chaocai            VP                   0           0            0           0                            0                   105,000              0                    45,000      60,000

Total                   --                   0           0            0           0        --                  0       --        2,520,000              0      --         1,340,000 1,180,000



The Company has established a complete performance evaluation system and remuneration system for executives. Based on the delivery status of the Company's annual business objectives and
the job performance of executives, the Remuneration and Evaluation Committee of the Board of Directors carries out annual performance evaluation of executives and supervises the
implementation of the remuneration system. Rewards and punishments will be applied correspondingly according to the performance evaluation results.


b. Implementation of the Employee Stock Ownership Plan

□ Applicable √ Not Applicable


c. Other Employee Incentive Measures

□ Applicable √ Not Applicable


XIV: Establishment and Implementation of the Internal Control System during the Reporting Period

1. Establishment and Implementation of Internal Control

In strict accordance with the Company Law, the Securities Law, the Governance Guidelines for Listed Companies as well as other requirements in normative documents on the governance of
listed companies issued by the China Securities Regulatory Commission, the Company continued to improve the corporate governance structure and systems, such as the shareholders’ meeting,
the Board of Directors, and the Board of Supervisors. In addition, the Company followed the latest requirements of laws and regulations to   standardize the behavior of controlling shareholders,
actual controllers, directors, supervisors, executives and related parties, thereby improving the level of internal governance. The Company organized directors, supervisors and executives to
regulatory compliance training on a timely basis, hence to improve the corporate governance standard of the management team. For middle-level managers and ordinary employees, the
Company conducted targeted compliance training to improve their risk prevention awareness, strengthen operational compliance, and ensure the effective implementation of internal control
policies, so that the Company’s standard operation level could be effectively raised, and the healthy and sustainable development could be promoted.
Subject to the Basic Internal Control Standards and the supporting guidelines as well as other internal control regulations, the Company established internal control systems and evaluation
mechanisms. Following the principle of risk orientation, such systems and mechanisms were constantly optimized on the basis of routine supervision and special supervision of internal control,
so as to cope with the ever-changing external environment and internal management requirements. During the reporting period, the development and implementation of the Company's internal

                                                                                                                                                                                              72
                                                                                                                                                             Sungrow Power Supply Co., Ltd.
                                                                                                                                               2021 Annual Report (Concise Version in English)
control system complied with the Basic Internal Control Standards and the relevant laws and regulations, and ensured effective internal control in all major aspects related to the business
operation and management of the Company. There were no critical internal control deficiencies in financial reporting or non-financial reporting.


2. Description of Critical Internal Control Deficiencies Identified During the Reporting Period

□ Yes √ No


XV: Management and Control of the Company's Subsidiaries during the Reporting Period

                                                                                                           Problems during
 Company Name                    Integration Plan                          Integration Progress                                 Resolutions Taken   Resolution Progress      Action Plan
                                                                                                              Integration

                   In order to optimize the asset-liability
                   structure of the Company’s holding
                   subsidiary, Sungrow Renewables
                                                                The Company held the thirteenth meeting
                   Development Co., Ltd. and improve its
                                                                of the fourth Board of Directors on
                   financing capability, so as to meet its
                                                                December 3, 2021, and the third
                   operating capital needs and ensure the
                                                                extraordinary general meeting in 2021 on
                   smooth deployment of various businesses,
Sungrow                                                         December 20, 2021, at which the Proposal
                   the Company planned to increase Sungrow
Renewables                                                      on Increasing the Holding Subsidiary’s
                   Renewables’ capital by RMB 1,971.2                                                      Not Applicable       Not Applicable        Not Applicable      Not Applicable
Development                                                     Capital via the Debt-for-Equity Swap and
                   million via the debt-for-equity swap, of
Co., Ltd.                                                       Implementing Equity Incentives and
                   which RMB 338,694,158 was used as
                                                                Related Party Transactions for the
                   share capital and RMB 1,632,505,842 as
                                                                Holding Subsidiary. On December 23,
                   capital reserve. At the same time, Sungrow
                                                                2021, Sungrow Renewables obtained the
                   Renewables planned to grant equity
                                                                latest business license.
                   incentives to executives Gu Yilei, Wu
                   Jiamao, and Li Shun through capital
                   increase and share expansion.



                                                                                                                                                                                            73
                                                                                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                                                                                       2021 Annual Report (Concise Version in English)
XVI. Internal Control Self-Assessment Report or Internal Control Audit Report

1. Internal Control Self-Assessment Report


The full text of the internal control assessment report was disclosed on                           April 20, 2022

The full text of the internal control assessment report was disclosed at                           www.cninfo.com.cn

The ratio of the total assets of organizations included in the assessment to the total assets of
                                                                                                                                                                                                  100.00%
the Company's consolidated financial statements

The ratio of the operating income of organizations included in the assessment to the
                                                                                                                                                                                                  100.00%
Company’s total operating income in the consolidated financial statements

                                                                                         Criteria of Deficiencies

                  Category                                           Financial Reports                                                           Non-Financial Reports

                                                                                                                Deficiencies with the following characteristics are considered as critical deficiencies
                                                                                                                in the internal control of non-financial reports:
                                              Each of the following is considered a critical deficiency by
                                                                                                                1) No scientific basis for the decision-making procedures, resulting in major
                                              the Company: Fraudulence of the Company's directors,
                                                                                                                mistakes;
                                              supervisors and executives; corrections to financial
                                                                                                                2) High turnover of key positions, professionals and technical personnel;
Qualitative Criteria                          statements disclosed; mistakes or omissions of major data in
                                                                                                                3) Internal control assessment results, especially the critical deficiencies, are not
                                              the current financial statements discovered by certified
                                                                                                                rectified;
                                              public accountant but ignored by the internal audit
                                                                                                                4) Other situations that may have a significant negative impact on the Company.
                                              department during the control operation.
                                                                                                                Other situations are categorized as critical deficiencies or minor deficiencies
                                                                                                                according to the level of impact.

                                              The quantitative criteria for determining the significance of
                                              mistakes (including omissions) in the Company's                   The quantitative criteria for determining internal control deficiencies in non-financial
Quantitative Criteria                         consolidated financial statements by benchmarking the data reports shall refer to the quantitative criteria for determining internal control
                                              from previous annual financial statements:                        deficiencies in financial reports.
                                              Critical deficiency: mistakes ≥ 5% of total profit
                                                                                                                                                                                                        74
                                                                                                                                                            Sungrow Power Supply Co., Ltd.
                                                                                                                                              2021 Annual Report (Concise Version in English)
                                                Major deficiency: 2% of total profits ≤ mistakes ≤ 5% of
                                                total profit
                                                Minor deficiency: mistakes ≤ 2% of total profit

Number of critical deficiencies in financial
                                                                                                                                                                                             0
reports

Number      of   critical   deficiencies   in
                                                                                                                                                                                             0
non-financial reports

Number of major deficiencies in financial
                                                                                                                                                                                             0
reports

Number      of    major     deficiencies   in
                                                                                                                                                                                             0
non-financial reports


2. Internal Control Audit Report or Assurance Report

Not Applicable


XVII: Rectification of Problems Found in Dedicated Self-Examination Initiatives on Corporate Governance

According to the relevant requirements of regulators, the Company carried out dedicated self-examination initiatives on corporate governance during the reporting period. In strict accordance
with the checklist, the Company carefully reviewed the ownership structure, the structure of directors, supervisors and executives, and the respective incumbents, the internal policies and
regulations, the information disclosure system and other aspects. The Company also modified the subject for soliciting voting rights in the Articles of Association according to the latest
requirements of the Securities Law.
The dedicated self-examination initiatives on corporate governance enabled the Company to further clarify the job responsibilities and legal accountabilities of various functions and
management personnel of the Company. At the same time, the Company continued to promote the legitimate, compliant and efficient operation of the shareholders’ meeting, the Board of
Directors and the Board of Supervisors, give full play to their decision-making and supervisory roles, and improve the scientific nature of the Company's decision-making. In the next step, the
Company will continue to strengthen internal supervision and management in accordance with the requirements of relevant regulations, constantly optimize the governance systems, motivate
the various departments and relevant personnel to keep on learning, and effectively improve the Company's standard operation level and corporate governance effectiveness, thereby
safeguarding the interests of the majority of investors.

                                                                                                                                                                                             75
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)




                   Section V Environment and Social Responsibilities

I.    Major Environmental Issues

Whether the Company and its subsidiaries are included in the list of key pollutant discharge organizations identified by the
environmental authority
□ Yes √ No
Administrative penalties for environmental issues during the reporting period
The Company was subject to no environment-related administrative penalties during the reporting period.
Refer to other environmental information disclosed by key pollutant discharge units
Not Applicable
Measures taken to reduce carbon emissions during the reporting period and their effects
√ Applicable □ Not Applicable
The Company actively rolled out carbon inventory and carbon footprint standards, provided transparent and science-based
verification procedures for low-carbon development, and assumed corporate responsibilities. The verification for 2020 and 2021 has
been completed so far, and the following data is correlated to the Company's risk identification and analysis results. Carbon inventory
enables the Company to get insights on the carbon emission of each operation process, and provides fundamental data support for
addressing climate-related risks, reducing carbon emission, and improving the Company’s competitiveness and stability.
The Company’s carbon emission in 2021 as verified by a third-party institution is as follows: Scope 1 (2,323.46 tons of CO
equivalent/year) Scope 2 (35911.00 tons of CO equivalent/year). In 2021, the Company avoided 7,975.21 tons of carbon emission
by directly purchasing green power and generating power with rooftop PV power stations, and offset 8,175.00 tons of carbon
emission by purchasing I-REC, making significant emission reduction achievements.


Reasons for not disclosing other environmental information

The Company and its subsidiaries are not included in the list of key pollutant discharge units identified by the environmental
authority. The Company actively responds to the requirements of the national and local governments, strictly regulates noise, effluent,
waste gas, and hazardous waste generated within the Company, formulates the corresponding environmental protection rules and
regulations, and monitors noise, effluent, waste gas, and hazardous waste in strict accordance with the pollution discharge permit
management requirements.


II. Social Responsibilities

For details, please refer to the 2021 Sustainability Report of Sungrow Power Supply disclosed by the Company on
www.cninfo.com.cn.


III. Efforts on Consolidating and Expand the Achievements of Poverty Alleviation and Rural
      Revitalization

In the process of business operation throughout 2021, the Company cautiously protected local natural resources and community
resources, maximized business advantages, and benefited the community as much as possible.


                                                                                                                                    76
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

In the process of developing and building power stations, the Company made every effort to enable parallel growth with local
communities, actively helped them improve the quality of life, offered employment opportunities, and provided convenience for the
community. Since most of the power stations were located in remote areas difficult to access, Sungrow Renewables took the
community’s requirements into consideration when building the power stations. In 2021, the Company built concrete-pavement roads
for Tushan Town of Laizhou City, and repaired the village-level roads for Binhu Town of Tengzhou City.
In the process of developing and constructing the power station project, the Company strives to achieve common development with
the local community, actively helps the community to improve the quality of life, provides some jobs, and provides convenience for
the life of the community residents. Since most of the power station projects are located in remote areas with inconvenient
transportation, Sungrow Renewables will also consider the requirements of community residents when building the power station. In
2021, cement roads will be built in Tushan Town, Laizhou City, and village-level roads will be repaired in Binhu Town, Tengzhou
City. In terms of supporting science and technology innovation, education and talents, the Company donated to the Dalateqi People's
Education Foundation of Inner Mongolia for education assistance, teachers training, performance rewarding, and infrastructure
improvement.

The Company actively participated in epidemic prevention and control and flood relief in various places. In view of the resurface of
the epidemic in multiple cities, the Company donated epidemic prevention supplies to Gansu, Guangxi and other provinces. When
Henan and Shanxi were stricken by flood, the Company made a donation of RMB 3 million to the Henan Charity Federation, and a
donation of RMB 500,000 in cash and RMB 100,000 of emergency supplies to the Red Cross Society of Jiaokou County, for flood
control, disaster relief and post-disaster reconstruction in Henan, Shanxi and other places.




                                                                                                                                  77
                                                                                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                                                                                  2021 Annual Report (Concise Version in English)



                                                                   Section VI Significant Events

I. Fulfillment of Undertakings

1.Undertakings made by the Company or its actual controller, shareholder, related party and acquirer that are to be fulfilled in the reporting period, or
undertakings not yet fulfilled by the end of the reporting period

√ Applicable □ Not Applicable

                                                                                                                                                     Date of
 Origin of undertaking               Undertaker              Type of undertaking                            Content                                              Duration    Status of fulfillment
                                                                                                                                                   undertaking

Acquisition Report or
Equity Change Report

Undertaking at the time
of asset reorganization

Undertaking at IPO or                                                              Shareholders Mr. Cao Renxian, Mr. Zheng Guibiao and
refinancing                                                                        Mr. Zhao Wei, who serve as the Company’s directors
                                                                                   and/or executives, hereby undertake that no shares
                                                             Undertaking on                                                                                                 The undertaking is
                          Cao Renxian, Zheng Guibiao, Zhao                         exceeding 25% of the total shares held by each individual
                                                             executive’s share                                                                   Jan. 31, 2011 Long-term being fulfilled with no
                          Wei                                                      shall be transferred each year after the lock-up period, and
                                                             lock up                                                                                                        signs of breaching
                                                                                   no shares held by each individual shall be transferred
                                                                                   within 6 months after the shareholder resigns from the
                                                                                   Company.

                                                                                   1. On the date of signing this Letter of Undertaking, I or
                                                             Undertaking on                                                                                                 The undertaking is
                                                                                   the companies I have interests in, have not produced or
                          Cao Renxian                        horizontal                                                                           Jan. 31, 2011 Long-term being fulfilled with no
                                                                                   developed any product that competes or may compete
                                                             competition                                                                                                    signs of breaching
                                                                                   with those produced by the joint-stock company; have not

                                                                                                                                                                                                 78
                                                                            Sungrow Power Supply Co., Ltd.
                                                              2021 Annual Report (Concise Version in English)
directly or indirectly operated any business that competes
or may compete with those operated by the joint-stock
company; have not invested in any other enterprise that
competes or may compete with the joint-stock company in
terms of products or business; 2. As of the date of signing
this Letter of Undertaking, I or the companies I have
interests in, will not produce or develop any product that
competes or may compete with those produced by the
joint-stock company; will not directly or indirectly
operate any business that competes or may compete with
those operated by the joint-stock company; will not invest
in any other enterprise that competes or may compete
with the joint-stock company in terms of products or
business; 3. As of the date of signing this Letter of
Undertaking if the joint-stock company further expands
its products and business scope, I or the companies I have
interests in, will not compete with the joint-stock
company in terms of the expanded products or business.
In the event of competition with the expanded products or
business of the joint-stock company, I or the companies I
have interests in, will stop producing the competing
product or operating the competing business, or
incorporate the competing business into the joint-stock
company, or transfer the competing business to an
unrelated third party, in order to avoid horizontal
competition; 4. If this Letter of Undertaking is proven to
be untrue or not complied with, the undertaker will
indemnify the joint-stock company for any and all direct
and indirect losses.


                                                                                                          79
                                                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                                                        2021 Annual Report (Concise Version in English)
                                                          1. On the date of signing this Letter of Undertaking, the
                                                          undertaker or the company controlled by the undertaker,
                                                          has not produced or developed any product that competes
                                                          or may compete with those produced by the joint-stock
                                                          company; has not directly or indirectly operated any
                                                          business that competes or may compete with those
                                                          operated by the joint-stock company; has not invested in
                                                          any other enterprise that competes or may compete with
                                                          the joint-stock company in terms of products or business;
Luzhou Huizhuo Enterprise
                                                          2. Whenever the undertaker still holds 5% or more of the
Management Partnership (Limited      Undertaking on                                                                                               The undertaking is
                                                          joint-stock company’s shares, the undertaker or the
Partnership) (formerly Xinjiang      horizontal                                                                         Jan. 31, 2011 Long-term being fulfilled with no
                                                          company controlled by the undertaker will not produce or
Shangge Equity Investment            competition                                                                                                  signs of breaching
                                                          develop any product that competes or may compete with
Partnership (Limited Partnership))
                                                          those produced by the joint-stock company; will not
                                                          directly or indirectly operate any business that competes
                                                          or may compete with those operated by the joint-stock
                                                          company; will not control any other enterprise that
                                                          competes or may compete with the joint-stock company in
                                                          terms of products or business; 3. If this Letter of
                                                          Undertaking is proven to be untrue or not complied with,
                                                          the undertaker will indemnify the joint-stock company for
                                                          any and all direct and indirect losses.

Shanghai Greenwoods Asset                                 The shares granted this time will be locked up and not
Management Co. Ltd. -                Undertaking on no    transferred in six months from the closing date of the
Greenwoods Jingtai Fenshou           trading by           issuance. If the lock-up period is otherwise stipulated in                              The undertaking is
Private Securities Investment Fund, subscribers of        laws or regulations, such a lock-up period shall prevail.     Oct. 22, 2021 6 months    being fulfilled with no
Shanghai Greenwoods Asset            non-public offering Derivative shares obtained by the subscriber of this                                     signs of breaching
Management Co. Ltd. - Fengshou       shares               issuance due to the distribution of stock dividends or the
No. 3 Private Equity Fund, Huatai                         transfer of capital reserve shall also abide by the lock-up

                                                                                                                                                                       80
                                                                                            Sungrow Power Supply Co., Ltd.
                                                                              2021 Annual Report (Concise Version in English)
                           Financial Holdings (Hong Kong)      arrangement.
                           Limited, JPMorgan Chase Bank,
                           National Association, Dajia Asset
                           Management Co., Ltd. - Dajia
                           Asset-ICBC-DaJia Asset-Blue Chip
                           Selected No. 5 Collective Asset
                           Management Product, Yunnan
                           Energy Investment Co., Ltd.,
                           Goldman Sachs & Co. LLC, The
                           Hongkong and Shanghai Banking
                           Corporation Limited, UBS AG,
                           J.P.Morgan Securities PLC, Gao
                           Jinhua, Beijing XHTH Asset
                           Management (Limited Partnership)
                           - Xinhong Xinghong No. 2 Private
                           Securities Investment Fund, WT
                           Asset Management Limited,
                           Runhui Investment Management
                           Hong Kong Co., Ltd., Jinan
                           Jiangshan Investment Partnership
                           (Limited Partnership), Caitong
                           Fund Management Co., Ltd., Zhong
                           Ge, Lord Abbett China Asset
                           Management Co., Ltd.

