2023 Annual Report
Stock Code: 600438 Short Name: Tongwei Co., Ltd
Tongwei Co., Ltd.
2023 Annual Report
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2023 Annual Report
Important Notice
I. The board of directors, supervisory committee as well as directors, supervisors and senior
managers of the Company are responsible for the authenticity, accuracy and completeness of
the information contained in this Annual Report without false records, misleading statements
or material omissions, and assume joint and several liability therefor.
II. All directors of the Company have been present in the board meeting.
III. Sichuan Huaxin (Group) CPA (Special General Partnership) has expressed a standard
unqualified opinion on the financial statements of the Company.
IV. Liu Shuqi, Head of the Company, Zhou Bin, Head of accounting affairs and Gan Lu, Head of
accounting department represent that they are responsible for the authenticity, accuracy and
completeness of the financial statements in this Annual Report.
V. The proposal on profit distribution or the proposal on conversion of capital reserve to share
capital for current period resolved in the board meeting
The Company will distribute profits for the year 2023 based on its total share capital on the record
date. A cash dividend of 9.05 yuan per 10 shares (including tax) will be distributed to all shareholders. As
of December 31, 2023, the total share capital of the Company was 4,501,973,746 shares, based on which
the total cash dividend to be distributed is 4,074,286,240.13 yuan (including tax). If there is any change
in the total share capital before the record date, the dividend per share will remain unchanged and the total
dividend amount will be adjusted accordingly. The above profit distribution proposal will be submitted to
the Company’s general meeting for approval before execution.
VI. Cautionary note on forward-looking statement
"√Applicable "□ Not applicable"
The forward-looking statements of the Company regarding its future development strategies and
business plans do not constitute any substantial commitment of the Company to investors; and investors
should pay attention to risks.
VII. Any funds possessed by the controlling shareholder and other related parties for non-operating
purposes?
No.
VIII. Any outward guarantee by the Company in violation of the prescribed decision-making
procedures?
No.
IX. More than half of the directors cannot ensure the truthfulness, accuracy, and completeness of
the annual report disclosed by the Company?
No.
X. Notice on material risks
The Company had detailed possible risks in this Report. Please refer to VI “discussion and analysis
on the Company’s future development” in Section III Management Discussion and Analysis for more
information on possible risks and actions.
Others
"□ Applicable" "√Not applicable"
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2023 Annual Report
Contents
Section I Definitions .................................................................................4
Section II Company Profile and Major Financial Indicators ...............7
Section III Management Discussion and Analysis ................................. 11
Section IV Company Governance ...........................................................49
Section V Environmental and Social Responsibility ............................73
Section VI Important Matters .................................................................91
Section VII Share Changes and Shareholders ....................................... 114
Section VIII Preference Shares .................................................................120
Section IX Bonds .....................................................................................121
Section X Financial Report...................................................................127
Financial statements bearing the signatures and seals of the head of the Company, the
head of the accounting affairs, and the head of the accounting department.
List of
Original auditor's report bearing the seal of the accountant firm and the signatures of the
documents to
CPAs.
be checked
Formal copies of all Company documents and the original announcements publicly
disclosed in websites designated by the CSRC.
*The 2023 Annual Report of Tongwei Co., Ltd. was published both in Chinese and English. Where any
discrepancy arises between the English and the Chinese content, the Chinese version shall prevail. The
English version here was only used for investors’ reference.
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2023 Annual Report
Section I Definitions
I. Definitions
Unless otherwise indicated in the context, the following terms shall have the following meanings in this
Report:
Definitions of frequently used terms
Tongwei, Company, We, or
refers to Tongwei Co., Ltd.
us
Tongwei Group refers to Tongwei Group Co., Ltd.
Yongxiang refers to Yongxiang Co., Ltd.
Yongxiang Polysilicon refers to Sichuan Yongxiang Polysilicon Co., Ltd.
Yongxiang New Energy refers to Sichuan Yongxiang New Energy Co., Ltd.
Inner Mongolia Tongwei refers to Inner Mongolia Tongwei High-purity Crystalline Silicon Company
Yunnan Tongwei refers to Yunnan Tongwei High-purity Crystalline Silicon Company
Tongwei New Energy refers to Tongwei New Energy Co., Ltd.
Hefei Solar refers to Tongwei Solar (Hefei) Co., Ltd.
Anhui Solar refers to Tongwei Solar (Anhui) Co., Ltd.
Chengdu Solar refers to Tongwei Solar (Chengdu) Co., Ltd.
Meishan Solar refers to Tongwei Solar (Meishan) Co., Ltd.
Tongyu Property refers to Chengdu Tongyu Property Management Co., Ltd.
Tongwei Media refers to Chengdu Tongwei Culture Media Co., Ltd.
Phase I 16 GW High-
Project of Tongwei Global Innovation Base with an annual capacity
efficiency Cell Project of refers to
of 16GW high-efficiency solar cells (Pengshan Phase I)
Pengshan Solar
Shuangliu 25GW TNC
refers to Phase V 25 GW High-efficiency Solar Cell Project in Chengdu
Project
The project with an annual capacity of 16 GW high-efficiency solar
Meishan 16GW TNC Project refers to
cells (Meishan Phase IV)
120,000-ton High-purity
Polysilicon Project of Phase I 120,000-ton High-purity polysilicon project of Sichuan
refers to
Yongxiang Energy Yongxiang Energy Technology Co., Ltd.
Technology
200,000-ton High-purity
Phase II 200,000-ton high-purity polysilicon project of Yunnan
Polysilicon Project in refers to
Tongwei
Yunnan
200,000-ton High-purity
Phase I 200,000-ton high-purity polysilicon project of Inner
Polysilicon Project in Inner refers to
Mongolia Silicon Energy
Mongolia
Sichuan Huaxin refers to Sichuan Huaxin (Group) CPA (Special General Partnership)
A measure that indicates the ability of solar cells to convert light
Energy conversion efficiency refers to
energy into electrical energy
Convertible bonds refers to Convertible company bonds
W refers to Watt, the unit of power
Units of power, 1 KW = 1000 W, 1 MW = 1000 KW, and 1 GW =
KW, MW, and GW refers to
1000 MW
High-purity Polysilicon refers to High-purity metal silicon with purity greater than 99.9999999%
A cell produced with M10 silicon wafer (with a length of 182 mm),
182 mm cell refers to whose area is 35.34% larger than that of a cell produced by the
conventional M2 silicon wafer (with a length of 156.75 mm).
A cell produced with M12 silicon wafer (with a length of 210 mm),
210 mm cell refers to whose area is 80.5% larger than that of a cell produced by the
conventional M2 silicon wafer (with a length of 156.75 mm).
Passivated Emitter and Rear Contact, a high-efficiency crystalline
silicon solar cell structure, where a passivation layer of AL2O3 or
PERC Cell refers to
SiNx is added on the back side of the cell to deal with the high carrier
recombination on the back side of all aluminum back surface field
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solar cells, and then the film will be opened to make the aluminum
back surface field effectively contact with the silicon substrate.
Interdigitated Back Contact, a high-efficiency solar cell structure.
The front side only has a passivation and anti-reflection coating
without any grating electrodes with both positive and negative poles
crossed on the back side. The biggest feature of an IBC cell is that
IBC Cell refers to
both the PN junction and metal contact are on the back side so that
the front side is protected against from the metal shading, which
provides more effective power generation area and therefore helps
increasing the energy conversion efficiency.
Tunnel Oxide Passivated Contact, where an ultra-thin tunnel oxide
and a heavily doped polysilicon thin film are prepared on the surface
TOPCon Cell refers to of the cell to form a passivation contact structure, thus increasing the
open-circuit voltage and short-circuit current of the cell and then
improving the energy conversion efficiency.
Hetero-junction with Intrinsic Thin-layer, a high-efficiency
crystalline silicon solar cell structure, a hybrid solar cell made of
crystalline silicon substrate and amorphous silicon thin film, i.e.
adding a non-doped (intrinsic) hydrogenated amorphous silicon thin
HJT Cell refers to film between P-type hydrogenated amorphous silicon and N-type
hydrogenated amorphous silicon and N-type silicon substrate. HJT
cells are welcomed due to their low process temperature, good
passivation effect, high open-circuit voltage and double-sided power
generation.
A dual-junction solar cell, formed by stacking perovskite solar cells
and crystalline silicon solar cells, maximizes the utilization of
sunlight for higher conversion efficiency because the wide-bandgap
perovskite absorbs short to mid-wavelength light, while narrow-
Perovskite/silicon stacked bandgap crystalline silicon absorbs mid to long-wavelength light.
refers to
solar cell Through optimization in bandgap matching, overall optical
management, carrier exchange layers, and other aspects, the
conversion efficiency of this dual-junction solar cell can exceed the
Shockley-Queisser limit of single-junction solar cells, achieving over
30%.
The percentage of the total output power of the module to the cell
CTM value refers to power shows the degree of module power loss. A higher CTM value
indicates a smaller degree of module package power loss.
Tongwei PERC Cell, a Tongwei solar cell designed with PERC
TPC refers to
technology.
Tongwei N-passivated Contact Cell, an advanced solar cell utilizing
type -n passivated contact technology developed by Tongwei,
TNC refers to
featuring Tongwei’s proprietary PECVD polysilicon deposition
technology to enhance conversion efficiency.
Tongwei Back Contact Cell, a Tongwei solar cell designed with back
TBC refers to
contact technology.
Tongwei HJT Cell, a Tongwei solar cell designed with HJT
THC refers to
technology.
A large spanning support consisting of prestrained flexible rigging
Flexible support refers to
structures that can increase the land utilization.
Novel busbars upgraded from conventional busbar structure by
redesigning the surface with V-grooves which allow incident light on
Reflective busbars refers to the surface to be directionally reflected to the upper glass layer, and
further reflected onto the surface of the solar cell, thereby enhancing
the utilization efficiency of light by the photovoltaic module.
A global leader of research and consulting services in the renewable
InfoLink Consulting refers to
energy and technology sector
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IRENA refers to International Renewable Energy Agency
BNEF refers to BloombergNEF
CPIA refers to China Photovoltaic Industry Association
Antaike refers to Beijing Antaike Information Development Co., Ltd.
CSRC refers to China Securities Regulatory Commission
SSE refers to Shanghai Stock Exchange
Designated Disclosure China Securities Journal, Shanghai Securities News, Securities Daily,
refers to
Media STCN, and Economic Information Daily
Reporting period refers to From January 1, 2023 to December 31, 2023
The discrepancies in the significant digits between certain totals and the direct sum of their individual
components are attributed to rounding.
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Section II Company Profile and Major Financial Indicators
I. Company information
Full Chinese name 通威股份有限公司
Short Chinese name 通威股份
Full English name TONGWEI CO., LTD
Short English name TONGWEI CO., LTD
Legal representative Liu Shuqi
II. Contacts and contact details
Secretary of the Board of Directors Representative of Securities Affairs
Name Yan Ke Li Huayu
No. 588, Middle Section Tianfu Avenue, No. 588, Middle Section Tianfu Avenue,
Address High-Tech Zone, Chengdu, China (Sichuan) High-Tech Zone, Chengdu, China
Pilot Free Trade Zone (Sichuan) Pilot Free Trade Zone
Telephone 028-86168555 028-86168555
Fax 028-85199999 028-85199999
Email yank@tongwei.com lihy05@tongwei.com
III. Basic information
No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China
Registered address
(Sichuan) Pilot Free Trade Zone
In the third extraordinary general meeting held on November 16, 2016, the
Company discussed and resolved the Tongwei Co., Ltd Proposal on Changing
its Registered Address and Modifying its Articles of Association by agreeing to
change the registered address from No. 11, Forth Section of South 2nd Ring
Road, High-tech Zone, Chengdu” to “No. 588, Middle Section Tianfu Avenue,
Changes of the High-Tech Zone, Chengdu”.
registered address In the annual general meeting for the year 2021 held on May 16, 2022, the
Company discussed and resolved the Proposal on Modifying the Articles of
Association by agreeing to change the registered address from No. 588, Middle
Section Tianfu Avenue, High-Tech Zone, Chengdu to No. 588, Middle Section
Tianfu Avenue, High-Tech Zone, Chengdu, China (Sichuan) Pilot Free Trade
Zone.
No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, China
Office address
(Sichuan) Pilot Free Trade Zone
Post code 610041
Website http://www.tongwei.com.cn/
Email zqb@tongwei.com
IV. Information disclosure and site
China Securities Journal, Shanghai Securities News,
Media names and websites where the Company
Securities Daily, STCN, and Economic Information
disclose its annual reports
Daily
Stock exchange websites where the Company
www.sse.com.cn
disclose its annual reports
Location where the Company stores its annual
Securities Department
report
V. Stock information
Stock information
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2023 Annual Report
Previous stock
Stock type Stock exchange Stock name Stock code
name
Shanghai Stock
A - share 通威股份 600438
Exchange
VI. Other information
Sichuan Huaxin (Group) CPA (Special General
Name
Partnership)
Accountant firm
28th Floor, Jinmao Lidu South, No. 18, Ximianqiao
engaged by the Office location
Street, Chengdu
Company (domestic)
Signatory
Li Wulin, Tang Fangmo, and Xia Hongbo
accountants
Name China Securities Co., Ltd
10F, Taikang Group Tower, Building.1, Yard 16,
Office location
Sponsor that performs Jinghui Street, Chaoyang District, Beijing
continuous supervision Signatory
Li Puhai and Pu Fei
duties in the reporting representatives
period Continuous supervision period for offering of
Period of continuous
convertible bonds: from March 18, 2022 to
supervision
December 31, 2023
VII. Major accounting data and financial indicators within the latest three years
(I) Major accounting data
Unit: Yuan Currency: CNY
2022 YoY change 2021
Major accounting data 2023
After adjustment Before adjustment (%) After adjustment Before adjustment
Operating revenue 139,104,062,084.52 142,422,517,994.99 142,422,517,994.99 -2.33 64,829,996,083.91 64,829,996,083.91
Net profit attributable
to shareholders of the 13,573,900,132.37 25,733,777,019.25 25,726,447,236.27 -47.25 8,122,735,748.55 8,109,125,091.40
listed company
Net profit net of non-
recurring gain and loss
attributable to 13,613,305,529.94 26,554,703,512.74 26,547,373,729.76 -48.73 8,401,303,571.04 8,387,692,913.89
shareholders of the
listed company
Net cash flow
generated from 30,679,303,971.17 43,817,909,631.70 43,817,909,631.70 -29.98 7,474,393,433.33 7,474,393,433.33
operating activities
2022 close YoY change 2021 close
2023 close
After adjustment Before adjustment (%) After adjustment Before adjustment
Net assets attributable
to shareholders of the 61,528,838,529.70 60,793,209,105.63 60,797,263,389.21 1.21 37,171,636,240.29 37,183,020,306.85
listed company
Total assets 164,363,161,459.66 145,574,988,754.45 145,243,793,631.19 12.91 88,196,637,766.27 87,895,197,228.99
(II) Major financial indicators
2022 2021
Major financial indicators 2023 After Before YoY change (%) After Before
adjustment adjustment adjustment adjustment
Basic earnings per share (yuan/share) 3.0151 5.7166 5.7149 -47.26 1.8044 1.8014
Diluted earnings per share (yuan/share) 2.8737 5.4905 5.4889 -47.66 1.8044 1.8014
Basic earnings per share net of non-recurring gain and loss
3.0239 5.8989 5.8973 -48.74 1.8663 1.8633
(yuan/share)
Weighted average return on net assets (%) 22.59 52.38 52.36 - 29.79 ppts 24.20 24.14
Weighted average return on net assets excluding of non-
22.66 54.05 54.03 - 31.39 ppts 25.03 24.97
recurring gain and loss (%)
Note on major accounting data and financial indicators within the latest three years by the end of reporting
period
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2023 Annual Report
"√Applicable" "□ Not applicable"
On December 13, 2022, the Ministry of Finance issued Interpretation No. 16 of the Accounting
Standards for Business Enterprises (“Interpretation No. 16”), which stipulates the following: ① The
accounting treatment of deferred income tax related to assets and liabilities arising from individual
transaction does not exempt initial recognition; ② The accounting treatment of the income tax impact of
dividends related to financial instruments classified as equity instruments by the issuer; ③ The
accounting treatment of cash-settled share-based payments changed by enterprises to equity-settled share-
based payments. Among these ① is effective from January 1, 2023, and ② and ③ are effective from
the date of publication.
VIII. Differences between accounting data under domestic and foreign accounting standards
(I) Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under International Accounting
Standard and China Accounting Standard
"□Applicable" "√ Not applicable"
(II) Difference in net profit and net assets attributable to shareholders of the listed company
contained in the financial statements disclosed simultaneously under Foreign Accounting
Standard and China Accounting Standard
"□ Applicable" "√Not applicable"
(III) Note on differences between China and foreign accounting standards:
"□ Applicable" "√Not applicable"
IX. 2023 major financial data by quarters
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan - Mar) (Apr - Jun) (Jul - Sept) (Oct - Dec)
Operating revenue 33,244,592,718.88 40,823,564,536.77 37,352,377,483.89 27,683,527,344.98
Net profit attributable to shareholders of the
8,601,459,571.72 4,668,783,176.13 3,031,327,672.30 -2,727,670,287.78
listed company
Net profit net of non-recurring gain and loss
attributable to shareholders of the listed 8,504,187,971.06 4,116,120,155.25 3,021,302,115.64 -2,028,304,712.01
company
Net cash flow generated from operating
2,245,474,956.52 18,910,658,621.43 -131,265,161.72 9,654,435,554.94
activities
Note on differences between these quarterly data and data contained in disclosed regular reports
"□ Applicable" "√Not applicable"
X. Non-recurring gain and loss items and amounts
"√ Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Notes (if
Non-recurring gain and loss items 2023 amount 2022 amount 2021 amount
applicable)
Gain or loss on from disposal of non-
current assets, including the reversal of
28,747,409.32 -12,315,759.20 -77,844,159.34
previously recognized impairment loss
provision for assets
Government grants included in current
profit or loss, but excluding government
grants that are closely related to the
163,223,026.68 387,940,097.37 345,025,134.17
normal operating activities of the
Company, have a lasting impact on the
Company's profit or loss, and to which the
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2023 Annual Report
Company is entitled under national
policies and regulations.
In addition to the effective hedging
business related to the normal operating
activities of the Company, the fair value
gain and loss from held-for-trading
17,273,678.45 -130,149,063.69 54,403,941.63
financial assets and liabilities held by a
non-financial company as well as gain or
loss on the disposal of financial assets and
liabilities
The profit when the investment cost of
acquiring subsidiaries, associates, and
joint ventures by a company is less than
the fair value of the identifiable net assets 1,551,526.45
acquired at the time of investment
acquisition, which the investing entity is
entitled to receive
Non-operating revenue and expenses
-240,774,570.85 -1,235,055,137.99 -444,426,951.82
other than aforementioned items
Less: Effects of income tax 921,933.88 -156,512,227.43 163,036,399.95
Effects of minority interest (after tax) 8,504,533.74 -12,141,142.59 -7,310,612.82
Total -39,405,397.57 -820,926,493.49 -278,567,822.49
Where the Company defines an item and the item has a significant amount not listed in the
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the
Public No.1 - Non-Recurring Gain and Loss Items as a recurring gain and loss item, or defines an item
listed in Explanatory Announcement on Information Disclosure for Companies Offering Their Securities
to the Public No.1 - Non-Recurring Gain and Loss Items as a recurring gain and loss items item, notes
should be provided.
"□ Applicable" "√Not applicable"
XI. Items measured at fair value
"□ Applicable" "√Not applicable"
XII. Others
"□ Applicable" "√Not applicable"
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2023 Annual Report
Section III Management Discussion and Analysis
I. Operation discussion and analysis
In 2023, the global economy experienced a slow recovery with a year-on-year decline in growth rates.
The global landscape continued to present challenges, with major economies such as the United States
and Europe maintaining stringent monetary policies. Financial markets remained volatile and uncertain,
while geopolitical conflicts persisted and even escalated. Manufacturing activity was on a downturn, and
international trade growth remained sluggish. Economic recovery showed significant regional disparities.
Additionally, issues such as energy crises, food security, and climate change remained pressing concerns
for the world. China's economy was still in a phase of transition, characterized by a dynamic, sometimes
turbulent journey towards new growth drivers. With a GDP exceeding 126 trillion yuan for the year,
marking a 5.2% year-on-year growth, the country maintains a prominent position among the world’s major
economies. China’s contribution to global economic growth is expected to exceed 30%. Notably, exports
of cutting-edge products such as electric passenger vehicles, lithium-ion batteries, and solar panels—
representing the “new three”—have surpassed the trillion-yuan milestone, with an impressive year-on-
year growth of 29.9%.
In the reporting period, the photovoltaic industry, in which the Company operates, continued its rapid
development, although prices across the supply chain significantly declined due to the release of a large
supply. In contrast, the feed industry showed clear differentiation: while livestock and poultry feed
maintained high levels due to high quantity of pigs and improved poultry farming, aquatic feed production
decreased significantly due to subdued demand at the end market. In the context of challenging and
pressured conditions, the Company firmly focused on its two main sectors: photovoltaics, and agriculture
and animal husbandry. We continued to enhance and consolidate our core competencies in technology,
quality, scale, and cost, achieving positive operating results. In 2023, our shipments of high-purity
polysilicon and solar cell products ranked the world's first again, while module shipments entered the top
five across the world (according to InfoLink Consulting). Feed sales remained steady with incremental
progress, resulting in a year-on-year increase in profits. However, increased sales volume did not offset
the negative effect of significant downturn in prices across the photovoltaic industry chain. Concurrently,
the Company actively promoted technological innovation within the photovoltaic industry, aligning with
market trends. Based on prudent principles, impairment charges were recorded for major assets related to
PERC cells. The Company achieved a full-year operating revenue of 139.104 billion yuan, a decrease of
2.33% year-on-year, with a net profit attributable to shareholders of the listed company of 13.574 billion
yuan, down by 47.25% year-on-year. Adjusted net profit attributable to shareholders of the listed company,
excluding non-recurring gains and losses, was 13.613 billion yuan, down by 48.73% year-on-year.
(I) Feed and industry chain
After more than 40 years of continuous development, the feed industry has evolved into a stage of
scale and centralization, toward high-quality growth. In 2023, feed producers faced heightened operational
pressures due to factors including diminished profitability in farming, ongoing expansion of farming scale,
and sustained declines in demand for market-oriented feed procurement. Specifically, aquatic feed
production declined by 4.9% year-on-year to 23.444 million tons, affected by factors such as reduced
feeding by aquaculture farms, delayed stocking, reduced stocking quantities, and even abandonment of
farming. While pig feed saw a 10.1% year-on-year increase to 149.752 million tons, driven mainly by high
quantity of pigs, this growth was largely from feed produced by farming conglomerates. Professional feed
producers continued to face intense competition. Meanwhile, the raw material costs, a significant concern
for feed producers, has been steadily rising in recent years. Although there was a slight overall decline in
2023, they remained at historically high levels with significant differentiation and substantial fluctuations.
This trend placed increasingly higher demands on the purchasing capability of feed producers.
The Company has consistently maintained a keen insight into emerging industry trends. Since 2020,
after adopting the “quality policy” approach, we have pursued technological and marketing
transformations. With the goal of “maximizing farming efficiency,” we have unified the awareness and
behavior of all employees, controlling product quality through specialization, standardization, and scale
across the entire process of design, manufacturing, and usage. This approach has enabled us to build core
competitiveness focused on minimizing production costs, ensuring the highest product quality, and
optimizing farming benefit. After nearly four years of continuous transformation and breakthroughs, we
have achieved significant results in various aspects including product quality, customer recognition,
benefit per person, and comprehensive costs. These accomplishments have made important contributions
to the Company’s growth in profitability in recent years. In 2023, building upon the accumulated reforms
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2023 Annual Report
from previous years, the Company embarked on the initiative to create Tongwei Year of Excellence in
Product. With a focus on a product positioning of “stable raw materials, and consistent quality”, the
Company further advanced its feed business to serve customers in maximizing farming efficiency, yielding
positive market feedback. For the entire year, the Company sold 7.4134 million tons of feed, marking a
3.05% increase compared to the previous year.
1. With the full implementation of the Year of Excellence in Product, the marketing team
centered its efforts around maximizing farming efficiency, promoting the Company’s product
reputation.
In 2023, the Company officially launched the Year of Excellence in Product around maximizing
farming efficiency. Continuing to drive marketing transformation, the Company showcased its
comprehensive competitiveness and the end-farming effects of its products through means such as home-
field marketing, farming competitions, and case studies. This further established and promoted the
reputation of the Company’s products. In the livestock and poultry feed business, the Company continued
to focus on developing large-scale customers and deepening strategic cooperation with farming
conglomerates, having achieved steady sales growth through stable and excellent product quality and
professional technical services. In the aquaculture feed business, the Company employed methods such as
labeling digestible protein content, promising feed coefficients, conducting bait soaking experiments with
users, and disclosing actual farming yields to all farmers. Through these measures, farmers were invited
to supervise and verify the quality of Tongwei products, which showcased the Company’s commitment to
product quality. Capitalizing on launch meeting for the Year of Excellence in Product, the Company started
nationwide events including the Spring Fish Protection Competition and the Spring Seedling Culture
Competition, attracting nearly 15,000 participants nationwide. These events not only addressed farmers’
challenges but also fostered solidarity during difficult times, earning widespread market recognition for
the Company. As a result, the Company's aquaculture feed business achieved outstanding operational
results, particularly evident in the fourth quarter with a remarkable 15% year-on-year increase in sales
volume despite the overall industry downturn.
2. Maintaining a commitment to stable raw materials and consistent quality, the procurement
team prioritized cost competitiveness to enhance the comprehensive competitive edge of the supply
chain.
Faced with the challenges imposed by substantial price fluctuations of commodity agricultural
products in 2023, the Company guided by the quality policy and aligned with the objectives of the Year of
Excellence in Product, emphasized the enhancement of cost competitiveness in its raw material
procurement. This strategic focus led to continuous breakthroughs in key metrics such as raw material
costs, inventory turnover days, and bulk rates, reinforcing the Company’s overall competitive advantage
in the feed supply chain. In the reporting period, the Company leveraged a coordinated mechanism among
technology, quality control, and procurement to secure high-quality raw materials. While ensuring product
quality, the Company optimized product formulations to maximize farming efficiency for end-users.
Furthermore, by giving full play to the specialized market analysis system, the Company accurately
assessed market trends in raw materials, identified optimal procurement opportunities, and achieved
significant cost advantages relative to the industry in the procurement of various key raw materials.
The diversification and globalization of the supply chain channels have further strengthened the
Company’s cost competitiveness. For many years, the Company has remained committed to strategic
procurement of raw materials and sourcing directly from factories. In 2023, strategic procurement
accounted for an increased proportion of 77%, with ongoing diversification of international procurement
channels. The number of countries from which high-value raw materials are imported has been expanded
to 18, with a year-on-year increase of 169%. This strategy has ensured the supply of key materials while
reducing costs.
3. Advancing the second phase of standardization effort, the production team developed
intelligent feed factories to continue optimizing production indicators.
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Since 2020, the feed production system within the Company has begun to focus on standardization
efforts. Through the participation of all staff in the first phase of standardization efforts, comprehensive
measures were taken to address on-site issues, standardize VI signage, and carry out checklist management,
resulting in a significant improvement in on-site management and establishing a model of standardized
management in the feed industry.
The second phase focuses on promoting comprehensive cost reduction and quality improvement in
feed production through production automation, business digitization, and operational standardization.
This has resulted in a replicable and scalable feed production management mode, paving the way for
simplified production operations, transparent production management, and cost reduction with improved
product quality in the industry. In 2023, building upon our established achievements, the Company
maintained its focus on advancing the second phase of standardization efforts. We fully integrated the
Amoeba mechanism to enhance production competitiveness indicators. Furthermore, we embarked on the
independent development of intelligent feed factories by leveraging self-developed technologies, self-built
systems, and our own intellectual property rights. Through standardized and intelligent production
processes, we ensure leading and consistently high quality while achieving cost reduction and efficiency
improvement.
4. Exploring new drivers of growth in agriculture and animal husbandry, we saw our industry
chain business develop steadily and robustly.
While maintaining a focus on the feed business, the Company capitalizes on opportunities presented
by the shift towards intensified aquaculture and the rising demand for premium aquatic products and
leverages its expertise in the fisheries sector to nurture its shrimp farming operations and expands its
presence in the food market, enhancing the overall competitiveness of its agriculture and animal husbandry
business. In the reporting period, the Company remained steadfast in its approach to industrialized shrimp
farming, emphasizing systematic processes, farming modes, equipment optimization, production
management, and engineering development. Following a philosophy of steady advancement, the Company
continuously evaluated its strategies. Significant breakthroughs were made in critical core technologies,
including recirculating water treatment processes, automated shrimp shell recovery, and the development
of intelligent feeding systems, leading to the formation of 12 standardized operational protocols. In 2023,
against the backdrop of a lack of mature, large-scale cases in the industry, the Company successfully
launched the first phase of the Dongying Tongwei Fishery project with a 10,000-ton annual production
capacity, making it the largest recirculating water shrimp farming base in the country. The initial 1,000-
ton project achieved a yield of 15.8 kg per cubic meter, far surpassing the industry average and marking a
step towards large-scale validation. In the food business sector, anchored by the Tongwei Fish brand, the
Company steadfastly implements the Three Fish and One Shrimp development strategy. Embracing a
commitment to high-quality positioning and the “coming and going out” brand promotion strategy, the
Company has invited nearly 400 renowned catering enterprises nationwide to collaborate on long-term
partnerships. Through its “going out” approach, the Company has unveiled a fresh image at various large-
scale exhibitions, airports, high-speed railway stations, and urban commercial centers, comprehensively
disseminating the brand value of Tongwei Food. In the reporting period, the Company’s food business
witnessed a double-digit increase in sales volume for both aquatic and livestock products in the domestic
market. Specifically, sales revenue from processed aquatic products surged by 64% year-on-year, while
sales volumes of pork and poultry products increased by 20% and 7.8% respectively compared to the
previous year. The export of tilapia maintained the Company's position as the largest supplier to the United
States, with sales volumes increasing by 7% compared to the previous year.
(II) PV business
Building upon several years of consecutive high-speed growth, the global photovoltaic newly
installed capacity in 2023 once again exceeded market expectations, reaching 444GW, a year-on-year
increase of 76% (BNEF data). China made a significant contribution to the newly installed capacity, with
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explosive growth driven by a combination of factors including unexpectedly sharp price declines in the
upstream industry, accelerated construction of powerplants in the post-pandemic era, and the concentrated
commissioning of large-scale wind and solar projects. China’s newly installed capacity reached 216.88GW,
representing a year-on-year increase of 148% and maintaining its position as the world’s top installer for
the 11th consecutive year. Despite sustained demand growth, a significant amount of new capacity was
released into the market during the year, leading to a gradual emergence of supply-demand imbalance and
substantial declines in industry chain prices.
Given the expansive growth opportunities in the photovoltaic industry and our competitive
advantages, we remain steadfast in advancing our development plan for high-purity polysilicon and solar
cell businesses from 2024 to 2026. We are intensifying our investment in research and development,
enhancing lean management practices, and further solidifying our global leadership in high-purity
polysilicon and solar cell sectors. Additionally, we continue to expand our module business both
domestically and internationally, leveraging high-quality photovoltaic products to drive global energy
transformation.
1. High-purity polysilicon
In 2023, the high-purity polysilicon segment experienced a peak in the release of new production
capacity, leading to a rapid shift in the supply-demand relationship from tight to loose. As a result, product
prices significantly declined. According to statistics from the National Ministry of Industry and
Information Technology, domestic production of high-purity polysilicon exceeded 1.43 million tons in
2023, representing a year-on-year increase of 66.9%. According to Antaike, the average price of
monocrystalline dense materials decreased from 176,200 yuan/ton at the beginning of the year to 58,300
yuan/ton at the end of the year, marking a decline of 66.91%. The industry as a whole faces operational
pressure and notable differentiation. Some companies struggled with unsold products, operational losses,
and were compelled to postpone or cancel investment projects. As a global leader in high-purity
polysilicon, the Company has a current production capacity of 450,000 tons [1] and additional capacity of
400,000 tons under construction. In the reporting period, the Company continued to strengthen and
enhance its core competitive advantages under the themes of safety and stability, improvement and
enhancement, and team building. Achieving full production and sales capacity for high-purity polysilicon
throughout the year, sales reached 387,200 tons, marking a year-on-year increase of 50.79%. The
Company's global market share surpassed 25%.
Safety in production and stable operations have remained the foremost priorities in the high-purity
polysilicon manufacturing. In recent years, the Company's high-purity polysilicon segment has
experienced rapid growth, leading to a significant increase in projects, organizational structure, and
personnel. This expansion has resulted in heightened requirements for production management. In the
reporting period, the Company remained focused on ensuring safety and stability by establishing
comprehensive standards and protocols. It prioritized enhancing the risk identification and emergency
response capabilities of all employees as part of its safety initiatives. By continually refining its distinct
safety management system, the Company achieved a notable milestone of zero severe production accidents
for the year. Regarding capacity development, the 120,000-ton high-purity polysilicon project of
Yongxiang Energy Technology reached its full capacity during the fourth quarter of the reporting period.
Additionally, the Company efficiently progressed with the construction of the 200,000-ton high-purity
polysilicon projects in Yunnan and Inner Mongolia, utilizing the eighth-generation Yongxiang Method' as
planned. The Yunnan project, the world's first 200,000-ton project in the field of high-purity polysilicon,
is expected to commence production in the second quarter of 2024. The Inner Mongolia 200,000-ton
project is projected to commence production in the third quarter of 2024. Upon completion, the Company's
[1] The completion of some high-purity polysilicon projects and equipment upgrades and renovations have resulted in production capacity
increase, and as of the end of the reporting period, the Company's high-purity polysilicon production capacity reached 450,000 tons.
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in-production capacity for high-purity polysilicon will reach 850,000 tons. With the continuous expansion
of its high-purity polysilicon capacity, in the reporting period, the Company also planned supporting
metallurgical-grade silicon projects in Inner Mongolia and Sichuan. While ensuring raw material supply
for the Company, these projects deeply support the iterative upgrade of the industrial chain, aiming to
create the most competitive integrated photovoltaic industry structure.
Based on years of operational experience, continuous research and development investment, and
technological breakthroughs, the Company has continuously optimized its product quality and cost levels.
Currently, the monthly output of N-type products has accounted for over 90% of the total monthly output.
The 1,000-ton/year electronic-grade polysilicon products, usable for the semiconductor industry, have
passed verification by domestic and overseas customers, and overseas deliveries have been achieved. In
2023, the Company concentrated on tackling technical bottlenecks and addressing specific challenges
through dedicated research initiatives. This resulted in further decreases in several consumption indicators.
In the reporting period, the average production cost of high-purity polysilicon products decreased to below
42,000 yuan per ton, significantly below the industry average. The Company has also maintained long-
term cooperation relationships with customers through equity partnerships, long-term contracts, and other
models. This has led to the formation of a stable and high-quality customer base. Thanks to its excellent
product quality, cost control capabilities, and stable supply chain partnerships, the Company's high-purity
polysilicon business recorded a net profit of over 45,000 yuan per ton in 2023, despite the significant price
reductions in the product. This demonstrates its strong risk resilience and continues to solidify its position
as a global leader in high-purity polysilicon sector.
2. Solar cells
The solar cell segment saw a surge in the expansion of N-type production capacity in 2023. With the
gradual release of TOPCon cell capacity, this type rapidly captured market share, thereby compressing the
market space for PERC products. With the increased supply of N-type cells, the prices have also
plummeted significantly, with a decrease of up to 60% in prices throughout the year, according to CPIA.
The Company stands as the global leader in solar cell manufacturing and sale, maintaining its top spot in
global solar cell shipments for seven consecutive years, according to InfoLink Consulting. It leads the
industry in capacity, production metrics, research and development, among other areas. In the reporting
period, the Company efficiently advanced the construction of N-type solar cell capacity, closely
monitoring market supply and demand dynamics, seizing market opportunities, and achieving full
production and sales. Total solar cell sales for the year reached 80.66 GW (including self-use), marking a
year-on-year increase of 68.11%.
As a leader in the development of TOPCon PECVD technology, the Company excels in indicators
such as conversion efficiency, yield, and non-silicon costs. It has been instrumental in driving the gradual
adoption of PECVD technology as an industry standard. According to InfoLink Consulting, by the end of
2023, over half of the constructed and planned capacity in the industry utilizes this technological route. In
the reporting period, the Company employed cutting-edge technologies including high-resistance emitters
and advanced metallization for its TNC cells which achieve an average conversion efficiency of 26.26%
in the latest mass production. The modules made of these cells showcased a remarkable power increase of
over 30W compared to traditional PERC double-sided modules, with a corresponding enhancement of 3-
5% in electricity generation per cell. Alongside these advancements, the Company implemented refined
management practices to optimize production processes and reduce consumption. As a result, non-silicon
costs have now decreased to approximately 0.16 yuan/watt. As the cost-effectiveness of TNC cells
becomes increasingly evident, market demand is rapidly surging. In response, the Company has advanced
the upgrade of existing PERC capacity and the construction of new TNC capacity. It is anticipated that
approximately 38GW of PERC capacity will be gradually transformed by 2024, with an additional 16GW
and 25GW of TNC cell capacity to be added at the Meishan and Shuangliu Bases, respectively. By the end
of 2024, the TNC cell capacity is projected to exceed 100GW, ensuring the Company’s leading position
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in capacity structure.
In terms of new cell technologies, the Company closely monitors market changes and maintains
parallel development across multiple technological routes to ensure its leading position in the industry. In
the reporting period, the Company implemented cost-reducing measures such as introducing 110-
micrometer thin silicon wafers, low-wet-weight silver-coated copper pastes, and 0BB technology in the
THC pilot line. Simultaneously, it sought differentiation breakthroughs in copper interconnect, achieving
positive progress in areas such as patterning, metallization, and product reliability. Combined with its
advanced module technology, the Company broke the power record for HJT modules six times, with the
highest power exceeding 755W (210-66 format). Meanwhile, the Company continues to increase its R&D
investment in cutting-edge technologies such as back-contact cells, perovskite/silicon stacked cells, and
has achieved phased results. Among them, the highest efficiency of the P-type TBC pilot line batch reached
25.51%, and the highest efficiency of the N-type TBC pilot line batch reached 26.66%. The efficiency of
small-size perovskite/HJT stacked cells reached 33.08%. To continually leverage technological innovation
for enhancing corporate competitiveness, the Company embarked on constructing the Tongwei Global
Innovation R&D Center in the reporting period, with the center expected to be operational in 2024. The
center is positioned to explore various potential breakthroughs in mainstream photovoltaic technologies.
Upon completion, it will stand as an integrated R&D workshop boasting the industry's largest workshop
area, highest pilot capacity and the most upgradable capabilities. It will be complemented by advanced
material testing and product reliability testing centers.
3. Modules
In 2023 which marked the first full operational year for our integrated module business, we achieved
remarkable success amidst a fiercely competitive market landscape. Our module business demonstrated
significant advancements in capacity, technology, and market expansion: rapid expansion of production
capacity ensured effective quality and supply; comprehensive adoption of advanced technologies further
bolstered product performance and competitiveness; strengthened market development capabilities and
brand influence led to a breakthrough in sales volume, reaching 31.11GW for the full year, a remarkable
year-on-year increase of 292.08%. According to InfoLink Consulting, our shipment volume entered the
global top five.
In 2023, the Company saw the successive operation of three advanced module manufacturing bases
in Yancheng, Jintang, and Nantong. Leveraging digitalization, informatization, and intelligent production
lines, as well as a comprehensive quality management system, we maintained at the forefront of the
industry in terms of production and operation efficiency, and product quality control capabilities.
Additionally, we have obtained multiple industry-recognized certifications, including ISO9001 Quality
Management System, ISO45001 Occupational Health and Safety Management System, ISO14001
Environmental Management System, IEC62941 Photovoltaic Modules for Ground-Mounted Power
Stations, and SA8000 Social Responsibility System. In the reporting period, the Company built a rich
product matrix encompassing differentiated cell technology routes such as TPC, TNC, THC, as well as
diverse module technologies. Additionally, it has completed the development of high-value rectangular
modules, while introducing efficient methods such as double-plated glass, reflective busbars, and gap
coating films. These measures are expected to meet the increasingly diverse application scenarios in the
global photovoltaic installation landscape and the demand for higher-power modules from end customers.
They lay a solid foundation for the further breakthrough of the Company's module business in various
markets worldwide.
In the reporting period, the Company seized the opportunity presented by the construction of large-
scale wind and solar bases in China. Leveraging its advantages in quality, quantity, and supply within the
industry chain, the Company successfully secured bids for multiple ground-mounted power station
projects, including those with major state-owned enterprises such as China Resources Power, Three
Gorges, and Power China. It established long-term strategic partnerships with large-scale state-owned
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clients while developing relationships with provincial energy entities and major private enterprises,
achieving comprehensive coverage of domestic centralized customers. In the domestic distributed market,
the Company maintained the strategy of focusing on key opportunities. It deepened cooperation with major
platform customers such as Skyworth, TrinaPower, Chint Aneng, and Sungrow, accelerating the
deployment of marketing channels both domestically and internationally. This rapid outreach to customers
significantly increased market share, with annual sales in the distributed market reaching 9.3GW. Both
sales volume and benefit per person were among the highest in the industry. In 2023, intensified
competition in overseas markets coupled with international trade barriers and geopolitical conflicts exerted
significant pressure on the export of solar modules from China. To navigate these challenges, the Company
focused on global brand promotion, enhancing key market channels, exploring untapped markets, and
maintaining relationships with core customers. We consistently ranked on the BNEF Tier1 PV Module
List, established an industry-leading supply chain traceability system from polysilicon to modules, and
obtained universally recognized certifications such as product carbon footprint, Ecovadis, UL, and over
20 country-specific certifications. Additionally, we successfully onboarded international renowned clients
and secured key projects, including signing our first 100MW overseas ground-mounted solar station. With
these achievements, our Tongwei Module brand has set sail across six continents, firmly establishing us
as a major global player in the solar module supply industry.
4. Aquaculture-Photovoltaic Integration PV powerplants
In the reporting period, the Company continued to focus on the development and construction of
large-scale Aquaculture-Photovoltaic Integration bases. Through systematic cost control and the reserve
of high-quality water surface resources, it has created an “ecological aquaculture + green energy” model
with core competitiveness, which can promote the coordinated development of industries, and moderately
develop tourism, leisure, and popular science areas. This has formed an organic integration of primary,
secondary, and tertiary industries, creating the Tongwei Solution in line with the new fisheries, new energy,
and new rural construction. This has effectively improved the added value of the industry. By the end of
2023, the Company constructed 54 PV plants basically supported by Aquaculture-Photovoltaic Integration
with a cumulative installed capacity connected to the grid being 4.07GW. The electricity settlement
amount in the year was 4.432 billion kWh, reducing 3.30 million tons of carbon emissions.
Leveraging its extensive expertise in the two major businesses, the Company has innovatively
developed a flexible support system solution with large span, high clearance, and zero deflection. This
system not only enhances the power output of floating photovoltaic modules but also ensures a reliable
environment for underwater fishing operations. In the reporting period, the Company collaborated with a
team from Central South University to propose standards for photovoltaic flexible support systems. This
initiative marks another milestone following the Company's leadership in the development of the world's
first Guide for Design and Installation of Photovoltaic Flexible Support Structures, making it the pioneer
in yet another photovoltaic flexible support standard. Moreover, this proposal represents the first-ever
photovoltaic flexible support standard adopted by the International Electrotechnical Commission (IEC).
Additionally, the 100MW Aquaculture-Photovoltaic Integration solar power project in Taishan was
selected as a model case for Improving the Efficiency of Land Use by the National Development and
Reform Commission and the National Energy Administration. As of the end of the reporting period, the
Company has obtained 29 patents related to flexible support structures and 27 patents related to automated
installation equipment for solar modules. In the reporting period, the Company aligned with national
directives aimed at expediting the establishment of a robust green, low-carbon, and circular economic
framework. Leading the industry, we spearheaded the launch of China's green certificate trading, and
through innovative long-term collaborations in green electricity trading, we aimed to expand the adoption
of green energy. These efforts contribute to the swift advancement of the domestic green energy market.
With the on-going development of technologies in the PV industry, the Company will further improve
the economic benefits of the Aquaculture-Photovoltaic Integration model through the use of efficient
modules, advanced designs and automatic construction. By adhering to the scale, cluster and benefit
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principle, the Company will advance the implementation of more Aquaculture-Photovoltaic Integration
projects for driving the fishery transformation, and producing more clean energy, thereby making its own
contribution to the green development of the country while achieving its economic benefits.
II. Industries where the Company operated in the reporting period
(I) Feed industry
The feed industry serves as a pivotal link between agriculture, animal husbandry, and livestock
processing industries. It boasts the highest level of industrialization within China's agricultural sector and
stands as the material foundation for modern animal husbandry. It has made significant contribution to
providing ample high-quality food for humanity. After more than 40 years of continuous development
since the Opening-up and Reform policy, the feed industry has developed a system with complete
categories and evolved into a stage of scale and centralization, toward high-quality growth. Depending on
the animals being fed, current feed mainly comprises pig feed, poultry feed, aquatic feed, ruminant feed,
pet feed, and other types. Among them, livestock and poultry feed accounts for approximately 85% of the
total feed volume, with relatively small differentiation and a mature market. As the proportion of self-
produced feed by farming customers increases, market competition intensifies. Aquatic feed represents
about 8% of the total feed volume. With the push for market competition and downstream aquaculture
integration, the Matthew effect is evident in the aquatic feed industry, leading to a continuous increase in
the concentration of top-tier players. In the reporting period, the feed industry presented the following
characteristics:
1. Feed production maintained steady growth, characterized by notable differentiation among
various types and livestock and poultry feed notably driving the overall volume increase.
In the reporting period, both the output value and total production volume of China's feed industry
continued growing steadily. Notably, pig feed and poultry feed recorded impressive growth rates, making
significant contributions to the overall increase in output. However, there was a year-on-year decline in
the production volume of aquatic feed. According to China Feed Industry Association, in 2023, the total
output value of China's feed industry reached 1,401.83 billion yuan, representing a year-on-year growth
of 6.5%. Specifically, the output value of feed products amounted to 1,272.11 billion yuan, marking a
year-on-year increase of 7.7%. Throughout the year, the total production of industrial feed in China
amounted to 321.627 million tons, marking a 6.6% year-on-year increase. This comprised 149.752 million
tons of pig feed, indicating a 10.1% year-on-year growth; 127.852 million tons of poultry feed, reflecting
a 5.35% year-on-year increase; 16.715 million tons of ruminant feed, showing a 3.4% year-on-year growth;
23.444 million tons of aquatic feed, experiencing a 4.9% year-on-year decline; 1.463 million tons of pet
feed, witnessing an 18.2% year-on-year increase; and 2.402 million tons of other feed, with a 7.6% year-
on-year growth.
2. As competition of overall capabilities among companies intensifies, industry concentration
has further heightened.
In the reporting period, major livestock species in the farming industry, such as pigs and aquatic
products, generally operated at a loss. Specifically, the pig industry experienced persistently low prices
with minimal fluctuations, resulting in the industry's first annual loss in several years. Meanwhile, certain
aquatic products faced pressure from both domestic oversupply and a surge in overseas imports, leading
to a significant decline in breeding willingness among farmers. The cash flow of livestock farmers
remained under sustained pressure, posing significant challenges for feed producers in terms of sales and
receivables. Although raw material prices in the industry generally declined year-on-year, they exhibited
significant fluctuations in the reporting period, placing higher demands on the purchasing expertise of feed
producers. Overall, as the industry continues its trend towards scale and centralization, the demand for
feed producers to enhance their comprehensive competitive capabilities in branding, technology, funding,
procurement, production, and other aspects remains on the rise. Consequently, weaker small and medium-
sized companies may gradually exit or undergo consolidation. According to China Feed Industry
Association, China had 1,050 feed producers of capacity greater than 100,000 tons in 2023, with an
increase of 103 from the previous year; the feed output from these producers reached 196.473 million tons
for a year-on-year increase of 13.0%, accounting for 61.1% of the total feed output in China, for a year-
on-year growth of 3.5 percentage points.
3. The continuous promotion of reduction and substitution was diversifying the feed
formulation structure and accelerating the pace of product innovation.
The main raw materials for feed production include soybeans (soybean meal) and corns. China
heavily relies on overseas imports for soybeans, with a self-sufficiency rate of less than 20%, which poses
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a significant threat to the country's long-term food security. As a result, seeking alternatives to soybean
meal has become a key strategic direction for the development of the feed industry in China. In the
reporting period, the Ministry of Agriculture and Rural Affairs officially issued the Three-Year Action Plan
for Reducing and Substituting Soybean Meal in Feed, which clearly outlines goals of low protein, low
soybean meal, diversification, and high conversion rate, and aims to guide the feed and livestock industries
in reducing the use of soybean meal. Additionally, the National Animal Husbandry Services has compiled
technical guidelines for reducing and substituting soybean meal in the feed of pigs, beef cattle, sheep, and
grass carp. Driven by policy incentives, industry players are continuously optimizing feed formulations,
leading to a trend of diversification in formulation structures. According to China Feed Industry
Association, in 2023, domestic feed producers witnessed a year-on-year decrease of 11.8% in soybean
meal consumption. The proportion of soybean meal in compound feed and concentrated feed decreased
by 2.6 percentage points compared to the previous year and the consumption of other meals including
rapeseed meal and corn gluten meal rose by 7.8% compared to the previous year. Alongside formulation
optimization, the innovation in new feed products has surged. In 2023, a notable increase was observed,
with 5 certificates issued for new feed additives and 1 for a novel protein feed. Moreover, 9 feed
ingredients were incorporated into the Feed Ingredient Catalog, and 5 new feed additive varieties into the
Feed Additive Catalog. Additionally, the applicability scope was widened for 1 feed ingredient and 2 feed
additive varieties.
(II) PV industry
PV is one of the strategic emerging industries in China. The photovoltaic industry has become an
important guarantee for global energy transformation and green development, growing much faster than
economic development and having huge market space. After years of twists and turns in the development,
China's photovoltaic industry has made a significant leap forward from “following” or “keeping pace” to
“leading the track”, and formed a complete industry chain with significant global competitive advantages,
making important contributions to the country and even the world's leapfrog development of renewable
energy. Against the backdrop of global energy transformation, with the continuous implementation of
energy conservation, emission reduction, and green development policies at home and abroad, the industry
is expected to maintain high-speed development in the future. In the reporting period, the PV industry
presented the following development characteristics:
1. The prices across the industrial chain saw a notable downturn, while installations surpassed
expectations yet again
In recent years, with the rapid increase in demand for photovoltaic installations, a massive influx of
capital has poured into the photovoltaic industry, accelerating capacity expansion. By the end of 2023, the
nominal capacity of each segment in the photovoltaic industry chain had exceeded 800 GW. With the
concentrated release of industry capacity, prices across various segments of the industrial chain have
rapidly declined in the reporting period. According to InfoLink Consulting, by the end of 2023, the average
selling prices of high-purity polysilicon, silicon wafers, solar cells, and modules had fallen by 80%, 58%,
60%, and 45% respectively compared to the beginning of the year. In the fourth quarter of 2023, prices of
silicon wafers, solar cells, and modules reached historic lows, with module prices entering the “1 yuan”
era, further enhancing the economic viability of photovoltaic power generation. Fueled by market
dynamics and policy incentives, global demand for photovoltaic installations continues to experience
robust growth. According to BNEF), the world's newly installed PV capacity in 2023 reached 444 GW,
marking a year-on-year increase of 76%. Data from the National Energy Administration also reveals that
in 2023, the newly installed photovoltaic capacity in China soared to 216.88GW, marking a remarkable
148.1% year-on-year increase, far exceeding initial market projections. Notably, in December alone, the
new capacity surpassed 50GW. With cumulative PV installations now surpassing hydropower,
photovoltaic energy has emerged as China's second-largest electricity source.
2. The industrial chain faced a severe supply-demand imbalance, leading to a clear trend of
survival of the fittest.
Driven by robust end-user demand and continuous release of newly-built capacity, each segment of
the industrial chain witnessed significant growth in output in the reporting period. According to China
Photovoltaic Industry Association, in 2023, China's production of polysilicon, silicon wafers, solar cells,
and modules reached 1.43 million tons, 622GW, 545GW, and 499GW, respectively, with year-on-year
growth rates of 66.9%, 67.5%, 64.9%, and 69.3%. Against this backdrop, intensified competition along
the industrial chain has led to rapid price declines, causing a reduction in corporate profitability. Some
companies already experienced operational losses, while market financing notably tightened. The survival
space for small and medium-sized enterprises further diminished, with accelerated elimination of outdated
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industry capacity looms. Additionally, there is a risk that new capacity plans may not materialize.
According to statistics, nearly ten listed companies announced delays or cancellations in capacity
production in the reporting period. Meanwhile, top companies leveraging advanced capacity, cost
management, cash reserves, and talent resources, demonstrated greater resilience during the “reshuffling”
of the industrial chain. As a result, they further increased their market share, solidifying a market landscape
where the strong become stronger within the industry.
3. The photovoltaic technology experienced vibrant growth, with the industrial advancement
of N-type technologies, led by TOPCon, accelerating.
In the reporting period, N-type technologies rapidly gained traction due to their high efficiency, low
degradation, and low power temperature coefficients. At the industry front, according to InfoLink
Consulting, N-type cell capacity represented over 95% of the newly installed capacity in 2023 and the
majority of this capacity was attributed to TOPCon cells. By the end of 2023, N-type capacity had surged
to account for 58% of the total industry capacity, marking an increase of 39 percentage points compared
to 2022. At the market front, SMM data reveals that N-type module tendering volume surged to 104GW
in 2023, representing 37% of the total domestic tendering volume. Moreover, the share of monthly
awarded volume skyrocketed from 14% in January to 67% in December. The comprehensive substitution
of N-type technology for P-type technology is unstoppable. At the same time, the higher quality standards,
complex production processes, and diverse sub-technologies of N-type products impose greater
requirements on companies’ R&D capabilities, process control levels, and production management
abilities.
4. Chinese companies explored international opportunities in the context of “Chinese
manufacturing for the world”.
In the reporting period, the Chinese photovoltaic industry maintained its undisputed global leadership
in the industrial chain, playing a pivotal role in driving new photovoltaic installations worldwide. In 2023,
China maintained a global market share of over 70% in each segment of the photovoltaic industry chain.
Exports of silicon wafers, solar cells, and modules from China saw significant year-on-year growth of
93.6%, 65.5%, and 37.9% respectively, reaching a total export value of 48.48 billion USD. Particularly
noteworthy is that solar cells have emerged as one of China's three top export categories. However, since
2023, certain European and American countries have implemented export restrictions and industrial
traceability measures on China's photovoltaic industry, and also introduced extensive support policies for
their domestic photovoltaic manufacturing sectors. Additionally, various international crises such as the
Red Sea crisis and conflicts in the Middle East have disrupted the stability of cross-border trade.
Consequently, many Chinese photovoltaic companies have started exploring new avenues for growth,
including establishing manufacturing facilities overseas. Several top companies have announced plans to
build new photovoltaic capacity in regions including the United States, the Middle East, and Vietnam.
Moreover, there is a noticeable trend of collaboration among upstream and downstream companies in the
industry chain venturing into international markets.
III. Businesses in the reporting period
Adhering to the vision of For Better Life and the corporate purpose of Striving for Excellence,
Contributing to Society, the Company mainly focuses on agriculture and new energy, thus forming a
business model of Agriculture (fishery) + PV integration and synergy. Its main businesses and their
positions in the industrial chain are shown in the figure below:
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PV power
generation
Monocrystalline Monocrystalline
Polysilicon Monocrystalline Monocrystalline silicon cells silicon modules
silicon rods silicon wafers
Livestock and Aquaculture-Photovoltaic
poultry feed Integration powerplants
Livestock and Livestock and
poultry babies Livestock and
poultry husbandry poultry processing
Aquatic seedlings Aquatic feed Aquatic processing
Aquatic husbandry Aquatic husbandry
Note: Core businesses of the Company are in the dashed boxes
(I) Main businesses and the operation models
In agriculture, the major business is the research and development, production and sales of aquatic
feed, livestock feed and other products to meet the needs of aquatic animals and livestock for growth.
Aquatic feed has always been the core product and the main profit source of the Company in agriculture
and animal husbandry business group. As of the end of the reporting period, the Company owned more
than 80 subsidiaries and branches involved in feed business with a business model of adopting on-site
production and establishing a peripheral sales coverage, while providing effective technical, financial and
other supporting services to farmers. Around the feed business, the Company was actively engaged in seed
breeding, husbandry, animal healthcare, food processing and trade which further completed the industry
chain and enhanced its comprehensive strength.
In new energy, the Company focuses on the research, production, and sales of high-purity polysilicon
and solar cells. As of the end of the reporting period, the Company had an annual capacity of 450,000 tons
for high-purity polysilicon, an annual capacity of over 95 GW for solar cells [2], and an annual capacity of
75 GW for modules [3 ]. The Company has manufacturing sites in Leshan, Baotou and Baoshan for
producing high-purity polysilicon products with locally sourced raw materials which are delivered to
downstream manufacturers of silicon wafers. In recent years, the Company has signed long-term sale
contracts with silicon wafer manufacturers. Regarding solar cells, the manufacturing sites in cities such as
Shuangliu, Jintang, Meishan and Hefei have their production plans arranged directly according to the
market demand with the products used for manufacturing of solar modules within the Company and also
sold to the both domestic and international manufacturers of modules. Leading technologies, quality and
cost control have allowed the Company to serve top ten PV module manufacturers across the world and
secure a long-term leading position in the industry. In terms of modules, relying on years of accumulation
in technology and market, and combined with the synergy benefit from high-purity polysilicon and solar
cells, it has established a competitive and large-scale module business system to provide high-quality
Tongwei module products for centralized and distributed PV systems across the globe. Customers cover
major domestic central state-owned power generation groups and more than 40 countries and regions
overseas.
On the comprehensive application, the Company focuses on the development and construction of
[2] In response to industry trends, the Company decommissioned some of its solar cell capacity while upgrading and expanding some other
capacity. With the new TNC cell project taken into account, the Company currently possesses a cumulative high-efficiency solar cell capacity of
95GW.
[3 ] Some workshops of the 25GW high-efficiency photovoltaic module manufacturing base project in Nantong are planned for phased
commissioning. Simultaneously, certain module projects are undergoing expansions based on economic viability principles and on existing
infrastructure. As of now, the Company has a total module production capacity of 75GW.
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large-scale "Aquaculture-Photovoltaic Integration" bases, strives to create a model of ecological farming
coupled with green energy and strengthens the coordinated development of industries. By screening high-
quality water surfaces and for ensuring electricity consumption, the Company explores novel aquaculture
ways with on-going advancements of the Aquaculture-Photovoltaic Integration bases in terms of scale,
professionalism and intelligence, which are expected to bring new profit sources for the Company, farmers
and other partners.
(II) Market positioning
In terms of agriculture and husbandry, the Company focuses on the scale-based professional
development of the feed business, with an annual feed capacity of over 10 million tons, and its sales
network covering most parts of the country and Southeast Asian countries such as Vietnam, Bangladesh,
and Indonesia. These make it a leading aquatic feed producer and an important livestock feed producer in
the world. Specifically, the Company has been holding a leading position in the sale volume of aquatic
feed, i.e., its core product. As a Key Leader in Agricultural Commercialization and a National Enterprise
Technology Center, the Company has received honors like the Second Prize of National Scientific and
Technological Progress Award, China Well-Known Trademark and China Quality Award Nomination
Prize. With high-quality products and efficient services for the years, the Company is well recognized in
the industry.
In the field of photovoltaics, the Company has a production capacity of 450,000 tons of high-purity
polysilicon, 95GW of solar cell capacity, and 75GW of module capacity, with world-leading product cost,
quality, and efficiency. It is an important participant and driver in the global photovoltaic industry. As of
now, the Company’s high-purity polysilicon production has ranked first in the world for several
consecutive years, with a global market share of over 25%. As a specialized solar cell producer, the
Company's cell shipments have been the world's number one for 7 consecutive years since 2017 (according
to InfoLink Consulting), and became the first company in the industry to accumulate over 200GW of cell
shipments. In terms of modules, the Company's shipment volume entered the global top five in 2023,
serving clients that include major domestic state-owned power generation groups and numerous countries
abroad. According to its production capacity planning, by 2024-2026, the Company's high-purity
polysilicon capacity will be expected to reach 800,000-1,000,000 tons, solar cell capacity reach 130-
150GW, and module capacity 80-100GW. The coordinated development and progress of all businesses
will continue boosting the company's industrial chain advantages and its core competitiveness will be
further enhanced, contributing to the global effort into carbon neutrality.
IV. Analysis of the core competitiveness in the reporting period
"√Applicable" "□ Not applicable"
(I) Clear strategic planning and positioning
The Company focuses on technological innovation and intelligent manufacturing in the main stages
of PV industry, advances the large-scale application of clean energy with zero emission, is committed to
creating a green healthy aquatic industrial chain to meet consumer demand for safe food, and makes every
effort to provide the public with high-quality products in all industries closely related to human life and
continuously improve the quality of human life. Based on the above strategic positioning, the long-term
development goal of the Company is "a world-class safe food supplier and a world-class clean energy
operator", and the short and medium-term development plan is "to build and consolidate the leading
position of global high-purity polysilicon, solar cells and aquatic feed."
(II) Leading capabilities of technical research and development
Regarding science and technology as the primary productive force, the Company attaches great
importance to technology research and development. For each business group, it has built a R&D team
led by experts with State Council Special Allowance and supported by increased investments, i.e., 10.419
billion yuan over the latest three years, with plenty of achievements applied in the market. This has helped
the Company create value.
The Company’s technology center in the agriculture and animal husbandry has a National Enterprise
Technology Center approved by five ministries and commissions including the National Development and
Reform Commission and the Ministry of Science and Technology. After years of development and
operation, the Center has established a complete organizational structure and operating mechanism for
technological research and innovation, with specialization in animal nutrition and feed, animal breeding
and cultivation, animal health care, automated farming facility project, aquatic and livestock product
processing, and other research and technology integration related to biotechnology. By transforming
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innovative research results into actual productivity, the Center provides a critical support for the
Company's development. The aquatic product research institute, special aquatic product research institute,
livestock and poultry research institute, animal health care research institute, facility fishery engineering
research institute, aquatic engineering center and testing center under the Center provide effective guide
on innovations with clear goals and detailed tasks and ensure the innovation results. As of the end of the
reporting period, the Company held 772 valid patents in the agriculture and animal husbandry business
group, led or participated in the formulation or revision of 20 national and industry standards, and received
honors such as the Second Prize of the National Science and Technology Progress Award.
The Company established a Photovoltaic Technology Center based on its research system in various
photovoltaic sectors. The center includes the branches of national technology centers at subsidiaries such
as Tongwei Solar (Chengdu) Co., Ltd. and Yongxiang Co., Ltd. It is supported by a research team primarily
consisting of industry experts. The center coordinates the joint R&D and integration of technologies in
various parts of the industry chain, having made technological achievements that rank the top level in the
industry.
In terms of high-purity polysilicon, after years of development, the Company has made a number of
achievements with independent intellectual property rights in the core technology fields such as cold
hydrogenation, large-scale energy-saving rectification, high-efficiency reduction, tail gas recovery,
trichlorosilane synthesis and anti-disproportionation, making it at the leading position in the industry
regarding all consumptions per unit of production. The share for N-type polysilicon has increased
dramatically. In terms of solar cells, the Company has gained a number of technological achievements
with independent intellectual property rights in core fields such as TNC and THC cells. It has been an
industry leader when it comes to the conversion efficiency of THC, TNC and TBC cells from mass
production. In terms of solar modules, in the reporting period, the Company maintained its focus on R&D
efforts for TNC technology. It successfully introduced multiple technology upgrades, including double-
glass modules, reflective busbars, gap film coating, and encapsulation with adhesive film. Furthermore,
advancements were made in areas such as 0BB technology and edge passivation.
As of the end of the reporting period, the Company held cumulative total of 1,823 valid patents in
the photovoltaic and new energy manufacturing sector. Throughout the year, the Company's involvement
in developing flexible monocrystalline silicon solar cell technology led to its publication in Nature, earning
the cover spot for the respective issue. Additionally, the Company's leadership in tube-type PECVD
technology resulted in two features on the cover of the 2023 annual and March monthly issues of Progress
in Photovoltaics (PIP) magazine. The innovative achievement of China's tube-type PE-Tox&Poly in the
industry filled a significant gap and garnered widespread recognition internationally, marking a
breakthrough and leadership in the TOPCon cell manufacturing technology segment. Furthermore,
Tongwei's High-efficiency Silicon Passivated Contact (TNC) technology was recognized for its pioneering
and leading technological advancements and was successfully selected for inclusion in the 2023
Photovoltaic Industry Innovation Achievement Promotion Catalog by the China Photovoltaic Industry
Association, making it the sole TOPCon cell technology selected within the industry.
In the reporting period, the Company constructed the Tongwei Global Innovation R&D Center in
Shuangliu, Chengdu. Aligned with the Company's strategic objectives, the center focuses on developing
high-efficiency monocrystalline silicon cells and reliable modules. Research areas cover key future
photovoltaic technologies, including TNC, THC, and TBC cells and modules, as well as perovskite/silicon
stacked solar cells/modules and copper interconnect metallization technology. This initiative aims to
provide technical support and drive the Company's technological advancements over the next 5, 10, or
even longer-term periods, while also contributing to the broader technological advancement of the industry
through Tongwei's efforts.
(III) Scale and cost advantage
The Company is a national key leading enterprise in agricultural industrialization, with presence
across China and Southeast Asia, and annual feed capacity of more than 10 million tons, which makes it
a leading aquatic feed producer and an important livestock feed manufacturer in the world. It has intensive
advantages in raw material purchasing, production organization and market expansion.
In the photovoltaic business group, the Company has established an annual production capacity of
450,000 tons for high-purity polysilicon, with an additional 400,000 tons currently under construction.
The investment cost per ten thousand tons has decreased to 500 million yuan, and consumption indicators
have shown consistent reductions. In the reporting period, the average production cost declined to below
42,000 yuan per ton. In terms of solar cells, through the upgrading of existing projects and the introduction
of new production capacities, it is projected that by the end of 2024, the Company will reach a production
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capacity exceeding 100GW for N-type cells, which will bolster the scale effect, with further optimization
of product technology and dimensional structure, thereby fortifying the competitive advantage in costs. In
terms of solar modules, the Company maintains a production capacity of 75GW, with all quality indicators
consistently leading the industry. Thanks to the dual drivers of comprehensive industrial support and
technological innovation, our production costs remain at the forefront.
(IV) Quality and brand advantages
Since its inception, the Company has developed a series of formula feeds that can meet the needs of
various aquatic animals through continuous R&D and improvement. After years of tests in the market, the
feed quality and market services of the Company have been highly recognized by farmers, which has
created one of the iconic brands in the domestic aquatic feed industry. At the same time, the Company has
made great efforts to build a well-known fresh fish brand — Tongwei Fish, and established aquatic and
livestock food processing bases in Hainan and Sichuan for processing food in strict accordance with the
requirements of the HACCP quality management system. As a result, the full-cycle quality monitoring
from source to dinner table has been realized, which has effectively enhanced the value and
competitiveness of the industrial chain.
The Company has improved the quality of its polysilicon products by developing technologies for
self-control of reduction processes, multiphase flow, cascaded utilization of reduction thermal energy, and
boron/phosphorus/carbon impurity removal. Its product quality is top-notch in the industry. The
conversion efficiency, yield rate, chip rate, CTM value, and other indicators of solar cells from the
Company are leading in the industry and have been widely recognized by customers, demonstrated by
multiple professional certifications at home and abroad. In terms of the solar modules, Tongwei's modules
consistently maintain Tier 1 status in Bloomberg's New Energy Finance Global PV Module Manufacturers
list. Our products have obtained certifications across Europe, South America, the Middle East, and the
Asia-Pacific region, totaling 32 system/product certificates from authorities like TUV and CQC. Honored
with the Platinum Award at the first Taihu Awards for Green Excellence, Tongwei is recognized as a leader
in the photovoltaic module field for its Low Carbon Contribution and Outstanding Quality. With our
products reaching over 40 countries and regions worldwide, including major domestic state-owned power
generation groups, our brand value continues to shine.
(V) Unique Aquaculture-Photovoltaic Integration model
Supported by the unique advantage of resource integration at the end customers, the Company has
created an innovative development model where solar electricity is generated above the water and fish
farmed under the water, which allows the green combination of intelligent fishery and clean energy
generation. In terms of fishery, the Company guides the intensive, intelligent and efficient development of
aquaculture through effective water surface modification, rational application of fishery facilities, and
optimization and innovation of aquaculture models. In terms of PV power generation, the Company
adheres to the cost strategic planning, and continuously reduces the installed cost of PV systems through
design optimization and technological innovation. The Aquaculture-Photovoltaic Integration development
model can promote the coordinated development of primary, secondary and tertiary sectors, integrate and
create a modern industrial park integrating new fishery, new energy, and new rural area, advance industrial
transformation and upgrading, and provide an effective way for the construction of new rural areas, which
has helped form a unique competitive model for the Company.
(VI) Corporate culture
An effective culture is an important support for the cohesion and creativity of the Company, and an
important part of the core competitiveness of the Company. The Company has a powerful culture where
Striving for Excellence Contributing to Society is the purpose; For Better Life the vision, which indicates
the value and goals of the Company; Honesty, Trust, Fairness and Excellence the management philosophy,
that is, being sincere and candid, winning trust by credibility, running business with fairness and legitimacy,
taking the lead with guaranteed excellence; Three Determines the important management principle of the
Company, that is, efficiency determines profit, detail determines success, speed determines life and death;
Work hard; Work with intelligence; Work with the spirit of seizing the day the code of conduct for
employees. After years of development, the spirit advocated by the culture, closely integrated with our
business targets and daily work, guides the benchmarking of all business groups, branches and subsidiaries,
continuously and deeply advances the fine-tuning of management and constantly boosts the high-quality
development of various business activities.
V. Operations in the reporting period
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Refer to the “operation discussion and analysis” for details.
(I) Analysis of main businesses
1. Analysis of changes in related items of the income statement and cash flow statement
Unit: Yuan Currency: CNY
Item Current period amount Last period amount Change (%)
Operating revenue 139,104,062,084.52 142,422,517,994.99 -2.33
Operating cost 102,327,943,787.54 88,059,961,179.23 16.20
Sales expense 2,130,041,158.64 1,434,770,892.87 48.46
Management expense 4,727,505,222.51 7,867,914,704.37 -39.91
Financial expense 580,850,749.32 689,147,212.07 -15.71
R&D cost 1,189,482,199.88 1,464,443,543.84 -18.78
Net cash flow generated from
30,679,303,971.17 43,817,909,631.70 -29.98
operating activities
Net cash flow generated from
-45,039,017,153.91 -20,806,151,564.50 -116.47
investing activities
Net cash flow generated from
-6,465,142,047.56 9,246,274,097.59 -169.92
financing activities
Note on the reasons for operating revenue change: mainly attributed to the expansion of the photovoltaic
business group’s operational scale, which, however, fell short of compensating for the significant decline
in product prices.
Note on the reasons for operating cost change: mainly attributed to the expansion of the photovoltaic
business group’s operational scale.
Note on the reasons for change in sales expense: mainly attributed to the business expansion of the solar
modules.
Note on the reasons for change in management expense: mainly attributed to decrease in employee
payrolls.
Note on the reasons for change in financial expense: mainly attributed to increase in interest income and
decrease in loan interest rate.
Note on the reasons for change in the R&D costs: mainly attributed to the large reduction of the prices of
materials required for the PV development.
Note on the reasons for change in the net cash flow generated from operating activities: mainly attributed
to the reduction of net profit.
Note on the reasons for change in net cash flow generated from investing activities: mainly attributed to
increased investments into projects within the PV business group.
Note on the reasons for change in net cash flow generated from financing activities: mainly attributed to
the increase in profit distribution.
Detailed note on any significant change in the business type, profit structure or profit source of the
Company
"□ Applicable" "√Not applicable"
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2. Revenue and cost analysis
"√Applicable" "□ Not applicable"
(1). Main businesses by industry, product, region and sale model
Unit: Yuan Currency: CNY
Main businesses by industry
Gross profit YoY change of YoY change of YoY change of gross
Industry Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Agriculture and animal
35,489,191,550.69 32,716,043,482.70 7.81 12.14 12.24 - 0.08 ppts
husbandry
PV 102,828,039,682.74 69,025,731,086.27 32.87 -6.37 18.79 - 14.22 ppts
Total 138,317,231,233.43 101,741,774,568.97 26.44 -2.23 16.60 - 11.88 ppts
Main businesses by product
Gross profit YoY change of YoY change of YoY change of gross
Product Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Feed, food and relevant
35,489,191,550.69 32,716,043,482.70 7.81 12.14 12.24 - 0.08 ppts
activities
High-purity polysilicon,
chemical engineering and 44,799,213,791.54 20,938,153,439.88 53.26 -27.57 36.09 - 21.87 ppts
associated business activities
Solar cells, modules and
69,372,471,660.30 60,511,090,776.81 12.77 29.60 25.87 + 2.58 ppts
relevant activities
PV power 1,969,525,357.56 906,970,107.54 53.95 19.03 17.25 + 0.70 ppts
Offset from consolidation -13,313,171,126.66 -13,330,483,237.96
Total 138,317,231,233.43 101,741,774,568.97 26.44 -2.23 16.60 - 11.88 ppts
Main businesses by region
Gross profit YoY change of YoY change of YoY change of gross
Region Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
East China 71,532,494,196.47 65,850,892,714.91 7.94 31.98 44.99 - 8.26 ppts
South China 18,063,963,069.45 16,243,402,809.29 10.08 46.86 46.05 + 0.50 ppts
West China 76,913,634,093.96 54,029,791,592.73 29.75 2.96 41.98 - 19.30 ppts
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North China 16,555,663,752.79 12,503,470,209.10 24.48 -7.67 24.34 - 19.44 ppts
Middle China 11,228,369,105.47 10,597,960,877.62 5.61 61.79 63.01 - 0.71 ppts
Overseas 11,348,720,924.00 10,258,410,562.34 9.61 -9.93 -10.89 + 0.98 ppts
Offset from consolidation -67,325,613,908.70 -67,742,154,197.02
Total 138,317,231,233.43 101,741,774,568.97 26.44 -2.23 16.60 - 11.88 ppts
Main businesses by sale model
Gross profit YoY change of YoY change of YoY change of gross
Sale model Operating revenue Operating cost
margin (%) operating revenue (%) operating cost (%) profit margin (%)
Direct sale 113,944,181,425.52 79,711,494,611.27 30.04 -1.19 25.85 - 15.04 ppts
Franchised dealership 24,373,049,807.91 22,030,279,957.70 9.61 -6.81 -7.89 + 1.06 ppts
The dealership model basically covers feed and modules dealership.
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2023 Annual Report
(2). Production and sale analysis
"√Applicable" "□ Not applicable"
YoY change of YoY change YoY change of
Main products Unit Production Sale Inventory
production (%) of sale (%) inventory (%)
Feed 10,000 tons 741.08 741.34 9.83 0.80 3.05 -12.03
High-purity
10,000 tons 38.90 38.72 0.35 45.75 50.79 -70.18
polysilicon
Solar cells GW 80.83 80.66 1.87 64.37 68.11 -1.72
Solar modules GW 31.07 31.11 2.06 216.13 292.08 -5.24
100 million
PV Generation 45.18 44.32 / 11.25 9.16 /
kilowatt-hours
Note on production and sale volumes
The production volume includes outsourced processing output.
(3). Fulfillment of major purchase contacts and sales contracts
"√Applicable" "□ Not applicable"
Fulfillment of major existing sales contracts as of the end of the reporting period
"√Applicable" "□ Not applicable"
Unit: 100 million yuan Currency: CNY
Amount
Amount Note on
Total Amount fulfilled in Fulfillment
Subject matter Counterparty to be non-
amount fulfilled the reporting or not
fulfilled fulfillment
period
High-purity polysilicon Customer A / 403.65 160.35 / Yes
High-purity polysilicon Customer B / 160.23 36.91 / Yes
High-purity polysilicon Customer C / 93.57 20.28 / Yes
High-purity polysilicon Customer D / 73.08 22.59 / Yes
High-purity polysilicon Customer E / 51.23 12.59 / Yes
High-purity polysilicon Customer F / 29.92 11.98 / Yes
High-purity polysilicon Customer G / 20.33 4.84 / Yes
Note: ①quantities are agreed in the above major sales contracts where prices are determined according
to the market prices; ② above amounts include taxes.
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(4). Cost analysis
Unit: Yuan
Cost by industry
Current period amount Last period amount YoY amount
Industry Cost item Current amount Last period amount Remarks
to total cost (%) to total cost (%) change (%)
Agriculture and animal husbandry Raw materials 31,000,483,199.78 94.75 27,595,466,380.85 94.67 12.34
Agriculture and animal husbandry Labour cost 404,637,640.51 1.24 380,990,879.22 1.31 6.21
Agriculture and animal husbandry Manufacturing expense 1,310,922,642.40 4.01 1,171,211,274.75 4.02 11.93
PV industry Raw materials 49,435,269,058.41 71.62 45,102,802,056.52 77.62 9.61
PV industry Labour cost 2,770,949,010.31 4.01 1,823,636,210.19 3.14 51.95
PV industry Manufacturing expense 16,819,513,017.54 24.37 11,180,527,712.58 19.24 50.44
Cost by product
Current period amount Last period amount YoY amount
Product Cost item Current amount Last period amount Remarks
to total cost (%) to total cost (%) change (%)
Feed, food and relevant activities Raw materials 31,000,483,199.78 94.75 27,595,466,380.85 94.67 12.34
Feed, food and relevant activities Labour cost 404,637,640.51 1.24 380,990,879.22 1.31 6.21
Feed, food and relevant activities Manufacturing expense 1,310,922,642.40 4.01 1,171,211,274.75 4.02 11.93
High-purity polysilicon, chemical
engineering and associated Raw materials 9,340,510,249.53 44.61 7,723,997,198.54 50.21 20.93
business activities
High-purity polysilicon, chemical
engineering and associated Labour cost 592,549,742.35 2.83 457,125,538.33 2.97 29.63
business activities
High-purity polysilicon, chemical
engineering and associated Manufacturing expense 11,005,093,448.00 52.56 7,203,837,607.77 46.82 52.77
business activities
Solar cells, modules and relevant
Raw materials 53,425,242,046.84 88.29 43,504,348,412.37 90.50 22.80
activities
Solar cells, modules and relevant
Labour cost 2,178,399,267.97 3.60 1,366,510,671.86 2.84 59.41
activities
Solar cells, modules and relevant
Manufacturing expense 4,907,449,462.00 8.11 3,203,163,244.61 6.66 53.21
activities
PV power Manufacturing expense 906,970,107.54 100.00 773,526,860.19 100.00 17.25
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2023 Annual Report
(5). Changes in the scope of consolidation due to shareholding changes of main subsidiaries in the
reporting period
"□ Applicable" "√Not applicable"
(6). Significant changes or adjustments in businesses, products or services of the Company in the
reporting period
"□ Applicable" "√Not applicable"
(7). Major customers and suppliers
A. Main customers
"√Applicable" "□ Not applicable"
The sales amount from top five customers was 40.417 billion yuan, accounting for 29.05% of the total
sale amount; the sales amount from related parties (in the sales amount from top five customers) was 0.00,
accounting for 0.00 % of the total sale amount.