Undertaking on equity
incentive

Other       undertakings
made to the Company's
minority shareholders

                                                                                                                          81
                                                                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                                                                   2021 Annual Report (Concise Version in English)
Undertaking is fulfilled
                             Yes
on time

If the undertaking is
expired       and      not
fulfilled,   specify   the
                             Not Applicable
detailed     reasons   for
failure to fulfill and
subsequent action plans


2. If there is a profit forecast on the Company's assets or projects and the forecast period contains the reporting period, provide an explanation on whether
assets or projects achieving the profit forecast and the reasons behind

□ Applicable √ Not Applicable


II. Non-Operating Appropriation of Funds by Controlling Shareholders or Other Related Parties

□ Applicable √ Not Applicable
In the reporting period, there was no non-operating appropriation of funds by controlling shareholders or other related parties.


III. Illegal External Guarantees

□ Applicable √ Not Applicable
In the reporting period, the Company made no illegal external guarantees.


IV. The Board of Directors’ Statement on the Most Recent Non-Standard Audit Report

□ Applicable √ Not Applicable




                                                                                                                                                                               82
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)




V. Statement of the Board of Directors, the Board of Supervisors, and Independent Directors
(if any) on the Non-Standard Audit Report Issued by the Accounting Firm in the Reporting
Period

□ Applicable √ Not Applicable


VI. The Board of Directors’ Statement on the Changes in Accounting Policies and
Accounting Estimates and the Corrections to Significant Accounting Errors in the Reporting
Period

√ Applicable □ Not Applicable

1. Changes in major accounting policies

Implementation of the new lease standards

On December 7, 2018, the Ministry of Finance issued the Accounting Standards for Business Enterprises No. 21 - Leases (hereinafter
referred to as the Lease Standards). The Company started implementing the Lease Standards as of January 1, 2021, and made
relevant adjustments to accounting policies. Refer to Note III. 29 for details.

For contracts in existence before the first day of implementation, the Company chose not to re-evaluate whether they were leases or
containing leases on the first day of implementation.

For contracts signed or modified after the first day of implementation, the Company evaluated whether they were leases or
containing leases according to the definition of lease in the Lease Standards.

(1) The Company as the lessee

The Company chose to adjust the retained earnings and other related items in the financial statements at the beginning of the year for
the first implementation (i.e. January 1, 2021) with the cumulative impact of the first implementation of the Lease Standards, and left
the information for the comparable period as it was:

A. For financial leases before the first day of implementation the Company calculated the right-of-use asset and lease liability
separately on the date of initial application according to the original book value of the financial lease asset and the financial lease
payable;

B. For operating leases before the first day of implementation the Company calculated the lease liability on the date of initial
application based on the present value of the balance lease payment discounted at the lessee's incremental borrowing rate on the first
day of implementation and calculated the right-of-use asset after making necessary adjustments to the amount equivalent to the lease
liability and the prepaid rent of each lease;

C. On the first day of implementation, the Company conducted an impairment test on the right-of-use asset and applied appropriate
accounting treatment in accordance with Note III. 21.

For low-value operating leases before the first day of implementation, a simplified treatment was applied and the right-of-use asset
and lease liability were not recognized. In addition, for operating leases before the first day of implementation, one or more of the
following simplified treatments were applied:

      Leases ending in 12 months from the first day of implementation were treated as short-term leases;



                                                                                                                                    83
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

      When calculating lease liabilities, the same discount rate was applied for leases with similar characteristics;

      The calculation of the right-of-use asset did to include initial direct costs;

      Where a renewal option or a termination option existed, the Company determined the term of lease according to the actual
      exercise of options and other updates before the first day of implementation.

      As an alternative to the right-of-use asset impairment test, the Company determined whether a contract involving a lease was in
      deficit before the date of initial application in accordance with the Accounting Standards for Business Enterprises No. 13 -
      Contingencies, and adjusted the right-of-use asset by the amount of the loss provision included it in the balance sheet before the
      first day of implementation.

      Where there was a change in lease before the first day of implementation, accounting treatments were applied according to the
      final arrangement of the lease.

(2) The Company as the lessor

For subleases classified as operating leases before the first day of implementation and sustained after that, the Company, as the
sublease lessor, made re-evaluation and classification based on the remaining term and the provisions of the original lease contract
and the sublease contract on the first day of implementation. In addition, the Company made no adjustment to leases with the
Company as a lessor according to the transition regulations, instead, accounting treatments were applied in accordance with the
Lease Standards as of the first day of implementation.

(3) Leaseback transactions

For leaseback transactions that existed before the first day of implementation, the Company did not re-evaluate on the first day of
implementation whether the asset transfer complied with the provisions of Note III. 26 for accounting treatment as sales. For
leaseback transactions that should be treated in accounting as sales and financial leases before the first day of implementation,
accounting treatment was applied to the leaseback in the same way as other financial leases by the Company as the seller (lessee),
and the deferred gain or loss was amortized over the term of lease. For leaseback transactions that should be treated in accounting as
sales and operating leases before the first day of implementation, accounting treatment was applied to the leaseback in the same way
as other operating leases by the Company as the seller (lessee), and adjustment was made to the right-of-use asset according to the
deferred gain or loss included in the balance sheet before the first day of implementation.

Refer to Note 32 (3) for the impact of implementing the Lease Standards on the consolidated financial statements and the parent
company's financial statements.

Implementation of the provisions on the Related Presentation of Centralized Fund Management in the No. 15 Interpretation of
Accounting Standards for Business Enterprises

On December 30, 2021, the Ministry of Finance issued the No. 15 Interpretation of Accounting Standards for Business Enterprises
(MOF-Acc-[2021] No. 35) (hereinafter referred to as the Interpretation No. 15"), in which the provisions on the Related Presentation
of Centralized Fund Management came into force on the date of issuance. The Company started implementing the provisions as of
December 30, 2021. For data in the financial statements that were not presented according to the Related Presentation of Centralized
Fund Management prior to the release of Interpretation No. 15, the Company made corresponding adjustments for the comparable
periods as per the provisions.

Implementing the provisions of Interpretation No. 15 on the related presentation of centralized fund management had no impact on
the Company's consolidated financial statements and the parent company's financial statements.

2. Changes in significant accounting estimates

There were no changes in significant accounting estimates in the reporting period.


                                                                                                                                     84
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

3. Adjustment of relevant items in the financial statements at the beginning of the year for the initial implementation of the
Lease Standards

                                                     Consolidated Balance Sheet
                   Item                            Dec. 31, 2020                Jan. 1, 2021                Adjusted Amount

Right-of-use assets                                                 —                234,062,622.80                 234,062,622.80

Long-term prepaid expenses                               33,776,287.75                 25,956,513.31                   -7,819,774.44

         Adjusted total assets                           33,776,287.75                260,019,136.11                 226,242,848.36

Non-current liabilities due within one                  260,700,564.28                288,170,335.11                  27,469,770.83
year

Lease liability                                                     —                198,773,077.53                 198,773,077.53

       Adjusted total liabilities                       260,700,564.28                486,943,412.64                 226,242,848.36

                                                Parent Company’s Balance Sheet
                   Item                            Dec. 31, 2020                Jan. 1, 2021                Adjusted Amount

Right-of-use assets                                                 —                  4,411,949.44                   4,411,949.44

Long-term prepaid expenses                               16,015,819.79                 16,015,819.79                              —

         Adjusted total assets                           16,015,819.79                 20,427,769.23                   4,411,949.44

Non-current liabilities due within one                  136,743,233.13                139,327,874.96                   2,584,641.83
year

Lease liability                                                     —                  1,827,307.61                   1,827,307.61

       Adjusted total liabilities                       136,743,233.13                141,155,182.57                   4,411,949.44

Statement on adjustments made to each item: On January 1, 2021, for operating leases before the first day of implementation, the
Company used the discounted present value of the incremental borrowing rate before the first day of implementation to calculate the
lease liability, which was at RMB 226,242,848.36, of which RMB 27,469,770.83 that was due within one year was recategorized to
non-current liabilities due within one year. Based on an amount equal to the lease liability, the Company calculated the right-of-use
assets after making necessary adjustments to the prepaid rent, which was at RMB 234,062,622.80. Meanwhile, the long-term prepaid
expenses decreased by RMB 7,819,774.44.


VII. Changes in the Scope of Consolidated Statements as Compared to the Financial Reports
of the Previous Year

√ Applicable □ Not Applicable

1. Consolidation of businesses not under the same control

(1) Consolidation of businesses not under the same control in the reporting period
            Acquiree                Date of equity           Cost of equity         Equity ratio (%)      Equity acquisition mode
                                     acquisition
    Gansu Tongfei Sungrow           Jul. 31, 2021            5,100,000.00                51.00                Cash acquisition
        Energy Co., Ltd.



                                                                                                                                  85
                                                                                                        Sungrow Power Supply Co., Ltd.
                                                                                          2021 Annual Report (Concise Version in English)

(continued)
               Acquiree                 Date of             Basis for        Acquiree’s income from the       Acquiree’s net profit from the
                                      acquisition       determining the      date of acquisition to the end date of acquisition to the end of
                                                       date of acquisition           of the period                       the period
    Gansu Tongfei Sungrow             Jul. 31, 2021      Date of gaining                                  —                     1,700,331.63
         Energy Co., Ltd.                                    control

(2) Consolidated cost and goodwill

Consolidated cost                                                                      Gansu Tongfei Sungrow Energy Co., Ltd.

- cash                                                                                                                           5,100,000.00

- fair value of non-cash assets                                                                                                             —

- fair value of debts issued or assumed                                                                                                     —

- fair value of equity securities issued                                                                                                    —

- fair value of contingent consideration                                                                                                    —

- fair value of equity already in possession on the date of acquisition                                                          4,900,000.00

            Total consolidated cost                                                                                             10,000,000.00

Less: Fair value of shares of identifiable net assets acquired                                                                  10,266,221.04

Amount difference when consolidated cost is less than the fair value                                                              -266,221.04
of shares of identifiable net assets acquired

Statement on determining the fair value of consolidated cost: The fair value of identifiable net assets of the acquiree, Gansu Tongfei
Sungrow Energy Co., Ltd., has been confirmed by Zhongshuizhiyuan Assets Appraisal Co., Ltd. (refer to Asset Appraisal Report
ZSZY [2021] No. 020820). The difference between the consolidated cost on the date of acquisition and the fair value of the
identifiable assets and liabilities of the acquiree was recognized as non-operating income.

(3) Identifiable assets and liabilities of the acquiree on the date of acquisition
                      Item                                                 Gansu Tongfei Sungrow Energy Co., Ltd.
                                                      Fair Value on the day of Acquisition           Book Value on the day of Acquisition

Assets

Monetary funds                                                                      53,694.23                                         53,694.23

Other receivables                                                                   26,451.83                                         26,451.83

Inventory                                                                          905,385.40                                      905,385.40

Fixed assets                                                                     9,385,627.31                                    9,385,627.31

Intangible assets                                                                3,811,000.00                                    2,765,765.64



Liabilities:

Accounts payable                                                                   299,259.12                                      299,259.12

Advance payment                                                                     75,000.00                                         75,000.00

Salaries payable                                                                      1,000.00                                         1,000.00


                                                                                                                                            86
                                                                                                      Sungrow Power Supply Co., Ltd.
                                                                                        2021 Annual Report (Concise Version in English)

Taxes payable                                                                   1,551,272.75                                 1,551,272.75

Other payables                                                                  1,728,097.27                                 1,728,097.27

Deferred tax liabilities                                                         261,308.59                                              —



Net assets                                                                     10,266,221.04                                 9,482,295.27

Less: minority’s interests                                                               —                                             —

Net assets acquired                                                            10,266,221.04                                 9,482,295.27

(4) Gains or losses arising from recalculating equities being held before the date of acquisition at fair value
  Acquiree       Acquiree Book       Fair value of equity Gains or losses arising Ways to determine the fair        Amount of other
                 value of equity originally held on the from the re-calculation value of equity originally       comprehensive income
                originally held on date of acquisition of equity originally held held and main assumptions related to equity originally
                   the date of                                 at fair value        on the date of acquisition   held that is converted to
                   acquisition                                                                                     investment income
Gansu                 4,646,324.68          5,030,448.31              384,123.63 Assets Appraisal Report                                 —
Tongfei
Sungrow
Energy Co.,
Ltd.

2. Changes in the scope of consolidation for other reasons

(1) Newly established subsidiaries

In this period, the Company newly established 6 wholly-owned subsidiaries, namely Hefei Sungrow Zero Carbon Technology Co.,
Ltd., Sungrow Lechong Technology Co., Ltd., Sungrow Hydrogen Energy Technology Co., Ltd., Hefei Hengjun Testing Technology
Co., Ltd., Sungrow Power (Nanjing) Co., Ltd., and Sungrow Smart Renewables Co., Ltd; the Company’s holding subsidiary,
Sungrow Renewables Development Co., Ltd., newly established 450 subsidiaries for power station projects; other holding
subsidiaries of the Company newly established 19 subsidiaries, and none of the subsidiaries newly established in this period is an
important one.

(2) Consolidated project companies in this period

In this period, the Company’s holding subsidiary, Sungrow Renewables Development Co., Ltd., acquired 5 domestic project
companies and 82 overseas ones for the purpose of developing power station business. None of the project companies newly
included in the scope of consolidated statements for this period is an important one.

(3) Disposal of subsidiaries

In this period, the Company disposed of 100% equity of Sungrow Smart Renewables Co., Ltd.; the Company’s holding subsidiary,
Sungrow Renewables Development Co., Ltd., disposed of 9 subsidiaries that were not in actual business. These subsidiaries are no
longer included in the scope of the consolidated statements.

(4) Cancellation of subsidiaries

According to the Company's business needs, the Company cancelled 7 subsidiaries, namely Sungrow Canada Inc., Sungrow Power
(Hong Kong) Company Limited Thai Representative Office, Zhouze (Shanghai) New Energy Co., Ltd., Sungrow-Samsung (Nanjing)
New Energy Co., Ltd., Water Power (Shanghai) Hydrogen Energy Technology Co., Ltd., Nanjing Sungrow Wanrui Energy


                                                                                                                                         87
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

Technology Co., Ltd., and Samsung SDI-Sungrow Energy Storage Battery Co., Ltd.; the Company’s holding subsidiary, Sungrow
Renewables Development Co., Ltd. canceled 25 companies that were not in actual business.

(5) Transfer to other non-current financial assets for accounting

A. In 2021, the Company entered into an agreement with a third party to transfer the subsidiary’s equity to the third party upon the
completion of power station system integration projects invested and constructed by the project company. After singing the
agreement, the Company transferred the project company investment to other non-current financial assets/trading financial assets.
The details of the transfer are as follows:




                                                                                                                                  88
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)



  No.                      Project Company                              Equity ratio (%)            Subscribed capital contribution (10K
                                                                                                                  RMB)
   1     Hefei Yanchen New Energy Technology Co., Ltd.                                     100.00                                100.00

         Xiayi Hengsheng New Energy Technology Co., Ltd.                                   100.00                                100.00

   2     Hancheng Runyang New Energy Co., Ltd.                                             100.00                              7,220.00

   3     Fuxin Fuguang New Energy Power Generation Co.,                                    100.00                             10,870.00
         Ltd.

   4     Hefei Shuchen New Energy Technology Co., Ltd.                                     100.00                                100.00

         Shangshui Jiaoyang New Energy Technology Co.,                                     100.00                                100.00
         Ltd.

   5     Lu'an Huaqin New Energy Co., Ltd.                                                 100.00                              8,514.00

         Huoqiu Huaqin New Energy Co., Ltd.                                                100.00                              8,514.00

   6     Hefei Haopeng New Energy Technology Co., Ltd.                                     100.00                              8,600.00

         Hainan Chunjie New Energy Co., Ltd.                                               100.00                              8,600.00

   7     Hefei Xuzun New Energy Technology Co., Ltd.                                       100.00                              15000,00

         Gaoan Fuyang New Energy Co., Ltd.                                                 100.00                              15000,00

B. For the following project companies, the agreement was signed with the respective third parties in 2020, and the equity transfer
was completed before December 31, 2021: Tengzhou Qingyang New Energy Technology Co., Ltd., Hefei Yanghan New Energy
Technology Co., Ltd., Hunyuan Yuanyang New Energy Power Generation Co., Ltd., Dongxing Haoyang New Energy Co., Ltd.,
Fuxin Xinyang Power New Energy Co., Ltd., Hefei Tiyang New Energy Technology Co., Ltd., Longjiang Rize New Energy
Technology Co., Ltd., Hefei Ruoyang New Energy Technology Co., Ltd., Chizhou Jiuyang New Energy Power Generation Co., Ltd.,
Hefei Juanyang New Energy Technology Co., Ltd., and Susong Suyang New Energy Co., Ltd.

C. For the following project companies, the agreement was signed with the respective third parties in 2021, and the equity transfer
was completed before December 31, 2021: a total of 21 project companies consisting of Hefei Jizhao New Energy Co., Ltd. and its
subsidiaries, Parque Photovoltaic Santa Rita Solar SpA, Sanbar Solar SpA.


VIII. Engagement and Disengagement of Accounting Firms

Accounting firm currently engaged

Name of accounting firm in China                                          RSM China (Special General Partnership)

Compensation for accounting firm in China (RMB 10K)                       180

Years of continuous auditing service provided by the accounting firm in
                                                                          15
China

Name of CPAs of the accounting firm in China                              Wan Yunlong, Jiang Wei, Yao Na

Years of continuous auditing service provided by the CPAs of the firm     2 years, 2 years, 2 years

Whether to replace the accounting firm or not



                                                                                                                                      89
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

□ Yes √ No
Engagement of internal control auditing/accounting firms, financial advisors, or sponsors
□ Applicable √ Not Applicable


IX. Statement on Delisting after the Disclosure of Annual Report

□ Applicable √ Not Applicable


X. Matters Related to Bankruptcy Reorganization

□ Applicable √ Not Applicable
No bankruptcy reorganization related matters happened to the Company in the reporting period.


XI. Major Litigations and Arbitrations

√ Applicable □ Not Applicable
Date of Disclosure: September 5, 2019

Announcement No.: 2019-057

Disclosed at: www.cninfo.com.cn

http://www.cninfo.com.cn/new/disclosure/detail?plate=szse&orgId=9900021300&stockCode=300274&announcementId=12069037
92&announcementTime=2019-09-05%2015:52




                                                                                                                               90
                                                                                                                                                            Sungrow Power Supply Co., Ltd.
                                                                                                                                              2021 Annual Report (Concise Version in English)



   Plaintiff or      Defendant or       Basic information of litigation (arbitration)    Amount       An        Progress of         Result and           Execution of litigation     Case
    Applicant        Respondent                                                         involved   estimated     litigation         impacts of            (arbitration) judgment    Closed
                                                                                        (10KRMB)   liability    (arbitration)        litigation                                      Y/N
                                                                                                     Y/N                           (arbitration)
Sungrow Power      Jiangsu     Yinjia   A case was filed against the customer            313.98       No       Mediated in       Mediated at the       Two parties reached a         Yes
Supply Co., Ltd.   New         Energy   because they failed to make the payment as                             the first         People’s Court       settlement, and the
                   Technology Co.,      agreed in the contract, and the customer                               instance          of Hefei              judgment debtor has
                   Ltd.                 was demanded to pay RMB 2,521,550                                                        High-Tech             performed the settlement
                                        together with an interest for the overdue.                                               Industrial            agreement
                                        The customer defended on the grounds of                                                  Development
                                        product failure, and requested a quality                                                 Zone
                                        appraisal of the product. The case has been
                                        settled after mediation.

                   Jingjiang                                                                                                                           Enforcement in process.
                   Changrunfenghe                                                                                                                      Application has been filed
                                                                                                                                 Judgment made
                   New         Energy                                                                                                                  to the court to list the
                                        A case was filed against the customer                                                    by the People’s
                   Technology Co.,                                                                                                                     respondent as a defaulter
                                        because they failed to make the payment as                             Judgment          Court of Hefei
Sungrow Power      Ltd.                                                                                                                                and limit his/her high-end
                                        agreed in the contract. We applied for           141.15       No       made in the       High-Tech                                            No
Supply Co., Ltd.                                                                                                                                       consumption. The
                                        enforcement to the court, and the case is                              first instance    Industrial
                                                                                                                                                       Company is actively
                                        under enforcement at the moment.                                                         Development
                                                                                                                                                       pursuing clues of
                                                                                                                                 Zone
                                                                                                                                                       respondent’s property at
                                                                                                                                                       the moment

                   Guangdong            A case was filed against the customer                                  Judgment          Judgment made         Enforcement in process.
                   Shengpa       New    because they failed to make the payment as                             made in the       by the People's       Application has been filed
Sungrow Power
                   Energy               agreed in the contract. The two parties          134.44       No       first instance,   Court of Hefei        to the court to list the       No
Supply Co., Ltd.
                   Development          reached a mediation in the second instance,                            mediated in       High-Tech             respondent as a defaulter
                                        but the defendant failed to perform as per                             the second        Industrial            and limit his/her high-end
                                                                                                                                                                                            91
                                                                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                                                                  2021 Annual Report (Concise Version in English)
                   Co., Ltd.            the mediation. Therefore, we applied for                        instance         Development       consumption.      We          have
                                        enforcement to the court, and the case is                                        Zone, and         identified     that          some
                                        under enforcement at the moment.                                                 mediated at the   accounts receivable may
                                                                                                                         Intermediate      be    generated        to      this
                                                                                                                         People's Court    company       from          related
                                                                                                                         of Hefei City     lawsuits,      and            have
                                                                                                                                           requested the court to issue
                                                                                                                                           a notice of assistance in
                                                                                                                                           execution

                   Inner   Mongolia     The customer is a subsidiary of Zhejiang                                                           The case has been filed at
                   Geoho       Energy   Dunan Group. Affected by the overall                                                               the Intermediate People's
                   Equipment     Co.,   operation of Dunan Group, the customer                                                             Court of Hangzhou City.
                   Ltd.                 failed to pay as agreed in the contract.                                                           We are also informed that
                                        Although a lawsuit was brought to the                                            Judgment made     the   People's    Court         of
                                        court, they failed to perform; therefore, we                                     by the            Dongsheng District, Ordos
                                                                                                        Judgment
Sungrow Power                           applied for enforcement.                                                         Intermediate      City, Inner Mongolia has
                                                                                       1,856.40   Yes   made in the                                                              No
Supply Co., Ltd.                                                                                                         People’s Court   accepted the bankruptcy
                                                                                                        first instance
                                                                                                                         of Hangzhou       application       of           this
                                                                                                                         City              company.         We           have
                                                                                                                                           declared creditor’s claims
                                                                                                                                           and are expecting further
                                                                                                                                           advice        from             the
                                                                                                                                           bankruptcy administrator

                   Inner   Mongolia     Same as above                                                                    Judgment made     The case has been filed at
                   Geoho       Energy                                                                                    by the            the Intermediate People's
                                                                                                        Judgment
Sungrow Power      Equipment     Co.,                                                                                    Intermediate      Court of Hangzhou City.
                                                                                       448.85     Yes   made in the                                                              No
Supply Co., Ltd.   Ltd.                                                                                                  People’s Court   We are also informed that
                                                                                                        first instance
                                                                                                                         of Hangzhou       the   People's    Court         of
                                                                                                                         City              Dongsheng District, Ordos

                                                                                                                                                                                      92
                                                                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                                                                  2021 Annual Report (Concise Version in English)
                                                                                                                                           City, Inner Mongolia has
                                                                                                                                           accepted the bankruptcy
                                                                                                                                           application       of       this
                                                                                                                                           company.         We        have
                                                                                                                                           declared creditor’s claims
                                                                                                                                           and are expecting further
                                                                                                                                           advice        from          the
                                                                                                                                           bankruptcy administrator

                   Inner   Mongolia     Same as above                                                                                      The case has been filed at
                   Geoho     Energy                                                                                                        the Intermediate People's
                   Equipment     Co.,                                                                                                      Court of Hangzhou City.
                   Ltd.                                                                                                                    We are also informed that
                                                                                                                     Judgment made         the   People's     Court     of
                                                                                                                     by the                Dongsheng District, Ordos
                                                                                                    Judgment
Sungrow Power                                                                                                        Intermediate          City, Inner Mongolia has
                                                                                     562.15   Yes   made in the                                                              No
Supply Co., Ltd.                                                                                                     People’s Court       accepted the bankruptcy
                                                                                                    first instance
                                                                                                                     of Hangzhou           application       of       this
                                                                                                                     City                  company.         We        have
                                                                                                                                           declared creditor’s claims
                                                                                                                                           and are expecting further
                                                                                                                                           advice        from          the
                                                                                                                                           bankruptcy administrator

                   Wuhan       Suotai   A case was filed at the court because the                                    Judgment made         Enforcement in process.
                   Green     Energy     customer failed to make the payment as                                       by the People’s      Application has been filed
                   Environmental        agreed in the contract. After the judgment                  Judgment         Court of Hefei        to the court to list the
Sungrow Power
                   Technology Co.,      was made, we applied for enforcement         103.11   No    made in the      High-Tech             respondent as a defaulter         No
Supply Co., Ltd.
                   Ltd.                                                                             first instance   Industrial            and limit his/her high-end
                                                                                                                     Development           consumption. We have
                                                                                                                     Zone                  filed an application to the

                                                                                                                                                                                  93
                                                                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                                                                      2021 Annual Report (Concise Version in English)
                                                                                                                                               Intermediate People's
                                                                                                                                               Court of Wuhan City for
                                                                                                                                               bankruptcy of this
                                                                                                                                               company, and the
                                                                                                                                               application is being
                                                                                                                                               reviewed by the court

                                         A case was filed at the court because the                                       Judgment made         This company is currently
                   Jiangsu FGY           customer failed to make the payment as                                          by the People’s      undergoing bankruptcy
Sungrow-Samsung
                   Energy Storage        agreed in the contract. After the judgment                     Judgment         Court of Hefei        and reorganization. We
SDI Energy
                   Technology            was made, we applied for enforcement           28.16     Yes   made in the      High-Tech             have declared creditor's       No
Storage Power
                   Research                                                                             first instance   Industrial            claims and are expecting
Supply Co., Ltd.
                   Institute Co., Ltd.                                                                                   Development           further advice from the
                                                                                                                         Zone                  administrator

                   Zotye         New     A case was filed by a subsidiary of the                                                               This company has
                   Energy     Vehicle    Company at the court because Zotye Auto                                                               completed bankruptcy and
                   Co.,          Ltd.    failed to make the payment as agreed in the                                     Judgment by the       liquidation, and the
Hefei Sungrow      Changsha Branch       contract. We have requested Zotye to pay                       Judgment         People's Court        bankruptcy administrator
Power Technology                         the overdue and compensate for the loss of    1,847.85   Yes   made in the      of Changsha           has paid the corresponding    Yes
Co., Ltd.                                stocking. After the judgment was made, we                      first instance   County, Hunan         creditor’s claims to us
                                         applied for enforcement                                                         Province              according to the
                                                                                                                                               bankruptcy distribution
                                                                                                                                               plan. The case is closed

                   Shandong Yuhui        A case was filed by a subsidiary of the                                         Judgment made         Enforcement in process.
                   New Energy Co.,       Company at the court because Zotye Auto                                         by the People’s      Application has been filed
                   Ltd.                  failed to make the payment as agreed in the                    Judgment         Court of Hefei        to the court to list the
Sungrow Power
                                         contract. We have requested Zotye to pay       36.06     No    made in the      High-Tech             respondent as a defaulter      No
Supply Co., Ltd.
                                         the overdue and compensate for the loss of                     first instance   Industrial            and limit his/her high-end
                                         stocking. After the judgment was made, we                                       Development           consumption. The
                                         applied for enforcement                                                         Zone                  Company is actively

                                                                                                                                                                                   94
                                                                                                                                               Sungrow Power Supply Co., Ltd.
                                                                                                                                 2021 Annual Report (Concise Version in English)
                                                                                                                                          pursuing clues of
                                                                                                                                          respondent’s property at
                                                                                                                                          the moment

                   Hefei     Sanchuan   A case was filed at the court because the                                                         The Company has filed an
                   Automatic            customer failed to make the payment as                                      Judgment made         application            to       Hefei
                   Control              agreed in the contract. After the judgment                                  by the People’s      Railway           Transportation
                   Engineering Co.,     was made, we applied for enforcement                       Judgment         Court of Hefei        Court       for         bankruptcy
Sungrow Power
                   Ltd.                                                              148.06   No   made in the      High-Tech             liquidation             of        the   No
Supply Co., Ltd.
                                                                                                   first instance   Industrial            customer, and is expecting
                                                                                                                    Development           the administrator’s notice
                                                                                                                    Zone                  on    the     declaration          of
                                                                                                                                          creditor’s claims

                   Chaoyang             A case was filed at the court because the                                                         According to the feedback
                                                                                                                    Judgment made
                   Systems Co., Ltd.    customer failed to make the payment as                                                            from lawyers in Taiwan,
                                                                                                                    by the People’s
Sungrow-Samsung                         agreed in the contract. After the judgment                                                        the         customer             has
                                                                                                   Judgment         Court of Hefei
SDI Energy                              was made, we applied for enforcement                                                              completed bankruptcy and
                                                                                     299.28   No   made in the      High-Tech                                                     Yes
Storage Power                                                                                                                             liquidation        in        Taiwan.
                                                                                                   first instance   Industrial
Supply Co., Ltd.                                                                                                                          Based       on          this,     the
                                                                                                                    Development
                                                                                                                                          Company has terminated
                                                                                                                    Zone
                                                                                                                                          the execution

                   Huaxia Juguang       A case was filed at the court because the                                                         Enforcement in process.
                   (Inner Mongolia)     customer failed to make the payment as                                      Judgment made         Application has been filed
                   PV Power Co.,        agreed in the contract. After the judgment                                  by the People’s      to the court to list the
                   Ltd.                 was made, we applied for enforcement                       Judgment         Court of Hefei        respondent as a defaulter
Sungrow Power
                                                                                     249.82   No   made in the      High-Tech             and limit his/her high-end              No
Supply Co., Ltd.
                                                                                                   first instance   Industrial            consumption.                     The
                                                                                                                    Development           Company           is         actively
                                                                                                                    Zone                  pursuing           clues           of
                                                                                                                                          respondent’s property at

                                                                                                                                                                                        95
                                                                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                                                                    2021 Annual Report (Concise Version in English)
                                                                                                                                             the moment

                    Kelin                A case was filed at the court because the                                                           Enforcement in process.
                    Environmental        customer failed to make the payment as                                                              Application has been filed
                                                                                                                       Judgment made
                    Protection           agreed in the contract. After the judgment                                                          to the court to list the
                                                                                                                       by the People’s
                    Equipment     Co.,   was made, we applied for enforcement                                                                respondent as a defaulter
                                                                                                      Judgment         Court of Hefei
Sungrow Power       Ltd.                                                                                                                     and limit his/her high-end
                                                                                      182.77     No   made in the      High-Tech                                              No
Supply Co., Ltd.                                                                                                                             consumption.               The
                                                                                                      first instance   Industrial
                                                                                                                                             Company        is     actively
                                                                                                                       Development
                                                                                                                                             pursuing        clues       of
                                                                                                                       Zone
                                                                                                                                             respondent’s property at
                                                                                                                                             the moment

                    Huainan Haifeng      A case was filed at the court because the                                                           Enforcement in process.
                    Plastic Products     customer failed to make the payment as                                                              Application has been filed
                    Co., Ltd.            agreed in the contract. After the judgment                                                          to the court to list the
                                         was made, we applied for enforcement                                                                respondent as a defaulter
                                                                                                                       Mediated at the
                                                                                                                                             and limit his/her high-end
                                                                                                                       People’s Court
Huainan Sungrow                                                                                                                              consumption. The payment
                                                                                                      Judgment         of Hefei
Floating Module                                                                                                                              has been partially
                                                                                      1,092.58   No   made in the      High-Tech                                              No
Sci. & Tech. Co.,                                                                                                                            recovered from the
                                                                                                      first instance   Industrial
Ltd.                                                                                                                                         enforcement, and the
                                                                                                                       Development
                                                                                                                                             Company is actively
                                                                                                                       Zone
                                                                                                                                             pursuing clues of
                                                                                                                                             respondent’s property at
                                                                                                                                             the moment in order to
                                                                                                                                             recover the outstanding

                    Sichuan              A case was filed at the court because the                                     Judgment made         Enforcement in process.
                                                                                                      Judgment
Sungrow Power       Yuanzhongyuan        customer failed to make the payment as                                        by the People’s      Application has been filed
                                                                                       94.65     No   made in the                                                             No
Supply Co., Ltd.    Electric     Power   agreed in the contract. After the judgment                                    Court of Hefei        to the court to list the
                                                                                                      first instance
                    Engineering          was made, we applied for enforcement                                          High-Tech             respondent as a defaulter

                                                                                                                                                                                   96
                                                                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                                                                  2021 Annual Report (Concise Version in English)
                   Design Co., Ltd.                                                                                  Industrial            and limit his/her high-end
                                                                                                                     Development           consumption.                The
                                                                                                                     Zone                  Company        is    actively
                                                                                                                                           pursuing       clues         of
                                                                                                                                           respondent’s property at
                                                                                                                                           the moment

                   Huludao              A case was filed at the court because the                                                          Enforcement in process.
                   Hongxisheng          customer failed to make the payment as                                                             Application has been filed
                                                                                                                     Judgment made
                   New         Energy   agreed in the contract. After the judgment                                                         to the court to list the
                                                                                                                     by the People’s
                   Development          was made, we applied for enforcement                                                               respondent as a defaulter
                                                                                                    Judgment         Court of Hefei
Sungrow Power      Co., Ltd.                                                                                                               and limit his/her high-end
                                                                                     143.96   No    made in the      High-Tech                                               No
Supply Co., Ltd.                                                                                                                           consumption.                The
                                                                                                    first instance   Industrial
                                                                                                                                           Company        is    actively
                                                                                                                     Development
                                                                                                                                           pursuing       clues         of
                                                                                                                     Zone
                                                                                                                                           respondent’s property at
                                                                                                                                           the moment

                   Zhejiang     Yuhui   A case was filed at the court because the                                                          The customer has gone
                   Lighting Energy      customer failed to make the payment as                                       The lawsuit was       bankrupt, the Company
                   Saving               agreed in the contract                                                       withdrawn upon        has declared creditor’s
                   Technology Co.,                                                                  Lawsuit          ruling of the         claims to the bankruptcy
Sungrow Power      Ltd.                                                                             withdrawn in     People's Court        administrator, and the
                                                                                     47.79    Yes                                                                            Yes
Supply Co., Ltd.                                                                                    the first        of Hefei              bankruptcy administrator
                                                                                                    instance         High-Tech             has paid the corresponding
                                                                                                                     Industrial            creditor’s claims to the
                                                                                                                     Development           Company. The case is
                                                                                                                                           closed

                   Qinghai     Zhuma    A case was filed at the court because the                   Application      Application for       Qinghai Zhuma Sapphire
Sungrow Power
                   Sapphire Crystal     defendant, Qinghai Zhuma, refused to         355.57   No    for court        court                 Crystal Co., Ltd. and He          No
Supply Co., Ltd.
                   Co., Ltd.            refund the bid security. We requested                       enforcement      enforcement           Kangyu were listed as

                                                                                                                                                                                   97
                                                                                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                                                                                   2021 Annual Report (Concise Version in English)
                                           Qinghai Zhuma and the guarantor He                                         filed             filed at the        defaulters by the court. No
                                           Kangyu      to   assume     the   repayment                                                  People's Court      money or assets have been
                                           obligations. After the case came into effect,                                                of Hefei            collected from the
                                           we applied for enforcement to the court,                                                     High-Tech Zone      execution
                                           and the enforcement is in process at the
                                           moment.


XII. Punishments and Rectification

□ Applicable √ Not Applicable
The Company was subject to no punishment or rectification in the reporting period.