The sale amount from a single customer was over 50% of the total sale amount and/or the top five
customers include new customers or the Company was heavily dependent on a small number of customers
"□ Applicable" "√Not applicable"
B. Major suppliers
"√Applicable" "□ Not applicable"
The purchase amount to top five suppliers was 18.908 billion yuan, accounting for 20.19% of the total
purchase amount; the purchase amount to related parties (in the purchase amount to top five suppliers)
was 0.00, accounting for 0.00% of the total purchase amount.
The purchase amount to a single supplier was over 50% of the total purchase amount and/or the top five
suppliers include new suppliers or the Company was heavily dependent on a small number of suppliers
"□ Applicable" "√Not applicable"
Other notes
The aforementioned sales to customers exclude tax, while the supplier procurement amounts include tax.
3. Expenses
"□ Applicable" "√Not applicable"
4. R&D cost
(1) R&D cost
"√Applicable" "□ Not applicable"
Unit: Yuan
R&D cost expensed in current period 3,982,338,373.53
R&D cost capitalized in current period
Total R&D cost 3,982,338,373.53
Total R&D cost to operating revenue (%) 2.86
Percent of capitalized R&D cost (%)
Note: The R&D cost mentioned above includes R&D expense and the cost formed by R&D activities
corresponding to the products. Specifically, R&D cost to operating revenue in terms of PV business is
3.63%.
(2). R&D personnel
"√Applicable" "□ Not applicable"
R&D employees 4,157
R&D employees to total employees (%) 7.37
Education background of R&D employees
Education background Number of employees
Doctor degree 24
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Master degree 409
Bachelor's degree 2,053
Others 1,671
Age groups of R&D employees
Age group Number of employees
Under 30 years old 1,875
30 - 40 years old 1,661
40 - 50 years old 484
50 - 60 years old 130
60 years old or above 7
(3). Note
"√Applicable" "□ Not applicable"
The Company keeps technological innovation and development. For each business group, it has built
a R&D team led by subject matter experts and supported by increased investments, with plenty of
achievements that helped the Company create value. At the end of the reporting period, the Company had
4,157 R&D personnel or 7.37% of its total 56,406 employees. Specifically, those holding bachelor or
higher degrees accounted for 59.80% of the R&D employees; 54.90% of the R&D employees were 30
years old or above, and 45.10% were under 30 years old.
(4). Reasons for material changes in R&D staff structure and the impact on the Company’s future
development
"√Applicable" "□ Not applicable"
As the end of the reporting period, the Company had 4,157 R&D employees, marking an increase of
608 individuals compared to the previous year's 3,549. In line with its development requirements, in 2023,
the Company further intensified the recruitment of outstanding R&D talents in the photovoltaic industry,
both domestically and internationally, with a significant increase in the number of R&D personnel focused
on cells and modules. The increase in R&D personnel helps with the advancement of R&D projects, has
boosted its R&D capability and level for improving its sustainability on a long-term basis.
5. Cash flow
"√Applicable" "□ Not applicable"
Refer to the analysis of changes in related items of the income statement and cash flow statement in this
Section.
(II) Note on material change in profit caused by non-main operating activities
"□ Applicable" "√Not applicable"
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(III) Analysis of assets and liabilities
"√Applicable" "□ Not applicable"
1. Assets and liabilities
Unit: Yuan
Closing balance
Closing balance of Closing balance to Closing balance of
Item name to the total assets YoY (%) Note
current period the total assets (%) last period
(%)
Mainly due to investments into project constructions,
Cash at bank and in
19,418,437,782.89 11.81 36,841,572,130.01 25.31 -47.29 profit distribution and purchase of wealth management
hand
products.
Held-for-trading
10,064,061,762.38 6.12 4,298,524,475.70 2.95 134.13 Due to purchase of wealth management products.
financial assets
Notes receivable 847,559,026.34 0.52 2,450,913,663.89 1.68 -65.42 Mainly due to reduction of L/Cs.
Mainly due to expansion of module business and
Accounts receivable 6,987,853,078.62 4.25 4,501,362,630.14 3.09 55.24 extended payment cycle to customers in the module
business.
Other current assets 2,411,612,696.98 1.47 786,407,734.06 0.54 206.66 Mainly due to the increase in VAT credit refund.
Construction in Mainly due to the increase in costs of constructions for
14,816,515,872.96 9.01 3,997,396,999.92 2.75 270.65
progress high-purity polysilicon, solar cells and module projects.
Mainly due to the conversion from completed
Intangible assets 4,721,306,525.81 2.87 2,455,828,500.38 1.69 92.25 construction for high-purity polysilicon, solar cells and
module projects.
Other non-current Mainly due to the increase in prepayments for
5,085,435,306.61 3.09 2,703,584,777.25 1.86 88.10
assets engineering equipment.
Mainly due to investment, business expansion and
Accounts payable 17,375,810,492.74 10.57 11,018,161,537.30 7.57 57.70
increase in procurement.
Long-term Due to expanded investment size and adjustment of
28,755,180,069.46 17.49 15,409,335,995.67 10.59 86.61
borrowings financing structure.
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2. Overseas assets
"√Applicable" "□ Not applicable"
(1) Assets
In which: The overseas assets were 2,709,486,898.69 yuan, accounting for 1.65% of the total assets.
(2) Note on the high ratio of overseas assets
"□ Applicable" "√Not applicable"
3. Main restricted assets at the end of the reporting period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Items Closing carrying value Restriction reasons
Cash at bank and in hand 20,180,579.81 Deposit and frozen operating funds
Provides pledges for the bank acceptance bills
Receivables financing 10,290,501,471.18
issued by the Company
Accounts receivable 662,393,867.47 Provide collaterals for the Company's financing
Contract assets 304,252,258.14 Provide collaterals for the Company's financing
Fixed assets 2,580,050,636.19 Provide collaterals for financing of the Company
Machinery and equipment under finance lease with
Right-of-use assets 1,190,775,692.05
legal ownership vested in the lessor
Intangible assets 206,797,418.39 Provide collaterals for financing of the Company
Investment properties 69,623,260.99 Provide collaterals for financing of the Company
Total 15,324,575,184.22
4. Other notes
"□ Applicable" "√Not applicable"
(IV) Industrial operation analysis
"√Applicable" "□ Not applicable"
The Company is involved in PV, agriculture, forestry, livestock husbandry and fishery.
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2023 Annual Report
Analysis of operational information in the PV industry
1. PV equipment manufacturing
"□ Applicable" "√Not applicable"
2. Key technical indicators of PV products
"√Applicable" "□ Not applicable"
Product category Technical indicator
Solar energy-grade
Output ratio of products at all levels Ratio of electricity cost to total product cost
polysilicon:
Solar energy-grade
100% 37.38%
polysilicon
Solar cells: Average energy conversion efficiency in mass production Maximum energy conversion efficiency in R&D stage
Monocrystalline silicon P-type PERC: 23.98%
N-type HJT: 26.49%
cells N-type TOPCon: 26.26%
Modules: Average module power in mass production Maximum module power in R&D stage
182 72 format PERC modules: 550W-560W
182 72 format TOPCon modules: 613.2 W
Silicon solar cells 210 66 format PERC modules: 660W-670W
210 66 format HJT modules: 755.03 W
182 72 format TOPCon modules: 580-590W
Indicator definitions and discussions: (1) Average conversion efficiency in mass production stage refers to the average conversion efficiency of cells in large-scale
production; (2) Highest conversion efficiency in research and development stage refers to the highest conversion efficiency of cells in research and development
trials, tested by third-party authoritative testing agencies;(3) Average module power in mass production stage refers to the mainstream power of modules in mass
production; and (4) Highest module power in research and development stage refers to the highest power of modules in research and development trials, tested by
third-party authoritative testing agencies.
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2023 Annual Report
3. PV powerplants
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Development of PV powerplants
Number of powerplants Number of powerplants Number of powerplants
Total price of Effect of powerplants sold in the
and total installed and total installed and total installed Total installed
powerplant projects period on the operational
capacity held at the capacity sold in the capacity held at the end capacity approved
sold performance of the period
beginning of the period reporting period of the period
Powerplants held: 52 Powerplants held: 54
Installed capacity with Installed capacity with No powerplant was sold in the
0.00 5.9 GW 0.00
grid connection: 3.4 grid connection: 4.07 period
GW GW
Note: The installed capacity with grid connection is based on the DC side capacity. The total installed capacity approved means the installation capacity of powerplants
that have been registered and held by the Company (including those connected to and not connected to the grid) by the end of the reporting period.
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Operation of PV powerplants in the year:
Installed
Power generation Grid connected power Settled power Price of grid connected Electricity
Region capacity Subsidies
(10,000 kWh) (10,000 kWh) (10,000 kWh) electricity (yuan/kWh) revenue
(MW)
Centralized:
East China 1,354.89 172,906.21 169,129.44 168,663.35 0.41 54,723.61 13,739.55
South China 602.88 62,848.29 62,144.02 61,943.88 0.44 23,167.24 4,248.40
West China 162.47 18,146.65 17,862.17 17,872.12 0.57 5,994.75 4,124.14
North China 1,025.69 118,563.87 116,147.33 115,371.53 0.41 30,948.88 16,648.76
Middle China 813.50 73,769.46 71,471.63 64,313.70 0.32 19,461.00 914.80
Total 3,959.43 446,234.48 436,754.59 428,164.58 / 134,295.48 39,675.66
Distributed:
East China 32.54 4,470.09 4,339.65 4,350.24 0.63 1,595.59 1,130.69
West China 62.14 9,322.02 9,119.19 9,095.31 0.63 2,884.02 2,826.81
Middle China 18.22 1,639.23 1,587.60 1,580.32 0.82 392.50 905.25
Total 112.90 15,431.34 15,046.44 15,025.87 / 4,872.11 4,862.75
"□ Applicable" "√Not applicable"
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2023 Annual Report
4. Recommended tables
(1). PV capacity in use and in construction
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Current
Process Total investment in Expected)
Capacity investment in Designed Process route in
Product category Yield route in production lines in completion
utilization production lines capacity construction
operation construction time
in construction
400,000
Modified 1,511,676.16 1,466,956.73 2024
Solar energy-grade 389,000 tons Modified Siemens
95.86% Siemens
polysilicon tons 120,000 process
process 3,535.81 3,535.81 2026
tons
Solar cells:
Monocrystalline 80.83 PERC/TOP
97.27% 140,677.65 140,677.65 41 GW 2024 TOPCON
silicon cells GW CON
Modules:
High-
31.07 High-efficiency
Silicon solar modules 63.81% efficiency 309,430.83 309,430.83 25 GW 2024
GW modules
modules
Analysis of the reasons and effect of significant changes in capacity utilization: Not applicable
Note: Total investment in production lines in construction means the cumulative investment in the projects of production lines, the capacity utilization of each part is
based on the actual capacity.
(2). Major financial indicators of PV products
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Sales revenue Gross profit margin (%)
Product category Sales-to-production ratio (%)
Domestic Overseas Domestic Overseas
Solar energy-grade polysilicon 102.00 3,811,162.11 / 57.16 /
Solar cells:
Monocrystalline silicon cells 99.79 2,542,244.37 534,967.98 15.36 11.18
Modules:
Silicon solar cells 100.15 3,547,216.13 290,358.86 10.48 14.12
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2023 Annual Report
PV products sold overseas should be listed by country or region
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Overseas sales of monocrystalline silicon cells
Country/region Sales revenue Gross profit margin (%)
Middle East and Africa 407,318.67 11.62
APAC 86,783.30 5.67
Europe 35,059.17 19.57
Americas 5,806.84 12.26
Unit: 10,000 yuan Currency: CNY
Overseas sales of monocrystalline solar modules
Country/region Sales revenue Gross profit margin (%)
Europe 218,517.34 13.28
APAC 62,736.24 16.96
Americas 8,713.51 15.37
Middle East and Africa 391.77 3.51
(3). PV powerplant projects commissioned or developed
"□ Applicable" "√Not applicable"
5. Other notes
"□ Applicable" "√Not applicable"
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2023 Annual Report
(V) Investment analysis
Overall analysis of outward equity investments
"□ Applicable" "√Not applicable"
1. Significant equity investments
"□ Applicable" "√Not applicable"
2. Significant non-equity investments
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Opening Amount invested Cumulative Return realized in
Project
Project name investment in the reporting investment the reporting Sources of funds
progress
amount period amount period
15 GW Monocrystalline Rod Pulling and Cutting Raising fund and
351,020.33 10,122.08 361,142.41 Completed 79,698.83
Project of Yongxiang PV Technology self funding
Phase I 120,000-ton High-purity Polysilicon Project of -4,240.44
287,943.43 450,534.56 738,477.99 Completed Self funding
Yongxiang Energy Technology (Note 1)
Phase II 200,000-ton High-purity Polysilicon Project of
44,719.43 923,031.17 967,750.60 In progress / Self funding
Yunnan Tongwei
Phase I of the 200,000-ton high-purity polysilicon
0.00 543,925.56 543,925.56 In progress / Self funding
project of Inner Mongolia Silicon Energy
Phase I 16 GW High-efficiency Cell Project of -35,788.17
15,629.53 606,515.84 622,145.37 Completed Self funding
Pengshan Solar (Note 1)
Phase V of 25 GW High-efficiency Cell Project of
0.00 60,903.65 60,903.65 In progress / Self funding
Chengdu Solar
25 GW High-efficiency Modules Manufacturing Base -48,671.81
1,572.17 566,702.51 568,274.68 Completed Self funding
Project of Yancheng Solar (Note 1)
25 GW High-efficiency Modules Manufacturing Base
0.00 309,430.83 309,430.83 In progress / Self funding
Project of Nantong Solar
Phase III 120,000-ton High-purity Polysilicon Project /
0.00 3,535.81 3,535.81 Preparation Self funding
of Yongxiang New Energy (Note 2)
Note 1: In the reporting period, the project was in the ramp-up stage, compounded by product price declines, leading to losses.
Note 2: The construction of the Phase III 120,000-ton High-purity Polysilicon Project of Yongxiang New Energy, as originally planned within the reporting period, is
expected to be commenced at the end of 2024 or the first half of 2025 due to some preliminary procedures still being processed. The Company will start the construction
as soon as the preliminary procedures are completed and strive to put the project into production in the first half of 2026.
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2023 Annual Report
3. FVTPL financial assets
"□ Applicable" "√Not applicable"
Securities investments
"□ Applicable" "√Not applicable"
Notes on securities investments
"□ Applicable" "√Not applicable"
PE investments
"□ Applicable" "√Not applicable"
Derivatives investments
"√Applicable" "□ Not applicable"
(1). Derivative investments held for hedging in the reporting period
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Ratio of closing
carrying value
Current Cumulative Amount Amount
Initial Opening Closing to the
profit/loss change in fair bought in sold in the
Derivatives investment type investment carrying carrying Company’s net
from change in value recorded the reporting reporting
amount value value assets at the end
fair value into equities period period
of the reporting
period (%)
Forward exchange contracts / 1,985.69 7,040.09 -284.34 7,214.59 686,632.16 1,020.86 0.01
Total / 1,985.69 7,040.09 -284.34 7,214.59 686,632.16 1,020.86 0.01
The Company has met the requirements for applying hedge accounting methods since January 1, 2023, and has been
Accounting policies and principles for
employing hedge accounting since then. The Company executes accounting treatment for hedging activities in
hedging activities in the reporting period,
accordance with the relevant provisions and guidelines of the Ministry of Finance, including Accounting Standards for
and any significant changes compared to the
Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, No. 23 - Transfer of Financial
previous reporting period
Assets, No. 24 - Hedge Accounting, and No. 37 - Reporting for Financial Instruments.
Note on the actual profit/loss in the reporting In the reporting period, the total amount reflected in the investment income and profit/loss from fair value change for
period the Company's commodity and exchange hedging schemes was 17,005,100 yuan.
Note on the effect of hedge activities Through hedging activities, the Company effectively mitigated risks associated with fluctuations in exchange rates, raw
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2023 Annual Report
material prices, and finished product prices. This strategy allowed the Company to secure production and operating
costs, maintain stable profit margins, and enhance its sustained profitability and overall competitiveness.
Sources of funds for derivative investments The Company's own funds
(I) Trading risk analysis
The Company’s foreign exchange hedging operations are based on prudent practices without from speculative trading.
All hedging activities are grounded in normal production and operations, supported by specific business ventures, aimed
at mitigating and avoiding exchange rate risks. However, foreign exchange hedging operations also entail certain risks:
1. The risk of significant fluctuations in exchange rates
In times of substantial exchange rate volatility, if the Company assesses that the direction of significant fluctuations
diverges from that anticipated in the foreign exchange hedging contracts, it will incur exchange losses. Likewise,
significant disparities between future exchange rate movements and the terms of the hedging contracts will also result
in exchange losses;
2. Internal control risk
Foreign exchange hedging operations require a high level of expertise and involve complexity, which may lead to risks
Note on risk analysis and control measures due to inadequate internal controls;
for derivative holdings in the reporting 3. Trade default risk
period (including but not limited to market If counterparties in foreign exchange hedging transactions default on their obligations to pay the Company its hedging
risk, liquidity risk, credit risk, operational profits as agreed, the Company will be unable to offset its actual exchange losses, resulting in financial losses.
risk, and legal risk) (II) Risk control measures
1. The Company has developed the Foreign Exchange Hedging Business Management Policy which outlines specific
regulations regarding foreign exchange hedging operations, organizational structure, business procedures,
confidentiality measures, and risk management measures;
2. To mitigate the risk of significant exchange rate fluctuations, the Company will enhance its analysis of exchange
rates, closely monitor changes in the international market in real-time, adjust operational strategies as needed, and
minimize exchange losses;
3. To mitigate internal control risks, the finance department is tasked with overseeing all aspects of the Company's
foreign exchange hedging operations. It rigorously adheres to the provisions outlined in the Foreign Exchange Hedging
Business Management Policy, thereby ensuring effective implementation of the established regulations.
4. To manage the risk of transaction defaults, the Company conducts its foreign exchange hedging activities solely with
reputable and qualified financial institutions, such as major banks.
The changes in prices or fair values of
derivatives held in the reporting period, Foreign exchange forward contracts are initially measured at fair value on the day the contracts are entered into between
specific methods and the settings of relevant the Company and commercial banks. Subsequent measurements of their fair value are based on year-end valuation
assumptions and parameters should be notices provided by respective commercial banks.
disclosed for the analysis of the fair values.
Litigation (if applicable) Not applicable
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2023 Annual Report
The disclosure date for the board of
directors' announcement for the approval of April 25, 2023
derivative investments (if any)
The disclosure date for the general meeting's
announcement for the approval of derivative Not applicable
investments (if any)
(2). Derivative investments held for speculation in the reporting period
"□ Applicable" "√Not applicable"
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2023 Annual Report
4. Progress of significant asset restructuring and integration in the reporting period
"□ Applicable" "√Not applicable"
(VI) Significant asset and equity sales
"□ Applicable" "√Not applicable"
(VII) Analysis of companies where the Company holds shares
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Full name of Business Registered Operating Operating
Total assets Net assets Net income
subsidiary nature capital revenue profit
Yongxiang Co., PV
142,086.69 6,647,715.96 4,191,126.86 4,503,048.18 2,283,875.90 1,931,955.65
Ltd (combination) industry
(VIII) Structure entities controlled by the Company
"□ Applicable" "√Not applicable"
VI. Discussion and analysis on the Company's future development
(I) Industry pattern and trends
"√Applicable" "□ Not applicable"
1. Feed industry
(1) As the industry advances towards a stage of high-quality development, the concentration is
poised to increase further.
Following over 40 years of development, China's feed industry has evolved into a comprehensive
ecosystem. Although the total feed volume remains subject to cyclic fluctuations driven by the scale of
livestock breeding, the industry has shifted from a phase of rapid, quantity-centric growth to one
emphasizing quality enhancement and integration. As a result, the competitive landscape has stabilized,
with a gradual concentration toward top companies. In the future, as downstream farming continues to
scale up and consolidate, competition in the feed industry will gradually shift from channel-focused
marketing towards greater emphasis on product quality, farming efficacy, and technical service capabilities.
Large-scale feed companies will leverage their long-established expertise in procurement, leading-edge
R&D capabilities, standardized production capacities, as well as their advantages in management, funding,
and talent to capture larger market shares. Meanwhile, small and medium-sized feed enterprises relying
solely on lower prices will gradually become marginalized, leading to further industry consolidation.
(2) The continuous promotion of reduction and substitution is diversifying the formulation
structure and novel feed may become an important direction.
With the continuous increase in China's total feed production, the demand for major feed grains is
constantly growing. Also, some feed grains rely heavily on imports whose prices have significantly
increased over the past decade. This high cost of feed has also brought significant pressure to the end
farming industry. With sustained encouragement from central government and local authorities, the
industry is actively exploring alternatives to feed grains. In addition, with the Three-Year Action Plan for
Reducing and Substituting Soybean Meal in Feed issued by the Ministry of Agriculture and Rural Affairs,
it is anticipated that the reduction of feed grain usage will remain a focal point for the industry in the long
term. This will drive continued investment in research and development by feed producers, fostering the
discovery of new protein sources and related utilization technologies, and continual improvement and
innovation in feed formulations. Meanwhile, new types of feed, such as biological feed, are expected to
emerge as significant directions for the feed industry.
(3) Integration of feed and farming is being strengthened further
In the context of slower total growth, accelerated development of self-formulated feed by farming
enterprises, and intensified market competition, top feed companies with established channels, brand
advantages, stronger capital, management, R&D, talent, and scale strength attempt to expand downstream
into farming, slaughtering, food, and trade sectors. Currently, leading pig feed producers have largely
established their own pig farming and even slaughtering businesses. Similarly, top aquatic feed producers
such as Tongwei, Haid, and CP Group are continually exploring large-scale farming models for certain
aquatic products like South American white shrimp. It is anticipated that the trend of integrated feed-
farming operations will continue to strengthen in the future.
2. PV
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2023 Annual Report
(1) The global trend of energy transformation is clear and PV industry has a bright prospect.
Against the backdrop of global warming, the depletion of fossil fuels, and the growing regional
energy security concerns, the development of renewable energy, with solar power as a representative, has
become an international consensus. At the COP28 held on December 13, 2023, nearly 200 countries and
regions reached a landmark agreement known as the UAE Consensus. This agreement makes a clear
commitment to tripling global installed capacity of renewable energy by 2030. Through a just energy
transition, the consensus aims to break away from fossil fuels and achieve global net-zero emissions by
2050. During the same period, IRENA significantly raised its forecast for global installed capacity of
photovoltaics in 2050 to 18,200 GW, based on the 1.5-degree Celsius climate scenario outlined in the
Paris Agreement. In addition, with carbon emissions becoming an important factor affecting commodity
imports and exports, vigorously developing renewable energy in particular photovoltaics has become an
inevitable choice concerning the national strategic development of countries. It is expected that the
industry will continue growing at high speeds for a long term.
(2) Various segments of the industry chain may gradually enter a new phase of supply-demand
equilibrium, with top companies continuing to strengthen their positions.
Since the end of 2022, prices across segments of the photovoltaic industry chain have experienced
significant declines amidst concentrated supply and rapid growth. By the end of 2023, the bid winning
price for photovoltaic modules had dropped by over 40% compared to the beginning of the year, falling
below 1 yuan per watt. Consequently, some companies along the industry chain have begun to suspend or
slow down new project investments. Faced with issues such as overheated investment, blind expansion,
inadequate grid connection and low utilization rates, the New Energy and Renewable Energy Department
of the National Energy Administration has stated that the “primary task for the entire industry in 2024 is
to ensure the stable and healthy development of the photovoltaic industry, and prevent boom-bust cycles.”
Meanwhile, the Electronic Information Department of the Ministry of Industry and Information
Technology has predicted that “in 2024, the industry will likely continue to deepen its adjustment trend,
with some outdated capacity and products lacking competitiveness gradually being phased out, while
capacity with technological advantages will gain a stronger competitive edge.” This suggests that the
photovoltaic industry may gradually enter a new phase of supply-demand equilibrium. As industry
differentiation unfolds, the process of survival of the fittest will accelerate, leading to the gradual
elimination of outdated capacity. Meanwhile, top companies, leveraging their profound understanding of
the photovoltaic industry's cycles accumulated over the years and aligning with their operational
characteristics, have established comprehensive competitive advantages in aspects such as supply chain
management, cash flow management, cost control, R&D reserves, brand building, market channels, and
customer service. They are expected to further expand their operational advantages and consolidate market
share after this round of industry restructuring.
(3) In the short term, the technological direction is increasingly clear, yet the industry remains
committed to ongoing exploration and development of new technologies.
In 2023, the photovoltaic industry entered a capacity expansion cycle centered around N-type cell
technology, with the TOPCon technology route leading the way in scale production, thanks to advantages
such as higher cost-effectiveness and a mature supporting industrial chain. InfoLink Consulting predicts
that the TOPCon market share in 2024 will reach 70% and TOPCon technology has become the market
mainstream. However, it should also be noted that both HJT and XBC technologies have seen great
progress in costs and manufacturing processes in 2023, with noticeable expansion of capacity and gaining
some market share through their differentiated advantages. Frontier technologies such as perovskite and
perovskite/silicon stacked cells which are making new records in conversion efficiency. Based on the
essential pursuit of continuously reducing the cost of electricity in the photovoltaic industry, exploring
new technologies will continue to run through the development of the industry.
(4) With photovoltaics, from grid parity to “source-grid-load-storage”, the trend of parity
application is becoming increasingly clear.
In recent years, the cost of photovoltaic power generation in most regions worldwide has become
comparable to that of traditional energy sources, allowing grid parity. However, due to the intermittent,
fluctuating, and random nature of renewable energy generation, compared to traditional sources, the
stability of renewable energy supply is weaker, which can pose challenges to grid stability and necessitate
the integration of energy storage systems and enhanced grid flexibility to address the pressure of renewable
energy integration. This, in turn, indirectly increases the application costs of power from renewable energy
sources. China has responded by placing significant emphasis on tackling the challenge of renewable
energy connection. This involves expediting the design of top-level policies, bolstering investments in
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2023 Annual Report
local power grids, and implementing flexible transformations in thermal power generation. These
measures are aimed for gradually shaping and optimizing a new power system tailored to the country’s
future needs, alongside the establishment of a spot market for renewable energy electricity trading. As this
process accelerates, coupled with continuous technological breakthroughs and cost reductions within the
solar energy storage industry, the realization of grid parity in photovoltaic applications is expected to
hasten. This will continue to stimulate potential end-user demand for installations.
(5) Comprehensive global expansion is emerging as the developmental trajectory, with China
poised to maintain its leadership in the worldwide energy transition.
There is significant pressure on global economic growth, with low growth potentially becoming the
new normal. The photovoltaic industry, as a core component of the green energy transition, has emerged
as one of new drivers of global economic growth, garnering significant attention worldwide. Major
economies, including the United States and Europe, have implemented trade protection policies to
safeguard the competitiveness of domestic photovoltaic industries. However, it should be noted that the
Chinese photovoltaic industry chain possesses irreplaceable leading advantages in the world. Even with
various policy supports, other countries may find it challenging to compete with Chinese photovoltaic
companies for an extended period. In fact, domestic capacity development in foreign countries often still
requires assistance from Chinese companies. At the same time, Chinese photovoltaic companies are
engaging in the development of overseas photovoltaic industry through diverse avenues, including
technology transfer, capital investment, talent exchange, and capacity expansion. This proactive
involvement indicates that China's photovoltaic sector is poised to continue leading the global energy
transition and development.
(II) Development strategy of the Company
"√Applicable" "□ Not applicable"
The Company's development strategy is to build a world-class safe food supplier and clean energy
operator. Utilizing the comprehensive strength and large-scale advantages accumulated for a long time in
scientific research, branding, comprehensive operations, and other areas, it adapts to industry development
trends, adheres to the specialization, large-scale, and industrialization process of the PV business group
and agriculture and animal husbandry business group, and optimizes and improves their respective
industrial chain, strives to promote the Company's sustainable and stable development by both endogenous
and extensional investment methods, promotes the continuous and stable development and realizes the
Company's vision of "For Better Life".
1. Agriculture and animal husbandry business group: a world-class safe food supplier
Feed industry: Adhering to Quality Policy and with a focus on the specialization and scale up of the
feed business, the Company tries to grow steadily by setting up facilities and M&A activities at home and
abroad. While focusing on the aquatic feed business, the Company makes the most of the season-based
cycle of the business by advancing the collaborative mode with large farming companies in livestock and
poultry feed, a way to increase its feed business size and market share.
Aquaculture: Based on the resources (aquaculture resources, channel resources) gained over the past
years, and making use of its unique Aquaculture-Photovoltaic Integration model for efficiency
improvement, the Company puts great efforts into the new approach combining the Company with farmers,
and further explores and develops facility-based standard fishery where factory-based farming targeting
premium aquatic products represented by shrimps and special aquatic foods, elevates the automation,
intelligence and environmental standards for aquaculture, advances the transformation from traditional to
modern fishery, and build state-of-the-art production bases of safe aquatic products which can be fully
tracked.
Processing and trade activities: The Company accelerates the deep processing and trade of aquatic
products and build a uniform industry chain from farmers to consumers around the growth model of “three-
fish, one-prawn, one brand, one-platform and one-market”. Tongwei Fish, the Company's green and safe
food benchmark, has been highly recognized in the regional market, and the successful model will be
replicated in the future. At the same time, it is actively applying big data to the sale of aquatic products by
combining an online e-commerce platform (Quan Nong Hui) with an aquatic wholesale market (San Lian
Shui Chan Pin) to create a circulation system. By giving full play to Tongwei Fish, the Company focuses
on the operation of key products like tilapia, mullet, channel catfish and Yantian shrimp, striving to cover
the entire industry chain including farming, production, processing and trade.
2. PV business group: create a world-class clean energy operator
As one of the leading manufacturers in the PV industry, the Company will continue to enhance its
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advantage along the industry chain and strengthen its leading positions in all parts, and accelerate the
Aquaculture-Photovoltaic Integration model to be a world-class clean energy operator.
Regarding PV manufacturing, by giving full play to its capabilities of technology development and
cost control, the Company is solidifying its leading position in this area. By continuously consolidating
and enhancing its scale, technology, and cost advantages that are leading in the high-purity polysilicon
segment, the Company strives to increase its market share, and secure a globally leading position in the
segment. By continuously strengthening the research and development, scale, and management
advantages in the solar cell segment, the Company tries to consolidate its leading profitability and market
share, and secure a globally leading position in the segment. By further increasing the market share in the
module segment, and improving channel and brand advantages in multiple domestic and international
markets, the Company works to maintain its leadership in the global module market.
In the photovoltaic power generation segment, the Company firmly advances the Aquaculture-
Photovoltaic Integration model through organic combination of its resources in agriculture and PV, in
order to create an Aquaculture-Photovoltaic Coexistence economy where feed, aquatic products and green
energy are integrated, thereby building a differentiated competitiveness for the Company.
(III) Business plan
"√Applicable" "□ Not applicable"
In 2024, with firm adherence to the business guidelines of focus, execution and efficiency, the
Company continues securing its advantages in aquatic feed, high-purity polysilicon and solar cell while
fully leveraging the synergy effect of PV business group to further increase the brand impact and market
share for the modules business. These are intended for increasing the Company's value and returns to
shareholders.
1. Agriculture and Animal Husbandry: The Company strives to increase the revenue of feed, food
and associated businesses along the industry chain by over 10% YoY.
2. PV: The Company strives to deliver 550,000 tons for high-purity polysilicon business, 90 GW
(including self-use) for solar cell business, and 50 GW for module business; for the photovoltaic power
generation business, it plans to construct an Aquaculture-Photovoltaic Integration project with a capacity
of 1 GW through investment.
(IV) Possible risks
"√Applicable" "□ Not applicable"
1. Feed industry
(1) Volatility of prices of main raw materials
The cost of raw materials is the primary cost in feed production. In recent years, prices of some
agricultural commodities, which serve as primary sources of feed ingredients, have generally shown an
upward trend, persisting at historically high levels for an extended period. Prices of various raw materials
may also be subject to significant fluctuations due to international geopolitical conflicts, extreme weather
events, trade policies, and other factors, posing challenges for feed companies in procurement and cost
control.
Risk response measures: The Company has a professional procurement team, which closely tracks
changes in raw material prices, makes careful judgments on procurement timing, adheres to the principles
of long-term, medium-term, and short-term procurement, reasonably controls raw material inventory, and
effectively avoids large fluctuations in production costs. The Company is also actively building data-
driven systems such as self-service analysis platforms for market conditions and procurement execution,
a management cockpit 4.0, and direct supplier data connection to assist the procurement team in making
efficient and accurate decisions. The procurement team works together with technology and quality control
teams to actively develop raw materials with good quality, cost-effectiveness, and stable supply channels.
The Company will adhere to its strategy of securing raw materials to ensure stable and consistent quality
of raw material supply. Additionally, it will increase the recruitment and training of outstanding talents to
enhance the capabilities of the procurement team.
(2) Market demand volatility
Feed sales are directly related to breeding activities and production capacity which may be negatively
impacted by natural disasters, extreme weather events, the spread of diseases, and policy changes, thereby
leading to fluctuations in feed demand in some regions or periods.
Risk response measures: The Company will strengthen the tracking and monitoring of natural
disasters, climate change, and animal diseases, actively guide farmers to take risk prevention and control
measures, and provide timely assistance to restore normal production for the best interest of “farmers”. It
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2023 Annual Report
will also enhance animal immunity through developing immune-boosting products, promote standardized
farming practices, assist in building a high-standard epidemic prevention system, and enhance farming
benefits to increase customer loyalty. With a wide range of product categories and subsidiaries properly
distributed in major farming regions, the Company can effectively respond to risks caused by phased or
regional market demand volatility. The Company also has specialized strategic development teams and
technical teams, which continuously monitor industry policies, technological trends, and other market
changes. This enables timely adjustment of the Company's response strategies, further enhancing risk
management capabilities.
(3) Exchange rate risk
Exchange rates are influenced by various factors, including the economic development and fiscal and
monetary policies of countries, international trade tensions, geopolitical environment. In recent years, the
global economic and political situation has been volatile, leading to increased exchange rate fluctuations.
With the growing demand for international raw material trade and the expanded overseas feed business of
the Company, frequent two-way fluctuations in the CNY exchange rate will leave an obvious impact on
business operations.
Risk response measures: The Company closely monitors the economic and political situations and
policies of major currency countries to assess and choose more favorable settlement currencies and
methods. It actively recruits and trains specialized personnel to strengthen research and forecasting
capabilities in the foreign exchange market, enhance import and export management, and effectively
mitigate exchange rate risks by flexibly utilizing forward foreign exchange contracts, swaps, options, and
other hedging instruments.
(4) Policy risk
After policies including Environmental Protection Law of the People's Republic of China, Animal
Husbandry Law of the People's Republic of China, Regulations on Pollution Prevention and Control in
Scaled Livestock Husbandry, Action Plan for Prevention and Control of Water Pollution, and Guiding
Opinions on Promoting the Optimization of Pig Breeding in the Southern Water Network Region have
been implemented, regions across the country have set prohibition and restriction areas and boosted the
supervision and punishment on environmental violations in the livestock husbandry sector, which has
remarkably raised the access threshold and free range farmers that do not meet the environmental
protection provisions have been exiting the industry. In addition, China has launched comprehensive
actions to reduce the use of antibiotics by replacing antibiotics or eliminating antibiotics in the livestock
industry. This, combined with strong incentives for the development of large-scale farms in various regions,
is accelerating the livestock industry to transform towards antibiotic-free, green, scalable, and intelligent
operations. This poses higher requirements for the research, production, and management of feed
companies. Failure to timely adapt to policy requirements may result in operational risks for these
companies.
Risk response measures: Guided by the “Quality Policy”, the Company relies on robust technological
capability, material procurement systems, and scalable and specialized production capability to provide
customers with cost-effective feed products, achieve rapid development of large-scale farms, and
continuously optimize the customer structure. It assists financially capable free-range farmers in
establishing scaled farms that meet environmental protection standards and disease prevention and control
requirements, promoting their smooth transition. The Company produces antibiotic-free feed and
improves product formulations, production processes, and farming models to enhance customer farming
benefits while effectively meeting the needs for greener livestock production, leading to rapid growth in
sales.
(5) Other risks from force majeure
In recent years, there have been frequent occurrences of unexpected public health events, natural
disasters, and geopolitical conflicts. Similar force majeure events may continue to happen in the future,
posing risks to feed companies’ operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeure
risks and take necessary measures to respond to adverse impacts on procurement, production, sales, and
other operations caused by such events.
2. PV industry
(1) Risk of intensified market competition
According to forecasts by InfoLink Consulting, it is expected that in 2024, all segments of the
photovoltaic industry chain will exhibit varying degrees of excess capacity compared to current demand
projections. This will further exacerbate market competition, necessitating the inevitable elimination of
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outdated production capacity.
Risk response measures: The Company will persist in optimizing processes and lean management
while strengthening the efficiency of integrated operations along the industrial chain to maintain cost
leadership. Concurrently, in response to changing market application scenarios, there will be sustained
increases in R&D investments to ensure technological leadership across all segments. The Company
adjusts the pace of capacity release depending on dynamic market demands, leveraging its competitive
advantages to prioritize the release of advanced capacity.
(2) Policy risk
To implement climate governance, promote energy transformation, improve the environment, and
drive economic development, countries are vigorously supporting the development of the photovoltaic
applications. Major economies in the world are rolling out policy measures to support the development of
local photovoltaic companies, potentially intensifying global competition in the photovoltaic industry. In
China, policies related to land used for photovoltaic powerplant projects and market-based electricity
trading may pose challenges in ensuring land availability and lower the profitability of photovoltaic
powerplants.
Risk response measures: The Company will closely monitor changes in relevant policies, boost cost
reduction of products, enhance product competitiveness, and secure its competitive position. It will also
keep driving the healthy and orderly development of the industry, actively explore green certification and
green electricity transactions to safeguard its profitability.
(3) Technology update risk
New cell technologies are evolving with conversion efficiency once again reaching a historic record.
As of 2023, TOPCon cells had emerged as the market leader, with ongoing breakthroughs in next-
generation crystalline silicon cell technologies such as HJT and XBC. Concurrently, non-crystalline silicon
technologies like thin-film and perovskite were also advancing. With companies actively driving R&D
efforts, the Company's ability to sustain competitiveness may be compromised if it fails to keep pace with
these evolving technologies and industry shifts.
Risk response measures: Drawing on its global innovation R&D center, the Company pursues
concurrent R&D across multiple technological routes, including TOPCon, HJT, XBC, perovskite, and
stacked cells. This approach has yielded numerous patents across various technical domains, placing the
Company at the forefront in terms of conversion efficiency and cost-effectiveness. Guided by first
principles, the Company dynamically evaluates emerging technology trends across dimensions such as
economic viability, reliability, and market demand.
(4) International trade risk
The global trend towards globalization is decelerating, accompanied by a resurgence in trade
protectionism. Certain countries are imposing import barriers on Chinese photovoltaic products, along
with establishing traceability and carbon footprint thresholds. The possibility of such events in the future
cannot be ruled out, potentially exerting an influence on China's photovoltaic industry.
Risk response measures: The Company will continue to monitor international trade situation and
develop strategies to address trade barriers, accelerate the feasibility of overseas expansion, and broaden
customer channels for solar modules overseas, while strengthening its core competencies in product scale,
technology, and cost. By creating higher value for global customers, providing more efficient services,
and enhancing its market share, the Company aims to mitigate the potential impact.
(5) Other risks from force majeure
In recent years, there have been frequent occurrences of unexpected public health events, natural
disasters, and geopolitical conflicts, which have resulted in disruptions in logistics and transportation,
prolonged installation and construction cycles, and mismatches in supply and demand within the industry
chain. Similar force majeure events may continue to happen in the future, posing risks to feed companies’
operations.
Risk response measures: The Company will strengthen the analysis and prediction of force majeure
risks. By leveraging its industry chain resources and core competitive advantages, it will enhance supply
chain collaboration, boost customer development and maintenance efforts, and mitigate the adverse impact
of force majeure risks on its operations.
(V) Others
"□ Applicable" "√Not applicable"
VII. Note on the fact that the Company fails to disclose under standards due to inapplicability of the
standards due to inapplicability or national secrets and/or trade secrets and the reasons
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2023 Annual Report
"□ Applicable" "√Not applicable"
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2023 Annual Report
Section IV Company Governance
I. Company governance
"√Applicable" "□ Not applicable"
In the reporting period, the Company actively elevated its operation management level, and improved
its organizational structure and governance structure, and various internal systems, and risk management
given its actual conditions in strict accordance with the Company Law, Securities Law, Code of Corporate
Governance for Publicly Listed Companies and other legal requirements. The general meeting, the board
of directors, the supervisory committee and the management under clear powers and responsibilities, have
formed a procedure-based governance structure for the legal entity to ensure its smooth and efficient
running in accordance with regulations.
(I) Controlling shareholder and its related parties and listed companies
The controlling shareholder of the Company behaved, exercised rights and performed obligations
under laws, did not directly or indirectly interfere with the Company's decision-making and business
activities without the participation of the general meeting. Board of directors, supervisory committee and
the management performed independently and the Company had independent businesses and was able to
operate on its own. In the reporting period, the Company did not provide any guarantee to its controlling
shareholder and/or its related parties, and the controlling shareholder did not occupy any funds of the
Company for non-operating purposes. The related transactions were priced fairly without any influence
on the Company's independence or harm to the listed company.
(II) Shareholders and general meeting
In the reporting period, the Company held one annual general meeting. The procedures for the general
meeting were in compliance with the Company Law, Securities Law, Listing Rules of the Shanghai Stock
Exchange, Articles of Association, and Rules of Procedure for General Meeting and safeguarded the
legitimate interests of the Company and its shareholders. The convening, holding, voting, and result
disclosure were strictly implemented in accordance with the above rules, which effectively ensured
shareholders’ right to information, participate, and vote on major matters of the Company, as well as
safeguarded the equal status and legitimate rights and interests of shareholders.
(III) Directors and board
In the reporting period, the Company swiftly appointed independent directors and a chairman. It also
revised management policies, such as those governing related-party transactions and fundraising, in
accordance with updated legal and regulatory frameworks. Furthermore, it established protocols for the
operation of independent director duties and specialized board committees. The Company also formulated
guidelines for the selection and management of accounting firms and the conduct of independent director
special meetings. These efforts aim to continually enhance the Company's governance standards. In the
reporting period, the board held ten meetings. All directors attended the board meetings in accordance
with the Company’s Articles of Association and Rules of Procedure of the Board of Directors, fully
discussed various proposals, achieved deeply discussions and evaluations of all proposals and
comprehensively expressed their opinions and recommendations. This ensures the efficient, standardized,
and effective operation of the board of directors. The board has four committees, namely the Strategy and
Sustainability Committee, Remuneration and Assessment Committee, Nomination Committee, and Audit
Committee. In the reporting period, the four committees diligently and strictly fulfilled their duties in
accordance with their respective responsibilities and meeting rules. They fully leveraged their professional
capabilities to provide the board of directors with expert opinions and recommendations, ensuring the
scientific and professional nature of board decisions.
(IV) Supervisory committee and supervisors
In the reporting period, the supervisory committee held eight meetings, and the supervisors strictly
performed their duties in accordance with relevant laws and regulations such as the Company Law,
Securities Law, Listing Rules of the Shanghai Stock Exchange, Articles of Association, and Rules of
Procedure for Supervisory Committee. They exercised their powers independently in accordance with the
law and promoted the standard operation of the Company. The supervisory committee diligently carries
out its oversight responsibilities, closely monitoring the performance of directors and senior executives. It
oversaw significant matters concerning the Company's interests, including the use of raised funds, project
investments, related-party transactions, and external guarantees, ensuring the protection of the Company's
interests and the rights of its shareholders.
(V) Disclosure and transparency
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The Company attaches great importance to information disclosure and strictly observes the
provisions of Shanghai Stock Exchange on information disclosure of listed companies as set forth in
Securities Law. In the reporting period, the Company diligently fulfilled its disclosure obligations in
accordance with relevant regulatory documents, ensuring that the information disclosed was truthful,
accurate, and complete. The directors, supervisors, and senior management have carefully provided
written confirmation of their review of the Company's regular reports, ensuring the timely and equitable
disclosure of relevant information. The disclosed information was presented clearly and understandably,
without any false records, misleading statements, or significant omissions. The Company received the best
rating (Grade A) on information disclosure 2022 - 2023 from Shanghai Stock Exchange for its great
information disclosure.
In the reporting period, the Company managed insiders relating to periodical reporting and important
issues through the registration system in strict accordance with applicable regulations to ensure the fairness
principle for information disclosure and protect the legitimate rights and interests of shareholders.
(VI) Investor relationship management
The Company attaches high importance to long-term and active communications with all kinds of
investors. In the reporting period, the Company conveyed its operation philosophy, results and strategic
direction to investors through channels including general meetings, performance briefings and investor
platforms. In addition, it responded carefully and patiently to queries from investors via phone calls, emails,
visits and http://sns.sseinfo.com/, which helped investors understand and gain confidence in the Company,
and protected the Company's image in the capital market. In 2023, the Company was recognized with
numerous prestigious awards, such as the Best Practices in Investor Relations Management and
Outstanding Practices in Annual Performance Presentation from China Association for Public Companies,
Top 100 Most Valuable Companies Listed on the Main Board by STCN, and the Golden Bull Secretary of
the Board and the Most Valuable Investment Award from China Securities Journal.
(VII) Safeguard the rights and interests of shareholders
The Company highly prioritizes the rights and interests of shareholders, in particular the minority
interest. The Company fully safeguards shareholders' rights to exercise voting, inquiry, and proposal rights
in accordance with the law, and remains committed to providing long-term dividends to shareholders. In
the reporting period, the Company strictly adhered to the provisions outlined in its Articles of Association
and the Three-Year Shareholder Dividend Plan (2021-2023). On May 31, 2023, the Company distributed
an annual cash dividend of 12,866,616,618.766 yuan to all shareholders, enabling them to fully share the
fruits of the Company's development. On April 28, 2024, both the 2023 Profit Distribution Plan and the
Three-Year Shareholder Dividend Plan (2024-2026) were approved at the 18th meeting of the 8th board
of directors. According to the plans, the Company plans to distribute a cash dividend of 9.05 yuan
(including tax) per 10 shares to all shareholders. Based on the share capital of 4,501,973,746 shares at the
end of 2023, the total estimated cash dividend distribution amounts to 4,074,286,240.13 yuan, equivalent
to 30.02% of the net profit attributable to the shareholders of the parent company for the year 2023. The
adoption of rolling three-year shareholder dividend plan aims to enhance the transparency of the
Company's cash dividend policy and protect the legitimate rights and interests of all investors. The above
two proposals are to be submitted to the 2023 general meeting for review.
Significant difference between the corporate governance and provisions of laws, regulations and rules of
the CSRC on listed companies and the reasons
"□ Applicable" "√Not applicable"
II. Specific measures taken by the controlling shareholder and actual controller of the Company
for ensuring the Company’s independence in assets, personnel, financial affairs, organizational
structure and business activities, as well as solutions, progress and work plan for influencing
the Company’s independence
"√Applicable" "□ Not applicable"
The Company is strictly separated from its controlling shareholder and actual controller in terms of
assets, personnel, financial affairs, organizational structure and business activities, takes responsibilities
and risks independently. No matters that impact the Company's independence and that prevent it from
being independent or keeping independent operation exist.
(I) Asset independence
The Company owns a business system and a complete asset system with all relevant assets under its
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2023 Annual Report
control and owned and operated by the Company. The ownership between the Company and its controlling
shareholder is clearly defined and the Company has no assets or funds occupied by the controlling
shareholder and is exposed to any other circumstance that harms the interests of other shareholders of the
Company.
(II) Personnel independence
The Company has an independent system for personnel registration, on boarding, appointment,
dismissal and review, as well as an independent renumeration management and benefit system. Senior
managers (CEO, vice presidents, board secretary and financial director, etc.) serve the Company on a full-
time basis and receive renumeration from the Company. No controlling shareholder, actual controller
and/or businesses under their control assume positions other than directors and/or supervisor or receive
payments from the Company. No financial staff of the Company takes any part-time job in the controlling
shareholder, actual controller and/or businesses under their control.
(III) Financial independence
The Company has an independent finance and audit department, and an independent accounting
system and financial management system, being able to make financial decisions independently. As an
independent taxpayer, the Company makes tax returns and pays taxes under laws. The Company has
independent bank accounts and a special account for the use of funds raised for projects. The Company
does not share any bank account with its controlling shareholder, actual controller and/or businesses under
their control.
(IV) Structure independence
The Company has a completed governance structure consisting of general meeting, board of directors
and supervisory committee with respective procedures. Furthermore, the Company has developed a
complete operation management system with independence in power of management and not influenced
by its controlling shareholder or actual controller and/or companies controlled by them.
(V) Business independence
The Company has the assets, personnel, qualifications and capabilities for independent business
activities. The Company is independent of its controlling shareholder, actual controller and/or businesses
controlled by them in terms of business activities; it is not a competitor of its controlling shareholder,
actual controller and/or businesses controlled by them.
No issue that has an impact on the Company's independence has been found so far.
Controlling shareholder, actual controller and/or any other entity under their control is engaged in any
business identical or similar to the business of the Company, and any impact of competition between the
Company and its controlling shareholder, actual controller and/or any other entity under their control and
any great change in such competition, actions for resolving this impact that have been taken, the resolution
progress and the plan for next steps
"□ Applicable" "√Not applicable"
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2023 Annual Report
III. Introduction to general meeting
Link to the designated
website where the
Session No. Session date Disclosure date Resolutions
published resolutions
are available
The following proposals were approved during the meeting: 2022
Board of Directors Work Report, 2022 Supervisory Committee
Work Report, 2022 Annual Report and Summary, 2022 Annual
Accounts Report, Profit Distribution Plan for 2022, Proposal for
Renewal of the Accounting Firm Appointment, the Proposal for
Mutual Guarantee between the Company and Its Subsidiaries in
2023, the Proposal for Providing Guarantees to Customers in
2023, the Proposal for Applying for Comprehensive Credit in 2023,
the Proposal for Conducting Bill Pooling Business in 2023, the
Proposal for Applying for Registration and Issuance of Debt
Annual shareholders Financing Instruments (DFI), the Proposal for the Company's
May 16, 2023 http://www.sse.com.cn May 17, 2023
meeting 2022 Eligibility for Private Placement, the Proposal on the Initial Plan
for Private Placement by the Company, the Proposal for Analysis
Report on the Company's Plan for Private Placement, the
Feasibility Analysis Report on the Use of Funds Raised by this
Share Issuance, the Proposal for the Company's Previous
Fundraising Use Report, the Proposal for Dilution of Immediate
Returns and Measures to Fill the Gap and Related Commitments,
the Proposal to Authorize the Board of Directors and Authorized
Persons of the Board of Directors to Handle Matters Related to this
Private Placement, and the Proposal for the Appointment of
Additional Members to the 8th Board of Directors.
Extraordinary general meetings requested by the preferred shareholders whose voting rights have been restored
"□ Applicable" "√Not applicable"
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2023 Annual Report
IV. Information of directors, supervisors and senior managers
(I) Shareholding changes and renumeration of directors, supervisors and senior management currently in office and having left office in reporting period
"√Applicable" "□ Not applicable"
Unit: share
Total before-tax Whether
compensation receiving
Opening Closing Change in Reason for from the compensation
Name Title Gender Age Start date End date
shares shares shares change Company in the from related
reporting period parties of the
(in 10,000 yuan) Company
March 21,
Chair/CEO
2023 May 15,
Liu Shuqi Female 34 80,000 80,000 0 423.55 No
May 16, 2025
Director
2022
May 09, May 15,
Yan Hu Vice Chair Male 60 836,650 836,650 0 312.13 No
2016 2025
October 23, May 15,
Liu Hanyuan Director Male 59 0 0 0 248.36 No
2000 2025
May 12, May 15,
Ding Yi Director Female 59 0 0 0 8.00 No
2020 2025
September May 15,
Li Peng Director Male 42 0 0 0 / No
26, 2022 2025
May 03, March 21,
Xie Yi (retired) Director Male 40 217,622 / / Note 98.53 No
2016 2023
Independent May 08, May 15,
Fu Daiguo Male 59 0 0 0 16.00 No
director 2019 2025
Independent May 16, May 15,
Jiang Yumei Female 60 0 0 0 16.00 No
director 2022 2025
Song Dongsheng May 16, May 15,
Director
(newly appointed) 2023 2025
Male 61 0 0 0 81.02 No
Song Dongsheng Independent May 16, May 16,
(retired) director 2022 2023
Xu Yingtong Independent May 16, May 15,
Male 49 0 0 0 10.07 No
(newly appointed) director 2023 2025
Deng San Chair of Female 39 May 05, May 15, 225,880 225,880 0 193.30 No
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supervisory 2017 2025
committee
May 16, May 15, 0
Cui Yong Supervisor Male 41 0 0 5.00 Yes
2022 2025
May 16, May 15,
Chen Pingfu Supervisor Male 58 469,730 469,730 0 132.65 No
2022 2025
Senior May 16, May 15,
Li Bin Male 57 241,888 241,888 0 2,628.00 No
manager 2022 2025
Senior May 16, May 15,
Xing Guoqiang Male 60 0 0 0 375.77 No
manager 2022 2025
Senior May 16, May 15,
Gan Jufu Male 52 0 0 0 757.72 No
manager 2022 2025
Senior May 07, May 15,
Guo Yizhong Male 53 500,450 500,450 0 434.15 No
manager 2013 2025
Senior March 12, May 15,
Zhang Lu Male 45 281,600 281,600 0 264.89 No
manager 2017 2025
Senior May 08, May 15,
Zhou Bin Male 55 59,043 59,043 0 453.21 No
manager 2019 2025
Senior May 08, May 15,
Yan Ke Male 39 0 0 0 155.34 No
manager 2019 2025
Total / / / / / 2,912,863 2,695,241 / Note 6,613.69 /
Note: In the reporting period, Mr. Xie Yi resigned from his positions as Chair and CEO of the 8th board of directors of the Company due to personal reasons. He does
not hold any other positions within the Company, and thus, there is no need to disclose his shareholding at the end of the reporting period.
Name Work experience
Male, born in 1964, EMBA of Guanghua School of Management, Peking University, senior engineer. He was the chair of the first to sixth board of
directors of the Company, and a member of the seventh board of the Company. He is the chair of the board of directors of Tongwei Group and a
Liu Hanyuan
director of the 8th board of directors of the Company. Other social positions include a member of the 11th Standing Committee of the CPPCC
National Committee, deputy to the NPC (National People's Congress), and vice chair of All-China Federation of Industry and Commerce.
Female, born in 1989, a bachelor from the Queen Mary University of London. She served as the assistance to President of the Company, the general
manager of commerce in PV. She is now a supervisor of Tongwei Group, the chair of the 8th board of the Company and the Company's CEO. Her
Liu Shuqi
other social positions include vice chair of the China Photovoltaic Industry Association and vice chair of the executive committee of the Chengdu
Federation of Industry and Commerce.
Male, born in 1964, MBA of Guanghua School of Management, Peking University, senior accountant. He was the chief accountant of the Southwest
Yan Hu
Medical Equipment Co., Ltd., the manager on behalf of the US party in the GE Healthcare China Southwest Branch, financial director of Sichuan
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2023 Annual Report
Zhongyuan Industries Company Limited, executive deputy general manager of Chengdu Yuanda Wheel and Rim Manufacturing Co., Ltd., vice
president and financial director of South Hope Industrial Co., Ltd., director and financial director of New Hope Group, and the director of New
Hope Co., Ltd. After joining the Company, he has served as the chief accountant of Tongwei Group, chief accountant, president, and secretary of
the board of directors of the Company, and a director of the board of directors (1st, 2nd, 4th, 5th, 6th, and 7th) of the Company. He is a director and
the vice chair of the 8th board of directors of the Company. He is also an executive member of China Association for Public Companies (CAPCO),
the legal representative and vice-chair of Sichuan Association for Listed Companies, vice chair of Sichuan Enterprise Federation and Association
of Entrepreneurs, etc.
Female, born in 1964, a member of the Communist Party of China, doctoral degree in economics from the Renmin University of China. She worked
at Renmin University of China, Huaneng Power International, and China Life Asset Management Co., Ltd. She served as the chair of Huaneng
Ding Yi Capital Services Co., Ltd., Great Wall Securities and other companies. She is a director of the 8th board of the directors of the Company, and also
serves as an independent director of Huaxia Bank Co., Ltd, Huatai Asset Management Co., Ltd., SF International and Yuanshi New Materials Co.,
Ltd.
Male, born in 1982, doctor's degree in finance from School of Economics, Xiamen University. He served as a senior manager of investment banking
at CITIC Securities, and successively took roles the vice president, senior vice predsient and director of the energy and chemical industry group
under the investment banking management committee at CITIC Securities Co., Ltd; a senior researcher at the Innovation Business Division, the
Li Peng director of the Innovation Business Division(alternative investments), the head of the Equity Investment (secondary) and the Executive Director of
the Innovation Investment Business Division(alternative investments), of China Life Asset Management Co., Ltd. He currently serves as the Deputy
General Manager of the Innovation Investment Business Division of China Life Asset Management Co., Ltd., director of Beijing Jingneng Power,
China Tea, and Oriental Wisdom (Hebei) New Energy Co., Ltd. He is a director of the 8th board the Company.
Male, born in 1984, MIM from Imperial College London, UK, member of the CPC. He was the president assistance of Tongwei Group, chair of
Xie Yi the board of directors of Tongwei Solar (Hefei) Co., Ltd., chair of the board of directors of Tongwei Solar (Chengdu) Co., Ltd., and director, chair
of the board, and CEO of the Company.
Male, born in 1964, dean of the Western Business School of Southwestern University of Finance and Economics, a professor of accounting, doctoral
supervisor, and vice president of Chengdu Accounting Society. He served as an independent director of several companies such as Sichuan Crun
Fu Daiguo
Co., Ltd., Lier Chemical Co., Ltd., and Ingenic Semiconductor Inc. He is an independent director of the 8th board of directors of the Company, and
also an independent director of Maccura Biotechnology Co., Ltd. and Sichuan Langjiu Group Co., Ltd..
Female, born in 1963, doctoral degree in Law, a mentor of Ph. D candidates, and a recipient of the Special Government Allowance granted by the
State Council. She served as the Deputy Director of the Law Department and Vice Dean of the Law School, Deputy Director of the Graduate School
and Executive Dean of the International Business School at Southwestern University of Finance and Economics. Currently, she serves as the
executive president of the Institute of Comprehensive Research on China (Sichuan) Pilot Free Trade Zone at Southwestern University of Finance
and Economics, a member of the advisory committee for the Sichuan Provincial People’s Government and CPC Committee of Sichuan. She is also
Jiang Yumei
a member of the Decision-making Advisory Committee of the Sichuan Provincial Party Committee and Government; a member of the National
Steering Committee for the Education of Applied Graduates in International Business; vice chairman of the China Cooperation Committee for
International Trade Discipline; vice chair of the China Association of Trade in Services; member of the Free Trade Zone and Port Committee of the
China Academy of International Trade; vice chair of Sichuan Business Economics Association; expert of the Sichuan Trade Promotion Committee,
a certified expert on economics and management by the Ministry of Education; expert for the Advisory Committee of Chengdu Pilot Free Trade
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2023 Annual Report
Zone; member of the Decision-making Advisory Committee of the Luzhou Municipal Party Committee and Municipal Government; leader of
several teams, including the “Collaborative Innovation Center for Outbound Direct Investment from Inland Areas” of Sichuan Province, Innovation
Team for International Trade of Sichuan Province, and Comprehensive Reform Pilot Project for International Trade in Sichuan Province;
independent director of Chengdu Xingrong Environment Co., Ltd., Chengdu YMK Technology Co., Ltd., Liangshan Rural Commercial Bank Co.,
Ltd., and an external supervisor of Sichuan Tianfu Bank Co., Ltd. She is currently an independent director of the Company's eighth Board of
Directors.
Male, born in 1962, with a master’s degree, senior engineer, recipient of the Special Government Allowance granted by the State Council, and an
arbitrator of the Beijing Arbitration Commission. From 1981 to 1987, he worked in the Quality Section of the Technical Safety Division of the 11th
Engineering and Construction Bureau of Sino-hydro Corporation, serving as a quality inspector and deputy section chief. From 1987 to 1991, he
worked at Gu County Branch of the 11th Engineering and Construction Bureau of Sino-hydro Corporation, serving as deputy chief of Technical
Safety Section, a chief of Technology Section, and a deputy director of Acceptance Office. From 1991 to 1995, he worked in the 11th Engineering
and Construction Bureau of Sino-hydro Corporation, serving as a deputy head of the Technology Division and a director of the International
Song Department. In 1996, he served as the Chinese representative and assistant project manager of the Xiaolangdi CGIC Joint Venture. From 1996 to
Dongsheng 2004, he was the deputy head of the 11th Engineering and Construction Bureau of Sino-hydro Corporation. From 2004 to 2019, he worked for
Sino-hydro Corporation Limited, serving successively as deputy general manager, general manager, chairman of its international company, and
general manager of the Sino-hydro Corporation Limited. From 2016 to 2019, he served as the general manager of Power China International, chair
of Power China Trade, vice president of China International Contractors Association, and chair of the International New Energy Solution. Since
September 2019, he has served as an independent director of China Oil HBP Technology Co., Ltd., China National Complete Plant Import and
Export Corporation Limited and Jiangsu Huasheng Tianlong Photoelectric Co., Ltd. He currently serves as a director of the Company's 8th board
of directors.
Male, born in 1974, holds an MBA degree from Fudan University. He held positions such as Manager of GPRS PCU PDT, Director of Base Station
Software Platform Department/Wireless Software Platform Department, Director of Hangzhou Research Institute Wireless, President of Intelligent
Xu Yingtong
Photovoltaic Business, and President of Ascend AI Computing at Huawei Technologies Co., Ltd. Currently, he serves as the Chairman and CEO of
Shanghai Sigenergy Technology Co., Ltd., and an independent director of the 8th board of directors of the Company.
Female, born in 1984, CPC member, MBA of Sichuan University. She was the head of the secretary department of Tongwei Group, assistant to the
Deng San chair of the board of directors of Tongwei Group, and the chair of the 6th and 7th supervisory committees of the Company. She is the chair of the
8th supervisory committee of the Company.
Male, born in 1982, graduated from the School of Civil and Commercial Law, Southwest University of Political Science, qualified to law practice.
Cui Yong He served as an inspector at the Supervision and Inspection Department of Tongwei Group, an assistant to the head of the Department, a deputy
head of the Department, and the head of the Department. Now he is a member of the 8th supervisory committee of the Company.
Male, born in 1965, EMBA, CPA. He was the general manager of Sichuan Tongwei, the general manager of Vietnam Tongwei, the general manager
of Sichuan and overseas areas for the Company's agriculture and animal husbandry business group, the general manager of Vietnam Tongwei 1st
Chen Pingfu
Area business, the deputy general manager of the Company's agriculture and animal husbandry business group, and a member of the 4th and 5th
board of directors of the Company. He is a member of the 8th supervisory committee of the Company.
Male, born in 1966, graduated from Chongqing University with a major in mining machinery, MBA from Hong Kong Finance and Economics
Li Bin
College. He is a member of the Communist Party of China and a senior mechanical engineer. He is an outstanding high-level talent in Leshan City,
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2023 Annual Report
and has won honors such as the China Patent Excellence Award and the Sichuan Science and Technology Progress Award. He is a vice president
of the Company and the general manager of Yongxiang Co., Ltd. His other social positions include the 8th Party Representative of Leshan City,
member of the Standing Committee of the 8th People’s Congress of Leshan City, vice chair of the 7th Executive Committee of the Leshan
Federation of Industry and Commerce (Chamber of Commerce). He is a representative of the 10th People’s Congress of Wutongqiao District,
Leshan City, executive director of the Sichuan Strategic Emerging Industry Promotion Agency, and graduate student supervisor of the Power
Engineering Department of the College of Chemical Engineering at Sichuan University.
Male, born in 1970, has held various positions including general manager of Jieyang Tongwei, general manager of Guangdong Tongwei, general
manager of Guangdong and Shrimp Special Materials Area for the Company's agriculture and animal husbandry business group. He served as the
general manager of the agriculture and animal husbandry business group from October 2015 to May 2022. Since May 2022, he has served as the
president of agriculture and animal husbandry business group of the Company and the general manager of Tongwei Agriculture Development Co.,
Guo Yizhong
Ltd. He has also served as executive vice president of the 8th Council of China Feed Industry Association and member of the Quality and Safety
Work Committee, vice director of Sichuan Society of Aquatic Products, vice president of Sichuan Association of Feed Industry, vice president of
Sichuan Animal Agriculture Association, executive vice president of Frog Industry Branch of China Aquatic Products Processing and Marketing
Association, and vice president of China Association for the Promotion of International Agricultural Cooperation.
Male, born in 1979, doctoral degree and a researcher. Recipient of the State Council Special Allowance, recognized as an outstanding young talent
by the Ministry of Agriculture and Rural Affairs, an expert in the E’mei Plan of Sichuan Province, and a Golden Panda Talent by Chengdu City. He
is a vice chair of China Society of Fisheries, vice chair of China Society of Forestry, Animal Husbandry and Fishery Economics, director of the
Key Laboratory of Nutrition and Health Aquaculture of the Ministry of Agriculture and Rural Affairs, director of the Sichuan Provincial Key
Laboratory of Aquatic Animal Nutrition and Feed Science, member of the National Feed Industry Standardization Technical Committee, head of
the Feed Detection Method Standardization Working Group of the National Feed Industry Standardization Technical Committee, deputy secretary-
general of the Technical Committee on Aquatic Feed of the National Feed Industry Standardization Technical Committee, member of the National
Aquatic Standardization Technical Committee, external supervisor of master candidates at Ocean University of China, guest professor at Nanjing
Agricultural University, external supervisor of master candidates at Sichuan Agricultural University, external supervisor of master candidates at
Hu’nan Agricultural University, a part-time teacher at Zhejiang University and reviewer for international journals. He has led on or participated in
Zhang Lu
16 projects, including the Blue Granary project sponsored by the Chinese Ministry of Science and Technology and other key scientific and
technological projects at the provincial and ministerial levels. Some outcomes have won one Second Prize of National Science and Technology
Progress Award, one First Prize of Chinese Agricultural Science and Technology Award, two First Prizes of Sichuan Science and Technology
Progress Award, one First Prize of Shandong Science and Technology Progress Award, and seven other important awards at provincial and
ministerial levels. As the head of the Feed Detection Method Standardization Working Group of the National Feed Industry Standardization
Technical Committee, he has led on the formulation or revision of 6 national and industry standards for feed. Zhang Lu has published 18 papers as
the first or corresponding author in domestic and foreign journals, including 12 SCI papers. 12 invention patents and 14 utility model patents were
granted with him as the first inventor. He edited or translated two books. He served as the Technical Director of Fish Feed at Guangdong Yuehai
Feed Group. Currently, he holds positions as vice president and the director of the agriculture and animal husbandry technology center of the
Company, as well as the deputy general manager and technology director of Tongwei Agricultural Development Co., Ltd.
Xing Male, born in 1963, holds a bachelor’s degree in physics from Peking University, a master’s degree in physics and a doctor's degree in chemistry
Guoqiang from Rice University. He took part in a post-doctoral program in the chemistry department of the Columbia University. He has won the first prize
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2023 Annual Report
of Shanghai Science and Technology Progress Award, the first prize of China Renewable Energy Society Science and Technology Progress Award,
and the first prize of Jiangsu Science and Technology Award. He was selected into the Jiangsu High-level Program for Introducing Innovative and
Entrepreneurial Talent, Sicuan “Tianfu E’mei Program” for Talents in Green and Low-carbon Industries, and Chengdu “Rongpiao Program” for
Leaders in Starting Green and Low-carbon Businesses. He holds more than 100 authorized patents in and beyond China. He served as the
leader/chief expert of some 863 Projects, member of the Photovoltaic Professional Committee of China Renewable Energy Society, and co-chair
of the SEMI International Technology Roadmap for Photovoltaic (ITRPV). He was formerly the senior vice president and chief technology officer
of CSI Solar. Currently, he is the chief technology officer of the Company's PV business group, and the director of technology center (National) of
Tongwei Solar (Chengdu) Co., Ltd.
Male, born in 1971, MBA from Xi’an Jiaotong University. He is a member of the Communist Party of China and a senior chemical engineer. He
has been honored as excellent expert with outstanding contributions in Sichuan Province and a model individual in the science and technology
community of Sichuan Province. He has twice won the second prize of Science and Technology Progress Award in Sichuan Province, as well as
the special prize, first prize of Science and Technology Progress Award in Leshan City. He has applied for 101 patents for technological
achievements in which he has served as a project leader or participant, and 66 of them have been granted, including 5 inventions for which he is
Gan Jufu
one of the top two inventors. He held important positions in companies such as E’mei 739, Xinguang Silicon Technology, and Jiangsu Zhongneng.
He joined the Company in June 2013 and has served as the chief engineer and deputy general manager of Sichuan Yongxiang Polysilicon Co., Ltd.,
the general manager of Inner Mongolia Tongwei High-purity Crystalline Silicon Company. He is now the director of the Technology Center
(National) of Yongxiang Co., Ltd., the general manager of Sichuan Yongxiang Energy Technology Co., Ltd., the executive vice president and
director of the Leshan West Silicon Materials Photovoltaic and New Energy Industry Technology Research Center.
Male, born in 1968, bachelor degree in accounting from Shanghai University of Finance and Economics, master degree from Southwest Jiaotong
University, MBA from University of South Australia, CPA (Certified Public Accountant) and CPV (Certified Public Valuer). He previously worked
Zhou Bin in MCCS Group Shanghai Corporation Limited and Zhongshen Accounting Firm, served as the legal representative of Sichuan Beite Certified
Public Accounting Firm, the general manager of Sichuan Zhongfa Certified Tax Accountant Firm and the financial director of Yongxiang Co., Ltd
since April 2013 when he joined Tongwei. From May 2019, he has been the Company's financial director.
Male, born in 1985, bachelor degree in accounting from Southwest University of Finance and Economics. He served as the Company's securities
Yan Ke
affairs representative. He has been the board secretary of the Company since May 2019.
Other notes
"√Applicable" "□ Not applicable"
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2023 Annual Report
(II) Other offices of directors, supervisors and senior management currently in office and having
left office in reporting period
1. Offices in shareholders
"√Applicable" "□ Not applicable"
Name in office Shareholder name Title Start date End date
Chair of the board of
Liu Hanyuan Tongwei Group Co., Ltd. March 2008
directors
Liu Shuqi Tongwei Group Co., Ltd. Supervisor December 2019
Head of the Supervision
Cui Yong Tongwei Group Co., Ltd. April 2022
Department
Deputy General
China Life Asset
Manager of the
Li Peng Management Company January 2024
Innovation Investment
Limited
Business Division
Note on offices
None
in shareholders
2. Offices in other entities
"√Applicable" "□ Not applicable"
Name in End
Entity name Title Start date
office date
Southwestern University of Finance
Professor December 2002
and Economics
Fu Daiguo
Maccura Biotechnology Co., Ltd. Independent director January 2019
Sichuan Langjiu Co., Ltd. Independent director July 2019
Huaxia Bank Co., Ltd. Independent director September 2020
Huatai Asset Management Co., Ltd. Independent director September 2020
S.F. Holding Co., Ltd. Independent director December 2022
Ding Yi
Yuanshi New Materials Co., Ltd. Independent director November 2021
Xi'an Togeek Information Technology
Senior Advisor January 2022
Co., Ltd.
China Oil HBP Technology Co., Ltd. Independent director September 2019
China National Complete Plant
Song Import and Export Corporation Independent director April 2020
Dongsheng Limited
Jiangsu Huasheng Tianlong
Independent director June 2020
Photoelectric Co., Ltd.
Oriental Wisdom (Hebei) New Energy
Director February 2022
Co., Ltd.
Li Peng
Beijing Jingneng Power Director December 2022
China Tea Director December 2019
Executive President
of the Institute of
Southwestern University of Finance Comprehensive
April 2017
and Economics Research on China
(Sichuan) Pilot Free
Trade Zone
Jiang Yumei
Chengdu Xingrong Environment Co.,
Independent director August 2020
Ltd.
Chengdu YMK Technology Co., Ltd. Independent director May 2022
Liangshan Rural Commercial Bank
Independent director December 2022
Co., Ltd.
Sichuan Tianfu Bank Co., Ltd. External supervisor May 2022
Xu Shanghai Sigenergy Technology Co.,
Chair and CEO May 2022
Yingtong Ltd.
Note on None
59 / 293
2023 Annual Report
offices in
other
entities
(III) Renumeration of directors, supervisors, and senior managers
"√Applicable" "□ Not applicable"
Under the relevant provisions of the Company Law, Code of
Corporate Governance for Publicly Listed Companies, the
Articles of Association and the Detailed Rules of Remuneration
and Assessment Committee, the Remuneration and Assessment
Committee is responsible for formulating and reviewing the
compensation policies and schemes for directors and senior
managers. It assesses the performance of directors and senior
managers and recommends their compensation allocation to the
board of directors. The compensation allocation for senior
Procedures for determining the
management of the Company is subject to review and approval by
remuneration for directors,
the board of directors, while the compensation allocation for
supervisors and senior managers
directors is subject to review and approval by the board of directors
before being submitted to the general meeting for approval and
implementation. The supervisory Committee of the Company is
responsible for exploring and reviewing the compensation policies
and schemes for supervisors, assessing the performance of
supervisors, and recommending their compensation allocation to
the general meeting. The compensation allocation is then subject
to review and approval by the general meeting before
implementation.
Whether directors should abstain
from discussions regarding their
Yes
own compensation matters during
board meetings
On April 13, 2023, the Compensation and Assessment Committee
reviewed and approved the proposal titled Proposal on the
Compensation and Assessment for Senior Managers for the Year
2022 and the Compensation and Assessment Scheme for the Year
2023. The committee concluded that the compensation assessment
for senior managers for the year 2022 complied with the 2022
compensation assessment scheme. Furthermore, they believed that
the compensation assessment scheme for the year 2023 would
effectively motivate the senior managers, ensuring the
implementation of the Company's strategic objectives made at the
The specific details of
general meeting and the board of directors level, thereby creating
recommendations made by the
greater value for the Company and its shareholders. The proposal
Compensation and Assessment
was agreed upon to be submitted for review at the 10th meeting of
Committee or a special meeting of
the 8th board of directors of the Company.
independent directors regarding
On December 22, 2023, the Compensation and Assessment
compensation matters for
Committee reviewed and approved the proposal titled Proposal on
directors, supervisors, and senior
the Compensation and Assessment for Senior Managers for the
management
Year 2023 and the Compensation and Assessment Scheme for the
Year 2024. All members of the committee believed that the
compensation assessment for senior managers for the year 2023
complied with the 2023 compensation assessment scheme and the
compensation assessment scheme for the year 2024 would
effectively motivate the senior managers, ensuring the
implementation of the Company's strategic objectives made at the
general meeting and the board of directors level, thereby creating
greater value for the Company and its shareholders. The proposal
was agreed upon to be submitted for review at the 16th meeting of
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2023 Annual Report
the 8th board of directors of the Company.
1. The renumeration for directors. supervisors and senior managers
who take specific roles in production and operation of the
Company consists of a base, performance-based bonus and
allowances. The Company determines the compensation for
directors, supervisors, and senior managers based on job
requirements, responsibilities, and performance, in conjunction
with the Company's performance and achievements within
Basis for the renumeration of
respective functional areas and business groups. This
directors, supervisors, and senior
determination is made in accordance with the Compensation
managers
Management Measures and the Performance Management
Measures.
2. Directors and supervisors who do not hold full-time roles in the
Company received fixed allowances annually. Costs for
performance of director and/or supervisor duties are from the
Company's annual funds of board of directors and/or funds of
supervisory committee.
In accordance with the Company's compensation management and
distribution system, the compensation for directors, supervisors,
and senior managers holding specific production and operational
positions within the Company is partially paid in the current year,
with the remainder deferred and gradually disbursed in future
Actual payments to directors,
years. In the table Changes in Shareholdings and Compensation
supervisors, and senior managers
for Current and Departing Directors, Supervisors, and Senior
Managers in the reporting period, the “total pre-tax compensation
received from the Company in the reporting period” for directors,
supervisors, and senior managers includes amounts that are
deferred and will be gradually disbursed in future years
Total renumeration received by
directors, supervisors, and senior
66,136,900 yuan
managers as of the end of the
reporting period
(IV) Changes in directors, supervisors, and senior managers
"√Applicable" "□ Not applicable"
Name Title Change Reason for change
Resigned for personal
Xie Yi Director Resigned
reasons
Resigned for personal
Song Dongsheng Independent director Resigned
reasons
Song Dongsheng Director Elected
Xu Yingtong Independent director Elected
(V) Notes on penalties from securities regulators
"□ Applicable" "√Not applicable"
(VI) Others
"□ Applicable" "√Not applicable"
V. Board of directors meetings held in the reporting period
Session No. Session date Resolutions
Reviewed and approved the Proposal on the Changes in Accounting
7th meeting of the 8th
January 19, 2023 Policies and the Proposal on 2022 Provision for Asset Impairment and
board of directors
Loss from Scrap of Fixed Assets.
8th meeting of the 8th Reviewed and approved the Proposal on Investing the 120,000 -ton
February 07, 2023
board of directors High-purity Polysilicon and Supporting Project in Leshan.
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2023 Annual Report
Reviewed and approved the Proposal on Selection of the Chair and
9th meeting of the 8th
March 21, 2023 CEO of the Company, and the Proposal on Adjusting the Members of
board of directors
Board Committees.
The following proposals were reviewed and approved: 2022 Board of
Directors Work Report, 2022 General Manager Work Report, 2022
Independent Directors Work Report, 2022 Work Report by Audit
Committee, 2022 Annual Report and Summary, 2022 Annual Accounts
Report, Profit Distribution Plan for 2022, 2022 Environmental, Social
and Governance Report, Proposal on the Compensation and
Assessment for Senior Managers for the Year 2022 and the
Compensation and Assessment Scheme for the Year 2023, 2022
Internal Control Audit Report, 2022 Assessment Report on Internal
Controls, the Audit Committee's Summary on Sichuan Huaxin (Group)
Accounting Firm (Special General Partnership)'s Engagement in the
Company’s Audit for the Year 2022, the Special Report on the Deposit
and Utilization of Funds Raised in 2022, the Proposal for Renewal of
the Accounting Firm Appointment, the Proposal for Mutual Guarantee
between the Company and Its Subsidiaries in 2023, the Proposal for
Providing Guarantees to Customers in 2023, the Proposal for
Applying for Comprehensive Credit in 2023, the Proposal for
10th meeting of the 8th
April 21, 2023 Conducting Bill Pooling Business in 2023, the Proposal for Applying
board of directors
for Registration and Issuance of Debt Financing Instruments (DFI),
Proposal on the Utilization of Short-Term Cash Overage for Wealth
Management in 2023, the Proposal for Conducting Hedging Activities
in 2023, the 2023Q1 Report, the Proposal on Amending A Range of
Policies, the Proposal on Appointment of Additional Members to the
8th Board of Directors, the Proposal for the Company's Eligibility for
Private Placement, the Proposal for the Company's Plan for Private
Placement, the Proposal on the Initial Plan for Private Placement by
the Company, the Proposal for Analysis Report on the Company's Plan
for Private Placement, the Feasibility Analysis Report on the Use of
Funds Raised by this Share Issuance, the Proposal for the Company's
Previous Fundraising Use Report, the Proposal for Dilution of
Immediate Returns and Measures to Fill the Gap and Related
Commitments, the Proposal to Authorize the Board of Directors and
Authorized Persons of the Board of Directors to Handle Matters
Related to this Private Placement, and the Proposal on Convening the
Annual General Meeting for the Year 2022.
Reviewed and approved the Proposal on Adjusting the Members of
11th meeting of the 8th Special Committees of the 8th Board of Directors, and the Proposal on
June 06, 2023
board of directors Investing in a 25GW Solar Cell and 20GW Photovoltaic Module
Project in Shuangliu District, Chengdu City.
Reviewed and approved the 2023 Semi-year Report and its Summary,
the Semi-year Special Report on the Storage and Actual Use of Raised
12th meeting of the 8th Funds in 2023, the Proposal on Investing into the 16GW Rod Pulling
August 18, 2023
board of directors and Cutting and Solar Cell Project in Emeishan City, Leshan and the
Proposal on Investing into the 16GW Rod Pulling and Cutting and
Solar Cell Project in Wutongqiao District, Leshan.
13th meeting of the 8th September 25, Reviewed and approved the Proposal on Terminating the Private
board of directors 2023 Placement.
14th meeting of the 8th
October 24, 2023 Reviewed and approved the 2023Q3 Report.
board of directors
15th meeting of the 8th November 07, Reviewed and approved the Proposal on Not Downward Adjusting the
board of directors 2023 Price of Tong22 Convertible Bonds.
Reviewed and approved the following proposals: Proposal on
16th meeting of the 8th December 24,
Extending the Employee Share Plan for 2021-2023, the Proposal on
board of directors 2023
Anticipated and Feasibility Analysis of Hedging Transactions for the
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2023 Annual Report
Year 2024, the Proposal on Concluding Investment Projects and
Permanently Supplementing Surplus Raised Funds with Working
Capital, the Proposal on Investment in and Construction of Green
Building Materials Integrated Project in Ordos City, the Proposal on
Compensation Assessment for Senior Managers for 2023 and
Compensation Assessment Scheme for 2024, and the Proposal on
Amending or Establishing a Range of Policies.
VI. Performance of duties by directors
(I) Attendances at board of directors meetings and general meetings by directors
Attendance
Attendance at board of directors meetings at general
meetings
Number of
board of Number of
Director Independent
directors Absence general
Name director Number
meetings the In by from two meetings
Virtual of
director person proxy consecutive the director
absences
should have meetings has
attended in attended
the year
Liu
No 10 10 8 0 0 No 1
Hanyuan
Xie Yi No 2 2 2 0 0 No /
Yan Hu No 10 10 8 0 0 No 1
Liu Shuqi No 10 10 8 0 0 No 1
Li Peng No 10 10 10 0 0 No 0
Ding Yi No 10 10 9 0 0 No 0
Fu Daiguo Yes 10 10 8 0 0 No 1
Song Yes 4 4 4 0 0 No 0
Dongsheng No 6 6 5 0 0 No /
Jiang
Yes 10 10 10 0 0 No 0
Yumei
Xu
Yes 6 6 6 0 0 No /
Yingtong
Note on absence from two consecutive meetings
"□ Applicable" "√Not applicable"
Number of board of directors meetings held in the year 10
In which: Number of physical meetings 0
Number of virtual meetings 8
Number of virtual and physical combined meetings 2
(II) Director objections on issues of the Company
"□ Applicable" "√Not applicable"
(III) Others
"□ Applicable" "√Not applicable"
VII. Committees under the board of directors
"√Applicable" "□ Not applicable"
(I) Members of committees under the board of directors
Committee Members
Audit Committee Fu Daiguo, Jiang Yumei, and Yan Hu
Nomination Committee Jiang Yumei, Xu Yingtong, and Liu Shuqi
63 / 293
2023 Annual Report
Remuneration and Assessment Committee Xu Yingtong, Fu Daiguo and Liu Shuqi
Liu Shuqi, Liu Hanyuan, Yan Hu, Xu Yingtong, and Li
Strategy and Sustainability Committee
Peng
(II) Five meetings held by the Audit Committee in the reporting period
Other
Important opinions and information on
Session date Content
recommendations performance of
duties
All proposals were approved and
they believed that 1: the revised
accounting policies were capable of
objectively and fairly reflecting the
1. Reviewed the Proposal on
financial position and operating
the Changes in Accounting
results of the Company; and 2. the
Policies; 2. Reviewed the
January 13, 2023 provision for asset impairment and
Proposal on 2022 Provision
the amount of fixed asset write-offs
for Asset Impairment and Loss
in this period were in line with the
from Scrap of Fixed Assets.
actual circumstances of the
Company, contributing to the
provision of more accurate and
reliable accounting information.
Reviewed the following topics:
Reviewed and approved the
1. 2022 Report and Summary of
following topics: 1. 2022 Report and
Tongwei Co., Ltd., 2. Summary
Summary of Tongwei Co., Ltd., 2.
of the 2022 Audit Work by
Summary of the 2021 Audit Work by
Sichuan Huaxin (Group) CPA
Sichuan Huaxin (Group) CPA
(Special General Partnership),
(Special General Partnership), 3.
3. Proposal for Renewal of the
Proposal for Renewal of the
Accounting Firm Appointment,
Accounting Firm Appointment, 4.
4. 2022 Internal Control Audit
April 16, 2023 2022 Internal Control Audit Report,
Report, 5. 2022 Assessment
5. 2022 Assessment Report on
Report on Internal Controls, 6.
Internal Controls, 6. Special Report
Special Report on the Storage
on the Storage and Actual Use of
and Actual Use of Raised
Raised Funds in 2022, 7. 2022
Funds in 2022, 7. 2022 Annual
Annual Accounts Report, 8. 2022
Accounts Report, 8. 2022 Work
Work Report by Audit Committee,
Report by Audit Committee,
and 9. 2023Q1 Report of Tongwei
and 9. 2023Q1 Report of
Co., Ltd.
Tongwei Co., Ltd.
They approved all the proposals and
believed that : 1.the extraordinary
financial accounting report for the
first half of 2023 accurately and
comprehensively reflected the
Company's financial condition and
Reviewed 1. 2023 Semi-year
operational developments during the
Report, and 2. Semi-year
period; and 2. the storage and
August 17, 2023 Special Report on Storage and
utilization of raised funds complied
Actual Use of Raised Funds in
with relevant regulations of the
2023.
China Securities Regulatory
Commission and the Shanghai Stock
Exchange regarding the
management of funds raised by
listed companies, with no instances
of non-compliance.
October 24, 2023 Reviewed the Q32023 Report Reviewed and approved the report
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2023 Annual Report
of Tongwei Co., Ltd. and believed that the third-quarter
report for 2023 truthfully, accurately,
and comprehensively reflected the
financial condition and operational
developments of the Company for
the third quarter and the preceding
three quarters of 2023.
Reviewed and approved the
proposal and believed that
implementation of futures and
derivatives hedging operations was
beneficial for responding to
fluctuations in raw material and
finished product prices as well as
mitigating the impact of fluctuations
in interest rates and exchange rates
on the Company's operating
Reviewed the Proposal on
performance, thereby reducing
December 22, Anticipated and Feasibility
operational risks.
2023 Analysis of Hedging
The Company has established a
Transactions for the Year 2024.
robust internal control system and
streamlined processes, alongside a
well-developed business risk control
framework, for futures and
derivatives hedging.
The potential investment losses from
hedging operations are well within
the Company's capacity to absorb,
ensuring manageable and controlled
investment risks.
(III) Two meetings held by the Nomination Committee in the reporting period
Other
information
Important opinions and
Session date Content on
recommendations
performance
of duties
In light of Ms. Liu Shuqi's role as a
director on the 8th board of directors
and her positions as Assistant to the
President and General Manager of the
Photovoltaic Business Department,
where she effectively managed
procurement and sales of silicon
Reviewed the Proposal
materials, cells, and modules,
on Selection of the Chair
March 19, 2023 showcasing strong leadership and
and CEO of the
fostering a highly advantageous supply
Company.
chain network that resulted in
outstanding operational achievements,
the committee proposed to appoint Ms.
Liu Shuqi as the chairperson of the 8th
board of directors and the CEO. This
recommendation has been submitted for
approval by the board of directors.
Reviewed the Proposal In response to the company's evolving
April 17, 2023 on Appointment of needs, the committee nominated Mr.
Additional Members to Song Dongsheng as a director for the
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2023 Annual Report
the 8th Board of 8th board of directors of the Company.
Directors. Mr. Song Dongsheng has extensive
industry experience in the fields of
power and trade, aligning with the
Company's requirements for the
development of its new energy
business. The committee also
nominated Mr. Xu Yingtong as a
candidate for an independent director
for the 8th board of directors of the
Company. Mr. Xu Yingtong possesses
profound insights and influence in the
global photovoltaic industry, with a
profound understanding of industry
trends and technological developments.
His experience and capabilities align
with the qualifications required for
serving as an independent director of
the Company.
(IV) Two meetings held by the Remuneration and Assessment Committee in the reporting period
Other
Important opinions and information on
Session date Content
recommendations performance of
duties
Reviewed and approved the proposal and
believed that the compensation
assessment for senior managers for the
Reviewed the Proposal
year 2023 complied with the 2023
on the Compensation and
compensation assessment scheme and
Assessment for Senior
the compensation assessment scheme for
Managers for the Year
April 13, 2023 the year 2024 would effectively motivate
2022 and the
the senior managers, ensuring the
Compensation and
implementation of the Company's
Assessment Scheme for
strategic objectives made at the general
the Year 2023.
meeting and the board of directors level,
thereby creating greater value for the
Company and its shareholders.
Reviewed and approved the proposals
and believed that 1. the current stock
market price did not fully reflect the
Company's value, and in order to
Reviewed 1. Proposal on safeguard the interests of all participants
Extending the Employee in the employee stock ownership plan, it
Share Plan for 2021- was agreed to extend the duration of the
2023, and 2. Proposal on 2021-2023 Employee Share Plan by 24
the Compensation and months, namely, extending it until
December 22,
Assessment for Senior February 24, 2026; 2. the compensation
2023
Managers for the Year assessment for senior managers for the
2023 and the year 2023 complied with the 2023
Compensation and compensation assessment scheme and
Assessment Scheme for the compensation assessment scheme for
the Year 2024. the year 2024 would effectively motivate
the senior managers, ensuring the
implementation of the Company's
strategic objectives made at the general
meeting and the board of directors level,
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2023 Annual Report
thereby creating greater value for the
Company and its shareholders.
(V) Two meetings held by the Strategy and Sustainability Committee in the reporting period
Other
information
Important opinions and
Session date Content on
recommendations
performance
of duties
Reviewed the following
proposals: 1. Proposal for the They approved all the proposals
Company's Eligibility for and believed that the Company
Private Placement; 2. Proposal met all the conditions for private
for the Company's Plan for placement of Renminbi ordinary
Private Placement; 3. Proposal shares (A shares), and the related
on the Initial Plan for Private issuance scheme was rational and
Placement by the Company; 4. rigorous. The raised funds are
April 14, 2023 Proposal for Analysis Report intended for investment in the
on the Company's Plan for construction of a total of 400,000
Private Placement; 5. tons high-purity polysilicon
Feasibility Analysis Report on project, aiming to further solidify
the Use of Funds Raised by the Company's leading position in
Private Placement; and 6. high-purity polysilicon globally
Proposal for the Company's and continuously enhance its
Previous Fundraising Use overall competitiveness.
Report.
Approved the proposal and
believed that this investment
would bolster the Company's
advantage in production capacity,
Reviewed the Proposal on
enabling us to offer industry
Investing in a 25GW Solar Cell
partners and end-users more cost-
June 03, 2023 and 20GW Photovoltaic
effective photovoltaic products
Module Project in Shuangliu
and it would ensure the steady
District, Chengdu City.
growth of our photovoltaic
business, in line with our strategy
to become a world-class clean
energy enterprise.
Approved the proposals and
believed that this investment
would bolster the Company's
Reviewed 1. Proposal on
advantage in production capacity,
Investing into the 16GW Rod
centered around core elements
Pulling and Cutting and Solar
such as high-purity polysilicon,
Cell Project in Emeishan City,
August 17, rod pulling and cutting, high-
Leshan; and 2. Proposal on
2023 efficiency solar cells, and high-
Investing into the 16GW Rod
efficiency solar modules, and
Pulling and Cutting and Solar
would ensure the stable growth of
Cell Project in Wutongqiao
our photovoltaic business.in line
District, Leshan.
with our strategy to become a
world-class clean energy
enterprise.
Approved the proposal and
Reviewed the Proposal on believed that the decision to
September 25,
Terminating the Private terminate the private placement
2023
Placement was made after comprehensive
consideration of various factors,
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2023 Annual Report
including the current capital
market conditions and the actual
development of the Company, and
the termination of this share
issuance would not significantly
impact the Company's strategic
development plans or its
competitiveness in the market.
Approved the proposal and
believed that this investment
project would enable the
Company to leverage the abundant
natural resources and well-
established photovoltaic industry
Reviewed the Proposal on
chain in the Inner Mongolia
Investment in and Construction
December 22, Autonomous Region, further
of Green Building Materials
2023 solidify the Company's position as
Integrated Project in Ordos
a world leader in the high-purity
City.
polysilicon sector, and also play a
catalytic role in achieving the
overall strategic objectives of the
Company's photovoltaic business
and fostering long-term
sustainability.
(VI) Specific circumstances where objections were raised
"□ Applicable" "√Not applicable"
VIII. Note on supervisory committee's findings of the Company's risks
"□ Applicable" "√Not applicable"
The supervisory committee did not raise any objection to matters supervised in the reporting period.
IX. Employees of the parent company and major subsidiaries at the end of the reporting period
(I) Employees
Number of active employees of the parent company 619
Number of active employees of major subsidiaries 55,787
Total employees 56,406
Number of retirees for whom the parent and major subsidiaries must
54
bear relevant expenses
Profession structure
Profession Number of employees
Production 33,747
Sales 3,903
Technology 12,586
Finance 824
Administration 5,346
Total 56,406
Education structure
Education background Number of employees
Master's degree or higher 987
Bachelor's degree 12,444
Lower than bachelor's degree 42,975
Total 56,406
(II) Compensation policy
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2023 Annual Report
"√Applicable" "□ Not applicable"
Following principles of responsibility and value, while balancing external competitiveness and
internal fairness, the Company has established an effective compensation-based incentive mechanism
aimed at promoting Company growth and achieving operational objectives. This mechanism ensures that
employees' value contributions and rewards are closely aligned with the Company's operational goals and
long-term development. Balancing internal fairness and external competitiveness through compensation,
the Company endeavors to attract top talent from external sources, while also motivating, developing, and
retaining internal high-potential individuals. This approach serves to drive and inspire employees towards
self-development and advancement. Also, guided by the performance-oriented strategy, performance is
seamlessly integrated with compensation, aligning employee income and individual performance with the
Company's overall operational success. This involves enhancing both existing fixed and long-term
incentives to fully harness the motivating power of compensation and enhance the Company's operational
effectiveness.
(III) Training projects
"√Applicable" "□ Not applicable"
Talent is the most essential resource in the process of Tongwei’s development and growth. Guided
by the cultural values of striving for excellence in everything, the Company has established a
comprehensive talent development system. Continuously efforts into talent selection, use, development
and retention, and the deployment of effective incentive policies fully guarantee the retention and personal
development of talent. The talent development framework is horizontally organized around business
divisions, with tailored training, curriculum, and internal instructor structure established within each main
business group. This setup addresses talent needs aligned with our operational strategies, nurturing internal
core talents and maximizing the value of our human resources. Vertically, the emphasis is on cultivating
talent pipelines, continuously strengthening internal foundations, refining effective management
methodologies, and attracting high-quality external educational resources. By integrating internal and
external resources and drawing from advanced management practices and technologies, we strive to build
a talent pool with comprehensive competitiveness. The Company also encourages employees to improve
their work skills and proficiency, and provides certain economic incentives and support for their education
and training. Talent is the key to the development of Tongwei whose future is inseparable from talent.
Tongwei will continue to innovate its talent development model, optimize training methods, and
strengthen its talent foundation, providing a continuous driver for its high-quality development.
(IV). Labor outsourcing
"□ Applicable" "√Not applicable"
X. Proposal on profit distribution or capital reserve converted to share capital
(I) Development, execution or adjustments of cash dividend policy
"√Applicable" "□ Not applicable"
The Shareholder Distribution Plan 2021-2023 approved at the 18th meeting of the 7th board of
directors and the 2020 annual general meeting specified that the Company preferred the cash dividend
policy with minimum dividend payout ratio to ensure the execution of the profit distribution policy.
The 2022 Profit Distribution Proposal was reviewed and approved at the 10th meeting of the 8th
board of directors on April 21, 2023 and approved at the 2022 annual general meeting on May 16, 2023.
The Company distributed a cash dividend of 28.58 yuan (including tax) per ten shares for a total cash
distribution of 12,866,616,618.766 yuan on May 31, 2023.
According to the 2023 Profit Distribution Proposal approved at the 18th meeting of the 8th board of
directors on April 28, 2024, the Company intended to distribute a cash dividend of 9.05 yuan (including
tax) per ten shares to shareholders. As of December 31, 2023, the total share capital of the Company was
4,501,973,746 shares, based on which the total cash dividend to be distributed is 4,074,286,240.13 yuan
(including tax). If there is any change in the total share capital before the record date, the dividend per
share will remain unchanged and the total dividend amount will be adjusted accordingly. This proposal is
to be submitted to the 2023 general meeting for review.
(II) Special note on cash dividend policy
"√Applicable" "□ Not applicable"
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2023 Annual Report
Compliance with provisions of the Articles of Association or resolutions of
"√Yes" "□ No"
the general meeting
Dividend standards and payout ratio are clear "√Yes" "□ No"
Relevant decision-making procedures and mechanism are complete "√Yes" "□ No"
Independent directors performed their duties and played their role "√Yes" "□ No"
Middle and small shareholders had opportunities to fully express their views
"√Yes" "□ No"
and needs with their legitimate rights and interests fully protected
(III) The Company should disclose the reasons and the purposes and plan of these undistributed
profit where the Company achieved profits and the profit attributable to shareholders of the parent
company was positive, but no cash dividend proposal was raised
"□ Applicable" "√Not applicable"
(IV) Proposal on the profit distribution and capital reserve converted to share capital in the
reporting period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Bonus shares per 10 shares /
Dividend per 10 shares (yuan) (including tax) 9.05
Shares converted from capital reserve per 10 shares /
Cash distribution (including tax) 4,074,286,240.13
Net profit attributable to common shareholders of the listed company in the
13,573,900,132.37
consolidated financial statements for the distribution year
The ratio of net profit attributable to common shareholders of the listed company in
30.02
the consolidated financial statements
Cash used for share repurchases that is included in the cash distribution /
Total distribution (including tax) 4,074,286,240.13
The ratio of total distribution to the net profit attributable to common shareholders
30.02
of the listed company in the consolidated financial statements
XI. The information of share incentive plan, employee share plan and other employee incentive
measures and their impacts
(I) Where relevant incentive matters have been disclosed in extraordinary announcements without
further progress or change
"□ Applicable" "√Not applicable"
(II) Where relevant incentive matters were not disclosed in extraordinary announcements or further
progress or change occurred
Share incentive
"□ Applicable" "√Not applicable"
Other notes
"□ Applicable" "√Not applicable"
Employee share plan
"√Applicable" "□ Not applicable"
To fully mobilize employees in enthusiasm and creativity, and align the interests among shareholders,
the Company, and employees, the Company has used employee share plans in recent years.
The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2021-2023 and its Summary was
approved at the 17th meeting of the 7th board of directors on February 9, 2021 and the first extraordinary
general meeting on February 25, 2021. The total size of employee shareholding under this plan is 2.7
billion yuan, with a term of 36 months. A total of 76,499,840 shares of the Company were purchased,
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2023 Annual Report
accounting for 1.70% of the total share capital, at an average price of 34.43 yuan per share. The lock-up
period is from May 21, 2021 to May 20, 2022. Based on a steadfast confidence in the Company's long-
term development, and to safeguard the rights of all participants in the Employee Share Plan, on December
26, 2023, the 16th meeting of the 8th board of directors approved the Proposal on on Extending the
Employee Share Plan for 2021-2023 so that the duration of this plan is extended until February 24, 2026.
As of the end of the reporting period, employees under the Employees Share Plan for the years 2021-
2023 held a combined total of 76,499,840 shares of the Company's stock, equivalent to 1.70% of the total
share capital.
The Proposal on Tongwei Co., Ltd. Employee Share Plan (Draft) 2022-2024 and its Summary was
approved at the 1st meeting of the 8th board of directors on May 16, 2022 and the first extraordinary
general meeting on June 1, 2022. The total size of employee shareholding under this plan is 5.6 billion
yuan, with a term of 36 months. A total of 99,278,665 shares of the Company were purchased, accounting
for 2.21% of the total share capital, at an average price of 55.28 yuan per share. The lock-up period is from
July 6, 2022 to July 5, 2023.
As of the end of the reporting period, employees under the Employees Share Plan for the years 2022-
2024 held a combined total of 99,278,665 shares of the Company's stock, equivalent to 2.21% of the total
share capital.
Other incentive measures
"□ Applicable" "√Not applicable"
(III) Share incentives granted to directors and senior managers in the reporting period
"□ Applicable" "√Not applicable"
(IV) Evaluation mechanism for senior managers in the reporting period and the development and
execution of incentive mechanism
"√Applicable" "□ Not applicable"
The board of directors has a Remuneration and Assessment Committee which is responsible for
organizing the performance evaluation of senior managers, conducting assessments, and recommending
their compensation distribution to the board of directors for approval and execution following board review.
Given the development stages of the photovoltaic and agricultural industries, and in alignment with
the compensation levels of senior managers in similar sectors, the Company has established a performance
evaluation and distribution mechanism for senior managers to enhance overall operational quality and
build external competitive advantages within the industry. The total compensation for senior managers
comprises a base salary and performance bonuses. The base salary is dependent of the value of the
corresponding position and the level of seniority. Performance bonuses aim to encourage senior managers
to act as strategic advisors and leaders in the company's development. Assessment criteria are aligned with
the functional areas and business groups they oversee and primarily involves the evaluations of revenue
and profit, operational competitiveness indicators, safety performance and other factors. Additional
incentives may be provided for outstanding contributions. According to the Company's performance
assessment scheme and compensation distribution system, the compensation for senior managers in a
given year may involve partial payment for the current period, with a portion reserved as medium to long-
term incentives.
In the reporting period, the Compensation and Assessment Committee reviewed and approved the
Proposal on the Compensation and Assessment for Senior Managers for the Year 2022 and the
Compensation and Assessment Scheme for the Year 2023 and the Proposal on the Compensation and
Assessment for Senior Managers for the Year 2023 and the Compensation and Assessment Scheme for the
Year 2024, and submitted the proposals to the board for review and execution after the board approval.
XII. Development and implementation of internal controls in the reporting period
"√Applicable" "□ Not applicable"
Refer to the Internal Control Self-Assessment Report disclosed on http://www.sse.com.cn by the Company
on April 30, 2024.
Note on significant discrepancies in internal controls in the reporting period
"□ Applicable" "√Not applicable"
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2023 Annual Report
XIII. Management and control over subsidiaries in the reporting period
"√Applicable" "□ Not applicable"
As of the end of 2023, the Company had 256 subsidiaries including 244 domestic companies and 12
overseas companies. The Company held shares directly in 15 subsidiaries and indirectly in 241
subsidiaries.
It has completed management and control policies over subsidiaries. Regarding operation and
business control, the Company has clear strategic goals. With completed organizational structure and
business processes, it has effectively made subsidiaries organic parts for its overall strategy for synergies
in business operation and for the integration, creation and sharing of resources. Also, subsidiaries submit
production and operation statements to the Company as required so that it gains an understanding of and
control over the operation and management of subsidiaries. Regarding financial control, the Company has
created a powerful financial control system consisting of clear policies and requirements on financial
budgeting and execution, funds with other parties, loans and guarantees. Subsidiaries have their financial
affairs managed in strict accordance with the Company's financial management requirements and policies.
Regarding personnel management, the Company sends directors, supervisors and senior managers to
subsidiaries for which it is the controlling shareholder to effectively supervise them. At the same time, the
Company enhances the performance review on subsidiaries to better motivate their employees, drive their
development and ensure their overall operational targets are met.
XIV. Note on relevant information on internal control audit report
"√Applicable" "□ Not applicable"
Sichuan Huaxin engaged by the Company has audited the Company's 2023 internal controls and
issued a report with standard unqualified opinion, details of which are in the 2023 Internal Control Audit
Report on Tongwei Co., Ltd. disclosed on http: www.sse.com.cn on April 30, 2024 by the Company.
Whether the internal control audit report was disclosed: Yes
Type of audit opinion: Standard unqualified opinion
XV. Correction of problems identified in self-check for the governance of listed companies
Not applicable
XVI. Others
"□ Applicable" "√Not applicable"
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2023 Annual Report
Section V Environmental and Social Responsibility
I. Environmental information
Environmental protection mechanism developed or not Yes
Environmental protection investment in the reporting period
152,673.62
(unit: 10,000 yuan)
(I) Note on the environmental protection by companies falling into the key waste discharge
organizations published by the environmental protection authority and their major subsidiaries
"√Applicable" "□ Not applicable"
1. Waste discharge
"√Applicable" "□ Not applicable"
(1) Sichuan Yongxiang Polysilicon Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N and pH.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Grade one standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 100 mg/l; NH3-N ≤ 15m g/l; 6≤pH≤9.
Discharge concentrations: COD 14.294 mg/l; NH3-N 0.764 mg/l; and PH 6~9. Each of them met the
standards.
Approved annual discharge limits: No limits for COD and NH3-N.
2023 total discharge amounts: COD 6.892 tons and NH3-N 0.393 tons.
② Major pollutants in the waste gas are hydrogen chloride and particles.
Emission method: continuous and stable emission.
Number of release outlets: 26.
Emission standards: hydrogen chloride ≤ 100 mg/m and particles ≤ 120 mg/m subject to grade two
standards in Table 2 of Integrated Standards for Emission of Air Pollutants.
Emission concentrations: hydrogen chloride 0.6375mg/m3; particles 5.775mg/m3. Each of them met the
standards.
Approved annual emission limits: particles (not set); hydrogen chloride (not set).
2023 total emission amount: hydrogen chloride 0.024254 tons; particles 0.699765 tons.
(2) Sichuan Yongxiang New Energy Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N and pH.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: the discharge standard for sewage treatment plant in industrial parks as set forth in
the Water Pollution Discharge Standards for the Minjiang and Tuojiang River Basins in Sichuan Province
(DB51/2311-2016), and the grade one standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 40 mg/l; NH3-N ≤ 3mg/l; 6≤pH≤9.
Discharge concentrations: COD 18.134 mg/l; NH3-N 0.735Mg/l; pH; 6~9. Each of them met the standards.
Approved annual discharge limits: COD ≤ 43.96 tons and NH3-N ≤ 4.4 tons.
2023 total discharge amount: COD 16.84 tons and NH3-N 0.665 tons.
② Major pollutants in smoke generated from boiler/natural gas facility for hydrogen production: sulfur
dioxide, nitrogen oxides and particles.
Emission method: continuous and stable emission.
Number of release outlets: 2.
Emission standards: Special emission limits in Table 3 of the Emission Standard of Air Pollutants for
Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m, nitrogen oxides ≤ 150 mg/m (EIA requirement for
boilers is 80 mg/m) and particles ≤ 20 mg/m.
Emission concentrations: sulfur dioxide 1.217 mg/m, nitrogen oxides 49.481 mg/m and particles 7.487
mg/m. Each of them met the standards.
Approved annual emission amount: No limit for sulfur dioxide; nitrogen oxides ≤ 55.017 tons; no limit
for particles.
2023 total emission amount: Thanks to the remarkable energy management achievements of the Company,
boilers operated solely during periods of power restriction, resulting in minimal pollutant emissions.
Specifically: particles 0.04393 tons; nitrogen oxides 5.232 tons; sulfur dioxide 0.239 tons.
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2023 Annual Report
Other major pollutants in the waste gas are hydrogen chloride and particles.
Emission method: continuous and stable emission, and intermittent emission.
Number of release outlets: 41 outlets for hydrogen chloride and 26 outlets for particles.
Emission standards: hydrogen chloride ≤ 100 mg/m and particles ≤ 120 mg/m subject to grade two
standards in Table 2 of Integrated Standards for Emission of Air Pollutants.
Emission concentrations: hydrogen chloride 0.527mg/m3; particles 7.196mg/m3.
Approved annual emission limits: particles (not set); hydrogen chloride (not set).
2023 total emission amount : hydrogen chloride 0.255764 tons; particles 2.62162 tons.
(3) Inner Mongolia Tongwei High-purity Crystalline Silicon Company
① No wastewater discharge.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides, hydrogen chloride and particles.
Emission method: continuous and stable emission.
Number of release outlets: 37.
Emission standards: boilers are subject to the emission limits for newly built boilers as set forth in Table
2 of the Emission Standard of Air Pollutants for Boiler (GB13271-2014) — sulfur dioxide ≤50 mg/m,
nitrogen oxides ≤ 150 mg/m and particles ≤ 20 mg/m; natural gas is subject to the special emission limits
for air pollutants in Emission Standards of Pollutants for Inorganic Chemical Industry (GB 31573—2015)
and associated amendments — sulfur dioxide ≤100 mg/m, nitrogen oxides ≤ 100 mg/m and particles ≤
10 mg/m; others are subject to the grade two standard for new pollutant sources as set forth in Integrated
Emission Standard of Air Pollutants (GB16297-1996) — hydrogen chloride ≤100mg/m3 and particles
≤120mg/m3.
Emission concentrations: nitrogen oxides 33.25mg/m3; sulfur dioxide 0.8mg/m3; hydrogen chloride
33.85mg/m3; particles 2.92mg/m3. Each of them met the standards.
Approved annual emission amount: sulfur dioxide ≤ 0.099 tons; nitrogen oxides ≤ 31.46 tons; and particles
≤ 1.612 tons.
2023 total emission amount: sulfur dioxide 0.09643 tons; nitrogen oxides 1.8549 tons; particles 0.3553
tons; and hydrogen chloride 2.695 tons.
(4) Yunnan Tongwei High-purity Crystalline Silicon Company:
① Major pollutants in the wastewater: COD, NH3-N, pH and SS.
Discharge method: intermittent discharge.
Number of release outlets: 1.
Discharge standards: Grade three standard in Table 4 of Integrated Wastewater Discharge Standard
(GB8978-1996) — COD ≤ 500 mg/l; NH3-N no requirement; pH 6~ 9; SS: 400mg/L.
Discharge concentrations: COD 34.12mg/l; SS 18.75 mg/l; and NH3-N 3.776 mg/l. Each of them met the
standards.
Approved annual discharge limits: The wastewater is discharged to the industrial park's wastewater
treatment station without the need to assess total discharge amount.
2023 total discharge amounts: COD 32.168 tons; SS 19.399 tons; and NH3-N 3.475 tons.
② Major pollutants in the waste gas are hydrogen chloride and particles.
Emission method: continuous and stable emission.
Number of release outlets: 37.
Emission standards: hydrogen chloride ≤ 100 mg/m and particles ≤ 120 mg/m subject to grade two
standards in Table 2 of Integrated Standards for Emission of Air Pollutants.
Emission concentrations: hydrogen chloride 17.843mg/m3 ; particles 2.226mg/m3. Each of them met the
standards.
Approved annual emission limits: particles 1.2 tons; hydrogen chloride 3.574 tons.
2023 total emission amount : particles 0.3842 tons ; hydrogen chloride 3.0796 tons.
(5) Sichuan Yongxiang Energy Technology Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N and pH.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Inlet standard for physical and chemical treatment section of sewage treatment plants
in standard industrial parks: COD ≤ 40mg/l; NH3-N ≤ 3mg/l; PH 6~9.
Discharge concentrations: COD 18.44 mg/l; NH3-N 1.17 mg/l; and PH 6~9 via real-time online
monitoring. Each of them met the standards.
Approved annual discharge limits: COD ≤ 87.72 tons; NH3-N ≤ 6.19 tons; total phosphorus 2.53 tons.
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2023 Annual Report
In November 2023, the discharge permit was obtained, and the acceptance inspection is underway.
② Major pollutants in the waste gas are hydrogen chloride and particles.
Emission method: continuous and stable emission, and intermittent emission.
Number of release outlets: 58.
Emission standards: hydrogen chloride ≤ 100 mg/m and particles ≤ 120 mg/m subject to grade two
standards in Table 2 of Integrated Standards for Emission of Air Pollutants.
Emission concentrations: The acceptance monitoring is currently underway, and the data has not been
issued.
Approved annual emission limits: nitrogen oxides ≤ 2.84 tons; particles ≤ 210.48 tons; hydrogen chloride
≤ 20.695 tons.
2023 total emission amount: The acceptance monitoring is currently underway, and the data has not been
issued.
(6) Production activities of Yongxiang New Materials:
① Major pollutants in the wastewater are COD and NH3-N.
Discharge method: continuous and stable discharge.
Number of release outlets: 1
Discharge standards: Grade one standards in Integrated Wastewater Discharge Standard (GB8978-1996)
— COD ≤ 100 mg/l; NH3-N ≤ 15 mg/l;
Discharge concentrations: COD 45.05 mg/l and NH3-N 1.36 mg/l. Each of them met the standards.
Approved annual discharge limits: No limits for COD and NH3-N.
2023 total discharge amount: COD 0.53 tons and NH3-N 0.015 tons.
② Major pollutants in the waste gas are particles; sulfur dioxide and nitrogen oxides.
Emission method: continuous and stable emission.
Number of release outlets: 2.
Emission standards: Sichuan Emission Standard of Air Pollutants for Cement Industry (DB51/2864-2021)
— particles 10 mg/m3; sulfur dioxide ≤ 35 mg/m3; nitrogen oxides ≤100 mg/m3.
Emission concentrations: average concentration of particles was 4.60 mg/m in the kiln head, and 2.72
mg/m in the kiln tail; average concentration of sulfur dioxide was 1.67 mg/m; average concentration of
nitrogen oxides was 37.43 mg/m, all of which met the standards.
Approved annual emission limits: particles 25.80 tons; sulfur dioxide 52.5 tons; nitrogen oxides 150 tons.
2023 total emission amount: dust from kiln head 5.81 tons, dust from kiln tail 14.95 tons, sulfur dioxide
3.59 tons and nitrogen oxides 104.98 tons.
(7) PVC and sodium hydroxide production in Yongxiang
① Major pollutants in the wastewater are COD, total nitrogen, NH3-N, total phosphorus and pH.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Table 1 of Emission Standard of Pollutants for Caustic Alkali and Polyvinyl Chloride
Industry (GB15581-2016) — COD ≤ 60 mg/l; total nitrogen ≤ 20 mg/l; NH3-N ≤15 mg/l; total phosphorus
≤ 1 mg/l; and 6≤pH≤9.
Discharge concentrations: COD 9.41 mg/l; total nitrogen 7.63 mg/l; NH3-N 0.46 mg/l; total phosphorus
0.11 mg/l; and PH 6~9. Each of them met the standards.
Approved annual discharge limits: COD ≤ 39 tons; total nitrogen ≤ 13 tons; NH3-N ≤ 9.75 tons; total
phosphorus ≤ 0.65 tons.
2023 total discharge amounts: COD 1.3 tons; total nitrogen 1.02 tons; NH3-N 0.07 tons and total
phosphorus 0.02 tons.
② Major pollutants in the waste gas: particles, NMHC and nitrogen oxides.
Emission method: continuous and stable emission.
Number of release outlets: 9.
Emission standards: Particles and NMHC are subject to Table 4 of Emission Standard of Pollutants for
Caustic Alkali and Polyvinyl Chloride Industry (GB15581-2016) — polyvinyl chloride drying particles ≤
60 mg/m3; particles from calcium carbide crushing ≤ 50 mg/m3; NMHC ≤ 20mg/m3. Nitrogen oxides are
subject to Table 4 of Emission Standard of Air Pollutants for Boiler (GB13271-2014), however, given the
EIA approval requirement, the Company implements more stringent standards: nitrogen oxides ≤ 80
mg/m3.
Emission concentrations: particles 3.29 mg/m3 ; NMHC 3.41 mg/m3; nitrogen oxides 28.15 mg/m3.
Approved annual emission limits: particles 60 tons ; NMHC 50 tons; and nitrogen oxides 53.1 tons.
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2023 total emission amounts: particles 3.034 tons ; NMHC 3.66 tons ; and nitrogen oxides 4.638 tons.
(8) Tongwei Solar (Chengdu) Co., Ltd.:
① Major pollutants in the wastewater: general pollutants — COD, NH3-N, pH; typical pollutant(s) —
fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 2.
Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard of
Pollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/L; NH3-N ≤ 30 mg/L; pH 6 - 9;
fluoride ≤ 8 mg/L.
Discharge concentrations: CODcr 15.12 ml/L; NH3-N 0.89 mg/l; pH 7.726 and fluoride 4.83 mg/l. Each
of them met the standards.
2023 total discharge amount: COD 73.13 tons and NH3-N 3.75 tons.
② Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, sulfuric acid mist, ammonia,
particles and volatile organic compounds (VOC).
Typical pollutant(s): fluoride.
Emission method: continuous and stable emission.
Number of release outlets: 30.
Emission standards: ammonia ≤ 14 kg/h subject to limit in Table 2 of Emission Standards for Odor
Pollutants (GB14554-1993); VOCs ≤ 60 mg/m subject to industrial standards for electronic industry set
in Table 3 of Sichuan Control Standards for Volatile Organic Compounds (DB51/2377-2017); other
pollutants subject to limits for solar cells in Table 5 of Emission Standard of Pollutants for Battery Industry
(GB30484-2013): fluoride ≤3 mg/m, chlorine ≤5 mg/m, particles ≤30 mg/m; hydrogen chloride ≤5
mg/m and nitrogen oxides ≤30 mg/m.
Emission concentrations: fluoride 0.588 mg/m; chlorine 0.539 mg/m; particles 3.175 mg/m; nitrogen
oxides 6.133 mg/m; VOCs 0.508 mg/m; hydrogen chloride 0.329 mg/m; and ammonia 1.146 kg/h. Each
of them met the standards.
2023 total emission amounts: nitrogen oxides 28.92 tons and VOCs 3.13 tons.
(9) Tongwei Solar (Anhui) Co., Ltd.:
① Major pollutants in the wastewater: general pollutants — COD, NH3-N, pH, total nitrogen; typical
pollutant(s) — fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Indirect discharge standards for solar cells in of Emission Standard of Pollutants for
Battery Industry (GB30484-2013) and standards for Hefei West Zutuan wastewater treatment plant; COD
≤ 150 mg/L; NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; total nitrogen ≤ 40 mg/l; fluoride ≤ 8 mg/L.
Discharge concentrations: COD 31.84 mg/l; NH3-N 3.48 mg/l; PH 7.92; total nitrogen 25.3 mg/l; and
fluoride 6.27 mg/l. Each of them met the standards.
Approved annual discharge limits: COD ≤ 739.5 tons and NH3-N ≤ 147.9 tons.
2023 total discharge amount: COD 59.79 tons and NH3-N 2.65 tons.
② Major pollutants in the waste gas: general pollutants — chlorine, particles, nitrogen oxides, hydrogen
chloride and VOCs; typical pollutant — fluoride.
Emission method: continuous and stable emission.
Number of release outlets: 12.
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m, fluoride ≤ 3 mg/m,
chlorine ≤ 5 mg/m; particles ≤ 30 mg/m; hydrogen chloride ≤ 5 mg/m; Integrate Emission Standards of
Air Pollutants (DB31/933-2015) — VOCs ≤ 50 mg/m.
Emission concentrations: nitrogen oxides 4.25 mg/m; fluoride 2.59 mg/m; chlorine 1.35 mg/m; particles
11 mg/m; hydrogen chloride 2.7 mg/m; VOCs 6.7mg/m. Each of them met the standards.
2023 total emission amounts: nitrogen oxides 0.78 tons and VOCs 2.85 tons.
(10) Tongwei Solar (Meishan) Co., Ltd.:
① Major pollutants in the wastewater: general pollutants — COD, NH3-N, pH, total nitrogen; typical
pollutant(s) — fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 3.
Discharge standards: production wastewater is subject to the indirect discharge standards in Table 2 of
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Emission Standard of Pollutants for Battery Industry (GB30484-2013), and all pollutant factors and
chlorides are subject to standards for designed inlet water quality of first zone of the wastewater treatment
plant in Xiuwen Town, Meishan Industrial Park; general wastewater is subject to standards for designed
inlet water of the artificial wetland in second zone of the said wastewater treatment plant; domestic
wastewater is subject to the grade three standards in Table 4 of Integrated Wastewater Discharge Standard
(GB8978- 1996), the grade B limits in Table 1 of Wastewater Quality Standards for Discharge to
Municipal Sewers (GB/T 31962- 2015) and standards for designed inlet water of the second zone of the
said wastewater treatment plant.
Discharge concentrations: COD 18.23 mg/l; NH3-N 16.22 mg/l; PH 8.06; total nitrogen 21.27mg/l; and
fluoride 5.28 mg/l, all of which met the standards.
Approved annual discharge limits: COD ≤ 1,129.96 tons and NH3-N ≤ 204.07 tons.
2023 total discharge amounts: COD 135.54 tons and NH3-N 84.27 tons.
② Major pollutants in the waste gas: general pollutants — chlorine, particles, hydrogen chloride and
VOCs; typical pollutant — fluoride.
Emission method: continuous and stable emission.
Number of release outlets: 25
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — nitrogen oxides ≤ 30 mg/m, fluoride ≤ 3 mg/m,
chlorine ≤ 5 mg/m; particles ≤ 30 mg/m; hydrogen chloride ≤ 5 mg/m;Odor Pollutants (GB14554-1993)
— ammonia ≤ 14 or 20 Kg/h depending on specific circumstances; hydrogen sulfide ≤ 0.9 kg/h; Sichuan
Control Standards for Volatile Organic Compounds (DB 51/2377-2017) — VOCs ≤ 60 mg/m; grade two
limits in Table 2 of Integrated Standards for Emission of Air Pollutants (GB 16297- 1996) — sulfuric acid
mist ≤ 45 mg/m and sulfuric acid mist ≤8.8kg/h.
Emission concentrations: fluoride 0.73 mg/m; chlorine 0.17 mg/m; particles 8.46 mg/m; hydrogen
chloride 0.31 mg/m; VOCs 0.52 mg/m; nitrogen oxides 1.82 mg/m; sulfuric acid mist 0.15 mg/m;
ammonia 0.32 kg/h (rate), all of which met the standards.
Approved annual emission limits: nitrogen oxides ≤ 28.48 tons, VOCs ≤ 34.05 tons.
2023 total emission amounts: nitrogen oxides 1.904 tons and VOCs 3.613 tons.
(11) Tongwei Solar (Jintang) Co., Ltd.:
① Major pollutants in the wastewater: general pollutants — pH, COD, NH3-N; typical pollutant(s) —
fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Indirect discharge standards in Table 2 of Emission Standard of Pollutants for Battery
Industry (GB30484-2013) — 6≤pH≤9; COD ≤ 150 mg/L; NH3-N ≤ 30 mg/l; fluoride ≤ 8 mg/L.
Discharge concentrations: pH 6.3- 8.1; COD 33.75 mg/L; NH3-N 15.28 mg/L; fluoride 6.2 mg/L. Each of
them met the standards.
Approved annual discharge limits: COD ≤ 1,175.2 tons and NH3-N ≤ 235.1 tons.
2023 total discharge amounts: COD 79.59 tons and NH3-N 36.2 tons.
② Major pollutants in the waste gas are hydrogen chloride, hydrogen chloride, chlorine, ammonia,
particles, and volatile organic compounds (VOC); typical pollutant(s): fluoride.
Emission method: continuous and stable emission.
Number of release outlets: 14.
Emission standards: Limits for waste gas from production of solar cells in Table 5 of Emission Standard
of Pollutants for Battery Industry (GB30484-2013) — fluoride ≤ 3 mg/m, chlorine ≤ 5 mg/m; particles
≤ 30 mg/m; hydrogen chloride ≤ 5 mg/m; nitrogen oxides ≤ 30 mg/m. Ammonia ≤20kg/h according to
Table 2 of Emission Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60mg/m subject to
industrial standards for electronic industry set in Table 3 of Sichuan Control Standards for Volatile Organic
Compounds (DB51/2377-2017).
Emission concentrations: fluoride 0.14 mg/m; chlorine 0.04 mg/m; particles 8.16 mg/m; nitrogen oxides
not detected; VOCs 2.85 mg/m; hydrogen chloride 0.51 mg/m; and ammonia 4.91 kg/h. Each of them
met the standards.
Approved annual emission limits: nitrogen oxides ≤ 25.6 tons, VOCs ≤ 27.6 tons.
2023 total emission amounts: nitrogen oxides not detected, VOCs 12.07 tons.
(12) Tonghe New Energy (Jintang) Co., Ltd.:
① Major pollutants in the wastewater: general pollutants — COD, NH3-N, pH, SS; typical pollutant(s)
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— fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 2.
Discharge standards for solar cell projects: Emission Standard of Pollutants for Battery Industry
(GB30484-2013) — COD ≤ 150 mg/L; NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; SS ≤140 mg/l; total nitrogen ≤40
mg/l; fluoride ≤ 8 mg/L.
Discharge standards for wafer slicing projects: Emission Standard of Pollutants for Electronics Industry
(GB39731-2020) — COD ≤ 150 mg/L; NH3-N ≤ 30 mg/L; 6 ≤ pH ≤ 9; SS ≤400 mg/l; total nitrogen ≤70
mg/l; fluoride ≤ 8 mg/L.
Discharge concentrations: COD 102 mg/l; NH3-N 9.115 mg/l; PH 7.35; SS 4.75 mg/l; total nitrogen 11.8
mg/l, and fluoride 3.9325 mg/l. Each of them met the standards.
Approved annual discharge limits: COD ≤ 852 tons and NH3-N ≤ 170 tons.
2023 total discharge amounts: COD 837.3 tons; NH3-N 60.47 tons; SS 95.66 tons; total phosphorus 70.92
tons and fluoride 11.17 tons.
② Major pollutants in the waste gas: fluoride, chlorine, hydrogen chloride, particles, nitrogen oxides and
VOCs.
Emission method: continuous and stable emission.
Number of release outlets: 18.
Emission standards: Emission Standard of Pollutants for Battery Industry (GB30484-2013) — fluoride ≤
3 mg/m; chlorine ≤ 5 mg/m; particles ≤ 30 mg/m; nitrogen oxides ≤ 30 mg/m; Sichuan Control
Standards for Volatile Organic Compounds (DB51/2377-2017) — VOCs ≤ 60 mg/m; standard limit in
Table 2 of Odor Pollutants (GB14554-1993) — ammonia ≤ 14 kg/h.
Emission concentrations: fluoride ≤ 0.89 mg/m; hydrogen chloride ≤ 0.35 mg/m; particles ≤ 11.19 mg/m;
nitrogen oxides ≤ 10.5 mg/m; VOCs ≤ 0.55 mg/m; ammonia ≤ 0.79 kg/h. Each of them met the standards.
Approved annual emission amounts: nitrogen oxides ≤ 25.56 tons, VOCs ≤ 36.38 tons and particles ≤ 7.58
tons.
2023 total emission amounts: nitrogen oxides 1.75 tons; VOCs 3.41 tons and particles 4.25 tons.
(13) Tongwei Solar (Pengshan) Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, pH and fluoride.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Indirect discharge standards for solar cells in Table 2 of Emission Standard of
Pollutants for Battery Industry (GB30484-2013); CODcr ≤ 150 mg/L; NH3-N ≤ 30 mg/L; pH 6 - 9;
fluoride ≤ 8 mg/L.
Discharge concentrations: COD 72.38 ml/L; NH3-N10.84 mg/l; pH 7.93; and fluoride 3.43 mg/l. Each of
them met the standards.
Approved annual discharge limits: COD ≤ 1,212.8 tons and NH3-N ≤ 242.6 tons.
2023 total discharge amount: COD 160.67 tons and NH3-N 24.06 tons.
② Major pollutants in the waste gas are fluoride, hydrogen chloride, chlorine, ammonia, particles,
nitrogen oxides and volatile organic compounds (VOC).
Emission method: continuous and stable emission.
Number of release outlets: 23.
Emission standards: Limits in Table 5 of Emission Standard of Pollutants for Battery Industry (GB30484-
2013) — fluoride ≤3 mg/m; hydrogen chloride ≤ 5 mg/m; chloride ≤ 5 mg/m; nitrogen oxides ≤ 30
mg/m; and particles ≤30 mg/m. Ammonia ≤ 20kg/h (30m), 14kg/h (25m) subject to limits in Table 2 of
Emission Standards for Odor Pollutants (GB14554-1993); VOCs ≤ 60mg/m subject to industrial
standards for electronic industry set in Table 3 of Sichuan Control Standards for Volatile Organic
Compounds (DB51/2377-2017).
Emission concentrations: fluoride 0.24mg/m; hydrogen chloride 0.64 mg/m; chloride 3.275 mg/m;
nitrogen oxides 10.23 mg/m; particles 3.26 mg/m; ammonia 0.02 kg/; and VOCs 1.66 mg/m. Each of
them met the standards.
Approved annual emission limits: nitrogen oxides 19.82 tons; VOCs 9.12 tons.
2023 total emission amounts: nitrogen oxides 9.615 tons and VOCs 2.398 tons.
(14) Chengdu Chunyuan Food Company Limited:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,
total phosphorus and total nitrogen.
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Discharge method: intermittent discharge.
Number of release outlets: 1.
Discharge standards: grade three limits for livestock slaughter in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing (GB13457-1992) — COD 500 mg/l, no limit on NH3-N: pH 6.0~ 8.5; SS
400 mg/L; BOD 300 mg/L, animal fat and vegetable oils 60 mg/L, no limit on total phosphorus; and no
limit on total nitrogen.
2023 average discharge concentrations: COD 53.00 mg/L; NH3-N 20.53 mg/l/L; PH 7.6; SS 21.00 mg/L;
BOD 18.50 mg/L; animal fat and vegetable oils 0.50 mg/L; total phosphorus 2.87 mg/L and total nitrogen
28.01 mg/L, all of which met the standards.
Approved annual discharge limits: COD 357.5 tons, no limits on other pollutants.
2023 total discharge amounts: COD 4.77 tons.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides and particles.
Emission method: continuous and stable emission.
Number of release outlets: 1.
Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu.
Boilers have been replaced with central heating; therefore, waste gas was not monitored. The waste
discharge permit only requires self-monitoring of odor concentration at facility boundaries, ammonia
concentration at facility boundaries and hydrogen sulfide concentration once per half a year. Random
waste gas emission at facility boundaries is subject to new construction and expansion standards of grade
two in Table 1 of Emission Standards for Odor Pollutants (GB14554-1993).
Emission concentrations: Odor 10 mg/m (limit to 20 mg/m), hydrogen sulfide 0.01 mg/m (limit to 0.06
mg/m), and ammonia 0.02 mg/m (limit to 1.5 mg/m). All of them met the standards.
Approved annual emission amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(15) Chengdu Xintaifeng Agriculture Development Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD, animal fats and vegetable oils,
total phosphorus and total nitrogen.
Discharge method: intermittent discharge.
Number of release outlets: 1.
Discharge standards: grade three limits for poultry slaughter in Table 3 of Discharge Standard of Water
Pollutants for Meat Packing (GB13457-1992) — COD 500 mg/l, no limit on NH3-N: pH 6.0~ 8.5; SS
300 mg/L; BOD 250 mg/L, animal fat and vegetable oils 50 mg/L, no limit on total phosphorus; and no
limit on total nitrogen.
Discharge concentrations: COD 58 mg/L; NH3-N 39.4 mg/l/L; PH 7.43; SS 19 mg/L; BOD 11 mg/L;
animal fat and vegetable oils 0.19 mg/L; total phosphorus 6.64 mg/L and total nitrogen 42.6 mg/L, all of
which met the standards.
Approved annual discharge limits: COD 306 tons, no limits on other pollutants.
2023 total discharge amounts: COD 3.6 tons.
② Major pollutants in the waste gas: sulfur dioxide, nitrogen oxides and particles.
Emission method: continuous and stable emission.
Number of release outlets: 1.
Emission standards: Emission Standard of Air Pollutants for Boilers in Chengdu.
Boilers have been replaced with central heating; therefore, waste gas was not monitored. The waste
discharge permit only requires self-monitoring of odor concentration at facility boundaries, ammonia
concentration at facility boundaries and hydrogen sulfide concentration once per half a year. Random
waste gas emission at facility boundaries is subject to new construction and expansion standards of grade
two in Table 1 of Emission Standards for Odor Pollutants (GB14554-1993).
Emission concentrations: Odor 10 mg/m (limit to 20 mg/m), hydrogen sulfide 0.01 mg/m (limit to 0.06
mg/m), ammonia 0.06 mg/m (limit to 1.5 mg/m). Each of them met the standards.
Approved annual emission amounts: No limits for sulfur dioxide, nitrogen oxides and particles.
(16) Tongwei (Hainan) Aquatic Products Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, PH, total phosphorus and total nitrogen.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Standards of Connection to Wastewater Network of Old Downtown Wastewater
Treatment Plant (West Area): PH 6 - 9; COD ≤ 500 mg/L; NH3-N ≤ 40 mg/L; SS ≤ 400 mg/L; total
nitrogen ≤ 40 mg/L; total phosphorus ≤ 6 mg/L and BOD ≤ 300 mg/l.
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Discharge concentrations: COD 8 mg/l, NH3-N 0.216 mg/l, total nitrogen 36.4 mg/l, total phosphorus 3.67
mg/l. Each of them met the standards.
Approved annual discharge limits: No limits for COD, NH3-N, SS, total nitrogen, and total phosphorus.
2023 total discharge amounts: COD 6.09 tons, NH3-N 0.98 tons, total phosphorus 0.95 tons and total
nitrogen 10.22 tons.
(17) Tongwei Solar (Hefei) Co., Ltd.:
① Major pollutants in the wastewater are COD, NH3-N, PH, SS, BOD5, animal fats and vegetable oils,
total phosphorus and total nitrogen. The Company does not produce industrial wastewater; instead, the
wastewater primarily consists of domestic sewage from employee facilities.
Discharge method: continuous and stable discharge.
Number of release outlets: 1.
Discharge standards: Standard for the Xibu Zutuan Sewage Treatment Plants in Hefei and the grade three
standard in Table 4 of Integrated Wastewater Discharge Standard (GB8978-1996).
Discharge concentrations: COD ≤ 350 mg/L; NH3-N ≤ 35 mg/L; 6≤pH≤9; animal fats and vegetable oils
≤ 100 mg/L; SS ≤ 400 mg/L; total phosphorus ≤ 6 mg/L; BOD5 ≤ 180 mg/L; total nitrogen ≤ 50 mg/L.
Each of them met the standards.
Approved annual discharge limits: COD 202.77 tons; NH3-N 20.28 tons; and total nitrogen 28.97 tons.
2023 total discharge amounts: COD 37.73 tons; NH3-N 4.40 tons; and total nitrogen 11.20 tons.
② Major pollutants in the waste gas are particles, tin and its compounds, non-methane hydrocarbons
(NMHC), ammonia, hydrogen sulfide, and odorous gases; the main sources of waste gas emissions include
particles generated from cutting processes; particles, tin and its compounds, and NMHC generated from
welding processes; particles and tin and its compounds generated from junction box welding processes;
MMHC generated from lamination, curing, and cleaning processes; ammonia, hydrogen sulfide, and
odorous gases generated from domestic sewage treatment stations.
Emission method: continuous and stable emission.
Number of release outlets: 19.
Emission standards: particles, tin and its compounds, and NMHC are subject to Shanghai Integrate
Emission Standard of Air Pollutants (DB31-933-2015); ammonia, hydrogen sulfide and odorous gases are
subject to Emission Standards for Odor Pollutants (DB31/1025—2016).
Emission concentrations: particles ≤ 30 mg/m3; NMHC ≤ 70 mg/m3; tin and its compounds ≤ 5 mg/m3;
odorous gases ≤1,000 (without dimension); ammonia ≤30 mg/m3; and hydrogen sulfide ≤ 5 mg/m3. Each
of them met the standards.
Approved annual emission limits: the exhaust gas is discharged through a general outlet, and the annual
total emissions of exhaust gas are not specified on the discharge permit.
2023 total emission amounts: particles 4.778 tons; NMHC 19.373 tons; tin and its compounds 0.003685
tons; ammonia 0.024 tons; and hydrogen sulfide 0.0658 tons.
2. Construction and operation of pollution prevention and treatment facilities
"√ Applicable" "□ Not applicable"
Each of the Company’s key polluting units has constructed environmental protection facilities in
accordance with environmental assessment and regulatory requirements. In the reporting period, all
facilities operated normally, and environment staff performed periodical inspections and maintenance of
the facilities to ensure that pollutants were released in compliance with standards. Details are as below:
High-purity polysilicon and chemical engineering business group:
(1) Wastewater control facilities include domestic wastewater treatment device, wastewater treatment
station, high-salinity wastewater condensation device, all of which operated normally;
(2) Waste gas control facilities include sprinkler system for process-generated waste gas, and dust removal
system, all of which operated normally;
(3) Solid-waste facilities include slag shed and temporary storage room of hazardous wastes, all of which
were managed subject to environmental protection requirements.
(4) Noise control facilities include mufflers and vibration absorbers for noise-generating equipment, and
mufflers set for vent ports, all of which operated normally.
Solar cell business group:
(1) Wastewater control facilities include domestic wastewater treatment device, sewage treatment stations,
multi-stage physiochemical + biochemical pre-treatment + two stage A/O wastewater treatment system,
all of which operated normally.
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(2) Waste gas control facilities include online combustion + low-temperature plasma + active carbon
treatment system, reduction-based scrubber, acid-alkali scrubber, and combustion chamber, all of which
operated normally.
(3) Solid-waste facilities include solid waste warehouse, domestic waste storage facility, and hazardous
waste warehouse, all of which were managed subject to environmental protection requirements.
(4) Noise control facilities include low-noise equipment, mufflers and vibration absorbers used for noise-
generating equipment, and mufflers and noise-isolation walls, all of which operated normally.
Solar module business group:
(1) Wastewater control facilities include domestic wastewater treatment stations which operated normally.
(2) Waste gas control facilities include: for waste gas from dicing processes, a pulse-type dust collector is
installed; for waste gas from welding processes, a pulse-type dust collector followed by a secondary
activated carbon adsorption unit is installed; for waste gas from junction box welding, lamination, cleaning,
and curing processes, a pulse-type dust collector followed by a secondary activated carbon adsorption unit
is installed; for waste gas from the domestic sewage treatment station, a water spray device is installed.
All environmental protection facilities for waste gas operated normally.
(3) Solid waste facilities include general solid waste warehouse and hazardous waste warehouse, all of
which were managed subject to environmental protection requirements.
(4) Noise control facilities include measures such as factory sound insulation, foundation shock absorption,
and equipment noise reduction for all noise generating equipment, and they operated normally.
Agriculture, animal husbandry and food business group:
(1) Wastewater treatment measures: sewage treatment stations, phosphorus removal and dosing facilities,
sludge pressure filter systems, and online monitoring facilities for sewage.
(2) Solid waste facilities include temporary storage rooms for solid waste and hazardous waste, all of
which were managed subject to environmental protection requirements.
(3) Noise control facilities include mufflers and vibration absorbers for noise-generating equipment, all of
which operated normally.
3. Environmental impact assessments and other administrative permits on construction projects
"√Applicable" "□ Not applicable"
High-purity polysilicon and chemical engineering business group:
(1) Sichuan Yongxiang Polysilicon Co., Ltd. adopted new environmental protection facilities and therefore
re-applied for the pollution discharge permit which was updated on November 29, 2023 with the number
of 91511100660281872G001Q.
(2) Sichuan Yongxiang New Energy Co., Ltd. obtained the environmental approval on the energy efficient
upgrading project from Leshan Bureau of Ecology on September 19, 2023 (LSHP [2023] No.24).
(3) Sichuan Yongxiang Energy Technology Co., Ltd. obtained the pollution discharge permit on November
7, 2023 with the number of 91511112MA69Y55075001V.
(4) Yunnan Tongwei obtained the approval from Baoshan Bureau of Ecology on the hydropower and high-
purity silicon-integrated green energy project on January 20, 2023 (BHZ (2023) No. 1).
(5) Yunnan Tongwei obtained the approval from Baoshan Bureau of Ecology on the construction of the
polysilicon phosphorus-boron testing laboratory on December 11, 2023 (BHZ (2023) No. 23).
(6) Inner Mongolia Tongwei High-purity Crystalline Silicon Company obtained the environmental impact
assessment approval for its production system upgrading project on November 29, 2023 (BHGZ 150203
[2023] No. 019).
(7) Inner Mongolia Tongwei Silicon Energy Co., Ltd. obtained the approval from Baotou Bureau of
Ecology on May 26, 2023 (BHGZ 150203 [2023] No. 010).
(8) Both Sichuan Yongxiang New Materials Co., Ltd. and Sichuan Yongxiang Polysilicon Co., Ltd. are
the wholly-owned subsidiaries of Yongxiang Co., Ltd. For the Company’s needs for operational
development, Sichuan Yongnxiang New Materials Co., Ltd. has been merged into Sichuan Yongxiang
Polysilicon Co., Ltd. After the consolidation, an online update was made on its discharge permit on May
31, 2023, and the discharge permit number is 91511100660281872G002P.
Solar cell business group:
(1) Tongwei Solar (Anhui) Co., Ltd. obtained the registration approval from High-tech District Sub-bureau
of Ecology on January 30, 2023 for the environmental impact assessment of the 182 format upgrading
project (HGZMHB [2023] No. 10005). The Company strictly follows the requirements on the discharge
permit numbered 91340100083692631N001V.
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(2) Tongwei Solar (Jintang) Co., Ltd. obtained the approval from Chengdu Bureau of Ecology on March
27, 2023 for the environmental impact assessment of the upgrading project of high-efficiency crystalline
heterojunction solar cell 210 half-cut-cell and bifacial technology (CHS (CN) [2023] No.13). The
environmental impact assessment report for the construction project of the high-efficiency silicon solar
cell and supporting production facility (110 KV substation expansion project) was approved by the expert
panel on May 24, 2023. The permit for this project is numbered 91510121MA69DM7440001U and the
approval for the environmental impact assessment report was received from Chengdu Bureau of Ecology
on July 25, 2023 (CHS (F) [2023] No. 68).
(3) Tongwei Solar (Pengshan) Co., Ltd. obtained the approval from Meishan Bureau of Ecology on the
environmental impact assessment for the Tongwei Global Innovation Base (Phase I) project (MSHJT
[2023] No. 4), and received the pollution discharge permit numbered 91511403MA688QTA6E001Q from
Meishan Bureau of Ecology on July 13, 2023.
(4) Tongwei Solar (Meishan) Co., Ltd. had its phase IV high-efficiency solar cell project registered with
Meishan Development and Reform Commission on July 13, 2023 (CTZB [2307-511400-04-01-262567]
No. FGQB-0069). Meishan Bureau of Ecology issued the approval on the environmental impact
assessment of the 220KV substation construction under the phase IV high-efficiency solar cell project on
January 03, 2024 (MSHJH [2024] No.1), and issued the approval on the environmental impact assessment
of the project on January 08, 2024 (MSHJH [2024] No.6). The supporting facility construction under phase
IV high-efficiency solar cell project was registered with Meishan Development and Reform Commission
on August 09, 2023 (CTZB [2308-511400-04-01-824521] No. FGQB-0082).
(5) Tongwei Solar (Chengdu) Co., Ltd. obtained the approval from Chengdu Bureau of Ecology on the
environmental impact assessment of the intelligent factory of high-efficiency solar cells (CHSCN [2023]
No. 55) on December 18, 2023. It received the approval from Shuangliu Bureau of Ecology on the
environmental impact assessment of the phase II project of Tongwei R&D Center for PV Technologies on
December 05, 2023 (CSHCNHP [2023] No. 56).
Solar module business group:
(1) Tongwei Solar (Hefei) Co., Ltd. obtained the pollution discharge permit numbered
91340100560687779D001V from Hefei Bureau of Ecology on December 12, 2023. It received the
registration of the environmental impact assessment of its upgrading project for the 8GW intelligent PV
factory from High-tech District Sub-bureau of Ecology on August 23, 2023 (HGZMHB [2022] No. 10017),
and performed the self-acceptance of the environmental protection facilities in July 2023.
4. Environmental-related emergency response plans
"√Applicable" "□ Not applicable"
In order to prevent and reduce environmental events, standardize the emergency management and
emergency response procedures of the Company for environmental emergencies, establish an emergency
work mechanism that follows central commands, takes responsibilities at different levels and acts swiftly,
carry out emergency rescue work in a timely and effective manner, and form a coordinated and efficient
environmental pollution emergency response system with strong prevention actions, orderly commands,
the Company and its subsidiaries have formulated emergency response plans for emergency events and
have the plans registered in local ecology bureaus. Current valid registration numbers of key polluting
entities of the Company in the reporting period are as follows:
High-purity polysilicon and chemical engineering business group:
(1) Environmental Emergency Response Plan of Yunnan Tongwei High-purity Crystalline Silicon
Company (530502-2022-01-L);
(2) Environmental Emergency Response Plan of Sichuan Yongxiang New Energy Co., Ltd. (511112-
2023-007-H);
(3) Environmental Emergency Response Plan of Sichuan Yongxiang PV Technology Co., Ltd. (511112-
2022-003-M);
(4) Environmental Emergency Response Plan of Sichuan Yongxiang Polysilicon Co., Ltd. (511112-2021-
020-H);
(5) Environmental Emergency Response Plan of Yongxiang Co., Ltd. (511112-2021-034-H);
(6) Environmental Emergency Response Plan of Inner Mongolia Tongwei High-purity Crystalline Silicon
Company (150203-2021-048-H, 150203-2022-019-H);
(7) Environmental Emergency Response Plan of Sichuan Yongxiang Energy Technology Co., Ltd.
(51l112-2023-014-H).
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Solar cell business group:
(1) Environmental Emergency Response Plan of Tongwei Solar (Jintang) Co., Ltd. (510121-2023-021-H);
(2) Environmental Emergency Response Plan of Tongwei Solar (Anhui) Co., Ltd. (340171-2023-043-M,
340171-2021-110-M, 340105-2019-026M);
(3) Factory-wide Environmental Emergency Response Plan of Tongwei Solar (Meishan) Co., Ltd.
(511400-2023-0005-M);
(4) Environmental Emergency Response Plan of Tongwei Solar (Meishan) Co., Ltd. (511400-2021-0004-
M);
(5) Environmental Emergency Response Plan for the Project of Application of Homemade Intelligent
Equipment (System) from Efficient Silicon Solar Cells with an Annual Capacity of 7.5 GW of Tongwei
Solar (Meishan) Co., Ltd. (511400-2020-0031-L);
(6) Environmental Emergency Response Plan of Tongwei Solar (Chengdu) Co., Ltd. (510122-2022-1646-
M);
(7) Environmental Emergency Response Plan of Tonghe New Energy (Jintang) Co., Ltd. (510121 - 2022
- 082 - M);
(8) Environmental Emergency Response Plan of Tongwei Solar (Pengshan) Co., Ltd. (511403TIAN-2023-
041-M).
Solar module business group:
(1) Environmental Emergency Response Plan of Tongwei Solar (Hefei) Co., Ltd. (Rev.) (340171-2023-
045L);
Agriculture, animal husbandry and food business group:
(1) Environmental Emergency Response Plan of Chengdu Chunyuan Food Co., Ltd. (510183-2024-001-
L);
(2) Environmental Emergency Response Plan of Chengdu Xintaifeng Agriculture Development Co., Ltd.
(510183-2023-134-L);
(3) Environmental Emergency Response Plan of Tongwei (Hainan) Aquatic Products Co., Ltd. (469027-
2023-062-M).
5. Self-monitoring plans
"√Applicable" "□ Not applicable"
Major subsidiaries have established safety and environment departments or management teams,
equipped with sufficient personnel and advanced monitoring equipment. Various methods such as real-
time monitoring by environmental monitoring equipment, regular manual monitoring, and third-party
monitoring ensure the compliance with environmental management requirements.
(1) High-purity polysilicon and chemical engineering business group:
The discharge outlets are equipped with online monitoring devices for both wastewater and exhaust
gases, which comply with regulations. These devices can continuously monitor parameters such as
wastewater flow rate, COD, ammonia nitrogen, total nitrogen, pH, sulfur dioxide in wastewater, and the
nitrogen oxides, and particles in exhaust gases. The monitored data is transmitted in real-time to the
pollution source monitoring platform. Environmental protection personnel conduct daily inspections of
the online monitoring devices at the discharge outlets. Qualified maintenance entities are commissioned
to maintain the online monitoring devices according to technical specifications, ensuring the accuracy of
data analysis and compliance with discharge standards for all parameters. In accordance with the
environmental impact assessment report and technical specifications for industry emission permits, we
have prepared a self-monitoring plan. Qualified third-party testing agencies have been commissioned to
conduct monitoring according to the plan.
(2) Solar cell business group:
Online testing devices are installed at general wastewater discharge outlets to detect pollutants like
COD, NH3-N, and PH in a real-time manner, with detection data sent to the environmental protection
information platform on a regular basis. The wastewater treatment station is equipped with a wastewater
testing laboratory, where laboratory technicians conduct regular tests on various stages of wastewater
treatment to ensure that the discharged wastewater meets the required standards. In addition, the Company
has developed an annual environmental monitoring plan. In accordance with the requirements of the
environmental impact assessment report and pollution discharge permit, qualified third-party testing
agencies are commissioned to test the Company’s exhaust gas, wastewater, noise, plant boundary exhaust
gas, groundwater and other environmental aspects. The results are disclosed publicly.
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(3) Solar module business group:
Online monitoring devices are installed at general wastewater discharge outlets to detect pollutants
like COD, NH3-N, and PH in a real-time manner, with detection data sent to the environmental protection
information platform on a regular basis. In addition, the Company has developed an annual environmental
monitoring plan. In accordance with the requirements of the environmental impact assessment report and
pollution discharge permit, qualified third-party testing agencies are commissioned to test the Company’s
exhaust gas, wastewater, noise, plant boundary exhaust gas and other environmental aspects. The results
are disclosed publicly.
(4) Agriculture, animal husbandry and food business group:
The Company monitors parameters such as COD, ammonia nitrogen, pH, total phosphorus, total
nitrogen, and flow rate in wastewater in a real-time manner. All monitoring data is transmitted in real-time
to the environmental authority’s pollution source monitoring system. Additionally, in accordance with the
self-monitoring plan for the environment, qualified third-party testing agencies are regularly
commissioned to test on parameters such as waste gas, pH value and suspended solids in waste water,
plant boundary noise, and issue testing reports.
6. Administrative penalties due to environmental problems in the reporting period
"□ Applicable" "√ Not applicable"
7. Other environmental information that should be disclosed
"□ Applicable" "√ Not applicable"
(II) Note on environmental protection by companies other than key pollutant discharge units
"√Applicable" "□ Not applicable"
1. Administrative penalties due to environmental problems
"√Applicable" "□ Not applicable"
In the reporting period, Special Material Branch of Wuxi Tongwei Biotechnology Co., Ltd. was
penalized for exceeding the odor threshold; Wuxi Tongwei Biotechnology Co., Ltd. was penalized for
exceeding the limit of particulate matter concentration; Wuhan Tongwei Feed Co., Ltd. was penalized for
failure to operate the environmental equipment spray pump as required; Hefei Tongwei Biotechnology
Co., Ltd. was penalized for the malfunction of the supporting exhaust gas treatment facilities in the
crushing process; and Hainan Tongwei Biotechnology Co., Ltd. was penalized for exceeding the odor
threshold. All corrective actions for the above issues were completed in the reporting period and no
materially adverse impact was caused to the Company.
2. Other environmental disclosure with reference to key pollutant discharge units
"√Applicable" "□ Not applicable"
Tongwei Solar (Yancheng) Co., Ltd., Tongwei Solar (Sichuan) Co., Ltd., Tongwei Solar (Nantong)
Co., Ltd. and feed producers are non-key pollutant discharge units. They are primarily engaged in the
production of photovoltaic modules, aquatic feed, livestock feed, and other related products. Pollution
control measures by the three units are as below:
(1) Tongwei Solar (Yancheng) Co., Ltd.
① Waste gas management
The main pollutants in the exhaust gas are particles, non-methane hydrocarbons, and tin and its compounds.
The exhaust gas generated during the production process is collected through measures such as pipelines
and closed negative pressure. It is then treated through a “dry filtration system + zeolite rotary concentrator
+ ECO catalytic combustion” device before being discharged. The company has a laboratory from which
the exhaust gas mainly consists of dimethylbenzene which is collected in a closed space and discharged
into the atmosphere at high altitude. The concentration requirements for particles, tin and its compounds,
non-methane hydrocarbons and dimethylbenzene are subject to Integrated Emission Standard of Air
Pollutants (DB32/4041-2021) — particles ≤ 20 mg/m, tin and its compounds ≤ 5 mg/m, non-methane
hydrocarbons ≤ 60 mg/m and dimethylbenzene ≤ 10 mg/m.
② Wastewater management
During the production process, no industrial wastewater is generated. The wastewater primarily consists
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of domestic sewage and canteen wastewater. The canteen wastewater is pretreated in a grease trap, and the
domestic sewage is treated in a septic tank. The pre-treated canteen wastewater and domestic sewage
comply with the grade three standard in the Integrated Wastewater Discharge Standard (GB8978-1996)
— 6≤Ph≤9, COD ≤ 500 mg/L, ammonia nitrogen ≤ 45 mg/L, SS ≤ 400 mg/L, total phosphorus ≤ 8 mg/L,
total nitrogen ≤ 70 mg/L and animal fats and vegetable oils ≤100 mg/L — before being discharged into
the municipal sewage network.
③Solid waste management
The solid waste generated during the module production process is categorized into general industrial solid
waste and hazardous waste. Recyclable materials in general industrial solid waste, such as waste paper
and waste plastics, are entrusted to qualified resource recycling companies for comprehensive utilization.
Non-recyclable materials are sent to landfill sites for burial or to thermal powerplants for incineration.
Hazardous waste is stored in dedicated temporary storage facilities for hazardous waste and regularly
handed over to third-party disposal entities with corresponding capabilities and qualifications for disposal.
④ Noise management
The main sources of noise are equipment such as air compressors, cooling towers, and fans. Noise
emissions are primarily controlled through rational planning of layout, sound insulation of factory
buildings, selection of low-noise equipment, and enhanced management practices. The noise levels at the
factory boundary comply with emission standards.
(2) Tongwei Solar (Sichuan) Co., Ltd.
① Waste gas management
The main pollutants in the exhaust gas are particles, VOCs, tin and its compounds, and isopropanol. The
company utilizes five sets of “zeolite rotary adsorption + catalytic combustion” units and two sets of
“secondary activated carbon adsorption” units for waste gas treatment before emission. The company has
a laboratory from which the exhaust gas mainly consists of VOCs and dimethylbenzene. The two
pollutants are treated through one set of “secondary activated carbon adsorption” unit before being
discharged. Particles, and tin and its compounds are subject to the grade two standard in Table 2 of
Integrated Standards for Emission of Air Pollutants (GB 16297- 1996) — particles ≤ 120 mg/m; tin and
its compounds ≤ 8.5 mg/m. VOCs is subject to Table 3 of Sichuan Control Standards for Volatile Organic
Compounds (DB51/2377-2017) and the limit set forth in Standard for Fugitive Emission of Volatile
Organic Compounds (GB27822-2019) — VOCs ≤ 60 mg/m. Dimethylbenzene is subject to the grade two
standard in Table 2 of Integrated Standards for Emission of Air Pollutants (GB 16297- 1996) and the limit
set forth in Sichuan Control Standards for Volatile Organic Compounds (DB51/2377-2017) —
Dimethylbenzene ≤ 5.7 mg/m. Isopropanol is subject to the limit set forth in Sichuan Control Standards
for Volatile Organic Compounds (DB51/2377-2017) — Isopropanol ≤ 40 mg/m.
② Wastewater management
In our production process, industrial wastewater is not generated. Wastewater primarily comprises
workshop cleaning effluents and domestic sewage from employees. It undergoes pretreatment in septic
tanks to meet the standards specified in Table 2 of the Integrated Wastewater Discharge Standard
(GB8979-1996) and the inlet requirements of the municipal wastewater treatment plant (Tuojiang
Protection and Regeneration Water Plant) — COD ≤ 500 mg/L; ammonia nitrogen ≤ 45 mg/L; 6≤Ph≤9;
SS 400 mg/L; total phosphorus ≤ 8 mg/L; total nitrogen ≤ 70 mg/L; BOD5 ≤ 300 mg/L; and animal fats
and vegetable oils ≤ 100 mg/L. The treated water is discharged into the municipal sewage plant.
③ Solid waste management
The solid waste generated during the module production process is categorized into general industrial solid
waste and hazardous waste. Recyclable materials in general industrial solid waste, such as waste paper
and waste plastics, are entrusted to qualified resource recycling companies for comprehensive utilization.
Non-recyclable materials are sent to landfill sites for burial or to thermal powerplants for incineration.
Hazardous waste is stored in dedicated temporary storage facilities for hazardous waste and regularly
handed over to third-party disposal entities with corresponding capabilities and qualifications for disposal.
④ Noise management
The main sources of noise are equipment such as air compressors, cooling towers, and fans. Noise
emissions are primarily controlled through rational planning of layout, sound insulation of factory
buildings, selection of low-noise equipment, and enhanced management practices. The noise levels at the
factory boundary comply with emission standards.
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(3) Tongwei Solar (Nantong) Co., Ltd.