XIII. Integrity of the Company, its Controlling Shareholder and Actual Controller

√ Applicable □ Not Applicable
In the reporting period, the Company, its controlling shareholder and actual controller were in good faith, and there were no situations such as failure to perform the effective judgment of the
court or failure to repay large amount of overdue debt.


XIV. Significant Related-Rarty Transactions

1. Related-party transactions involving daily operations

□ Applicable √ Not Applicable
The Company did not make any related-party transactions involving daily operations in the reporting period.


2. Related-party transactions arising from the acquisition or sale of assets or equity

□ Applicable √ Not Applicable
The Company did not make any related-party transactions arising from the acquisition or sale of assets or equity in the reporting period.

                                                                                                                                                                                                    98
                                                                                                       Sungrow Power Supply Co., Ltd.
                                                                                         2021 Annual Report (Concise Version in English)




3. Related-party transactions of joint outbound investment

√ Applicable □ Not Applicable

                                                                                         Registered Total assets Net assets Net profit
                              Name of
Co-Investors Relationship                          Main business of investee             capital of   of investee of investee of investee
                               investee
                                                                                          investee    (10KRMB) (10KRMB) (10KRMB)

                                           Production, manufacture and design of
                                           PV new energy power station equipment;
                                           R&D, design, development, investment,
                                           construction, operation and service of
                                           new energy power generation systems
                                           and projects; electricity sales; integrated
                            Sungrow
Gu Yilei,     Executives                   mechanical and electrical equipment           RMB
                            Renewables
Wu Jiamao, of the                          sales; export of goods or technologies        1,420.5344 1,720,068.87 513,486.36     55,422.6
                            Development
Li Shun       Company                      (except for those that are prohibited by      million
                            Co., Ltd.
                                           the state or those involving
                                           administrative approvals). (For projects
                                           subject to approval according to laws,
                                           business activities can only be carried out
                                           after approval is received form the
                                           relevant departments)

Progress of investee’s
                            This capital increase has been completed, and Sungrow Renewables has obtained the updated business
major projects under
                            license on December 23, 2021.
construction (if any)


4. Related Credits and Liabilities

□ Applicable √ Not Applicable
There were no related credits and liabilities in the reporting period.


5. Transactions with Related Financial Companies

□ Applicable √ Not Applicable
There was no saving, loan, credit or other financial business between the Company and related financial companies or related
parties.


6. Transactions Between Financial Companies Controlled by the Company and Related Parties

□ Applicable √ Not Applicable
There was no saving, loan, credit or other financial business between financial companies controlled by the Company and related
parties.


                                                                                                                                      99
                                                                                                        Sungrow Power Supply Co., Ltd.
                                                                                          2021 Annual Report (Concise Version in English)

7. Other Significant Related-Party Transactions

□ Applicable √ Not Applicable
There were no other significant related-party transactions in the reporting period.


XV: Major Contracts and the Contract Performance

1. Trusteeship, Contracting and Leasing

(1) Trusteeship

□ Applicable √ Not Applicable

There was no trusteeship in the reporting period.

(2) Contracting

□ Applicable √ Not Applicable

There was no contracting in the reporting period.

(3) Leasing

□ Applicable √ Not Applicable

There was no leasing in the reporting period.

2. Major Guarantees

√ Applicable □ Not Applicable
                                                                                                                            (in 10KRMB)

                       Outbound Guarantees of the Company and its Subsidiaries (Excl. Guarantees for Subsidiaries)

                           Date of
                                                                                                                                    Guarante
                        Disclosure of                 Actual     Actual                             Counter-
                                         Amount                              Type of                                                 e for
                        Announcemen                   Date of   Amount                  Collateral Guarante Guarantee Fulfille
 Guarantee Object                        Guarantee                          Guarante                                                Related
                         ts Related to               Guarante      of                    (if any)      e        Period      d Y/N
                                            d                                   e                                                    Party
                         the Amount                      e      Guarantee                           (if any)
                                                                                                                                      Y/N
                         Guaranteed

Users of the           January 26,       80,478.17 January      50,640.00 Joint and                            From the
Company's              2018; May 18,                 26, 2018               several                            date of
household PV           2018; April 1,                                       liability                          loan
products, owners       2021                                                 guarante                           originatio
                                                                                                                            No      No
of industrial and                                                           e                                  n to the
commercial                                                                                                     date of
distributed projects                                                                                           loan pay
(loan application                                                                                              off


                                                                                                                                          100
                                                                                                          Sungrow Power Supply Co., Ltd.
                                                                                            2021 Annual Report (Concise Version in English)

from collaborating
banks)

Home       PV   users August        5, 50,000.00 August 6, 16,316.00 Joint and                                   From the
eligible          for 2021                        2021                        several                            date of
financing                                                                     liability                          loan
                                                                              guarante                           originatio
                                                                              e                                  n to the
                                                                                                                 date of
                                                                                                                 loan pay
                                                                                                                 off

Hefei       Zhongan December 27, 55,807.46 Decembe 55,807.46 Joint and
Sungrow         New 2018; April 1,                r         27,               several
Energy       Industry 2021                        2018                        liability
                                                                                                                 Less than
Investment                                                                    guarante                                        No      No
                                                                                                                 10 years
Partnership                                                                   e
(Limited
Partnership)

                                              The Company’s Guarantee for Subsidiaries

                         Date of
                                                                                                                                      Guarante
                      Disclosure of                   Actual       Actual                             Counter-
                                       Amount                                  Type of                                                 e for
                     Announcemen                      Date of     Amount                  Collateral Guarante Guarantee Fulfille
 Guarantee Object                     Guarantee                               Guarante                                                Related
                      ts Related to               Guarante           of                    (if any)      e        Period      d Y/N
                                          d                                       e                                                    Party
                      the Amount                        e         Guarantee                           (if any)
                                                                                                                                        Y/N
                       Guaranteed

Sungrow Power        May 19, 2020                 May 20,          3,187.85 Joint and
(Hong Kong) Co.,                       14,181.00 2020                         several
                                                                                                                 Less than
Ltd.                                                                          liability                                       No           No
                                                                                                                 3 years
                                                                              guarante
                                                                              e

Sungrow USA          Nov. 17, 2020                Nov. 20,                    Joint and
corporation                            91,106.73 2020             91,106.73 several
                                                                                                                 Less than
                                                                              liability                                       No           No
                                                                                                                 2 years
                                                                              guarante
                                                                              e

Sungrow Japan        Nov. 17, 2020      3,231.65 Nov. 30,          3,231.65 Joint and
K.K.                                              2020                        several
                                                                                                                 Less than
                                                                              liability                                       No           No
                                                                                                                 2 years
                                                                              guarante
                                                                              e

SUNGROW              Apr. 16, 2021                Nov. 11,                    Joint and
                                                                                                                 Less than
POWER UK                               60,000.00 2021             40,075.14 several                                           No           No
                                                                                                                 10 years
LIMITED                                                                       liability


                                                                                                                                            101
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

                                                                       guarante
                                                                       e

Sungrow Ibérica       May 18, 2021
                                                                                                                  No    No
S.A.U.                                15,000.00

Sungrow                May 18, 2021
Deutschland                           20,000.00                                                                   No    No
GmbH

Sungrow Middle         May 18, 2021    1,500.00
                                                                                                                  No    No
East DMCC

SUNGROW                May 18, 2021    1,200.00
POWER UK                                                                                                          No    No
LIMITED

Sungrow Japan          May 18, 2021    5,000.00
                                                                                                                  No    No
K.K.

Sungrow USA            May 18, 2021               Dec. 4,              Joint and
Corporation                           150,000.0 2021         54,229.36 several
                                              0                        liability                                  No    No
                                                                       guarante
                                                                       e

SUNGROW                May 18, 2021    5,000.00
AUSTRALIA                                                                                                         No    No
GROUP PTY LTD

Sungrow Power          May 18, 2021    3,000.00
                                                                                                                  No    No
Korea Limited

Sungrow Energy         May 18, 2021               May 19,              Joint and
Storage                               100,000.0 2021         96,872.80 several
Technology Co.,                               0                        liability                                  No    No
Ltd.                                                                   guarante
                                                                       e

Zuoyun Mingyang May 5, 2016;                      May 10,              Joint and
New Energy Power Apr. 1, 2021         19,400.00 2016         16,400.00 several
                                                                                                      Less than
Generation      Co.,                                                   liability                                  No    No
                                                                                                      15 years
Ltd.                                                                   guarante
                                                                       e

Lingbi    Qingyang Jul. 24, 2017;                 Mar. 15,             Joint and
New Energy Power Apr. 1, 2021         17,307.00 2018         15,186.00 several
                                                                                                      Less than
Generation      Co.,                                                   liability                                  No    No
                                                                                                      15 years
Ltd.                                                                   guarante
                                                                       e

Xiao          County Apr. 23, 2018;    8,052.00 Jun. 26,      7,378.00 Joint and                      Less than
                                                                                                                  No    No
Yiguang         New Apr. 1, 2021                  2018                 several                        15 years


                                                                                                                              102
                                                                                                  Sungrow Power Supply Co., Ltd.
                                                                                    2021 Annual Report (Concise Version in English)

Energy       Power                                                      liability
Generation     Co.,                                                     guarante
Ltd.                                                                    e

Weishan Guoyang Nov. 22, 2019;                     Sep. 28,             Joint and
New Energy Power Apr. 1, 2021          27,500.00 2019         27,000.00 several
                                                                                                       Less than
Generation     Co.,                                                     liability                                  No    No
                                                                                                       15 years
Ltd.                                                                    guarante
                                                                        e

Tuanfeng              Nov. 17, 2020                Jun. 11,             Joint and
Shengyang      New                     55,000.00 2021         51,134.00 several
                                                                                                       Less than
Energy       Power                                                      liability                                  No    No
                                                                                                       15 years
Generation     Co.,                                                     guarante
Ltd.                                                                    e

Shenmu Yuanhang Nov. 17, 2020                      Apr. 17,    9,583.00 Joint and
New          Energy                    12,000.00 2021                   several
                                                                                                       Less than
Development Co.,                                                        liability                                  No    No
                                                                                                       15 years
Ltd.                                                                    guarante
                                                                        e

Sungrow               Nov. 17, 2020                May 31,              Joint and
Renewables                             120,000.0 2021         120,000.0 several
                                                                                                       Less than
Development Co.,                              0                       0 liability                                  No    No
                                                                                                       2 years
Ltd.                                                                    guarante
                                                                        e

Sungrow               April 16, 2021               Jul. 29,             Joint and
Renewables                             150,000.0 2021         121,000.0 several
                                                                                                       Less than
Development Co.,                              0                       0 liability                                  No    No
                                                                                                       2 years
Ltd.                                                                    guarante
                                                                        e

Sungrow               May 18, 2021
Renewables                             250,000.0                                                       Less than
                                                                                                                   No    No
Development Co.,                              0                                                        2 years
Ltd.

Zongyang              May 18, 2021                 Jun. 30,   16,200.00 Joint and
Chenyang New                           16,200.00 2021                   several
                                                                                                       Less than
Energy Power                                                            liability                                  No    No
                                                                                                       15 years
Generation Co.,                                                         guarante
Ltd.                                                                    e

SUNGROW               Aug. 20, 2020
POWER                                  21,005.31
(VIETNAM)
LIMITED
COMPANY


                                                                                                                               103
                                                                                                          Sungrow Power Supply Co., Ltd.
                                                                                            2021 Annual Report (Concise Version in English)

                                                  Subsidiary's Guarantee for Subsidiaries

                        Date of
                                                                                                                                  Guarante
                     Disclosure of                  Actual     Actual                                 Counter-
                                      Amount                              Type of                                                   e for
                     Announcemen                    Date of   Amount                   Collateral Guarante Guarantee Fulfille
 Guarantee Object                     Guarantee                           Guarante                                                Related
                      ts Related to                Guarante      of                        (if any)      e       Period   d Y/N
                                         d                                    e                                                    Party
                      the Amount                       e      Guarantee                               (if any)
                                                                                                                                    Y/N
                      Guaranteed

                                                                          General
Sungrow USA                                       Apr. 25,                            Less than 5
                     Apr. 24, 2020     15,445.9                15,445.9 guarante                                          No      No
Corporation                                       2020                                years
                                                                          e

SUNGROW DO
BRASIL
REPRESENTACA                                                              Joint and
O COMERCIAL,                                                              several
                                                  Apr. 1,                             Less than 7
INSTALACAO E         Mar. 31, 2021     8,449.79                8,449.79 liability                                         No      No
                                                  2021                                years
MANUTENCAO                                                                guarante
DE                                                                        e
EQUIPAMENTOS
LTDA

Five projects in
Australia owned by                                Septembe                General     Before
                     September 29,
Sungrow                                 9,365.2 r 30,           9,365.2 guarante December                                 No      No
                     2021
Investment &                                      2021                    e           31, 2022
Holdings Pte. Ltd

                                                                                      Less than
                                                                                      two years
                                                                                      from the
                                                  Decembe                 General
Sungrow Power        December 01,                                                     effective
                                      14,714.05 r 02,         14,714.05 guarante                                          No      No
Australia Pty Ltd    2021                                                             date of the
                                                  2021                    e
                                                                                      Letter of
                                                                                      Commitme
                                                                                      nt

                                                                          Joint and Five years
                                                  Decembe                 several     from the
Sungrow Ibérica     December 01,
                                       3,309.16 r 02,          3,309.16 liability     date of the                         No      No
S.A.U.               2021
                                                  2021                    guarante Letter of
                                                                          e           Guarantee




                                                                                                                                       104
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

3. Cash Assets Management Entrusted to Others

(1) Entrusted financial management

√ Applicable □ Not Applicable
Overview of entrusted financial management in the reporting period
                                                                                                                      (in 10KRMB)

                                                         Amount of
                             Source of funds for                                                                  Impairment provision
                                                         entrusted                         Overdue amount to be
           Type              entrusted financial                         Undue balance                            for overdue amount to
                                                         financial                              collected
                                  management                                                                          be collected
                                                      management

Financial products issued
                                  Funds raised                 250,000         250,000                       0                         0
by banks

Financial products issued   Funds owned by the
                                                               497,500                0                      0                         0
by banks                           Company

Financial products issued   Funds owned by the
                                                                 6,000             3,000                     0                         0
by securities traders              Company

Financial products issued   Funds owned by the
                                                                 1,048                0                      0                         0
by trust companies                 Company

Total                                                          754,548         253,000                       0                         0

Details of high-risk entrusted financial management with large amount, low security, or low flowability
□ Applicable √ Not Applicable
Expected inability to recover the principal of entrusted financial management or other circumstances that may lead to impairment
□ Applicable √ Not Applicable


(2) Entrusted loans

□ Applicable √ Not Applicable
There were no entrusted loans in the reporting period.


4. Other major contracts

□ Applicable √ Not Applicable
There were no other major contracts in the reporting period.


XVI. Explanation on Other Significant Matters

□ Applicable √ Not Applicable
There were no other significant matters to be explained in the reporting period.




                                                                                                                                     105
                                                                        Sungrow Power Supply Co., Ltd.
                                                          2021 Annual Report (Concise Version in English)

XVII. Significant Matters of the Company's Subsidiaries

□ Applicable √ Not Applicable




                                                                                                     106
                                                                                                         Sungrow Power Supply Co., Ltd.
                                                                                           2021 Annual Report (Concise Version in English)




  Section VII Changes in Shares and Information about Shareholders

I.      Changes in Share Capital

1. Changes in Shares

                                                                                                                              (in Shares)

                              Before the change                      Changes in the period (+, -)                    After the change

                                                                            Capitalized
                                                          New                  from
                             Quantity       Percentage              Bonus                   Others    Sub-total    Quantity      Percentage
                                                         issuance            common
                                                                             reserve

I. Shares subject to
conditional                 372,041,949       25.53% 28,418,634                           -11,387,000 17,031,634   389,073,583     26.20%
restriction(s)

1. Shares held by the
State

2. Shares held by
state-owned                             0       0.00% 1,171,875                                        1,171,875     1,171,875       0.08%
corporation

3. Shares held by other
                            372,041,949       25.53% 12,632,812                           -11,387,000 1,245,812    373,287,761     25.13%
domestic shareholders

Incl. shares held by
                                        0       0.00% 9,585,937                                        9,585,937     9,585,937       0.65%
domestic enterprise

Shares held by
domestic natural            372,041,949       25.53% 3,046,875                            -11,387,000 -8,340,125   363,701,824     24.49%
person

4. Shares held by
                                        0       0.00% 14,613,947                                     14,613,947     14,613,947       0.98%
foreign capital

Incl. shares held by
                                        0       0.00% 14,613,947                                     14,613,947     14,613,947       0.98%
overseas enterprise

Shares held by
overseas natural person

II. Shares subject to no
                           1,085,194,901      74.47%                                      10,947,500 10,947,500 1,096,142,401      73.80%
restrictions

1. A-shares                1,085,194,901      74.47%                                      10,947,500 10,947,500 1,096,142,401      73.80%

2. B-shares



                                                                                                                                        107
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

3. H-shares

4. Others

III. Total               1,457,236,850    100.00% 28,418,634                           -439,500 27,979,134 1,485,215,984       100.00%

Reasons for share changes
√ Applicable □ Not Applicable
1). On October 29, 2020, the Company held the fourth meeting of the fourth Board of Directors and the fourth meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Zhu Hui, Yang Guoqiang, Zhang Tao, Wang Xinzhong, Dong Yugang, Liu
Ming, Yu Chuandian, Xing Zhen, Tian Hao, Hu Di, Tu Fang, WARDZACHARIAH HUSSEIN, and KIM MYUNGKWAN, resigned,
according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not
unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 297,500 shares. The
Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited on January 19, 2021, and the Company’s total share capital changed from 1,457,236,850 shares to 1,456,939,350 shares.
2). On April 26, 2021, the Company held the eighth meeting of the fourth Board of Directors and the seventh meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Wan Rubin, Zhou Ping, Zhan Zhihai, Zhang Jianzhou, Jiang Wenjun, Xie
Feng, and Yao Li, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that
were granted to them but not unlocked should be bought back and cancelled by the Company. Since the individual annual
performance of the Company’s original incentive objects, Li Tao and Shang Xiaozhong, accounted for an unlocking percentage of
50%, according to the relevant provisions of the Company's equity incentive plan, some of the restricted shares that were granted to
them but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 142,000
shares. The Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited on July 27, 2021, and the Company’s total share capital changed from 1,456,939,350 shares to 1,456,797,350
shares.
3). Subject to the Approval on the Registration of Sungrow Power Supply Co., Ltd. to Issue Shares to Specific Objects (CSRC-XK
[2021] No. 2734) by the China Securities Regulatory Commission, the Company made non-public A-share offering of 28,418,634
shares to 18 specific objects in 2021, and completed the listing on October 22, 2021. The Company’s total share capital changed
from 1,456,797,350 shares to 1,485,215,984 shares.