① Waste gas management
The main pollutants in the exhaust gas are non-methane hydrocarbons, particles, dimethylbenzene, and tin
and its compounds. The exhaust gases generated during the production process and from the material
testing laboratory are collected through pipelines and enclosed under negative pressure measures. They
are then treated through six sets of “dry filtration system + zeolite wheel concentration + ECO catalytic
combustion” units before being discharged. The kitchen fume is collected by a gas collecting hood and
then discharged after treatment by an oil fume purifier. The organized VOCs generated by lamination
processes are subject to the special emission limits of air pollutants in Table 5 of Emission Standard of
Pollutants for Synthetic Resin Industry (GB31572-2015) — VOCs ≤ 60 mg/m. The organized emissions
of particles, tin and its compounds, non-methane hydrocarbons, and dimethylbenzene are subject to limits
set forth in Table 1 and Table 3 of Integrated Emission Standard of Air Pollutants (DB32/4041-2021) —
VOCs ≤ 60 mg/m, particles ≤ 20 mg/m, tin and its compounds ≤ 5 mg/m, and dimethylbenzene ≤ 10
mg/m.
② Wastewater management
The main pollutants in the wastewater are pH, COD, SS, total nitrogen, ammonia nitrogen, total
phosphorus, petroleum compounds, anionic surfactants, animal fats and vegetable oils, and salinity. The
production process does not generate wastewater; the wastewater primarily consists of domestic sewage
from employees. After pretreatment in grease traps and septic tanks, the wastewater is discharged into the
municipal sewage pipeline and then sent to the Tongsheng Drainage Limited Company in Nantong
Economic and Technological Development Zone for centralized treatment. The wastewater received by
Tongsheng Drainage Limited Company must meet the grade three standard in Table 4 of Integrated
Wastewater Discharge Standard (GB8979-1996) — COD ≤ 500 mg/L, ammonia nitrogen ≤ 45 mg/L,
6≤Ph≤9, SS ≤ 400 mg/L, total phosphorus ≤ 8 mg/L, total nitrogen ≤ 70 mg/L, animal fats and vegetable
oils ≤ 100 mg/L, petroleum compounds ≤ 20 mg/L, anionic surfactants ≤ 20 mg/L and salinity ≤ 2000
mg/L.
③ Solid waste management
The solid waste generated during the module production process is categorized into general industrial solid
waste and hazardous waste. Recyclable materials in general industrial solid waste, such as waste paper
and waste plastics, are entrusted to qualified resource recycling companies for comprehensive utilization.
Non-recyclable materials are sent to landfill sites for burial or to thermal powerplants for incineration.
Hazardous waste is stored in dedicated temporary storage facilities for hazardous waste and regularly
handed over to third-party disposal entities with corresponding capabilities and qualifications for disposal.
④ Noise management
The main sources of noise are equipment such as air compressors, cooling towers, and fans. Noise
emissions are primarily controlled through rational planning of layout, sound insulation of factory
buildings, selection of low-noise equipment, and enhanced management practices. The noise levels at the
factory boundary comply with emission standards.
(4) Feed producers
① Waste gas management
The waste gas generated in feed production mainly consists of dust and exhaust of high temperature, high
humidity and high dust, which is treated by cyclone dust collector and dust collection bags, then treated
by sprinkler-based oxidation equipment before emitted.
② Wastewater management
No wastewater or little wastewater is generated in feed production. The wastewater is mainly from the
sprinkler system of environmental equipment. This wastewater is processed by the AAO Process and
circulated, which will not cause secondary pollution to environment. Domestic wastewater generated by
employees is pre-treated by the septic tank, and sent to the municipal wastewater treatment plant via the
municipal wastewater network for centralized treatment, with the tail water meeting the Grade One Type
A standards in Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-
2002) discharged. No pollution will be caused.
③ Solid waste management
Common types of solid waste generated in feed production are general solid waste and hazardous solid
waste. General solid waste is comprehensively utilized by material recycling companies. Hazardous type
is stored in a dedicated temporary room and sent to qualified parties periodically for further treatment.
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④ Noise management
Noise producers in feed production mainly include crushers, mixers, draught fans. We use low-noise
equipment and have them arranged properly so that noise attenuates to the largest extent over distance.
High-noise equipment is enclosed with noise absorbing walls.
We have been strengthening the procedure-based environmental protection with significant effect. No
significant environmental event or pollution occurred in the reporting period.
3. Reason for non-disclosure of other environmental information
"□ Applicable" "√ Not applicable"
(III) Information relating to protecting ecology, preventing pollution and fulfilling environmental
obligation
"√Applicable" "□ Not applicable"
The Company is firmly committed to the United Nations Sustainable Development Goals framework.
As part of its sustainable development strategy, it advocates for a collaborative approach with stakeholders,
fostering the principles of “co-creation, co-governance, and shared prosperity” for a sustainable and better
future. Within the framework of our sustainable strategy and guided by the vision of For Better Life, the
Company has formulated 10 sustainability commitments and statements, encompassing environmental
protection, in response to national expectations, societal needs, and business development. These
commitments, along with short, medium, and long-term goals related to environmental, social, and
governance aspects, provide clear direction and action guidelines for the comprehensive implementation
of our sustainable strategy.
The Company has established an industry-leading system for environmental and social responsibility
management. It has been awarded multiple international standard certifications by third-party
organizations, including ISO 14001 for Environmental Management Systems, ISO 14040 for Life Cycle
Assessment, ISO 14064-1 for Greenhouse Gas Verification, ISO 14067 for Product Carbon Footprint, ISO
50001 for Energy Management Systems, ISO 37301 for Compliance Management Systems, and Social
Accountability 8000. Leveraging these certifications as a foundation, the Company enhances its
environmental and social responsibility management systems through ongoing domestic and international
benchmarking. In the reporting period, the Company achieved high scores in the on-site assessment
conducted by Kiwa, a renowned European certification body, for Supply Chain, Environment, and
Employee (SEE) standards. Additionally, Tongwei Solar (Hefei) Co., Ltd. was awarded the EcoVadis
Silver Medal, a globally recognized sustainability performance assessment standard, for its outstanding
performance in environmental practices, labor rights, business ethics, and sustainable procurement.
Regarding environmental protection, the Company has implemented a robust environmental
management system with a clearly defined hierarchical structure. It strictly complies with relevant laws
and regulations, including the Environmental Protection Law, the Air Pollution Prevention and Control
Law, the Water Pollution Prevention and Control Law, the Soil Pollution Prevention and Control Law,
and the Solid Waste Pollution Prevention and Control Law. Upholding stringent environmental
compliance standards, the Company actively fosters green, low-carbon production practices while
monitoring and mitigating environmental risks. The Company is committed to energy conservation and
efficiency. It consistently enhances the electrification level of production processes. By the end of 2023,
the share of electricity in the Company's overall energy consumption exceeded 94%. Electrification of
terminal equipment and zero-carbon electricity are narrowing the gap between the Company and its carbon
neutrality goal.
In terms of carbon footprint management, the Company has completed 21 certifications for the carbon
footprint of photovoltaic products, including certifications from France and ISO. The Company strongly
upholds the climate objectives set forth in the Paris Agreement and backs the country’s dual carbon goals.
Leveraging its strengths in green energy and sustainable agriculture, the Company consistently advances
collaborative efforts among enterprises towards carbon neutrality. The Company has formally joined the
RE100 initiative, pledging to achieve 100% renewable energy usage by 2030 at the latest. Collaborating
with businesses across sectors, it aims to drive global climate action and sustainable development.
Additionally, Tongwei Solar (Hefei) Co., Ltd., has joined the global Science Based Targets initiative
(SBTi).
In green manufacturing, the Company ingrains green principles throughout the entire manufacturing
process. This spans from product design and raw material procurement to production, transportation, and
application. A comprehensive green product management system is established to minimize resource
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2023 Annual Report
consumption, reduce ecological impacts, and maximize renewable energy utility throughout the product
lifecycle. As of the end of the reporting period, the Company has accumulated 7 national-level Green
Factory awards, 2 provincial-level Green Factory awards, 4 national-level Green Supply Chain awards,
and 3 types of nationally recognized Green Design products.
In terms of biodiversity, the Company upholds the principles of sustainable development and strictly
adheres to documents like the Convention on Biological Diversity, the Kunming Declaration, and China’s
Legal Framework for Biodiversity Protection. With a Biodiversity Protection Commitment and Policy in
place, the Company actively conducts biodiversity risk assessments. Leveraging the strengths of green
agriculture and renewable energy, the Company strives to realize the vision of harmony between humanity
and nature.
The Company’s 2023 Environmental, Social and Governance Report approved at the 18th meeting
of the 8th board of directors and the 15th meeting of the 8th supervisory committee was disclosed on the
website of Shanghai Stock Exchange and other designated media on April 30, 2024. The report has
described the Company's practices and performances in economy, environment, society and company
governance over the year of 2023.
(IV) Emission reduction actions in the reporting period and the effect
Carbon reduction measures taken or not Yes
Carbon emission reduction (tCO2e) 13,337,043
In the reporting period, the Company achieved its
Types of carbon reduction actions (such as use
carbon reduction targets through various measures
clean energy for power generation, use
such as purchasing clean energy, actively
decarbonization technologies in production
developing photovoltaic power generation,
process and develop new products that help
optimizing waste heat recovery and upgrading
reduce carbon footprint)
equipment and processes.
Specific description
"√Applicable" "□ Not applicable"
In 2023, under the coordinated management of the Energy Management Committee and the
Headquarters Energy Management Executive Working Group, all subsidiaries actively implemented
energy consumption control and emissions reduction initiatives through their Sustainable Development
Supervision Teams. Based on an analysis of its current carbon emissions, emission source structure, and
future emission trends, and considering the development of domestic and international low-carbon policies,
the Company has set an ambitious climate goal of striving to achieve operational carbon neutrality by
2030. To achieve this goal, the Company has developed clear action targets and pathways focusing on
three levels: operations, value chain, and products.
The Company has developed a clear overall plan, direction, and objectives for achieving carbon
emission standards. Through organizational-level carbon accounting and product carbon footprint
certification, it consistently reinforces its carbon emission management system. By procuring clean energy,
optimizing processes, upgrading equipment, and promoting recycling, the Company implements its carbon
reduction strategy. It is fully committed to accelerating the low-carbon transformation of its operations
and enhancing technological innovation and cooperation efforts. The Company is dedicated to achieving
green and sustainable development while fulfilling its responsibilities in global climate change mitigation
efforts. The Company has measured and calculated the carbon emissions of its silicon materials, solar cells
and modules over their life cycles in accordance with the Environmental Management — Life Cycle
Assessment — Requirements and Guidelines and Greenhouse Gases — Carbon Footprint of Products —
Requirements and Guidelines for Quantification. It is an industry leader in terms of carbon footprint
certification.
In the reporting period, the Company made steady progress in various initiatives for energy
conservation and emission reduction. All subsidiaries actively identified and explored energy-saving
opportunities through measures such as technological development, equipment upgrades, and process
optimization, continuously improving energy efficiency. In terms of high-purity polysilicon production,
Yongxiang has independently developed technologies such as the cascade utilization of reductive thermal
energy, precise heat energy matching control technology for polysilicon production systems, and steam
cycle utilization technology. These advancements have significantly increased the comprehensive
utilization efficiency of thermal energy and greatly reduced steam consumption. In terms of solar module
manufacturing, the Company places a strong emphasis on upgrading its system management. This includes
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2023 Annual Report
the overhaul of the power station's chilled water production and supply system, and the development of
an intelligent management platform and control system to optimize quality control and reduce energy
consumption.
II. Social responsibility
(I) Separate disclosure of social responsibility report, sustainability report or ESG report
"√Applicable" "□ Not applicable"
Refer to the 2023 Environmental, Social and Governance Report of Tongwei Co., Ltd. disclosed on the
website of Shanghai Stock Exchange (http://www.sse.com.cn) on April 30, 2024 for details.
(II) Social responsibility practices
"√Applicable" "□ Not applicable"
Outward donations and public interest projects Amount/description Note
Total investment (10,000 yuan) 741.75
In which: cash (10,000 yuan) 732.57
In-kind donations (10,000 yuan) 9.18
Number of benefited persons /
Specific description
"√Applicable" "□ Not applicable"
The Company is dedicated to its corporate mission of Striving for Excellence Contributing to Society,
with a strong focus on sustainable development as a cornerstone of its growth. Continuously refining and
enhancing management systems and measures for sustainability, it actively collaborates with suppliers and
partners to forge a path towards sustainable development, aiming to share in the rewards of a sustainable
and improved future.
In 2023, the Company set forth comprehensive short, medium, and long-term sustainable
development objectives centered around environmental, social, and corporate governance. Among these
is an ambitious climate goal for operational carbon neutrality by 2030. Clear climate action pathways were
defined across operation, value chain, and product dimensions. The Company has publicly announced 10
sustainable development commitments and policies concerning environment, human rights, occupational
health and safety, biodiversity preservation, responsible procurement, and other relevant issues. It is
committed to operations with higher standards and requirements in these areas. Moreover, the Company
actively engages in global climate governance and international initiatives. It has joined prominent
initiatives such as the 100% Renewable Energy Initiative (RE100), the United Nations Global Compact
(UNGC), and has endorsed the United Nations Women's Empowerment Principles (WEPs), the
International Climate Action Initiative for Digital Ecological Civilization and the Capacity Building
Project for Sino-Africa Collaboration on Renewable Energy Development. The Company has been a
regular participant in United Nations Climate Change Conferences, and one of its subsidiaries, Tongwei
Solar (Hefei) Co., Ltd., is a member of the Science Based Targets initiative (SBTi).
In terms of carbon management, the Company has voluntarily undertaken carbon inventory and
verification procedures. It has obtained verification certificates for greenhouse gas emissions at
operational levels for both 2021 and 2022. This marks the Company's adherence to the ISO 14064
certification requirements, placing it at the forefront of the industry. The Company's carbon inventory and
verification for the year 2023 will extend for the first time to cover Scope 3 emissions. This demonstrates
the Company's growing focus on comprehensive and thorough monitoring and assessment in carbon
management, offering enhanced data support for future emission reduction targets throughout the supply
chain. At the product level, the Company completed certification of the carbon footprint for 21 products
in 2023, marking a 425% increase compared to the previous year. This demonstrates its commitment to
implementing its climate action strategy effectively. At the talent development level for carbon peaking
and neutrality, the Company hosted its first Greenhouse Gas Internal Auditor Training event. A total of 52
certified professionals were trained as internal auditors, contributing significantly to Tongwei's sustainable
development efforts.
In the pursuit of energy efficiency and sustainable practices, the Company has launched initiatives
centered around the theme Leading in Energy Efficiency for Green Development. Among these is the
Tongwei Energy Efficiency Cup, recognizing exemplary efforts in energy conservation. These initiatives
aim to inspire internal teams, fostering creativity and enthusiasm in energy-saving endeavors. By
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promoting knowledge exchange, sharing experiences, and implementing best practices, the Company
seeks to elevate its overall energy management standards. The Company organized over 20 training
sessions featuring senior industry experts and internal specialists. These sessions covered a wide range of
topics including ESG, energy conservation, and green, low-carbon practices, aiming to boost employees'
professional expertise.
In 2023, for its outstanding performance in sustainable development, the Company was honored with
several prestigious awards. These include the first prize in the Clean and Smart Energy of the United
Nations Industrial Development Organization's Global Call 2023 program, recognition in the Forbes China
TOP 50 Sustainable Development Industrial Enterprises and the Top 100 Pioneers among China's ESG-
Listed Companies. Additionally, the Company was listed in the 2023 Fortune China ESG Impact List and
the 2023 Forbes China Top 50 ESG Innovative Enterprises. One of its subsidiaries also achieved the
EcoVadis Silver Medal for Sustainable Development.
III. Work relating to poverty relief and rural revitalization
"√Applicable" "□ Not applicable"
Poverty-alleviation and rural revitalization projects Amount/description Note
Total investment (10,000 yuan) 2,057.52
In which: cash (10,000 yuan) 2,057.52
In-kind donations (10,000 yuan) 0.00
Number of benefited persons
Poverty relief forms (such as through industry development, Industry development,
employment and education） employment and education
Specific description
"√Applicable" "□ Not applicable"
The Company actively engages in social welfare initiatives, including industrial poverty alleviation,
employment support, and educational assistance in underdeveloped communities. In the reporting period,
the Company primarily used various photovoltaic poverty alleviation projects established in regions like
Jilin, Shandong, Ningxia, Inner Mongolia, and Sichuan to provide local impoverished households with
stable income streams from photovoltaic power generation and ensure reliable electricity supply. This
ongoing commitment helps to solidify the progress made in poverty alleviation efforts within these regions.
90 / 293
2023 Annual Report
Section VI Important Matters
I. Fulfillment of commitments
(I) Commitments made by the Company, its actual controller, shareholders, related parties, and acquirers in or by the reporting period
Fulfilled Specific
Fulfillment Next steps
properly reasons for
Commitment Commitment Commitment duration Commitment to correct
Background Commitment party and in non-
Type Content time provided or duration the non-
time or fulfillment
not fulfillment
not in time
Other than the target company, the
commitment party has not invested in any
other entities with similar or identical
business operations, nor undertaken any
business activities resembling or
mirroring those of the target company on
behalf of others. The commitment party
and entities under their control do not
have horizontal competition with the
target company. The commitment party
and entities under their control will not
Commitments
conduct any operation activity that is
relating to Solve
Liu Hanyuan and identical, similar to or competes with the Not Not
restructuring horizontal May 2015 No Long term Yes
Tongwei Group existing business or product of the target applicable applicable
of material competition
company, including but not limited to
assets
through creation of, investment into,
purchase of, merger of any domestic or
overseas company whose business and/or
product is identical or similar to that of
the target company, and will not generate
any horizontal competition of any kind in
any form of economic organization.
Currently, there are no plans for the
resumption of production at the
polysilicon plant in Leshan (“Leshan
Polysilicon”). Prior to Tongwei Group
91 / 293
2023 Annual Report
transferring its shares in Leshan
Polysilicon to an independent third party
or Tongwei Co., Ltd., Leshan Polysilicon
will not undertake any polysilicon
construction project or engage in any
other business activities similar to those
of the target company, Tongwei Co., Ltd.,
or its subsidiaries.
Liu Hanyuan, Tongwei Group and entities
under their control do not have any
related-party transaction with the target
company. After this transaction, Liu
Hanyuan,Tongwei Group and entities
under their control will try every mean to
avoid or reduce related-party transactions
with the target company; for any related-
party transaction that cannot be avoided
or are necessary for reasonable grounds, a
valid related-party transaction agreement
will be concluded with the target
Commitments
company and approval procedures will be
relating to Solve
Liu Hanyuan and completed under applicable laws, Not Not
restructuring related-party May 2015 No Long term Yes
Tongwei Group regulations, provisions, listing rules and applicable applicable
of material transactions
other normative documents as well as the
assets
articles of association of Tongwei Co.,
Ltd.; any transaction with Tongwei and/or
its subsidiaries will be performed at the
fair value, such transactions will not be
used to do any thing that is harmful to
Tongwei Co., Ltd. and/or its subsidiaries;
the information disclosure obligation
relating to related-party transactions will
be performed in accordance with
applicable laws, regulations, listing rules
and the articles of association of Tongwei
Co., Ltd.. Liu Hanyuan and Tongwei
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2023 Annual Report
Group promise to properly fulfill the said
commitment, and will be liable for
damages under laws if the interests and
rights of Tongwei Co., Ltd. or the target
company are harmed due to any breach of
the said commitment by Liu Hanyuan,
Tongwei Group and/or any entity under
their control.
Liu Hanyuan and Tongwei Group will not
harm the independence of Tongwei Co.,
Ltd. due to this restructuring, keep
separated from Tongwei Co., Ltd. in
terms of assets, personnel, finance,
organizational structure and business,
strictly observe relevant provisions of the
CSRC on independence of listed
companies, not use Tongwei Co., Ltd.
Commitments as guarantee in breach of provisions, not
relating to occupy funds of Tongwei Co., Ltd. in
Liu Hanyuan and Not Not
restructuring Others breach of provisions, and maintain the May 2015 No Long term Yes
Tongwei Group applicable applicable
of material independence of Tongwei Co., Ltd. This
assets commitment will remain valid as long as
Tongwei Co., Ltd. is in legally existence,
Liu Hanyuan acts as the actual controller
of Tongwei Co., Ltd. and Tongwei
Group is the controlling shareholder of
Tongwei Co., Ltd. Liu Hanyuan and
Tongwei Group will be liable for damages
under laws if their breach of the said
commitment causes any loss to Tongwei
Co., Ltd. and/or its shareholders.
Commitments Tongwei Group will not occupy without
relating to payment and/or use with payment the
Not Not
restructuring Others Tongwei Group assets, funds or other resources of May 2015 No Long term Yes
applicable applicable
of material Tongwei Co., Ltd.; for any funds transfer
assets between Tongwei Group and Tongwei
93 / 293
2023 Annual Report
Co., Ltd., Tongwei Group will strictly
observe requirements in applicable laws
and regulations, administrative rules and
the articles of associations (including but
not limited to provisions on related-party
transactions).
As of the date of this commitment letter,
other than the target company, Liu
Hanyuan and Tongwei Group have not
invested in any other entities with similar
or identical business operations, nor
undertaken any business activities
resembling or mirroring those of the
target company on behalf of others. Liu
Hanyuan, Tongwei Group and entities
under their control do not have horizontal
competition with the target company. Liu
Hanyuan, Tongwei Group and entities
under their control will not conduct any
Commitments
operation activity that is identical, similar
relating to Solve
Liu Hanyuan and to or competes with the existing business Not Not
restructuring horizontal April 2016 No Long term Yes
Tongwei Group or product of the target company, applicable applicable
of material competition
including but not limited to through
assets
creation of, investment into, purchase of,
merger of any domestic or overseas
company whose business and/or product
is identical or similar to that of the target
company, and will not generate any
horizontal competition of any kind in any
form of economic organization. Liu
Hanyuan and Tongwei Group promise to
properly fulfill the said commitment, and
will be liable for damages under laws if
the interests and rights of Tongwei Co.,
Ltd. or the target company are harmed
due to any breach of the said commitment
94 / 293
2023 Annual Report
by Liu Hanyuan, Tongwei Group and/or
any entity under their control.
As of the date of this commitment letter,
Liu Hanyuan, Tongwei Group and entities
under their control do not any unfair
related-party transaction with the target
company. After this transaction, Liu
Hanyuan,Tongwei Group and entities
under their control will try every mean to
avoid or reduce related-party transactions
with the target company; for any related-
party transaction that cannot be avoided
or are necessary for reasonable grounds, a
valid related-party transaction agreement
will be concluded with the target
company and approval procedures will be
completed under applicable laws,
Commitments
regulations, provisions, listing rules and
relating to Solve
Liu Hanyuan and other normative documents as well as the Not Not
restructuring related-party April 2016 No Long term Yes
Tongwei Group articles of association of Tongwei Co., applicable applicable
of material transactions
Ltd.; any transaction with Tongwei Co.,
assets
Ltd. and/or its subsidiaries will be
performed at the fair value, such
transactions will not be used to do any
thing that is harmful to Tongwei Co.,
Ltd. and/or its subsidiaries; the
information disclosure obligation relating
to related-party transactions will be
performed in accordance with applicable
laws, regulations, listing rules and the
articles of association of Tongwei Co.,
Ltd.. Liu Hanyuan and Tongwei Group
promise to properly fulfill the said
commitment, and will be liable for
damages under laws if the interests and
rights of Tongwei Co., Ltd.or the target
95 / 293
2023 Annual Report
company are harmed due to any breach of
the said commitment by Liu Hanyuan,
Tongwei Group and/or any entity under
their control.
Tongwei Group will not and will procure
its affiliates not to by itself or together
with, for the behalf of any person, firm or
entity develop, operate or facilitate the
operation of, participate in, or be engaged
Commitments Solve in any business that causes or may cause
Not Not
relating to horizontal Tongwei Group indirect or direct competition with the Before IPO No Long term Yes
applicable applicable
IPO competition main business of Tongwei Co., Ltd.
Tongwei Group agrees to indemnify
Tongwei Co., Ltd. from and against any
and all losses, damages and expenses
incurred due to its breach of this
commitment.
Liu Hanyuan and Guan Yamei will not
Commitments Solve
Liu Hanyuan, Guan invest into any company whose business Not Not
relating to horizontal Before IPO No Long term Yes
Yamei is identical or similar to the business of applicable applicable
IPO competition
the Company.
Tongwei Group will not occupy without
payment and/or use with payment the
assets, funds or other resources of
Tongwei Co., Ltd.; for any funds transfer
Commitments between Tongwei Group and Tongwei
Not Not
relating to Others Tongwei Group Co., Ltd., Tongwei Group will strictly Before IPO No Long term Yes
applicable applicable
IPO observe requirements in applicable laws
and regulations, administrative rules and
the articles of associations (including but
not limited to provisions on related-party
transactions).
Before using up the raised funds or within Before the raised
Commitments
36 months after the raised funds are in funds are used Not Not
related to Others Tongwei Co., Ltd. August 2020 Yes Yes
place, Tongwei Co., Ltd. shall not inject up or within 36 applicable applicable
refinancing
funds into similar financial services nor months after the
96 / 293
2023 Annual Report
into Tongwei Agricultural Finance raised funds are
Guarantee Co., Ltd. (including capital in place.
increase, borrowing, guarantee and other
forms of capital investment) shall not be
allowed.
Tongwei Co., Ltd.
Employee share
plans: China Life
Asset Management
Company Limited -
Dingkun Advantage
Select 2246 Insurance
Asset Management
Product, China Life
Asset Management
Company Limited -
Dingkun Advantage
Select 2247 Insurance
Commitments
Asset Management Shares may not be transferred within 12
related to Restricted July 06, 2022 to Not Not
Product, Dingkun months since the completion of the July 2022 Yes Yes
share shares July 05, 2023 applicable applicable
Advantage Select purchase.
incentive
2257 Insurance Asset
Management Product,
Dingkun Advantage
Select 2258 Insurance
Asset Management
Product, Dingkun
Advantage Select
2260 Insurance Asset
Management Product,
and Dingkun
Advantage Select
2271 Insurance Asset
Management Product
Other The commitment party intends to use its The Not Not
Others Tongwei Group January 2024 Yes Yes
commitments own funds and self-raised funds to implementation applicable applicable
97 / 293
2023 Annual Report
increase its holdings of the Company's period of the
shares through the trading system of the share increase
Shanghai Stock Exchange from February plan is from
1, 2024, to January 31, 2025, in an February 1,
amount not less than 1 billion yuan and 2024, to January
not exceeding 2 billion yuan. The total 31, 2025.
increase in holdings will not exceed 2%
of the Company's total share capital. The
commitment party pledges to strictly
comply with applicable laws and
regulations, including the Company Law,
Securities Law, and relevant rules of the
Shanghai Stock Exchange. It commits to
completing the share increase plan within
the stipulated period and further promises
not to reduce its holdings of the
Company's shares during this increase
plan and for a period of six months after
its completion, as well as within the
period specified by laws and regulations.
"√Applicable" "□ Not applicable"
98 / 293
2023 Annual Report
(II) Where profit forecasts are made for assets or projects of the Company and the reporting period
falls into the profit forecast period, the Company should explain the reasons for whether the
assets and projects reach the profit forecasts
"□ Reached" "□ Not reached" "√Not applicable"
(III) Completion of performance commitment and its effect on the goodwill impairment test
"□ Applicable" "√ Not applicable"
II. Funds possessed by the controlling shareholder or other related parties for non-operating
purposes
"□ Applicable" "√ Not applicable"
III. Guarantees in violation of provisions
"□ Applicable" "√ Not applicable"
IV. Note by the board of directors on non-standard audit report
"□ Applicable" "√ Not applicable"
V. Analysis and note by the Company on reasons and effect of changes in accounting policies,
accounting estimates or corrections of material accounting errors
(I) Analysis and note by the Company on reasons and effect of changes in accounting policies and
accounting estimates
"□ Applicable" "√ Not applicable"
(II) Analysis and note by the Company on reasons and effect of corrections of material accounting
errors
"□ Applicable" "√ Not applicable"
(III) Communication with former accounting firm
"□ Applicable" "√ Not applicable"
(IV) Approval procedures and other notes
"□ Applicable" "√ Not applicable"
VI. Engagement and dismissal of accounting firm
Unit:10,000 yuan Currency: CNY
Engaged
Sichuan Huaxin (Group) CPA (Special General
Name of domestic accounting firm
Partnership)
Remuneration for domestic accounting firm 491
Audit period of domestic accounting firm 23
CPA names of domestic accounting firm Li Wulin, Tang Fangmo, and Xia Hongbo
Cumulative years of service provided by 3 years by Li Wulin, 3 years by Tang Fangmo, and 3
CPAs of the domestic accounting firm years by Xia Hongbo
Name of overseas accounting firm /
Remuneration for overseas accounting firm /
Audit period of overseas accounting firm /
Name Remuneration
Sichuan Huaxin (Group) CPA (Special General
Internal control auditing firm 1.52 million yuan
Partnership)
Sponsor China Securities Co., Ltd 0 yuan
99 / 293
2023 Annual Report
Note on engagement and dismissal of accounting firm
"√Applicable" "□ Not applicable"
As approved by the 2022 general meeting on May 16, 2023, the Company renewed the appointment of
Sichuan Huaxin to provide 2023 annual audit and internal control audit.
Note on change of accounting firm in the audit period
"□ Applicable" "√ Not applicable"
Note on the decrease in audit fees by 20% or over compared to the previous year
"□ Applicable" "√ Not applicable"
VII. Situations that cause suspension of trading risk
(I) Reasons for suspension of trading warning
"□ Applicable" "√ Not applicable"
(II) Proposed actions by the Company
"□ Applicable" "√ Not applicable"
(III) Situations and reasons for termination of trading
"□ Applicable" "√ Not applicable"
VIII. Matters relating to bankruptcy and reorganization
"□ Applicable" "√ Not applicable"
IX. Material litigation and arbitration matters
"□ Yes" "√ No"
X. Punishments on and corrections by the Company, and/or its directors, supervisors, senior
mangers, controlling shareholder, and actual controller
"□ Applicable" "√ Not applicable"
XI. Note on the integrity status of the Company and its controlling shareholder and actual
controller
"□ Applicable" "√ Not applicable"
XII. Material related-party transactions
(I) Related-party transactions pertaining to everyday operation
1. Matters that have been disclosed in extraordinary announcements without further progress or
change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in extraordinary announcements with further progress or
change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in extraordinary announcements
"□ Applicable" "√ Not applicable"
(II) Related-party transactions due to purchase or sale of assets or shares
1. Matters that have been disclosed in extraordinary announcements without further progress or
change
100 / 293
2023 Annual Report
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in extraordinary announcements with further progress or
change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in extraordinary announcements
"□ Applicable" "√ Not applicable"
4. Performance achieved in the reporting period where performance agreement was involved
"□ Applicable" "√ Not applicable"
(III) Material related-party transactions for joint outward investments
1. Matters that have been disclosed in extraordinary announcements without further progress or
change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in extraordinary announcements with further progress or
change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in extraordinary announcements
"□ Applicable" "√ Not applicable"
(IV) Related-party debts and claims
1. Matters that have been disclosed in extraordinary announcements without further progress or
change
"□ Applicable" "√ Not applicable"
2. Matters that have been disclosed in extraordinary announcements with further progress or
change
"□ Applicable" "√ Not applicable"
3. Matters not disclosed in extraordinary announcements
"□ Applicable" "√ Not applicable"
(V) Financial transactions between the Company and financial companies with which the
Company has a relationship or controlled by the Company, and related parties
"□ Applicable" "√ Not applicable"
(VI) Others
"□ Applicable" "√ Not applicable"
XIII. Major contracts and their performance
(I) Custody, contracting, lease matters
1. Custody
"□ Applicable" "√ Not applicable"
2. Contracting
"□ Applicable" "√ Not applicable"
3. Lease
"□ Applicable" "√ Not applicable"
101 / 293
2023 Annual Report
(II) Guarantee
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Outward guarantees by the Company (excluding guarantees for subsidiaries)
Relation Date Guarantee Related- Relation
Guarantee
between Guaranteed Guaranteed (agreement Guarantee Guarantee Guarantee Collateral fulfilled Overdue Counter- party with the
Guarantor overdue or
guarantor and party amount execution the guarantee Maturity date type (if any) completely or amount guarantee guarantee related
not
the Company date) not or not party
Tongwei
Guarantor, real
Agricultural Joint and
Wholly-owned Downstream September May 31, estate, vehicles,
Finance 18,644.39 several No Yes 1,470.68 No
subsidiary customers 15, 2017 2028 and farming
Guarantee guarantee
facilities, etc.
Co., Ltd.
Pledge of
joint and shares, and the
Tongwei Co., Farmers and April 09,
Head office 7,347.00 July 07, 2023 several No No 0.00 parent company No
Ltd. dealers 2024
guarantee provides counter
guarantee
Total guaranteed amount in the reporting period (excluding guarantees for subsidiaries) 64,576.73
Total guaranteed amount at the end of the reporting period (A) (excluding guarantees for subsidiaries) 25,991.39
Guarantees by the Company and its subsidiaries for other subsidiaries
Total guaranteed amount for subsidiaries in the reporting period 1,317,000.00
Total guaranteed amount for subsidiaries at the end of the reporting period (B) 1,918,200.00
Total guaranteed amount by the Company (including guarantees for subsidiaries)
Total guaranteed amount (A+B) 1,944,191.39
Ratio of total guaranteed amount to net assets of the Company (%) 26.33
Including:
Amount for shareholders, actual controller and its related parties (C) 0.00
Indirect or direct guaranteed amount for parties whose debt-ratio is over 70% (D) 921,200.00
Amount out of the total guaranteed amount that exceeds 50% of the net assets (E) 0.00
Total of the above three items (C+D+E) 921,200.00
Note on unexpired guarantees for which the Company may bear joint liability for repayment
The overdue guaranteed amount means the unrecovered balance of repayments made
Note on guarantees
for behalf of the guaranteed parties at the end of the reporting period
102 / 293
2023 Annual Report
(III) Entrusted cash management
1. Entrusted wealth management
(1) Overview of entrusted wealth management products
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Type Sources of funds Amount change Balance not overdue Overdue amount
Bank wealth products The Company's own funds 1,930,000.00 877,000.00
Brokerage wealth products The Company's own funds 118,900.00 112,900.00
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted wealth management products
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Amount of
Future
Statuary provision
Expected Actual entrusted
Sources of Purpose of Any Benefit Annualized Amount not Overdue procedure for
Trustee Type Amount Start date End date return gain or wealth
funds funds restrictions method rate of return due amount completed impairment
(If any) loss management
or not reserve (if
plan or not
any)
The
Bank of Bank wealth October 08, January 08, Structured Floating
100,000.00 Company's No 1.54%-3.25% 100,000.00 Yes
Chengdu products 2023 2024 deposits income
own funds
The
Bank of Bank wealth December 04, March 04, Structured Floating
50,000.00 Company's No 1.54%-3.25% 50,000.00 Yes
Chengdu products 2023 2024 deposits income
own funds
Floating Calculated based
Redemption
income on changes in
Bank of depending on The
Bank wealth November 23, Fixed-income with the market interest
Communications 40,000.00 the product's Company's No 40,000.00 Yes
products 2023 assets risk of rates and the actual
Co., Ltd. operation own funds
principal operation of the
status
loss investment.
Redemption
depending on The Transferable
Ping An Bank Bank wealth Floating
50,000.00 May 04, 2023 the product's Company's certificates of No 3.20% 50,000.00 Yes
Co., Ltd. products income
operation own funds deposit
status
Redemption The Transferable
Ping An Bank Bank wealth Floating
60,000.00 May 29, 2023 depending on Company's certificates of No 3.15% 60,000.00 Yes
Co., Ltd. products income
the product's own funds deposit
103 / 293
2023 Annual Report
operation
status
Redemption
depending on The Transferable
Ping An Bank Bank wealth Floating
20,000.00 June 27, 2023 the product's Company's certificates of No 3.10% 20,000.00 Yes
Co., Ltd. products income
operation own funds deposit
status
Floating Calculated based
Redemption
income on changes in
depending on The
Ping An Bank Bank wealth December 01, Fixed-income with the market interest
10,000.00 the product's Company's No 10,000.00 Yes
Co., Ltd. products 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Shanghai Redemption The Transferable
Bank wealth Floating
Pudong 10,000.00 May 06, 2023 depending on Company's certificates of No 3.20% 10,000.00 Yes
products income
Development the product's own funds deposit
104 / 293
2023 Annual Report
Bank operation
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 May 06, 2023 the product's Company's certificates of No 3.20% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 June 29, 2023 the product's Company's certificates of No 3.15% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth Floating
10,000.00 June 29, 2023 the product's Company's certificates of No 3.15% 10,000.00 Yes
Development products income
operation own funds deposit
Bank
status
Redemption
Shanghai
depending on The Transferable
Pudong Bank wealth August 17, Floating
5,000.00 the product's Company's certificates of No 3.10% 5,000.00 Yes
Development products 2023 income
operation own funds deposit
Bank
status
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth August 15, Fixed-income with the market interest
10,000.00 the product's Company's No 10,000.00 Yes
Co., Ltd. products 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth August 31, Fixed-income with the market interest
10,000.00 the product's Company's No 10,000.00 Yes
Co., Ltd. products 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth September Fixed-income with the market interest
35,000.00 the product's Company's No 35,000.00 Yes
Co., Ltd. products 22, 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth September Fixed-income with the market interest
15,000.00 the product's Company's No 15,000.00 Yes
Co., Ltd. products 28, 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
105 / 293
2023 Annual Report
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth November 16, Fixed-income with the market interest
30,000.00 the product's Company's No 30,000.00 Yes
Co., Ltd. products 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
depending on The
Industrial Bank Bank wealth December 01, Fixed-income with the market interest
10,000.00 the product's Company's No 10,000.00 Yes
Co., Ltd. products 2023 assets risk of rates and the actual
operation own funds
principal operation of the
status
loss investment.
Redemption
depending on The Transferable
China Bank wealth Floating
10,000.00 June 09, 2023 the product's Company's certificates of No 3.30% 10,000.00 Yes
Merchants Bank products income
operation own funds deposit
status
Redemption
Industry and depending on The Transferable
Bank wealth Floating
Commerce Bank 7,000.00 June 15, 2023 the product's Company's certificates of No 3.25% 7,000.00 Yes
products income
of China operation own funds deposit
status
Redemption
Industry and depending on The Transferable
Bank wealth Floating
Commerce Bank 7,000.00 June 15, 2023 the product's Company's certificates of No 3.25% 7,000.00 Yes
products income
of China operation own funds deposit
status
Redemption
Industry and depending on The Transferable
Bank wealth Floating
Commerce Bank 7,000.00 June 16, 2023 the product's Company's certificates of No 3.25% 7,000.00 Yes
products income
of China operation own funds deposit
status
Redemption
Industry and depending on The Transferable
Bank wealth Floating
Commerce Bank 7,000.00 June 16, 2023 the product's Company's certificates of No 3.25% 7,000.00 Yes
products income
of China operation own funds deposit
status
Floating Calculated based
Redemption
China income on changes in
depending on The
Construction Bank wealth August 04, Fixed-income with the market interest
55,000.00 the product's Company's No 55,000.00 Yes
Bank products 2023 assets risk of rates and the actual
operation own funds
Corporation principal operation of the
status
loss investment.
Floating Calculated based
Redemption
China income on changes in
depending on The
Construction Bank wealth August 04, Fixed-income with the market interest
45,000.00 the product's Company's No 45,000.00 Yes
Bank products 2023 assets risk of rates and the actual
operation own funds
Corporation principal operation of the
status
loss investment.
Agricultural Bank wealth March 14, Redemption The Transferable Floating
30,000.00 No 3.10% 30,000.00 Yes
Bank of China products 2023 depending on Company's certificates of income
106 / 293
2023 Annual Report
Co., Ltd. the product's own funds deposit
operation
status
Redemption
Agricultural depending on The Transferable
Bank wealth March 20, Floating
Bank of China 40,000.00 the product's Company's certificates of No 3.10% 40,000.00 Yes
products 2023 income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth March 20, Floating
Bank of China 30,000.00 the product's Company's certificates of No 3.10% 30,000.00 Yes
products 2023 income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
Redemption
Agricultural depending on The Transferable
Bank wealth Floating
Bank of China 2,000.00 May 06, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Co., Ltd. operation own funds deposit
status
China CITIC Redemption The Transferable
Bank wealth Floating
Bank 8,000.00 June 19, 2023 depending on Company's certificates of No 3.10% 8,000.00 Yes
products income
Corporation Ltd. the product's own funds deposit
107 / 293
2023 Annual Report
operation
status
Redemption
China CITIC depending on The Transferable
Bank wealth Floating
Bank 2,000.00 June 21, 2023 the product's Company's certificates of No 3.10% 2,000.00 Yes
products income
Corporation Ltd. operation own funds deposit
status
Floating Calculated based
Redemption
income on changes in
China CITIC depending on The
Bank wealth August 24, Fixed-income with the market interest
Bank 40,000.00 the product's Company's No 40,000.00 Yes
products 2023 assets risk of rates and the actual
Corporation Ltd. operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
China CITIC depending on The
Bank wealth November 27, Fixed-income with the market interest
Bank 10,000.00 the product's Company's No 10,000.00 Yes
products 2023 assets risk of rates and the actual
Corporation Ltd. operation own funds
principal operation of the
status
loss investment.
Haitong
Brokerage The
Securities August 25, February 23, Structured Floating
wealth 5,000.00 Company's No 2%-2.61%-6% 5,000.00 Yes
Company 2023 2024 deposits income
products own funds
Limited
Floating Calculated based
Redemption
Haitong income on changes in
Brokerage depending on The
Securities November 01, Fixed-income with the market interest
wealth 4,000.00 the product's Company's No 4,000.00 Yes
Company 2023 assets risk of rates and the actual
products operation own funds
Limited principal operation of the
status
loss investment.
Haitong
Brokerage The
Securities November 28, February 28, Structured Floating
wealth 5,000.00 Company's No 2.3%-2.54%-5.3% 5,000.00 Yes
Company 2023 2024 deposits income
products own funds
Limited
Floating Calculated based
Redemption
income on changes in
Changjiang Brokerage depending on The
Fixed-income with the market interest
Securities Co., wealth 31,900.00 June 14, 2023 the product's Company's No 31,900.00 Yes
assets risk of rates and the actual
Ltd. products operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
Changjiang Brokerage depending on The
August 02, Fixed-income with the market interest
Securities Co., wealth 17,000.00 the product's Company's No 17,000.00 Yes
2023 assets risk of rates and the actual
Ltd. products operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
Brokerage depending on The
China Securities October 18, Fixed-income with the market interest
wealth 15,000.00 the product's Company's No 15,000.00 Yes
Co., Ltd 2023 assets risk of rates and the actual
products operation own funds
principal operation of the
status
loss investment.
108 / 293
2023 Annual Report
Floating Calculated based
Redemption
income on changes in
Brokerage depending on The
China Securities October 23, Fixed-income with the market interest
wealth 15,000.00 the product's Company's No 15,000.00 Yes
Co., Ltd 2023 assets risk of rates and the actual
products operation own funds
principal operation of the
status
loss investment.
Floating Calculated based
Redemption
income on changes in
Brokerage depending on The
China Securities November 17, Fixed-income with the market interest
wealth 20,000.00 the product's Company's No 20,000.00 Yes
Co., Ltd 2023 assets risk of rates and the actual
products operation own funds
principal operation of the
status
loss investment.
Note: The above information about wealth management products only describes the amounts not due in the reporting period.
Others
"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted wealth management
"□ Applicable" "√ Not applicable"
2. Entrusted loans
(1) Overview of entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(2) Individual entrusted loans
"□ Applicable" "√ Not applicable"
Others
"□ Applicable" "√ Not applicable"
(3) Impairment reserve for entrusted loans
"□ Applicable" "√ Not applicable"
3. Others
"□ Applicable" "√ Not applicable"
109 / 293
2023 Annual Report
(IV) Other material contracts
"□ Applicable" "√ Not applicable"
XIV. Note on the use of the raised funds
"√Applicable" "□ Not applicable"
(I) Overall use of the raised funds
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan
Cumulative investment Percentage of Total
Including: Net amount Adjusted total Cumulative investment Investment in
Arrival date Total amount Total committed percentage (%) by the investment in the amount for
Source of funds overraised after issuance committed by the end of the the reporting
of funds raised amount end of the reporting reporting period other
amount costs amount (1) reporting period (2) period (4)
period (3) = (2)/(1) (5) = (4)/(1) purpose
November
Private placement 598,339.00 0.00 594,167.57 598,339.00 598,339.00 595,017.82 99.44 75,424.78 12.61 /
20, 2020
Issuing convertible February
1,200,000.00 0.00 1,191,912.72 1,200,000.00 1,200,000.00 1,192,437.11 99.37 28,070.39 2.34 /
bonds 24, 2022
(II) Details of projects funded through financing activities
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan
Cumulative
investment Any
Cumulative Investment Specific
Purpose of Overraise percentage Benefit or R&D significant
Adjusted total Investment in investment by the Date of project Project percentag reasons Return realized
funds Source of Arrival date d funds Total committed (%) by the achievements change in Balance
Project name Project nature committed amount the reporting end of the reaching closed or e meeting for not in the reporting
changed or funds of funds used or amount end of the made by the project amount
(1) period reporting period usability status not plan or meeting period
not not reporting project feasibility, if
(2) not plan
period any, specify
(3)＝(2)/(1)
The intelligent factory of
high-efficiency silicon
Production and Private November
solar cells with an annual No No 200,000.00 200,000.00 14,799.00 173,921.78 86.96 June 30, 2021 Yes Yes 70,796.07 7.5 GW No 0.00
construction placement 20, 2020
capacity of 7.5 GW
(Meishan Phase II)
The project of intelligent
connected factory of high-
Production and Private November December 10, 5.6 GW
efficiency silicon solar No No 220,000.00 220,000.00 18,322.16 204,641.60 93.02 Yes Yes 45,965.78 No 0.00
construction placement 20, 2020 2021 (Note 1)
cells with an annual
capacity of 7.5 GW
110 / 293
2023 Annual Report
(Jintang Phase I)
Supplementing working
Operation Private November
capital for the listed No No 178,339.00 178,339.00 0.00 174,150.82 Yes Yes / No 0.00
management placement 20, 2020
company
Permanent
supplementation of Private November
Others No No 42,303.62 42,303.62 Yes Yes / No 0.00
working capital with placement 20, 2020
balance amount
15 GW monocrystalline Issuing
Production and February October 01,
rod pulling and cutting No convertible No 290,000.00 290,000.00 27,461.38 290,000.00 100.00 Yes Yes 75,901.27 15 GW No 0.00
construction 24, 2022 2022
project bonds
Phase II high-purity Issuing
Production and February
polysilicon project in No convertible No 300,000.00 300,000.00 0.02 300,000.04 100.00 July 01, 2022 Yes Yes 357,699.99 85,000 tons No 0.00
construction 24, 2022
Baotou bonds
Phase II high-purity Issuing
Production and February December 01,
polysilicon project in No convertible No 260,000.00 260,000.00 0.04 260,000.14 100.00 Yes Yes 446,567.17 68,000 tons No 0.00
construction 24, 2022 2021
Leshan bonds
Issuing
Supplementing liquidities Operation February
No convertible No 350,000.00 350,000.00 0.00 341,827.98 Yes Yes / No 0.00
for the listed company management 24, 2022
bonds
Permanent
Issuing
supplementation of February
Others No convertible No 608.95 608.95 Yes Yes / No 0.00
liquidities with balance 24, 2022
bonds
amount
Note 1: On April 9, 2021, the Company convened the 18th meeting of the seventh board of directors and the 17th meeting of the seventh supervisory committee. The
Proposal on Adjusting the Total Investment Scale of Some Projects Funded by Financing Activities was reviewed and approved. It was agreed to reduce the total
investment scale of the project of intelligent connected factory of high-efficiency silicon solar cells with an annual capacity of 7.5 GW (Jintang Phase I) from the
original total investment amount of 2,700.6139 million yuan to 2,315.91 million yuan. The proposed investment amount from the raised funds remains unchanged.
Following the adjustment, the PERC cell capacity of the project will be reduced from 7.5GW to 5.6GW. This will involve reducing investment in equipment, while
the remaining space will be allocated for the construction of a trial production line for heterojunction cells. On May 7, 2021, the adjustment was approved during the
Company's annual general meeting for the year 2020.
(III) Change or termination of projects funded through financing activities in the reporting period
"□ Applicable" "√ Not applicable"
(IV) Other information on the use of raised funds in the reporting period
1. Early investment and later replacement of funds for these projects
"□ Applicable" "√ Not applicable"
2. Temporary supplementation of working capital with idle raised funds
"√Applicable" "□ Not applicable"
111 / 293
2023 Annual Report
On March 9, 2022, during the 25th meeting of the seventh board of directors, the Company approved the Proposal on Temporary Supplement of Working Capital
with Idle Raised Funds. This proposal allows for the temporary allocation of a portion of the idle raised funds, from the issuance of convertible corporate bonds
publicly announced on February 24, 2022, to supplement working capital. The approved amount for this purpose would not exceed 2,520 million yuan, with a usage
period of up to 12 months from the date of board approval. Since March 9, 2022, the Company has utilized a cumulative amount of 2,520 million yuan of idle raised
funds to bolster working capital. On March 8, 2023, the Company fully returned the idle raised funds of 2,520 million yuan used for temporary working capital
supplementation to the dedicated account for raised funds. For further details, please refer to the announcement titled Announcement of Tongwei Co., Ltd. on the
Return of Idle Raised Funds Used for Temporary Working Capital Supplementation (with announcement number: 2023-018) disclosed by the Company on March 9,
2023, on the website of the Shanghai Stock Exchange (http://www.sse.com.cn).
On December 12, 2022, during the 6th meeting of the 8th board of directors, the Company approved the Proposal on Temporary Supplement of Working Capital
with Idle Raised Funds. This proposal allows for the temporary allocation of a portion of the idle raised funds from the private placement in 2020 to supplement
working capital. The approved amount for this purpose would not exceed 780 million yuan, with a usage period of up to 12 months from the date of board approval.
Since December 12, 2022, the Company has utilized a cumulative amount of 780 million yuan of idle raised funds to bolster working capital. On December 11, 2023,
the Company fully returned the idle raised funds of 780 million yuan used for temporary working capital supplementation to the dedicated account for raised funds.
For further details, please refer to the announcement titled Announcement of Tongwei Co., Ltd. on the Return of A Portion of Idle Raised Funds Used for Temporary
Working Capital Supplementation (with announcement number: 2023-091) disclosed by the Company on December 12, 2023, on the website of the Shanghai Stock
Exchange (http://www.sse.com.cn).
3. Management of idle raised funds and investment in related products
"□ Applicable" "√ Not applicable"
4. Permanent supplementation of working capital or repayment of outstanding bank loans with overraised funds
"□ Applicable" "√ Not applicable"
5. Others
"√Applicable" "□ Not applicable"
Approved by the CSRC in the Reply on Approving Tongwei Co., Ltd. to Publicly Issue Convertible Bonds (ZJXK [2021] No.4028) on December 20, 2021, the
Company issued 120 million convertible bonds to the public with the nominal value of each bond being 100 yuan for a total amount of 12 billion yuan on February
24, 2022. After completing relevant approval procedures, the Company has allocated the remaining balance of raised funds, totaling 6,089,500 yuan, for permanent
supplementation of working capital. As of May 18, 2023, the Company completed the deregistration procedures for the above-mentioned dedicated account for raised
funds. For details, please refer to the Special Report on the Storage and Actual Use of Raised Funds for Tongwei Co., Ltd. in 2023 disclosed on the website of the
Shanghai Stock Exchange (http://www.sse.com.cn).
As approved by the CSRC in the Reply on Approving Tongwei Co., Ltd. to Publicly Issue Convertible Bonds (ZJXK [2020] No.2492) on October 09, 2020, the
Company issued 213,692,500 RMB-denominated ordinary shares (A-share) to 16 entities including Dacheng Fund via private placement on November 20, 2020. The
issuing price is 28.00 yuan/share for a total amount of 5,983.39 million yuan. On December 24, 2023, the 16th meeting of the 8th board of directors and the 13th
meeting of the 8th supervisory committee of the Company approved the Proposal on Concluding Projects Funded through Financing Activities and Permanently
Supplementing Working Capital with Balance Raised Funds. The Company has allocated the remaining balance of the dedicated account for raised funds, totaling
112 / 293
2023 Annual Report
423,036,200 yuan, for permanent supplementation of working capital. As of January 04, 2024, the Company completed the deregistration procedures for the above-
mentioned dedicated account for raised funds. For details, please refer to the Special Report on the Storage and Actual Use of Raised Funds for Tongwei Co., Ltd. in
2023 disclosed on the website of the Shanghai Stock Exchange (http://www.sse.com.cn).
XV. Notes on material matters that have significant impact on value judgment and investment decisions of investors
"□ Applicable" "√ Not applicable"
113 / 293
2023 Annual Report
Section VII Share Changes and Shareholders
I. Change in share capital
(I) Share changes
1. Share changes
Unit: share
Before the Change (+, -) After the change
change
Capital
Percent New Bonus reserve Sub- Percent
Number Others Number
(%) issue issue converted total (%)
to shares
I. Restricted
shares
1. Shares held by
the state
2. Shares held by
the state-owned
legal entities
3. Shares held by
other domestic
investors
Including, shares
held by domestic
investors other
than state-owned
legal entities
Shares held by
domestic natural
persons
4. Shares held by
overseas investors
Including, shares
held by overseas
legal entities
Shares held by
overseas natural
persons
II. Floating shares 4,501,946,097 100 0 0 0 27,649 27,649 4,501,973,746 100
1. CNY common
4,501,946,097 100 0 0 0 27,649 27,649 4,501,973,746 100
shares
2. Foreign shares
listed in Chinese
mainland
3. Foreign shares
listed outside
Chinese mainland
4. Others
III. Total shares 4,501,946,097 100 0 0 0 27,649 27,649 4,501,973,746 100
2. Notes on share changes
"√Applicable" "□ Not applicable"
On February 24, 2022, the Company issued convertible bonds (“Tong22 Convertible Bonds”) which
entered the conversion period on September 2, 2022. In 2023, a total of 27,649 shares had been converted,
and the total share capital of the Company increased to 4,501,973,746 shares at the end of the reporting
period.
3. Impact of the share change on the earnings per share, net assets per share and other financial
indicators of the latest year and the latest period (if any)
"√Applicable" "□ Not applicable"
In the reporting period, due to the conversion of convertible bonds into shares, the total share capital
of the Company increased from 4,501,946,097 shares to 4,501,973,746 shares. This share capital change
resulted in the dilution of earnings per share and net assets per share attributable to the listed company in
2023.
114 / 293
2023 Annual Report
4. Other disclosures the Company thinks necessary or required by the CSRC
"□ Applicable" "√ Not applicable"
(II) Change in restricted shares
"□ Applicable" "√ Not applicable"
II. Issuance and listing of securities
(I) Issuance in reporting period
"√Applicable" "□ Not applicable"
Unit: share Currency: CNY
Type of stock Approved
Issue price (or Issue
and its derivative Issue date Listing date quantity to trade Transaction end date
interest rate) size
securities on market
Convertible bonds, detachable convertible bonds
1st year 0.20%,
2nd year 0.40%,
Tong22 120
February 24, 3rd year 0.60%, March 18, 120 million
Convertible million February 23, 2028
2022 4th year 1.50%, 2022 units
Bonds units
5th year 1.80%,
6th year 2.00%
Note on issuance of securities in the reporting period (bonds with different interest rates and within the
duration should be specified individually):
"√Applicable" "□ Not applicable"
Approved by the CSRC in the ZJXK [2021] No. 4028, on February 24, 2022, the Company issued
120 million convertible bonds publicly with the nominal value of each bond being 100 yuan for a total
amount of 12 billion yuan. The duration of these convertible bonds is 6 years from February 24, 2022 to
February 23, 2028, the coupon rate is 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd year,
1.50% in the 4th year, 1.80% in the 5th year, and 2.00% in the 6th year. One interest payment is made on
Tong22 Convertible Bonds each year, and the value date is the first day of the issuance (i.e., February 24,
2022). Convertible bonds converted into shares before (including) the record date for creditors are not
entitled to interest for the current and subsequent interest calculation years.
According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and the
provisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co., Ltd., the
Tong22 Convertible Bonds issued by the Company can be converted into shares from September 2, 2022.
The initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share. On May 30, 2022,
due to the 2021 annual equity distribution of the Company, the conversion price of was adjusted to 38.36
yuan per share. In the reporting period, due to the 2022 annual equity distribution of the Company, the
conversion price of was adjusted to 35.50 yuan per share.
(II) Changes in total shares and shareholding structure and change in the asset-liability structure
"√Applicable" "□ Not applicable"
At the end of the reporting period, the Company had a total of 4,501,973,746 shares, an increase of 27,649
shares in 2023 from the previous year.
As of the end of the reporting period, Tongwei Group, the controlling shareholder, held 43.85% of shares
in the Company.
As of the end of the reporting period, the total assets were 164.363 billion yuan and total liabilities were
90.534 billion yuan for a L/A ratio of 55.08%.
(III) Current employee shares
"□ Applicable" "√ Not applicable"
III. Shareholders and actual controller
115 / 293
2023 Annual Report
(I) Total shareholders
Total common shareholders at the end of the reporting period 371,036
Total common shareholders at the end of the month prior to the
353,475
disclosure date of annual report
Total preference shareholders at the end of the reporting period 0
Total preference shareholders with voting rights restored at the end of
0
the month prior to the disclosure date of annual report
(II) Top ten shareholders, top ten floating shareholders (or non-restricted shareholders) at the end
of the reporting period
Unit: share
Holdings by top ten shareholders (excluding the shares borrowed through “stock financing transfer”)
Pledge, mark or freeze
Shareholder name Change in the Restricted
Closing shares Percent (%) Share Shareholder type
(Full name) reporting period shares Number
Status
Domestic
Tongwei Group Co., investor other
0 1,974,022,515 43.85 0 Pledged 348,100,000
Ltd. than state-owned
legal entities
Hong Kong Securities
-75,671,919 186,322,988 4.14 0 None Unknown
Clearing Company Ltd.
China Life Asset
Management Company
Limited - Bank of China
- China Life Asset - 0 52,099,840 1.16 0 None Unknown
Advantage Select 2108
Insurance Asset
Management Fund
CMB - Ruiyuan Growth
Value Mixed 19,566,035 44,234,935 0.98 0 None Unknown
Investment Fund
National Social
Security Fund 110 1,462,500 43,829,232 0.97 0 None Unknown
Combination
ICBC - Huatai - SSE 50
Trade Open-ended 14,006,443 32,905,395 0.73 0 None Unknown
Index Investment Fund
Yang Lin -1,372,100 31,180,000 0.69 0 None Unknown
Bank of China - Huatai
PineBridge Investments
Zhongzheng PV
2,401,482 29,414,695 0.65 0 None Unknown
Industry Trade Open-
ended Index Investment
Fund
China Life Asset
Management Company
Limited - Industrial
Bank of China - China
0 24,400,000 0.54 0 None Unknown
Life Asset - Advantage
Select 2110 Insurance
Asset Management
Fund
China Pacific Life
Insurance Co., Ltd. -
22,200,734 23,886,664 0.53 0 None Unknown
Traditional - Common
Insurance Product
Top ten shareholders without restricted shares
Type and number of shares
Shareholder name Floating shares
Type Number
Tongwei Group Co., Ltd. 1,974,022,515 CNY common share 1,974,022,515
Hong Kong Securities Clearing Company Ltd. 186,322,988 CNY common share 186,322,988
China Life Asset Management Company Limited - Bank
of China - China Life Asset - Advantage Select 2108 52,099,840 CNY common share 52,099,840
Insurance Asset Management Fund
CMB - Ruiyuan Growth Value Mixed Investment Fund 44,234,935 CNY common share 44,234,935
National Social Security Fund 110 Combination 43,829,232 CNY common share 43,829,232
ICBC - Huatai - SSE 50 Trade Open-ended Index
32,905,395 CNY common share 32,905,395
Investment Fund
Yang Lin 31,180,000 CNY common share 31,180,000
116 / 293
2023 Annual Report
Bank of China - Huatai PineBridge Investments
Zhongzheng PV Industry Trade Open-ended Index 29,414,695 CNY common share 29,414,695
Investment Fund
China Life Asset Management Company Limited -
Industrial Bank of China - China Life Asset - Advantage 24,400,000 CNY common share 24,400,000
Select 2110 Insurance Asset Management Fund
China Pacific Life Insurance Co., Ltd. - Traditional -
23,886,664 CNY common share 23,886,664
Common Insurance Product
Note on application for special repurchase accounts
Not applicable
among top ten shareholders
Note on delegation of voting rights to or by, or wavier of
Not applicable
voting rights by the said shareholders
No relationship exists between Tongwei Group and any of the other shareholders. China
Life Asset Management - Bank of China- China Life Asset - Advantage Select 2108
Note on the said shareholders’ relationship or acting in Insurance Asset Management Product and China Life Asset Management - Industrial
concert Bank of China - China Life Asset - Advantage Select 2110 Insurance Asset Management
Fund Product are created for employee share plan and they act in concert. Whether or not
other shareholders have relationships or act in concert is not known.
Note on preference shareholders with voting rights
Not applicable
restored and number of shares they hold
Note: On January 31, 2024, the Company received a notice letter from its controlling shareholder, Tongwei Group Co.,
Ltd., regarding Tongwei Group’s intention to increase its holdings of the Company's shares. Tongwei Group expressed firm
confidence in the Company's development prospects and recognition of its long-term investment value, and proposed to
increase its holdings of the Company's shares through the trading system of the Shanghai Stock Exchange from February 1,
2024, to January 31, 2025, with an amount not less than 1 billion yuan and not exceeding 2 billion yuan. For further details,
please refer to the Announcement on the Plan of the Controlling Shareholder to Increase Holdings of the Company's Shares
(announcement number: 2024-006) disclosed by the Company on February 1, 2024. As of the disclosure date of this report,
Tongwei Group has cumulatively increased its holdings of the Company's A-shares by 1,692,014 shares through centralized
bidding trading on the Shanghai Stock Exchange. The total amount of the increase is about 40,214,200 yuan (excluding
handling fees and transfer fees).
The participation of the top ten shareholders in the “share financing transfer” for lending shares
"√Applicable" "□ Not applicable"
Unit: share
The participation of the top ten shareholders in the “share financing transfer” for lending shares
Opening shares lent through Closing shares lent through
Opening holdings in ordinary Closing holdings in ordinary
“share financing transfer” “share financing transfer”
Shareholder name account or credit account account or credit account
and not yet returned and not yet returned
(full name)
Percent Percent Percent Percent
Total shares Total shares Total shares Total shares
(%) (%) (%) (%)
Tongwei Group Co., Ltd. 1,974,022,515 43.85 1,974,022,515 43.85
Hong Kong Securities
261,994,907 5.82 186,322,988 4.14
Clearing Company Ltd.
China Life Asset
Management Company
Limited - Bank of China
- China Life Asset - 52,099,840 1.16 52,099,840 1.16
Advantage Select 2108
Insurance Asset
Management Fund
CMB - Ruiyuan Growth
Value Mixed Investment 24,668,900 0.55 44,234,935 0.98
Fund
National Social Security
42,366,732 0.94 43,829,232 0.97
Fund 110 Combination
ICBC - Huatai - SSE 50
Trade Open-ended Index 18,898,952 0.42 4,239,300 0.09 32,905,395 0.73 242,000 0.01
Investment Fund
Yang Lin 32,552,100 0.72 31,180,000 0.69
Bank of China - Huatai
PineBridge Investments
Zhongzheng PV
27,013,213 0.60 496,900 0.01 29,414,695 0.65 406,700 0.01
Industry Trade Open-
ended Index Investment
Fund
China Life Asset
24,400,000 0.54 24,400,000 0.54
Management Company
117 / 293
2023 Annual Report
Limited - Industrial
Bank of China - China
Life Asset - Advantage
Select 2110 Insurance
Asset Management Fund
China Pacific Life
Insurance Co., Ltd. -
1,685,930 0.04 23,886,664 0.53
Traditional - Common
Insurance Product
Change in top ten shareholders from the previous period
"√Applicable" "□ Not applicable"
Unit: share
Change in top ten shareholders from the end of the previous period
Closing shares lent through “share Closing holdings in ordinary account or credit
Shareholder name Entry/exit in the financing transfer” and not yet account, and shares lent through “share
(full name) reporting period returned financing transfer” and not yet returned
Total shares Percent (%) Total shares Percent (%)
Dacheng Fund - Huaneng Trust Jiayue
No.7 Fund Trust - Dacheng Fund
Exit 0 0 22,814,514 0.51
Excellence No. 2 Single Asset
Management Plan
China Life Asset Management Company
Limited - CGB - China Life Asset -
Exit 0 0 21,707,578 0.48
Dingkun Advantage Select 2258
Insurance Asset Management Product
ICBC - Huatai - SSE 50 Trade Open-
New 242,000 0.01 33,147,395 0.74
ended Index Investment Fund
China Pacific Life Insurance Co., Ltd. -
New 0 0 23,886,664 0.53
Traditional - Common Insurance Product
Number of restricted shares held by top ten restricted shareholders and the restrictions
"□ Applicable" "√ Not applicable"
(III) Strategic investors or general legal entities which became top ten shareholders due to new
bonus share
"□ Applicable" "√ Not applicable"
IV. Controlling shareholder and actual controller
(I) Controlling shareholder
1. Legal entity
"√Applicable" "□ Not applicable"
Name Tongwei Group Co., Ltd.
Person in charge or legal
Guan Yamei
representative
Date of incorporation October 14, 1996
Wholesale and retail of goods; livestock husbandry; services for
promoting and applying technologies; services for software and
information technology; development and operation of real
Main businesses
properties; property management; lease; advertising; PV
generation (excluding items requiring prior licenses; items
requiring post licenses are subject to licenses or approvals)
Other companies listed within or
outside Chinese mainland that
None
held shares in the Company in the
reporting period
Other notes None
118 / 293
2023 Annual Report
2. Natural person
"□ Applicable" "√ Not applicable"
3. Special note on the fact that the Company has no controlling shareholder
"□ Applicable" "√ Not applicable"
4. Note on change of controlling shareholder in the reporting period
"□ Applicable" "√ Not applicable"
5. Box diagram specifying the ownership and control relationship between the Company and its
controlling shareholder
"√Applicable" "□ Not applicable"
As of now, the controlling shareholder Tongwei Group Co., Ltd. holds 1,975,714,529 shares of the
Company, accounting for 43.89% of the Company's total share capital.
(II) Actual controller
1. Legal entity
"□ Applicable" "√ Not applicable"
2. Natural person
"√Applicable" "□ Not applicable"
Name Liu Hanyuan
Nationality China
Residence right in other
No
countries/regions
Chair of the board of directors of Tongwei Group, member of
the 8th board of directors of the Company, member of the 11th
Main professions and titles Standing Committee of the CPPCC National Committee,
deputy to the NPC, vice-chair of Standing Committee of All-
China Federation of Industry and Commerce and others.
Listed companies within and outside
Chinese mainland controlled by the None
actual controller in the latest 10 years
3. Special note on the fact that the Company has no actual controller
"□ Applicable" "√ Not applicable"
4. Note on change of control of the Company in the reporting period
"□ Applicable" "√ Not applicable"
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2023 Annual Report
5. Box diagram specifying the ownership and control relationship between the Company and its
actual controller
"√Applicable" "□ Not applicable"
Liu Hanyuan
Ownership Ownership
interest 80% interest 80%
Tongwei Group Co., Ltd. Chengdu Xinde
Investment Co., Ltd.
Ownership
Ownership
interest
interest 0.02%
43.89%
Tongwei Co., Ltd.
6. Actual controller controls the Company via trust or other asset management approaches
"□ Applicable" "√ Not applicable"
(III) Other information about the controlling shareholder and actual controller
"□ Applicable" "√ Not applicable"
V. The cumulative shares pledged by controlling shareholder or the largest shareholders and their
persons acting in concert account for over 80% of the total shares
"□ Applicable" "√ Not applicable"
VI. Other legal entities holding over ten percent of the total shares
"□ Applicable" "√ Not applicable"
VII. Note on restricting sale of shares
"□ Applicable" "√ Not applicable"
VIII.Specific implementation of share repurchases in the reporting period
"□ Applicable" "√ Not applicable"
Section VIII Preference Shares
"□ Applicable" "√ Not applicable"
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2023 Annual Report
Section IX Bonds
I. Enterprise bonds, company bonds and non-financial enterprise debt-financing instruments
"√Applicable" "□ Not applicable"
(I) Enterprise bonds
"□ Applicable" "√ Not applicable"
(II) Company bonds
"□ Applicable" "√ Not applicable"
(III) Non-financial enterprise debt-financing instruments in inter-bank bond market
"√Applicable" "□ Not applicable"
I. Basic information on non-financial enterprise debt-financing instruments
Unit:100 million yuan Currency: CNY
Investor
Balance Interest Risk of
Issue Value Maturity Payment Trading appropriateness
Bond name Short name Code of rate Trading mechanism termination
date date date method venue arrangement (if
bonds (%) of trading
any)
Transactions are
Installment concluded with
interest counterparties trade by
China
2020 Middle- payments trade over the counter
20 Tongwei June 17, June 19, June 19, Interbank
Term Note Series 102001216 0.00 3.20 and None through the CNY No
MTN001 2020 2020 2023 Bond
1 principal trading system in
Market
repaid on China Foreign
maturity Exchange Trade
System
Transactions are
2023 Green Interest is concluded with
Super & Short- paid counterparties trade by
China
term Commercial 23TongweiSCP001 April April together trade over the counter
October Interbank
Paper Series 1 (Green Sci-Tech 012381586 18, 19, 0.00 2.50 with the None through the CNY No
16, 2023 Bond
(Sci-Tech Innovation) 2023 2023 principal in trading system in
Market
Innovation full at China Foreign
Notes) maturity Exchange Trade
System
Transactions are
2023 Green Interest is concluded with
Super & Short- paid counterparties trade by
China
term Commercial 23TongweiSCP002 together trade over the counter
July 21, July 21, December Interbank
Paper Series 2 (Green Sci-Tech 012382727 0.00 2.27 with the None through the CNY No
2023 2023 18, 2023 Bond
(Sci-Tech Innovation) principal in trading system in
Market
Innovation full at China Foreign
Notes) maturity Exchange Trade
System
Transactions are
Installment concluded with
2023 Green
interest counterparties trade by
Middle-Term China
23TongweiGN001 October October payments trade over the counter
Note Series 1 October Interbank
(Sci-Tech 132380075 19, 19, 5.00 3.10 and None through the CNY No
(Sci-Tech 19, 2026 Bond
Innovation Notes) 2023 2023 principal trading system in
Innovation Market
repaid on China Foreign
Notes)
maturity Exchange Trade
System
Response actions against risk of termination of trading
"□ Applicable" "√ Not applicable"
Overdue bonds
"□ Applicable" "√ Not applicable"
Interest payment and principal repayment on bonds in the reporting period
"√Applicable" "□ Not applicable"
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2023 Annual Report
Bond name Note on interest payment and
principal repayment
2020 Middle-Term Note Series 1 Paid
2023 Green Super & Short-term Commercial Paper Series 1 (Sci-Tech
Paid
Innovation Notes)
2023 Green Super & Short-term Commercial Paper Series 2 (Sci-Tech
Paid
Innovation Notes)
2023 Green Middle-Term Note Series 1 (Sci-Tech Innovation Notes) Interest paid normally
2. Trigger and execution of the option clause for issuers or investors and the investor protection
clause
"□ Applicable" "√ Not applicable"
3. Intermediaries for services relating to bond issuing and bond duration
Intermediary name Office location Signatory accountants Contact Telephone
Postal Savings Bank of No. 3 Jinrong Street, Xicheng Zheng Yarong, Lei Lufan, 010-68857443
China Co., Ltd. District, Beijing Li Jiejuan 010-68857440
10F, Taikang Group Tower,
Li Puhai, Pu Fei, Yang
China Securities Co., Ltd Building.1, Yard 16, Jinghui 028-68850820
Junwei and Wen Bingyi
Street, Chaoyang District, Beijing
Industrial Bank Building, No.
Industrial Bank Co., Ltd. 398 Middle Jiangbin Avenue, Li Jie, and Fan Weikai 028-84179143
Taijiang District, Fuzhou, Fujian
Minsheng Bank Building, No. 2
China Minsheng Banking
Fuxingmen Inner Street, Xicheng Shu Chang, and Yang Xi 010-58560666
Corporation Ltd.
District, Beijing
Bank of Communications No. 188 Middle Yincheng Road,
Liu Lei 021-38873252
Co., Ltd. Shanghai Free Trade Zone
China CITIC Bank Building.1, Yard 10, Guanghua
Wang Zhouyu 010-66636334
Corporation Ltd. Road, Chaoyang District, Beijing
Shanghai Pudong
No.12, First Zhongshan East
Development Bank Co., Fang Zhou 021-31882624
Road, Shanghai, China
Ltd.
40/F, Building A, Caifu Center,
Beijing Jindu Law Firm No.7, Middle Third-Ring Road, Liu Rong and Lu Yong 028-86203818
Chaoyang District, Beijing
Sichuan Huaxin (Group) 28/F, Jinmao Lidu South, No. 18 Li Wulin, Tang
CPA (Special General Ximianqiao Street, Chengdu, Fangmo, and Xia Zhang Lan 028-85560449
Partnership) Sichuan Hongbo
17F, Building 2, Yard 2,
China Lianhe Credit
Jianguomenwai Street, Chaoyang Li Zeying 010-85679228
Rating Co., Ltd.
District, Beijing
Lianhe Equator Lianhe Credit Building, No. 80
Environmental Impact Qufu Street, Heping District, Wang Shunli 022-58356945
Assessment Co., Ltd. Tianjin
7/F, Building D, Zhaoshang
CCIX Credit Rating Co., International Financial Center,
Yu Qian and Liu Qing 010-66428877
Ltd. No. 156 Fuxingmen Inner Street,
Xicheng District, Beijing
33-34/F, Oriental Financial Plaza,
Xie Chenyan and Chen
Shanghai Clearing House No. 318 South Zhongshan Road, 021-23198708
Gongrong
Shanghai
Changes in the above intermediaries
"□ Applicable" "√ Not applicable"
4. Use of raised funds at the end of the reporting period
"√Applicable" "□ Not applicable"
Unit: 100 million yuan Currency: CNY
Compliance with
Operation of the Correction for
the purposes, use
Total amount Amount special account non-conforming
Bond name Amount used schedule and other
raised unused for raised funds use of the raised
covenants in the
(if any) funds (if any)
prospectus
2020 Middle-Term Note
4.00 4.00 0.00 Not applicable Not applicable Yes
Series 1
2023 Green Super & Short- 3.00 3.00 0.00 Not applicable Not applicable Yes
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2023 Annual Report
term Commercial Paper
Series 1 (Sci-Tech Innovation
Notes)
2023 Green Super & Short-
term Commercial Paper
3.00 3.00 0.00 Not applicable Not applicable Yes
Series 2 (Sci-Tech Innovation
Notes)
2023 Green Middle-Term
Note Series 1 (Sci-Tech 5.00 5.00 0.00 Not applicable Not applicable Yes
Innovation Notes)
Progress and benefits of construction projects where the raised funds were used
"□ Applicable" "√ Not applicable"
Note on changes in the said purposes of funds raised through bond issuing in the reporting period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
5. Credit rating adjustments
"□ Applicable" "√ Not applicable"
Other notes
"√Applicable" "□ Not applicable"
In the reporting period, China Lianhe Credit Rating Co., Ltd. upgraded Tongwei Co., Ltd.'s long-term
credit rating from AA+ to AAA with a stable outlook.
6. Execution and change of guarantees, repayment schedules and other repayment protection
measures in the reporting period and their impact
"□ Applicable" "√ Not applicable"
7. Note on other information about non-financial enterprise debt-financing instruments
"□ Applicable" "√ Not applicable"
(IV) Loss from the scope of consolidation in the reporting period over 10% of the net assets at the
end of the previous year
"□ Applicable" "√ Not applicable"
(V) Overdue interest-bearing debts other than bonds at the end of the reporting period
"□ Applicable" "√ Not applicable"
(VI) Impact on the rights and interest of bond investors by the Company's violations of laws,
regulations, articles of association, information disclosure management policies as well as
covenants or commitments made in the bond prospectus
"□ Applicable" "√ Not applicable"
(VII) Accounting data and financial indicators within the latest two years at the end of the reporting
period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for
Major indicators 2023 2022 Change YoY (%)
change
See the Section
Net profit net of non-recurring
13,613,305,529.94 26,554,703,512.74 -48.73 III Management
gain and loss attributable to
Discussion and
123 / 293
2023 Annual Report
shareholders of the listed Analysis
company
Current ratio 1.61 2.08 -22.60
Quick ratio 1.41 1.77 -20.34
L/A ratio (%) 55.08 49.69 + 5.39 ppts
Total debt/ EBITDA 0.69 1.42 -51.41
Interest coverage ratio 13.55 30.99 -56.28
Cash coverage ratio 39.77 80.13 -50.37
EBITDA coverage 18.58 36.43 -49.00
Repayment ratio (%) 100.00 100.00 0.00
Interest repayment ratio (%) 100.00 100.00 0.00
II. Convertible bonds
"√Applicable" "□ Not applicable"
(I). Offering of convertible bonds
"√Applicable" "□ Not applicable"
On February 21, 2022, proposals including the Proposal on Clarifying the Plan for Public Offering
A-share Convertible Bonds were approved at the 24th meeting of the 7th board of directors where matters
relating to the offering of convertible bonds were discussed and decided. On February 24, 2022, the
Company publicly issued convertible bonds of 12 billion yuan (“Tong22 Convertible Bonds”, code
110085). The amount received net of undertaking and sponsorship costs (78 million yuan) (including tax)
is 11.922 billion yuan. Sichuan Huaxin issued the Capital Verification Report [2022] No.0009 that
confirmed the raised funds were in place. The funds raised net of issuing fee will be used for the renovation
project for the manufacturing of PV silicon materials (Yongxiang New Energy's Phase II 50,000-ton High-
purity Polysilicon Project), for the manufacturing project of PV silicon materials (Inner Mongolia
Tongwei’s Phase II 50,000-ton High-purity Polysilicon Project), the 15 GW monocrystalline Rod Pulling
and Cutting Project as well as for supplementing current funds. On March 7, 2022, the registration and
custody procedures for “Tong22 Convertible Bonds” were completed in CSDC Shanghai. On March 18,
2022, “Tong22 Convertible Bonds” was listed in the bond market. According to the relevant provisions of
the Listing Rules of the Shanghai Stock Exchange and the provisions of the Prospectus for the Public
Offering of Convertible Bonds by Tongwei Co., Ltd., the Tong22 Convertible Bonds issued by the
Company can be converted into shares from September 2, 2022, with an initial conversion price of 39.27
yuan per share. Due to the 2021 annual equity distribution of the Company, the conversion price of was
adjusted to 38.36 yuan per share since May 30, 2022. In the reporting period, due to the 2022 annual equity
distribution of the Company, the conversion price of was adjusted to 35.50 yuan per share since May 31,
2023.
(II). Convertible bond holders and guarantors in the reporting period
"√Applicable" "□ Not applicable"
Name of convertible bond Tong22 Convertible Bonds
Number of holders at the period-end 40,573
Guarantor of the Company's convertible bonds None
Top ten holders of convertible bonds:
Bonds held at the end of Bond holding
Convertible bonds holders
the period (yuan) percent (%)
Tongwei Group Co., Ltd. 3,130,210,000 26.12
Haitong Securities Asset Management - CITIC Bank
- Haitong Asset Management Ruifeng Huicheng No. 809,690,000 6.76
3 Collective Asset Management Plan
ICBC - Boshi Credit Bond Investment Fund 192,892,000 1.61
Guosen Securities Co., Ltd. 184,806,000 1.54
CMB - Ruiyuan Wenjin Allocation 2Y Mixed
176,719,000 1.47
Security Investment Fund
CITIC Securities - CITIC Bank - CITIC Securities
166,551,000 1.39
Xingyun Collective Asset Management Plan No. 1
124 / 293
2023 Annual Report
Happy Life Insurance Co., Ltd. - Distribution 153,343,000 1.28
China Minsheng Bank - Anxin Wenjian Value-adding
143,295,000 1.20
Flexible Configuration Mixed Investment Fund
CITIC Securities - CITIC Bank - CITIC Bank
131,616,000 1.10
Xingyun Collective Asset Management Plan No. 52
China Pacific Life Insurance Co., Ltd. - Traditional -
126,616,000 1.06
Common Insurance Product
(III).Changes in convertible bonds in the reporting period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change
Name of
Before the change Converted to After the change
convertible bond Redemption Sell back
share capital
Tong22
11,984,730,000.00 1,038,000.00 11,983,692,000.00
Convertible Bonds
Cumulative conversion to shares in the reporting period
"√Applicable" "□ Not applicable"
Name of convertible bond Tong22 Convertible Bonds
Amount converted in the reporting period (yuan) 1,038,000.00
Shares converted in the reporting period 27,649
Accumulated shares converted 425,562
Ratio of accumulated shares converted to the total
shares issued by the Company before the 0.00945
conversion (%)
Amount that has not converted (yuan) 11,983,692,000.00
Ratio of balance convertible bonds to total
99.86410
convertible bonds issued (%)
(IV).Adjustments of conversion prices
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Name of convertible bond Tong22 Convertible Bonds
Adjustment Conversion price Description on price
Disclosure date Disclosure media
date after adjustment adjustment
The Company paid cash
China Securities Journal,
distribution of 9.12 yuan
May 30, 2022 38.36 yuan/share May 31, 2022 Shanghai Securities News,
for per 10 shares
Securities Daily, and STCN
(including tax)
The Company paid cash
China Securities Journal,
distribution of 28.58
May 31, 2023 35.50 yuan/share May 24, 2023 Shanghai Securities News,
yuan for per 10 shares
Securities Daily, and STCN
(including tax)
The latest conversion price as of the
35.50 yuan/share
end of the reporting period
(V). Liabilities, changes in creditworthiness and cash arrangements for debt repayment in the next
year
"√Applicable" "□ Not applicable"
As of the end of the reporting period, the Company's total liabilities amounted to 90.534 billion yuan,
with current liabilities of 39.340 billion yuan and non-current liabilities of 51.193 billion yuan. Of these
liabilities, bank borrowings due for repayment within one year amounted to 1.437 billion yuan, while bank
125 / 293
2023 Annual Report
borrowings repayable after more than one year totaled 28.755 billion yuan. On June 20, 2023, CCIX Credit
Rating Co., Ltd. issued the 2023 Tracking Rating Report on the Public Issuance of Tongwei Co., Ltd.'s
Convertible Bonds (A-share) in 2023, maintaining the Company's corporate credit rating at AA+ with a
stable outlook. The credit rating for this bond issuance was also maintained at AA+.
The Company has designated specific departments and personnel to monitor repayment arrangements,
ensuring the timely payment of both principal and interest.
(VI). Note on other information about the convertible bonds
"√Applicable" "□ Not applicable"
As of the end of the reporting period, the raised funds intended for relevant projects were fully utilized.
Given that the balance of the dedicated account for raised funds is less than 5% of the net raised funds, in
compliance with the relevant provisions of the Shanghai Stock Exchange Management Measures on Funds
Raised by Listed Companies, the Company has completed the necessary approval procedures to transfer
the remaining balance of dedicated account for permanent supplementation of working capital. The
deregistration procedures for the said account have been duly completed. For detailed information, please
refer to the Special Report on the Storage and Actual Use of Raised Funds in 2022 disclosed by the
Company on April 25, 2023, and the Announcement on the Deregistration of Dedicated Account for Raised
Funds (announcement number: 2023-049) disclosed by the Company on May 18, 2023, on the website of
the Shanghai Stock Exchange (http://www.sse.com.cn).
Given the business development needs of the Company, after amicable negotiations, the Company
and CCIX decided to terminate the Credit Rating Contract as of August 21, 2023. As such, CCIX will no
longer conduct annual tracking ratings for the Tong22 Convertible Bonds. On the same day, the Company
entered into a service agreement with China Lianhe Credit Rating Co., Ltd., appointing them to conduct
tracking credit ratings for Tong22 Convertible Bonds. Further details can be found in the Announcement
on Changing the Credit Rating Agency for Tong22 Convertible Bonds (announcement number: 2023-070)
released by the Company on the Shanghai Stock Exchange website (http://www.sse.com.cn).
126 / 293
2023 Annual Report
Section X Financial Report
I. Auditor's Report
"√Applicable" "□ Not applicable"
The annual financial report of the Company has been audited by Li Wulin, Tang Fangmo and Xia
Hongbo, accountants from Sichuan Huaxin, who have expressed an unqualified opinion.
Auditor's Report
Sichuan Huaxin Audit (2024) No.0039
To all the shareholders of Tongwei Co., Ltd.:
I. Audit Opinion
We have audited the financial statements of Tongwei Co., Ltd. (“Tongwei”), which comprise the
consolidated balance sheet and the parent balance sheet as at 31 December 2023, the consolidated income
statement and parent income statement, the consolidated cash flow statement and parent cash flow
statement, consolidated and parent statements of owner's equity, and notes to the said financial statements
for the year 2023.
In our opinion, the attached financial statements prepared in accordance with Accounting Standards
for Business Enterprises in all material aspects, give a true and fair view of the consolidated and parent
financial positions as at 31 December 2023, and of the consolidated and parent operation performance and
cash flows for the year 2023.
II. Basis for Audit Opinion
We conducted our audit in accordance with Practicing Standards on Chinese Certified Public
Accountants (“PSCCPA”). Our responsibilities under those standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report. In accordance with China
Code of Ethics for Certified Public Accountants, we are independent of Tongwei and have performed other
responsibilities respect to occupational ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters (KAMs) are those matters that, in the auditor’s professional judgment, are of most
significance in the audit of the financial statements of the current period. Communicating KAM is in the
context of us having formed an opinion on the financial statements as a whole; and we do not issue separate
audit opinions on these matters. We have determined the following key audit matters to communicate in
our report:
(I) Revenue recognition
Please refer to the “Operating revenue and operating cost” and “segments” in the Notes to Financial
Statements.
Reasons for being KAMs Measures taken in the audit and conclusions
1. understand and test whether internal controls relating to sale
and collection are effectively designed and operated and
The consolidated operating revenue
evaluate the reasonableness of basis for and timing of revenue
of Tongwei was 139.104 billion yuan
recognition.
for the year 2023, including 102.828
2. perform the analysis process on sales revenue, gross profit of
billion yuan from the operating
sales and receivables by industry, including period-over-period
activities of PV business and 35.489
comparison and product category comparison, to evaluate the
billion yuan from the operating
reasonableness of relevant changes.
activities of agriculture and animal
3. for key customers, check their contracts, purchase orders,
husbandry business. Operating
delivery notes, receipt notes and other documents, and obtain
revenue is a key performance
written confirmations on transaction amounts and closing
indicator of Tongwei, the inherent
balances for these customers to understand that these
risk that the management
transactions are true, complete and accurate; for other
manipulated the revenue recognition
customers, perform a sampling check on contracts, purchase
in order to reach a certain target or
orders, delivery notes, shipping notes, payment notes, receipt
expectation exists, therefore we
notes and other documents to verify the amount of sales
identify revenue recognition as a key
revenue is true, complete and accurate.
audit matter.
4. according to the unit price set forth in the Power Purchase
Agreement and power generation subsidy documents, and the
127 / 293
2023 Annual Report
settled electricity, re-calculate and check the revenue from PV
generation; and obtain written confirmation from State Grid for
the settled electricity and settled price for desulfurization
electricity.
5. check shipment and custom declaration data relating to
exports and get written confirmations on balances of advances
from customers to verify the authentication, completeness and
accuracy of export-sale revenue.
6. search business registration documents of key customers and
talk with relevant staff of Tongwei to check whether these
customers are related parties of Tongwei.
7. perform a cut off test on sales revenue recognition before and
on the balance sheet date, look for the receipt note dates and
whether there are high-value returns, to verify whether the
revenue is recorded into an appropriate period.
8. focus on the compliance and appropriateness of disclosure of
operating revenue in the notes to financial statements.
The evidence obtained through the execution of the above audit
procedures supports the management's assessment of revenue
recognition at Tongwei Co., Ltd.
(II) Impairment of long-term assets
Please refer to “long-term equity investments, “fixed assets”, “construction in progress”, “right-of-use
assets”, “goodwill”, “asset impairment loss” and “others” in the Notes to Financial Statements.
Reasons for being KAMs Measures taken in the audit and conclusions
1. understand and test whether the management’s design and
operation of internal control over the impairment testing of
long-term assets are effective;
On December 31, 2023, the
2. understand and assess whether the management's
aggregate carrying value of long-
identification process of impairment indicators for long-term
term equity investments, fixed assets,
assets other than goodwill is reasonable;
construction in progress, right-of-use
3. through the work of valuation professionals, to understand
assets, and goodwill in the
and evaluate the competence, professionalism, and objectivity
consolidated financial statements
of the independent appraisers;
amounted to 87.932 billion yuan. An
4. evaluate the types of valuation, valuation methods, the
impairment loss of 4.923 billion yuan
reasonableness of the management's judgment of cash-
was recognized on long-term assets
generating units, and assess the reasonableness of key
for the year 2023.
assumptions such as discount rates and profit margins used in
Given the significant impairment
impairment assessment;
amount of long-term assets and the
5. perform sensitivity analysis on discount rates, operational
complex testing process involving
and financial assumptions in the impairment testing model, and
the management's estimates of future
analyze and evaluate the potential impact on impairment
market and economic conditions as
amounts when these parameters and assumptions vary within
well as the selection of key
reasonable ranges;
parameters such as discount rates and
6. focus on the compliance and appropriateness of disclosure of
profit margins, we have identified the
impairment of long-term assets in the notes to financial
impairment of long-term assets as a
statements.
key audit matter.
The evidence obtained through the execution of the above audit
procedures supports the management's assessment of
impairment of long-term assets at Tongwei Co., Ltd.
IV. Other Information
The management of the Company is responsible for other information, which includes all information
contained in the 2023 annual report of the Company, but excludes financial statements and our auditor's
report.
Our opinion on financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
Our responsibility is to express an opinion on these financial statements based on our audit. In doing
so, we considered whether there is any material inconsistency between other information and the financial
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2023 Annual Report
statements or any circumstance we have obtained in the audit or whether there seems to have any material
misstatement.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and the Governance Body for the Financial Statements
The management of the Company is responsible for the preparation of the financial statements that
give a true and fair view in accordance with Accounting Standards for Business Enterprises, and for design,
execution and maintenance of such internal control as it determines is necessary to enable financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company's
ability as a going-concern, disclosing matters related to going-concern (if applicable), and using the going-
concern basis, unless the management either intends to liquidate the Company, or to cease its operation or
has no realistic alternative but to do so.
The Governance Body is responsible for overseeing the Company's financial reporting process.
VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with Enterprise Accounting Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
As part of an audit in accordance with Enterprise Accounting Standards, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management's use of the going concern basis of
accounting. And also, based on obtained audit evidences, we conclude on whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to not express an unqualified opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6) Obtain sufficient appropriate evidence about the financial information of entity or business
activities of Tongwei on which to base the auditor’s opinion on the financial statements. We are responsible
for the direction, supervision, and performance of the group audit engagement and completely for the
auditor's opinion.
We communicate with the governance body regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that the auditor identifies during the audit.
We also provide the governance body with a statement that we have complied with relevant ethical
requirements regarding independence, and communicates with them all relationships and other matters
that may reasonably be thought to bear our independence, and where applicable, related safeguards.
From the matters communicated with the governance body, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in the auditor’s report unless law or regulation precludes public
129 / 293
2023 Annual Report
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in the auditor’s report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Sichuan Huaxin (Group) CPA China CPA: Li Wulin
(Special General Partnership) (Project Partner)
Chengdu, China China CPA: Tang Fangmo
China CPA: Xia Hongbo
April 28, 2024
130 / 293
2023 Annual Report
II. Financial Statements
Consolidated balance sheet
December 31, 2023
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
Item Notes December 31, 2023 December 31, 2022
Current assets:
Cash at bank and on hand 19,418,437,782.89 36,841,572,130.01
Settlement provisions
Lending to banks and other
financial institutions
Held-for-trading financial assets 10,064,061,762.38 4,298,524,475.70
Derivative financial assets 5,842,475.20
Notes receivable 847,559,026.34 2,450,913,663.89
Accounts receivable 6,987,853,078.62 4,501,362,630.14
Receivables financing 13,328,061,144.72 13,066,496,368.98
Prepayments 1,346,330,032.26 1,487,172,992.72
Premium receivable
Reinsurance receivable
Reinsurance contract reserve
receivable
Other receivables 488,199,686.93 477,514,347.63
Including: Interest receivable
Dividend receivable
Buy-back of financial assets
Inventories 7,788,385,427.12 11,002,649,108.38
Contract assets 557,823,913.04 597,931,195.59
Assets held for sale
Non-current assets due within one
year
Other current assets 2,411,612,696.98 786,407,734.06
Total current assets 63,244,167,026.48 75,510,544,647.10
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 377,318,071.06 390,587,150.21
Other equity investments 158,611,959.79 154,196,557.28
Other non-current financial assets 6,271,248.25 3,146,248.25
Investment properties 103,085,073.79 107,712,227.79
Fixed assets 68,269,964,227.96 53,291,968,869.20
Construction in progress 14,816,515,872.96 3,997,396,999.92
Productive biological assets 1,806,503.02 9,069,395.61
Oil and gas assets
Right-of-use assets 3,990,842,907.29 4,063,421,131.88
Intangible assets 4,721,306,525.81 2,455,828,500.38
R&D cost
Goodwill 477,145,263.78 603,006,493.02
Deferred expenses 280,316,186.83 359,564,900.07
Deferred tax assets 2,830,375,286.03 1,924,960,856.49
Other non-current assets 5,085,435,306.61 2,703,584,777.25
Total non-current assets 101,118,994,433.18 70,064,444,107.35
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2023 Annual Report
Total assets 164,363,161,459.66 145,574,988,754.45
Current liabilities:
Short-term borrowings 214,016,118.59 87,767,124.22
Borrowings from central bank
Borrowings from banks and other
financial institutions
Held-for-trading financial liabilities 64,351,114.48
Derivative financial liabilities 4,844,001.27
Notes payable 10,173,603,651.18 8,851,423,365.95
Accounts payable 17,375,810,492.74 11,018,161,537.30
Advances from customers 40,457,762.17 36,467,894.64
Contract liabilities 3,841,372,717.47 5,405,872,108.61
Sale of financial assets to be
repurchased
Inward deposits
Payments from sale and purchase
of securities on behalf of customers
Payments from underwriting
securities on behalf of customers
Employee benefits payable 2,758,492,594.40 3,141,064,588.92
Taxes payable 645,414,576.79 2,974,081,003.57
Other payables 1,962,529,948.17 2,142,680,307.16
Including: Interest payable
Dividend payable
Service charge and commission
payable
Reinsurance receivable
Liabilities held for sale
Non-current liabilities due within
2,023,498,153.97 2,212,098,569.45
one year
Other current liabilities 300,433,959.06 423,380,299.96
Total current liabilities 39,340,473,975.81 36,357,347,914.26
Non-current liabilities:
Reinsurance contract reserve
Long-term borrowings 28,755,180,069.46 15,409,335,995.67
Bonds payable 11,175,571,706.57 10,276,944,561.67
Including: Preference share
Perpetual bond
Lease liabilities 3,215,951,423.18 2,906,711,682.49
Long-term payables 409,160,390.38 974,391,127.03
Long-term employee benefits
4,085,174,933.73 3,805,815,900.20
payable
Estimated liabilities 559,416,370.93 177,993,077.06
Deferred income 960,698,361.51 867,530,196.50
Deferred tax liability 2,032,149,741.68 1,557,412,559.35
Other non-current liabilities
Total non-current liabilities 51,193,302,997.44 35,976,135,099.97
Total liabilities 90,533,776,973.25 72,333,483,014.23
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,973,746.00 4,501,946,097.00
Other equity instruments 1,964,915,462.95 1,965,085,659.43
Including: Preference share
Perpetual bond
Capital reserve 16,135,933,446.90 16,144,302,399.09
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2023 Annual Report
Less: Treasury shares
Other comprehensive income -135,453,858.15 -108,859,803.29
Special reserve 97,203,438.14 33,751,973.14
Surplus reserve 4,303,947,104.83 2,407,468,232.84
General risk reserve
Undistributed profit 34,660,319,189.03 35,849,514,547.42
Total equity attributable to owners
61,528,838,529.70 60,793,209,105.63
or shareholders of parent company
Minority interest 12,300,545,956.71 12,448,296,634.59
Total owners’ equity (or
73,829,384,486.41 73,241,505,740.22
shareholders' equity)
Total liabilities and owners’ equity
164,363,161,459.66 145,574,988,754.45
(or shareholders' equity)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent balance sheet
December 31, 2023
Prepared by: Tongwei Co., Ltd.
Unit: Yuan Currency: CNY
Item Notes December 31, 2023 December 31, 2022
Current assets:
Cash at bank and on hand 17,732,273,408.97 34,996,954,215.09
Held-for-trading financial assets 10,064,061,762.38 4,290,735,647.46
Derivative financial assets
Notes receivable
Accounts receivable 29,256,616.68
Receivables financing 319,324,024.39 36,154,999.85
Prepayments 14,436,602.23 4,363,885.53
Other receivables 34,016,452,464.35 22,391,469,716.10
Including: Interest receivable
Dividend receivable
Inventories 53,715,887.88 14,343,230.10
Contract assets
Assets held for sale
Non-current assets due within one
year
Other current assets 47,825.36 338,226.78
Total current assets 62,229,568,592.24 61,734,359,920.91
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 3,187,749,123.45 4,441,414,203.45
Long-term equity investments 26,351,615,498.89 21,181,430,718.04
Other equity investments 158,611,959.79 154,196,557.28
Other non-current financial assets
Investment properties 33,461,812.80 35,202,472.92
Fixed assets 43,265,679.54 41,873,569.27
Construction in progress 14,656,718.38 9,222,801.67
Productive biological assets
Oil and gas assets
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2023 Annual Report
Right-of-use assets 40,622,011.65 95,863,377.40
Intangible assets 16,966,400.22 9,611,894.35
R&D cost
Goodwill
Deferred expenses 8,957,345.80 9,951,422.32
Deferred tax assets 11,342,167.02 25,104,199.32
Other non-current assets 237,800.30 629,339.86
Total non-current assets 29,867,486,517.84 26,004,500,555.88
Total assets 92,097,055,110.08 87,738,860,476.79
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 493,269,837.95 100,599,628.21
Accounts payable 86,108,011.08 2,668,604.48
Advances from customers
Contract liabilities 229,005,221.01
Employee benefits payable 186,043,453.22 134,030,997.42
Taxes payable 21,344,473.32 11,295,059.26
Other payables 21,316,578,473.04 30,293,482,060.86
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within
228,151,955.54 686,154,965.70
one year
Other current liabilities 29,764,439.15
Total current liabilities 22,590,265,864.31 31,228,231,315.93
Non-current liabilities:
Long-term borrowings 12,647,340,000.00 6,675,680,000.00
Bonds payable 11,175,571,706.57 10,276,944,561.67
Including: Preference share
Perpetual bond
Lease liabilities 42,192,075.19 97,681,720.48
Long-term payables 875,898,885.36 875,898,885.36
Long-term employee benefits
381,847,429.39 328,435,130.02
payable
Estimated liabilities
Deferred income
Deferred tax liability 48,861,999.07 23,965,844.35
Other non-current liabilities
Total non-current liabilities 25,171,712,095.58 18,278,606,141.88
Total liabilities 47,761,977,959.89 49,506,837,457.81
Owners’ equity (or shareholders' equity)
Paid-up capital (or share capital) 4,501,973,746.00 4,501,946,097.00
Other equity instruments 1,964,915,462.95 1,965,085,659.43
Including: Preference share
Perpetual bond
Capital reserve 17,098,677,750.95 17,097,876,701.86
Less: Treasury shares
Other comprehensive income 11,137,961.60 6,914,433.08
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2023 Annual Report
Special reserve
Surplus reserve 4,303,947,104.83 2,407,468,232.84
Undistributed profit 16,454,425,123.86 12,252,731,894.77
Total owners’ equity (or
44,335,077,150.19 38,232,023,018.98
shareholders' equity)
Total liabilities and owners’ equity
92,097,055,110.08 87,738,860,476.79
(or shareholders' equity)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Consolidated Profit Statement
Jan to Dec, 2023
Unit: Yuan Currency: CNY
Item Notes 2023 2022
I. Total operating revenue 139,104,062,084.52 142,422,517,994.99
Including: Operating revenue 139,104,062,084.52 142,422,517,994.99
Interest income
Earned premium
Service charge and commission income
II. Total operating cost 111,701,279,265.18 100,427,612,658.05
Including: Operating cost 102,327,943,787.54 88,059,961,179.23
Interest expense
Service charge and commission expense
Cash surrender value
Net claims paid
Net appropriation of insurance liability
reserve
Policy dividend expense
Reinsurance expense
Tax and surcharge 745,456,147.29 911,375,125.67
Sales expense 2,130,041,158.64 1,434,770,892.87
Management expense 4,727,505,222.51 7,867,914,704.37
R&D cost 1,189,482,199.88 1,464,443,543.84
Financial expense 580,850,749.32 689,147,212.07
Including: Interest expense 1,504,553,864.95 1,184,822,793.36
Interest income 954,235,676.99 458,574,423.96
Add: Other income 1,233,788,381.77 397,490,494.89
Investment gain or loss (“-” for loss) -177,141,496.24 -421,003,980.91
Including: Gains or losses from
investments into associates and joint -34,954,050.97 -62,827,359.84
ventures
Gains from de-recognition of financial
assets measured at amortized cost
Exchange gain or loss (“-” for loss)
Net exposure hedging gain or loss (“-” for
loss)
Gain or loss from change in fair value (“-”
169,783,931.94 -36,444,307.36
for loss)
Credit impairment loss (“-” for loss) -130,023,662.26 -135,768,734.15
Asset impairment loss (“-” for loss) -6,235,601,572.09 -2,211,875,357.07
Gain or loss from disposal of assets (“-”
27,254,710.31 -13,438,161.21
for loss)
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2023 Annual Report
III. Operating profit (“-” for loss) 22,290,843,112.77 39,573,865,291.13
Add: Non-operating revenue 49,082,069.43 31,419,391.34
Less: Non-operating expense 288,305,113.83 1,266,474,529.33
IV: Total profit (“-” for loss) 22,051,620,068.37 38,338,810,153.14
Less: Income tax expense 3,805,456,222.90 5,958,335,362.51
V. Net profit (“-” for net loss) 18,246,163,845.47 32,380,474,790.63
(I) By continuation
1. Going Concern profit (“-” for net loss) 18,246,163,845.47 32,380,474,790.63
2. Discontinuation profit (“-” for net loss)
(II) By ownership attribution
1. Net profit attributable to shareholders of
13,573,900,132.37 25,733,777,019.25
the parent company (“-” for net loss)
2. Gain or loss to minority shareholders
4,672,263,713.10 6,646,697,771.38
(“-” for net loss)
VI. Other comprehensive income after tax -26,707,221.48 -25,773,410.24
(I) Other comprehensive income after tax
attributable to owners of the parent -26,594,054.86 -26,552,399.33
company
1. Other comprehensive income that
4,415,402.51 644,958.57
cannot be reclassified into profit or loss
(1) Change from re-measurement of
defined benefit plan
(2) Other comprehensive income that
cannot be converted to profit or loss under
equity method
(3) Change in fair value of other equity
4,415,402.51 644,958.57
investments
(4) Change in fair value of the Company's
own credit risk
2. Other comprehensive income that will
-31,009,457.37 -27,197,357.90
be reclassified into profit or loss
(1) Other comprehensive income that can
be converted to profit or loss under equity -191,873.99 -1,120,566.26
method
(2) Change in fair value of other debt
investments
(3) Amount recorded into other
comprehensive income due to
reclassification of financial assets
(4) Reserve for credit impairment of other
debt investments
(5) Cash flow hedge reserve -2,843,418.59
(6) Foreign currency translation -27,974,164.79 -26,076,791.64
(7) Others
(II) Other comprehensive income after tax
-113,166.62 778,989.09
attributable to minority shareholders
VII. Total other comprehensive income 18,219,456,623.99 32,354,701,380.39
(I) Total other comprehensive income
attributable to owners of the parent 13,547,306,077.51 25,707,224,619.92
company
(II) Total other comprehensive income
4,672,150,546.48 6,647,476,760.47
attributable to minority shareholders
136 / 293
2023 Annual Report
VIII. Earnings per share:
(I) Basic earnings per share (yuan/share) 3.0151 5.7166
(II) Diluted earnings per share
2.8737 5.4905
(yuan/share)
The net income realized by the acquired business before business combinations under common control is
0 yuan, the net income realized by the acquired business in the previous period is: 0 yuan.
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent profit statement
Jan to Dec, 2023
Unit: Yuan Currency: CNY
Item Notes 2023 2022
I. Operating revenue 653,574,108.83 3,367,210,659.32
Less: Operating cost 629,930,148.57 2,981,184,608.14
Tax and surcharge 6,717,247.71 8,347,289.08
Sales expense 89,857,444.85 95,730,597.83
Management expense 321,792,191.28 590,606,402.95
R&D cost 602,292.32 129,328,520.57
Financial expense 393,266,543.85 308,179,111.19
Including: Interest expense 1,635,227,250.57 1,052,683,104.01
Interest income 1,268,326,374.19 851,330,246.98
Add: Other income 4,111,025.36 18,601,098.59
Investment gain or loss (“-” for loss) 19,753,637,612.07 10,806,401,329.43
Including: Gains or losses from investments
-6,751,271.86 1,006,754.59
into associates and joint ventures
Gains from de-recognition of financial assets
measured at amortized cost
Net exposure hedging gain or loss (“-” for
loss)
Gain or loss from change in fair value (“-” for
170,020,238.47 30,735,647.46
loss)
Credit impairment loss (“-” for loss) -15,604,887.24 -56,886,334.13
Asset impairment loss (“-” for loss) -120,130,962.36 -86,073,100.00
Gain or loss from disposal of assets (“-” for
-301,265.25 3,953,723.06
loss)
II. Operating profit (“-” for loss) 19,003,140,001.30 9,970,566,493.97
Add: Non-operating revenue 3,145,007.14 3,981,779.45
Less: Non-operating expense 2,842,631.10 50,998,355.60
III. Total profit (“-” for loss) 19,003,442,377.34 9,923,549,917.82
Less: Income tax expense 38,653,657.49 -1,629,364.85
IV. Net profit (“-” for net loss) 18,964,788,719.85 9,925,179,282.67
(I) Net going concern profit (“-” for net loss) 18,964,788,719.85 9,925,179,282.67
(II) Net discontinuation profit (“-” for net
loss)
V. Other comprehensive income after tax 4,223,528.52 -208,452.39
(I) Other comprehensive income that cannot
4,415,402.51 644,958.57
be reclassified into profit or loss
1. Change from re-measurement of defined
benefit plan
2. Other comprehensive income that cannot
be converted to profit or loss under equity
method
3. Change in fair value of other equity 4,415,402.51 644,958.57
137 / 293
2023 Annual Report
investments
4. Change in fair value of the Company's own
credit risk
(II) Other comprehensive income that will be
-191,873.99 -853,410.96
reclassified into profit or loss
1. Other comprehensive income that can be
converted to profit or loss under equity -191,873.99 -853,410.96
method
2. Change in fair value of other debt
investments
3. Amount recorded into other comprehensive
income due to reclassification of financial
assets
4. Reserve for credit impairment of other debt
investments
5. Cash flow hedge reserve
6. Foreign currency translation
7. Others
VI. Total comprehensive income 18,969,012,248.37 9,924,970,830.28
VII. Earnings per share:
(I) Basic earnings per share (yuan/share)
(II) Diluted earnings per share (yuan/share)
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Consolidated cash flow statement
Jan to Dec, 2023
Unit: Yuan Currency: CNY
Item Notes 2023 2022
I. Cash flow generated from operating activities:
Cash received from sales of goods and
124,243,805,359.37 129,778,869,793.04
rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from central
bank
Net increase in borrowings from other
financial institutions
Cash received from premium receipts for
original insurance contracts
Net cash received from re-insurance
service
Net increase in deposits and investments
from policyholders
Cash received from interest, service
charge and commission
Net increase in borrowings from others
Net increase in repo service
Net cash received from sale and
purchase of securities on behalf of
customers
Tax refunds received 1,176,039,376.34 3,233,928,616.99
Other cash received relating to operating
2,780,346,469.24 1,667,360,720.28
activities
Subtotal of cash inflows from operating 128,200,191,204.95 134,680,159,130.31
138 / 293
2023 Annual Report
activities
Cash paid for purchase of goods and
74,223,729,677.48 72,510,726,290.58
services
Net increase in customer loans and
advances
Net increase in deposits in central bank
and other banks
Cash paid for claims of original
insurance contracts
Net increase in lending to other banks
Cash paid for interest, service charge
and commission
Cash paid for policy dividend
Cash paid to and for employees 8,614,626,917.78 5,677,680,301.33
Taxes paid 11,956,596,665.24 11,250,865,083.20
Other cash paid relating to operating
2,725,933,973.28 1,422,977,823.50
activities
Subtotal of cash outflows from operating
97,520,887,233.78 90,862,249,498.61
activities
Net cash flow generated from operating
30,679,303,971.17 43,817,909,631.70
activities
II. Cash flow generated from investing activities:
Cash received due to recovery of
32,195,284,626.69 15,351,122,402.01
investments
Cash received from investment income 399,222,152.74 90,168,401.31
Net cash recovered from disposal of
fixed assets, intangible assets and other 96,836,605.63 32,745,081.47
long-term assets
Net cash received from disposal of
16,835,710.86
subsidiaries and other operations
Other cash received relating to investing
1,171,988,162.80 702,279,499.81
activities
Subtotal of cash inflows from investing
33,880,167,258.72 16,176,315,384.60
activities
Cash paid for acquisition or construction
of fixed assets, intangible assets and 36,452,219,440.59 15,217,915,448.02
other long-term assets
Cash paid for investments 41,302,360,777.74 21,257,542,308.85
Net increase in pledge loans
Net cash paid by subsidiaries and other
operations
Other cash paid relating to investing
1,164,604,194.30 507,009,192.23
activities
Subtotal of cash outflows from investing
78,919,184,412.63 36,982,466,949.10
activities
Net cash flow generated from investing
-45,039,017,153.91 -20,806,151,564.50
activities
III. Cash flow generated from financing activities:
Cash received from investors 1,092,000,000.00 2,032,310,000.00
Including: Cash received by subsidiaries
1,092,000,000.00 2,032,310,000.00
from minority shareholders
Cash received from borrowings 23,764,519,864.96 24,315,537,980.34
Other cash received relating to financing
6,809,487.52 457,955,650.47
activities
Subtotal of cash inflows from financing
24,863,329,352.48 26,805,803,630.81
activities
139 / 293
2023 Annual Report
Cash paid for debt repayment 9,762,412,196.60 9,946,780,729.20
Cash paid for dividend or profit
19,705,872,472.95 5,058,764,723.29
distribution, or interest payment
Including: Dividend and profit paid by
5,888,621,400.23 352,297,232.96
subsidiaries to minority shareholders
Other cash paid relating to financing
1,860,186,730.49 2,553,984,080.73
activities
Subtotal of cash outflows from financing
31,328,471,400.04 17,559,529,533.22
activities
Net cash flow generated from financing
-6,465,142,047.56 9,246,274,097.59
activities
IV. Effect of exchange rate changes on
-365,522.04 32,930,746.69
cash and cash equivalents
V. Net increase in cash and cash
-20,825,220,752.34 32,290,962,911.48
equivalents
Add: Opening cash and cash equivalents 35,194,041,631.11 2,903,078,719.63
VI. Closing cash and cash equivalents 14,368,820,878.77 35,194,041,631.11
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
Parent cash flow statement
Jan to Dec, 2023
Unit: Yuan Currency: CNY
Item Notes 2023 2022
I. Cash flow generated from operating activities:
Cash received from sales of goods and
711,054,462.05 3,340,807,926.80
rendering of services
Tax refunds received 55,472.12
Other cash received relating to operating
669,445,703.89 503,273,895.96
activities
Subtotal of cash inflows from operating
1,380,555,638.06 3,844,081,822.76
activities
Cash paid for purchase of goods and
120,576,649.07 2,992,277,754.28
services
Cash paid to and for employees 205,476,441.79 278,171,429.61
Taxes paid 29,562,022.95 10,497,939.50
Other cash paid relating to operating
152,702,079.89 223,948,983.50
activities
Subtotal of cash outflows from operating
508,317,193.70 3,504,896,106.89
activities
Net cash flow generated from operating
872,238,444.36 339,185,715.87
activities
II. Cash flow generated from investing activities:
Cash received due to recovery of
32,974,076,550.88 14,539,599,013.42
investments
Cash received from investment income 20,181,222,152.74 10,871,381,001.31
Net cash recovered from disposal of
fixed assets, intangible assets and other 838,542.46 13,541,176.21
long-term assets
Net cash received from disposal of
subsidiaries and other operations
Other cash received relating to investing
activities
Subtotal of cash inflows from investing
53,156,137,246.08 25,424,521,190.94
activities
Cash paid for acquisition or construction 30,420,563.93 21,513,848.16
140 / 293
2023 Annual Report
of fixed assets, intangible assets and
other long-term assets
Cash paid for investments 46,998,235,777.74 23,556,047,295.90
Net cash paid by subsidiaries and other
operations
Other cash paid relating to investing
350,000.00 855,177.47
activities
Subtotal of cash outflows from investing
47,029,006,341.67 23,578,416,321.53
activities
Net cash flow generated from investing
6,127,130,904.41 1,846,104,869.41
activities
III. Cash flow generated from financing activities:
Cash received from investors
Cash received from borrowings 11,360,000,000.00 19,835,576,945.97
Other cash received relating to financing
4,499,113,013.98 23,008,374,092.93
activities
Subtotal of cash inflows from financing
15,859,113,013.98 42,843,951,038.90
activities
Cash paid for debt repayment 5,372,198,000.00 6,217,188,719.97
Cash paid for dividend or profit
13,335,600,331.04 4,334,627,138.79
distribution, or interest payment
Other cash paid relating to financing
24,823,732,958.22 3,065,756,083.26
activities
Subtotal of cash outflows from financing
43,531,531,289.26 13,617,571,942.02
activities
Net cash flow generated from financing
-27,672,418,275.28 29,226,379,096.88
activities
IV. Effect of exchange rate changes on
1,076,272.34 299,949.33
cash and cash equivalents
V. Net increase in cash and cash
-20,671,972,654.17 31,411,969,631.49
equivalents
Add: Opening cash and cash equivalents 33,371,775,965.10 1,959,806,333.61
VI. Closing cash and cash equivalents 12,699,803,310.93 33,371,775,965.10
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin
Head of Accounting Department: Gan Lu
141 / 293
2023 Annual Report
Consolidated statement of owner's equity
Jan to Dec, 2023
Unit: Yuan Currency: CNY
2023
Equity attributable to owners of parent company
Other equity instruments Less:
Item Other General
Paid-up capital (or Prefe Perpe Treas Oth Minority interest Total owner’s equity
Capital reserve comprehensive Special reserve Surplus reserve risk Undistributed profit Sub-total
share capital) rence tual Others ury ers
income reserve
share bond shares
I. Closing balance of the previous year 4,501,946,097.00 1,965,085,659.43 16,144,302,399.09 -108,859,803.29 33,751,973.14 2,407,355,585.45 35,853,681,478.39 60,797,263,389.21 12,447,970,426.55 73,245,233,815.76
Add: Changes in accounting policies 112,647.39 -4,166,930.97 -4,054,283.58 326,208.04 -3,728,075.54
Correction of previous errors
Others
II. Opening balance of the current year 4,501,946,097.00 1,965,085,659.43 16,144,302,399.09 -108,859,803.29 33,751,973.14 2,407,468,232.84 35,849,514,547.42 60,793,209,105.63 12,448,296,634.59 73,241,505,740.22
III. Change in current period (“-” for
27,649.00 -170,196.48 -8,368,952.19 -26,594,054.86 63,451,465.00 1,896,478,871.99 -1,189,195,358.39 735,629,424.07 -147,750,677.88 587,878,746.19
decrease)
(I) Total comprehensive income -26,594,054.86 13,573,900,132.37 13,547,306,077.51 4,672,150,546.48 18,219,456,623.99
(II) Capital invested and decreased by
27,649.00 -170,196.48 1,042,242.42 899,694.94 1,092,000,000.00 1,092,899,694.94
owners
1. Common shares invested by owners 1,092,000,000.00 1,092,000,000.00
2. Capital invested by holders of other
27,649.00 -170,196.48 1,042,242.42 899,694.94 899,694.94
equity instruments
3. Amount of share payment recorded
into owner's equity
4. Others
(III) Profit distribution 1,896,478,871.99 -14,763,095,490.76 -12,866,616,618.77 -5,888,621,400.23 -18,755,238,019.00
1. Withdrawal from surplus reserve 1,896,478,871.99 -1,896,478,871.99
2. Withdrawal from general risk
reserve
3. Distribution to owners (or
-12,866,616,618.77 -12,866,616,618.77 -5,888,621,400.23 -18,755,238,019.00
shareholders)
4. Others
(IV) Internal carryover of owner's
equity
1. Capital reserve converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve 63,451,465.00 63,451,465.00 5,232,836.90 68,684,301.90
1. Withdrawal in current period 226,857,050.61 226,857,050.61 37,847,676.48 264,704,727.09
2. Use in current period 163,405,585.61 163,405,585.61 32,614,839.58 196,020,425.19
(VI) Others -9,411,194.61 -9,411,194.61 -28,512,661.03 -37,923,855.64
IV. Closing balance of the current
4,501,973,746.00 1,964,915,462.95 16,135,933,446.90 -135,453,858.15 97,203,438.14 4,303,947,104.83 34,660,319,189.03 61,528,838,529.70 12,300,545,956.71 73,829,384,486.41
period
Item 2022
142 / 293
2023 Annual Report
Equity attributable to owners of parent company
Other equity instruments Less: Other General Total owner’s
Paid-up capital Undistributed Other Minority interest
Preferenc Perpetua Capital reserve Treasury comprehensive Special reserve Surplus reserve risk Sub-total equity
(or share capital) Others profit s
e share l bond shares income reserve
I. Closing balance of the previous 16,107,859,721.4
4,501,548,184.00 -82,307,403.96 15,918,034.03 1,414,948,005.57 15,544,604,417.32 37,502,570,958.36 4,154,029,179.80 41,656,600,138.16
year 0
Add: Changes in accounting policies 2,299.00 -330,937,017.07 -330,934,718.07 -35,177,500.46 -366,112,218.53
Correction of previous errors
Others
II. Opening balance of the current 16,107,859,721.4
4,501,548,184.00 -82,307,403.96 15,918,034.03 1,414,950,304.57 15,213,667,400.25 37,171,636,240.29 4,118,851,679.34 41,290,487,919.63
year 0
III. Change in current period (“-” for
397,913.00 1,965,085,659.43 36,442,677.69 -26,552,399.33 17,833,939.11 992,517,928.27 20,635,847,147.17 23,621,572,865.34 8,329,444,955.25 31,951,017,820.59
decrease)
(I) Total comprehensive income -26,552,399.33 25,733,777,019.25 25,707,224,619.92 6,647,476,760.47 32,354,701,380.39
(II) Capital invested and decreased by
397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35 2,032,310,000.00 4,012,844,068.35
owners
1. Common shares invested by
2,032,310,000.00 2,032,310,000.00
owners
2. Capital invested by holders of other
397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35 1,980,534,068.35
equity instruments
3. Amount of share payment recorded
into owner's equity
4. Others
(III) Profit distribution 992,517,928.27 -5,097,929,872.08 -4,105,411,943.81 -352,297,232.96 -4,457,709,176.77
1. Withdrawal from surplus reserve 992,517,928.27 -992,517,928.27
2. Withdrawal from general risk
-4,105,411,943.81 -4,105,411,943.81 -352,297,232.96 -4,457,709,176.77
reserve
3. Distribution to owners (or
shareholders)
4. Others
(IV) Internal carryover of owner's
equity
1. Capital reserve converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve 17,833,939.11 17,833,939.11 8,458,633.63 26,292,572.74
1. Withdrawal in the current period 140,169,711.16 24,864,389.98 165,034,101.14
140,169,711.16
2. Use in the current period 122,335,772.05 16,405,756.35 138,741,528.40
122,335,772.05
(VI) Others 21,392,181.77 21,392,181.77 -6,503,205.89 14,888,975.88
IV. Closing balance of the current
4,501,946,097.00 1,965,085,659.43 16,144,302,399.09 -108,859,803.29 33,751,973.14 2,407,468,232.84 35,849,514,547.42 60,793,209,105.63 12,448,296,634.59 73,241,505,740.22
period
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
143 / 293
2023 Annual Report
Parent statement of owner's equity
Jan to Dec, 2023
Unit: Yuan Currency: CNY
2023
Other equity instruments
Item Paid-up capital (or Less: Treasury Other comprehensive
Preferen Perpetua Capital reserve Special reserve Surplus reserve Undistributed profit Total owner’s equity
share capital) Others shares income
ce share l bond
I. Closing balance of the previous year 4,501,946,097.00 1,965,085,659.43 17,097,876,701.86 6,914,433.08 2,407,355,585.45 12,251,718,068.28 38,230,896,545.10
Add: Changes in accounting policies 112,647.39 1,013,826.49 1,126,473.88
Correction of previous errors
Others
II. Opening balance of the current year 4,501,946,097.00 1,965,085,659.43 17,097,876,701.86 6,914,433.08 2,407,468,232.84 12,252,731,894.77 38,232,023,018.98
III. Change in current period (“-” for
27,649.00 -170,196.48 801,049.09 4,223,528.52 1,896,478,871.99 4,201,693,229.09 6,103,054,131.21
decrease)
(I) Total comprehensive income 4,223,528.52 18,964,788,719.85 18,969,012,248.37
(II) Capital invested and decreased by
27,649.00 -170,196.48 1,042,242.42 899,694.94
owners
1. Common shares invested by owners
2. Capital invested by holders of other
27,649.00 -170,196.48 1,042,242.42 899,694.94
equity instruments
3. Amount of share payment recorded
into owner's equity
4. Others
(III) Profit distribution 1,896,478,871.99 -14,763,095,490.76 -12,866,616,618.77
1. Withdrawal from surplus reserve 1,896,478,871.99 -1,896,478,871.99
2. Distribution to owners (or
-12,866,616,618.77 -12,866,616,618.77
shareholders)
3. Others
(IV) Internal carryover of owner's
equity
1. Capital reserve converted to capital
(or share capital)
2. Surplus reserve converted to capital
(or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in current period
2. Use in current period
(VI) Others -241,193.33 -241,193.33
IV. Closing balance of the current
4,501,973,746.00 1,964,915,462.95 17,098,677,750.95 11,137,961.60 4,303,947,104.83 16,454,425,123.86 44,335,077,150.19
period
144 / 293
2023 Annual Report
2022
Other equity instruments
Item Paid-up capital (or Less: Treasury Other comprehensive
Preferen Perpetua Capital reserve Special reserve Surplus reserve Undistributed profit Total owner’s equity
share capital) Others shares income
ce share l bond
I. Closing balance of the previous
4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,948,005.57 7,425,461,793.14 30,432,074,815.57
year
Add: Changes in accounting policies 2,299.00 20,691.04 22,990.04
Correction of previous errors
Others
II. Opening balance of the current
4,501,548,184.00 17,082,993,947.39 7,122,885.47 1,414,950,304.57 7,425,482,484.18 30,432,097,805.61
year
III. Change in current period (“-” for
397,913.00 1,965,085,659.43 14,882,754.47 -208,452.39 992,517,928.27 4,827,249,410.59 7,799,925,213.37
decrease)
(I) Total comprehensive income -208,452.39 9,925,179,282.67 9,924,970,830.28
(II) Capital invested and decreased
397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35
by owners
1. Common shares invested by
owners
2. Capital invested by holders of
397,913.00 1,965,085,659.43 15,050,495.92 1,980,534,068.35
other equity instruments
3. Amount of share payment
recorded into owner's equity
4. Others
(III) Profit distribution 992,517,928.27 -5,097,929,872.08 -4,105,411,943.81
1. Withdrawal from surplus reserve 992,517,928.27 -992,517,928.27
2. Distribution to owners (or
-4,105,411,943.81 -4,105,411,943.81
shareholders)
3. Others
(IV) Internal carryover of owner's
equity
1. Capital reserve converted to
capital (or share capital)
2. Surplus reserve converted to
capital (or share capital)
3. Surplus reserve offset loss
4. Change in defined benefit plan
converted to retained earnings
5. Other comprehensive income
converted to retained earnings
6. Others
(V) Special reserve
1. Withdrawal in current period
2. Use in current period
(VI) Others -167,741.45 -167,741.45
IV. Closing balance of the current
4,501,946,097.00 1,965,085,659.43 17,097,876,701.86 6,914,433.08 2,407,468,232.84 12,252,731,894.77 38,232,023,018.98
period
Company Head: Liu Shuqi Head of Accounting Affairs: Zhou Bin Head of Accounting Department: Gan Lu
145 / 293
2023 Annual Report
III. Company information
1. Company overview
"√Applicable" "□ Not applicable"
(1) History
Tongwei Co., Ltd. (the “Company”) is a stock limited company incorporated through the entire
change of Sichuan Tongwei Feed Co., Ltd. On October 21, 2000, as approved by Sichuan People's
Government’s Approval on the Incorporation of Sichuan Tongwei Co., Ltd. (the Sichuan People's
Government Letter [2000] No. 311), Sichuan Tongwei Feed Co., Ltd. was entirely changed and then
incorporated into Sichuan Tongwei Co., Ltd. The Company's total share capital was converted from 111.88
million yuan, the net assets of Sichuan Tongwei Feed Co., Ltd as of August 31, 2000 as audited by Sichuan
Huaxin (Group) Accounting Firm Co., Ltd., to 111.88 million shares, with one yuan per share. On
November 8, 2000, the Company received the Business License from Sichuan Bureau of Industry and
Commerce (registration number: 5100001812986). On November 19, 2001, the State Administration for
Industry and Commerce of the People's Republic of China approved the name change to Tongwei Co.,
Ltd. in its Notification on Approval of Enterprise Name Change of (Guo) MCBH [2001] No.419.
On February 16, 2004, as approved by China Securities Regulatory Commission in the ZJXK [2004]
No.10, the Company publicly issued 60 million RMB common shares(A-share). All the shares were issued
to investors in secondary market with a price of 7.50 yuan per share. The changed registered capital was
171,880,000.00 yuan. The plan for non-tradable share reform was approved in the general meeting of
Tongwei Co., Ltd. on non -tradable share reform on February 20, 2006. According to the plan, floating
shareholders would get a consideration of 1.5 shares from non-floating shareholders for each 10 floating
shares they hold. As such, floating shareholders obtained 9 million shares as the consideration. The
registration of shares as result of the reform was completed on March 3, 2006.
On May 25, 2006, the Company increased its share capital through capital reserve (5 shares per 10
shares) and share bonus (5 shares per 10 shares). As a result of the conversion and bonus, the Company
had a total of 343.76 million shares; on May 23, 2007, the Company again increased its share capital
through capital reserve (7 shares per 10 shares) and share bonus (3 shares per 10 shares), leading to a total
of 687.52 million shares.
On July 4, 2013, the Company issued 129,589,632 shares to Tongwei Group Co., Ltd. After that, the
Company had a total of 817,109,600 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise
Supporting Funds by Issuing Shares to Entities including Tongwei Group Co., Ltd. (ZJXK [2016] No. 190)
from the CSRC on January 27, 2016, the Company issued 238,324,880 RMB common shares to 17 legal
persons such as Tongwei Group Co., Ltd., Sichuan Giastar Group Co., Ltd. and 29 natural persons such
as Tang Guangyue, the nominal value of each share was 1.00 yuan. After that, the share capital was
1,055,434,512 shares.
On May 19, 2016, the Company increased its share capital through capital reserve (4 shares per 10
shares) and share bonus (6 shares per 10 shares). As a result of the conversion and bonus, the Company
had a total of 2,110,869.024 shares.
On June 22, 2016, the Company issued 350,262,697 shares to 8 institutions including Tianhong Fund
Management Co., Ltd. After that, the Company had a total of 2,461,131,721 shares.
With the approval of the Reply on Approving Tongwei Co., Ltd. to Purchase Assets and Raise
Supporting Funds by Issuing Shares to Tongwei Group Co., Ltd. (ZJXK [2016] No. 2054) from the CSRC
on September 08, 2016, the Company issued common shares of 922,901,629 yuan to Tongwei Group Co.,
Ltd. The nominal value of each share was 1.00 yuan. After that, the share capital was 3,384,033,350 shares.
On December 23, 2016, the Company issued 498,338,870 shares to 5 institutions including Essence
Fund. After that, the Company had a total of 3,882,372,220 shares.
As approved in (ZJXK [2018] No. 1730) from the CSRC, the Company issued 50 million convertible
bonds of 5 billion yuan on March 18, 2019, with a term of 6 years; after approved in (ZLJGJDS [2019]
No.052) from the Shanghai Stock Exchange, the convertible bonds were listed for trading on the Shanghai
Stock Exchange from April 10, 2019; the bonds are named as Tongwei Convertible Bonds for short, the
bond code is 110054; the corporate stock was not lower than 130% (namely 15.96 yuan/share ) of the
current conversion price of Tongwei Convertible Bond for at least 15 trading days in 30 consecutive
trading days from January 14, 2020 to March 3, 2020; the redemption clause of "Tongwei Convertible
Bonds" has been triggered. The sixth meeting of the seventh board of directors approved the Company to
exercise the early redemption right to redeem all "Tongwei Convertible Bonds" registered on the
146 / 293
2023 Annual Report
"Redemption Registration Date"; the deadline of the redemption registration date is March 16, 2020;
Tongwei Convertible Bonds with a nominal value of 4,979,353,000 yuan were converted into 405,483,464
company shares. After that, the Company had a total of 4,287,855,684 shares.
On November 20, 2020, the Company issued 213,692,500 shares to 16 institutions including
Changdu Tongrui Industrial Partnership (Limited Partnership) Co., Ltd. After that, the Company had a
total of 4,501,548,184 shares.
As approved by CSRC in its ZJXK [2021] No. 4028, the Company publicly issued 120 million
convertible bonds valued 12 billion yuan for a term of 6 years. As agreed by the Shanghai Stock Exchange
in the Self-Discipline Regulation Decision [2022] No.61, the convertible bonds were listed on Shanghai
Stock Exchange on March 18, 2022. The short name of the bond is “Tong22 Convertible Bonds” (code
110085). From September 2, 2022 when Tong22 Convertible Bonds entered the conversion period, to
December 31, 2023, a total of 163,080 Tong22 Convertible Bonds were converted into the Company's A
shares, with a cumulative conversion of 16,308,000.00 yuan or 425,562 shares. After the conversion, the
total number of shares is 4,501,973,746.
(2) Registered address, organizational form and headquarters address
The registered address of the Company is No. 588 Middle Section Tianfu Avenue, High-Tech Zone,
Chengdu, and its organizational form is Limited Liability Company. Its headquarters is located at No. 588,
Middle Section Tianfu Avenue, High-Tech Zone, Chengdu.
(3) Business nature and main operating activities
1) Business nature
The Company is engaged in agriculture, forestry, livestock husbandry and fishery. After the
combination of Yongxiang Co., Ltd., Tongwei New Energy Co., Ltd. and Tongwei Solar (Hefei) Co., Ltd.
under common control in 2016, it added "PV business".
2) Main operating activities
Production and sale of high-purity polysilicon and chemical products, silicon rods, silicon wafers,
solar cells, modules, etc.; solar power generation and related activities; production and sale of feed;
aquaculture, seed breeding, food processing, etc.
(4) Largest shareholder and actual controller
The largest shareholder is Tongwei Group Co., Ltd. (“Tongwei Group”), and the actual controller is
Liu Hanyuan.
(5) Approver of financial report
The Company's financial report is approved by its board of directors. The financial report for the
current period was approved by the 18th meeting of the 8th board of directors on April 28, 2024.
IV. Basis of preparation for financial statements
1. Basis of preparation
The Company's financial statements are prepared based on the assumption of going concern and
actual transactions and matters, in accordance with the Accounting Standards for Business Enterprises
issued by the Ministry of Finance and its supporting guidelines as well as explanations (“ASBE”) and the
disclosure provisions in the Rules for Preparation and Submission of Information Disclosure by
Companies that Offer Securities to the Public (No. 15)— General Rules on the Financial Statements
revised by CSRC in 2023.
2. Going concern
"√Applicable" "□ Not applicable"
The Company’s financial statements are prepared on a going concern basis. The Company's operating
activities are adequately supported by financial resources. To the best knowledge of the Company and
considering the macro-policy risks, market operation risks, current or long-term profitability, solvency and
financial resources support of the enterprise and other factors, the Company believes that there are no
matters or situations that have serious doubts about the Company's going concern in the next 12 months,
and it is reasonable to prepare financial statements on the basis of going concern.
V. Significant accounting policies and accounting estimates
Notes to the specific accounting policies and accounting estimates:
"√Applicable" "□ Not applicable"
147 / 293
2023 Annual Report
1. Statement of compliance
These financial statements prepared by the Company comply with the requirements set forth in
Accounting Standards for Business Enterprises and accurately and completely reflect the financial
condition, operation results, cash flows and other necessary information of the Company for the reporting
period.
2. Accounting periods
Each accounting year starts from the January 1 to the December 31st of the same year.
3. Operating cycle
"√Applicable" "□ Not applicable"
The operating cycle is the average period of time required for the Company from purchase of assets
used for processing to realization of cash and cash equivalents. For the Company, 12 months/year
constitute an operating cycle which is used as a criterion for determining the liquidity of assets and
liabilities.
4. Reporting currency
The reporting currency used by the Company is CNY.
5. Methodology and criteria for determining materiality
"√Applicable" "□ Not applicable"
Item Materiality criteria
Written off of material
Written-off amount of individual receivable ≥ 50 million yuan
receivables
Recovery or reversal of bad
Recovered or reversed amount of the bad debt provision for individual
debt provision for receivables
receivable ≥ 50 million yuan
of material amounts
Individual construction in progress that meet any one of the following
conditions:
Material construction in 1) is related to projects funded through financing activities;
progress 2) is a project formally announced by the Company to the public; or
3) ratio of the amount incurred or year-end balance for individual
construction in progress to total assets ≥ 1%
Material advances to suppliers The ratio of individual advance to supplier with an age over 1 year to the
with an age over 1 year total assets ≥ 1%
Material accounts payable The ratio of individual accounts payable with an age over 1 year to the
with an age over 1 year total assets ≥ 1%
Material advances from
The ratio of individual advance from customer with an age over 1 year
customers with an age over 1
to the total assets ≥ 1%
year
Material contract liabilities The ratio of individual contract liability with an age over 1 year to the
with an age over 1 year total assets ≥ 1%
Other material payables with The ratio of individual other payable with an age over 1 year to the total
an age over 1 year assets ≥ 1%
Material cash flows generated
The ratio of individual cash flow to total assets ≥ 1%
from investing activities
One of the total assets, operating income, or total profits (or absolute
Material non-wholly-owned
loss) of the non-wholly-owned subsidiary ≥10% of the corresponding
subsidiaries
item in the consolidated financial statements
Material associates or joint Investment income (or absolute loss) from the associate or joint venture
ventures ≥10% of the net income in the consolidate financial statements
6. Accounting for business combinations under common control and under different control
"√Applicable" "□ Not applicable"
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A business combination is a transaction or other event in which two or more businesses are combined
into one reporting entity. Business combinations are classified into “common control” and “not common
control” types.
(1) Business combination under common control
A business combination is a common control combination if the combining entities are ultimately
controlled by the same party (or parties) both before and after the combination and common control is not
transitory. For a business combination under common control, the entity that obtains the control of other
combining entities on the acquisition date is called acquirer and other called acquiree(s). Acquisition date
is when the acquirer actually obtains the control of the acquiree.
The share of owner’s equity of the acquiree in the carrying value recorded in the consolidated
financial statements of the ultimate controller is used to calculate the initial cost of long-term equity
investment. An excess of consideration paid (or the total par value of shares issued) for the combination
over the carrying value of net assets obtained from the acquisition is allocated to capital reserve (share
premium) first with any remaining excess charged entirely to retained earnings.
Expenses directly incurred by the acquirer that are attributed to the combination are carried into
current profit or loss as incurred.
(2) Business combination under different control
A business combination is not a common control combination if the combining entities are not
ultimately controlled by the same party (or parties) before and after the combination. For a business
combination under different control, the entity that obtains the control of other combining entities on the
acquisition date is called acquirer and other called purchased parties. Acquisition date is when the acquirer
actually obtains the control of the acquiree.
For a business combination under different control, the combination cost includes the fair value of
assets paid, liabilities incurred or assumed, and equity securities issued on the acquisition date by the
acquirer for obtaining the control of the acquiree; intermediary expenses including audit, legal service and
assessment and consulting services, and other management expenses for the combination are carried into
current profit or loss as incurred. The transaction cost of issuing equity securities or debt securities for the
purpose of a business combination is carried into the initial recognition amount of such equity securities
or debt securities. Contingent consideration is measured at fair value on acquisition date, and when
recognition criteria are met within 12 months after the acquisition date, it is treated as an adjustment to the
cost of the combination with a corresponding effect on goodwill. Combination cost incurred to the acquirer
and net identifiable assets obtained in the acquisition are measured at the fair value on the acquisition date.
The excess of the consideration paid for the combination over the fair value of net identifiable assets
obtained from the acquiree is recognized as goodwill. The excess of fair value of net identifiable assets
obtained from the acquiree over the consideration paid for the combination is carried into current profit or
loss if the excess remains after the fair value of measurement of all identifiable assets, liabilities and
contingent liabilities obtained from the acquiree, as well as the combination cost is re-reviewed.
Where the deductible temporary difference obtained by the acquirer from the acquiree is not
recognized due to its non-compliance with criteria for the recognition of deferred tax assets at the
acquisition date, if any new or further evidence obtained within 12 months after the acquisition date reveals
that criteria was met at the acquisition date, and it is expected that the economic benefit brought by such
deductible temporary difference on acquisition date can be realized, relevant deferred income tax assets
must be recognized with goodwill decreased (where goodwill is insufficient to offset, the balance must be
recognized as current profit or loss); all other deferred income tax assets recognized that are linked with
business combination must be included in current profit or loss.
For a business combination under common control achieved in stages, accounting for a package deal
is similar to the accounting for “long-term equity investments” in Notes; otherwise, accounting is
performed by separate financial statements and consolidated financial statements.
In separate financial statements, the sum of carrying value of the equity investment in the acquiree
held by the acquirer before the acquisition date and the cost of investment newly added on the acquisition
date shall be taken as initial investment cost of the investment; where the equity held before the acquisition
date involves other comprehensive income, the investment and other comprehensive incomes relating
thereto shall be subject accounting treatment using the same basis on which the acquiree directly disposes
related assets or liabilities (namely, except for the corresponding share in the change arising from the
acquiree’s re-measurement of net liabilities or net assets of defined benefit plan under equity method, the
rest will be carried into investment income of current period).
In consolidated financial statements, the sum of carrying value of the equity investment in the
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2023 Annual Report
acquiree held by the acquirer before the acquisition date is remeasured at fair value at the acquisition date,
with the difference between fair value and carrying value carried into current investment income; where
the equity held before the acquisition date involves other comprehensive income, the investment and other
comprehensive incomes relating thereto shall be subject accounting treatment using the same basis on
which the acquiree directly disposes related assets or liabilities (namely, except for the corresponding
share in the change arising from the acquiree’s re-measurement of net liabilities or net assets of defined
benefit plan under equity method, the rest will be carried into investment income of the period in which
the acquisition data fall).
7. Control criteria and methods used for preparing consolidated financial statements
"√Applicable" "□ Not applicable"
(1) Control criteria
Control means the power of the Company over the investee; the Company is entitled to variable returns
by participating in related activities of the investee and able to influence the amount of return by exercising
the power. When changes in relevant facts and circumstances lead to changes in the elements involved in
the definition of control, the Company will perform a reassessment.
The Company consolidates all controlled subsidiaries (including separately controlled entities) into the
consolidated financial statements, including entities controlled by the Company, separable portions of
investees, and structured entities
(2) Methods used for preparing consolidated financial statements
The consolidated financial statements are prepared based on the financial statements of the Company and
its subsidiaries. When preparing the consolidated financial statements, the Company ensures consistency
in accounting policies and accounting periods with its subsidiaries, and significant transactions and
balances between relevant entities are offset.
Subsidiaries and businesses acquired through business combinations under common control in the
reporting period are deemed to be included in the Company's consolidated scope from the date when they
come under the ultimate control, with their operating results and cash flows included separately in the
consolidated income statement and consolidated cash flow statement when they come under the ultimate
control.
For subsidiaries and businesses acquired through business combinations not under common control in the
reporting period, for the period from the acquisition date to the end of the reporting period, their incomes,
expenses and profits are included into the consolidated income statement and their cash flows are included
in the consolidated cash flow statement.
The portion of equity in subsidiaries not owned by the Company is presented separately as minority
interests within the equity item of the consolidated balance sheet. The share of net profit or loss attributable
to minority interests in a subsidiary's current net profit or loss is presented as “minority interest income”
within the net profit item in the consolidated income statement. If the losses incurred by the subsidiary
attributable to minority interests exceed the minority shareholders' equity share in the subsidiary at the
beginning of the period, the excess is still deducted from the minority interests.
(3) Purchase of minority shareholdings in subsidiaries
The capital reserve in the consolidated balance sheet is written down to the extent of the difference between
the newly obtained long-term equity investment from the purchase of minority shareholding, and the
Company's newly obtained share of the net asset of the subsidiary since the acquisition date or combination
date, and if the capital reserve is insufficient, the retained earnings are adjusted accordingly.
(4) Treatment of loss of control in a subsidiary
If the Company loses control of a subsidiary due to partial disposal of the equity investment or other
reasons, the retained interest is re-measured at fair value on the date of losing control for preparation of
consolidated financial statements. The sum of consideration received from disposal of investment and the
fair value of retained interest less the net assets of the former subsidiary that the Company would be
entitled if the former shareholding percent was retained from the purchase date or acquisition date, is
carried into the investment income of current period when the control is lost.
Other comprehensive income and changes in equity related to equity investments in the subsidiary are
transferred to current profit or loss upon loss of control, excluding other comprehensive income arising
from remeasurement of the net liability or net asset of defined benefit plans of the subsidiary.
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2023 Annual Report
8. Classification of joint arrangements and accounting for joint operations
"√Applicable" "□ Not applicable"
A joint arrangement is an arrangement of which two or more parties have joint control. Joint
arrangements are classified into joint operations and joint ventures depending on the rights and obligations
of the Company under the arrangements. In a joint operation, the Company has rights to the assets and
obligations for the liabilities relating to the arrangement. In a joint venture, the Company has rights to the
net assets of the arrangement.
Investments into joint ventures are treated under equity method in accordance with the accounting
policies described in “long-term equity investments” in Notes.
For a joint operation, assets held and liabilities assumed separately by the Company, as well as joint
assets and liabilities by the Company's share are recognized; revenue generated from sale of the share of
the Company in the output of the joint operation is recognized; the revenue generated from the joint
operation's sale of its products by the Company’s share is recognized; expenses incurred separately by the
Company as well as expenses incurred by the joint operation by the Company’s share are recognized.
If the Company as a party to a joint operation invests or sells assets (except that the assets forms a
business, hereinafter the same) into or purchases assets from the joint operation, before such assets are
sold to a third party by the joint operation, the Company only recognizes the share of profit or loss
generated from such transaction that is attributable to other parties in the joint operation. Where such assets
suffer from impairment loss set forth in Accounting Standards for Business Enterprises No. 8 — Asset
Impairment and other relevant provisions, the Company fully recognizes such loss if such assets are
invested or sold by the Company into the joint operation; the Company recognizes partial loss by its share
in the joint operation if such assets are purchased from the joint operation by the Company.
9. Criteria for cash and cash equivalents
Cash equivalents are defined as short-term investments (not greater than three months between the
purchase date and the maturity date) that have strong liquidity, are easy to be converted into cashes and
are unlikely to subject to value change risk.
Restricted bank deposits are not considered cash and cash equivalents in the cash flow statement.
For term deposits intended to be held to maturity and for which interest is accrued based on the term
deposit interest rate, such deposits are not classified as cash and cash equivalents because the purpose of
the Company holding such deposits is not to meet short-term liquidity needs for external payments, but
rather to earn interest income.
10. Foreign currency transactions and foreign currency translation
"√Applicable" "□ Not applicable"
(1) Accounting for foreign currency transactions
Foreign currency transactions are initially recognized in RMB converted with an exchange rate
approximate to the spot rate on the transaction date. On the balance sheet date, foreign currency monetary
items are translated into RMB at the spot exchange rate on the balance sheet date. Exchange differences
arising from different exchange rates are recognized in current profit or loss except for exchange
differences related to foreign currency borrowings, both principal and interest, that meet the criteria for
purchase or construction of qualifying assets. Foreign non-monetary items measured at historical cost are
still translated using the exchange rate approximate to the transaction date's spot rate, without changing
their RMB amounts. Foreign non-monetary items measured at fair value are translated using the spot
exchange rate on the fair value determination date, and the differences are recognized in current profit or
loss or other comprehensive income.
(2) Translation of foreign currency financial statements
Assets and liabilities on the balance sheet are converted at the spot exchange rate effective on balance
sheet date; all items other than undistributed profit in shareholders' equity are converted at the spot
exchange rates effective on occurrence dates of these items. Income and expense items in the profit
statement are converted at the exchange rate similar to the spot exchange rate of the current period; the
exchange differences so generated are presented in other comprehensive income under the shareholder's
equity of the balance sheet.
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2023 Annual Report
11. Financial instruments
"√Applicable" "□ Not applicable"
A financial instrument is defined as any contract that gives rise to a financial asset of one entity and
a financial liability or equity of another entity. When the Company becomes one party to a financial
instrument contract, the financial asset or financial liability in respect to this financial instrument is
recognized.
(1) Classification of financial assets
A regular way purchase or sale of financial assets shall be recognized and derecognized using trade
date accounting. Financial assets upon initial recognition are classified into: financial assets measured at
amortized cost; financial assets measured at fair value through other comprehensive income; financial
assets measured at fair value through current profit or loss.
Financial assets meeting the following conditions are classified into financial asset measured at
amortized cost: ① the business model to manage the financial assets is to collect contractual cash flow;
and ② the contract terms for the financial assets provided for that a cash flow generated on a certain date
is only the payment for any principal or any interest on any outstanding principal.
Financial assets meeting the following conditions are classified into financial asset measured at fair
value through other comprehensive income: ① the business model to manage the financial assets is to
collect contractual cash flow and sell financial assets; and ② the contract terms for the financial assets
provided for that a cash flow generated on a certain date is only the payment for any principal or any
interest on any outstanding principal.
Financial assets other than these measured at amortized cost and these assets measured at fair value
through other comprehensive income are classified into financial assets measured at fair value through
current profit or loss. In order to eliminate or significantly reduce accounting mismatches in initial
recognition, the Company may designate a financial asset as a financial asset measured at fair value
through current profit or loss. Such designation may not be revoked.
(2) Measurement of financial assets
Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value with changes in fair value recognized into current profit or loss, relevant transaction costs are
directly carried into current profit or loss; for other financial assets, relevant transaction costs are carried
into initial recognition amount. All accounts receivable or notes receivable generated through sales of
products or rendering of services, which do not contain a significant financing component or for which
the significant financing component is not considered, are measured at the considerations to which the
Company expects to be entitled upon initial recognition. Subsequent measurement of a financial
instruments depends on its category.
1) assets measured at amortized cost
Financial assets measured at motorized cost are subsequently measured at amortized cost under
effective interest method. A gain or loss on a financial asset that is measured at amortized cost and is not
part of a hedging relationship is carried into current profit or loss when the financial asset is derecognized,
reclassified, through the amortization process or in order to recognize impairment gains or losses.
2) investments measured at fair value through other comprehensive income
Financial assets of this category are subsequently measured at fair value. A gain or loss on a financial
asset of this category shall be recognized in other comprehensive income, except for interest calculated
under effective interest method, impairment gains or losses and foreign exchange gains and losses. When
the financial asset is derecognized the cumulative gain or loss previously recognized in other
comprehensive income is reclassified to current profit or loss.
3) held for trading equity investments measured at fair value through other comprehensive income
Financial assets of this category are subsequently measured at fair value. A gain or loss (including
exchange gain or loss) on a financial asset of this category shall be recognized in other comprehensive
income and may not be reclassified to current profit or loss subsequently, except for dividend (except for
recovered cost of investment). When the financial asset is derecognized the cumulative gain or loss
previously recognized in other comprehensive income is reclassified to current retained earnings.
4) assets measured at fair value through current profit or loss
A gain or loss arising from any change in the fair value of a financial asset of this category (except
for relating to hedging accounting) is carried into current profit or loss.
(3) Impairment of financial assets
Under the expected credit loss (ECL) approach, the impairment provisions on financial assets
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2023 Annual Report
measured at amortized cost and financial assets measured at fair value through other comprehensive
income are recognized.
The Company recognizes the expected credit loss by calculating the probability weighted amount of
the present value of the difference between cash flow receivable and cash flow that are expected to be
collected, with default risk as the weight, by considering reasonable and supportable information,
including past events, current conditions, and forecasts.
On each balance sheet date, the Company measures the expected credit loss on financial instruments
at each stage. Financial instruments in relation to which credit risk has not been increased significantly
since initial recognition are at the first stage, for which, the Company measures a 12-month expected credit
loss as impairment loss provision; financial instruments in relation to which credit risk has been increased
significantly since initial recognition but no credit impairment has occurred are at the second stage, for
which, the Company measures a life-time expected credit loss as impairment loss provision; financial
instruments in relation to which credit impairment has occurred since initial recognition are at the third
stage, for which, the Company measures a life-time expected credit loss as impairment loss provision.
In relation to financial instruments with a lower credit risk at the balance sheet date, the Company
assumes that such credit risk has not been increased significantly since initial recognition and measures a
12-month expected credit loss as impairment loss provision.
For a financial instrument at the first stage, or at the second stage or with a lower credit risk, the
Company calculates its interest income by using its book balance before impairment provision is deducted
and the effective interest rate. For a financial instrument at the third stage, the Company calculates its
interest income by using its book balance after impairment provision is deducted and the effective interest
rate.
For notes receivable, accounts receivable and receivables financing arising from sale of goods or
rendering of services, whether or not containing a significant financing component, the Company
measures a life-time expected credit loss as the impairment loss provision.
If it is impossible to estimate the expected credit loss at reasonable cost on an individual financial
asset, the Company classifies accounts receivable into several combinations by credit risk characteristics,
and calculate the expected credit loss on each combination.
The Company recognizes an impairment loss that has been provided or reversed into current profit
or loss. Gains or losses from debt investments measured at fair value through other comprehensive income
are recognized into current profit or loss with the other comprehensive income adjusted accordingly.
(4) Recognition basis for and measurement of financial asset transfers
A financial asset meeting any one of the following conditions is derecognized: ① the contractual
right to collect the financial asset's cash flow has expired; or ② if it has been transferred and the
Company has transferred substantially all the risks and rewards of ownership of the financial asset to the
recipient; or ③ if it has been transferred and the Company has surrendered control over the financial
asset although it neither transferred nor retained substantially all the risks and rewards of ownership of the
financial asset.
If the Company has neither retained nor transferred substantially all of the risks and rewards of the
asset, and has retained control of the asset, then the Company continues to recognize the asset to the extent
to which it has a continuing involvement in the asset and recognizes relevant liability. Continuing
involvement in the asset means the risk level caused by the change in the asset value to which the Company
will be exposed.
Where a transfer of financial asset in its entirety qualifies for derecognition, the difference between
(1) the carrying value of the asset and (2) the consideration received for transfer and cumulative change
in fair value previously recognized into other comprehensive income is recognized into current profit or
loss.
Where a transfer of partial financial asset qualifies for derecognition, the carrying value of the asset
is split into derecognition part and non-derecognition part by their relative fair values, and the difference
between (1) the consideration received for transfer and cumulative change in fair value of derecognition
part previously recognized into other comprehensive income and (2) the carrying value of the asset is
recognized into current profit or loss.
Upon the de-recognition of a non-held-for-trading equity investment designated by the Company as
measured at fair value through other comprehensive income, the cumulative gain or loss previously
recognized in other comprehensive income is reclassified to retained earnings.
(5) Classification and measurement of financial assets
1) liabilities measured at fair value through current profit or loss
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Financial liabilities measured at fair value through profit or loss (FVTPL) include financial liabilities
held for trading (including derivative instruments that belong to financial liabilities) and financial
liabilities designated as financial liabilities measured at fair value through current profit. Financial
liabilities measured at fair value through current profit or loss are subsequently measured at fair value. A
gain or loss arising from any change in the fair value of a financial liability of this category is carried into
current profit or loss.
2) other financial liabilities
Derivative financial liabilities that are linked to equity instruments that are not quoted in an active
market and their fair values cannot be reliably measured, and must be settled through delivery of such
equity instruments are subsequently measured at cost. Other financial liabilities are subsequently measured
at amortized cost under effective interest method with gains or losses from de-recognition or amortization
recognized into current profit or loss.
(6) De-recognition of financial liabilities
When the present obligations for a financial liability have been wholly or partially discharged, the
Company de-recognizes the financial liability or the part thereof. Where the Company (as a debtor) and a
creditor sign an agreement under which an existing financial liability is replaced by a new liability, and
the new financial liability and existing financial liability are different in contractual terms in essence, the
existing financial liability is derecognized and the new financial one is recognized.
Where a financial liability is de-recognized in whole or in party, the difference between the carrying
value of and the consideration paid (including the non-cash asset transferred or the new financial liability
assumed) for the de-recognized part is carried into current profit or loss.
(7) Offsetting of financial assets and financial liabilities
A financial asset and a financial liability should be offset and the net amount reported when and only
when the Company has a legally enforceable right to set off the amounts, and intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously; the net amount after such offsetting
is presented in the balance sheet. In all other circumstances, financial assets and financial liabilities are
presented separately in the balance sheet.
(8) Determination of fair value of financial instruments
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. Quoted prices in an active
market are used, where they exist, to measure the financial instrument. Quoted prices are readily and
regularly available from an exchange, dealer, industry group, price service or regulatory agency and those
prices represent the actual and regularly occurring market transactions on an arm's length basis. If the
market for a financial instrument is not active, the fair value of the financial instrument is established by
a valuation technique. Valuation techniques include reference to the prices used by the well-briefed and
willing-to-transact parties in the latest market transactions, reference to the current fair values of other
financial instruments similar in nature, discounted cash flow technique and option pricing models.
12. Notes receivable
"√Applicable" "□ Not applicable"
Determination of and accounting for expected credit loss on notes receivable
"√Applicable" "□ Not applicable"
Refer to “financial instruments” in Notes for details on the determination of and accounting for
expected credit loss on notes receivable.
Categories and determination criteria of combinations for which bad debt provisions are established
via a combination of risk characteristics
"√Applicable" "□ Not applicable"
If it is impossible to estimate the expected credit loss at a reasonable cost on an individual notes
receivable, the Company classifies the notes receivable into several combinations by credit risk
characteristics, and calculate the expected credit loss on each combination. The criteria for determining
the combination:
Combination
Combination name Provision method
criteria
For this category which exhibits low credit risk, by
Letters of credit
considering historical experience, current conditions and
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2023 Annual Report
forecasts, we calculate the expected credit loss on this
combination to be 0.00% through credit risk exposure and
a 12-month or a lifetime expected credit loss.
Type of notes For this category which exhibits low credit risk, by
considering historical experience, current conditions and
Banker's acceptances forecasts, we calculate the expected credit loss of this
combination to be 0.00% through credit risk exposure and
a 12-month or a lifetime expected credit loss.
Commercial By considering historical experience, current conditions
acceptances and forecasts, we calculate the expected credit loss.
Age calculation method regarding the age based determination of the combination of risk
characteristics
"□ Applicable" "√ Not applicable"
The creation criteria for an individual bad debt provision
"√Applicable" "□ Not applicable"
For notes receivable with significantly different credit risk and risk combination, the Company
recognizes expected credit losses on an individual basis. The Company determines the expected credit
losses on individual notes receivable for which there is sufficient evidence at the individual instrument
level to assess expected credit losses at a reasonable cost.
13. Accounts receivable
"√Applicable" "□ Not applicable"
Determination of and accounting for expected credit loss on accounts receivable
"√Applicable" "□ Not applicable"
Refer to “financial instruments” in Notes for details on the determination of and accounting for
expected credit loss on accounts receivable.
Categories and determination criteria of combinations for which bad debt provisions are established
via a combination of risk characteristics
"√Applicable" "□ Not applicable"
If it is impossible to estimate the expected credit loss at a reasonable cost on an individual accounts
receivable, the Company classifies the accounts receivable into several combinations by credit risk
characteristics, and calculate the expected credit loss on each combination. The criteria for determining
the combination:
Method for
Combination Combination combined
Combination type
category criteria provision for bad
debts
There is sufficient evidence to indicate that the
Combination 1 accounts receivable are risk-free during the Payment type No provision
settlement period.
Credit risk
Accounts receivable from relevant government Expected credit
Combination 2 characteristics
departments loss
(Note)
Accounts receivables from subsidiaries and
Combination 3 from joint ventures participating in the unified Payment type No provision
adjustment of the Company's operating funds
Credit risk
Expected credit
Combination 4 Accounts receivable other than above items characteristics
loss
(age)
Note: In terms of combination 2, for photovoltaic powerplants’ subsidies receivable from
government-related departments for electricity prices, no provision for bad debts is established if the
payments are expected to be recovered within one year after the balance sheet date; the provision for bad
debts is established as 5.00% of the balance receivable if the payments are expected to be recovered after
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2023 Annual Report
one year after the balance sheet date given the time value of asset; the provision for bad debts previously
established as 5.00% of the balance receivable is not reserved until the payments are recovered for
prudential purpose.