Approvals for share changes
√ Applicable □ Not Applicable
Subject to the Approval on the Registration of Sungrow Power Supply Co., Ltd. to Issue Shares to Specific Objects (CSRC-XK [2021]
No. 2734) by the China Securities Regulatory Commission, the Company made non-public A-share offering of 28,418,634 shares to
18 specific objects in 2021, and completed the listing on October 22, 2021. This issuance increased the registered capital by RMB
28,418,634 with an increase of 28,418,634 shares. The Company’s total share capital changed from 1,456,797,350 shares to
1,485,215,984 shares.


Share transfers
□ Applicable √ Not Applicable
The impact of changes in shares on financial indicators such as basic earnings per share, diluted earnings per share, net assets per
share attributable to common shareholders in the last year and the last period
√ Applicable □ Not Applicable


                                                                                                                                       108
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

During the reporting period, due to the completion of the Company's non-public offering project in 2021, the total share capital
increased, resulting in further dilution of the Company's earnings per share, net assets per share attributable to common shareholders
and other financial indicators.
Other contents the Company considers necessary or required by the securities regulatory authorities to disclose
□ Applicable √ Not Applicable


2. Changes in Restricted Shares

√ Applicable □ Not Applicable
                                                                                                                              (in Shares)

                                      Opening     Increased in Unlocked in      Closing
                                                                                                                       Estimated date of
            Shareholder              restricted     current     current        restricted     Reason for restriction
                                                                                                                       unlocking
                                       shares       period      period          shares

                                                                                                                       25% of lock-up
                                                                                                                       shares at the end
                                                                                            Lock-up of executives’
Cao Renxian                         338,256,000                               338,256,000                              of last year is
                                                                                            shares
                                                                                                                       released every
                                                                                                                       year

                                                                                                                       25% of lock-up
                                                                                            Lock-up of executives’    shares at the end
Zheng Guibiao                        10,932,270                   1,125,000     9,807,270 shares, equity incentive     of last year is
                                                                                            restriction                released every
                                                                                                                       year

                                                                                                                       25% of lock-up
                                                                                            Lock-up of executives’    shares at the end
Zhao Wei                              6,057,000        90,000        90,000     6,057,000 shares, equity incentive     of last year is
                                                                                            restriction                released every
                                                                                                                       year

                                                                                                                       25% of lock-up
                                                                                            Lock-up of executives’    shares at the end
Li Guojun                             1,110,000       110,000       110,000     1,110,000 shares, equity incentive     of last year is
                                                                                            restriction                released every
                                                                                                                       year

                                                                                                                       25% of lock-up
                                                                                            Lock-up of executives’    shares at the end
Gu Yilei                                450,000      165,000        165,000      450,000 shares, equity incentive      of last year is
                                                                                            restriction                released every
                                                                                                                       year

                                                                                                                       25% of lock-up
                                                                                            Lock-up of executives’    shares at the end
Zhang Xucheng                           150,000        50,000        50,000      150,000
                                                                                            shares                     of last year is
                                                                                                                       released every


                                                                                                                                         109
                                                                Sungrow Power Supply Co., Ltd.
                                                  2021 Annual Report (Concise Version in English)

                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Chen Zhiqiang   375,000   140,000   140,000   375,000 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Wu Jiamao       375,000   140,000   140,000   375,000 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Cheng Cheng     375,000   140,000   140,000   375,000 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Xie Xiaoyong    300,000   115,000   115,000   300,000 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Deng Dejun      369,679   140,000   140,000   369,679 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Zhang Youquan   225,000    90,000    90,000   225,000 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year

                                                                                  25% of lock-up
                                                                                  shares at the end
                                                        Lock-up of executives’
Li Shun          25,000    18,750    25,000    18,750                             of last year is
                                                        shares
                                                                                  released every
                                                                                  year

                                                                                  25% of lock-up
                                                        Lock-up of executives’   shares at the end
Peng Chaocai    105,000    18,750    45,000    78,750 shares, equity incentive    of last year is
                                                        restriction               released every
                                                                                  year




                                                                                                    110
                                                                                              Sungrow Power Supply Co., Ltd.
                                                                                2021 Annual Report (Concise Version in English)

Other incentive objects                                                                Equity incentive
                                     12,937,000               10,229,500   2,707,500                              September 2022
                                                                                       restriction

Shanghai Greenwoods Asset                                                              Non-public offering of
Management Co. Ltd. -                                                                  shares with a
                                                   937,500                  937,500                               April 22, 2022
Greenwoods Jingtai Fenshou                                                             commitment to lock for 6
Private Securities Investment Fund                                                     months

Shanghai Greenwoods Asset                                                              Non-public offering of
Management Co. Ltd. - Fengshou                                                         shares with a
                                                   937,500                  937,500                               April 22, 2022
No. 3 Private Equity Fund                                                              commitment to lock for 6
                                                                                       months

Huatai Financial Holdings (Hong                                                        Non-public offering of
Kong) Limited                                                                          shares with a
                                                   937,500                  937,500                               April 22, 2022
                                                                                       commitment to lock for 6
                                                                                       months

                                                                                       Non-public offering of
JPMorgan Chase Bank, National                                                          shares with a
                                                  1,171,875                1,171,875                              April 22, 2022
Association                                                                            commitment to lock for 6
                                                                                       months

Dajia Asset Management Co., Ltd.                                                       Non-public offering of
- Dajia Asset-ICBC-DaJia                                                               shares with a
Asset-Blue Chip Selected No. 5                    1,562,500                1,562,500 commitment to lock for 6 April 22, 2022
Collective Asset Management                                                            months
Product

Yunnan Energy Investment Co.,                                                          Non-public offering of
Ltd.                                                                                   shares with a
                                                  1,171,875                1,171,875                              April 22, 2022
                                                                                       commitment to lock for 6
                                                                                       months

                                                                                       Non-public offering of
                                                                                       shares with a
Goldman Sachs&Co.LLC                              1,234,375                1,234,375                              April 22, 2022
                                                                                       commitment to lock for 6
                                                                                       months

                                                                                       Non-public offering of
The Hongkong and Shanghai                                                              shares with a
                                                   937,500                  937,500                               April 22, 2022
Banking Corporation Limited                                                            commitment to lock for 6
                                                                                       months

                                                                                       Non-public offering of
                                                                                       shares with a
UBS AG                                            6,738,948                6,738,948                              April 22, 2022
                                                                                       commitment to lock for 6
                                                                                       months

                                                                                       Non-public offering of
J.P.Morgan Securities PLC                         1,054,687                1,054,687                              April 22, 2022
                                                                                       shares with a


                                                                                                                               111
                                                                                           Sungrow Power Supply Co., Ltd.
                                                                             2021 Annual Report (Concise Version in English)

                                                                                    commitment to lock for 6
                                                                                    months

                                                                                    Non-public offering of
                                                                                    shares with a
Gao Jinhua                                       1,171,875              1,171,875                              April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

Beijing XHTH Asset Management                                                       Non-public offering of
(Limited Partnership) - Xinhong                                                     shares with a
                                                  937,500                937,500                               April 22, 2022
Xinghong No. 2 Private Securities                                                   commitment to lock for 6
Investment Fund                                                                     months

                                                                                    Non-public offering of
                                                                                    shares with a
WT Asset Management Limited                      1,562,500              1,562,500                              April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

Runhui Investment Management                                                        Non-public offering of
Hong Kong Co., Ltd.                                                                 shares with a
                                                  976,562                976,562                               April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

Jinan Jiangshan Investment                                                          Non-public offering of
Partnership (Limited Partnership)                                                   shares with a
                                                 1,953,125              1,953,125                              April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

Caitong Fund Management Co.,                                                        Non-public offering of
Ltd.                                                                                shares with a
                                                  960,937                960,937                               April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

                                                                                    Non-public offering of
                                                                                    shares with a
Zhong Ge                                         1,875,000              1,875,000                              April 22, 2022
                                                                                    commitment to lock for 6
                                                                                    months

                                                                                    Non-public offering of
Lord Abbett China Asset                                                             shares with a
                                                 2,296,875              2,296,875                              April 22, 2022
Management Co., Ltd.                                                                commitment to lock for 6
                                                                                    months

Total                               372,041,949 29,636,134 12,604,500 389,073,583               --                    --


II. Issuance and Listing of Securities

1.      Securities (excl. preference shares) issued during the reporting period

√ Applicable □ Not Applicable



                                                                                                                            112
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

     Shares and                    Issue price                               Amount
                     Date of                       Issuance       Date of                  Due date of      Disclosure         Date of
     derivative                    (or interest                              approved
                     issuance                      amount         listing                  transaction       reference        disclosure
     securities                       rate)                                  for listing

Shares

Non-public        October 13,                                  October 22,                                                   October 19,
                                  128.00          28,418,634                 28,418,634                  www.cninfo.com.cn
offering          2021                                         2021                                                          2021

Convertible corporate bonds, convertible corporate bonds with warrants, corporate bonds

Other derivative securities

Notes on the issuance of securities (excluding preference shares) in the reporting period
Subject to the Approval on the Registration of Sungrow Power Supply Co., Ltd. to Issue Shares to Specific Objects (CSRC-XK
[2021] No. 2734) by the China Securities Regulatory Commission, the Company made non-public A-share offering of 28,418,634
shares to 18 specific objects in 2021, and completed the listing on October 22, 2021. This issuance increased the registered capital
by RMB 28,418,634 with an increase of 28,418,634 shares. The Company’s total share capital changed from 1,456,797,350 shares
to 1,485,215,984 shares.


2.     Changes in the Company’s total shares and shareholder structure, and changes in the Company’s
        asset and liability structure

√ Applicable □ Not Applicable
1). On October 29, 2020, the Company held the fourth meeting of the fourth Board of Directors and the fourth meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Zhu Hui, Yang Guoqiang, Zhang Tao, Wang Xinzhong, Dong Yugang, Liu
Ming, Yu Chuandian, Xing Zhen, Tian Hao, Hu Di, Tu Fang, WARDZACHARIAH HUSSEIN, and KIM MYUNGKWAN, resigned,
according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that were granted to them but not
unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 297,500 shares. The
Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited on January 19, 2021, and the Company’s total share capital changed from 1,457,236,850 shares to 1,456,939,350 shares.
2). On April 26, 2021, the Company held the eighth meeting of the fourth Board of Directors and the seventh meeting of the fourth
Board of Supervisors, at which the Proposal on the Buyback and Cancellation of Some Restricted Shares was reviewed and approved.
Since some of the Company’s original incentive objects, Wan Rubin, Zhou Ping, Zhan Zhihai, Zhang Jianzhou, Jiang Wenjun, Xie
Feng, and Yao Li, resigned, according to the relevant provisions of the Company's equity incentive plan, all the restricted shares that
were granted to them but not unlocked should be bought back and cancelled by the Company. Since the individual annual
performance of the Company’s original incentive objects, Li Tao and Shang Xiaozhong, accounted for an unlocking percentage of
50%, according to the relevant provisions of the Company's equity incentive plan, some of the restricted shares that were granted to
them but not unlocked should be bought back and cancelled by the Company, with the total buyback quantity amounting to 142,000
shares. The Company completed the buyback and cancellation at the Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited on July 27, 2021, and the Company’s total share capital changed from 1,456,939,350 shares to 1,456,797,350
shares.
3). Subject to the Approval on the Registration of Sungrow Power Supply Co., Ltd. to Issue Shares to Specific Objects (CSRC-XK
[2021] No. 2734) by the China Securities Regulatory Commission, the Company made non-public A-share offering of 28,418,634
shares to 18 specific objects in 2021, and completed the listing on October 22, 2021. The Company’s total share capital changed
from 1,456,797,350 shares to 1,485,215,984 shares.



                                                                                                                                     113
                                                                                                                Sungrow Power Supply Co., Ltd.
                                                                                                  2021 Annual Report (Concise Version in English)

3.     Existing employees’ shares

□ Applicable √ Not Applicable


III. Shareholders and Actual Controllers

1.     Total number of shareholders and share holdings

                                                                                                                                         (in Shares)

                                                                                            Total number of
                                                                                            preference
                                 Total number of           Total number of
                                                                                            shareholders
                                 ordinary                  preference
Total number                                                                                with restored
                                 shareholders at           shareholders                                                 Total number of
of ordinary                                                                                 voting rights at
                                 the end of the            with restored                                                shareholders
shareholders at                                                                             the end of the
                     134,932 previous month        140,181 voting rights at             0                             0 holding special                0
the end of the                                                                              previous month
                                 before the                the end of the                                               voting shares (if
reporting                                                                                   before the
                                 disclosure date           reporting period                                             any)
period                                                                                      disclosure date
                                 of the annual             (if any) (see Note
                                                                                            of the annual
                                 report                    9)
                                                                                            report (if any)
                                                                                            (see Note 9)

                         Shareholders with a shareholding of over 5% or shareholdings of the top ten shareholders

                                                                  Total     shares                                               Pledged, marked,
                                                                                      Changes in
                                                                  held     at   the                                                         or frozen
                                    Nature of                                               the     Non-tradable   Tradable
     Name of shareholder                            Percentage end         of   the
                                   shareholder                                        reporting      shares held shares held Share
                                                                  reporting                                                                 Quantity
                                                                                        period                                  status
                                                                  period

                                 Domestic
Cao Renxian                                             30.37%     451,008,000                       338,256,000 112,752,000 Pledged 9,340,000
                                 natural person

Hong         Kong   Securities
                                 Overseas legal
Clearing            Company                             10.92%     162,246,873                                  0 162,246,873
                                 person
Limited

Luzhou               Huizhuo
                                 Domestic
Enterprise      Management
                                 non-state-owned          3.69%      54,866,201                                 0 54,866,201
Partnership          (Limited
                                 legal person
Partnership)

Shanghai              Pudong
Development Bank Co.,
Ltd.     -    GF    High-End
                                 Other                    0.83%      12,369,049                                 0 12,369,049
Manufacturing          Equity
Sponsored           Securities
Investment Fund



                                                                                                                                                 114
                                                                                                             Sungrow Power Supply Co., Ltd.
                                                                                               2021 Annual Report (Concise Version in English)

China Construction Bank
Corporation           -         GF
Technology                Pioneer Other                        0.82%     12,158,710                           0 12,158,710
Hybrid               Securities
Investment Fund

Zheng Guibiao                         Domestic
                                                               0.81%     11,976,360                  9,807,270    2,169,090
                                      natural person

Chinalink Asia Holdings
                                                               0.79%     11,707,305                           0 11,707,305
Limited

National Social Security
                                      Other                    0.72%     10,673,733                           0 10,673,733
Fund Portfolio 416

China Minsheng Bank
Co., Ltd. - GF Industry
Selected           Three-Year Other                            0.67%       9,995,202                          0   9,995,202
Hybrid               Securities
Investment Fund

Industrial                     and
Commercial           Bank        of
China      Limited        -     GF
                                      Other                    0.64%       9,434,499                          0   9,434,499
Double Engine Upgraded
Hybrid               Securities
Investment Fund

Strategic     investors          or
general      legal        persons
becoming      the     top       10
                                      -
shareholders         due         to
placement of new shares
(if any) (refer to Note 4)

Relations     between           the Mr. Cao Renxian, the controlling shareholder and actual controller of the Company, holds 10.44% equity
above-mentioned                       of Luzhou Huizhuo Enterprise Management Partnership (Limited Partnership). Apart from the
shareholders or actions in shareholders’ relations specified as above, the Company is not aware of any other relations between
concert                               shareholders, and does not know whether they are persons acting in concert as stipulated in the
                                      Administrative Measures for the Acquisition of Listed Companies.

Notes         on              above
shareholders         who        are
involved                         in
                                      -
delegating/delegated
voting rights and waiving
of voting rights

Special        notes            on
                                      -
dedicated             buy-back



                                                                                                                                          115
                                                                                                             Sungrow Power Supply Co., Ltd.
                                                                                               2021 Annual Report (Concise Version in English)

accounts held by top 10
shareholders       (if    any)
(refer to Note 10)

                                        Shares held by top 10 shareholders subject to no restrictions on trading

                                                        Unrestricted shares held at the                       Share Details
                   Shareholder
                                                          end of the reporting period                 Type                       Quantity

Hong Kong Securities Clearing Company
                                                                           162,246,873 A-share                                       162,246,873
Limited

Cao Renxian                                                                112,752,000 A-share                                       112,752,000

Luzhou Huizhuo Enterprise Management
                                                                             54,866,201 A-share                                       54,866,201
Partnership (Limited Partnership)

Shanghai Pudong Development Bank Co.,
Ltd. - GF High-End Manufacturing Equity                                      12,369,049 A-share                                       12,369,049
Sponsored Securities Investment Fund

China Construction Bank Corporation - GF
Technology       Pioneer    Hybrid         Securities                        12,158,710 A-share                                       12,158,710
Investment Fund

Chinalink Asia Holdings Limited                                              11,707,305 A-share                                       11,707,305

National Social Security Fund Portfolio 416                                  10,673,733 A-share                                       10,673,733

China Minsheng Bank Co., Ltd. - GF
Industry       Selected    Three-Year        Hybrid                           9,995,202 A-share                                        9,995,202
Securities Investment Fund

Industrial and Commercial Bank of China
Limited - GF Double Engine Upgraded                                           9,434,499 A-share                                        9,434,499
Hybrid Securities Investment Fund

Bank       of      China         Co.,      Ltd.     -
Huatai-PineBridge          CSI     PV       Industry
                                                                              8,722,380 A-share                                        8,722,380
Open-Ended Index Securities Investment
Fund

Relations between top 10 shareholders of Mr. Cao Renxian, the controlling shareholder and actual controller of the Company,
unrestricted circulating shares, relations holds 10.44% equity of Luzhou Huizhuo Enterprise Management Partnership (Limited
between top 10 shareholders of unrestricted Partnership). Apart from the shareholders’ relations specified as above, the Company is
circulating shares and top 10 shareholders, not aware of any other relations between shareholders, and does not know whether they
or actions in concert                                   are persons acting in concert as stipulated in the Administrative Measures for the
                                                        Acquisition of Listed Companies.