Age calculation method regarding the age based determination of the combination of risk
characteristics
"√Applicable" " Not applicable"
Combination 4 is grouped by credit risk characteristics (age) for exhibiting identical risk
characteristics. Age information reflects the repayment ability of this combination and its accounts
receivable at maturity. Based on all reasonable and substantiated information, including prospective data,
an estimation of the provision for bad debts for this combination of accounts receivable is made.
Age Provision (%)
Within 1 year 5.00
1 - 2 years 10.00
2 - 3 years 50.00
Over 3 years 100.00
Creation criteria for an individual bad debt provision
"√Applicable" "□ Not applicable"
For accounts receivable with significantly different credit risk and risk combination, the Company
recognizes expected credit losses on an individual basis. The Company determines the expected credit
losses on individual accounts receivable for which there is sufficient evidence at the individual instrument
level to assess expected credit losses at a reasonable cost.
14. Receivables financing
"√Applicable" "□ Not applicable"
Determination of and accounting for expected credit loss on receivables financing
"√Applicable" "□ Not applicable"
The Company will transfer banker's acceptances receivable that meet the conditions for derecognition
and serve both the purpose of collecting contractual cash flows and selling financial assets as receivable
financing.
Categories and determination criteria of combinations for which bad debt provisions are established
via a combination of risk characteristics
"√Applicable" "□ Not applicable"
If it is impossible to estimate the expected credit loss at reasonable cost on an individual receivables
financing, the Company classifies the receivables financing into several combinations by credit risk
characteristics, and calculate the expected credit loss on each combination. The criteria for determining
the combination:
Combination name Combination criteria Provision method
For this category which exhibits low credit risk, by
considering historical experience, current
conditions and forecasts, we calculate the expected
Banker's acceptances Type of notes
credit loss on this combination to be 0.00% through
credit risk exposure and a 12-month or a lifetime
expected credit loss.
Age calculation method regarding the age based determination of the combination of risk
characteristics
"□ Applicable" "√ Not applicable"
The creation criteria for an individual bad debt provision
"√Applicable" "□ Not applicable"
For receivables financing with significantly different credit risk and risk combination, the Company
recognizes expected credit losses on an individual basis. The Company determines the expected credit
losses on individual receivables financing for which there is sufficient evidence at the individual
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2023 Annual Report
instrument level to assess expected credit losses at a reasonable cost.
15. Other receivables
"√Applicable" "□ Not applicable"
Determination of and accounting for expected credit loss on other receivables
"√Applicable" "□ Not applicable"
Refer to “financial instruments” for details on the determination of and accounting for expected credit
loss on other receivables.
Categories and determination criteria of combinations for which bad debt provisions are established
via a combination of risk characteristics
"√Applicable" "□ Not applicable"
If it is impossible to estimate the expected credit loss at a reasonable cost on an individual other
receivable, the Company classifies the receivable into several combinations by credit risk characteristics,
and calculate the expected credit loss on each combination. The criteria for determining the combination:
Method for
Combination Combination combined
Combination type
category criteria provision for
bad debts
Performance bonds and deposits receivable
during the settlement period; use of petty cash by
construction projects that will be reimbursed and
Combination 1 Payment type No provision
offset by project expenditure, and other
receivables for which sufficient evidence
showing no risk is available
Receivable from governments such as risk-free
Combination 2 Payment type No provision
receivable including government grants
Accounts receivable from related parties within
the scope of consolidation and accounts
Combination 3 receivable from joint ventures temporarily Payment type No provision
formed for coordinated use of the Company's
operating funds
Credit risk
Expected
Combination 4 Accounts receivable other than above items characteristics
credit loss
(age)
Age calculation method regarding the age based determination of the combination of risk
characteristics
"√Applicable" "□ Not applicable"
Combination 4 is grouped by credit risk characteristics (age) for exhibiting identical risk
characteristics. Age information reflects the repayment ability of this combination and other receivable at
maturity. Based on all reasonable and substantiated information, including prospective data, an estimation
of the provision for bad debts for this combination of other receivable is made.
Age Provision (%)
Within 1 year 5.00
1 - 2 years 10.00
2 - 3 years 50.00
Over 3 years 100.00
Creation criteria for an individual bad debt provision
"√Applicable" "□ Not applicable"
For other receivables with significantly different credit risk and risk combination, the Company
recognizes expected credit losses on an individual basis. The Company determines the expected credit
losses on individual other receivables for which there is sufficient evidence at the individual instrument
level to assess expected credit losses at a reasonable cost.
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16. Inventories
"√Applicable" "□ Not applicable"
Inventory categories, inventory valuation methods, inventory system, amortization methods for low-
value consumables and packaging materials
"√Applicable" "□ Not applicable"
(1) Classification of inventories
Inventories are classified into: raw materials, packaging materials, work-in-process, finished goods,
materials in transit, materials for repeated use (including packages, low-value consumables, scaffolding
for construction projects), goods on consignment, goods in transit, materials for processing on
consignment, consumable biological assets, fulfillment costs and others.
(2) Inventory valuation methods
Inventory is recorded at the actual cost upon acquisition. The weighted average method is used for
calculating for the costs of all inventories except for materials for repeated use.
(3) Inventory system
Perpetual system is adopted.
(4) Amortization methods for low-value consumables and packaging materials
When low-value consumables and packaging materials are collected and used, the 50%-50%
amortization method is used for materials whose unit value is above 500 yuan and one-time amortization
for materials whose unit value is below 500 yuan. For low-value consumables with minor impact and
difficult to accurately measure, amortization is expensed in full at the time of collection.
Recognition criteria and creation method for provision for obsolete inventory
"√Applicable" "□ Not applicable"
At the end of a period, an inventory is measured at the lower of cost and net realizable value. Excess
of cost over net realizable value is recognized into current profit or loss, and the provision for obsolete
inventory allowance is established. For inventories related to a product series produced and sold in the
same area and for similar purposes or final applications, and it is difficult to distinguish them from other
items related to the product series, the provisions are established for these inventories as a whole; for
inventories large in quantities and low in price, the provision is established by type of inventory.
Materials held for production are measured at cost even if the realizable value of goods generated
therefrom is higher than cost. Materials are measured at net realizable value when the decrease of material
price indicates that the net realizable value of goods is lower than cost.
After the provision for obsolete inventory has been made, if the factors previously causing the write-
down of inventory value have ceased to exist, resulting in the net realizable value of the inventory being
higher than its carrying value, any reversal is recorded within the original obsolete inventory provision,
with the amount reversed recognized in the current profit or loss.
Categories and criteria for determining the provision for obsolete inventory by combination, and
the criteria for determining the net realizable value of inventory for different categories
"□ Applicable" "√ Not applicable"
Calculation method and criteria for determining the net realizable value of inventory for each age
combination
"□ Applicable" "√ Not applicable"
17. Contract assets
"√Applicable" "□ Not applicable"
Methods and criteria for recognition of contract assets
"√Applicable" "□ Not applicable"
A contract asset is defined as the Company’s right to consideration in exchange for goods or services
that the Company has transferred to a customer, when that right is conditioned on something other than
the passage of time. Contract assets and contract liabilities under the same contract are presented on a
netting basis; and contract assets and contract liabilities under different contracts are presented separately.
Determination of and accounting for expected credit loss on contract assets
"√Applicable" "□ Not applicable"
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Refer to “financial instruments” for details on the determination of and accounting for expected credit
loss on contract assets.
Categories and determination criteria of combinations for which bad debt provisions are established
via a combination of risk characteristics
"√Applicable" "□ Not applicable"
If it is impossible to estimate the expected credit loss at reasonable cost on an individual contract
asset, the Company classifies contract assets into several combinations by credit risk characteristics, and
calculate the expected credit loss on each combination. The criteria for determining the combination:
Method for
Combination combined
Combination type Combination criteria
category provision for
bad debts
There is sufficient evidence to indicate that the
Combination 1 payments are risk-free during the settlement Payment type No provision
period.
Accounts receivable from relevant Credit risk Expected
Combination 2
government departments characteristics (Note) credit loss
Receivables from subsidiaries and from joint
Combination 3 ventures participating in the unified Payment type No provision
adjustment of the Company's operating funds
Credit risk Expected
Combination 4 Payment other than above items
characteristics (age) credit loss
Note: In terms of combination 2, for photovoltaic powerplants’ subsidies receivable from
government-related departments for electricity prices, no provision for contract asset impairment is
established if the payments are expected to be recovered within one year after the balance sheet date; the
provision is established as 5.00% of the balance receivable if the payments are expected to be recovered
after one year after the balance sheet date given the time value of asset; the provision previously
established as 5.00% of the balance receivable is not reserved until the payments are recovered for
prudential purpose.
Age calculation method regarding the age based determination of the combination of risk
characteristics
"√Applicable" "□ Not applicable"
Combination 4 is grouped by credit risk characteristics (age) for exhibiting identical risk
characteristics. Age information reflects the repayment ability of this combination and the payments at
maturity. Based on all reasonable and substantiated information, including prospective data, an estimation
of the provision for contract asset impairment for this combination is made.
Age Provision (%)
Within 1 year 5.00
1 - 2 years 10.00
2 - 3 years 50.00
Over 3 years 100.00
Creation criteria for an individual bad debt provision
"√Applicable" "□ Not applicable"
For contract assets with significantly different credit risk and risk combination, the Company
recognizes expected credit losses on an individual basis. The Company determines the expected credit
losses on individual contract assets for which there is sufficient evidence at the individual instrument level
to assess expected credit losses at a reasonable cost.
18. Non-current assets for disposal group held for sale
"√Applicable" "□ Not applicable"
Recognition criteria and accounting for non-current assets for disposal group classified as held for
sale
"√Applicable" "□ Not applicable"
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A non-current asset or disposal group is classified as held for sale if most of its carrying value is
expected to be recovered via future cash flow from the sale (including non-monetary exchange with
commercial substance) of the asset or disposal group rather than future cash flow from use.
The following conditions must be met for an asset or disposal group to be classified as held for sale:
(1) the asset or disposal group must be available for immediate sale in its present condition subject
to terms that are usual and customary for sales of such assets (or disposal groups); and
(2) the sale must be highly probable, i.e., the Company has been committed to a plan to sell the asset
or disposal group and obtained a firm purchase commitment and the sale is expected to be completed
within one year. Relevant approvals have been obtained from relevant authorities or regulators.
The Company measures a non-current asset (or disposal group) classified as held for sale at the lower
of its carrying value and fair value less costs to sell. Where the carrying value is higher than the fair value
less costs to sell, the carrying value is written down to fair value less costs to sell, and the written down
amount is recognized into asset impairment loss and carried into current profit or loss, and the provision
for the asset held-for-sale impairment loss is established accordingly. The company recognizes a current
gain for any subsequent increase in fair value less costs to sell of an asset or disposal group held-for-sale,
but not in excess of the cumulative impairment loss that has been recognized after the asset is classified
into an asset held-for-sale. The carrying value of goodwill of a disposal group held-for-sale that has been
written down, and the impairment loss of a non-current asset held-for-sale recognized before it is classified
into an asset held-for-sale may not be reversed.
Non-current assets or disposal groups that are classified as held for sale are not depreciated or
amortized. Interest and other expenses attributable to the liabilities of a disposal group classified as held
for sale shall continue to be recognized.
A non-current asset or disposal group no longer classified as held for sale because it no longer meets
the classification criteria for held for sale or the asset is removed from the held for sale disposal group, is
measured at the lower of:
(1) carrying value before the asset (or disposal group) was classified as held for sale, adjusted for any
depreciation, amortization or impairment that would have been recognized had the asset (or disposal group)
not been classified as held for sale.
(2) recoverable amount.
Criteria for determining and reporting discontinued operations
"√Applicable" "□ Not applicable"
A discontinued operation is an identifiable component of the Company that meets one of the
following conditions, and either has been disposed of or is classified as held for sale:
(1) represents a separate major line of business or geographic area of operations;
(2) is part of a single coordinated plan to dispose of a separate major line of business or geographical
area of operations,
(3) is a subsidiary acquired exclusively with a view to resale.
The non-current assets held for sale or assets for a disposal group held for sale are presented
separately from other assets in the balance sheet. The liabilities of a disposal group held for sale are
presented separately from other liabilities in the balance sheet. Non-current assets held for sale or assets
for a disposal group held for sale do not offset the liabilities for a disposal group held for sale, they are
presented as current assets and current liabilities respectively.
The Company separately presents profit/loss from continuing operations and profit/loss from
discontinued operations in the income statement. For the discontinued operations reported in current
period, the Company reclassifies the information previously reported as the profit/loss from continuing
operations as profit/loss from discontinued operations for comparable accounting periods. If discontinued
operations no longer meet the criteria for classification as held for sale, in the current financial statements,
the Company reclassifies the information previously reported as the profit/loss from discontinued
operations as profit/loss from continuing operations for comparable accounting periods.
19. Long-term equity investments
"√Applicable" "□ Not applicable"
Long-term equity investments are equity investments under which investors impose control and
significant influence over investees and the equity investments into their joint ventures.
(1) Determination of investment cost
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For a long-term equity investment generated from a business combination, for example, the long-
term equity investment obtained from a business combination under common control, the share of owner’s
equity of the acquiree in the carrying value recorded in the consolidated financial statements of the ultimate
controller is used to calculate the initial cost of the long-term equity investment. For a long-term equity
investment obtained from a business combination under different control, the combination cost includes
the fair value of assets paid, liabilities incurred or assumed, and equity securities issued on the acquisition
date by the acquirer for obtaining the control of the acquiree; intermediary expenses including audit, legal
service and assessment and consulting services, and other management expenses for the combination are
carried into current profit or loss as incurred; transaction expenses of equity or debt securities issued by
the acquirer as the consideration for the business combination are accounted for as the initial recognition
of these equity or debt securities.
An equity investment other than a long-term equity investment obtained from a business combination
is initially measured at cost. The cost is determined, depending on the way in which the long-term equity
investment is obtained, by the actual cash payment paid by the Company, fair value of equity securities
issued by the Company, value agreed in the investment contract or agreement, fair value or original
carrying value of the asset exchanged for a non-monetary asset, or fair value of the long-term equity
investment. Expenses, tax and other necessary expenditure directly relating to obtaining the long-term
equity investment is also recorded into the investment cost.
(2) Subsequent measurement and profit or loss recognition
A long-term equity investment under which the Company has joint control (except for a joint
operation) or significant influence on the investee is accounted under equity method. Long-term equity
investments under which the Company has control over investees are accounted under cost method.
1) Cost-method accounting of long-term share investments
Under the cost method of accounting, a long-term equity investment is measured at initial investment
cost, except for the actually paid price for obtaining the investment or any cash dividend or profit declared
but not distributed that is included into the actually paid price or consideration upon investment, current
investment income is recognized as the cash dividend or profit that has been declared by the investee to
which the Company is entitled.
2) Equity method accounting of long-term share investments
Under the equity method of accounting, when the initial investment cost is greater than the
Company's share of the fair value of net identifiable assets of the investee upon investment, the initial
investment cost of the long-term equity investment is not adjusted; when the initial investment cost is
smaller than the Company's share of the fair value of the net identifiable assets of the investee upon
investment, such difference shall be carried into current profit/loss and the cost of the long-term equity
investment is adjusted.
Under the equity method of accounting, the current investment income shall be the Company's share
of the net profit or loss realized by the investee during the year. The fair value of net identifiable assets of
the invested upon investment is the basis for recognition of the Company's share of the net profit/loss of
the investee, and such recognition is performed after the net profit of the investee is adjusted in accordance
with Company's accounting policies and for the applicable accounting period. Unrealized profits and
losses resulting from transactions between the Company and its associate and joint venture are eliminated
to the extent of the Company's interest in the associate or joint venture, and then the investment profit or
loss is recognized. However, unrealized losses between the Company and the investee are not eliminated
to the extent that such losses is a result of the impairment of the assets transferred in accordance with
Accounting Standards for Business Enterprises No. 8 - Asset Impairment. The Company's share of other
comprehensive income of the investee is recognized as other comprehensive income with the carrying
value of the long-term equity investment adjusted accordingly. Any change in the owner's equity of the
investee other than net profit or loss, other comprehensive income and profit distribution, is recorded into
shareholders’ equity with the carrying value of the long-term equity investment adjusted accordingly.
Upon subsequent disposal of the long-term equity investment, the amount recorded into shareholders’
equity shall be re-classified into investment income in share or in full.
The Company's share of net loss of the investee is recognized to the extent that carrying value of the
long-term equity investment and other long-term equity that constitutes of the Company's net interest in
the investee is written down to zero. If the Company still has to assume additional obligations, such
expected obligations are recognized as expected liabilities and carried into current investment loss. When
the investee realizes any net profit in a subsequent period, the Company's share of net loss is eliminated
and its share of net profit is then reversed (if possible).
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3) Disposal of long-term equity investments
After a partial disposal of a long-term equity investment while the control is retained, in the
consolidated financial statements, the difference between the disposal price and the Company's share of
the net asset of the subsidiary in respect of the disposed part is recorded into shareholders’ equity. After a
partial disposal of a long-term equity investment that leads to control loss, refer to relevant accounting
policies described in Notes “control criteria and methods for preparing consolidated financial statements”.
For a disposal of a long-term equity investment in any other circumstance, the difference between carrying
value and the actually obtained price is recognized as current profit or loss; for a long-term equity
investment accounted under the equity method the share of other comprehensive income that has been
recorded into shareholders’ equity is subject to the accounting treatment on the same basis as the investee's
direct disposal of relevant assets or liabilities. The remaining interest is recognized as a long-term equity
investment or other financial liability at its carrying value, and subject to subsequent measurement
according to the aforesaid accounting policies for long-term equity investments or financial assets.
Retroactive adjustments are made under relevant provisions if the accounting treatment for the remaining
interest shifts from cost method to equity method.
20. Investment properties
(1). Measured at cost:
Depreciation or amortization method
An investment property is real estate property that has been purchased with the intention of earning
a return on the investment, either through rental income, the future resale of the property or both.
Investment properties include leased land use rights, land use rights held and prepared for transfer after
they are appreciated, and leased building.
1) Initial measurement
An investment property is initially measured at cost if rent income or added value that are associated with
the investment property will flow to the Company and the cost of the investment property can be measured
reliably.
The cost of an investment property purchased from other parties includes the purchase price and relevant
taxes directly attributable to the asset. The cost of an investment property constructed by the Company
consists of necessary expenditure incurred before the asset reaches expected usable condition. The cost of
an investment property obtained in another way is recognized under applicable accounting standards.
2) Subsequent measurement
Generally, subsequent expenditures on an investment property are measured at cost in subsequent periods.
An investment property is depreciated or amortized under accounting policies that the Company applies
to fixed assets or intangible assets.
An investment property is subsequently measured at fair value if conclusive evidence indicates that the
fair value of the investment property can be reliably obtained on an ongoing basis. An investment property
measured subsequently at fair value may not be depreciated or amortized; its carrying value is adjusted to
the fair value on balance sheet date and the difference between fair value and original carrying value is
carried into current profit or loss.
3) An investment property which the Company has changed its purpose is reclassified into other
properties.
21. Fixed assets
(1). Recognition criteria
"√Applicable" "□ Not applicable"
Fixed assets refer to property, plant, and equipment with a useful life of over one year, held for use
in the production or supply of goods or services, rental to others, or administrative purposes. When
economic benefits relating to a fixed asset are likely to flow into the Company and its costs can be reliably
measured, the fixed asset is recognized.
(2). Depreciation method
"√Applicable" "□ Not applicable"
Useful life Residual value Annual
Category Depreciation method
(years) rate depreciation rate
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Premises and buildings Straight-line method 5—35 5% 19%—2.71%
Including: overseas
No amortization Long term
private land (note)
Machinery equipment Straight-line method 5—12 5% 19%—7.92%
PV generation equipment Straight-line method 25 5% 3.8%
Transportation
Straight-line method 4—5 5% 23.75%—19%
equipment
Note: The Company holds a permanent title over overseas private lands purchased for constructing
plants (such as in Bangladesh); these lands are for long-term use and not amortized. An impairment test is
performed at the end of each reporting period.
For a fixed asset for which a provision for impairment has been established, its depreciation rate and
depreciate amount shall be re-calculated according to its carrying value (i.e., the original cost less
cumulative depreciation and provision for impairment) and its remaining useful life.
A fixed asset is measured at the lower of its carrying value and its recoverable amount on the balance
sheet date.
22. Construction in progress
"√Applicable" "□ Not applicable"
(1) Measurement of construction in progress
A construction in progress is measured at cost which includes borrowing interest and expense
incurred before the end of a construction period that should be capitalized.
When a construction in progress reaches its intended purpose and is delivered for use, a fixed asset
is recognized at actual cost; for construction in progress that has been delivered but the final account is
not performed, a fixed asset is recognized at the estimated cost of construction budget, costing or actual
construction cost with depreciation established. After the final account is completed, the original estimate
and depreciation are adjusted accordingly.
A construction in progress is measured at the lower of its carrying value and its recoverable amount
on the balance sheet date.
(2) Provision for impairment of construction in progress
A provision for impairment of a construction in progress is established at carrying value less
recoverable amount at the end of the construction period if one or more of the following circumstances
exist. Once recognized, the impairment loss will not be reversed in subsequent periods.
1) the construction is suspended for a long term and the suspension is expected to remain in next 3
years;
2) the construction has been outdated in performance and technology and the economic benefits
brought to the Company is largely uncertain;
3) other circumstance that indicate the construction in progress has been impaired.
23. Borrowing costs
"√Applicable" "□ Not applicable"
Borrowing costs that incur during the capitalization period and may be directly attributable to
capitalization criteria are capitalized. Capitalization starts when all three conditions are met: ①
expenditures are incurred, ② borrowing costs are incurred, and ③ the activities necessary to prepare
the asset for its intended use or sale are in progress; and ends when the fixed asset reaches its intended use.
The capitalization should be suspended during periods in which acquisition or construction of the fixed
asset is interrupted for over consecutive three months; in this case, the borrowing costs are recognized as
current expense.
The method for calculating cost to be capitalized is as follows. To the extent that the Company
borrows funds specifically for the purpose of obtaining a qualifying asset, it is calculated as the actual
borrowing costs incurred on that borrowing during the period, less the interest on unused borrowings
deposited in banks or any investment income on the temporary investment of those borrowings. To the
extent that the Company uses funds from general borrowings for the purpose of obtaining a qualifying
asset, it is calculated by the weighted average of the excess of cumulative asset expenditure over the asset
expenditure from special borrowings, multiplied the capitalization rate applicable to used general
borrowings. The capitalized interest in each period is limited to the actual interest on relevant borrowings
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2023 Annual Report
that incurs in the period. The discount or premium of borrowings that should be amortized in each
accounting period is measured under effective interest method with the interest in each period adjusted
accordingly. An ancillary cost incurred in connection with funds borrowed specifically for the purpose of
obtaining a qualifying asset is capitalized as incurred if it incurs before the asset reaches its intended use
or sale, and recognized as expense and carried into current profit or loss if it incurs after the asset reaches
its intended use or sale.
24. Biological assets
"√Applicable" "□ Not applicable"
(1) Classification of productive biological assets
Productive biological assets of the Company include pigs for breeding, ducks for breeding, fishes
for breeding (and prawns for breeding) and others.
(2) Initial measurement of productive biological assets
1) Cost for purchasing a productive biological asset includes the purchase price, relevant tax,
transportation cost, insurance cost and all other expenditures that are directly attributable to purchase of
the asset.
2) Cost for constructing or generating a productive biological asset includes the feed cost, labor cost,
indirect expense that should be amortized and other necessary expenditures before the asset reaches its
intended production/operation (mature age).
(3) Subsequent measurement of productive biological assets
Depending on the nature, use and expected realization of relevant economic benefits of productive
biological assets, the useful life, residual value rate and depreciation rate of each productive biological
asset are determined as follows:
Category Useful life (years) Residual value rate Annual depreciation rate
Fishes for breeding 3 5% 31.67%
Amortization completed
Prawn for breeding 7 months 0%
in the breeding season
25. Oil and gas assets
"□ Applicable" "√ Not applicable"
26.Intangible assets
(1). Useful life and its determination criteria, estimation, amortization method or review
procedures
"√Applicable" "□ Not applicable"
An intangible asset is measured at cost upon initial recognition. An acquired intangible asset is
recognized at cost comprising the actual purchase price and related expenses. An intangible asset
contributed by an investor is recognized at its actual cost based on the value stipulated in the investment
contract or agreement, or based on fair value if the agreed value in the contract or agreement is not fair.
The cost of an internally generated intangible asset comprises all directly attributable costs incurred to
create, produce and prepare the asset for its intended use. In a business combination under different control,
an intangible asset obtained from the acquiree but not recognized in its financial statements is initially
recognized at fair value by the acquirer as intangible asset.
Subsequent measurement of intangible assets: ① An intangible asset with a finite useful life is
amortized using the straight-line method. The useful life and amortization method of the intangible asset
is reviewed at the end of each year, and adjustments are made if there are differences from the original
estimates. ② An intangible asset with an indefinite useful life is not amortized, but its useful life is
reviewed at the end of each year. When there is substantial evidence indicating that the intangible asset
has a finite useful life, the useful life is estimated and the intangible asset is amortized using the straight-
line method.
An intangible asset is measured at the lower of its carrying value and its recoverable amount on the
balance sheet date.
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(2). Scope of and accounting treatment for research and development expenditures
"√Applicable" "□ Not applicable"
The specific criteria for categorizing internal research and development expenditures into research
stage and development stage expenditures as follows. Research is the planned investigation undertaken
with the hope of gaining new technology or knowledge, characterized by its planned and exploratory
nature. The stage where research outcomes or other knowledge are applied to a specific plan or design
before commercial production or use, resulting in the production of new or substantially improved
materials, devices or products, is the development stage characterized by its targeted nature and a higher
likelihood of achieving results.
All expenditure incurred at the research stage should be carried into current profit or loss when
incurred. Expenditure incurred at the development stage is recognized as an intangible asset if the
following conditions are met, or recorded into current profit or loss when incurred:
1) the technical feasibility of completing the intangible asset (so that it will be available for use or
sale);
2) intention to complete and use or sell the asset;
3) the intangible asset will generate probable future economic benefits, including the Company can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or,
if it is used internally, the usefulness of the intangible asset;
4) availability of adequate technical, financial and other resources to complete the development and
to use or sell the intangible asset;
5) expenditure attributable to the intangible asset during its development stage can be reliably
measured.
27. Impairment of long-term assets
"√Applicable" "□ Not applicable"
The Company assesses at each balance sheet date whether there is an indication of impairment for
fixed assets, right-of-use assets, construction in progress, intangible assets with finite useful lives,
investment properties measured at cost, and non-current assets such as long-term equity investments into
subsidiaries, joint ventures and associates. If any such indication exists, the Company estimates the
recoverable amount of the asset and performs an impairment test. Goodwill or indefinite-lived intangible
assets, whether or not such indication of impairment exists, must receive at least one impairment test per
year.
If the impairment test indicates that book value of an asset is greater than its recoverable amount, an
impairment provision equaling to the difference of the two shall be established and recorded into
impairment loss. Recoverable amount of an asset is the greater of fair value less cost of disposal and the
present value of future cash flow expected to be derived from the asset. Fair value of an asset is based on
the price set forth in the sale agreement entered in a fair transaction; if no such sale agreement exists but
an active market for the asset exists, the fair value is based on the offer given by the buyer; if neither of
the two exists, the fair value is estimated according to the best knowledge. Costs of disposal include legal
costs, relevant taxes, and handling costs relating to disposal of an asset, and all direct expenses incurred
to bring an asset into condition for its sale. The present value of expected future cash flow of an asset is
calculated as the expected future cash flow to be deprived from continuing use and disposal of the asset
properly discounted. Impairment provision is calculated and recognized for each individual asset. If it is
difficult to estimate the recoverable amount of an individual asset, recoverable amount of the cash-
generating unit (CGU) to which the asset belongs is determined. A CGU is the minimum unit of assets
that can generate cash inflows.
In impairment test, the carrying value of goodwill which is separately listed in the financial statements
is shared among the CGU or the group of CGUs which are expected to be benefited from synergies of
business combination. If the impairment test indicates that book value of a CGU or a group of CGUs,
which takes a share of the goodwill, is greater than its recoverable amount, the corresponding impairment
loss is recognized. An impairment loss amount calculated for a CGU or a group of CGUs should be
allocated to the CGU or the group's individual assets - first of all to goodwill allocated to the CGU or the
group, and then to the other assets of the CGU on a pro rata basis according to the book amount of each
asset in the CGU or the group.
If fair value of an impaired goodwill recovers after an impairment has been recognized, the
impairment may not be reversed in a subsequent period.
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28. Deferred expenses
"√Applicable" "□ Not applicable"
A deferred expense is recognized as incurred and amortized over the benefit period or specified
amortization period with straight-line method. If a deferred expense cannot bring benefits to subsequent
accounting period, the amortized value is recognized into current profit or loss.
29. Contract liabilities
"√Applicable" "□ Not applicable"
A contract liability is the Company’s obligation to transfer goods or services to a customer for which
it has received consideration from the customer. If a customer pays consideration or the Company has a
right to an amount of consideration that is unconditional before the Company transfers a good or service
to the customer, the Company shall present the payment as a contract liability when the payment is made
or the payment is due (whichever is earlier). Contract assets and contract liabilities under the same contract
are presented on a netting basis; and contract assets and contract liabilities under different contracts are
presented separately.
30. Employee benefits
(1). Accounting of short-term employee benefits
"√Applicable" "□ Not applicable"
Short-term employee benefits include salaries, bonuses, allowances and subsidies, benefit expense,
medical insurance costs, maternity insurance costs, work injury insurance costs, house provident fund
expenses, labor union expense and education expense, and non-monetary benefits. The Company
recognizes the short-term employee benefits that are incurred during an accounting period in which the
corresponding services are rendered as liabilities and carry them into current profit/loss or relevant cost of
an asset. All non-monetary benefits are measured at fair value.
(2). Accounting of post-employment benefits
"√Applicable" "□ Not applicable"
1) Defined contribution plans
The Company contributes to employees' basic pension insurance and unemployment insurance in
accordance with local government regulations. During the accounting period in which corresponding
services are rendered by employees, the amount payable is calculated based on the local regulations for
contribution base and rates, recognized as liabilities and carried into current profit or loss or costs of
relevant assets.
2) Defined benefit plans
The Company uses the projected unit credit method to attribute the benefit obligation from a defined
benefit plan to the periods over which employees provide services, and record them into current profit or
loss or costs of relevant assets.
The deficit or surplus i.e., the present value of the defined benefit obligation less the fair value of
plan assets, is recognized as a net defined benefit liability or asset. When the Company has a surplus in a
defined benefit plan, it measures the net defined benefit asset at the lower of the surplus in the defined
benefit plan and the asset ceiling.
All defined benefit obligations, including obligations expected to be settled within 12 months after
the end of the annual reporting period in which employees provide services, are discounted using the
market yields on government bonds or high-quality corporate bonds that match the defined benefit
obligations in terms of term and currency at the balance sheet date.
The service costs of a defined benefit plan and the net interest on the net defined benefit liability or
asset is recognized as current profit or loss or costs of relevant assets. The changes from remeasurements
of the net defined benefit liability or asset are recognized in other comprehensive income and will not be
reclassified to profit or loss in a subsequent period.
For the settlement of a defined benefit plan, the gain or loss on settlement is recognized as the
difference between the present value of the defined benefit obligation being settled, as determined on the
date of settlement, and the settlement price.
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(3). Accounting of termination benefits
"√Applicable" "□ Not applicable"
Termination benefits are compensations provided for employees to terminate employment before
expiry or to encourage employees to leave service voluntarily. Termination benefits are carried into
employee benefits liability and into current profit or loss when paid. Termination benefits expected not to
be fully settled within 12 months after the end of the annual reporting period are treated as other long-term
employee benefits.
The Company provides social insurance and life allowances for internal retirees before they are
formally retired. The internal retirement plan is subject to the same principle as the said termination
benefits. Salaries and social insurance premiums to be paid by the Company for employees subject to
internal retirement plan from the date when they stop rendering services to the date when they reach legal
retirement ages, are recognized as liabilities and recorded into current profit or loss (termination benefits),
if the criteria for recognition of expected liabilities are met.
(4). Accounting of other long-term employee benefits
"√Applicable" "□ Not applicable"
Other long-term employee benefits are all employee benefits other than short-term employee benefits,
post-employment benefits, and termination benefits.
Other long-term employee benefits provided for employees are subject to accounting treatment for
defined contribution plans if they meet the defined contribution plan criteria, and subject to the accounting
treatment for defined benefit plans if they meet the defined benefit plan criteria.
31. Estimated liabilities
"√Applicable" "□ Not applicable"
An estimated liability is recognized when an obligation occurs with respect to a contingency and
meets the following three criteria.
(1) It is a present obligation of the Company;
(2) Its performance probably causes outflow of economic benefits;
(3) The amount of the obligation can be reliably measured.
If the payment needed for an estimated liability is expected to be compensated wholly or partially by
a third party or other parties or when the Company basically ascertains that the compensation can be
received, the compensation is recognized as an asset to the extent that the amount is not higher than the
carrying value of the recognized liability.
On the balance sheet date, the Company reviews the carrying value of an estimated liability, and
adjust the carrying value at the current best estimate if conclusive evidence indicates that the carrying
value cannot truly reflect the current best estimate.
Quality guarantee deposit for module products
A product quality guarantee deposit refers to a commitment that services will be provided for
customers after products are delivered or services are rendered. Within the agreed period, if quality issues
or other related problems occur to products or services within the normal scope during regular usage, the
Company is responsible for replacing products, providing free or cost-only repair services, etc. A quality
guarantee deposit is recognized as an estimated liability if it meets the above recognition criteria for
estimated liabilities.
Given that the Company has planned to expand its module business, in order to provide assured after-
sales service for module customers, the production bases of the Company provide module quality
guarantee deposit at 1% of module sales revenue in accordance with the relevant provisions of Accounting
Standard for Business Enterprises No. 13 - Contingencies, and with reference to practices of major peer
companies.
32. Share-based payment
"□ Applicable" "√ Not applicable"
33. Other financial instruments including preference share and perpetual bond
"□ Applicable" "√ Not applicable"
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34. Revenue
(1). Accounting policies for revenue recognition and measurement by business type
"√Applicable" "□ Not applicable"
(1) General principles for recognition of revenues
Revenue is the total inflow of economic benefits formed in the daily operating activities of the
Company, which will lead to the increase of owner's equity and is not related to the capital invested by
owners.
The Company recognizes a revenue when it satisfies the performance obligation in the contract, i.e.,
the customer obtains control of the good or service.
Where two or more performance obligations are included in the contract, the Company allocates the
transaction price to each performance obligation on the basis of the relative stand-alone selling prices of
each distinct good or service promised in the contract, and then measures revenue at the transaction price
allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf
of third parties. The Company recognizes the transaction price to the extent that it is probable that a
significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty
associated with the variable consideration is subsequently resolved. Amounts expected to be refunded to
a customer is not included into the transaction price. For a contract with a significant financing component,
the Company calculates the transaction price as the amounts payable in cash by the customer when it
would obtain control of the good or service. The difference between such amount and the contract
consideration is amortized over the contract term with effective interest method. The significant financing
component is not considered if on the start date of the contract Company expects that the period from the
customer obtains control over the good or service to the customer pays the price is not longer than one
year.
A performance obligation is satisfied over a period if one of the following criteria is met, otherwise,
it is satisfied at a point of time:
1) customer receives and consumes the economic benefits from the Company's satisfaction of the
performance obligation as it is satisfied by the Company;
2) customer is able to control work-in-process created by the Company in satisfying the performance
obligation;
3) goods created by the Company during the obligation performance does not have an alternative use
and the Company has an enforceable right to payment for performance completed to date.
For a performance obligation satisfied over a period of time, the Company recognizes the revenue
based on the performance progress over the period. If no reasonable and reliable measure of progress can
be made, revenue is generally recognized to the extent of costs incurred until a reasonable method can be
determined if the costs incurred are expected to be compensated.
The Company recognizes a revenue when it satisfies the performance obligation at the point in time
when control of the good or service is transferred to the customer. A customer obtains control of a good or
service if the following indicators are met:
1) the Company presents right to payment for the good or service;
2) the Company has transferred physical possession of the good or service to the customer;
3) the Company has transferred to the customer the significant risks and rewards of ownership of the
good;
4) customer has accepted the good or services.
The Company’s unconditional right (only conditional on the passage of time) to consideration is
presented as an account receivable. The Company’s right to consideration in exchange for goods or
services that the Company has transferred to a customer, when that right is conditioned on something other
than the passage of time is presented as a contract asset; a provision for impairment on a contract asset is
established at the expected credit loss. The Company’s obligation to transfer goods or services to a
customer when it has received the consideration is presented as a contract liability.
(2) Accounting policies for revenue recognition and measurement by business type
The Company adopt the following accounting policies for revenue recognition and measurement by
business type:
1) Revenue from sale of goods
A revenue is recognized when control of goods is transferred to a customer.
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The Company mainly produces and sells high-purity polysilicon, cells and modules, polyvinyl
chloride, sodium hydroxide and cement, feed, fish, pigs, ducks and other products, which belong to the
performance obligations satisfied at a point in time.
Criteria for revenue recognition for products sold in Chinese mainland: the Company has delivered
products to the purchaser under the contract and the products have been received via signature by the
purchaser or the shipping company engaged by the purchase; the sale amount is determined; the collection
has occurred or the Company has received the certificate of right to collect; relevant inflow economic
benefits are probable; and the cost of products can be reliably measured.
Criteria for revenue recognition for products sold outside Chinese mainland: under International
Rules for the Interpretation of Trade Term and given revenue recognition principles and the Civil Code, a
revenue is recognized at the point in time when control of the products is transferred to a customer.
The Company sells electricity generated by PV powerplants and recognizes a revenue when the
electricity connected to the grid is confirmed with the grid company.
2) Revenue from rendering of services
The Company renders services including construction and equipment installation that fall into the
scope of performance obligations over a period of time. The Company recognizes revenue over time by
measuring the progress toward complete satisfaction of that performance obligation, with the progress
calculated at the percent of costs incurred to the budget costs. Revenue should be recognized only to the
extent of costs incurred are expected to be compensated. Otherwise, the costs incurred are carried into
current profit or loss.
3) Revenue from transfer of right-of-use assets
The revenue is recognized over the period of a right-of-use asset under the straight-line method.
(2). Different revenue recognition and measurement methods for the same business type if
different operation models are involved
"□ Applicable" "√ Not applicable"
35. Contract costs
"√Applicable" "□ Not applicable"
Contract costs are classified into costs to obtain a contract and costs to fulfill a contract.
(1) Costs to fulfill a contract
The costs to fulfill a contract is recognized as an asset when the following criteria are met:
1) The costs relate directly to a contract or an anticipated contract, including direct labor, direct
materials, manufacturing costs (or similar costs), costs that are explicitly chargeable to the customer under
the contract and other costs that are incurred only because the Company entered into the contract.
2) The costs enhance resources of the Company that will be used in satisfying performance
obligations in the future.
3) The costs are expected to be recovered.
The asset is presented in either inventories or other current assets depending on whether the
amortization period determined upon initial recognition is over a normal operating cycle.
(2) Costs to obtain a contract
The costs of obtain a contract is recognized as an asset if the Company expects to recover the
incremental costs of obtaining a contract.
The incremental costs are those costs that the Company incurs to obtain a contract with a customer
that it would not have incurred if the contract had not been obtained (for example, a sales commission).
The costs are carried into current profit or loss when incurred if the amortization period is not over a year.
(3) Amortization of contract costs
The asset recognized for contract costs is amortized on a systematic basis consistent with the pattern
of the transfer of the goods or services to which the asset relates, at the point in time or over a period of
time, and carried into current profit or loss.
(4) Impairment on contract costs
The Company shall recognize an impairment loss in profit or loss to the extent that the carrying value
of an asset relating to contract costs exceeds: the amount of consideration that the Company expects to
receive in the future and that the Company has received but not yet recognized as revenue, in exchange
for the goods or services to which the asset relates ("the consideration"), less the costs that relate directly
to providing those goods or services and that have not been recognized as expenses, and further considers
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whether it is necessary to establish an estimated liability relating to a contract that leads to loss:
1) the amount of consideration that the Company expects to receive in the future and that the
Company has received but not yet recognized as revenue, in exchange for the goods or services to which
the asset relates;
2) the costs that relate directly to providing those goods or services and that have not been recognized
as expenses.
After the impairment provision is established, if change in impairment factors from the previous
period causes that the difference between the above two amounts is higher than the carrying value of the
asset, the impairment provision is reversed and carried into current profit or loss to the extent that the
carrying value after the reversal does not exceed its carrying value on the reversal date should the provision
was not established.
36. Government grants
"√Applicable" "□ Not applicable"
(1) Judgment basis for and accounting treatment for grants related to assets
Grants related to assets are government grants which the Company obtains to purchase, construct or
otherwise acquire long-term assets; if the subjects of a grant are not explicitly stated in the government
document, the basis for classifying the grant into a grant related to assets or a grant related to income is
explained in sub items.
Accounting treatment: The Company recognizes the grant as deferred income that is evenly carried
into current profit or loss over the useful life of the asset (i.e., the depreciation and amortization period)
from the asset reaches the its intended use condition. The remaining deferred income is recognized into
current profit or loss if the asset is disposed before its useful life expires. But a grant measured at its
nominal amount is directly recognized into current profit or loss.
(2) Judgment basis for and accounting treatment for grants related to income
Grants related to income are government grants other than those related to assets.
Accounting treatment:
1) Grants related to income are recognized as deferred income if they are used to compensate relevant
expenses or losses to be incurred; and they are carried into current profit or loss or to write down relevant
costs when relevant expenses are recognized.
2) Grants related to income are directly carried into current profit or loss or to write down relevant
costs if they are used to compensate relevant expenses or losses that the Company has incurred.
3) When should grants are recognized
A government grant is recognized when the Company complies with the conditions attaching to it
and the grant will be received.
4) Measurement of grants
If a grant is a monetary asset, it is measured at the amount received or receivable; if a government
grant is a non-monetary asset, it is measured at fair value, or at nominal value if the fair value cannot be
obtained reliably.
37. Deferred tax assets/ deferred tax liabilities
"√Applicable" "□ Not applicable"
Income tax is accounted for under the balance sheet liability method.
A deferred tax asset is recognized for deductible temporary differences to the extent that it is probable
that such temporary differences will reverse in the foreseeable future and that taxable profit will be
available against which the temporary difference will be utilized.
On balance sheet date, current tax assets and tax liabilities for the current and prior periods are
measured at the amount expected to be paid to (recovered from) taxation authorities; deferred tax assets
and deferred tax liabilities are measured on the balance sheet date at tax rates applicable to the periods
during which such assets are expected to be recovered or such liabilities are expected to be discharged.
The carrying values of deferred tax assets and deferred tax liabilities are reviewed on the balance
sheet date. Current and deferred tax is recognized as income or expense and included in profit or loss for
the period, except to the extent that the tax arises from transactions or events that are recognized directly
in owner's equity and business combinations.
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38. Lease
"√Applicable" "□ Not applicable"
Determination criteria and accounting treatment methods for lessees to use the simplified approach
for short-term leases and low-value leases
"√Applicable" "□ Not applicable"
A short-term lease is a lease that, at the date of commencement, has a term of 12 months or less, and
does not contain any purchase option; a low-value lease is a lease for which the underlying asset, when
new, is less than 50,000.00 yuan. If the Company sub-leases, or expects to sub-lease, an asset, then the
head lease does not qualify as a lease of a low-value item.
For all short-term leases and low-value leases, the Company recognizes lease payments on a straight-
line basis over the lease term into costs of relevant assets or current profit or loss.
Except for the short-term leases and low-value leases treated with the simplified approach, a right-
of-use asset and lease liability is recognized on the commencement date of the lease.
(1) Right-of-use assets
A right-of-use asset is initially measured at cost which comprises of : ① the amount of the initial
measurement of the lease liability; ② lease payments (if any) made at or before the commencement date
of the lease, less any lease incentives received; ③ any initial direct costs incurred by the lessee; ④ an
estimate of costs to be incurred by the lessee when dismantling and removing the lease asset, restoring the
site of the lease asset, or restoring the lease asset to its contractual state.
The depreciation for a right-of-use asset is established using the straight-line method. Depreciation
for a lease asset is provided over remaining useful life of the asset if the Company is able to reasonably
determine that it will obtain the ownership of the asset upon the lease term expires. Otherwise, the
depreciation is provided over the shorter of the remaining useful life and the lease term.
(2) Lease liabilities
On the commencement date of a lease, the Company recognizes a lease liability at the present value
of the lease payments that are not paid at that date. In calculating the present value of lease payments, the
Company uses the interest rate implicit in the lease as the discount rate; if the rate cannot be determined,
the Company uses its incremental borrowing rate. The difference between lease payments and their present
value is unrecognized financing costs. Interest expense is recognized over the lease term using the discount
rate used to determine the present value of lease payments, and is recorded in the current profit or loss.
The variable lease payments not included into the measurement of a lease liability measurement is
included into current profit or loss when incurred.
After the commencement date of lease, the Company will re-measure the lease liability at the present
value of changed lease payments in the event of any change in-substance fixed payments change, in the
amounts expected to be payable under residual value guarantees, the index or rate used for determining
the lease payments, the assessment result or actual exercise of purchase option, renewal option or
termination option, and the carrying value of the right-of-use asset is adjusted accordingly; if the carrying
value is reduced to zero and further adjustment is needed for the lease liability, the remaining amount of
the remeasurement is recognized in current profit or loss.
Classification criteria of and accounting for lessor
"√Applicable" "□ Not applicable"
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental
to ownership on the commencement date of the lease; and otherwise classified as an operating lease.
(1) Operating lease
The Company recognizes lease income on a straight-line basis over the lease term; initial direct costs
are capitalized and amortized over the lease term on the same basis as the lease income, and recorded into
current profit or loss. Variable lease payments not included into the lease payments that are related to an
operating lease are included into current profit or loss when incurred.
(2) Finance lease
The Company recognizes a net investment in the lease (the sum of the unguaranteed residual value,
and the present value of the lease payments not received at the commencement date, as discounted using
the rate implicit in the lease) at the commencement date and derecognizes the underlying asset. Over the
lease term, the Company calculates and recognizes interest income based on the rate implicit in the lease.
The variable lease payments not included into the measurement of the net investment in a lease is included
into current profit and loss when incurred.
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39. Other significant accounting policies and accounting estimates
"√Applicable" "□ Not applicable"
(1) Hedge accounting
1) Types of hedge accounting
The Company manages cash flow risks resulting from exchange rate fluctuations through forward
exchange contracts. From January 1, 2023, the Company applies hedge accounting to “foreign exchange
risks of firm commitments” if all hedge accounting criteria are met and classifies it to cash flow hedge.
2) Hedging instruments and hedged items
① Hedging instruments
A hedging instrument is a financial instrument designated by the Company for hedging purposes,
with its fair value or expected cash flow changes offsetting the fair value or cash flow changes of the
hedged item.
The Company uses forward exchange contracts as its hedging instrument.
② Hedged items
A hedged item is an item that exposes the Company to fair value or cash flow variability, designated
as the object of the hedge and can be reliably measured.
The Company identifies the foreign exchange risk of export or import orders priced in foreign
currency as the hedged item, namely, “foreign exchange risk of firm commitment” as the hedged item.
3) Hedge relationship assessment
At the beginning of a hedge relationship, the Company officially designates the hedge relationship,
and prepares a formal written documentation on the hedge relationship, risk management objectives and
risk management strategies. This documentation states the hedging instrument, hedged item, the nature of
the hedged risk, and the Company's approach to assess the hedge effectiveness. Hedge effectiveness is
defined as the extent to which changes in the fair value or cash flows of the hedging instrument offset
changes in the fair value or cash flows of the hedged item. Both initial and subsequent prospective hedge
effectiveness assessments reveal that such hedges meet the effective requirements.
The Company discontinues the hedge accounting if the hedging instrument has expired, is sold,
terminated or exercised (the replacement or rollover of a hedging instrument into another hedging
instrument is not an expiration or termination if such replacement or rollover is part of the documented
hedging strategy), or if the hedge relationship no longer meets the risk management objective because risk
management objective for a hedge relationship has changed, or if the hedging relationship no longer meets
the qualifying criteria, or if the effect of credit risk dominates the value changes resulting from the
economic relationship, or if the hedge no longer meets other conditions for hedge accounting.
The Company re-balances the hedging relationship if the risk management objective has not changed
but the hedging relationship would fail the effectiveness assessment due to hedge ratio issue.
4) Recognition and measurement
The Company accounts for the “foreign exchange risk of firm commitment” using cash flow hedge
accounting, provided that the conditions for applying hedge accounting are met. Specifically:
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge
is recognized in other comprehensive income as cash flow hedge reserve, and the portion of the gain or
loss that is hedge ineffectiveness (other gain or loss net of other comprehensive income) is recognized in
current profit or loss. The cash flow hedge reserve is the lower of the following two absolute amounts: ①
the cumulative gain or loss on the hedging instrument from inception of the hedge; ② the cumulative
change in present value of the hedged item from inception of the hedge.
The cash flow hedge reserve recognized in other comprehensive income is reclassified into current
profit or loss in the same period or periods during which the hedged expected future cash flows affect
profit or loss, e.g. when the sales are made.
(2) Work safety expenses
Work safety expenses are funds that an entity extracts according to specified standards, which are
accounted for as costs (expenses) and specifically used to enhance and improve the workplace safety
conditions of the entity or its project. When the Company makes provision for work safety expenses, these
are accounted for either as part of the costs associated with relevant products or recognized in the current
profit or loss, with an equivalent amount added to a special reserve. When the Company utilizes the
extracted work safety expenses, the expenditures classified as expenses are directly deducted from the
special reserve; expenditures classified as capital expenditures are initially accumulated through costs
incurred in construction in progress, upon completion of the safety project to the intended usable state,
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2023 Annual Report
recognized as a fixed asset, the costs of the asset is deducted from the special reserve according and an
equivalent amount of accumulated depreciation is recognized. No depreciation for the fixed asset is
provided in subsequent period.
The Company performs the provision for work safety expenses in accordance with the regulations
outlined in the notice issued by the Ministry of Finance and the Ministry of Emergency Management on
November 21, 2022, titled Management Measures for the Extraction and Utilization of Enterprise Work
Safety Expenses (CZ [2022] No. 136). The specific provision rates are as follows:
No. Provision basis Provision (%)
I. Companies producing or storing dangerous goods
1 Main business revenue for the previous year (10 million yuan and lower) 4.5%
Main business revenue for the previous year (the portion between 10 million
2 2.25%
yuan and 100 million yuan (inclusive))
Main business revenue for the previous year (the portion between 100
3 0.55%
million yuan and 1 billion yuan (inclusive))
Main business revenue for the previous year (the portion higher than 1
4 0.2%
billion yuan)
II. PV generation companies
1 Main business revenue for the previous year (10 million yuan or lower) 3%
Main business revenue for the previous year (the portion between 10 million
2 1.5%
yuan and 100 million yuan (inclusive))
Main business revenue for the previous year (the portion between 100
3 1%
million yuan and 1 billion yuan (inclusive))
Main business revenue for the previous year (the portion between 1 billion
4 0.8%
yuan and 5 billion yuan (inclusive))
Main business revenue for the previous year (the portion between 5 billion
5 0.6%
yuan and 10 billion yuan (inclusive))
Main business revenue for the previous year (the portion higher than 10
6 0.2%
billion yuan)
III. Construction companies
1 The construction and installation cost of building engineering 3%
2 The construction and installation cost of power engineering 2.5%
For an entity that extracts work safety expenses based on the previous year's operating revenue and
has newly constructed or started production for less than one year, the actual work safety expenses are
presented as incurred for the current year, and the provision for work safety expenses is performed based
on the current year's operating revenue according to the prescribed standards. If the beginning-of-month
balance of work safety expenses reaches three times or more of the amount that should be provided in the
previous year, the entity suspends the extraction of work safety expenses from that month until the balance
falls below three times the amount that should be provided in the previous year, at which point the
extraction resumes.
(3) Unexpired liability reserve/guarantee compensation reserve
Unexpired liability reserve is created at 50% of the guarantee income, and reversed after the guarantee
liability is discharged upon expiry.
Guarantee compensation reverse is created at 1% of the balance of guaranteed amount at the end of
the year, and difference extraction is performed when the cumulative reserve reaches 10% of the balance
of guaranteed amount.
The applicable scope of guarantee compensation reverse: unrecoverable guarantee compensation loss.
40. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Changes in accounting policies and reasons Items materially affected Effect
With the rapid expansion of its overseas The Company has met the
markets, the Company actively engages in requirements for applying hedge 0.00
hedging activities. To meet the demands of accounting methods since
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2023 Annual Report
business expansion, mitigate adverse effects of January 1, 2023, and has been
substantial exchange rate fluctuations, employing hedge accounting
demonstrate effective risk management since then. Prospective
practices, enhance the quality of accounting application is adopted for this
information, and increase financial stability, change in accounting policies,
the Company has opted to apply hedge therefore the financial statements
accounting in accordance with Accounting for the previous periods are not
Standards for Business Enterprises No. 24 - affected.
Hedge Accounting.
On December 13, 2022, the Ministry of
Finance issued Interpretation No. 16 of the
Accounting Standards for Business
Enterprises (“Interpretation No. 16”), which
stipulates the following: ① The accounting
treatment of deferred income tax related to
assets and liabilities arising from individual
transaction does not exempt initial
recognition; ② The accounting treatment of Refer to other
the income tax impact of dividends related to Refer to other notes for details
notes for details
financial instruments classified as equity
instruments by the issuer; ③ The accounting
treatment of cash-settled share-based
payments changed by enterprises to equity-
settled share-based payments. Among these
① is effective from January 1, 2023, and ②
and ③ are effective from the date of
publication.
Other notes
(1) Effects of the above accounting policy changes on the comparative consolidated balance sheets
for prior periods are as follows:
Unit: Yuan Currency: CNY
Balance on December 31, 2022
Item
Before adjustment After adjustment Adjustment
Deferred tax assets 1,593,765,733.23 1,924,960,856.49 331,195,123.26
Deferred tax liability 1,222,489,360.55 1,557,412,559.35 334,923,198.80
Surplus reserve 2,407,355,585.45 2,407,468,232.84 112,647.39
Undistributed profit 35,853,681,478.39 35,849,514,547.42 -4,166,930.97
Minority interest 12,447,970,426.55 12,448,296,634.59 326,208.04
(2) Effects of the above accounting policy changes on the comparative consolidated income
statements for prior periods are as follows
Unit: Yuan Currency: CNY
2022 amount
Item
Before adjustment After adjustment Adjustment
Income tax expense 5,965,924,612.33 5,958,335,362.51 -7,589,249.82
Net income 32,372,885,540.81 32,380,474,790.63 7,589,249.82
Net profit attributable to owners of
25,726,447,236.27 25,733,777,019.25 7,329,782.98
the parent company
Gain and loss of minority interest 6,646,438,304.54 6,646,697,771.38 259,466.84
(3) The effects of the above accounting policy changes on the comparative balance sheets of the
parent company for prior periods are as follows
Unit: Yuan Currency: CNY
Balance on December 31, 2022
Item
Before adjustment After adjustment Adjustment
Deferred tax assets 11,881.09 25,104,199.32 25,092,318.23
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2023 Annual Report
Deferred tax liability 23,965,844.35 23,965,844.35
Surplus reserve 2,407,355,585.45 2,407,468,232.84 112,647.39
Undistributed profit 12,251,718,068.28 12,252,731,894.77 1,013,826.49
(4) Effects of the above accounting policy changes on the comparative income statements of the
parent company for prior periods are as follows
Unit: Yuan Currency: CNY
2022 amount
Item
Before adjustment After adjustment Adjustment
Income tax expense -525,881.01 -1,629,364.85 -1,103,483.84
Net income 9,924,075,798.83 9,925,179,282.67 1,103,483.84
No other changes in significant accounting policies occurred in the reporting period except for the
said change.
(2). Changes in significant accounting estimates
"□ Applicable" "√ Not applicable"
(3). Adjustments of financial statements at the beginning of the year for which new accounting
standards or interpretations are applied for the first time in 2023
"□ Applicable" "√ Not applicable"
41. Others
"□ Applicable" "√ Not applicable"
VI. Taxes
1. Major tax types and tax rates
Major tax types and tax rates
"√Applicable" "□ Not applicable"
Tax type Tax basis Tax rate
VAT Sales amount 13%, 9%, 6%, 5%, 3%, tax exemption
Urban construction and
Turnover tax payable 1%-7%
maintenance tax
Corporate income tax Taxable income 15%, 16.5%, 17%, 20%, 25%
Education surcharge Turnover tax payable 3%
Local education surcharge Taxable income 2%
Land use tax Area of used land Local provisions
Property tax Original value x 70%, rent 1.2%, 12%
Disclose the circumstance when different corporate income tax payers exist
"□ Applicable" "√ Not applicable"
2.Tax preferences
"√Applicable" "□ Not applicable"
(1) VAT
Sales of feed by domestic companies is exempted from value added tax under the CS [2001] No. 121
document from the Ministry of Finance and the State Taxation Administration.
Sales of agricultural products directly produced by agricultural producers are exempted from value-
added tax under the Temporary Regulations on VAT of the People’s Republic of China (No. 538 order from
the State Council) and the Implementation Rules on the Temporary Regulations on VAT of the People's
Republic of China (No. 50 order from the Ministry of Finance and the State Taxation Administration).
This policy extends to revenue generated from agricultural production activities such as aquaculture
conducted by affiliated entities of the Company.
The transfer of the right-of-use of land to agricultural producers for the purpose of agricultural
production is exempted from value added tax from May 1, 2016 under the CS [2016] No. 36 document
175 / 293
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from the Ministry of Finance and the State Taxation Administration. This policy extends to transfer of the
right-of-use of land to aquaculturists for agricultural production by affiliated entities of the Company.
(2) Corporate income tax
1) Units under tax consolidation policy
Unites covered by the tax consolidation policy for corporate income tax in respect of the parent
company are “unified calculations, tiered administration, local prepayments, consolidated clearing, and
treasury adjustment” in accordance with the Corporate Income Tax Law and the Procedures for Collection
of Consolidated Corporate Income Tax for Cross-region Operations ((2012) No. 57 Announcement of the
State Taxation Administration): the parent company (including the administration headquarters and all
branches), Tongwei Agriculture Development Co., Ltd. (including the headquarters and all branches).
2) Units entitled to corporate income tax preference for enterprises for China Western Development
The Announcement on Continuing the Corporate Income Tax for Enterprises for China Western
Development ((2020) No.23 Announcement of the National Development and Reform Commission)
jointly released by the Ministry of Finance, the State Taxation Administration and the National
Development and Reform Commission provided for that enterprises in encouraged industries established
in west China are entitled to income tax rate of 15% from January 1, 2021 to December 31, 2030. This
policy applies to Sichuan Tongwei Sanlian Aquatic Products Co., Ltd., Chengdu Tongwei Sanxin
Pharmaceutical Co., Ltd., Yongxiang Polysilicon Co., Ltd., Yongxiang New Energy Co., Ltd., Yongxiang
Energy Technology Co., Ltd., Yongxiang Silicon Materials Co., Ltd., Sichuan Yongxiang PV Technology
Co., Ltd., Inner Mongolia Tongwei High-purity Crystalline Silicon Company, Yunnan Tongwei High-
purity Crystalline Silicon Company, Tongwei Solar (Chengdu) Co.,Ltd., Tongwei Solar (Meishan) Co.,
Ltd., Tongwei Solar (Jintang) Co., Ltd., Tonghe New Energy (Jintang) Co., Ltd., Tongwei Solar (Pengshan)
Co., Ltd., Tongwei Solar (Sichuan) Co., Ltd., and PV powerplant companies in West China.
3) Units approved as high-tech enterprises are entitled to corporate income tax rate of 15%
Approval
No. High-tech enterprise name Certificate No.
date
1 Guangdong Tongwei Feed Co., Ltd. 2023 GR202344000790
2 Jieyang Tongwei Feed Co., Ltd. 2021 GR202144000333
3 Zhuhai Haiyi Aquatic Products Feed Co., Ltd. 2021 GR202144012792
4 Sichuan Willtest Technology Co., Ltd. 2021 GR202151001355
5 Sichuan Fusion Link Co., Ltd. 2023 GR202351002052
6 Chengdu Tongwei Automation Equipment Co., Ltd. 2021 GR202151001846
7 Chengdu Tongwei Animal Nutrition Technology Co., Ltd. 2022 GR202251001505
8 Tongwei Solar (Anhui) Co., Ltd. 2023 GR202334005839
9 Tongwei New Energy Engineering Design Sichuan Co., Ltd. 2023 GR202351000783
4) Subsidiaries engaged in seawater mariculture and inland aquaculture with entitlement in 50%
reduction of income tax
The Article 86 of the Implementation Regulations on the Enterprise Income Tax of the People's
Republic of China issued on December 6, 2007, the income from in mariculture and inland aquaculture is
subject to 50% reduction in income tax. This policy extends to units including Hainan Haiyi Aquatic Seed
Co., Ltd., Zhanjiang Haiyi Aquatic Seed Co., Ltd., Chengdu Tongwei Aquatic Seed Co., Ltd., Dongying
Tongwei fisher Tongwei Aquaculture-Photovoltaic Integration (Rudong) Co., Ltd. Dongying Tongwei
Fishery Co., Ltd., Qingdao Hairen Aquatic Seed Industry Technology Co., Ltd., and Nanjing Tongwei
Aquaculture Technology Co., Ltd.
5) Overseas subsidiaries entitled to tax preferences
The 218/2013/N-CP document issued by the Government of Vietnam on December 26, 2013, the
statutory rate of corporate income tax in Vietnam was reduced to 20% from January 1, 2016. The tax
preferences to which Heping Tongwei Co., Ltd. is entitled: a 10-year preference period for its feed business
from the start of the production and operation, exemption from income tax for two years and 50% income
tax for four years from the start of the profitability period. The tax preferences to which Qianjiang Tongwei
Co., Ltd. is entitled: a 15-year preference period for its feed business from the start of the production and
operation during which the tax rate is 10%, exemption from income tax for four years and 50% income
tax for nine years from the start of the profitability period. The tax preferences to which Haiyang Tongwei
Co., Ltd. is entitled: a preferential tax rate of 10% during the tax incentive period for newly invested
aquatic feed businesses.
For Tongwei Feed Mill Bangladesh Ltd., the interest income on bank deposits out of its total profit is
176 / 293
2023 Annual Report
subject to an income tax rate of 35% (10% is withheld by banks), net income from non-operating activities
is subject to an income tax rate of 35%. The profit net of interest income and non-operating income is
subject to multi-level income tax rate: 0% for the amount less than (including) 1 million BDT; 5% for the
amount between 1 and 2 million BDT (including 2 million); 10% for the amount between 2 million and 3
million BDT (including 3 million); and 15% for the amount over 3 million BDT.
6) Tax preferences for public infrastructure projects with key national supports
According to the Notice of the Ministry of Finance of the People's Republic of China and State
Taxation Administration on Relevant Issues Concerning the Implementation of the Preferential Catalog of
Enterprise Income Tax for Public Infrastructure Projects (CS [2008] No.46), the income from investment
and operation of enterprises engaged in public infrastructure projects supported by the State are exempt
from enterprise income tax from the first to the third year starting from the tax year in which the first
production and operation income of the project is obtained, and the enterprise income tax is halved from
the fourth to the sixth year.
According to the provisions of CS [2008] No. 116, new solar power generation projects approved by
the competent investment department of the government are public infrastructure projects. Now, new PV
powerplants of the subsidiaries of Tongwei New Energy Co., Ltd. have been connected to the grid for
power generation, are entitled to the three-year exemption and three-year 50% reduction of income tax.
3. Others
"□ Applicable" "√ Not applicable"
VII. Notes to items in consolidated financial statements
1. Cash at bank and on hand
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Cash in hand 590,810.25 152,905.98
Cash at bank 19,405,930,550.81 36,810,223,406.34
Other cash at bank and on hand 11,916,421.83 31,195,817.69
Total 19,418,437,782.89 36,841,572,130.01
Including: total deposits overseas 362,506,221.95 104,247,603.68
Other notes
For details on cash at bank and on hand that are restricted at the end of the period, refer to “assets with
restricted ownership or use right”.
2. Held-for-trading financial assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Designation reason
Item Closing balance Opening balance
and basis
Financial assets measured at
fair value through current 10,064,061,762.38 4,298,524,475.70 /
profit or loss
Including:
Debt investments 10,054,851,638.72 4,278,667,572.63 /
Derivative financial assets 9,210,123.66 19,856,903.07 /
Total 10,064,061,762.38 4,298,524,475.70 /
Other notes:
"√Applicable" "□ Not applicable"
Note 1: Debt instrument investments refer to structured bank deposits and wealth management products
purchased by the Company.
Note 2: Derivative financial assets are paper gains on undelivered foreign exchange derivatives not
meeting the criteria for applying hedge accounting or with hedge ineffectiveness.
3. Derivative financial assets
"√Applicable" "□ Not applicable"
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Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Forward exchange contracts 5,842,475.20
Total 5,842,475.20
Other notes:
Note: Derivative financial assets are unrealized gains on designated and effective hedging instruments,
namely foreign exchange forward contracts.
4. Notes receivable
(1). Presentations of notes receivable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Letters of credit 847,559,026.34 2,450,913,663.89
Total 847,559,026.34 2,450,913,663.89
(2). Notes receivable pledged by the Company as of the end of the period
"□ Applicable" "√ Not applicable"
(3). Notes receivable endorsed or discounted by the Company as of the end of the period that have
not been due on the balance sheet date
"□ Applicable" "√ Not applicable"
(4). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision ratio
Not applicable
Note on significant changes in balances of notes receivable for which their provisions were changed in
current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Notes receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant notes receivable written off:
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2023 Annual Report
"□ Applicable" "√ Not applicable"
Notes on write-off of notes receivable:
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
5. Accounts receivable
(1). Disclosure by age
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance Opening book balance
Within 1 year
In which: Subitems within one year
Within one year 6,095,340,261.80 3,791,028,295.86
Subtotal within one year 6,095,340,261.80 3,791,028,295.86
1- 2 years 420,182,205.23 402,092,947.42
2- 3 years 344,585,435.99 401,470,215.73
Over 3 years 549,816,615.25 210,301,102.61
Total 7,409,924,518.27 4,804,892,561.62
179 / 293
2023 Annual Report
(2). Disclosure by how bad debt provision is created
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Carrying Carrying
Percent Provision Percent Provision
Amount Amount value Amount Amount value
(%) (%) (%) (%)
Individual bad
112,052,269.47 1.51 1,120,522.68 1.00 110,931,746.79 67,797,723.02 1.41 2,048,007.32 3.02 65,749,715.70
debt provision
Combined
provision for bad 7,297,872,248.80 98.49 420,950,916.97 5.77 6,876,921,331.83 4,737,094,838.60 98.59 301,481,924.16 6.36 4,435,612,914.44
debts
Including:
Combination 2 1,806,530,865.66 24.38 79,383,533.10 4.39 1,727,147,332.56 1,416,738,083.83 29.49 65,681,707.01 4.64 1,351,056,376.82
Combination 3 25,100.00 25,100.00
Combination 4 5,491,316,283.14 74.11 341,567,383.87 6.22 5,149,748,899.27 3,320,356,754.77 69.10 235,800,217.15 7.10 3,084,556,537.62
Total 7,409,924,518.27 / 422,071,439.65 / 6,987,853,078.62 4,804,892,561.62 / 303,529,931.48 / 4,501,362,630.14
180 / 293
2023 Annual Report
Individual bad debt provision:
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance
Name Provision for Provision
Book balance Provision (%)
bad debts reason
Price of feed delivered to overseas
112,052,269.47 1,120,522.68 1.00 Note 1
customers secured by banks
Total 112,052,269.47 1,120,522.68 1.00 /
Note on individual bad debt provision:
"√Applicable" "□ Not applicable"
Note 1: Price of feed delivered to overseas customers are fully secured by local banks. The security banks
will make payments unconditionally when the payments are due, which are at a low risk, the provision
percentage is set as 1% accordingly.
Combined provision for bad debts:
"√Applicable" "□ Not applicable"
Combined provision: Combination 2
Unit: Yuan Currency: CNY
Closing balance
Name Provision for bad
Accounts receivable Provision (%)
debts
Power supply companies
266,867,555.73
(desulfurization electricity price)
Electricity price subsidies 1,539,663,309.93 79,383,533.10 5.16
Total 1,806,530,865.66 79,383,533.10 4.39
Notes on combined provision for bad debts:
"√Applicable" "□ Not applicable"
The desulfurization electricity prices are recovered within the settlement period for no risk, no provision
for bad debts is created; electricity price subsidies have been included into the national subsidy catalog,
the subsides that have not been included into the catalog are presented in contract assets.
Combined provision: Combination 3
Unit: Yuan Currency: CNY
Closing balance
Name Accounts
Provision for bad debts Provision (%)
receivable
Zhuhai Haiwei Feed Co., Ltd. 25,100.00
Total 25,100.00
Notes on combined provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision: Combination 4
Unit: Yuan Currency: CNY
Closing balance
Name
Accounts receivable Provision for bad debts Provision (%)
Within 1 year 5,317,608,700.66 265,880,435.03 5.00
1- 2 95,971,693.78 9,597,169.38 10.00
2- 3 23,292,218.48 11,646,109.24 50.00
Over 3 years 54,443,670.22 54,443,670.22 100.00
Total 5,491,316,283.14 341,567,383.87 6.22
Notes on combined provision for bad debts:
"□ Applicable" "√ Not applicable"
Provision for bad debts under the general model for expected credit loss
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2023 Annual Report
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision ratio
Not applicable
Notes on significant changes in balances of accounts receivable for which their provisions were changed
in current period:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Closing
Category Recovered Charged off Other
balance Provision balance
or reversed or written off changes
Individual
2,048,007.32 -927,484.64 1,120,522.68
provision
Risk
301,481,924.16 135,631,663.31 24,994,437.01 8,831,766.51 420,950,916.97
combination
Total 303,529,931.48 134,704,178.67 24,994,437.01 8,831,766.51 422,071,439.65
Note: Other changes are from three sources: the bad debt provision of 9,627,384.63 yuan due to contract
assets transferred to accounts receivables; foreign currency translation difference of -818,960.12 yuan, and
the recovery of previously written-off accounts receivable of 23,342.00 yuan.
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(4). Accounts receivable written off in current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Written off amount
Accounts receivable written off 24,994,437.01
Significant accounts receivable written off
"□ Applicable" "√ Not applicable"
Note on write-off of accounts receivable:
"□ Applicable" "√ Not applicable"
(5). Top five debtor entities in accounts receivable and contract assets at the end of the current
period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent of total
Closing Closing balance
Closing balance closing balance of Closing
balance of of accounts
Entity name of accounts accounts receivable balance of bad
contract receivable and
receivable and contract assets debt provision
assets contract assets
(%)
Pig farming
entities under
1,697,256,035.50 1,697,256,035.50 21.22 84,862,801.78
Tech-bank
(Note)
Entity 1 645,873,722.43 645,873,722.43 8.08 32,293,686.12
Entity 2 504,552,110.47 504,552,110.47 6.31 26,808,912.88
Entity 3 386,502,021.32 386,502,021.32 4.83 19,325,101.07
Entity 4 240,300,023.13 240,300,023.13 3.00 12,015,001.16
Total 3,474,483,912.85 3,474,483,912.85 43.44 175,305,503.01
182 / 293
2023 Annual Report
Other notes
Note: the ages of accounts receivable from the pig farming entities under Tech-bank Food Co., Ltd.
(“Tech-bank”) were all within 1 year, and the amounts were within the payment term agreed in the contract
and have been recovered after the period.
Other notes:
"□ Applicable" "√ Not applicable"
6. Contract assets
(1). Contract assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Provision for Provision for
Book balance Carrying value Book balance Carrying value
bad debts bad debts
Electricity
price 587,706,065.73 29,882,152.69 557,823,913.04 630,254,246.71 32,323,051.12 597,931,195.59
subsidies
Total 587,706,065.73 29,882,152.69 557,823,913.04 630,254,246.71 32,323,051.12 597,931,195.59
Note: Presentation in the contract assets are subsidies that have not been included into the national subsidy
catalog, the subsides that have been included into the catalog are presented in accounts receivable.
(2). Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
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2023 Annual Report
(3).Disclosure by how bad debt provision is created
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Percent Provision Carrying value Percent Provision Carrying value
Amount Amount Amount Amount
(%) (%) (%) (%)
Individual bad debt
provision
Combined provision
587,706,065.73 100.00 29,882,152.69 5.08 557,823,913.04 630,254,246.71 100.00 32,323,051.12 5.13 597,931,195.59
for bad debts
Including:
Combination 2 587,706,065.73 100.00 29,882,152.69 5.08 557,823,913.04 630,254,246.71 100.00 32,323,051.12 5.13 597,931,195.59
Total 587,706,065.73 / 29,882,152.69 / 557,823,913.04 630,254,246.71 / 32,323,051.12 / 597,931,195.59
184 / 293
2023 Annual Report
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on creation of individual provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"√Applicable" "□ Not applicable"
Combined provision: Combination 2
Unit: Yuan Currency: CNY
Closing balance
name
Contract assets Provision for bad debts Provision (%)
Electricity price
587,706,065.73 29,882,152.69 5.08
subsidies
Total 587,706,065.73 29,882,152.69 5.08
Notes on combined provision for bad debts
"□ Applicable" "√ Not applicable"
Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision rate
Not applicable
Notes on significant changes in book balances of contract assets for which their provisions were changed
in current period:
"□ Applicable" "√ Not applicable"
(4). Bad debt provision for contract assets in current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Created in Recovered or Charged
Other
Item current reversed in off/written-off in Reason
changes
period current period current period
Electricity price
7,186,486.20 -9,627,384.63
subsidies
Total 7,186,486.20 -9,627,384.63 /
Note: Other changes are from the bad debt provision charged off due to contract assets transferred to
accounts receivable.
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(5). Contract assets written off in current period
"□ Applicable" "√ Not applicable"
Significant contract assets written off
"□ Applicable" "√ Not applicable"
Other notes on contract assets:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
7. Receivables financing
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2023 Annual Report
(1). Receivables financing presented by category
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Banker's acceptances 13,328,061,144.72 13,066,496,368.98
Total 13,328,061,144.72 13,066,496,368.98
(2). Receivables financing pledged by the Company as of the end of the period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing pledge amount
Banker's acceptances 10,290,501,471.18
Total 10,290,501,471.18
(3). Receivables financing endorsed or discounted by the Company as of the end of the period
that have not been due on the balance sheet date
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount de-recognized at the end Amount not derecognized at the
Item
of the period end of the period
Banker's acceptances 13,948,693,622.33
Total 13,948,693,622.33
(4). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on individual bad debt provision:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision rate
Not applicable
Note on significant changes in book balances of receivables financing for which their provisions were
changed in the current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Receivables financing written off in current period
"□ Applicable" "√ Not applicable"
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2023 Annual Report
Significant receivables financing written off:
"□ Applicable" "√ Not applicable"
Notes on the write-off:
"□ Applicable" "√ Not applicable"
(7). Change in receivables financing and change in fair value in current period:
"□ Applicable" "√ Not applicable"
(8). Other notes:
"□ Applicable" "√ Not applicable"
8. Prepayments
(1).Prepayments by age
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Age
Amount Percent (%) Amount Percent (%)
Within 1 year 1,329,468,865.85 98.75 1,477,431,107.85 99.35
1- 2 years 14,418,596.47 1.07 7,294,527.86 0.49
2- 3 years 1,250,479.77 0.09 802,288.11 0.05
Over 3 years 1,192,090.17 0.09 1,645,068.90 0.11
Total 1,346,330,032.26 100.00 1,487,172,992.72 100.00
Note on the reason for significant prepayments over 1 year:
None.
(2). Top five entities in prepayments at the end of the current period
"√Applicable" "□ Not applicable"
Percent in the total advances at
Entity name Closing balance
the end of the period (%)
Entity 1 324,113,547.24 24.07
Entity 2 134,552,892.60 9.99
Entity 3 114,074,568.83 8.47
Entity 4 97,848,633.17 7.27
Entity 5 85,961,554.71 6.38
Total 756,551,196.55 56.18
Other notes
"□ Applicable" "√ Not applicable"
9. Other receivables
(1). Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 488,199,686.93 477,514,347.63
Total 488,199,686.93 477,514,347.63
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
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2023 Annual Report
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
(3). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on creation of individual provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision rate
Notes on significant changes in book balances of interest receivable for which their provisions were
changed in current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Interest receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant interest receivable written off:
"□ Applicable" "√ Not applicable"
Notes on the write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Dividends receivable
(1). Dividends receivable
"□ Applicable" "√ Not applicable"
(2). Significant dividends receivable aged over 1 year
"□ Applicable" "√ Not applicable"
(3). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
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Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on creation of individual provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Stage criteria and bad debt provision rate
Notes on significant changes in book balances of dividends receivable for which their provisions were
changed in current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Dividends receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant dividends receivable written off:
"□ Applicable" "√ Not applicable"
Notes on the write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(1). Disclosure by age
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance Opening book balance
Within 1 year
In which: Subitems within one year
Within one year 364,409,243.30 313,924,039.39
Subtotal within one year 364,409,243.30 313,924,039.39
1- 2 years 45,396,370.76 85,395,361.21
2- 3 years 47,168,842.69 48,547,965.01
Over 3 years 113,586,637.23 120,425,876.85
Total 570,561,093.98 568,293,242.46
(2). Classification by nature of payment
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing book balance Opening book balance
Performance bond 435,121,576.24 422,137,512.78
189 / 293
2023 Annual Report
Advances 55,512,719.30 41,079,914.03
Insurance claims 33,541.12 22,111,905.64
Others 79,893,257.32 82,963,910.01
Total 570,561,093.98 568,293,242.46
(3). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
12-Month Lifetime expected Lifetime expected
Provision for bad debts Total
expected credit credit loss (without credit loss (with
loss credit impairment) credit impairment)
Balance on January 01,
13,329,602.40 77,449,292.43 90,778,894.83
2023
The Jan 1, 2022 balance
during current period
-- converted into stage II
-- converted into stage III -3,737,365.10 3,737,365.10
-- reversed into stage II
-- reversed into stage I
Created in current period -3,904,469.87 -776,046.54 -4,680,516.41
Reversed in current period
Charged off in current
period
Written off in current
3,737,365.10 3,737,365.10
period
Other changes 393.73 393.73
Balance on December 31,
9,425,526.26 72,935,880.79 82,361,407.05
2023
Stage criteria and bad debt provision rate
Refer to Notes V “financial instruments” and “other receivables”.