Whether the Company has made arrangements for different voting rights
□ Applicable √ Not Applicable
Whether the top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions
made the buy-back transaction as agreed in the reporting period
□ Yes √ No

                                                                                                                                             116
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)

The top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares subject to no trading restrictions did not
make the buy-back transaction as agreed in the reporting period.


2.   Controlling Shareholders of the Company

Nature of controlling shareholder: Natural person
Type of controlling shareholder: Natural person

                                                                                                   In possession of right of abode in
          Name of controlling shareholder                             Nationality
                                                                                                            other countries

                    Cao Renxian                                        Chinese                                    No

                                                       Mr. Cao Renxian has been the Chairman and President of the Company for the
Main occupation and title
                                                       past 5 years

Domestic/overseas listed companies
                                                       Mr. Cao Renxian does not control other domestic/overseas listed companies
controlled/vested in the past 10 years

Changes of controlling shareholder during the reporting period
□ Applicable √ Not Applicable
The controlling shareholder of the Company did not change in the reporting period.


3.   Actual Controllers and Persons Acting In Concert

Nature of actual controller: Domestic natural person
Type of actual controller: Natural person

                                                        Relationship with actual                    In possession of right of abode in
             Name of actual controller                                               Nationality
                                                                controller                                    other countries

                    Cao Renxian                                  Himself              Chinese                       No

                                                       Mr. Cao Renxian has been the Chairman and President of the Company for the
Main occupation and title
                                                       past 5 years

Domestic/overseas listed companies
                                                       Mr. Cao Renxian does not control other domestic/overseas listed companies
controlled/vested in the past 10 years

Change of actual controller during the reporting period
□ Applicable √ Not Applicable
The actual controller of the Company did not change during the reporting period.
Block diagram of the property rights and control relationship between the Company and the actual controller




                                                                                                                                       117
                                                                                               Sungrow Power Supply Co., Ltd.
                                                                                 2021 Annual Report (Concise Version in English)




                           中文                                                       English


     曹仁贤                                              Cao Renxian


     通过配偶苏蕾                                        Via spouse Su Lei

     泸州汇卓企业管理合伙企业(有限合伙)
                                                         Luzhou Huizhuo Enterprise Management Partnership (Limited
                                                         Partnership)


     阳光电源股份有限公司                                Sungrow Power Supply Co., Ltd.




The actual controller controls the Company through trust or other asset management methods
□ Applicable √ Not Applicable


4.    The cumulative quantity of pledged shares of the Company’s controlling shareholder or the largest
       shareholder and its persons acting in concert account for more than 80% of the Company’s shares
       held by them

□ Applicable √ Not Applicable


5.    Other legal person shareholders holding more than 10% of the shares

□ Applicable √ Not Applicable




                                                                                                                            118
                                                                                  Sungrow Power Supply Co., Ltd.
                                                                    2021 Annual Report (Concise Version in English)

6.   Share restrictions and reductions of controlling shareholder, actual controller, restructuring parties,
      and other undertaking entities

□ Applicable √ Not Applicable


IV. Specific implementation of share buy-back during the reporting period

Progress of share buy-back
□ Applicable √ Not Applicable
Progress of buy-back share reduction via centralized bidding
□ Applicable √ Not Applicable




                                                                                                               119
                                                                                       Sungrow Power Supply Co., Ltd.
                                                                         2021 Annual Report (Concise Version in English)




                                    Section VIII Preference shares

□ Applicable √ Not Applicable
No preference shares exist in the Company during the reporting period.




                                                                                                                    120
                                                                   Sungrow Power Supply Co., Ltd.
                                                     2021 Annual Report (Concise Version in English)




                                  Section IX Bonds

□ Applicable √ Not Applicable




                                                                                                121
                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                     2021 Annual Report (Concise Version in English)




                                          Section X Financial Reports

I.   Audit Report

Type of Audit Opinion                                               Standard unqualified opinion

Audit Report Signed on                                              April 20, 2022

Auditing Firm                                                       RSM China (Special General Partnership)

Audit Report Number                                                 RSM-AR [022] No. 230Z0700

Name of CPAs                                                        Wan Yunlong, Jiang Wei, Yao Na

                                                            Audit Report
I. Audit Opinion

We have audited the financial statements of Sungrow Power Supply Co., Ltd. (hereinafter referred to as Sungrow), including the
Consolidated Balance Sheet and Balance Sheet of Parent Company as at December 31, 2021, the Consolidated Income Statement and
Income Statement of Parent Company in 2021, and the Consolidated Statement of Cash Flows and Statement of Cash Flows of
Parent Company, Consolidated Statement of Changes in Equity and Statement of Changes in Equity of Parent Company, as well as
Notes to the relevant financial statements.

In our opinion, the financial statements as attached were prepared in accordance with the Accounting Standards for Business
Enterprises in all material aspects, which fairly reflect the consolidated financial position of Sungrow and the parent company as at
December 31, 2021, as well as the consolidated operating results and cash flows of Sungrow and the parent company in 2021.

II. Ground for the Audit Opinion

The audit has been performed in accordance with the Auditing Standards for China Certified Accountants. Our responsibilities under
these standards are further explained in the part CPA's Responsibilities for the Audit of Financial Statements in the audit report.
Abiding by the Code of Conducts for China Certified Public Accountants, we have operated independently from Sungrow, and
fulfilled other responsibilities in professional ethics. We believe that the audit evidence we obtained is sufficient and appropriate to
provide a ground for our audit opinion.

III. Key Audit Matters

Key audit matters are those we consider to be the most important to the audit of financial statements of the current period based on
our professional judgment. Such matters are addressed in the context that the financial statements are audited as a whole with the
audit opinion issued. We do not express separate opinions on these matters.

A. Recoverability of accounts receivable

1. Description of the matter

As stated in Notes “III. 10 Financial Instruments” and “V. 4 Accounts Receivable”, the book value of accounts receivable in
Sungrow’s consolidated financial statements was RMB 8,748 million, of which bad debt provision was RMB 941 million. The
Company determined the bad debt provision according to the recoverability of accounts receivable. To determine the book value of
the accounts receivable at the end of the period, the Sungrow management team (hereinafter referred to as the Management) needs to
identify the items that have been impaired and the objective evidences, and evaluate the cash flows that are expected in the future and
determine their present value, which involves the Management’s use of significant accounting estimates and judgments. Moreover,

                                                                                                                                    122
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

the recoverability of accounts receivable is vital to the financial statements; therefore, we have identified the recoverability of
accounts receivable as a key audit matter.

2. Audit response

The procedures we performed mainly include the following:

(1) Evaluate and test the rationality of design and operational effectiveness of Sungrow's credit policy and internal controls related to
accounts receivable management.

(2) Analyze the rationality of accounting estimates for bad debt provision for Sungrow's accounts receivable, including the basis for
determining the combination of accounts receivable and the judgment on separate bad debts provision.

(3) After considering the actual amount of bad debts of similar receivables and the situations in the past, and in combination with
customer credit, market condition, and other factors, we evaluated the appropriateness of approaches used by the Management which
divide the receivables into several groups for impairment assessment. For receivables that had been accrued for bad debt provision
individually, we verified the foundations used by the Management to evaluate the expected cash flow; for receivables that had been
accrued for bad debt provision according to the characteristics of credit risk combination, we used expected credit loss rate and aging
analysis to test the rationality and accuracy of the Management's provision for bad debts.

(4) Evaluate the recoverability of accounts receivable in large amount, with special attention paid to those with an aging of more than
one year and those covered in lawsuits filed by Sungrow (for selected samples). Through the investigation of customer background,
operating status, litigation situation and etc., we interviewed with lawyers and sales personnel, inspected the letters of confirmation
and collections after the period, in order to evaluate the rationality and adequacy of the Management’s bad debts provision.

B. Revenue recognition

As stated in Notes “3. 26 Principles and Measurements for Revenue Recognition” and “V. 43 Operating Income and Operating
Costs”, Sungrow recognized an operating revenue of RMB 24.137 billion, of which the revenue from power station construction
business accounted for about 40.10% of the total.

Revenue from the Company's power station construction contracts were recognized according to the performance progress, except
those for which the performance progress couldn’t be reasonably determined. The performance progress was determined based on
the ratio of the contract cost actually incurred in the estimated total contract cost, and was continuously evaluated and revised during
the contract execution. Since operating income is one of the Company's key metrics, there might be an inherent risk that the
Management manipulate revenue recognition in order to achieve specific goals or expectations; therefore, we have identified revenue
recognition as a key audit matter.

2. Audit response

The procedures we used mainly include the following:

(1) Evaluate and test the design and operational effectiveness of internal controls related to Sungrow's revenue from product sales
and power station construction.

(2) Verify revenue growth and changes in gross profit in an analytic way.

(3) For revenue from product sales, inspect samples of sales contracts, sales invoices, logistics documents, customer receipts,
customs declarations and other relevant materials to evaluate the authenticity of revenue recognition; for sales revenue recognized
around the date of the balance sheet, run cut-off test and verify supporting documents such as customer receipts, thereby evaluating
the completeness of revenue recognition.

(4) For revenue from power station construction, compare and analyze the actual total cost of the completed project samples and the
total contract cost estimated by the Management before project completion, and evaluate the Management's experience and capacity

                                                                                                                                     123
                                                                                                     Sungrow Power Supply Co., Ltd.
                                                                                       2021 Annual Report (Concise Version in English)

in making the accounting estimation; obtain contracts of major construction projects to verify the total contract revenue, review key
contract terms, and confirm the correctness of contract. For major contracts containing power generation commitments, review the
basis for determining the power generation estimation and the accuracy of revenue recognition. For the actual cost of major projects,
check the supporting documents such as contracts, invoices, equipment receipts, progress confirmation documents, and analyze the
gross profit rate of the project, thereby evaluating the authenticity and accuracy of the actual cost accounting. Pick several projects
and visit the project sites to determine whether the site status matches the progress recorded.
IV. Other information

Sungrow’s management team is responsible for other information. Other information includes those covered in Sungrow's 2021
annual report, but does not include the financial statements and our audit report.

The audit opinion on financial statements does not cover other information, nor do we make assurance conclusions on other
information in any form.

As it relates to the audit of financial statements, our responsibility is to read other information and identify whether there are material
inconsistence or errors between other information and the financial statements or the situation we learned during the audit.

Based on what we have done, if we are certain that material errors exist in other information, we should report. In this case, there is
nothing to be reported.

V. Management’s and Governance’s Responsibilities for the Financial Statements

The Sungrow management team is responsible for preparing and presenting these financial statements fairly in accordance with the
Accounting Standards for Business Enterprises, and for designing, implementing, and maintaining necessary internal controls so that
the financial statements are free from material misstatements due to fraud or error.

When preparing the financial statements, the management team is responsible for evaluating Sungrow’s ability to continue as a going
concern, disclosing matters related to going concerns, and applying going concern assumptions, unless the management team is
arranging liquidation, termination, or options of no other realistic alternatives for Sungrow.

Sungrow's governance team is responsible for overseeing Sungrow's financial reporting process.

VI. CPA's Responsibilities for the Audit of the Financial Statements

Our objective is to obtain reasonable assurance on that the financial statements as a whole are free from material misstatement due to
fraud or error, and to issue an auditor report containing our audit opinion. A reasonable assurance is a high level of assurance,
however, there is no assurance that an audit performed in accordance with Auditing Standards can always identify a material
misstatement in existence. Misstatements may result from fraud or error, and are generally considered material if, individually or in
aggregate, the misstatements could be reasonably expected to influence the economic decisions made by users of the financial
statements based on the content of the financial statements.

In the process of conducting the audit in accordance with Auditing Standards, we exercise professional judgment and maintain
professional skepticism. At the same time, we also perform the following:

1.   Identify and evaluate the risk of material misstatement due to fraud or error, design and implement auditing procedures to
     address the risk, and obtain sufficient and appropriate audit evidence as the ground for our audit opinion. Since fraud may
     involve collusion, forgery, intentional omission, misrepresentation or override of internal control, the risk of failure to detect
     material misstatements due to fraud is higher than the risk of failure to detect material misstatements due to error.

2.   Understand the audit-related internal controls in order to design appropriate auditing procedures, but the purpose here is not to
     issue any opinion on the effectiveness of the internal controls.

3.   Evaluate the appropriateness of accounting policies selected by the management team and the rationality of accounting


                                                                                                                                       124
                                                                                                    Sungrow Power Supply Co., Ltd.
                                                                                      2021 Annual Report (Concise Version in English)

     estimates and related disclosures.

4.   Conclude on the appropriateness of the going concern assumptions used by the management team. Based on the audit evidence
     obtained, draw conclusions on whether there are significant uncertainties in matters or situations that are likely to impair
     Sungrow's ability to continue as a going concern. Should the conclusions considered significant uncertainties, we are required
     by the auditing standards to remind users of the financial statements to the relevant disclosures in the financial statements; if the
     disclosures were insufficient, we should not issue our opinion as non-qualified. Our conclusions are based on information
     available as of the date of the audit report. However, matters or circumstances in the future may still cause Sungrow to cease to
     operate as a going concern.

5.   Evaluate the overall presentation, structure and content of the financial statements, and evaluate whether the financial statements
     fairly reflect the relevant transactions and matters.

6.   Obtain sufficient and appropriate audit evidence on the financial information of Sungrow’s entities or business activities, so as
     to issue the audit opinions on the financial statements. We are responsible for directing, supervising and performing the group
     audit, and are solely responsible for the audit opinion we make.

We communicate with the governance team on the planned scope, schedule and significant audit findings of the audit, including
internal control deficiencies of concern that we identified during our audit.

We have also provided the governance team with a statement of compliance with professional ethical requirements related to
independence, and communicated with them on all relationships and other matters that might be reasonably believed to affect our
independence, together with the corresponding countermeasures.

From the list of matters that we have communicated with the governance team, we identify those of the most significance to the audit
of financial statements of the current period as the key audit matters. We describe these matters in our audit report unless public
disclosure of such matters is prohibited by laws or regulations or; in rare circumstances where the adverse consequences of
communicating a matter in the audit report would be reasonably expected to outweigh the benefits in the public interest, we decide
not to communicate such matter in the audit report.


II. Financial Statements

All numbers in the financial statements are in RMB.


1. Consolidated Balance Sheet

Prepared by: Sungrow Power Supply Co., Ltd.
                                                             April 20, 2022
                                                                                                                         (in RMB)

                          Item                                      December 31, 2021                        December 31, 2020

Current Assets:

Cash and cash equivalents                                                        7,790,144,016.01                      7,417,442,785.55

Settlements Provision

Loans to banks and other financial institutions

Financial assets held for trading                                                3,812,896,788.98                        673,049,658.47




                                                                                                                                      125
                                                                           Sungrow Power Supply Co., Ltd.
                                                             2021 Annual Report (Concise Version in English)

Derivative financial assets

Notes receivable                                          784,339,002.72                     815,028,079.65

Accounts receivable                                      8,748,141,497.54                  6,585,489,222.22

Financing receivables                                     762,715,906.62                   1,429,890,903.46

Prepayments                                               359,819,409.47                     307,052,233.06

Insurance premium receivable

Due from reinsurers

Reinsurance contract reserves receivable

Other receivables                                         946,579,893.54                     799,333,709.75

Including: Interest receivable

Dividends receivable

Financial assets purchased under agreements to resell

Inventories                                             10,767,519,365.64                  3,873,426,789.49

Contract assets                                          1,364,393,136.40                    972,128,094.97

Assets classified as held for sale

Non-current assets due in one year                         75,528,337.39                      78,828,840.73

Other current assets                                      895,355,467.22                     301,371,301.95

Total current assets                                    36,307,432,821.53                 23,253,041,619.30

Non-current assets:

Loans and advances

Debt investment

Other debt investments

Long-term receivables                                     213,044,303.38                     210,769,637.34

Long-term equity investments                              115,159,366.42                     406,420,414.50

Other equity instruments investments

Other non-current financial assets                         40,008,527.59                     146,361,887.62

Investment properties

Fixed assets                                             4,245,993,353.02                  3,240,954,477.91

Construction in progress                                  424,310,899.34                     211,746,133.58

Productive biological assets

Oil and gas assets

Right-of-use asset                                        344,386,440.69

Intangible assets                                         174,385,023.72                     128,954,193.08

Development expenditures



                                                                                                        126
                                                                          Sungrow Power Supply Co., Ltd.
                                                            2021 Annual Report (Concise Version in English)

Goodwill

Long-term prepaid expenses                                23,696,359.28                      33,776,287.75

Deferred tax assets                                      638,432,375.29                     359,483,164.54

Other non-current assets                                 313,281,445.20                      11,426,179.24

Total non-current assets                                6,532,698,093.93                  4,749,892,375.56

Total assets                                           42,840,130,915.46                 28,002,933,994.86

Current liabilities:

Short-term borrowings                                   1,524,580,849.05                    135,125,000.00

Borrowing from the central bank

Deposits and balances from banks and other financial
institutions

Financial liabilities held for trading

Derivative financial liabilities

Notes payable                                           7,939,950,795.46                  5,386,302,627.48

Accounts payable                                        9,824,886,816.58                  6,705,666,304.17

Receipts in advance

Contract liabilities                                    1,713,946,572.46                  1,408,025,979.44

Financial assets sold under agreements to buy

Customer deposits and balances from banks and other
financial institutions

Customer brokerage deposits

Securities underwriting brokerage deposits

Payroll and employee benefits payable                    380,993,966.96                     259,993,897.26

Taxes payable                                            508,768,582.40                     325,839,651.74

Other payables                                           500,890,674.53                     233,730,526.78

Including: Interest payable

Dividend payable

Fees and commission payable

Payable reinsurance

Liabilities classified as held for sale

Non-current liabilities due in one year                  205,372,932.33                     260,700,564.28

Other current liabilities                                907,970,842.58                     312,007,129.23

Total current liabilities                              23,507,362,032.35                 15,027,391,680.38

Non-current liabilities:

Insurance reserves


                                                                                                       127
                                                                                              Sungrow Power Supply Co., Ltd.
                                                                                2021 Annual Report (Concise Version in English)

Long-term borrowings                                                        1,891,445,000.00                  1,781,240,000.00

Bonds payable

Including: Preference shares

Perpetual debt

Lease liabilities                                                             283,789,579.70

Long-term Payable                                                              56,156,864.10                      59,426,474.10

Long-term payroll and employee benefits payable

Provisions                                                                    242,096,475.53                     119,551,329.18

Deferred income                                                               141,475,530.69                     135,948,241.48

Deferred tax liabilities                                                       14,127,384.33                      14,679,154.69

Other non-current liabilities

Total non-current liabilities                                               2,629,090,834.35                  2,110,845,199.45

Total liabilities                                                          26,136,452,866.70                 17,138,236,879.83

Owners’ equity:

Paid-in capital                                                             1,485,215,984.00                  1,457,236,850.00

Other equity instruments

Including: Preference share

Perpetual debt

Capital reserve                                                             6,959,695,649.18                  3,218,415,694.87

Less: treasury shares                                                          15,133,520.00                      76,130,653.30

Other comprehensive income                                                    -24,221,290.12                     -14,387,945.32

Special reserve

Surplus reserve                                                               716,612,746.04                     593,881,439.81

General risk reserve

Retained earnings                                                           6,532,893,916.61                  5,276,889,357.08

Equity attributable to owners of the parent                                15,655,063,485.71                 10,455,904,743.14

Non-controlling interests                                                   1,048,614,563.05                     408,792,371.89

Total owners’ equity                                                      16,703,678,048.76                 10,864,697,115.03

Total liabilities and owners’ equity                                      42,840,130,915.46                 28,002,933,994.86


Legal Representative: Cao Renxian       Chief Accountant: Li Guojun   Head of Accounting Department: Li Guojun




                                                                                                                           128
                                                                   Sungrow Power Supply Co., Ltd.
                                                     2021 Annual Report (Concise Version in English)

2. Balance Sheet of Parent Company

                                                                                     (in RMB)

                           Item        December 31, 2021                 December 31, 2020

Current Assets:

Cash and cash equivalents                        4,686,803,427.38                  4,997,150,662.71

Financial assets held for trading                2,655,239,184.22                     19,141,500.01

Derivative financial assets

Notes receivable                                  460,268,788.01                     710,276,647.61

Accounts receivable                              6,633,778,001.81                  7,394,390,133.73

Financing receivables                             477,280,432.91                   1,225,757,149.76

Prepayments                                        54,560,360.00                      66,038,894.63

Other receivables                                 729,294,428.68                   2,803,126,883.05

Including: Interest receivable

Dividends receivable                                                                 166,700,000.00

Inventories                                      3,571,281,925.32                  1,950,703,206.36

Contract assets                                   400,767,894.33                     772,799,205.27

Assets classified as held for sale

Non-current assets due in one year                 75,528,337.39                      78,828,840.73

Other current assets                              179,708,891.30                      40,532,570.21

Total current assets                            19,924,511,671.35                 20,058,745,694.07

Non-current assets:

Debt investment

Other debt investments

Long-term receivables                             213,044,303.38                     210,769,637.34

Long-term equity investments                     4,645,754,539.19                  2,188,977,924.09

Other equity instruments investments

Other non-current financial assets                                                   102,639,882.00

Investment properties

Fixed assets                                     1,276,995,771.25                    646,102,911.42

Construction in progress                          240,635,749.42                      14,787,249.53

Productive biological assets

Oil and gas assets

Right-of-use asset                                 42,607,365.77

Intangible assets                                 122,705,732.83                      91,701,589.67


                                                                                                129
                                                                     Sungrow Power Supply Co., Ltd.
                                                       2021 Annual Report (Concise Version in English)

Development expenditures

Goodwill

Long-term prepaid expenses                           17,802,929.79                      16,015,819.79

Deferred tax assets                                 348,201,521.51                     296,895,987.78

Other non-current assets                            171,253,899.20

Total non-current assets                           7,079,001,812.34                  3,567,891,001.62

Total assets                                      27,003,513,483.69                 23,626,636,695.69

Current liabilities:

Short-term borrowings                               566,025,816.24                      40,125,000.00

Financial liabilities held for trading

Derivative financial liabilities

Notes payable                                      3,859,144,185.00                  5,124,808,158.00

Accounts payable                                   6,093,277,528.94                  5,745,123,101.80

Receipts in advance

Contract liabilities                                695,217,795.44                     781,147,009.22

Payroll and employee benefits payable               166,713,271.18                     170,702,097.78

Taxes payable                                       139,986,244.97                     207,542,675.50

Other payables                                      273,839,838.70                     498,255,075.51

Including: Interest payable

Dividend payable

Liabilities classified as held for sale

Non-current liabilities due in one year              23,520,306.60                     136,743,233.13

Other current liabilities                            91,452,860.84                     241,300,012.36

Total current liabilities                         11,909,177,847.91                 12,945,746,363.30

Non-current liabilities:

Long-term borrowings                                 10,500,000.00                     452,500,000.00

Bonds payable

Including: Preference shares

Perpetual debt

Lease liabilities                                    28,185,840.68

Long-term Payable

Long-term payroll and employee benefits payable

Provisions                                           14,629,180.74                      23,852,046.47

Deferred income                                     125,720,570.24                     120,437,512.85



                                                                                                  130
                                                               Sungrow Power Supply Co., Ltd.
                                                 2021 Annual Report (Concise Version in English)

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities                  179,035,591.66                    596,789,559.32

Total liabilities                         12,088,213,439.57                   13,542,535,922.62

Owners’ equity:

Paid-in capital                            1,485,215,984.00                    1,457,236,850.00

Other equity instruments

Including: Preference share

Perpetual debt

Capital reserve                            7,074,553,205.11                    3,355,671,754.70

Less: treasury shares                           15,133,520.00                      76,130,653.30

Other comprehensive income

Special reserve

Surplus reserve                                716,612,746.04                    593,881,439.81

Retained earnings                          5,654,051,628.97                    4,753,441,381.86

Total owners’ equity                     14,915,300,044.12                   10,084,100,773.07

Total liabilities and owners’ equity     27,003,513,483.69                   23,626,636,695.69


3. Consolidated Income Statement

                                                                                 (in RMB)

                            Item        2021                                2020

I. Total revenue                          24,136,598,726.55                   19,285,641,347.02

Including: Operating proceeds             24,136,598,726.55                   19,285,641,347.02

Interest income

Net earned premiums

Net fee and commission revenue

II. Total operating costs                 22,365,999,105.36                   17,336,765,749.84

Including: Operating costs                18,765,234,741.08                   14,836,768,931.09

Interest expenses

Fees and commission expenses

Surrenders

Net payments for insurance claims

Net provision of insurance reserve

Policyholder dividends


                                                                                            131
                                                                             Sungrow Power Supply Co., Ltd.
                                                               2021 Annual Report (Concise Version in English)

Reinsurance expenses

Taxes and surcharges                                         82,485,943.84                      62,907,749.88

Selling expenses                                           1,582,578,297.46                    973,407,951.35

General and administrative expenses                         491,053,482.80                     396,100,336.53

R&D expenses                                               1,161,389,788.60                    806,352,266.48

Financial expenses                                          283,256,851.58                     261,228,514.51

Including: Interest expense                                 124,111,368.70                      97,625,042.31

Interest income                                              62,999,892.35                      68,528,386.63

Add: Other income                                           186,298,661.20                     157,857,240.56

Investment gains (or losses)                                354,966,135.62                     135,582,350.39

Including: Share of gains of associates and joint
                                                              9,335,376.24                       1,588,439.28
ventures

Gains from derecognition of financial assets measured at
amortized cost

Exchange gains (or losses)

Net exposure hedging gains (or losses)

Gains (or losses) on the changes in fair value               66,438,296.41                       1,909,098.00

Credit impairment losses                                   -207,580,392.56                     -47,538,604.72

Assets impairment losses                                   -273,593,601.70                     -28,599,493.19

Gain (or losses) from disposal of assets                        448,633.20                         255,099.07

III. Operating profit (or loss)                            1,897,577,353.36                  2,168,341,287.29

Add: Non-operating income                                    17,119,329.76                      35,623,699.15

Less: Non-operating costs                                    22,024,546.89                      22,423,101.69

IV. Profit (or loss) before tax                            1,892,672,136.23                  2,181,541,884.75

Less: Income tax expense                                    188,677,565.32                     206,026,555.86

V. Net profit (or loss)                                    1,703,994,570.91                  1,975,515,328.89

(1) Categorized by operation continuity

1. Net profit (or loss) from continuing operations         1,703,994,570.91                  1,975,515,328.89

2. Net profit (or loss) from discontinuing operations

(2) Categorized by ownership

1. Net profit attributable to shareholders of parent
                                                           1,582,707,374.76                  1,954,308,244.82
company

2. Net profit attributable to non-controlling interests     121,287,196.15                      21,207,084.07

VI. Other comprehensive income, net of tax                    -9,833,344.80                     -6,663,138.05

Other comprehensive income, net of tax, attributable to       -9,833,344.80                     -6,663,138.05


                                                                                                          132
                                                                                                 Sungrow Power Supply Co., Ltd.
                                                                                   2021 Annual Report (Concise Version in English)

shareholders of parent company

a. Other comprehensive income not be reclassified as
profit or loss

1. Remeasurement gains or losses of a defined benefit
plan

2. Other comprehensive income not to be reclassified as
profit or loss using the equity method

3. Changes in fair value of other equity instrument
investments

4. Changes in fair value of enterprise’s own credit risk

5. Others

b. Other comprehensive income to be reclassified as
                                                                                 -9,833,344.80                        -6,663,138.05
profit or loss

1. Other comprehensive income to be reclassified as
profit or loss using equity method

2. Changes in fair value of other debt investments

3. Amount of financial assets reclassified into other
comprehensive income

4. Provision for credit impairment of other debt
investments

5. Cash flow hedging reserves

6. Exchange differences on translation of foreign
                                                                                 -9,833,344.80                        -6,663,138.05
currency financial

7. Others

Other comprehensive income, net of tax, attributable to
non-controlling interests

VII. Total comprehensive income                                               1,694,161,226.11                    1,968,852,190.84

Total comprehensive income attributable to owners of
                                                                              1,572,874,029.96                    1,947,645,106.77
parent company

Total comprehensive income attributable to
                                                                                121,287,196.15                       21,207,084.07
non-controlling interests

VIII. Earnings per share

(1) Basic earnings per share                                                               1.08                                1.34

(2) Diluted earnings per share                                                             1.08                                1.34

For business combination under common control during the reporting period, the net profit realized by the merged party before the
combination is RMB 0.00, the net profit realized by the merged party in the previous period is RMB 0.00.


Legal Representative: Cao Renxian        Chief Accountant: Li Guojun   Head of Accounting Department: Li Guojun


                                                                                                                                133
                                                                                  Sungrow Power Supply Co., Ltd.
                                                                    2021 Annual Report (Concise Version in English)

4. Income Statement of Parent Company

                                                                                                    (in RMB)

                              Item                         2021                                2020

I. Operating revenue                                         11,679,896,018.21                   16,792,982,264.79

Less: Operating costs                                         9,435,266,771.20                   14,015,253,981.55

Taxes and surcharges                                               32,993,657.30                      47,159,161.84

Selling expenses                                                  466,391,969.51                    531,407,863.17

General and administrative expenses                               212,847,588.74                    243,100,722.91

R&D expenses                                                      791,547,101.42                    593,202,939.91

Financial expenses                                                 69,838,783.75                    169,314,663.34

Including: Interest expense                                        15,910,260.18                      27,084,851.63

Interest income                                                   128,135,123.54                      71,706,569.05

Add: Other income                                                  78,490,900.38                      86,727,000.78

Investment gains (or losses)                                      376,596,031.61                    453,651,384.65

Including: Share of gains of associates and joint
                                                                                                        -640,697.99
ventures

Gains (or losses) from derecognition of financial assets
measured at amortized cost

Net exposure hedging gains (or losses)

Gains (or losses) on the changes in fair value                     33,457,802.21                         231,500.01

Credit impairment losses                                          169,936,441.85                      -10,851,806.27

Assets impairment losses                                          -37,298,170.36                      -10,314,128.49

Gain (or losses) from disposal of assets                             418,400.22                          227,479.28

II. Operating profit (or loss)                                1,292,611,552.20                    1,713,214,362.03

Add: Non-operating income                                          10,938,246.07                      27,685,065.36

Less: Non-operating costs                                          20,522,307.52                      19,740,562.16

III. Total profit (or loss)                                   1,283,027,490.75                    1,721,158,865.23

Less: Income tax expense                                           55,714,428.41                    143,065,601.36

V. Net profit (or loss)                                       1,227,313,062.34                    1,578,093,263.87

a. Net profit (or loss) from continuing operations            1,227,313,062.34                    1,578,093,263.87

b. Net profit (or loss) from discontinuing operations

V. Other comprehensive income, net of tax

a. Other comprehensive income not to be reclassified as
profit or loss




                                                                                                                134
                                                                                 Sungrow Power Supply Co., Ltd.
                                                                   2021 Annual Report (Concise Version in English)

1. Remeasurement gains or losses of a defined benefit
plan

2. Other comprehensive income not to be reclassified as
profit or loss using the equity method

3. Changes in fair value of other equity instrument
investments

4. Changes in fair value of enterprise’s own credit risk

5. Others

b. Other comprehensive income to be reclassified as
profit or loss

1. Other comprehensive income to be reclassified as
profit or loss using equity method

2. Changes in fair value of other debt investments

3. Amount of financial assets reclassified into other
comprehensive income

4. Provision for credit impairment of other debt
investments

5. Cash flow hedging reserves

6. Exchange differences on translation of foreign
currency financial

7. Others

VI. Total comprehensive income                                 1,227,313,062.34                  1,578,093,263.87

VII. Earnings per share

(1) Basic earnings per share

(2) Diluted earnings per share


5. Consolidated Statement of Cash Flows

                                                                                                   (in RMB)

                           Item                             2021                              2020

I. Cash flows from operating activities

Cash receipts from the sale of goods and the rendering
                                                              22,746,962,796.41                 19,472,584,400.49
of services

Net increase in customer bank deposits and due to banks
and other financial institutions

Net increase in loans from the central bank

Net increase in funds borrowed from other financial



                                                                                                              135
                                                                            Sungrow Power Supply Co., Ltd.
                                                              2021 Annual Report (Concise Version in English)

institutions

Cash premiums received on original insurance contracts

Net cash received from re-insurance business

Net increase in deposits and investments from insurers

Cash received from interest, fees and commission

Net increase in funds deposit

Net increase in repurchase business funds

Net income from securities trading brokerage business

Tax refunds received                                       790,867,061.23                     326,119,990.80

Cash received relating to other operating activities       514,988,997.93                     432,719,130.74

Sub-total of cash inflows                                24,052,818,855.57                 20,231,423,522.03

Cash paid for purchase of goods and services             21,463,759,761.25                 14,118,652,051.76

Net increase in loans and payments on behalf of
customers

Net increase in deposits with central bank and other
financial institutions

Payments for claims for original insurance contracts

Net increase in funds lent

Cash paid for interest, fees and commission

Commissions on insurance policies paid

Cash paid to and on behalf of employee                    1,763,505,472.38                  1,194,996,927.43

Cash paid for taxes                                        848,134,227.11                     555,834,544.21

Cash paid relating to other operating activities          1,616,051,517.60                  1,273,281,774.04

Sub-total of cash outflows                               25,691,450,978.34                 17,142,765,297.44

Net cash flows from operating activities                 -1,638,632,122.77                  3,088,658,224.59

II. Cash flows from investing activities:

Cash received from disposal of investments                4,399,319,691.62                  1,025,191,919.02

Cash received from investment income                       142,090,826.04                     133,993,911.11

Net proceeds from disposal of fixed assets, intangible
                                                            12,149,964.76                       7,954,502.01
assets and other long-term assets

Cash received from disposal of subsidiaries and other
                                                              3,814,295.00
business units

Cash received relating to other investing activities            53,694.23

Sub-total of cash inflows                                 4,557,428,471.65                  1,167,140,332.14

Cash paid for purchase/construction of fixed assets,      1,665,649,098.40                    960,928,959.57



                                                                                                         136
                                                                                   Sungrow Power Supply Co., Ltd.
                                                                     2021 Annual Report (Concise Version in English)

intangible assets and other non-current assets

Cash paid for investments                                     6,604,988,709.04                       244,850,000.00

Net increase in secured loans

Net cash paid for acquisition of a subsidiary and other
                                                                                                       75,184,693.23
operating units

Cash paid relating to other investing activities

Sub-total of cash outflows                                    8,270,637,807.44                     1,280,963,652.80

Net cash flows from investing activities                     -3,713,209,335.79                      -113,823,320.66

III. Cash flows from financing activities:

Cash received from investment                                 4,178,537,220.12                         76,208,246.82

Including: Cash receipts from capital contributions from
                                                                                                       68,523,246.82
non-controlling interests of subsidiaries

Proceeds from borrowings                                      2,727,391,963.81                       871,569,091.15

Cash receipts relating to other financing activities               73,952,000.00                        6,968,509.10

Subtotal of cash inflows                                      6,979,881,183.93                       954,745,847.07

Repayments for debts                                          1,357,130,322.37                       937,442,746.53

Cash payments for distribution of dividends or profit
                                                                  319,225,674.30                     198,712,346.10
and interest expenses

Including: Dividends or profit paid to non-controlling
shareholders of subsidiaries

Cash payments relating to other financing activities              124,869,565.09                       11,905,711.80

Subtotal of cash outflows                                     1,801,225,561.76                     1,148,060,804.43

Net cash flows from financing activities                      5,178,655,622.17                      -193,314,957.36

IV. Effect of exchange rate changes on cash and cash
                                                                   -19,501,109.58                      -69,327,374.24
equivalents

V. Net increase in cash and cash equivalents                      -192,686,945.97                  2,712,192,572.33

Add: Cash and cash equivalents at beginning of the
                                                              6,752,686,738.73                     4,040,494,166.40
period

VI. Cash and cash equivalents at end of the period            6,559,999,792.76                     6,752,686,738.73


6. Statement of Cash Flows of Parent Company

                                                                                                     (in RMB)