Note on significant changes in book balances of other receivables for which their provisions were changed
in current period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Recovered Closing
Category Charged off Other
balance Provision or balance
or written off changes
reversed
Other
90,778,894.83 -4,680,516.41 3,737,365.10 393.73 82,361,407.05
receivables
Total 90,778,894.83 -4,680,516.41 3,737,365.10 393.73 82,361,407.05
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(5). Other receivables written off in current period
"√Applicable" "□ Not applicable"
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2023 Annual Report
Unit: Yuan Currency: CNY
Item Written off amount
Other receivables written off in current period 3,737,365.10
Significant receivable written off:
"□ Applicable" "√ Not applicable"
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(6). Top five entities in other receivables at the end of the current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the total
Provision for bad
Closing other receivables
Entity name Payment type Age debts
balance at the end of the
Closing balance
period (%)
Performance
Entity 1 41,164,875.54 7.21 Note 1
bond
Performance
Entity 2 36,360,000.00 6.37 Within 1 year
bond
Performance
Entity 3 30,000,000.00 5.26 2- 3
bond
Performance
Entity 4 21,880,000.00 3.84 Within 1 year
bond
Performance
Entity 5 20,553,398.40 3.60 Note 2
bond
Total 149,958,273.94 26.28 / /
Note 1: The closing balance for entity 1: 30,280,726.77 yuan within 1 year, and 10,884,148.77 yuan
between 1 and 2 years.
Note 2: The closing balance for entity 5: 14,726,216.00 yuan within 1 year, and 5,827,182.40 yuan for
over 3 years.
(7). Items presented in other receivables due to centralized management of funds
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
10. Inventories
(1). Classification of inventories
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision for Provision for
Item obsolete obsolete
Book balance inventory/provision Carrying value Book balance inventory/provision Carrying value
for impairment on for impairment on
fulfillment costs fulfillment costs
Raw materials 3,530,159,824.77 21,356,856.17 3,508,802,968.60 3,933,801,975.56 76,889,145.51 3,856,912,830.05
Work-in-
507,162,477.00 - 507,162,477.00 472,567,045.48 472,567,045.48
process
Packing
60,118,727.31 60,118,727.31 33,585,149.60 33,585,149.60
materials
Goods in stock 1,546,834,493.23 51,234,006.89 1,495,600,486.34 3,583,696,215.78 252,067,262.23 3,331,628,953.55
Materials for
63,911,188.65 63,911,188.65 59,575,288.33 59,575,288.33
repeated use
191 / 293
2023 Annual Report
Consumable
35,024,084.71 7,843,337.72 27,180,746.99 51,893,637.87 7,843,337.72 44,050,300.15
biological assets
Materials in
7,206,009.05 7,206,009.05 13,153,709.97 13,153,709.97
transit
Materials for
processing on 192,945,303.29 8,511,117.63 184,434,185.66 664,990,947.31 7,357,102.19 657,633,845.12
consignment
Costs to fulfill
378,443,450.87 378,443,450.87 49,524,009.90 49,524,009.90
contracts
Goods in transit 1,589,281,670.61 33,756,483.96 1,555,525,186.65 2,598,930,595.62 114,912,619.39 2,484,017,976.23
Total 7,911,087,229.49 122,701,802.37 7,788,385,427.12 11,461,718,575.42 459,069,467.04 11,002,649,108.38
(2). Provision for obsolete inventory and provision for impairment on fulfillment costs
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current increase Current decrease
Item Opening balance Closing balance
Provision Others Reversed or carryforward Others
Raw materials 76,889,145.51 39,934,340.73 95,466,630.07 21,356,856.17
Goods in stock 252,067,262.23 1,095,136,074.01 1,295,969,329.35 51,234,006.89
Consumable biological
7,843,337.72 7,843,337.72
assets
Materials for processing on
7,357,102.19 34,733,466.46 33,579,451.02 8,511,117.63
consignment
Goods in transit 114,912,619.39 135,220,874.44 216,377,009.87 33,756,483.96
Total 459,069,467.04 1,305,024,755.64 1,641,392,420.31 122,701,802.37
Reasons for reversal or carryforward of provision for obsolete inventory in current period
"√Applicable" "□ Not applicable"
The carryforward of provision for obsolete inventory in current period is caused by consumption of
inventory in production and sale of inventory.
Combined provision for obsolete inventory
"□ Applicable" "√ Not applicable"
Critera for combined provision for obsolete inventory
"□ Applicable" "√ Not applicable"
(3). Capitalized amount of borrowing costs contained in closing balance of inventories, and its
calculation criteria and basis
"□ Applicable" "√ Not applicable"
(4). Note on amount of fulfillment costs amortized in current period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
11. Assets held for sale
"□ Applicable" "√ Not applicable"
12. Non-current assets due within one year
"□ Applicable" "√ Not applicable"
Debt investments due within one year
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2023 Annual Report
"□ Applicable" "√ Not applicable"
Other debt investments due within one year
"□ Applicable" "√ Not applicable"
Other notes on non-current assets due within one year
Not applicable
13. Other current assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Input tax credit 2,331,977,496.99 680,785,868.61
Corporate income tax prepayment 63,114,608.15 105,330,225.62
Other tax prepayments 16,520,591.84 291,639.83
Total 2,411,612,696.98 786,407,734.06
14. Debt investments
(1). Debt investments
"□ Applicable" "√ Not applicable"
Changes in impairment provision for debt investments in current period
"□ Applicable" "√ Not applicable"
(2). Significant debt investments at the end of the period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Stage criteria and impairment provision rate:
Not applicable
Note on significant changes in book balances of debt investments for which their provisions were changed
in the current period:
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in credit
risks of financial instruments
"□ Applicable" "√ Not applicable"
(4). Debt investments written off in current period
"□ Applicable" "√ Not applicable"
Significant debt investments written off
"□ Applicable" "√ Not applicable"
Note on the write-off of debt investments:
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
15. Other debt investments
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2023 Annual Report
(1). Other debt investments
"□ Applicable" "√ Not applicable"
Changes in impairment provision for other debt investments in current period
"□ Applicable" "√ Not applicable"
(2). Other significant debt investments at the end of the current period
"□ Applicable" "√ Not applicable"
(3). Impairment provision
"□ Applicable" "√ Not applicable"
Stage criteria and impairment provision rate:
Not applicable
Note on significant changes in book balances of other debt investments for which their provisions were
changed in the current period:
"□ Applicable" "√ Not applicable"
Impairment provisions created in current period and basis for determining significant increases in credit
risks of financial instruments
"□ Applicable" "√ Not applicable"
(4). Other debt investments written off in current period
"□ Applicable" "√ Not applicable"
Significant other debt investments written off
"□ Applicable" "√ Not applicable"
Note on the write-off of other debt investments:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
16. Long-term receivables
(1). Long-term receivables
"□ Applicable" "√ Not applicable"
(2). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on creation of individual provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
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2023 Annual Report
Stage criteria and bad debt provision rate
Not applicable
Notes on significant changes in book balances of long-term receivables for which their provisions were
changed in current period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for the current period
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(5). Long-term receivables written off in current period
"□ Applicable" "√ Not applicable"
Significant long-term receivables written off
"□ Applicable" "√ Not applicable"
Note on write-off of long-term receivables:
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
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2023 Annual Report
17. Long-term equity investments
(1). Long-term equity investments
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Adjustment of Closing balance
Opening Investment gain Other Declared cash Closing
Investee Additional Decreased other Impairment of impairment
balance or loss under changes in dividend or Others balance
investments investments comprehensive provision provision
equity method equity profit
income
I. Joint ventures
Maoming Tongwei Jiuding
5,276,085.47 5,276,085.47
Feed Co., Ltd.
BioMar Tongwei (Wuxi)
102,158,843.80 7,681,447.27 109,840,291.07
Biotech Co., Ltd.
Sub-total 107,434,929.27 5,276,085.47 7,681,447.27 109,840,291.07
II. Associates
Bohai Aquaculture Co., Ltd. 100,890,726.77 -6,751,271.86 -191,873.99 93,947,580.92
Haimao Seed Industry
54,287,017.99 -19,888,422.82 34,398,595.17 59,072,119.96
Technology Co., Ltd.
Anhui Tech-bank
23,741,623.52 -480,489.79 23,261,133.73
Biotechnology Co., Ltd.
Anhui Tech-bank Feed
61,151,352.63 -831,802.78 60,319,549.85
Technology Co., Ltd.
Suzhou Taiyangjing New
43,081,500.03 50,000,000.00 -16,718,532.86 76,362,967.17
Energy Co., Ltd.
Sichuan Haicheng Carbon
11,551,526.45 2,035,021.87 13,586,548.32
Products Co., Ltd.
Sub-total 283,152,220.94 61,551,526.45 -42,635,498.24 -191,873.99 34,398,595.17 267,477,779.99 59,072,119.96
Total 390,587,150.21 61,551,526.45 5,276,085.47 -34,954,050.97 -191,873.99 34,398,595.17 377,318,071.06 59,072,119.96
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2023 Annual Report
(2). Impairment test of long-term equity investments
"√Applicable" "□ Not applicable"
Net recoverable amount determined as the fair value less cost of disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Carrying Recoverable Impairment Key
Item How to determine fair value and cost of disposal determining key
value amount amount parameters
parameters
The fair value is determined using the replacement
The degree of
cost method, specifically: the fair value of a current
depreciation is
asset is based on the verified value; that of a
based on the
Haimao tangible asset is based on the full replacement cost Degree of
economic useful
Seed and the degree of depreciation (economic depreciation,
life; market life on
Industry 34,398,595.17 0.00 34,398,595.17 depreciation is considered for an asset not in normal market price
the transaction
Technology operating condition); that of a land use right is based and cost of
cases of similar
Co., Ltd. on the corrected market value; that of a liability is disposal
assets and cost of
based on the verified value or the actual liability.
disposal on the
The cost of disposal is estimated according to the
quotation.
tax rate and quotation.
Total 34,398,595.17 0.00 34,398,595.17 / / /
The recoverable amount is determined by the present value of expected future cash flow
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the foregoing information and the information used in
impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous years
and the information about the current year
"□ Applicable" "√ Not applicable"
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2023 Annual Report
18. Other equity investments
(1). Other equity investments
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period Reasons for
Accumulated
Gains Losses Dividend Accumulated designation as
losses
recognized in recognized in income gains recognized measurement at
Opening Closing recognized in
Item Additional Decreased other other recognized in other fair value
balance Others balance other
investments investments comprehensive comprehensive in current comprehensive through other
comprehensive
income in income in period income comprehensive
income
current period current period income
Chengdu Tongwei Management
154,196,557.28 4,415,402.51 158,611,959.79 11,924,159.79
Property Co., Ltd. mode
Total 154,196,557.28 4,415,402.51 158,611,959.79 11,924,159.79 /
(2). De-recognition in current period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
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2023 Annual Report
19. Other non-current financial assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Sichuan Electricity Trading Center Co., Ltd. 6,271,248.25 3,146,248.25
Total 6,271,248.25 3,146,248.25
Other notes:
"□ Applicable" "√ Not applicable"
20. Investment properties
Measurement models for investment properties
(1). Investment properties measured at cost
Unit: Yuan Currency: CNY
Premises and Construction
Item Land use rights Total
buildings in progress
I. Original carrying value
1. Opening balance 162,080,432.71 21,630,000.00 183,710,432.71
2. Current increase
(1) Purchased
(2) Conversion from
stock/fixed assets/construction
in progress
(3) Increase from business
combination
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 162,080,432.71 21,630,000.00 183,710,432.71
II. Accumulated depreciation and accumulated amortization
1. Opening balance 36,337,786.69 9,967,853.03 46,305,639.72
2. Current increase 3,963,317.72 663,836.28 4,627,154.00
(1) Depreciation or
3,963,317.72 663,836.28 4,627,154.00
amortization
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 40,301,104.41 10,631,689.31 50,932,793.72
III. Impairment provision
1. Opening balance 29,692,565.20 29,692,565.20
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance 29,692,565.20 29,692,565.20
IV. Carrying value
1. Closing carrying value 92,086,763.10 10,998,310.69 103,085,073.79
2. Opening carrying value 96,050,080.82 11,662,146.97 107,712,227.79
(2). Investment properties for which title certificates are not obtained
"□ Applicable" "√ Not applicable"
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2023 Annual Report
(3). Impairment test of investment properties measured at cost
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
21. Fixed assets
(1) Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Fixed assets 68,269,937,695.31 53,291,583,073.49
Disposal of fixed assets 26,532.65 385,795.71
Total 68,269,964,227.96 53,291,968,869.20
Other notes:
"□ Applicable" "√ Not applicable"
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2023 Annual Report
6. Fixed assets
(1). Fixed assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Premises and Machinery PV generation Transportation
Item Office equipment Total
buildings equipment equipment vehicles
I. Original carrying value:
1. Opening balance 16,204,545,499.05 37,933,751,365.93 13,468,580,322.62 405,893,007.54 364,875,470.86 68,377,645,666.00
2. Current increase 6,402,139,070.87 18,699,975,527.58 1,015,544,349.71 156,511,593.90 87,314,399.36 26,361,484,941.42
(1) Purchase 575,752,495.75 359,646.03 152,124,611.40 57,365,302.68 785,602,055.86
(2) Conversion from construction in
6,872,288,827.80 16,575,454,258.87 1,205,684,891.68 4,874,388.72 30,379,175.35 24,688,681,542.42
progress
(3) Conversion from right-of-use assets 998,618,065.71 998,618,065.71
(4) Adjustment from final accounts of
-458,338,643.94 557,335,991.63 -190,500,188.00 -292,481.35 -91,795,321.66
construction completion
(5) Effect of foreign currency translation -11,811,112.99 -7,185,284.38 -487,406.22 -137,597.32 -19,621,400.91
3. Current decrease 82,383,977.93 2,363,108,095.03 48,908,507.89 30,262,823.12 24,841,170.50 2,549,504,574.47
(1) Disposal or scrap 62,026,890.18 1,842,466,070.58 48,908,507.89 30,111,113.72 24,313,754.55 2,007,826,336.92
(2) Conversion to construction in progress 514,679,326.91 514,679,326.91
(3) Decrease in disposal of subsidiaries 20,357,087.75 5,962,697.54 151,709.40 527,415.95 26,998,910.64
4. Closing balance 22,524,300,591.99 54,270,618,798.48 14,435,216,164.44 532,141,778.32 427,348,699.72 92,189,626,032.95
II. Accumulated depreciation
1. Opening balance 2,926,823,963.83 8,166,455,983.42 1,574,524,440.37 191,846,211.41 210,948,525.55 13,070,599,124.58
2. Current increase 639,943,354.68 4,983,116,063.58 480,097,206.22 74,880,381.78 43,606,648.58 6,221,643,654.84
(1) Provision 695,144,617.34 4,756,330,371.51 508,205,960.99 75,146,835.62 43,821,209.26 6,078,648,994.72
(2) Conversion from right-of-use assets 151,310,345.13 151,310,345.13
(3) Adjustment from final accounts of
-51,626,849.01 79,868,628.59 -28,108,754.77 -133,024.81
construction completion
(4) Effect of foreign currency translation -3,574,413.65 -4,393,281.65 -266,453.84 -81,535.87 -8,315,685.01
3. Current decrease 48,461,122.13 810,417,783.72 6,512,458.76 25,157,076.19 18,868,823.22 909,417,264.02
(1) Disposal or scrap 34,050,097.47 705,238,363.30 6,512,458.76 25,012,952.26 18,365,446.02 789,179,317.81
(2) Conversion to construction in progress 99,504,560.13 99,504,560.13
(3) Decrease in disposal of subsidiaries 14,411,024.66 5,674,860.29 144,123.93 503,377.20 20,733,386.08
4. Closing balance 3,518,306,196.38 12,339,154,263.28 2,048,109,187.83 241,569,517.00 235,686,350.91 18,382,825,515.40
201 / 293
2023 Annual Report
III. Impairment provision
1. Opening balance 147,384,490.44 1,235,062,476.02 632,978,465.02 8,388.29 29,648.16 2,015,463,467.93
2. Current increase 4,066,664,914.98 438,022,117.97 4,504,687,032.95
(1) Provision 3,952,828,085.55 438,022,117.97 4,390,850,203.52
(2) Conversion to construction in progress 113,836,829.43 113,836,829.43
3. Current decrease 983,253,046.76 34,631.88 983,287,678.64
(1) Disposal or scrap 869,416,217.33 34,631.88 869,450,849.21
(2) Conversion to construction in progress 113,836,829.43 113,836,829.43
4. Closing balance 147,384,490.44 4,318,474,344.24 1,070,965,951.11 8,388.29 29,648.16 5,536,862,822.24
IV. Carrying value
1. Closing carrying value 18,858,609,905.17 37,612,990,190.96 11,316,141,025.50 290,563,873.03 191,632,700.65 68,269,937,695.31
2. Opening carrying value 13,130,337,044.78 28,532,232,906.49 11,261,077,417.23 214,038,407.84 153,897,297.15 53,291,583,073.49
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2023 Annual Report
(2). Fixed assets in temporary idleness
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Original carrying Accumulated Impairment
Item Carrying value Notes
value depreciation provision
Premises and
27,550,389.12 17,860,968.56 9,689,420.56
buildings
Machinery equipment 27,621,968.87 17,474,062.40 7,269,391.16 2,878,515.31
Transportation
84,000.00 79,800.00 4,200.00
equipment
Office equipment 1,215,424.72 1,154,901.44 60,523.28
Total 56,471,782.71 36,569,732.40 7,269,391.16 12,632,659.15
(3). Fixed assets leased out by operating lease
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing carrying value
Premises and buildings 113,010,582.93
Machinery equipment 8,698,792.67
Transportation equipment 117,988.28
Office equipment 495,349.10
Total 122,322,712.98
(4). Fixed assets for which title certificates are not obtained
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for not
Item Carrying value obtaining title
certificate
Premises of Sichuan Yongxiang New Energy Co., Ltd. 196,567,237.15 In progress
Premises of Inner Mongolia Tongwei High-purity Crystalline
460,852,219.39 In progress
Silicon Company
Premises of Yunnan Tongwei High-purity Crystalline Silicon
756,507,686.17 In progress
Company
Premises of Sichuan Yongxiang PV Technology Co., Ltd. 789,282,431.76 In progress
Premises of Sichuan Yongxiang Energy Technology Co., Ltd. 665,687,029.59 In progress
Premises of Tonghe New Energy (Jintang) Co., Ltd. 925,252,085.07 In progress
Premises of Tongwei Solar (Chengdu) Co., Ltd. 561,407,631.75 In progress
Premises of Tongwei Solar (Jintang) Co., Ltd. 777,305,051.27 In progress
Premises of Tongwei Solar (Meishan) Co., Ltd. 1,300,440,613.38 In progress
Premises of Tongwei Solar (Pengshan) Co., Ltd. 1,183,889,354.50 In progress
Premises of Tongwei Solar (Sichuan) Co., Ltd. 672,833,657.35 In progress
Premises of Tongwei Solar (Yancheng) Co., Ltd. 1,696,584,230.97 In progress
Premises of Tongwei Solar (Nantong) Co., Ltd. 655,327,036.29 In progress
Premises of Tongwei Solar (Hefei) Co., Ltd. 127,621,124.42 In progress
Premises of Tongwei (Hainan) Aquatic Products Co., Ltd. 17,171,820.60 In progress
Premises of Huaian Tongwei Feed Co., Ltd. 845,406.33 In progress
Premises of Xiamen Tongwei Feed Co., Ltd. 690,734.38 In progress
Premises of Nanchang Tongwei Biotechnology Co., Ltd. 2,029,382.74 In progress
Premises of Hainan Tongwei Biotechnology Co., Ltd. 1,398,152.73 In progress
Premises of Hainan Haiyi Aquatic Products Feed Co., Ltd. 3,420,096.14 In progress
Premises of Qianxi Tongwei Feed Co., Ltd. 4,550,768.86 In progress
Premises of Fuzhou Tongwei William Feed Co., Ltd. 118,830,897.63 In progress
Premises of Huizhou Tongwei Biotechnology Co., Ltd. 9,033,019.07 In progress
203 / 293
2023 Annual Report
Premises of Deyang Branch, Tongwei Agriculture
1,845,892.12 In progress
Development Co., Ltd.
Premises of Nantong Bada Feed Co., Ltd. 34,887,526.73 In progress
Premises of Changchun Tongwei Feed Co., Ltd. 1,031,446.00 In progress
Premises of Qingdao Qihao Biotechnology Co., Ltd. 35,855,708.13 In progress
Total 11,001,148,240.52
(5). Impairment test of fixed assets
"√Applicable" "□ Not applicable"
Net recoverable amount determined as the fair value less cost of disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Recoverable Impairment How to determine fair value Key determining
Item Carrying value
amount amount and cost of disposal parameters key
parameters
The fair value is determined
based on market quotations
Fair value Estimated
and selling prices of similar
Machinery and according
2,509,507,169.85 112,235,920.70 2,397,271,249.15 assets, while disposal costs
equipment disposal to
are determined based on tax
cost quotations
rate and quotations of the
Company.
Total 2,509,507,169.85 112,235,920.70 2,397,271,249.15 / / /
The recoverable amount is determined by the present value of expected future cash flow
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Key Key
Years of determining
Recoverable Impairment parametersparameters
Item Carrying value forecast key
amount amount for stable
for forecast
period parameters for
period period
stable period
Not
Not
applicable,
applicable, the
Discount the whole
Machinery whole cycle
11,603,013,684.41 10,047,456,848.01 1,555,556,836.40 1.5- 5 rate 9.46%- cycle
equipment covered by
10.76% covered by
forecast
forecast
period
period
Not
Not
applicable,
applicable, the
PV Discount the whole
whole cycle
generation 1,894,756,217.97 1,456,734,100.00 438,022,117.97 18.5-23 rate 7.21%- cycle
covered by
equipment 8.73% covered by
forecast
forecast
period
period
Total 13,497,769,902.38 11,504,190,948.01 1,993,578,954.37 / / / /
Note: The Company performed impairment testing of the asset groups relating to machinery equipment
that showed the indication of impairment on June 30, 2023 and December 31, 2023; as such, the book
value, recoverable amount and impairment amount presented in associated asset groups under the
“impairment test of fixed assets” are the sum of the book values, recoverable amounts and impairment
amounts for these asset groups from the two tests.
Reason for the significant discrepancy between the foregoing information and the information used
in impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous
years and the information about the current year
"□ Applicable" "√ Not applicable"
204 / 293
2023 Annual Report
Other notes:
"□ Applicable" "√ Not applicable"
Disposal of fixed assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Disposal of fixed assets 26,532.65 385,795.71
Total 26,532.65 385,795.71
22. Construction in progress
(1) Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Construction in progress 14,087,203,416.77 3,752,450,983.65
Construction materials 729,312,456.19 244,946,016.27
Total 14,816,515,872.96 3,997,396,999.92
Other notes:
"□ Applicable" "√ Not applicable"
205 / 293
2023 Annual Report
Construction in progress
(1). Construction in progress
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Phase I 120,000-ton High-purity Polysilicon Project
381,530,955.21 381,530,955.21 581,846,907.06 581,846,907.06
of Yongxiang Energy Technology
Phase II 200,000-ton High-purity Polysilicon Project
6,970,733,610.79 6,970,733,610.79 19,012,818.39 19,012,818.39
of Yunnan Tongwei
Phase I 200,000-ton High-purity Polysilicon Project
2,380,645,957.95 2,380,645,957.95 350,921.43 350,921.43
of Inner Mongolia Silicon Energy
15 GW Monocrystalline Rod Pulling and Cutting
34,170,812.99 34,170,812.99 94,842,688.37 94,842,688.37
Project of Yongxiang PV Technology
Phase III 120,000-ton High-purity Polysilicon and
Supporting Facility Project of Yongxiang New 31,983,082.56 31,983,082.56
Energy
25 GW High-efficiency Modules Manufacturing
27,658,363.24 27,658,363.24 14,423,633.63 14,423,633.63
Base Project of Yancheng Solar
25 GW High-efficiency Modules Manufacturing
879,328,054.02 879,328,054.02
Base Project of Nantong Solar
16 GW High-efficiency Modules Manufacturing
49,214,098.10 49,214,098.10
Base Project of Sichuan Solar
Phase V 25 GW High-efficiency Cell Project of
183,356,702.60 183,356,702.60
Chengdu Solar
Phase I 16 GW High-efficiency Cell Project of
16,958,086.14 16,958,086.14 68,845,194.01 68,845,194.01
Pengshan Solar
Phase III 9 GW High-efficiency Cell Project of
193,974,872.39 193,974,872.39 1,907,004,489.28 1,907,004,489.28
Meishan Solar
Other constructions 3,276,642,260.78 338,993,440.00 2,937,648,820.78 1,066,124,331.48 1,066,124,331.48
Total 14,426,196,856.77 338,993,440.00 14,087,203,416.77 3,752,450,983.65 3,752,450,983.65
206 / 293
2023 Annual Report
(2). Changes in significant construction in progress in current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Interest
Including:
Amount converted Cumulative Cumulative capitalization Sources
Opening Other current Closing Construction interest
Project name Budget Current increase to fixed assets in cost to interest rate in of
balance decreases balance progress (%) capitalized in
current period budget (%) capitalized current funds
current period
period (%)
Phase I 1200,000-ton High-
purity Polysilicon Project of Self
6,000,000,000.00 581,846,907.06 5,153,915,923.87 5,322,813,806.12 31,418,069.60 381,530,955.21 95.60 99 35,326,318.30 31,243,274.04 3.09
Yongxiang Energy funding
Technology
Phase II 200,000-ton High-
Self
purity Polysilicon Project of 10,079,410,000.00 19,012,818.39 6,951,847,868.32 127,075.92 6,970,733,610.79 69.16 66 34,686,454.89 34,686,454.89 2.13
funding
Yunnan Tongwei
Phase I 200,000-ton High-
purity Polysilicon Project of Self
9,687,780,000.00 350,921.43 2,380,295,036.52 2,380,645,957.95 24.57 35 985,098.93 985,098.93 3.01
Inner Mongolia Silicon funding
Energy
Raising
15 GW Monocrystalline Rod
fund
Pulling and Cutting Project 4,103,929,600.00 94,842,688.37 54,854,609.43 111,354,157.11 4,172,327.70 34,170,812.99 79.19 98
and self
of Yongxiang PV Technology
funding
Phase III 120,000-ton High-
purity Polysilicon and Self
6,000,000,000.00 31,983,082.56 31,983,082.56 0.53 Preparation
Supporting Facility Project funding
of Yongxiang New Energy
25 GW High-efficiency
Modules Manufacturing Self
5,719,130,000.00 14,423,633.63 4,961,957,897.89 4,555,344,410.57 393,378,757.71 27,658,363.24 87.01 99 3,774,225.02 3,774,225.02 2.92
Base Project of Yancheng funding
Solar
25 GW High-efficiency
Modules Manufacturing Self
4,992,160,000.00 2,242,654,697.35 1,139,662,586.29 223,664,057.04 879,328,054.02 44.92 57
Base Project of Nantong funding
Solar
16 GW High-efficiency
Modules Manufacturing Self
2,500,000,000.00 2,187,872,369.64 1,977,907,309.41 160,750,962.13 49,214,098.10 87.51 98
Base Project of Sichuan funding
Solar
Phase V 25 GW High-
Self
efficiency Cell Project of 9,800,000,000.00 558,749,062.32 375,392,359.72 183,356,702.60 5.70 4
funding
Chengdu Solar
Phase I 16 GW High- 6,000,000,000.00 68,845,194.01 5,397,726,844.80 5,395,446,954.37 54,166,998.30 16,958,086.14 91.11 99 9,989,722.21 9,989,722.21 2.90 Self
207 / 293
2023 Annual Report
efficiency Cell Project of funding
Pengshan Solar
Phase III 9 GW High-
Self
efficiency Cell Project of 2,890,859,800.00 1,907,004,489.28 1,027,943,059.38 2,735,130,581.65 5,842,094.62 193,974,872.39 101.53 98
funding
Meishan Solar
Other constructions 1,066,124,331.48 6,001,996,097.17 3,450,894,660.98 340,583,506.89 3,276,642,260.78 143,970,681.54 42,585,686.91
Total 67,773,269,400.00 3,752,450,983.65 36,951,796,549.25 24,688,681,542.42 1,589,369,133.71 14,426,196,856.77 / / 228,732,500.89 123,264,462.00 / /
208 / 293
2023 Annual Report
(3). Impairment provision for construction in progress in current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing Provision
Item
balance increase decrease balance reason
Other constructions 338,993,440.00 338,993,440.00
Total 338,993,440.00 338,993,440.00 /
Note: The machinery equipment in this technical upgrading project did not reach the intended outcome,
and showed an indication of impairment. After the impairment, an impairment provision was created.
(4). Impairment test of construction in progress
"√Applicable" "□ Not applicable"
Net recoverable amount determined as the fair value less cost of disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
How to Basis for
Recoverable Impairment determine fair Key determining
Item Carrying value
amount amount value and cost parameters key
of disposal parameters
The fair value is
determined
based on market
quotations and
selling prices of Fair value Estimated
Other similar assets, and according
411,396,086.79 72,402,646.79 338,993,440.00
constructions while disposal disposal to
costs are cost quotations
determined
based on tax rate
and quotations
of the Company.
Total 411,396,086.79 72,402,646.79 338,993,440.00 / / /
The recoverable amount is determined by the present value of expected future cash flow
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the foregoing information and the information used in
impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous years
and the information about the current year
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
Construction materials
(1). Construction materials
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Special
618,380.56 618,380.56 152,590,656.82 152,590,656.82
equipment
209 / 293
2023 Annual Report
Special
728,694,075.63 728,694,075.63 92,355,359.45 92,355,359.45
materials
Total 729,312,456.19 729,312,456.19 244,946,016.27 244,946,016.27
23. Productive biological assets
(1). Productive biological assets measured at cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Aquaculture
Item Total
Category Category
I. Original carrying value
1. Opening balance 40,288.55 30,787,237.99 30,827,526.54
2. Current increase 16,412,700.13 16,412,700.13
(1) Purchased 16,412,700.13 16,412,700.13
(2) Self-cultivated
3. Current decrease 28,773.48 28,773.48
(1) Disposal 28,773.48 28,773.48
(2) Others
4. Closing balance 11,515.07 47,199,938.12 47,211,453.19
II. Accumulated depreciation
1. Opening balance 38,274.16 21,719,856.77 21,758,130.93
2. Current increase 23,674,154.04 23,674,154.04
(1) Provision 23,674,154.04 23,674,154.04
3. Current decrease 27,334.80 27,334.80
(1) Disposal 27,334.80 27,334.80
(2) Others
4. Closing balance 10,939.36 45,394,010.81 45,404,950.17
III. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
(2) Others
4. Closing balance
IV. Carrying value
1. Closing carrying value 575.71 1,805,927.31 1,806,503.02
2. Opening carrying value 2,014.39 9,067,381.22 9,069,395.61
(2). Impairment test of productive biological assets measured at cost
"□ Applicable" "√ Not applicable"
(3). Productive biological assets measured at fair value
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
24. Oil and gas assets
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2023 Annual Report
(1) Oil and gas assets
"□ Applicable" "√ Not applicable"
(2) Impairment test of oil and gas assets
"□ Applicable" "√ Not applicable"
25. Right-of-use assets
(1).Right-of-use assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Premises and
Item Machinery equipment Land and water surface Total
buildings
I. Original carrying value
1. Opening balance 160,827,276.26 1,477,934,996.58 3,560,100,489.53 5,198,862,762.37
2. Current increase 67,688,847.82 788,141,907.00 621,199,185.18 1,477,029,940.00
(1) Leased-in in current
117,688,539.96 791,793,894.24 619,664,143.97 1,529,146,578.17
period
(2) Adjustment from
modifications of terms -49,999,692.14 -3,651,987.24 1,535,041.21 -52,116,638.17
of lease contracts
3. Current decrease 2,062,511.01 998,618,065.71 627,772,023.84 1,628,452,600.56
(1) Written-off upon
1,874,314.09 153,034,309.82 154,908,623.91
lease expiry
(2) Scrap or disposal 188,196.92 474,737,714.02 474,925,910.94
(3) Conversion to fixed
998,618,065.71 998,618,065.71
assets
4. Closing balance 226,453,613.07 1,267,458,837.87 3,553,527,650.87 5,047,440,101.81
II. Accumulated depreciation
1. Opening balance 33,678,568.42 83,922,647.40 1,017,840,414.67 1,135,441,630.49
2. Current increase 18,918,946.74 131,817,982.94 167,739,041.32 318,475,971.00
(1) Provision 18,918,946.74 131,817,982.94 167,739,041.32 318,475,971.00
(2) Increase from
business combination
3. Current decrease 1,988,887.01 151,310,345.13 277,308,037.15 430,607,269.29
(1) Disposal 1,874,314.09 153,034,309.82 154,908,623.91
(2) Written-off upon
114,572.92 124,273,727.33 124,388,300.25
lease expiry
(3) Conversion to fixed
151,310,345.13 151,310,345.13
assets
4. Closing balance 50,608,628.15 64,430,285.21 908,271,418.84 1,023,310,332.20
III. Impairment provision
1. Opening balance
2. Current increase 11,025,146.55 22,261,715.77 33,286,862.32
(1) Provision 11,025,146.55 22,261,715.77 33,286,862.32
3. Current decrease
(1) Disposal
4. Closing balance 11,025,146.55 22,261,715.77 33,286,862.32
IV. Carrying value
1. Closing carrying
175,844,984.92 1,192,003,406.11 2,622,994,516.26 3,990,842,907.29
value
2. Opening carrying
127,148,707.84 1,394,012,349.18 2,542,260,074.86 4,063,421,131.88
value
211 / 293
2023 Annual Report
(2).Impairment test of right-of-use assets
"√Applicable" "□ Not applicable"
Net recoverable amount determined as the fair value less cost of disposal
"□ Applicable" "√ Not applicable"
The recoverable amount is determined by the present value of expected future cash flow
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Key determining
Key
Recoverable Impairment Years of parameters key
Item Carrying value parameters for
amount amount forecast period for stable parameters
forecast period
period for stable
period
Not Not
applicable, applicable,
the whole the whole
Discount rate
Water surface 24,726,604.68 2,464,888.91 22,261,715.77 22.75 cycle cycle
9.06%
covered by covered by
forecast forecast
period period
Not Not
applicable, applicable,
the whole the whole
Machinery Discount rate
193,173,672.97 182,148,526.42 11,025,146.55 5 cycle cycle
equipment 9.46%
covered by covered by
forecast forecast
period period
Total 217,900,277.65 184,613,415.33 33,286,862.32 / / / /
Reason for the significant discrepancy between the foregoing information and the information used
in impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous
years and the information about the current year
"□ Applicable" "√ Not applicable"
212 / 293
2023 Annual Report
26. Intangible assets
(1). Intangible assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Right to use
Non-patented
Item Land use rights Patents Software Trademarks transmission Franchises Total
technologies
lines
I. Original carrying value
1. Opening balance 2,325,062,670.86 149,685,999.97 193,889,298.16 187,338,029.53 97,333,717.50 56,092,043.98 32,282,731.00 3,041,684,491.00
2. Current increase 2,302,910,390.04 20,000.00 64,698,238.73 673,234.19 44,905,081.00 2,413,206,943.96
(1) Purchase 883,688,066.54 20,000.00 29,891,121.01 44,905,081.00 958,504,268.55
(2) Internal research and
development
(3) Increase from business
combination
(4) Conversion from
1,419,353,889.37 34,807,117.72 1,454,161,007.09
construction in progress
(5) Effect of foreign
-131,565.87 -131,565.87
currency translation
(6) Adjustment from final
accounts of construction 673,234.19 673,234.19
completion
3. Current decrease 4,517,987.00 12,000.00 7,182,022.66 11,712,009.66
(1) Disposal 12,000.00 7,164,162.66 7,176,162.66
(2) Decrease in subsidiaries 4,517,987.00 17,860.00 4,535,847.00
4. Closing balance 4,623,455,073.90 149,693,999.97 193,889,298.16 244,854,245.60 97,333,717.50 56,765,278.17 77,187,812.00 5,443,179,425.30
II. Accumulated amortization
1. Opening balance 307,834,638.54 25,615,546.77 56,672,694.06 89,168,469.60 93,101,185.83 10,408,912.51 3,054,543.31 585,855,990.62
2. Current increase 75,336,029.20 10,620,877.18 19,811,647.19 29,621,339.89 590,690.00 2,112,238.59 3,608,684.55 141,701,506.60
(1) Provision 75,495,626.93 10,620,877.18 19,811,647.19 29,621,339.89 590,690.00 2,112,238.59 3,608,684.55 141,861,104.33
(2) Effect of foreign
-159,597.73 -159,597.73
currency translation
3. Current decrease 1,302,686.45 12,000.00 4,369,911.28 5,684,597.73
(1) Disposal 12,000.00 4,352,051.28 4,364,051.28
(2) Decrease in subsidiaries 1,302,686.45 17,860.00 1,320,546.45
213 / 293
2023 Annual Report
4. Closing balance 381,867,981.29 36,224,423.95 76,484,341.25 114,419,898.21 93,691,875.83 12,521,151.10 6,663,227.86 721,872,899.49
III. Impairment provision
1. Opening balance
2. Current increase
(1) Provision
3. Current decrease
(1) Disposal
4. Closing balance
IV. Carrying value
1. Closing carrying value 4,241,587,092.61 113,469,576.02 117,404,956.91 130,434,347.39 3,641,841.67 44,244,127.07 70,524,584.14 4,721,306,525.81
2. Opening carrying value 2,017,228,032.32 124,070,453.20 137,216,604.10 98,169,559.93 4,232,531.67 45,683,131.47 29,228,187.69 2,455,828,500.38
Intangible assets generated from internal research and development accounts for 0% of the closing balance of intangible assets.
214 / 293
2023 Annual Report
(2). Land use rights for which title certificates are not obtained
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Reason for not obtaining title
Item Carrying value
certificate
Land used by Tongwei Solar (Chengdu) Co., Ltd. 48,858,580.35 In progress
Land used by Huizhou Tongwei Biotechnology
6,807,027.97 In progress
Co., Ltd.
Land used by Xiamen Tongwei Feed Co., Ltd. 3,575,899.97 In progress
Land used by Huaian Tongwei Feed Co., Ltd. 560,766.82 In progress
Total 59,802,275.11
(3). Impairment test of intangible assets
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
27. Goodwill
(1). Original carrying value of goodwill
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Current increase
Investee or event generating Opening decrease
Closing balance
goodwill balance From business
Disposal
combination
Goodwill of Tongwei Solar 591,542,868.55 591,542,868.55
Goodwill of Tech-bank Feed
142,833,083.90 142,833,083.90
Co., Ltd.
Goodwill of Hainan Haiyi 22,461,157.77 22,461,157.77
Goodwill of Zhuhai Haiyi 21,814,691.67 21,814,691.67
Goodwill for which
impairment provision has
22,284,806.12 22,284,806.12
been fully created in
previous years
Total 800,936,608.01 800,936,608.01
(2). Impairment provision for goodwill
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Investee or event Opening Current increase
decrease Closing balance
generating goodwill balance
Provision Disposal
Goodwill of Tongwei
110,094,000.00 118,011,368.55 228,105,368.55
Solar
Goodwill of Tech-bank
65,551,308.87 7,849,860.69 73,401,169.56
Feed Co., Ltd.
Goodwill for which
impairment provision has
22,284,806.12 22,284,806.12
been fully created in
previous years
Total 197,930,114.99 125,861,229.24 323,791,344.23
215 / 293
2023 Annual Report
(3). Information relating to asset group or combination of asset groups where the goodwill belongs
"√Applicable" "□ Not applicable"
Consistent
Composition of asset group or combination of
with
Name asset groups and the criteria for such group or Segment and criteria
previous
combination
years
Combination of Operating long-lived assets and goodwill
PV segment; internal
asset groups relating allocated to such asset group; minimum unit of
organizational Yes
to goodwill of assets that can independently generate cash
structure
Tongwei Solar flows
Agriculture and
Combination of Operating long-lived assets and goodwill
animal husbandry
asset groups relating allocated to such asset group; minimum unit of
segment; internal Yes
to goodwill of Tech- assets that can independently generate cash
organizational
bank Feed Co., Ltd. flows
structure
Agriculture and
Operating long-lived assets and goodwill
Asset group relating animal husbandry
allocated to such asset group; minimum unit of
to goodwill of segment; internal Yes
assets that can independently generate cash
Hainan Haiyi organizational
flows
structure
Agriculture and
Combination of Operating long-lived assets and goodwill
animal husbandry
asset groups relating allocated to such asset group; minimum unit of
segment; internal Yes
to goodwill of assets that can independently generate cash
organizational
Zhuhai Haiyi flows
structure
Changes in asset group or combination of asset groups
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
(4). Determination of recoverable amount
Net recoverable amount determined as the fair value less cost of disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
How to determine
Recoverable Impairment Key determining
Item Carrying value fair value and cost
amount amount parameters key
of disposal
parameters
Combination The fair value is
of asset determined based
groups on market
Fair value Estimated
relating to quotations while
and according
goodwill of 412,965,577.37 4,554,500.00 15,220,600.00 disposal costs are
disposal to
Tongwei determined based
cost quotations
Solar - on tax rate and
impaired after quotations of the
test Company.
Total 412,965,577.37 4,554,500.00 15,220,600.00 / / /
The recoverable amount is determined by the present value of expected future cash flow
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
216 / 293
2023 Annual Report
Basis for Key
Key parameters determini parameters for Basis for
Years of for forecast ng key stable period determining
Impairment
Item Carrying value Recoverable amount forecast period (growth parameter (growth rate, key
amount
period rate, profit s for profit margin, parameters for
margin, etc.) forecast discount rate, stable period
period etc.)
Not Not
Combination of Profit margin: - Company
applicable, the applicable, the
asset groups relating 7.0% to 14.2%, planning
whole cycle whole cycle
to goodwill of 5,711,855,931.05 4,759,637,700.00 102,790,768.55 1.5-5 discount rate: and
covered by covered by
Tongwei Solar - 9.46% to industry
forecast forecast
impaired after test 10.76% situation
period period
With
Combination of Company
Profit margin: - Profit margin: reference to
asset groups relating planning
2.9% to 31.3%, 11.9 to 29.1%, the last year
to goodwill of 6,398,132,732.94 17,775,031,500.00 5 and
discount rate: discount rate: within
Tongwei Solar - not industry
11.66% 11.66%. forecast
impaired after test situation
period
With
Company
Asset group relating Profit margin: Profit margin: reference to
planning
to goodwill of Tech- 1.7% to 6.8%; 6.8%; the last year
1,145,584.54 7,856,165.26 5 and
bank Feed Co., Ltd. discount rate: discount rate: within
industry
- core goodwill 9.45% 9.45% forecast
situation
period
Based on the
remaining
amortization
Asset group relating
years for the
to goodwill of Tech- Not Not
76,586,163.73 68,736,303.04 7,849,860.69 value Not applicable Not applicable
bank Feed Co., Ltd.- applicable applicable
increment
non-core goodwill
during asset
valuation at
acquisition
Based on With
Profit margin: company Profit margin: reference to
Asset group relating
1.4% to 2.6%; planning 2.6%; the last year
to goodwill of 62,833,646.71 70,012,100.00 5
discount rate: and discount rate: within
Hainan Haiyi
9.45% industry 9.45% forecast
situation period
Based on With
Profit margin: company Profit margin: reference to
Asset group relating
0.9% to 3%; planning 1.2% to 1.6%; the last year
to goodwill of 200,216,841.28 270,740,300.00 5
discount rate: and discount rate: within
Zhuhai Haiyi
9.45% industry 9.45% forecast
situation period
Total 12,450,770,900.25 22,952,014,068.30 110,640,629.24 / / / / /
Reason for the significant discrepancy between the foregoing information and the information used in
impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous
years and the information about the current year
"□ Applicable" "√ Not applicable"
(5). Performance commitment and goodwill impairment
Performance commitment exists when the goodwill is generated, and the reporting period or its previous
period is within the performance commitment period
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
217 / 293
2023 Annual Report
28. Deferred expenses
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Amortization in Closing
Item Current increase Other decrease
balance current period balance
Expense for
improvements
161,791,102.59 16,300,429.95 51,348,708.73 55,763,808.68 70,979,015.13
of long-term
assets
Decoration
157,863,264.97 69,923,611.04 50,424,466.89 177,362,409.12
expense
Others 39,910,532.51 15,447,628.50 23,383,398.43 31,974,762.58
Total 359,564,900.07 101,671,669.49 125,156,574.05 55,763,808.68 280,316,186.83
29. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets not offset
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Deductible Deductible Deferred income
Item Deferred income tax
temporary temporary tax
Assets
difference difference Assets
Provision for asset
4,267,342,966.77 707,622,828.65 2,256,674,882.39 402,795,236.91
impairment
Unrealized gain on
internal 1,990,284,375.60 299,401,102.00 2,751,537,922.22 423,457,310.00
transactions
Deductible loss 3,779,245,821.93 610,985,287.81 58,023,069.45 9,282,943.58
Decrease in
depreciation due
to decreased -141,007,380.68 -19,713,458.07 -39,266,319.74 -4,603,953.08
provision for asset
impairment
Depreciation of
fixed assets
greater than the 74,861,128.38 11,229,169.26 83,228,601.01 12,484,290.15
depreciation under
tax laws
Claims reserve 15,075,970.09 3,768,992.52 17,774,435.23 4,443,608.81
Employee benefits 4,092,475,573.26 624,429,860.62 3,964,862,186.96 594,729,328.04
Paper loss of held-
for-trading 64,230,257.65 9,635,384.04
financial liabilities
Estimated
559,416,370.93 126,171,661.24 177,993,077.06 26,698,961.56
liabilities
Deferred income 642,675,382.87 109,584,776.40 692,274,458.64 111,129,338.65
Deduction of gain
at consolidation on
increase in 20,241,808.27 3,036,271.24 24,755,230.47 3,713,284.57
assessed value of
land
Effect of lease
1,754,598,793.62 348,969,222.40 1,742,821,858.76 331,195,123.26
liabilities
Effect of income
32,399,113.70 4,859,867.05
tax due to
218 / 293
2023 Annual Report
temporary
differences in
special reserve
Paper loss on
derivative
198,032.70 29,704.91
financial
instruments
Total 17,087,807,957.44 2,830,375,286.03 11,794,909,660.10 1,924,960,856.49
(2). Deferred tax liabilities not offset
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Deferred income Taxable Deferred income
Item Taxable temporary
tax temporary tax
difference
Liabilities difference Liabilities
Increase in assessed value
from business combinations 327,549,705.75 76,003,913.37 360,307,872.46 84,508,900.31
under different control
Change in fair value of
other debt investments
Change in fair value of
other equity investments
Effects of one-time pre-tax
deduction for equipment
9,624,686,890.67 1,458,288,721.14 6,650,967,370.42 1,007,325,075.89
and appliance less than 5
million yuan
Amortization of fixed assets
less than the amortization 706,442,012.89 105,966,301.93 856,150,608.82 128,422,591.32
under tax laws
Discounted income from
5,760,114.68 864,017.20
interest-free debts
Paper gain on held-for-
154,825,984.64 38,706,496.16 7,788,828.24 1,368,775.83
trading financial assets
Effect of right-of-use assets 1,784,176,785.48 352,134,403.45 1,772,242,156.36 334,923,198.80
Paper gain on derivative
5,215,688.46 1,049,905.63
financial instruments
Total 12,602,897,067.89 2,032,149,741.68 9,653,216,950.98 1,557,412,559.35
(3). Net amount after offsetting deferred tax assets or liabilities
"□ Applicable" "√ Not applicable"
(4). Details of un-recognized deferred tax assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Deductible temporary difference 3,024,659,728.32 1,034,958,855.15
Deductible loss 7,041,320,277.88 6,055,471,972.83
Total 10,065,980,006.20 7,090,430,827.98
(5). Deductible losses on deferred tax assets not recognized that will be due in the following years
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
219 / 293
2023 Annual Report
Year Closing amount Opening amount Notes
2023 116,616,691.24
2024 163,010,299.74 201,981,863.88
2025 345,949,479.77 426,453,093.92
2026 1,128,121,023.35 1,107,701,974.53
2027 2,804,921,937.52 4,202,718,349.26
2028 and later 2,599,317,537.50
Total 7,041,320,277.88 6,055,471,972.83 /
Other notes:
"□ Applicable" "√ Not applicable"
30. Other non-current assets
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Costs to obtain
contracts
Costs to fulfill
contracts
Costs of returns
receivable
Contract assets
Input tax credit
563,569,669.95 563,569,669.95 129,047,943.34 129,047,943.34
under VAT
Prepayments for
engineering 4,512,356,553.23 4,512,934,970.97 2,554,289,711.33 2,554,289,711.33
equipment
Land
8,884,267.69 8,884,267.69 19,362,354.02 19,362,354.02
prepayments
Others 624,815.74 46,398.00 884,768.56 884,768.56
Total 5,085,435,306.61 5,085,435,306.61 2,703,584,777.25 2,703,584,777.25
Other notes:
Input tax credit under VAT whose deduction is expected to be within a year is presented under other non-
current assets.
220 / 293
2023 Annual Report
31. Assets with restricted ownership or use right
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing Opening
Item Restriction Restriction
Book balance Carrying value Restriction description Book balance Carrying value Restriction description
type type
Cash at bank Deposit and frozen operating Deposit and frozen operating
20,180,579.81 20,180,579.81 Others 25,374,248.91 25,374,248.91 Others
and on hand funds funds
Provide collaterals for Provide collaterals for financing
Fixed assets 3,867,904,301.98 2,580,050,636.19 Collateral 7,085,688,900.77 5,957,339,958.31 Collateral
financing of the Company of the Company
Intangible Provide collaterals for Provide collaterals for financing
271,337,614.83 206,797,418.39 Collateral 512,080,826.69 445,149,567.28 Collateral
assets financing of the Company of the Company
Provides pledges for the bank Provides pledges for the bank
Receivables
10,290,501,471.18 10,290,501,471.18 Pledge acceptance bills issued by the 9,665,638,659.50 9,665,638,659.50 Pledged acceptance bills issued by the
financing
Company Company
Accounts Provide collaterals for the Provide collaterals for the
695,031,196.37 662,393,867.47 Pledged 736,777,313.08 715,625,583.47 Pledged
receivable Company's financing Company's financing
Provide collaterals for the Provide collaterals for the
Contract assets 318,623,720.81 304,252,258.14 Pledged 372,929,285.70 355,864,692.87 Pledged
Company's financing Company's financing
Machinery and equipment
Machinery and equipment under
Right-of-use under financial lease with
1,265,862,757.43 1,190,775,692.05 Others 1,476,023,552.43 1,392,343,524.16 Others financial lease with legal
assets legal ownership vested in the
ownership vested in the lessor
lessor
Investment Provide collaterals for Provide collaterals for financing
122,407,976.93 69,623,260.99 Collateral 122,407,976.93 72,509,754.87 Collateral
properties financing of the Company of the Company
Total 16,851,849,619.34 15,324,575,184.22 / / 19,996,920,764.01 18,629,845,989.37 / /
221 / 293
2023 Annual Report
32. Short-term borrowings
(1). Classification of short-term borrowings
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Pledge borrowings
Mortgage borrowings 1,959,519.77
Guarantee borrowings 32,275,024.55
Credit borrowings 140,965,950.06 20,015,972.23
Trade finance loan 71,090,648.76 35,476,127.44
Total 214,016,118.59 87,767,124.22
(2). Overdue short-term borrowings
"□ Applicable" "√ Not applicable"
Significant overdue short-term borrowings:
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
33. Held-for-trading financial liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Designation reason
Item Opening balance Closing balance
and basis
Held-for-trading financial /
liabilities
Including:
Financial liabilities designated to
be measured at fair value 64,351,114.48
through current profit or loss
Including:
Derivative financial liabilities 64,351,114.48
Total 64,351,114.48 /
Other notes:
"□ Applicable" "√ Not applicable"
34. Derivative financial liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Forward exchange contracts 4,844,001.27
Total 4,844,001.27
Other notes:
Derivative financial liabilities are unrealized losses on designated and effective hedging instruments,
namely foreign exchange forward contracts.
35. Notes payable
(1).Presentation of notes payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
222 / 293
2023 Annual Report
Type Closing balance Opening balance
Commercial
acceptances
Banker's acceptances 10,170,942,576.98 8,840,732,429.14
Letters of credit 2,661,074.20 10,690,936.81
Total 10,173,603,651.18 8,851,423,365.95
Total amount of overdue notes payable as of the end of the period is 0.00. The reason for overdue is: none.
36. Accounts payable
(1). Presentation of accounts payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 16,191,341,671.93 9,158,290,478.11
1- 2 years 847,309,341.65 1,696,665,608.81
2- 3 years 240,435,056.89 127,094,781.97
Over 3 years 96,724,422.27 36,110,668.41
Total 17,375,810,492.74 11,018,161,537.30
(2). Material accounts payable with an age over 1 year or overdue
"□ Applicable" "√ Not applicable"
Other notes
"√Applicable" "□ Not applicable"
Accounts payable with an age over 1 year are mainly equipment and engineering prices payable by the
Company.
37. Advances from customers
(1). Presentation of advances from customers
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Within 1 year 38,153,564.66 26,743,540.63
1- 2 years 1,270,471.14 5,902,926.55
2- 3 years 394,422.39 1,973,487.73
Over 3 years 639,303.98 1,847,939.73
Total 40,457,762.17 36,467,894.64
(2). Significant advances from customers with an age over 1 year
"□ Applicable" "√ Not applicable"
(3). Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
38. Contract liabilities
(1). Contract liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
223 / 293
2023 Annual Report
Customer advances 3,841,372,717.47 5,405,872,108.61
Total 3,841,372,717.47 5,405,872,108.61
(2). Material contract liabilities with an age over 1 year
"□ Applicable" "√ Not applicable"
(3). Significant changes in carrying values in the reporting period and reasons for the changes
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
39. Employee benefits payable
(1). Presentation of employee benefits payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Short-term benefits 3,141,064,588.92 8,044,746,251.70 8,427,318,246.22 2,758,492,594.40
II. Post-employment benefits
417,899,923.33 417,899,923.33
- defined contribution plans
III. Termination benefits 5,153,926.89 5,153,926.89
IV. Other benefits due within
one year
Total 3,141,064,588.92 8,467,800,101.92 8,850,372,096.44 2,758,492,594.40
(2). Presentation of short-term benefits
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
I. Salaries, bonuses,
3,036,947,018.09 7,073,195,381.04 7,461,974,303.91 2,648,168,095.22
allowances and subsidies
II. Employee benefit expense 399,237,116.90 399,237,116.90
III. Social insurance expense 224,251,770.80 224,251,770.80
Including: Medical insurance
200,608,378.32 200,608,378.32
expense
Work injury insurance
18,442,033.04 18,442,033.04
expense
Maternity insurance expense 5,201,359.44 5,201,359.44
IV. House provident fund 141,446,555.38 141,446,555.38
V. Union funds and
104,117,570.83 206,615,427.58 200,408,499.23 110,324,499.18
education expense
VI. Short-term paid leave
VII. Short-term profit
sharing plan
Total 3,141,064,588.92 8,044,746,251.70 8,427,318,246.22 2,758,492,594.40
(3). Presentation of defined contribution plans
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing
Item
balance increase decrease balance
1. Basic pension insurance 403,478,515.38 403,478,515.38
2.Unemployment 14,421,407.95 14,421,407.95
224 / 293
2023 Annual Report
insurance expense
3.Enterprise annuity
expense
Total 417,899,923.33 417,899,923.33
Other notes:
"□ Applicable" "√ Not applicable"
40. Taxes payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
VAT 59,011,385.15 437,308,048.59
Corporate income tax 479,180,892.86 2,423,575,096.10
Personal income tax 33,399,765.54 39,520,951.40
Urban construction and
4,389,327.30 14,363,121.16
maintenance tax
Stamp duty 35,532,037.78 32,256,582.08
Property tax 18,589,489.50 6,104,220.08
Land use tax 7,787,139.03 3,361,264.48
Others 7,524,539.63 17,591,719.68
Total 645,414,576.79 2,974,081,003.57
41. Other payables
(1). Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest payable
Dividend payable
Other payables 1,962,529,948.17 2,142,680,307.16
Total 1,962,529,948.17 2,142,680,307.16
Other notes:
"□ Applicable" "√ Not applicable"
(2). Interest payable
Presentation by category
"□ Applicable" "√ Not applicable"
Material interest payable overdue
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(3). Dividend payable
Presentation by category
"□ Applicable" "√ Not applicable"
(4). Other payables
Other payable by nature
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
225 / 293
2023 Annual Report
Item Closing balance Opening balance
Current accounts with related-
11,831,187.35 2,853,250.00
parties
Performance bond 1,728,465,784.16 1,879,416,612.15
Expenses payable 54,295,184.67 52,825,756.91
Temporary receipts and
46,864,665.90 63,780,300.24
withholding payments
Poverty alleviation expense 46,032,900.00 34,702,645.25
Others 75,040,226.09 109,101,742.61
Total 1,962,529,948.17 2,142,680,307.16
Material other payable with an age over 1 year or overdue
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
42. Liabilities held for sale
"□ Applicable" "√ Not applicable"
43. Non-current liabilities due within one year
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term borrowings due within 1
1,223,353,444.70 1,054,189,602.55
year
Bonds payable due within 1 year 43,045,640.01 167,792,353.66
Long-term accounts payable due
198,231,549.50 522,191,207.59
within 1 year
Lease liabilities due within 1 year 558,867,519.76 467,925,405.65
Total 2,023,498,153.97 2,212,098,569.45
Other notes:
(1) Long-term borrowings due within one year
Item Closing balance Opening balance
Credit borrowings 71,296,779.83 4,602,899.29
Guarantee borrowings 671,072,128.93 110,515,347.77
Mortgage borrowings 161,944.44 100,329,999.99
Pledge + guarantee borrowings 262,414,577.45 138,459,263.10
Mortgage + guarantee borrowings 471,875,465.56
Mortgage + pledge + guarantee
218,408,014.05 228,406,626.84
borrowings
Total 1,223,353,444.70 1,054,189,602.55
Note 1: Guarantees provided by Tongwei Group for the Company are detailed in “related-party
guarantees”. Guarantees provided by the Company for its subsidiaries:
Guarantee
Guarantee expiry
Guarantor Guaranteed party Guaranteed amount commencement
date
date
The Yunnan Tongwei High-purity Crystalline November 13, November 15,
10,000,000.00
Company Silicon Company 2023 2024
The Sichuan Yongxiang Energy Technology Co., February 27,
44,062,500.00 October 21, 2024
Company Ltd. 2023
The Inner Mongolia Tongwei Silicon Energy Co., December 26, December 21,
100,000,000.00
Company Ltd. 2023 2024
The
Tongwei Solar (Hefei) Co., Ltd. 1,004,262.50 March 31, 2022 March 30, 2028
Company
The Tongwei Solar (Hefei) Co., Ltd. 7,183,333.33 January 01, December 28,
226 / 293
2023 Annual Report
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Company Co., Ltd. 2023 2032
The December 10, December 08,
Binyang Jingchuang New Energy Co., Ltd. 9,562,545.89
Company 2021 2032
The December 10, December 08,
Binyang Jingchuang New Energy Co., Ltd. 11,594,499.80
Company 2021 2032
The December 08,
Binyang Jingchuang New Energy Co., Ltd. 2,515,945.53 July 29, 2022
Company 2032
The December 23, December 05,
Xide Tongwei Huijin New Energy Co., Ltd. 9,706,930.03
Company 2022 2035
The Panzhihua Tongwei Huijin New Energy Co.,
11,041,647.22 June 28, 2019 June 10, 2027
Company Ltd.
The
Aohanqi Xinhuo New Energy Co., Ltd. 40,297,122.22 March 27, 2020 March 26, 2030
Company
The Tongwei Fishery-PV Technology (Jiangmen) October 28,
13,190,361.22 October 28, 2037
Company Co., Ltd. 2022
The Tianmen Tongli Fishery-PV Technology Co., December 27, December 26,
59,296,295.36
Company Ltd. 2022 2042
The Zhaoyuan Tongwei New Energy Technology
14,978,463.88 May 27, 2022 May 25, 2037
Company Co., Ltd.
The Changde Dingcheng Tongwei New Energy September 11,
23,757,655.57 August 10, 2032
Company Co., Ltd. 2020
The December 29,
Bengbu Tongwei New Energy Co., Ltd. 47,538,690.60 March 11, 2021
Company 2031
The
Tianjin Binhai Tongli New Energy Co., Ltd. 27,361,815.29 June 30, 2020 June 10, 2032
Company
The October 20,
Sihong Tongli New Energy Co., Ltd. 64,664,555.91 April 20, 2031
Company 2019
The Xichan Tongwei New Energy Co., Ltd. 6,655,736.39 September 27, September 27,
227 / 293
2023 Annual Report
Company 2020 2033
The Gao’an Tongwei Fishery-PV Technology Co., December 21,
9,730,971.55 April 01, 2020
Company Ltd. 2034
The February 21,
Dongying Tongli New Energy Co., Ltd. 57,896,118.06 March 04, 2021
Company 2031
The Lianjiang Tongwei Fishery-PV Technology October 25,
28,607,632.89 October 25, 2034
Company Co., Ltd. 2022
The Gong’an Tongwei Fishery-PV Technology September 21,
25,144,191.67 March 26, 2021
Company Co., Ltd. 2029
The
Tongwei New Energy Co., Ltd. 7,537,833.56 March 18, 2019 March 18, 2036
Company
Note 2: Pledges and collaterals are detailed in “assets with restricted ownership or use right”.
Note 3: There are no overdue long-term borrowings due within one year.
44. Other current liabilities
Other current liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Short-term bonds payable
Sale returns payable
Output VAT to be converted 285,357,988.97 405,605,864.73
Reserve established by
15,075,970.09 17,774,435.23
guarantor
Including: undue claims
2,564,384.99 2,516,102.90
reserve
Compensation reserve
12,511,585.10 15,258,332.33
established by guarantor
Total 300,433,959.06 423,380,299.96
228 / 293
2023 Annual Report
Increase/decrease in short-term bonds:
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Coupon Bond Interest Amortization
Nominal Issue date Issue amount Opening Current Current Closing Default
Bond name rate duration established by of premium
value balance New repayment balance or not
(%) nominal value or discount
2023 Green Super & Short-
term Commercial Paper July 21, 150
100 2.27 300,000,000.00 300,000,000.00 2,790,983.61 117,924.53 302,908,908.14 No
Series 2 (Sci-Tech 2023 days
Innovation Notes)
2023 Green Super & Short-
term Commercial Paper April 19, 180
100 2.50 300,000,000.00 300,000,000.00 3,688,524.59 135,074.70 303,823,599.29 No
Series 1 (Sci-Tech 2023 days
Innovation Notes)
Total / / / / 600,000,000.00 600,000,000.00 6,479,508.20 252,999.23 606,732,507.43 /
Other notes:
"□ Applicable" "√ Not applicable"
229 / 293
2023 Annual Report
45. Long-term borrowings
(1). Classification of long-term borrowings
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Pledge borrowings
Mortgage borrowings 200,000,000.00 300,000,000.00
Guarantee borrowings 16,722,973,735.50 8,928,810,054.34
Credit borrowings 7,505,600,000.00 2,377,710,000.00
Pledge + guarantee borrowings 2,898,119,455.82 1,292,458,536.98
Mortgage + guarantee
727,550,000.00
borrowings
Mortgage + pledge + guarantee
1,428,486,878.14 1,782,807,404.35
borrowings
Total 28,755,180,069.46 15,409,335,995.67
Note on classification of long-term borrowings:
(1) Refer to “related-party guarantees” for details on guarantees provided by Tongwei Group for the
Company. Guarantees provided by the Company for its subsidiaries are as below:
Guarantee
Guarantee
Guarantor Guaranteed party Guaranteed amount commencement
expiry date
date
Sichuan Yongxiang New Energy Co., July 29,
The Company 465,000,000.00 July 30, 2021
Ltd. 2026
Yunnan Tongwei High-purity November 13, November
The Company 490,000,000.00
Crystalline Silicon Company 2023 13, 2025
Yunnan Tongwei High-purity November 24, June 06,
The Company 350,000,000.00
Crystalline Silicon Company 2023 2026
Sichuan Yongxiang Energy February 27, February
The Company 1,365,937,500.00
Technology Co., Ltd. 2023 26, 2028
Inner Mongolia Tongwei Silicon December 26, March 25,
The Company 900,000,000.00
Energy Co., Ltd. 2023 2025
March 31, March 30,
The Company Tongwei Solar (Hefei) Co., Ltd. 3,500,000.00
2022 2028
January 01, December
The Company Tongwei Solar (Hefei) Co., Ltd. 53,000,000.00
2023 28, 2027
February 28, December
The Company Tongwei Solar (Hefei) Co., Ltd. 140,000,000.00
2023 28, 2027
June 05,
The Company Tongwei Solar (Yancheng) Co., Ltd. 332,500,000.00 June 27, 2023
2030
August 30, June 05,
The Company Tongwei Solar (Yancheng) Co., Ltd. 84,500,000.00
2023 2030
August 31, June 05,
The Company Tongwei Solar (Yancheng) Co., Ltd. 153,000,000.00
2023 2030
November 29, June 05,
The Company Tongwei Solar (Yancheng) Co., Ltd. 228,000,000.00
2023 2030
June 25,
The Company Tongwei Solar (Yancheng) Co., Ltd. 20,000,000.00 June 29, 2023
2030
June 25,
The Company Tongwei Solar (Yancheng) Co., Ltd. 350,000,000.00 July 03, 2023
2030
August 30, June 25,
The Company Tongwei Solar (Yancheng) Co., Ltd. 200,000,000.00
2023 2030
Tonghe New Energy (Jintang) Co., August 31, August 30,
The Company 445,300,000.00
Ltd. 2022 2027
230 / 293
2023 Annual Report
December 23, December
The Company Tongwei Solar (Meishan) Co., Ltd. 168,000,000.00
2022 22, 2027
March 23, December
The Company Tongwei Solar (Meishan) Co., Ltd. 70,000,000.00
2023 22, 2027
November 10, June 21,
The Company Tongwei Solar (Meishan) Co., Ltd. 112,000,000.00
2023 2027
December 27, December
The Company Tongwei Solar (Meishan) Co., Ltd. 210,000,000.00
2022 26, 2029
December 27, December
The Company Tongwei Solar (Meishan) Co., Ltd. 252,000,000.00
2022 26, 2029
March 30, March 28,
The Company Tongwei Solar (Jintang) Co., Ltd. 299,670,000.00
2023 2028
December 01, January 31,
The Company Tongwei Solar Hong Kong Co., Ltd. 1,196,989,591.04
2021 2025
June 29,
The Company Tongwei Solar (Pengshan) Co., Ltd. 364,000,000.00 June 30, 2023
2030
September 22, June 29,
The Company Tongwei Solar (Pengshan) Co., Ltd. 273,000,000.00
2023 2030
November 10, June 29,
The Company Tongwei Solar (Pengshan) Co., Ltd. 437,500,000.00
2023 2028
December 13, June 29,
The Company Tongwei Solar (Pengshan) Co., Ltd. 262,500,000.00
2023 2028
June 27,
The Company Tongwei Solar (Pengshan) Co., Ltd. 260,000,000.00 June 30, 2023
2030
September 12, June 27,
The Company Tongwei Solar (Pengshan) Co., Ltd. 466,650,000.00
2023 2030
Qinzhou Tongwei Huijin New Energy October 27, October 27,
The Company 102,800,000.00
Co., Ltd. 2021 2032
Huineng Weisheng Clean Energy Co., March 30, March 29,
The Company 870,000,000.00
Ltd in Fengnan District, Tangshan 2023 2039
Binzhou Zhanhua Tonghui Marine December 25, December
The Company 387,286,222.00
Technology Co., Ltd. 2023 03, 2032
Binyang Jingchuang New Energy Co., December 10, December
The Company 111,375,000.00
Ltd. 2021 08, 2032
Binyang Jingchuang New Energy Co., December 10, December
The Company 86,250,000.00
Ltd. 2021 08, 2032
Binyang Jingchuang New Energy Co., December
The Company 18,750,000.00 July 29, 2022
Ltd. 08, 2032
Xide Tongwei Huijin New Energy December 23, December
The Company 106,780,000.00
Co., Ltd. 2022 05, 2035
Panzhihua Tongwei Huijin New June 10,
The Company 36,000,000.00 June 28, 2019
Energy Co., Ltd. 2027
Aohanqi Xinhuo New Energy Co., March 27, March 26,
The Company 220,000,000.00
Ltd. 2020 2030
Tongwei Fishery-PV Technology October 28, October 28,
The Company 344,250,000.00
(Jiangmen) Co., Ltd. 2022 2037
Tianmen Tongli Fishery-PV December 27, December
The Company 1,292,156,644.46
Technology Co., Ltd. 2022 26, 2042
Zhaoyuan Tongwei New Energy May 25,
The Company 270,333,333.33 May 27, 2022
Technology Co., Ltd. 2037
Changde Dingcheng Tongwei New September 11, August 10,
The Company 196,326,941.40
Energy Co., Ltd. 2020 2032
Bengbu Tongwei New Energy Co., December
The Company 307,739,710.14 March 11, 2021
Ltd. 29, 2031
Tianjin Binhai Tongli New Energy June 10,
The Company 245,775,000.00 June 30, 2020
Co., Ltd. 2032
231 / 293
2023 Annual Report
October 20, April 20,
The Company Sihong Tongli New Energy Co., Ltd. 456,815,687.09
2019 2031
Xichan Tongwei New Energy Co., September 27, September
The Company 56,300,000.00
Ltd. 2020 27, 2033
Gao’an Tongwei Fishery-PV December
The Company 134,517,168.00 April 01, 2020
Technology Co., Ltd. 21, 2034
Dongying Tongli New Energy Co., March 04, February
The Company 373,750,000.00
Ltd. 2021 21, 2031
Lianjiang Tongwei Fishery-PV October 25, October 25,
The Company 255,207,272.00
Technology Co., Ltd. 2022 2034
Gong’an Tongwei Fishery-PV March 26, September
The Company 118,000,000.00
Technology Co., Ltd. 2021 21, 2029
March 18, March 18,
The Company Tongwei New Energy Co., Ltd. 79,380,000.00
2019 2036
(2) Guarantees from external entities
Guarantee
Guaranteed Guaranteed Guarantee
Guarantor commencement
party amount expiry date
date
The September 26, August 19,
Ping An Bank Co., Ltd. 496,000,000.00
Company 2022 2025
The January 12, January 05,
Ping An Bank Co., Ltd. 200,000,000.00
Company 2023 2026
(3) Pledges and collaterals are detailed in “assets with restricted ownership or use right”.
Other notes:
"□ Applicable" "√ Not applicable"
46. Bonds payable
(1). Bonds payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
2020 Middle-Term Note Series 1 147,817,803.66
Tong22 Convertible Bonds 10,716,483,560.35 10,296,919,111.67
2023 Green Middle-Term Note Series 1 (Sci-
502,133,786.23
Tech Innovation Notes)
Less: Bonds payable due within one year 43,045,640.01 167,792,353.66
Total 11,175,571,706.57 10,276,944,561.67
232 / 293
2023 Annual Report
(2). Description of bonds payable: (excluding other financial instruments such as preference share and perpetual bond classified as financial liabilities)
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Bond Interest Amortization of
Bond Nominal Coupon rate New New Opening Current Current Closing Default
duratio established by premium or
name value (%) date amount balance New repayment balance or not
n nominal value discount
2020 Middle-Term June 17,
100 Note 1 3 400,000,000.00 147,817,803.66 1,626,666.73 195,529.61 149,640,000.00 No
Note Series 1 2020
Tong22 Convertible February 24,
100 Note 2 6 12,000,000,000.00 10,296,919,111.67 43,940,078.00 400,631,358.68 25,006,988.00 10,716,483,560.35 No
Bonds 2022
2023 Green Middle-
Term Note Series 1 October 19,
100 3.10 3 500,000,000.00 500,000,000.00 3,100,000.01 33,786.22 1,000,000.00 502,133,786.23 No
(Sci-Tech Innovation 2023
Notes)
Total / / / / 12,900,000,000.00 10,444,736,915.33 500,000,000.00 48,666,744.74 400,860,674.51 175,646,988.00 11,218,617,346.58 /
Note 1: The coupon rate is 5.20% for the first and second years, and 3.20% for the third year.
Note 2: The annual coupon rate for the first year to the sixth year is 0.20%, 0.40%, 0.60%, 1.50%, 1.80% and 2.00% respectively.
Note 3: Not default on the above bonds payable.
(3). Description of convertible corporate bonds
"√Applicable" "□ Not applicable"
Item Conversion criteria Conversion date
According to the relevant provisions of the Listing Rules of the Shanghai Stock Exchange and
Tong22 the provisions of the Prospectus for the Public Offering of Convertible Bonds by Tongwei Co.,
Can be converted to the Company's shares from
Convertible Ltd., the initial conversion price of Tong22 Convertible Bonds was 39.27 yuan per share, and
September 2, 2022 to February 23, 2028.
Bonds adjusted to 38.36 yuan per share from May 30, 2022 and to 35.50 yuan per share from May 31,
2023 due to the annual equity distribution implemented by the Company.
Conversion accounting and criteria
"□ Applicable" "√ Not applicable"
(4). Note on other financial instruments classified as financial liabilities
Basic information of other financial instruments (including preference share and perpetual bond) outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
Changes in other financial instruments (including preference share and perpetual bond) outstanding as of the end of the period
"□ Applicable" "√ Not applicable"
233 / 293
2023 Annual Report
Note on basis for classification of other financial instruments as financial liabilities:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
234 / 293
2023 Annual Report
47. Lease liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Lease liabilities 3,774,818,942.94 3,374,637,088.14
Less: Lease liabilities due within
558,867,519.76 467,925,405.65
one year
Total 3,215,951,423.18 2,906,711,682.49
48. Long-term payables
Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Long-term payables 408,310,390.38 973,541,127.03
Special payables 850,000.00 850,000.00
Total 409,160,390.38 974,391,127.03
Other notes:
"□ Applicable" "√ Not applicable"
Long-term payables
(1) Presentation of other payable by nature
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Finance lease payments payable
(sale and leaseback does not 408,310,390.38 807,596,681.47
constitute of a sale)
Others 165,944,445.56
Total 408,310,390.38 973,541,127.03
Other notes:
As of December 31, 2023, powerplant entities under the Company generated net lease payments of
606,541,939.88 yuan via sale and leaseback, of which, the net lease payments due within one year were
198,231,549.50 yuan and due after one year were 408,310,390.38 yuan. For above lease payments, the
Company acts as the guarantor with joint and several liability. These powerplant entities have their right
to electricity price income pledged and the sale and leaseback of the underlying assets pledged,
shareholders of these entities have their shares pledged.
Special payables
(1) Presentation of special payables by nature
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Opening Current Current Closing
Item Reason
balance increase decrease balance
Special funds used as guarantees
by Tongwei Agriculture 850,000.00 850,000.00
Financing Guarantee
Total 850,000.00 850,000.00 /
Other notes:
The special funds used as guarantees by Tongwei Agriculture Financing Guarantee (a subsidiary of
the Company) are 2,480,000.00 yuan consisting of risk support funds (1,630,000.00 yuan) and funds for
235 / 293
2023 Annual Report
reward in place of subsidy (850,000.00 yuan). The use of these funds is subject to Sichuan Management
Procedures on Provincial-level Special Fiscal Subsidy for Agriculture-related Credit Guarantee issued by
the Department of Finance of Sichuan province on August 28, 2012. Article 18 of the Procedures provides
for that: funds for reward in place of subsidy are injected as state-owned capital to increase the registered
capital of the guarantor; every time when the cumulative funds for reward in place of subsidy received by
the guarantor is or over 10 million yuan, the guarantor must timely report to relevant authority under
relevant provisions for approval and then complete the change registration of its registered capital. Risk
support funds are to compensate the loss from guarantee risk if the risk reserve created by the guarantor is
insufficient to compensate the loss; the balance of the risk support funds (if any) is carried over to the next
year. The funds received by the Company were used in 2018 to compensate a loss of 1,630,000.00 yuan
resulted from unrecovery of repayments made for behalf of the guaranteed parties, with a balance of
850,000.00 yuan.
49. Long-term employee benefits payable
"√Applicable" "□ Not applicable"
(1) Long-term employee benefits payable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
I. Post-employment benefits - net
defined benefit liability
II. Termination benefits
III. Other long-term benefits 4,085,174,933.73 3,805,815,900.20
Total 4,085,174,933.73 3,805,815,900.20
Note: Other long-term employee benefits refer to the bonus to be paid one year later.
(2) Change in defined benefit plan
Present value of defined benefit plan
"□ Applicable" "√ Not applicable"
Plan asset:
"□ Applicable" "√ Not applicable"
Net defined benefit liability (net asset)
"□ Applicable" "√ Not applicable"
Note on the defined benefit plan and risks relating thereto, and their impact on the Company's future cash
flow, time and uncertainty:
"□ Applicable" "√ Not applicable"
Note on significant actuarial assumptions for defined benefit plan and result of sensitivity analysis
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
236 / 293
2023 Annual Report
50. Estimated liabilities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Closing balance Reason
Outward guarantee
Pending litigation
Product warranty 177,993,077.06 559,416,370.93
Reorganization obligation
Loss contracts to be enforced
Sale returns payable
Others
Total 177,993,077.06 559,416,370.93 /
237 / 293
2023 Annual Report
51. Deferred income
Deferred income
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance Reason
Received
Government
867,530,196.50 321,611,323.00 228,443,157.99 960,698,361.51 fiscal
grants
appropriation
Total 867,530,196.50 321,611,323.00 228,443,157.99 960,698,361.51 /
Other notes:
"□ Applicable" "√ Not applicable"
52. Other non-current liabilities
"□ Applicable" "√ Not applicable"
53. Share capital
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change (+, -)
Capital Closing
Opening balance New Bonus reserve
Others Sub-total balance
issue issue Converted to
share capital
Total shares 4,501,946,097 27,649 27,649 4,501,973,746
Other notes:
Other increase is caused by the conversion of Tong22 Convertible Bonds to shares in current period.
54. Other equity instruments
(1). Basic information of other financial instruments (including preference share and perpetual
bond) outstanding as of the end of the period
"√Applicable" "□ Not applicable"
Approved by the CSRC in the ZJXK [2021] No. 4028, on February 24, 2022, the Company issued
convertible bonds publicly valued 12 billion yuan for a term of 6 years. The coupon rate arrangements for
these convertible bonds: 0.20% in the 1st year, 0.40% in the 2nd year, 0.60% in the 3rd year, 1.50% in the
4th year, 1.80% in the 5th year, and 2.00% in the 6th year. Interest payments are made annually and the
principal and interest for the last year will be paid on maturity.
(2). Changes in other financial instruments (including preference share and perpetual bond)
outstanding as of the end of the period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Financial Opening Current increase Current decrease Closing
instruments Carrying Carrying
outstanding Number Carrying value Number Number Number Carrying value
value value
Tong22
Convertible 119,847,300 1,965,085,659.43 10,380.00 170,196.48 119,836,920.00 1,964,915,462.95
Bonds
Total 119,847,300 1,965,085,659.43 10,380.00 170,196.48 119,836,920.00 1,964,915,462.95
Note on changes in other equity instruments and the reasons as well as basis for relevant accounting
treatment
"√Applicable" "□ Not applicable"
The current decrease is due to the conversion of Tong22 Convertible Bonds issued by the Company to the
238 / 293
2023 Annual Report
Company’ shares, and the conversion of other equity instruments into capital reserve.