                            Item                           2021                                 2020

I. Cash flows from operating activities

Cash receipts from the sale of goods and the rendering
                                                             13,888,228,231.73                    16,283,301,660.36
of services


                                                                                                                 137
                                                                             Sungrow Power Supply Co., Ltd.
                                                               2021 Annual Report (Concise Version in English)

Tax refunds received                                        573,067,985.35                     278,328,165.70

Cash received relating to other operating activities        267,054,687.30                     309,483,085.52

Sub-total of cash inflows                                 14,728,350,904.38                 16,871,112,911.58

Cash paid for purchase of goods and services              12,624,409,133.49                 13,112,104,404.61

Cash paid to and on behalf of employee                      864,821,507.51                     724,988,558.69

Cash paid for taxes                                          86,378,257.47                     229,760,458.75

Cash paid relating to other operating activities            875,243,605.70                     808,410,724.49

Sub-total of cash outflows                                14,450,852,504.17                 14,875,264,146.54

Net cash flows from operating activities                    277,498,400.21                   1,995,848,765.04

II. Cash flows from investing activities:

Cash received from disposal of investments                 2,459,948,800.00                    448,893,831.63

Cash received from investment income                        263,267,352.70                     287,592,082.64

Net proceeds from disposal of fixed assets, intangible
                                                             15,354,478.36                       7,906,664.10
assets and other long-term assets

Cash received from disposal of subsidiaries and other
business units

Cash received relating to other investing activities

Sub-total of cash inflows                                  2,738,570,631.06                    744,392,578.37

Cash paid for purchase/construction of fixed assets,
                                                           1,060,816,972.70                    424,457,087.19
intangible assets and other non-current assets

Cash paid for investments                                  7,402,062,808.31                  1,036,270,127.89

Net increase in secured loans                                                                   75,184,693.23

Net cash paid for acquisition of a subsidiary and other
operating units

Cash paid relating to other investing activities           8,462,879,781.01                  1,535,911,908.31

Sub-total of cash outflows                                -5,724,309,149.95                   -791,519,329.94

Net cash flows from investing activities

III. Cash flows from financing activities:                 3,623,146,130.36                      7,685,000.00

Cash received from investment                               563,705,196.00                     400,125,000.00

Cash received from borrowings                              1,994,736,469.94                     57,594,473.21

Cash receipts relating to other financing activities       6,181,587,796.30                    465,404,473.21

Subtotal of cash inflows                                    606,044,522.37                     307,190,774.19

Repayments for debts                                        222,227,003.29                     123,958,370.79

Cash payments for distribution of dividends or profit
                                                            160,201,781.92                     380,673,527.01
and interest expenses



                                                                                                          138
                                                                         Sungrow Power Supply Co., Ltd.
                                                           2021 Annual Report (Concise Version in English)

Cash payments relating to other financing activities    988,473,307.58                     811,822,671.99

Net cash flows from financing activities               5,193,114,488.72                   -346,418,198.78

IV. Effect of exchange rate changes on cash and cash
                                                          -9,667,764.78                    -48,275,247.33
equivalents

V. Net increase in cash and cash equivalents           -263,364,025.80                     809,635,988.99

Add: Cash and cash equivalents at beginning of the
                                                       4,390,478,261.91                  3,580,842,272.92
period

VI. Cash and cash equivalents at end of the period     4,127,114,236.11                  4,390,478,261.91




                                                                                                      139
                                                                                                                                                                   Sungrow Power Supply Co., Ltd.
                                                                                                                                                     2021 Annual Report (Concise Version in English)




7. Consolidated Statement of Changes in Equity

Current amount
                                                                                                                                                                                               (in RMB)

                                                                                                        2021

                                                                        Equity attributable to owners of the parent
                                                                                                                                                                                                 Total
     Item                  Other equity instruments                                                                                                                            Non-controll
                                                                       Less:          Other
                 Share                                     Capital                                 Special Surplus      General     Retained                                                    owners’
                                                                      treasury    comprehensive                                                        Others      Subtotal    ing interests
                           Preference Perpetual                                                                                                                                                  equity
                 capital                          Others   reserve                                 reserve   reserve    reserve     earnings
                             share       debt                         shares         income

I. Balance at    1,457,2
                                                           3,218,41 76,130,65                                593,881,             5,276,889,357                  10,455,904 408,792,371 10,864,697,
the end of       36,850.                                                          -14,387,945.32
                                                           5,694.87        3.30                                439.81                          .08                   ,743.14             .89       115.03
previous year        00

Add: changes
in accounting
policies

Corrections of
prior period
errors

Business
combination
under
common
control

Others

II. Balance at   1,457,2                                   3,218,41 76,130,65 -14,387,945.32                 593,881,             5,276,889,357                  10,455,904 408,792,371 10,864,697,
                                                                                                                                                                                                    140
                                                                                                           Sungrow Power Supply Co., Ltd.
                                                                                             2021 Annual Report (Concise Version in English)
the beginning 36,850.       5,694.87      3.30                     439.81              .08                   ,743.14          .89        115.03
of the year           00

III. Increase
(or decrease)     27,979,   3,741,27 -60,997,13                   122,731,   1,256,004,559                5,199,158, 639,822,191 5,838,980,9
                                                  -9,833,344.80
during the        134.00    9,954.31      3.30                     306.23              .53                    742.57          .16         33.73
period

a. Total
                                                                             1,582,707,374                1,572,874, 121,287,196 1,694,161,2
comprehensiv                                      -9,833,344.80
                                                                                       .76                    029.96          .15         26.11
e income

b. Owners’
                  27,979,   3,741,27 -60,997,13                                                           3,830,256, 518,534,995 4,348,791,2
contribution
                  134.00    9,954.31      3.30                                                                221.61          .01         16.62
and reduction

1. Owners’
                  27,979,   3,592,82                                                                      3,620,799, 491,720,977 4,112,520,7
contribution in
                  134.00    0,606.46                                                                          740.46          .71         18.17
ordinary share

2.
Contribution
from other
equity
instruments

3. Amount of
share-based
                            169,330, -60,997,13                                                          230,327,41                 230,327,412
payments
                             279.19       3.30                                                                  2.49                        .49
recognized in
equity

4. Others                   -20,870,                                                                      -20,870,93 26,814,017. 5,943,085.9
                             931.34                                                                             1.34           30              6


                                                                                                                                         141
                                                           Sungrow Power Supply Co., Ltd.
                                             2021 Annual Report (Concise Version in English)
c. Profit         122,731,   -326,702,815.                -203,971,5              -203,971,50
distribution       306.23              23                      09.00                      9.00

1. Transfer to
                  122,731,   -122,731,306.
surplus
                   306.23              23
reserve

2. Transfer to
general
reserve

3. Distribution
                             -203,971,509.                -203,971,5              -203,971,50
to owner (or
                                       00                      09.00                      9.00
shareholder)

4. Others

d. Transfer
within equity

1. Capital
reserves
converted to
share capital

2. Surplus
reserves
converted to
share capital

3. Loss made
up by surplus
reserves

4. Changes in
the defined

                                                                                        142
                                                                                                                                                               Sungrow Power Supply Co., Ltd.
                                                                                                                                                 2021 Annual Report (Concise Version in English)
benefit plan
transferred to
retained
earnings

5. Other
comprehensiv
e income
transferred to
retained
earnings

6. Others

e. Special
reserve

1. Additions

2. Utilization

f. Others

IV. Balance at 1,485,2
                                                           6,959,69 15,133,52                              716,612,              6,532,893,916               15,655,063 1,048,614,5 16,703,678,
the end of the 15,984.                                                          -24,221,290.12
                                                           5,649.18      0.00                               746.04                         .61                   ,485.71         63.05       048.76
period               00

Last period amount
                                                                                                                                                                                         (in RMB)

                                                                                                       2020

                 Equity attributable to owners of parent company
      Item                   Other equity instruments                  Less:        Other                                                                     Non-controlling
                  Share                                     Capital                              Special Surplus General Retained                                               Total owners’ equity
                                                                      treasury comprehensive                                               Others Subtotal        interests
                           Preference Perpetual
                 capital                          Others    reserve                              reserve   reserve    reserve   earnings
                             share      debt                           shares      income

                                                                                                                                                                                              143
                                                                                                           Sungrow Power Supply Co., Ltd.
                                                                                             2021 Annual Report (Concise Version in English)
I. Balance at       1,457,0
                              3,243,323 131,893,4                   437,647,    3,595,757,       8,594,19
the end of          86,850.                         -7,724,807.27                                           160,613,151.40    8,754,811,188.37
                                ,818.35     20.60                     973.97       622.52        8,036.97
previous year           00

Add: changes
                                                                    -1,575,86   -13,390,28       -14,966,
in accounting                                                                                                                   -14,966,144.92
                                                                        0.55         4.37         144.92
policies

Corrections of
prior period
errors

Business
combination
under common
control

Others

II. Balance at      1,457,0
                              3,243,323 131,893,4                   436,072,    3,582,367,       8,579,23
the beginning       86,850.                         -7,724,807.27                                           160,613,151.40    8,739,845,043.45
                                ,818.35     20.60                     113.42       338.15        1,892.05
of the year             00

III. Increase (or
decrease)           150,00    -24,908,1 -55,762,7                   157,809,    1,694,522,       1,876,67
                                                    -6,663,138.05                                           248,179,220.49    2,124,852,071.58
during the            0.00       23.48      67.30                     326.39       018.93        2,851.09
period

a. Total
                                                                                1,954,308,       1,947,64
comprehensive                                       -6,663,138.05                                            21,207,084.07    1,968,852,190.84
                                                                                   244.82        5,106.77
income

b. Owners’
                    150,00    -24,908,1 -55,762,7                                                31,004,6
contribution                                                                                                226,972,136.42     257,976,780.24
                      0.00       23.48      67.30                                                   43.82
and reduction

                                                                                                                                        144
                                                                                       Sungrow Power Supply Co., Ltd.
                                                                         2021 Annual Report (Concise Version in English)
1. Owners’
                  150,00   515,823.2                                         665,823.
contribution in                                                                          68,523,246.81       69,189,070.01
                    0.00          0                                                20
ordinary share

2. Contribution
from other
equity
instruments

3. Amount of
share-based
                           136,629,3 -55,762,7                               192,392,
payments                                                                                                    192,392,116.24
                              48.94      67.30                                 116.24
recognized in
equity

4. Others                  -162,053,                                        -162,053
                                                                                        158,448,889.61       -3,604,406.01
                             295.62                                           ,295.62

c. Profit                                        157,809,   -259,786,2      -101,976
                                                                                                           -101,976,899.50
distribution                                      326.39        25.89         ,899.50

1. Transfer to                                   157,809,   -157,809,3
surplus reserve                                   326.39        26.39

2. Transfer to
general reserve

3. Distribution
                                                            -101,976,8      -101,976
to owner (or                                                                                               -101,976,899.50
                                                                99.50         ,899.50
shareholder)

4. Others

d. Transfer
within equity


                                                                                                                    145
                               Sungrow Power Supply Co., Ltd.
                 2021 Annual Report (Concise Version in English)
1. Capital
reserves
converted to
share capital

2. Surplus
reserves
converted to
share capital

3. Loss made
up by surplus
reserves

4. Changes in
the defined
benefit plan
transferred to
retained
earnings

5. Other
comprehensive
income
transferred to
retained
earnings

6. Others

e. Special
reserve

1. Additions


                                                            146
                                                                                                                                                                       Sungrow Power Supply Co., Ltd.
                                                                                                                                                         2021 Annual Report (Concise Version in English)
2. Utilization

f. Others

IV. Balance at       1,457,2                                                                                                                                   10,455,9
                                                                3,218,415 76,130,65                               593,881,             5,276,889,
the end of the       36,850.                                                            -14,387,945.32                                                         04,743.1 408,792,371.89     10,864,697,115.03
                                                                   ,694.87       3.30                              439.81                 357.08
period                   00                                                                                                                                          4


8. Statement of Changes in Owners’ Equity of Parent Company

Current amount
                                                                                                                                                                                                 (in RMB)

                                                                                                                   2021

                                                      Other equity instruments                                               Other
            Item                 Share                                                    Capital     Less: treasury                     Special    Surplus     Retained
                                                Preference   Perpetual                                                 comprehensive                                        Others       Total Owners’ Equity
                                 capital                                     Others       reserve        shares                          reserve     reserve    earnings
                                                  share         debt                                                      income

I. Balance at the end of       1,457,236,8                                               3,355,671,7 76,130,653.3                                   593,881,4 4,753,44
                                                                                                                                                                                           10,084,100,773.07
previous year                        50.00                                                    54.70               0                                    39.81 1,381.86

Add: changes in
accounting policies

Corrections of prior
period errors

Others

II. Balance at the             1,457,236,8                                               3,355,671,7 76,130,653.3                                   593,881,4 4,753,44
                                                                                                                                                                                           10,084,100,773.07
beginning of the year                50.00                                                    54.70               0                                    39.81 1,381.86

III. Increase (or
                               27,979,134.                                               3,718,881,4 -60,997,133.3                                  122,731,3 900,610,
decrease) during the                                                                                                                                                                         4,831,199,271.05
                                           00                                                 50.41               0                                    06.23      247.11
period

                                                                                                                                                                                                       147
                                                                                         Sungrow Power Supply Co., Ltd.
                                                                           2021 Annual Report (Concise Version in English)
a. Total comprehensive                                                           1,227,31
                                                                                                            1,227,313,062.34
income                                                                           3,062.34

b. Owners’ contribution    27,979,134.   3,718,881,4 -60,997,133.3
                                                                                                            3,807,857,717.71
and reduction                       00          50.41            0

1. Owners’ contribution    27,979,134.   3,592,820,6
                                                                                                            3,620,799,740.46
in ordinary share                   00          06.46

2. Contribution from
other equity instruments

3. Amount of
                                          126,060,843 -60,997,133.3
share-based payments                                                                                         187,057,977.25
                                                  .95            0
recognized in equity

4. Others

c. Profit distribution                                                122,731,3 -326,702,
                                                                                                             -203,971,509.00
                                                                         06.23     815.23

1. Transfer to surplus                                                122,731,3 -122,731,
reserve                                                                  06.23     306.23

2. Distribution to owner                                                         -203,971,
                                                                                                             -203,971,509.00
(or shareholder)                                                                   509.00

3. Others

d. Transfer within equity

1. Capital reserves
converted to share
capital

2. Surplus reserves
converted to share
capital

                                                                                                                      148
                                                                                                                                                          Sungrow Power Supply Co., Ltd.
                                                                                                                                            2021 Annual Report (Concise Version in English)
3. Loss made up by
surplus reserves

4. Changes in the
defined benefit plan
transferred to retained
earnings

5. Other comprehensive
income transferred to
retained earnings

6. Others

e. Special reserve

1. Additions

2. Utilization

f. Others

IV. Balance at the end of 1,485,215,9                                             7,074,553,2 15,133,520.0                              716,612,7 5,654,05
                                                                                                                                                                           14,915,300,044.12
the period                           84.00                                             05.11                  0                            46.04 1,628.97

Previous period amount
                                                                                                                                                                                 (in RMB)

                                                                                                         2020

                                      Other equity instruments                                                    Other
       Item                                                                      Capital     Less: treasury                   Special     Surplus     Retained                Total Owners’
                     Share capital      Preference                                                            comprehensive                                      Others
                                                      Perpetual debt   Others    reserve        shares                        reserve     reserve     earnings                   Equity
                                          share                                                                   income

I. Balance at the
                     1,457,086,850.                                             3,241,001,2 131,893,420.                                437,647,973 3,449,317,
end of previous                                                                                                                                                              8,453,159,723.14
                                00                                                   30.97               60                                     .97     088.80
year


                                                                                                                                                                                       149
                                                                                    Sungrow Power Supply Co., Ltd.
                                                                      2021 Annual Report (Concise Version in English)
Add: changes in
                                                                 -1,575,860.5 -14,182,74
accounting                                                                                               -15,758,605.47
                                                                           5        4.92
policies

Corrections of
prior period
errors

Others

II. Balance at
                    1,457,086,850.   3,241,001,2 131,893,420.    436,072,113 3,435,134,
the beginning                                                                                          8,437,401,117.67
                               00          30.97           60            .42      343.88
of the year

III. Increase (or
decrease)                            114,670,523 -55,762,767.3   157,809,326 1,318,307,
                       150,000.00                                                                      1,646,699,655.40
during the                                   .73            0            .39      037.98
period

a. Total
                                                                               1,578,093,
comprehensive                                                                                          1,578,093,263.87
                                                                                  263.87
income

b. Owners’
                                     114,670,523 -55,762,767.3
contribution           150,000.00                                                                       170,583,291.03
                                             .73            0
and reduction

1. Owners’
contribution in        150,000.00     515,823.20                                                             665,823.20
ordinary share

2. Contribution
from other
equity
instruments

                                                                                                                 150
                                                                Sungrow Power Supply Co., Ltd.
                                                  2021 Annual Report (Concise Version in English)
3. Amount of
share-based
                  114,154,700 -55,762,767.3
payments                                                                            169,917,467.83
                          .53            0
recognized in
equity

4. Others

c. Profit                                     157,809,326 -259,786,2
                                                                                    -101,976,899.50
distribution                                          .39       25.89

1. Transfer to                                157,809,326 -157,809,3
surplus reserve                                       .39       26.39

2. Distribution
                                                            -101,976,8
to owner (or                                                                        -101,976,899.50
                                                                99.50
shareholder)

3. Others

d. Transfer
within equity

1. Capital
reserves
converted to
share capital

2. Surplus
reserves
converted to
share capital

3. Loss made
up by surplus
reserves

                                                                                             151
                                                                               Sungrow Power Supply Co., Ltd.
                                                                 2021 Annual Report (Concise Version in English)
4. Changes in
the defined
benefit plan
transferred to
retained
earnings

5. Other
comprehensive
income
transferred to
retained
earnings

6. Others

e. Special
reserve

1. Additions

2. Utilization

f. Others

IV. Balance at
                 1,457,236,850.   3,355,671,7 76,130,653.3   593,881,439 4,753,441,
the end of the                                                                                  10,084,100,773.07
                            00         54.70            0            .81    381.86
period




                                                                                                            152