Other notes:
"□ Applicable" "√ Not applicable"
55. Capital reserve
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Capital premium
16,121,030,216.25 7,145,162.81 15,272,921.67 16,112,902,457.39
(share premium)
Other capital
23,272,182.84 241,193.33 23,030,989.51
reserves
Total 16,144,302,399.09 7,145,162.81 15,514,115.00 16,135,933,446.90
Other notes including changes in current period and reasons:
Note 1: Current change in capital reserve is from:
Item Current increase Current decrease
I. Share premium 7,145,162.81 15,272,921.67
1. “Tong22 Convertible Bonds” converted to share
1,042,242.42
capital
2. Equity transactions with minority interest (Note 2) 6,102,920.39 15,272,921.67
II. Other capital reserves 241,193.33
Carryforward of other capital reserves due to
liquidation of Maoming Tongwei Jiuding Feed Co., 241,193.33
Ltd. (a joint venture)
Total 7,145,162.81 15,514,115.00
Note 2: Equity transactions with minority interest are detailed in Notes “equity in other entities -
transactions resulting in changes in ownership interest without loss of control”. The share premium is
adjusted as below according to the difference between the Company’s share of the net assets of the investee
and the acquisition consideration/disposal consideration:
Change in equity percentage before and
after the transaction
Share capital
Shareholding
No. Investee premium
Before percentage After
adjustment
transaction under transaction
transaction
1 Tongwei Food Co., Ltd. 80.00% -7.84% 72.16% 5,976,364.38
Tongwei (Dafeng) Feed Co.,
2 51.00% 29.00% 80.00% -13,583,233.23
Ltd.
Chengdu Tongwei Automation
3 80.00% 20.00% 100.00% 126,556.01
Equipment Co., Ltd.
4 Zibo Tongwei Feed Co., Ltd. 76.00% 24.00% 100.00% -1,689,688.44
Total -9,170,001.28
56. Treasury shares
"□ Applicable" "√ Not applicable"
239 / 293
2023 Annual Report
57. Other comprehensive income
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current period amount
Less: amount Less: amount
carried into carried into
other other After-tax
Less:
Opening comprehensive comprehensive After-tax income income Closing
Item Current period Income
balance income in prior income in prior attributable to the attributable to balance
amount before tax tax
periods that is periods that is parent company minority
expense
converted into converted into shareholders
current profit or retained
loss earnings
I. Other comprehensive income that cannot be reclassified
7,508,757.28 4,415,402.51 4,415,402.51 11,924,159.79
into profit or loss
Including: Changed in re-measured defined benefit plan
Other comprehensive income that cannot be converted
into profit or loss under equity method
Change in fair value of other equity investments 7,508,757.28 4,415,402.51 4,415,402.51 11,924,159.79
Change in fair value of the company's own credit risk
II. Other comprehensive income that will be reclassified
-116,368,560.57 -31,122,623.99 -31,009,457.37 -113,166.62 -147,378,017.94
into profit or loss
Including: other comprehensive income that can be
-861,479.50 -191,873.99 -191,873.99 -1,053,353.49
converted into profit or loss under equity method
Change in fair value of other debt investments
Amount of financial asset reclassified into other
comprehensive income
Provision for credit impairment of other debt investments
Cash flow hedge reserve -2,790,653.54 -2,843,418.59 52,765.05 -2,843,418.59
Foreign currency translation -115,507,081.07 -28,140,096.46 -27,974,164.79 -165,931.67 -143,481,245.86
Total other comprehensive income -108,859,803.29 -26,707,221.48 -26,594,054.86 -113,166.62 -135,453,858.15
240 / 293
2023 Annual Report
58. Special reserve
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Opening balance Current increase Current decrease Closing balance
Work safety
33,751,973.14 226,857,050.61 163,405,585.61 97,203,438.14
expense
Total 33,751,973.14 226,857,050.61 163,405,585.61 97,203,438.14
Other notes including changes in current period and reasons:
None.
59. Surplus reserve
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Item Opening balance Current increase Closing balance
decrease
Statutory surplus reserve 2,407,468,232.84 1,896,478,871.99 4,303,947,104.83
Discretionary surplus reserve
Reserve fund
Enterprise development fund
Others
Total 2,407,468,232.84 1,896,478,871.99 4,303,947,104.83
60. Undistributed profit
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current period Prior period
Unadjusted undistributed profit at the end of
35,853,681,478.39 15,544,604,417.32
the prior period
Total adjustment of opening undistributed
-4,166,930.97 -330,937,017.07
profit (+ for increase and - for decrease)
Adjusted opening undistributed profit 35,849,514,547.42 15,213,667,400.25
Add: net current profit attributable to owners
13,573,900,132.37 25,733,777,019.25
of parent company
Less: Withdrawal from statutory surplus 1,896,478,871.99 992,517,928.27
Withdrawal from discretionary surplus
reserve
Withdrawal from general risk reserve
Common dividend payable 12,866,616,618.77 4,105,411,943.81
Common dividend converted to share
capital
Closing undistributed profit 34,660,319,189.03 35,849,514,547.42
Details on adjustment of opening undistributed profit:
1. Retrospective adjustment made under the Accounting Standard for Business Enterprises and relevant
new provisions had an effect of -4,166,930.97 yuan on the opening undistributed profit.
2. Changes in accounting policies had an effect of 0 yuan on the opening undistributed profit.
3. Corrections of material accounting errors had an effect of 0 yuan on opening undistributed profit.
4. Change in the scope of the consolidation due to business combination under common control had an
effect of 0 yuan on the opening undistributed profit.
5. The total effect of other adjustments on the opening undistributed profit was 0 yuan.
61. Operating revenue and operating cost
241 / 293
2023 Annual Report
(1). Operating revenue and operating cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current amount Prior amount
Item
Revenue Cost Revenue Cost
Main operating
138,317,231,233.43 101,741,774,568.97 141,472,384,388.51 87,254,634,514.11
activities
Other operating
786,830,851.09 586,169,218.57 950,133,606.48 805,326,665.12
activities
Total 139,104,062,084.52 102,327,943,787.54 142,422,517,994.99 88,059,961,179.23
(2). Breakdown of operating revenue and operating cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Agriculture and animal husbandry PV Total
Contract category
Operating revenue Operating cost Operating revenue Operating cost Operating revenue Operating cost
Type of goods
1. Main operating
35,489,191,550.69 32,716,043,482.70 102,828,039,682.74 69,025,731,086.27 138,317,231,233.43 101,741,774,568.97
activities
(1) Feed, food and
35,489,191,550.69 32,716,043,482.70 35,489,191,550.69 32,716,043,482.70
relevant products
(2) PV and relevant
102,828,039,682.74 69,025,731,086.27 102,828,039,682.74 69,025,731,086.27
products
2. Other operating
278,239,292.42 229,976,857.83 508,591,558.67 356,192,360.74 786,830,851.09 586,169,218.57
activities
Total 35,767,430,843.11 32,946,020,340.53 103,336,631,241.41 69,381,923,447.01 139,104,062,084.52 102,327,943,787.54
By operating region
1. Main operating
35,489,191,550.69 32,716,043,482.70 102,828,039,682.74 69,025,731,086.27 138,317,231,233.43 101,741,774,568.97
activities
(1) Domestic 32,393,738,990.92 29,917,893,461.46 94,574,771,318.51 61,565,470,545.17 126,968,510,309.43 91,483,364,006.63
(2) Overseas 3,095,452,559.77 2,798,150,021.24 8,253,268,364.23 7,460,260,541.10 11,348,720,924.00 10,258,410,562.34
2. Other operating
278,239,292.42 229,976,857.83 508,591,558.67 356,192,360.74 786,830,851.09 586,169,218.57
activities
Total 35,767,430,843.11 32,946,020,340.53 103,336,631,241.41 69,381,923,447.01 139,104,062,084.52 102,327,943,787.54
Other notes
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
(5). Material contract changes or material adjustments of transaction prices
"□ Applicable" "√ Not applicable"
62. Tax and surcharge
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Urban construction and maintenance tax 221,024,321.60 377,178,795.41
Education surcharge 109,866,317.82 163,166,551.01
Property tax 132,765,591.00 89,394,957.45
Land use tax 59,280,945.25 52,628,305.98
Stamp duty 131,924,105.00 94,650,742.15
Local education surcharge 73,246,513.76 108,780,536.29
Others 17,348,352.86 25,575,237.38
Total 745,456,147.29 911,375,125.67
63. Sales expense
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
242 / 293
2023 Annual Report
Item Current amount Prior amount
Employee benefits 758,608,368.53 770,817,518.67
Business travel cost 160,290,131.33 113,684,620.81
Advertising and promotion costs 434,758,538.48 229,947,290.29
Product quality guarantee expense 386,238,980.32 182,911,569.17
Warehousing fee 150,089,207.72 26,797,889.10
Others 240,055,932.26 110,612,004.83
Total 2,130,041,158.64 1,434,770,892.87
64. Management expense
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Employee benefits 3,040,018,816.68 6,343,786,628.08
Depreciation expense 248,919,981.52 263,277,201.43
Work safety expense 228,863,507.05 163,287,723.11
Consulting expense (including advisory
158,360,436.63 107,243,742.53
expense)
Amortization of intangible assets 113,646,988.84 169,676,417.53
Property insurance expense 100,271,837.55 82,396,256.94
Others 837,423,654.24 738,246,734.75
Total 4,727,505,222.51 7,867,914,704.37
65. R&D cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Labor cost 403,040,886.44 342,122,319.57
Costs of materials 364,877,555.48 740,997,184.57
Depreciation and fuel cost 230,938,375.66 244,089,534.08
Other expense 190,625,382.30 137,234,505.62
Total 1,189,482,199.88 1,464,443,543.84
66. Financial expense
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Interest expense 1,236,013,721.51 960,173,341.35
Less: Fiscal interest subsidy 655,131.16
Less: Interest income 954,235,676.99 458,574,423.96
Add: Exchange loss 586,128,016.51 304,701,078.39
Less: Exchange gain 585,762,494.47 362,325,267.48
Add: Amortization of unrecognized
159,497,237.54 212,094,771.40
financing costs
Add: Long-term interest on employee
109,042,905.90 13,209,811.77
benefits payable
Add: Financial institution fees 30,167,039.32 20,523,031.76
Total 580,850,749.32 689,147,212.07
67. Other income
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Classification by nature Current amount Prior amount
Government grants relating to
1,009,448,724.69 397,490,494.89
everyday activities
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2023 Annual Report
Other income including VAT
marked-up deduction, and direct 224,339,657.08
reduction or exemption
Total 1,233,788,381.77 397,490,494.89
68. Investment gain
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on long-term equity investment
-34,954,050.97 -62,827,359.84
under equity method
Gain on disposal of long-term equity
1,492,699.01 1,122,402.01
investment
Gain on wealth management products
89,025,440.92 89,935,380.67
purchased from banks
Gain on forward exchange settlement
(not meeting hedging accounting and 3,305,732.14 -75,037,183.70
hedging ineffectiveness)
Discount interest on receivable
-236,011,317.34 -374,197,220.05
financing
Total -177,141,496.24 -421,003,980.91
Other notes:
(1) Gain on long-term equity investment under equity method
Investee Current amount Prior amount
Maoming Tongwei Jiuding Feed Co., Ltd. -902,593.03
Bohai Aquaculture Co., Ltd. -6,751,271.86 2,136,863.18
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 7,681,447.27 -2,947,930.43
Haimao Seed Industry Technology Co., Ltd. -19,888,422.82 -57,308,947.49
Anhui Tech-bank Feed Technology Co., Ltd. -831,802.78 1,795,335.25
Anhui Tech-bank Biotechnology Co., Ltd. -480,489.79 338,944.91
Suzhou Taiyangjing New Energy Co., Ltd. -16,718,532.86 -5,939,032.23
Sichuan Haicheng Carbon Products Co., Ltd. 2,035,021.87
Total -34,954,050.97 -62,827,359.84
(2) Gain on disposal of long-term equity investment
Investee Current amount Prior amount
Shaoxing Tongwei Jiuding Feed Co., Ltd. 132,160.09
Hefei Tongwei Jiuding Feed Co., Ltd. 990,241.92
Maoming Tongwei Jiuding Feed Co., Ltd. 249,734.55
Zibo Tongwei Food Co., Ltd. 1,242,964.46
Total 1,492,699.01 1,122,402.01
69. Gain on hedge of net exposure
"□ Applicable" "√ Not applicable"
70. Fair value gain
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current
Source of gains Prior amount
amount
Held-for-trading financial assets 169,783,931.94 20,117,978.88
Including: Gain on change in fair value of derivative financial
13,967,946.31 1,450,406.25
instruments
244 / 293
2023 Annual Report
Gain on change in fair value of structured deposits and wealth
155,815,985.63 18,667,572.63
management products
Held-for-trading financial liabilities -56,562,286.24
Total 169,783,931.94 -36,444,307.36
71. Credit impairment loss
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Bad debt loss from accounts receivable -134,704,178.67 -104,175,443.95
Bad debt loss from other receivables 4,680,516.41 -31,593,290.20
Total -130,023,662.26 -135,768,734.15
72. Asset impairment loss
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
I. Impairment loss from contract assets -7,186,486.20 11,529,856.67
II. Obsolete inventory loss and impairment loss
-1,305,024,755.64 -468,951,790.67
on fulfillment costs
III. Impairment loss from long-term equity
-34,398,595.17 -24,673,524.79
investments
IV. Impairment loss from investment properties
V. Impairment loss from fixed assets -4,390,850,203.52 -1,582,908,661.72
VI. Impairment loss from construction
materials
VII. Impairment loss from construction in
-338,993,440.00
progress
VIII. Impairment loss from productive
biological assets
IX. Impairment loss from gas and oil assets
X. Impairment loss from intangible assets
XI. Goodwill impairment loss -125,861,229.24 -146,871,236.56
XII. Others
XIII. Impairment loss from right-of-use assets -33,286,862.32
Total -6,235,601,572.09 -2,211,875,357.07
Note: The machinery equipment in this technical upgrading project did not reach the intended outcome,
and showed an indication of impairment. After the impairment, an impairment provision was created,
which resulted in the impairment loss from construction in progress.
73. Gain on asset disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Gain on disposal of right-of-use assets 32,224,704.86 -7,486,618.82
Gain on disposal of fixed assets -4,481,104.43 -9,233,490.26
Gain on disposal of construction in progress -517,018.44
Gain on disposal of productive biological assets 28,128.32 153,161.13
Gain on disposal of intangible assets 3,128,786.74
Total 27,254,710.31 -13,438,161.21
74. Non-operating revenue
Non-operating revenue
"√Applicable" "□ Not applicable"
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2023 Annual Report
Unit: Yuan Currency: CNY
Amount carried into
Item Current amount Prior amount current non-recurring
gain or loss
Total gain on disposal of non-
3,667,238.31 230,421.30 3,667,238.31
current assets
In which: Gain on disposal of fixed
3,667,238.31 230,421.30 3,667,238.31
assets
Gain on disposal of intangible
assets
Gain on non-monetary exchange
Receipt of donations
Government grants
Income relating to damages for
33,703,651.07 12,262,136.16 33,703,651.07
breach
Payables that cannot be paid 9,043,551.97 17,811,097.71 9,043,551.97
Others 2,667,628.08 1,115,736.17 2,667,628.08
Total 49,082,069.43 31,419,391.34 49,082,069.43
Other notes:
"□ Applicable" "√ Not applicable"
75. Non-operating cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
carried into
Item Current amount Prior amount current non-
recurring gain
or loss
Total loss on disposal of non-current
255,627,392.92 1,189,771,474.52 255,627,392.92
assets
In which: Loss on disposal of fixed
252,327,241.80 1,189,771,474.52 252,327,241.80
assets
Loss on disposal of intangible
2,812,111.37 2,812,111.37
assets
Scrap loss from construction in
473,212.50 473,212.50
progress
Scrap loss from construction
14,827.25 14,827.25
materials
Loss on non-monetary exchange
Outward donations 7,417,488.00 57,889,843.28 7,417,488.00
Damages 7,247,716.90 14,225,476.46 7,247,716.90
Others 18,012,516.01 4,587,735.07 18,012,516.01
Total 288,305,113.83 1,266,474,529.33 288,305,113.83
76. Income tax expense
(1). Income tax expense
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Current income tax 4,236,133,470.11 6,407,796,222.28
Deferred income tax -430,677,247.21 -449,460,859.77
Total 3,805,456,222.90 5,958,335,362.51
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2023 Annual Report
(2). Adjustment of accounting profit and income tax expense
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount
Total profit 22,051,620,068.37
Income tax expense under legal/applicable tax rate 5,512,905,017.09
Effect of different tax rates applied to subsidiaries -2,385,219,542.50
Effect of periods prior to adjustment -14,272,775.06
Effect of non-taxable income -63,465,875.48
Effect of non-deductible cost, expense and loss 138,836,476.30
Effect of use of deductible loss from prior unrecognized deferred tax assets -63,573,418.65
Effect of deductible temporary difference or deductible loss from deferred tax
990,438,017.00
assets not recognized in current period
Effect of recognition of deferred tax asset in current period for the
deductible loss/deductible temporary difference from deferred tax assets not -16,268,652.34
recognized in prior period
Effect of the reversal of deductible loss/deductible temporary difference
4,503,482.86
from prior recognized deferred tax assets
Effects of income tax preference -181,898,616.97
Deferred income tax expense impacted by changes in tax rates -116,527,889.35
Income tax expense 3,805,456,222.90
Other notes:
"□ Applicable" "√ Not applicable"
77. Other comprehensive income
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
1. Other comprehensive income attributable to
-26,594,054.86 -26,552,399.33
owners of the parent company
In which: Change in fair value of other equity
4,415,402.51 644,958.57
investments
Other comprehensive income that can be converted to
-191,873.99 -1,120,566.26
profit or loss under equity method
Cash flow hedge reserve -2,843,418.59
Foreign currency translation -27,974,164.79 -26,076,791.64
2. Other comprehensive income attributable to
-113,166.62 778,989.09
minority shareholders
In which: Change in fair value of other equity
investments
Other comprehensive income that can be converted to
profit or loss under equity method
Cash flow hedge reserve 52,765.05
Foreign currency translation -165,931.67 778,989.09
Total -26,707,221.48 -25,773,410.24
78. Cash flow statement
(1). Cash relating to operating activities
Other cash received relating to operating activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Government grants 1,102,616,889.70 387,782,690.24
Interest on bank deposits 682,821,814.40 381,361,028.20
247 / 293
2023 Annual Report
Performance bond and deposits
882,750,470.46 860,757,228.02
received
Insurance claims 32,496,181.22 3,686,436.65
Damages for breach 18,525,956.58 5,757,415.65
Others 61,135,156.88 28,015,921.52
Total 2,780,346,469.24 1,667,360,720.28
Other cash paid relating to operating activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Other cash paid relating to operating
1,369,031,736.42 975,744,124.58
activities
Performance bond and deposits paid 1,354,439,739.05 442,975,203.98
Others 2,462,497.81 4,258,494.94
Total 2,725,933,973.28 1,422,977,823.50
(2). Cash relating to investing activities
Cash received relating to material investing activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Cash received from material investment
recovery - cash received from recovery of 32,190,000,000.00 15,350,000,000.00
wealth management products and term deposits
Total 32,190,000,000.00 15,350,000,000.00
Cash paid relating to material investing activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
I. Cash paid for acquisition or construction of material fixed
17,664,024,245.16 2,657,033,513.27
assets, intangible assets and other long-term assets
In which: Phase II 200,000-ton High-purity Polysilicon
5,032,152,538.08 425,995,047.77
Green Energy Project of Yunnan Tongwei
Phase I 16 GW High-efficiency Cell Project of Pengshan
4,093,104,292.98 59,376,543.33
Solar
Phase I 120,000-ton High-purity Polysilicon Project of
3,380,028,032.25 2,166,219,937.65
Yongxiang Energy Technology
25 GW High-efficiency Modules Manufacturing Base
3,067,702,633.05 5,070,006.49
Project of Yancheng Solar
Phase I 200,000-ton High-purity Polysilicon Project of
2,091,036,748.80 371,978.03
Inner Mongolia Silicon Energy
II. Cash paid for material investments - cash paid for
investment into wealth management products and term 41,239,235,777.74 21,210,000,000.00
deposits
Total 58,903,260,022.90 23,867,033,513.27
Other cash received relating to investing activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Construction bid bonds 1,171,988,162.80 702,279,499.81
Total 1,171,988,162.80 702,279,499.81
Other cash paid relating to investing activities
248 / 293
2023 Annual Report
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Refunded construction bid bonds 1,152,806,883.33 501,949,500.23
Reclamation deposit paid 11,797,310.97 5,059,692.00
Total 1,164,604,194.30 507,009,192.23
(3). Cash relating to financing activities
Other cash received relating to financing activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current Prior
amount amount
Funds coordinated to joint ventures 4,009,487.52 16,181,517.10
Recovered lease risk reserve 3,144,221.04
Cash received for disposal of equities in subsidiaries to minority
2,800,000.00
interest (not lost control)
Cash received from sale and leaseback 420,000,000.00
Recovered borrowings, letters of guarantee, and bills of guarantee
18,563,287.33
deposit
Income including interest on financing margin 66,625.00
Total 6,809,487.52 457,955,650.47
Other cash paid relating to financing activities
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Lease payments 1,420,154,822.89 2,303,848,382.42
In which: Lease payments for sale and leaseback (which does
580,152,141.88 1,509,098,738.01
not constitute of a sale)
Principal repayment for interest-free debts 185,087,917.38 185,087,917.55
Debt principal and interest paid to minority interest 179,989,777.85
Purchase of minority shareholding 48,482,662.31 8,520,015.17
Finance lease risk reserve 22,462,062.54 34,496,451.77
Funds coordinated to joint ventures 4,009,487.52 16,181,517.10
Remaining proceeds from the disposal of subsidiaries in the
1,900,000.00
previous period to be distributed to minority shareholders
Financing charges 3,270,000.00
Intermediary costs including attorney costs and accountant
2,579,796.72
costs for issuing convertible bonds paid in current period
Total 1,860,186,730.49 2,553,984,080.73
Changes in liabilities arising from financing activities
"√Applicable" "□ Not applicable"
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2023 Annual Report
Unit: Yuan Currency: CNY
Current increase Current decrease
Item Opening balance Non-cash Non-cash Closing balance
Cash changes Cash changes
changes changes
Short-term borrowings 87,767,124.22 906,720,513.48 9,067,344.54 789,538,863.65 214,016,118.59
Long-term borrowings (including the
16,463,525,598.22 21,757,799,351.48 900,627,855.16 9,143,419,290.70 29,978,533,514.16
portion due within one year)
Bonds payable (including the portion
due within one year and short-term 10,444,736,915.33 1,100,000,000.00 454,870,371.09 780,088,496.20 901,443.64 11,218,617,346.58
bonds payable)
Lease liabilities (including the portion
3,374,637,088.14 1,240,184,535.81 840,002,681.01 3,774,818,942.94
due within one year)
Long-term payables (including the
1,495,732,334.62 56,039,442.37 945,229,837.11 606,541,939.88
portion due within one year)
Total 31,866,399,060.53 23,764,519,864.96 2,660,789,548.97 12,498,279,168.67 901,443.64 45,792,527,862.15
(4). Note on presentation of net cash flows
"□ Applicable" "√ Not applicable"
(5). Significant activities that are not related to current cash inflows or outflows but affect the financial position of the business or may impact future cash
flows, as well as the financial impacts
"□ Applicable" "√ Not applicable"
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2023 Annual Report
79. Additional information on cash flow statement
(1). Additional information on cash flow statement
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Additional information Current amount Prior amount
1. Net profit adjusted as cash flow from operating activities
Net income 18,246,163,845.47 32,380,474,790.63
Add: provision for asset impairment 6,235,601,572.09 2,211,875,357.07
Credit impairment loss 130,023,662.26 135,768,734.15
Depreciation of fixed assets, investment properties
6,106,950,302.76 4,842,701,966.51
(amortization), and productive biological assets
Amortization of right-of-use assets 318,475,971.00 395,175,853.44
Amortization of intangible assets 141,861,104.33 185,441,989.52
Amortization of long-term prepaid expenses 125,156,574.05 157,556,427.94
Loss from disposal of fixed assets, intangible assets and
-27,254,710.31 13,438,161.21
other long-term assets (“-” for gain)
Loss from scrap of fixed assets (“-” for gain) 248,660,003.49 1,189,541,053.22
Loss from change in fair value (“-” for gain) -169,783,931.94 36,444,307.36
Financial expense (“-” for gain) 1,124,462,618.50 1,105,568,202.87
Investment loss (“-” for gain) 177,141,496.24 421,003,980.91
Decrease in deferred tax assets (“-” for increase) -905,414,429.54 -1,011,402,920.08
Increase in deferred tax liabilities (“-” for decrease) 474,737,182.33 561,942,060.31
Decrease in inventories (“-” for increase) 1,909,238,925.62 -5,788,809,331.01
Decrease in operating receivables (“-” for increase) -5,626,011,723.33 -6,104,015,351.83
Increase in operating receivables (“-” for decrease) 2,169,295,508.15 13,085,204,349.48
Others
Net cash flow generated from operating activities 30,679,303,971.17 43,817,909,631.70
2. Significant investing and financing activities not related to cash receipt and payment:
Debt-equity swap (conversion of Tong22 Convertible
901,443.64 12,950,708.71
Bonds to shares)
Convertible bonds due within one year
Fixed assets acquired by finance lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 14,368,820,878.77 35,194,041,631.11
Less: Opening balance of cash 35,194,041,631.11 2,903,078,719.63
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -20,825,220,752.34 32,290,962,911.48
Note: No cash flows due to transfer and endorsement of banker's acceptances in the accounting period:
Item Amount
Cash from sales of goods and rendering of services not received due to
25,293,413,655.73
endorsement of notes receivable
Cash for purchase of goods and acceptance of services not paid due to
23,130,783,708.56
endorsement of notes receivable
Cash for acquisition or construction of fixed assets, intangible assets and other
2,162,629,947.17
long-term assets not paid due to endorsement of notes receivable
(2). Net cash paid by subsidiaries in current period
"□ Applicable" "√ Not applicable"
(3). Net cash received in current period for disposal of subsidiary
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
Cash or cash equivalent received in current period for current 17,500,000.00
251 / 293
2023 Annual Report
subsidiary disposal
Less: Cash and cash equivalent held by subsidiary on the day when
664,289.14
the Company loses control
Add: Cash or cash equivalent received in current period for prior
subsidiary disposal
Net cash received for subsidiary disposal 16,835,710.86
Other notes:
(4). Components of cash and cash equivalents
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
I. Cash 14,368,820,878.77 35,194,041,631.11
Including: Cash on hand 590,810.25 152,905.98
Bank deposits available for payment 14,358,597,172.96 35,171,465,208.91
Other cash available for payment 9,632,895.56 22,423,516.22
Central bank deposits available for
payment
II. Cash equivalents
Including: Bond investments due within
three months
III. Closing cash and cash equivalents 14,368,820,878.77 35,194,041,631.11
Including: Restricted cash and cash
equivalents available for use by parent
company or subsidiaries
(5). Presentation of restricted cash as cash or cash equivalents
"□ Applicable" "√ Not applicable"
(6). Cash at bank and in hand not classified as cash or cash equivalents
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount Reason
Restricted cash at
20,180,806.08 25,374,248.91 Performance bond
bank and in hand
Term deposits 5,029,436,098.04 1,622,156,249.99
Total 5,049,616,904.12 1,647,530,498.90 /
Other notes:
"√Applicable" "□ Not applicable"
Such deposits are not classified as cash or cash equivalents because the purpose of the Company holding
such deposits is not to meet short-term liquidity needs for external payments, but rather to earn interest
income.
80. Notes to statement of owner's equity
Note on “other” items and adjusted amounts for adjustment of closing balance of prior period:
"□ Applicable" "√ Not applicable"
81. Foreign currency monetary items
(1). Foreign currency monetary items
"√Applicable" "□ Not applicable"
Unit: Yuan
Closing foreign Exchange rates for Closing converted
Item
currency balance translation CNY
252 / 293
2023 Annual Report
balance
Cash at bank and in hand - -
Including: USD 30,984,547.82 7.0827 219,454,256.88
VND 906,406,760,927.21 0.0002914 264,104,649.95
BDT 928,493,150.77 0.0643882 59,783,987.35
IDR 26,106,049,818.53 0.0004608 12,030,437.70
EUR 2,585,465.26 7.8592 20,319,688.57
HKD 2,292,330.95 0.9062200 2,077,356.15
Notes receivable
Including: USD 117,654,730.73 7.0827 833,313,161.34
EUR 1,171,857.82 7.8592 9,209,864.98
Accounts receivable
Including: USD 17,122,310.65 7.0827 121,272,189.62
VND 392,961,607,866.59 0.0002914 114,504,433.43
BDT 52,245,713.19 0.0643882 3,364,006.57
IDR 108,129,336,643.00 0.0004608 49,829,187.39
EUR 10,136,085.32 7.8592 79,661,521.75
Other receivables
Including: USD 16,035,951.97 7.0827 113,577,837.01
VND 101,923,955,395.80 0.0002914 29,698,122.19
IDR 1,510,193,027.40 0.0004608 695,941.50
EUR 9,564.98 7.8592 75,173.09
Short-term borrowings
Including: USD 10,037,224.33 7.0827 71,090,648.76
VND 449,447,279,494.00 0.0002914 130,957,832.03
BDT 30,432,909.72 0.0643882 1,959,519.77
Notes payable
Including: USD 169,800.00 7.0827 1,202,642.46
EUR 185,570.00 7.8592 1,458,431.74
Accounts payable
Including: USD 904,435.02 7.0827 6,405,841.93
VND 194,918,474,564.97 0.0002914 56,792,067.20
BDT 428,944,717.72 0.0643882 27,618,971.19
IDR 22,934,979,359.36 0.0004608 10,569,114.90
EUR 2,551,252.47 7.8592 20,050,803.41
Employee benefits payable
Including: VND 11,399,000,487.40 0.0002914 3,321,387.09
BDT 64,354,821.00 0.0643882 4,143,690.02
Taxes payable
Including: VND 20,780,689,998.44 0.0002914 6,054,982.26
BDT 44,881,195.76 0.0643882 2,889,818.67
IDR 10,660,805.15 0.0004608 4,912.81
Other payables
Including: USD 70,297,437.19 7.0827 497,895,658.41
VND 80,118,370,971.35 0.0002914 23,344,513.69
BDT 715,177.17 0.0643882 46,048.96
IDR 5,804,323,098.00 0.0004608 2,674,803.27
EUR 172,403.77 7.8592 1,354,955.72
AUD 30,436.70 4.8484 147,569.30
Long-term borrowings
Including: USD 169,001,876.55 7.0827 1,196,989,591.04
253 / 293
2023 Annual Report
(2). Note on overseas operating entities, including for important overseas operating entities, the
principal business locations overseas, reporting currencies and basis, as well as reasons for
changes in reporting currencies
"√Applicable" "□ Not applicable"
Principal business Reporting
Entity name Basis for reporting currency
location currency
Currency for main
Tongwei Holdings PTE. Ltd. Singapore USD
operating activities
Tongwei Solar (Singapore) PTE. Currency for main
Singapore USD
Ltd. operating activities
Tongwei Feed Mill Bangladesh Ltd. Bangladesh BDT Local main currency
Vietnam Tongwei Co., Ltd. Vietnam VND Local main currency
Haiyang Tongwei Co., Ltd. Vietnam VND Local main currency
Heping Tongwei Co., Ltd. Vietnam VND Local main currency
PT. Tongwei Indonesia Indonesia IDR Local main currency
Qianjiang Tongwei Co., Ltd. Vietnam VND Local main currency
Tongta Tongwei Co., Ltd. Vietnam VND Local main currency
Vietnam Tech-bank Feed Co., Ltd. Vietnam VND Local main currency
Tongwei Solar Hong Kong Co., Currency for main
Hong Kong USD
Ltd. operating activities
Tongwei Solar (Germany) GmbH Germany EUR Local main currency
82. Lease
(1) Company as lessee
"√Applicable" "□ Not applicable"
Variable lease payments not included into the measurement of lease liabilities
"□ Applicable" "√ Not applicable"
Lease payments for short-term leases and low-value leases under a simplified approach
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount
Lease payments for short-term leases and low-value
35,204,690.45
leases under a simplified approach
Sale and leaseback transaction and criteria
"√Applicable" "□ Not applicable"
There were no new sale-and-leaseback transactions in the current period. Existing sale-and-leaseback
transactions are all asset transfers and do not qualify as sales. Cash outflows arising from existing sale-
and-leaseback transactions in the current period were 580,152,141.88 yuan.
Total cash outflows relating to leases were 840,002,681.01 yuan.
(2) Company as lessor
Operating lease - lessor
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
In which: Income relating to variable lease
Item Lease income payments not included into the measurement of
lease liabilities
Lease 256,953,345.57
Total 256,953,345.57
Finance lease - lessor
254 / 293
2023 Annual Report
"□ Applicable" "√ Not applicable"
Reconciliation of undiscounted lease payments to the net investment in the lease
"□ Applicable" "√ Not applicable"
Present value of lease payments for the next five years
"□ Applicable" "√ Not applicable"
(3) Selling profit or loss recognized under finance lease - producer or dealer
"□ Applicable" "√ Not applicable"
83. Others
"□ Applicable" "√ Not applicable"
VIII. R&D cost
(1). Presentation by nature
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Labor cost 403,040,886.44 342,122,319.57
Costs of materials 364,877,555.48 740,997,184.57
Depreciation and fuel cost 230,938,375.66 244,089,534.08
Other expense 190,625,382.30 137,234,505.62
Total 1,189,482,199.88 1,464,443,543.84
In which: Expensed R&D cost 1,189,482,199.88 1,464,443,543.84
Capitalized R&D cost
(2). R&D cost eligible for capitalization
"□ Applicable" "√ Not applicable"
Material capitalized R&D projects
"□ Applicable" "√ Not applicable"
Impairment provision for R&D cost
"□ Applicable" "√ Not applicable"
(3). Material purchased in-process R&D projects
"□ Applicable" "√ Not applicable"
IX. Changes in the scope of consolidation
1. Business combinations under different control
"□ Applicable" "√ Not applicable"
2. Business combinations under common control
"□ Applicable" "√ Not applicable"
3. Reverse acquisition
"□ Applicable" "√ Not applicable"
255 / 293
2023 Annual Report
(V) Subsidiary disposal
Transactions or events in current period that resulted in the loss of control over subsidiaries
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Method and key
Difference Amount of other
assumptions for
between Carrying value Fair value of comprehensive
determining fair
disposal price of remaining remaining income relating to
value of
Disposal Disposal and share of the Remaining equity on equity on Fair value re- equity investment
Basis for remaining
Subsidiary Control loss Disposal price at percent at method at subsidiary's net equity on control loss date control loss date measurement in former
determining equity on
name point control loss point control loss control loss assets at the control loss at the level of at the level of gain or loss on subsidiary
control loss point control loss date
point (%) point level of date (%) consolidated consolidated remaining equity converted to
at the level of
consolidated financial financial investment gain or
consolidated
financial statements statements loss, or retained
financial
statements earnings
statements
On the control
loss date, the
transfer
agreement had
been signed and
Outward the disposal
Zibo Tongwei
February transfer of consideration
Food Co., 17,500,000.00 100.00 1,242,964.46 0.00 0.00 Not applicable Not applicable Not applicable Not applicable
28, 2023 equity had been
Ltd.
interest received, the
other party
actually had
controlled the
disposed
subsidiary
Other notes:
"□ Applicable" "√ Not applicable"
Disposal of the investment in subsidiary through multiple transactions with loss of control in current period
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
5. Changes in scope of consolidation for other reasons
Note on changes in scope of consolidation for other reasons (such as new subsidiary or liquidation of subsidiary) and relevant circumstances:
256 / 293
2023 Annual Report
"√Applicable" "□ Not applicable"
(1) 1 first-level subsidiary deregistered in current period: Foshan Tongwei Feed Co., Ltd.
(2) 18 first-level subsidiaries were converted to second-level ones in current period
1) The following 3 first-level subsidiaries were changed to the subsidiaries of Tongwei New Energy Co., Ltd. in current period
Subsidiary name Subsidiary name Subsidiary name
Tianmen Tongwei Aquaculture Technology
Zhejiang Tongwei Solar Technology Co., Ltd. Chengdu Tongwei Fishery-PV Technology Co., Ltd.
Co., Ltd.
2) The following 15 first-level subsidiaries were changed to the subsidiaries of Tongwei Agriculture Development Co., Ltd. in current period
Subsidiary name Subsidiary name Subsidiary name
Tongwei (Dafeng) Feed Co., Ltd. Changde Tongwei Biotechnology Co., Ltd. Nanchang Tongwei Feed Co., Ltd.
Fuzhou Tongwei William Feed Co., Ltd. Sichuan Tongguang Construction Engineering Co., Ltd. Huanggang Tongwei Biotechnology Co., Ltd.
Chengdu Tongwei Aquaculture Technology
Shenyang Tongwei Biotechnology Co., Ltd. Shaoxing Tongwei Biotechnology Co., Ltd.
Co., Ltd.
Chengdu Tongwei Aquatic Seed Co., Ltd. Huizhou Tongwei Biotechnology Co., Ltd. Hefei Tongwei Biotechnology Co., Ltd.
Nanjing Tongwei Aquaculture Technology Co.,
Qingyuan Tongwei Feed Co., Ltd. Chengdu Tongwei Biotechnology Co., Ltd.
Ltd.
(3) 1 second-level subsidiary was changed to first level in current period
Tongwei Solar Co., Ltd., a previous second-level subsidiary of the Company was changed to first-level in current period
6. Others
"□ Applicable" "√ Not applicable"
257 / 293
2023 Annual Report
X. Interest in other entities
1. Interest in subsidiaries
(1). Corporate group structure
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Subsidiary Principal Registered Registered Equity percent (%) Obtaining
Business nature
name business location capital location Direct Indirect method
Chemical Business combination
Yongxiang Co., Ltd. Leshan 142,086.69 Leshan 99.9999 0.0001
engineering and PV under common control
Production and
Business combination
Tongwei Solar Co., Ltd. Chengdu 160,000.00 Chengdu operation of solar 100
under common control
cells
Production and
Business combination
Tongwei Solar (Hefei) Co., Ltd. Hefei 215,000.00 Hefei operation of solar 100
under common control
modules
Business combination
Tongwei New Energy Co., Ltd. Chengdu 120,000.00 Chengdu PV power operation 100
under common control
Chengmai Chengmai County, Establishment through
Tongwei Solar Technology Co., Ltd. 10,000.00 Sale of modules 100
County, Hainan Hainan investment
Establishment through
Tongwei Solar (Singapore) PTE. Ltd. Singapore USD100 Singapore Sale of modules 100
investment
Establishment through
Tongwei Food Co., Ltd. Chengdu 10,000.00 Chengdu Food processing 72.16
investment
Tongwei Agriculture Development Feed production and Establishment through
Chengdu 80,000.00 Chengdu 100
Co., Ltd. operation investment
Feed production and Establishment through
Panzhihua Tongwei Feed Co., Ltd. Panzhihua 2,000.00 Panzhihua 100
operation investment
Feed production and Business combination
Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang 2,000.00 Zaozhuang 100
operation under common control
Feed production and Establishment through
Nanning Tongwei Feed Co., Ltd. Nanning 2,800.00 Nanning 100
operation investment
Feed production and Establishment through
Qianxi Tongwei Feed Co., Ltd. Qianxi 3,000.00 Qianxi 100
operation investment
Ningxia Yinchuan Tongwei Feed Co., Feed production and Establishment through
Yinchuan 3,000.00 Yinchuan 100
Ltd. operation investment
258 / 293
2023 Annual Report
Sichuan Chunyuan Ecological Business control under
Chengdu 1,250.00 Qionglai Farming 100
Farming Co., Ltd. different control
Establishment through
Sichuan Fusion Link Co., Ltd. Chengdu 1,000.00 Chengdu Others 60
investment
Foshan Nanhai Tongwei Aquatic Establishment through
Guangzhou 1,000.00 Guangzhou Farming 100
Products Technology Co., Ltd. investment
Note on equity percent different from voting right percent:
None.
Basis for cases when the Company has control of investee in which it only holds 50% or less voting rights and when the Company has no control of investee in which
it holds over 50% voting rights:
None.
Basis for the Company's control of important structured entities included into scope of consolidation:
None.
Basis for determining whether the Company is the agent or truster
None.
Other notes:
The following 18 first-level subsidiaries were consolidated in the current period, with the number of their respective subsidiaries listed as follows:
Number of its Shareholding Voting
No. Subsidiary name Short name Notes
subsidiaries percentage (%) interest (%)
1 Yongxiang Co., Ltd. Yongxiang 15 100 100
2 Tongwei Solar (Hefei) Co., Ltd. Hefei Solar 100 100
3 Tongwei Solar Co., Ltd. Tongwei Solar 8 100 100
4 Tongwei New Energy Co., Ltd. Tongwei New Energy 113 100 100
5 Tongwei Solar Technology Co., Ltd. Solar Technology 3 100 100
6 Tongwei Solar (Singapore) PTE. Ltd. Singapore Solar 3 100 100
7 Tongwei Food Co., Ltd. Tongwei Food 11 72.16 72.16
8 Tongwei Agriculture Development Co., Ltd. Tongwei AD 86 100 100
9 Qianxi Tongwei Feed Co., Ltd. Qianxi Feed 100 100
10 Zaozhuang Tongwei Feed Co., Ltd. Zaozhuang Feed 100 100
11 Nanning Tongwei Feed Co., Ltd. Nanning Feed 100 100
12 Panzhihua Tongwei Feed Co., Ltd. Panzhihua Tongwei 100 100
259 / 293
2023 Annual Report
13 Sichuan Chunyuan Ecological Farming Co., Ltd. Chuanyuan Farming 100 100
14 Ningxia Yinchuan Tongwei Feed Co., Ltd. Yinchuan Feed 100 100
Foshan Nanhai Tongwei Aquatic Products
15 Foshan Technology 100 100
Technology Co., Ltd.
16 Sichuan Fusion Link Co., Ltd. Sichuan Fusion Link 60 60
Deregistered
17 Foshan Tongwei Feed Co., Ltd. Foshan Tongwei 100 100 in current
period
Disposed in
18 Zibo Tongwei Food Co., Ltd. Zibo Food 100 100 current
period
Total 239
(2). Important non-wholly-owned subsidiaries
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current profit or loss
Minority equity Current dividend declared to Closing minority interest
Subsidiary name attributable to minority
Percentage monitory shareholders balance
shareholders
Sichuan Yongxiang New Energy Co., Ltd. 15.00% 1,263,218,405.24 2,143,650,000.00 1,881,224,334.17
Inner Mongolia Tongwei High-purity
20.00% 1,260,412,049.60 988,645,000.00 2,064,368,344.87
Crystalline Silicon Company
Yunnan Tongwei High-purity Crystalline
49.00% 1,518,966,453.44 2,477,930,000.00 3,865,018,754.58
Silicon Company
Note on minority shareholders’ equity percent is different from their percent of voting rights:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
(3). Main financial information of important non-wholly owned subsidiaries
"√Applicable" "□ Not applicable"
Unit: 100 million yuan Currency: CNY
Closing balance Opening balance
Subsidiary name Current Non- Total Current Non- Total Current Non- Total Current Non- Total
assets current assets liabilities current liabilities assets current assets liabilities current liabilities
260 / 293
2023 Annual Report
assets liabilities assets liabilities
Sichuan Yongxiang New
99.41 58.89 158.30 9.38 23.38 32.76 183.51 60.16 243.67 29.46 23.17 52.63
Energy Co., Ltd.
Inner Mongolia Tongwei
High-purity Crystalline 47.40 71.76 119.16 12.51 16.92 29.43 70.50 73.75 144.25 34.41 17.38 51.79
Silicon Company
Yunnan Tongwei High-
purity Crystalline Silicon 20.83 133.07 153.90 56.59 18.44 75.03 59.39 48.53 107.92 20.57 7.99 28.56
Company
Current amount Prior amount
Total Total
Subsidiary name Operating Net Cash flow from Operating Net Cash flow from
comprehensive comprehensive
revenue income operating activities revenue income operating activities
income income
Sichuan Yongxiang New Energy Co., Ltd. 146.03 77.41 77.41 64.02 269.02 159.59 159.59 168.79
Inner Mongolia Tongwei High-purity
141.37 63.88 63.88 73.03 175.59 98.07 98.07 106.63
Crystalline Silicon Company
Yunnan Tongwei High-purity Crystalline
73.55 31.00 31.00 41.19 100.90 56.19 56.19 39.95
Silicon Company
261 / 293
2023 Annual Report
(4). Significant restrictions on use of group assets and service of group liabilities
"□ Applicable" "√ Not applicable"
(5). Financial or other supports provided for structured entities within the scope of consolidation
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
2. Transactions resulting in changes in ownership interest without loss of control
"√Applicable" "□ Not applicable"
(1). Notes on changes in equity interest in subsidiaries
"√Applicable" "□ Not applicable"
(1) Note on changes in ownership interest
In November 2023, the capital investment into Tongwei Food Co., Ltd. was increased. As a result of the
Company and the minority interest not proportionally participating in the capital increase, the Company's
equity in Tongwei Food Co., Ltd. decreased from 80.00% to 72.16%.
In January 2023, the acquisition of 29.00% equity stake held by minority shareholders in Tongwei (Dafeng)
Feed Co., Ltd. resulted in the Company's interest in Tongwei (Dafeng) Feed Co., Ltd. increasing from
51.00% to 80.00%.
In February 2023, the acquisition of 20.00% equity stake held by minority shareholders in Chengdu
Tongwei Automation Equipment Co., Ltd. resulted in the Company's equity in Chengdu Tongwei
Automation Equipment Co., Ltd. increasing from 80.00% to 100.00%.
In August 2023, the acquisition of 24.00% equity stake held by minority shareholders in Zibo Tongwei
Feed Co., Ltd. resulted in the Company's interest in Zibo Tongwei Feed Co., Ltd. increasing from 76.00%
to 100.00%.
In October 2023, the transfer of 40.00% equity stake in Gaoqing Tongwei New Energy Co., Ltd. to
minority shareholders resulted in the Company's equity in Gaoqing Tongwei New Energy Co., Ltd.
decreasing from 100.00% to 60.00%.
(2). Effects of transactions on minority interest and interest attributable to owners of parent
company
"√Applicable" "□ Not applicable"
1) Purchase of equity held by minority shareholders in subsidiary
Unit: Yuan Currency: CNY
Chengdu Tongwei
Tongwei (Dafeng) Zibo Tongwei Feed
Automation
Feed Co., Ltd. Co., Ltd.
Equipment Co., Ltd.
Acquisition cost/disposal
42,661,486.31 3,776,676.00 2,044,500.00
consideration
--Cash 42,661,486.31 3,776,676.00 2,044,500.00
--Fair value of non-cash assets
Total acquisition cost/disposal
42,661,486.31 3,776,676.00 2,044,500.00
consideration
Less: Share of subsidiary's net
assets based on the ownership 29,078,253.08 3,903,232.01 354,811.56
interest acquired or disposed
Difference 13,583,233.23 -126,556.01 1,689,688.44
Including: Adjustment of
-13,583,233.23 126,556.01 -1,689,688.44
capital reserve
Adjustment of surplus reserve
Adjustment of undistributed
profit
2) Disposal of equity in subsidiary to monitory shareholders
262 / 293
2023 Annual Report
Item Tongwei Food Co., Ltd. Gaoqing Tongwei New Energy
Co., Ltd.
Disposal consideration 11,000,000.00 10,800,000.00
—— cash 11,000,000.00 10,800,000.00
Total consideration received ① 11,000,000.00 10,800,000.00
Less: Share of subsidiary's net
assets based on the equity 5,023,635.62 10,800,000.00
interest changed ②
Difference ③=①-② 5,976,364.38 -
In which: Adjustment of capital
5,976,364.38 -
reserve ④=③
Note: As a result of the Company and the minority interest not proportionally participating in the capital
increase, the Company's equity in Tongwei Food Co., Ltd. decreased from 80.00% to 72.16%. This is
equivalent to the fact that the Company received a consideration of 11,000,000.00 yuan (contribution by
minority shareholders) for transferring 7.84% equity stake in Tongwei Food Co., Ltd to monitory
shareholders.
Other notes
"□ Applicable" "√ Not applicable"
3. Interest in joint ventures or associates
"√Applicable" "□ Not applicable"
(1). Important joint ventures or associates
"□ Applicable" "√ Not applicable"
(2). Main financial information of important joint ventures
"□ Applicable" "√ Not applicable"
(3). Main financial information of associates
"□ Applicable" "√ Not applicable"
(4). Aggregated financial information of non-important joint ventures and associates
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance / Current
Opening balance / Prior amount
amount
Joint ventures:
Total carrying value 109,840,291.07 107,434,929.27
Totals by ownership interest percentage:
--Net profit 7,681,447.27 -3,850,523.46
--Other comprehensive income
--Total comprehensive income 7,681,447.27 -3,850,523.46
Associates:
Total carrying value 267,477,779.99 283,152,220.94
Totals by ownership interest percentage:
--Net profit -42,635,498.24 -58,976,836.38
--Other comprehensive income -191,873.99 -1,120,566.26
--Total comprehensive income -42,827,372.23 -60,097,402.64
(5). Note on significant limitations on the ability of joint ventures or associates to transfer funds to
the Company
"□ Applicable" "√ Not applicable"
(6). Excess losses by joint ventures or associates
"□ Applicable" "√ Not applicable"
263 / 293
2023 Annual Report
(7). Unconfirmed commitments relating to joint venture investments
"□ Applicable" "√ Not applicable"
(8). Contingent liabilities relating to joint venture or associate investments
"□ Applicable" "√ Not applicable"
4. Important joint operations
"□ Applicable" "√ Not applicable"
5. Interest in structured entities outside of the scope of consolidation
Note on structured entities outside of the scope of consolidation:
"□ Applicable" "√ Not applicable"
6. Others
"□ Applicable" "√ Not applicable"
XI. Government grants
1. Government grants recognized as receivables at the end of the reporting period
"□ Applicable" "√ Not applicable"
Reasons for not receiving the expected amount of government grants at the anticipated timing
"□ Applicable" "√ Not applicable"
2. Liability items involving government grants
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount
carried
Amount carried
into non- Other changes
Opening Increased grant into other Relating to
Item operating in current Closing balance
balance in current period income in asset/income
revenue in period
current period
current
period
Deferred Relating to
859,316,863.17 321,611,323.00 224,693,098.22 986,726.37 955,248,361.58
income asset
Deferred Relating to
8,213,333.33 2,163,333.40 600,000.00 5,449,999.93
income income
Total 867,530,196.50 321,611,323.00 226,856,431.62 1,586,726.37 960,698,361.51 /
3. Government grants carried into current gain or loss
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Type Current amount Prior amount
Relating to asset 224,693,098.22 219,426,604.45
Relating to income 784,755,626.47 187,334,735.53
Total 1,009,448,724.69 406,761,339.98
XII. Risks relating to financial instruments
1. Risks of financial instruments
"√Applicable" "□ Not applicable"
(1) Credit risk
Credit risk is the risk of one party to the financial instrument incurs a loss due to the non-performance
of the other party. The main credit risk to which the Company is exposed to the customer credit risk due
264 / 293
2023 Annual Report
to selling on credit. Before signing a new contract, the Company assesses the credit risk of the new
customer including its external credit rating, and in some cases, the creditworthiness certificate from bank
(when available). The Company sets a credit limit for each customer, this is the maximum limit that
requires no additional approval. On each balance sheet date, the carrying value of receivables of the
Company presents the maximum credit exposure
By applying credit monitoring and managing accounts receivable via aging analysis for existing
customers, with weekly reports on changes in accounts receivable from key customers submitted by the
Financial Department, the Company ensures the overall credit risk within a controllable range. Customers
are grouped by their credit feature when the Company monitors their credit risks. “High-risk” customers
are placed into the list of restricted customers who are required to make advances.
In addition, the Company creates adequate provision for expected credit loss depending on the
recovery of accounts receivable on each balance sheet date. As such, the Company management believes
that the credit risk the Company bears has been reduced hugely.
Current funds of the Company are placed into banks with high credit rating and therefore exposed to
a low credit risk.
The Company's credit exposure covers customers a variety of contract parties and customers from
different regions, relating to PV generation, silicon materials and wafers, solar cells, modules and relevant
chemical engineering, feed and food processing. No systematic risk is detected in these industries.
Therefore, the Company is not exposed to significant concentrated credit risk. On December 31, 2023, the
balance of accounts receivable from top five customers was 3,474,483,900 yuan accounting for 46.89%
of the period-end total balance of accounts receivable.
(2) Market risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes in
market price, including foreign exchange risk, interest rate risk and other price risks.
1) Interest rate risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes in
market interest rate. The main interest rate risk to which the Company is exposed is from bank borrowings.
The Company keeps a good credit status in banks and effectively controls its interest rate risk by
controlling its debt structure with funds from domestic branches and subsidiaries coordinated by the head
office, enhancing the liquidity and eliminating overdue borrowings.
2) Foreign exchange risk
It is the risk that fair value of future cash flow of financial instrument volatilizes due to changes in
exchange rates. The Company spares no effort to match its foreign currency income with foreign currency
expenditure, to lower this risk. The main exchange risks for the Company are mainly from financial assets
and financial liabilities denominated in foreign currencies such as the USD, VND, BDT, INR, SGD, EUR
and HKD. The amounts translated from foreign currency assets and foreign currency liabilities into CNY
are detailed in Notes “foreign currency monetary items”.
(3) Liquidity risk
It is the risk of incurring losses resulting from the inability to meet payment obligations via delivery
of cash or other financial assets. The Company follows a policy to ensure it has adequate cash to pay debts
when they become due. Liquidity risk is centrally managed by the Company's Financial Department. By
monitoring cash balance, marketable securities readily for realization and the 12-month rolling forecast of
cash flow, the Financial Department ensures the Company keeps adequate cash to pay debts under all
reasonably expected conditions.
As of December 31, 2023, the expiry dates of financial liabilities held by the Company by
undiscounted remaining contract obligations are as below:
Unit: 10,000 yuan Currency: CNY
Item Within 1 year 1- 2 2- 5 Over 5 years Total
Short-term
21,401.61 21,401.61
borrowings
Held-for-trading
financial liabilities
Notes payable 1,017,360.37 1,017,360.37
Accounts payable 1,737,581.05 1,737,581.05
Other payables 196,252.99 196,252.99
Long-term
211,978.26 1,293,828.22 1,299,179.25 484,630.34 3,289,616.07
borrowings
Bonds payable 6,343.48 8,740.22 1,313,432.77 1,328,516.47
265 / 293
2023 Annual Report
Lease liabilities 67,852.51 66,915.50 100,924.09 259,222.78 494,914.88
Long-term
21,727.71 16,776.82 20,474.47 6,465.17 65,444.17
payables
Total 3,280,497.98 1,386,260.76 2,734,010.58 750,318.29 8,151,087.61
2. Hedge
(1) Risk management for hedging activities by the Company
"√Applicable" "□ Not applicable"
Economic
Qualitative and Effective
Risk relationship Impact of
quantitative achievement of
management between the hedging
Item information expected risk
strategy and hedged item activities on
about the risk management
objective and the hedging risk exposure
being hedged objective
instrument
The Company's
By hedging The Company's The cash flow
The Company hedging
through forward foreign currency from forward
has firm activities are
exchange denominated exchange
commitments limited to firm
contracts, the firm contracts offsets
denominated in commitments
Company can commitments the cash flow of
foreign currency for sales and
prudently and cash flows foreign
for both sales purchase
mitigate the from forward currency-
and purchases, denominated in
Forward impact of exchange denominated
and the foreign
exchange exchange rate contracts exhibit firm
exchange rate currency. The
contracts fluctuations on opposite commitments,
risk associated hedging ratio
cash flows, movements due mitigating the
with these complies with
enhancing risk to facing the risk associated
commitments effectiveness
management same exchange with the cash
fluctuates with standards,
capabilities and rate risk, flow
changes in effectively
stabilizing thereby creating fluctuations of
forward meeting the
production and a risk hedging these
exchange rates. hedging
operations. relationship. commitments.
objective.
Other notes
"□ Applicable" "√ Not applicable"
(2) The Company conducts eligible hedging activities and applies hedging accounting
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Cumulative
adjustments to fair
Carrying value Hedge effectiveness
value of hedged Effects of hedge
associated with and the source of
Item item contained in accounting on the
hedged item and the portion of
the recognized financial statements
hedging instrument ineffectiveness
carrying value of
hedged item
Risk type/hedge type
The hedging ratio
At the end of the complies with the The amount
period, the balance effectiveness (operating revenue
Hedging exchange
of assets formed by requirements. and financial
risk on firm
forward foreign Ineffectiveness expense) of cash flow
commitments
contracts was arises from firm hedge reserve
through cash flow
5,842,500 yuan, sales or purchase converted to profit or
hedge via forward
while the liability commitments being loss in current period
exchange contracts
balance formed was canceled without a was -77,954,400
4,844,000 yuan. hedge relationship yuan.
designated.
266 / 293
2023 Annual Report
Other notes
"□ Applicable" "√ Not applicable"
(3) The Company conducts hedging activities for risk management and expects to achieve the risk
management objective without hedge accounting applied
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
3. Transfer of financial assets
(1) Classification of transfer methods
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Nature of Amount of
De- Criteria for de-
Transfer method transferred transferred financial
recognition recognition
financial asset asset
The acceptors are
banks with a very low
possibility of non-
performance, and a
Receivables Banker's De-
13,948,693,622.33 very low possibility of
financing acceptances recognition
recourse, so these
banker's acceptances
have been
derecognized.
Total / 13,948,693,622.33 / /
(2) Financial assets de-recognized due to transfer
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Amount of financial Gain or loss on de-
Item Transfer method
assets de-recognized recognition
Banker's acceptances Note endorsement 8,306,806,285.97
Banker's acceptances Note discounting 5,641,887,336.36 -26,420,190.27
Total / 13,948,693,622.33 -26,420,190.27
(3) Continuing involvement with transferred financial assets
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
XIII. Fair value disclosure
1. Closing fair value of assets and liabilities measured at fair value
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing fair value
Level 1 Level 2 Level 3
Item
fair value fair value fair value Total
measurement measurement measurement
I. Continuous measurement
at fair value
(I) Held-for-trading financial
10,064,061,762.38 10,064,061,762.38
assets
267 / 293
2023 Annual Report
1. Financial assets measured
at fair value through current 10,064,061,762.38 10,064,061,762.38
profit or loss
(1) Debt investments 10,054,851,638.72 10,054,851,638.72
(2) Equity investments
(3) Derivative financial
9,210,123.66 9,210,123.66
assets
2. Financial assets designated
to be measured at fair value
through current profit or loss
(1) Debt investments
(2) Equity investments
(II) Other debit investments
(III) Other equity
158,611,959.79 158,611,959.79
investments
(IV) Investment properties
1. Land use right for lease
2. Buildings for lease
3. Land use right held for
transfer after its value is
increased
(V) Biological assets
1. Consumable biological
assets
2. Productive biological
assets
Derivative financial assets 5,842,475.20 5,842,475.20
Receivables financing 13,328,061,144.72 13,328,061,144.72
Other non-current financial
6,271,248.25 6,271,248.25
assets
Total assets continuously
5,842,475.20 23,557,006,115.14 23,562,848,590.34
measured at fair value
(VI) Held-for-trading
4,844,001.27 4,844,001.27
financial liabilities
1. Financial liabilities
measured at fair value 4,844,001.27 4,844,001.27
through current profit or loss
Including: trading bonds
issued
Derivative financial
4,844,001.27 4,844,001.27
liabilities
Others
2. Financial liabilities
designated to be measured at
fair value through current
profit or loss
Total liabilities
continuously measured at 4,844,001.27 4,844,001.27
fair value
II. Non-continuous
measurement at fair value
(I) Assets held for sale
Total assets non-
continuously measured at
fair value
268 / 293
2023 Annual Report
Total liabilities non-
continuously measured at
fair value
2. The basis for recognizing the market value of items measured at first-level fair value on a
continuing and non-continuing basis
"□ Applicable" "√ Not applicable"
3. Qualitative and quantitative information on valuation techniques and important parameters for
items measured at second-level fair value on a continuing and non-continuing basis
"√Applicable" "□ Not applicable"
For derivative financial assets and derivative financial liabilities, the market value of level 2 items
measured at fair value on a continuing and non-continuing basis is recognized based on the gain or loss
calculated according to the observable parameters published by the banks with which the contracts are
signed.
4. Qualitative and quantitative information of valuation techniques and important parameters used
for level 3 items continuously and non-continuously measured at fair value
"√Applicable" "□ Not applicable"
Debt instruments investments are structured deposits and wealth management products purchased by the
Company. The market value of level three items measured at fair value on a continuing and non-continuing
basis is recognized based on the value calculated according to the yield estimated by banks. For derivative
financial assets in trading financial assets, the market value of level three items measured at fair value on
a continuing and non-continuing basis is recognized based on the gain or loss calculated according to the
non-observable parameters published by banks. Remaining term of receivables financing is short, which
means its carrying value is close to the fair value, therefore, the carrying value is used as fair value. For
other equity investments, the closing net assets of investee is used as the important basis for its fair value
valuation. Where certain valuation techniques are used to determine fair value, the important parameters
include interest rate that cannot be directly observed. The investment costs of other non-current financial
assets are used as their fair values because no significant changes occurred in the operating environment,
operation and financial status of the investees and these amounts are not significant.
5. Reconciliation between opening and closing carrying values and sensitivity analysis for
unobservable parameters for level 3 items continuously and non-continuously measured at fair
value
"□ Applicable" "√ Not applicable"
6. Reasons for and policies at level conversion for items continuously measured at fair value
"□ Applicable" "√ Not applicable"
7. Changes in valuation techniques and reasons
"□ Applicable" "√ Not applicable"
8. Fair value of financial assets and financial liabilities not measured at fair value
"□ Applicable" "√ Not applicable"
9. Others
"□ Applicable" "√ Not applicable"
XIV. Related parties and related-party transactions
1. Parent company
"√Applicable" "□ Not applicable"
Unit: 10,000 yuan Currency: CNY
Parent’s Parent's voting
Parent company Registered Business Registered
ownership right percentage
name location nature capital
percentage in in the Company
269 / 293
2023 Annual Report
the Company (%)
(%)
Tongwei Group Sichuan Mixed
20,000.00 43.85 43.85
Co., Ltd. operation
Description of the Company’s parent company
Tongwei Group Co., Ltd. is a limited liability company whose registered office and business office are
both at No. 588, Middle Section Tianfu Avenue, High-Tech Zone, Chengdu, legally represented by Guan
Yamei, with a registered capital of 200 million yuan. Scope of activities: (The following items do not
include those requiring prior licenses, items requiring post licenses are subject to licenses or approvals)
Feed processing; manufacturing of equipment specially for electronic industry; manufacturing of PV
equipment and components; cell manufacturing; manufacturing of gas-fired, solar and similar-fueled home
appliances; aquaculture (the above items are limited to branches and subsidiaries); wholesale and retail of
goods; livestock husbandry; services for promoting and applying technologies; services for software and
information technology; import and export; development and operation of real properties; property
management; lease; advertising; PV generation. (Any activity that requires approval under laws may not
be conducted until such approval is obtained from relevant authorities)
The ultimate controller of the Company is Liu Hanyuan.
2. Subsidiaries of the Company
Refer to Notes for details.
"√Applicable" "□ Not applicable"
Details of subsidiaries are in Notes “interest in other entities”.
3. Joint ventures and associates
Details of important joint ventures and associates are in Notes.
"□ Applicable" "√ Not applicable"
Other joint ventures or associates that concluded related-party transactions with the Company in current
period or in prior periods that had caused balances
"√Applicable" "□ Not applicable"
Name of joint venture or associate Relationship with the Company
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Joint venture
Anhui Tech-bank Feed Technology Co., Ltd. Associate
Anhui Tech-bank Biotechnology Co., Ltd. Associate
Bohai Aquaculture Co., Ltd. Associate
Suzhou Taiyangjing New Energy Co., Ltd. Associate
Sichuan Haicheng Carbon Products Co., Ltd. Associate
Haimao Seed Industry Technology Co., Ltd., and its subsidiaries Associate
Other notes
"□ Applicable" "√ Not applicable"
4. Other related parties
"√Applicable" "□ Not applicable"
Name Relationship with the Company
Chengdu Haozhuren Pet Food Co., Ltd. Common ultimate control
Chengdu Tongwei Culture Media Co., Ltd. Common ultimate control
Chengdu Tongwei Property Co., Ltd. Common ultimate control
Chengdu Tongyu Property Management Co., Ltd. Common ultimate control
Chengdu Xinrui Technology Development Co., Ltd. Common ultimate control
Meishan Tongwei Property Co., Ltd. Common ultimate control
270 / 293
2023 Annual Report
Chengdu Low-carbon Urban Investment Co., Ltd. Common ultimate control
Chengdu Tongwei Business Management Co., Ltd. Common ultimate control
Sichuan Tongwei Shidi Property Co., Ltd. Common ultimate control
Tongwei Microelectronics Co., Ltd. Common ultimate control
The wholly-owned subsidiary of BioMar
Zhuhai Haiwei Feed Co., Ltd. Tongwei (Wuxi) Biotech Co., Ltd., the
Company's joint venture
5. Related-party transactions
(1). Related-party transactions on sale and purchase of goods and rendering and receipt of
services
Purchase of goods/receipt of services
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Approved Exceed
Related-party transaction limit or not
Related party Current amount Prior amount
transaction limit (if (if
applicable) applicable)
Anhui Tech-bank Feed Technology Raw materials, feed
241,644,851.60 No 280,736,973.22
Co., Ltd. and others
Machinery equipment,
Chengdu Xinrui Technology
raw materials and 178,757,626.01 No 63,540,825.44
Development Co., Ltd.
others
Feed, packaging
Zhuhai Haiwei Feed Co., Ltd. 86,814,312.02 No 15,638,890.03
materials and others
Chengdu Tongyu Property Property management
86,509,597.87 No 54,388,845.77
Management Co., Ltd. and service fees
Chengdu Tongwei Culture Media Co., Tongwei Newspaper,
73,467,684.41 No 14,389,212.92
Ltd. and related goods
Anhui Tech-bank Biotechnology Co., Raw materials, feed
43,695,354.90 No 41,527,937.80
Ltd. and others
Sichuan Haicheng Carbon Products Graphite products
21,379,938.06 No
Co., Ltd.
Suzhou Taiyangjing New Energy Co., Equipment, raw
8,409,233.21 No 15,166,701.94
Ltd. materials and others
Haimao Seed Industry Technology Raw materials, feed
3,227,717.67 No
Co., Ltd. and its subsidiaries and others
Chengdu Tongwei Business Spirits and beverages,
2,492,939.83 No 1,930,085.00
Management Co., Ltd. gifts
BioMar Tongwei (Wuxi) Biotech Co., Feed, pre-mixed feed
897,289.62 No 1,352,304.04
Ltd. and others
Bohai Aquaculture Co., Ltd., and its Shrimp seed,
120,736.29 No
subsidiaries electricity bill, etc.
Chengdu Haozhuren Pet Food Co., Feed and pet supplies
25,237.71 No 39,906.75
Ltd.
Chengdu Tongwei Property Co., Ltd. Others 11,428.56 No 11,428.57
Sale of goods/rendering of services
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Related party Related-party transaction Current amount Prior amount
Feed, pre-mixed feed and
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 27,343,702.39 27,935,807.89
others
Bohai Aquaculture Co., Ltd., and its Feed, pre-mixed feed and
20,192,606.40 27,309,672.32
subsidiaries others
Feed, pre-mixed feed and
Zhuhai Haiwei Feed Co., Ltd. 8,865,360.44 23,507,534.89
others
Raw materials, feed and
Anhui Tech-bank Feed Technology Co., Ltd. 5,559,066.35 3,777,900.77
others
Tongwei Microelectronics Co., Ltd. Accessories, food and others 2,927,397.96 47,025.84
Tongwei Group Co., Ltd. Accessories, food and others 1,601,723.64 1,221,676.18
271 / 293
2023 Annual Report
Feed, pre-mixed feed and
Chengdu Haozhuren Pet Food Co., Ltd. 361,872.16 500,845.04
others
Chengdu Tongwei Business Management Co.,
Accessories, food and others 201,475.61 1,043,945.36
Ltd.
Chengdu Tongwei Culture Media Co., Ltd. Accessories, food and others 128,240.57 309,273.00
Other subsidiaries of Tongwei Group Co., Ltd. Others 49,348.18 21,354.20
Meishan Tongwei Property Co., Ltd. Food, and coupon cards 33,981.61 4,627.52
Haimao Seed Industry Technology Co., Ltd.,
Aquatic products 7,500.00
and its subsidiaries
Sichuan Tongwei Shidi Property Co., Ltd. Accessories, food and others 4,560.40 479,042.85
Anhui Tech-bank Biotechnology Co., Ltd. Feed 655.75 4,099.20
Cells, raw materials and
Suzhou Taiyangjing New Energy Co., Ltd. 26,548.68
others
Note on related-party transactions on sale and purchase of goods and rendering and receipt of services
"□ Applicable" "√ Not applicable"
(2). Related-party management/entrusted management and contract-based operation/outsourcing
Entrusted management/contract-based operation by the Company:
"□ Applicable" "√ Not applicable"
Note on related-party management/contract-based operation
"□ Applicable" "√ Not applicable"
Entrusted management/contract-based operation from the Company
"□ Applicable" "√ Not applicable"
Note on related-party management/contract-based operation for the Company
"□ Applicable" "√ Not applicable"
(3). Related-party leases
The Company as lessor:
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Lease income Lease income
Lessee name Type of leased asset recognized in recognized in
current period prior period
Chengdu Haozhuren Pet Food Premises, buildings and
5,032,148.40 5,888,379.75
Co., Ltd. machinery equipment
Tongwei Microelectronics Co.,
Premises and buildings 4,255,997.92 1,988,885.68
Ltd.
272 / 293
2023 Annual Report
The Company as lessee:
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Variable lease
Lease payments for short-term
payments not included
leases and low-value leases Increased right-of-use
into the measurement Paid rents Interest expense on lease liabilities
Type of leased under a simplified approach (if assets
Lessor name of lease liabilities (if
asset applicable)
applicable)
Current Current Prior Prior
Prior amount Current amount Prior amount Current amount Prior amount Current amount
amount amount amount amount
Chengdu
Tongwei Premises and
5,763,709.45 7,687,842.36 16,713,678.93 15,669,690.79 4,884,203.49 4,908,883.02
Property Co., buildings
Ltd.
Chengdu
Premises and
Tongwei Culture 68,959.59 73,097.17
buildings
Media Co., Ltd.
Haimao Seed
Industry
Premises and
Technology Co., 544,120.83 2,571,326.87 2,000,000.00
buildings
Ltd., and its
subsidiaries
Tongwei Group Premises and
18,365.72 110,194.28 1,121,075.99 1,121,075.99 168,245.56 119,371.34 1,881,515.27
Co., Ltd. buildings
Chengdu
Tongyu Property Premises and
4,589,002.80 88,073.40 4,861,488.37 95,119.27
Management buildings
Co., Ltd.
Note on related-party leases
"□ Applicable" "√ Not applicable"
273 / 293
2023 Annual Report
(4). Related-party guarantees
The Company as guarantor
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Guarantee
Guarantee
Guaranteed Guarantee fulfilled
Guaranteed party commencement
amount expiry date completely
date
or not
March 05,
BioMar Tongwei (Wuxi) Biotech Co., Ltd. 13,000,000.00 July 13, 2023 No
2024
Note: The Company has provided a guarantee limited to 55 million yuan for the debt of BioMar
Tongwei (Wuxi) Biotech Co., Ltd. (one of its joint ventures) made from HSBC Bank (China) Co., Ltd. As
of December 31, 2023, the guarantee balance for the borrowings from HSBC Bank (China) Co., Ltd. was
13 million yuan.
As of December 31, 2023, the Company had no other related party guarantee other than the above
one and the financing guarantees to its subsidiaries.
The Company as guaranteed party
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Guarantee
Guarantee
Guaranteed Guarantee expiry fulfilled
Guarantor commencement
amount date completely or
date
not
Long-term borrowings due
within one year
September 27,
Tongwei Group Co., Ltd. 1,323,088.89 September 26, 2026 No
2023
October 19,
Tongwei Group Co., Ltd. 10,452,000.04 October 18, 2025 No
2022
January 01,
Tongwei Group Co., Ltd. 10,198,000.00 December 29, 2025 No
2023
Tongwei Group Co., Ltd. 25,591,077.58 May 29, 2023 May 18, 2026 No
September 27,
Tongwei Group Co., Ltd. 20,528,000.00 September 27, 2025 No
2023
Tongwei Group Co., Ltd. 5,931,666.63 March 29, 2023 March 28, 2026 No
January 30,
Tongwei Group Co., Ltd. 1,277,873.67 January 29, 2026 No
2023
Sub-total 75,301,706.81
Long-term borrowings
Tongwei Group Co., Ltd. 100,000,000.00 June 29, 2023 June 28, 2026 No
September 27,
Tongwei Group Co., Ltd. 599,800,000.00 September 26, 2026 No
2023
October 19,
Tongwei Group Co., Ltd. 10,000,000.00 October 18, 2025 No
2022
October 19,
Tongwei Group Co., Ltd. 10,000,000.00 October 18, 2025 No
2022
October 19,
Tongwei Group Co., Ltd. 440,000,000.00 October 18, 2025 No
2022
January 01,
Tongwei Group Co., Ltd. 260,000,000.00 December 29, 2025 No
2023
January 01,
Tongwei Group Co., Ltd. 99,960,000.00 November 28, 2025 No
2023
Tongwei Group Co., Ltd. 94,990,000.00 March 29, 2023 March 26, 2026 No
Tongwei Group Co., Ltd. 474,990,000.00 May 29, 2023 May 18, 2026 No
Tongwei Group Co., Ltd. 30,000,000.00 August 26, 2022 February 26, 2025 No
Tongwei Group Co., Ltd. 140,000,000.00 August 26, 2022 May 29, 2025 No
274 / 293
2023 Annual Report
September 27,
Tongwei Group Co., Ltd. 390,000,000.00 September 27, 2025 No
2023
Tongwei Group Co., Ltd. 5,000,000.00 August 05, 2022 January 29, 2025 No
Tongwei Group Co., Ltd. 575,000,000.00 August 05, 2022 July 29, 2025 No
September 26,
Tongwei Group Co., Ltd. 5,000,000.00 March 26, 2025 No
2022
September 26,
Tongwei Group Co., Ltd. 255,000,000.00 September 26, 2025 No
2022
Tongwei Group Co., Ltd. 292,500,000.00 March 29, 2023 March 28, 2026 No
Tongwei Group Co., Ltd. 250,000,000.00 March 30, 2023 January 17, 2025 No
January 30,
Tongwei Group Co., Ltd. 298,500,000.00 January 29, 2026 No
2023
Sub-total 4,330,740,000.00
Note on related-party guarantees
"□ Applicable" "√ Not applicable"
(5). Related-party lending
"□ Applicable" "√ Not applicable"
(6). Related-party asset transfer and debt restructuring
"□ Applicable" "√ Not applicable"
(7). Key management personnel compensation
"√Applicable" "□ Not applicable"
Unit:10,000 yuan Currency: CNY
Item Current amount Prior amount
Key management personnel
6,613.69 15,586.42
compensation
(8). Other related-party transactions
"□ Applicable" "√ Not applicable"
6. Unsettled receivables from and payables to related parties
(1). Receivable
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Provision Provision
Item name Related party Book
Book balance for bad for bad
balance
debts debts
Accounts
Tongwei Group Co., Ltd. 5,642.95 282.15
receivable
Accounts
Zhuhai Haiwei Feed Co., Ltd. 25,100.00
receivable
Accounts
Bohai Aquaculture Co., Ltd. 585,270.40 29,263.52
receivable
Advances to
Zhuhai Haiwei Feed Co., Ltd. 2,870.98
suppliers
Advances to Anhui Tech-bank Feed
8,679,587.14 6,376,445.84
suppliers Technology Co., Ltd.
Sichuan Haicheng Carbon
Prepayments 38,717,457.00
Products Co., Ltd.
(2). Payable
"√Applicable" "□ Not applicable"
275 / 293
2023 Annual Report
Unit: Yuan Currency: CNY
Closing book Opening book
Item name Related party
balance balance
Chengdu Tongyu Property Management
Accounts payable 222,500.00 142,900.00
Co., Ltd.
Accounts payable Anhui Tech-bank Biotechnology Co., Ltd. 647,468.60 800,840.00
Accounts payable Chengdu Tongwei Culture Media Co., Ltd. 29,608,632.07 4,386,999.62
Chengdu Xinrui Technology Development
Accounts payable 55,617,781.83 46,532,808.36
Co., Ltd.
Accounts payable Suzhou Taiyangjing New Energy Co., Ltd. 3,088,878.01 15,717,420.87
Anhui Tech-bank Feed Technology Co.,
Accounts payable 302,964.00 2,426,111.30
Ltd.
Contract liabilities Meishan Tongwei Property Co., Ltd. 12,385.00 36,728.00
Chengdu Low-carbon Urban Investment
Contract liabilities 814.00 2,870.00
Co., Ltd.
Anhui Tech-bank Feed Technology Co.,
Contract liabilities 88,843.13
Ltd.
Contract liabilities Tongwei Group Co., Ltd. 4,567.50
Bohai Aquaculture Co., Ltd., and its
Contract liabilities 110.00
subsidiaries
Other payables Zhuhai Haiwei Feed Co., Ltd. 1,000,000.00
Other payables Chengdu Tongwei Culture Media Co., Ltd. 3,757,458.04 2,853,250.00
Chengdu Tongyu Property Management
Other payables 68,575.26
Co., Ltd.
Chengdu Xinrui Technology Development
Other payables 5,001,546.05
Co., Ltd.
Chengdu Tongwei Business Management
Other payables 3,608.00
Co., Ltd.
Other payables Suzhou Taiyangjing New Energy Co., Ltd. 2,000,000.00
Lease liabilities
(including those due Chengdu Tongwei Property Co., Ltd. 148,196,417.77 103,407,308.75
within one year)
Lease liabilities
(including those due Tongwei Group Co., Ltd. 4,076,452.87 2,630,318.79
within one year)
(3). Other items
"□ Applicable" "√ Not applicable"
7. Related-party commitments
"□ Applicable" "√ Not applicable"
8. Others
"□ Applicable" "√ Not applicable"
XV. Share-based payment
1. Equity instruments
"□ Applicable" "√ Not applicable"
Outstanding stock options or other equity instruments at the end of the period
"□ Applicable" "√ Not applicable"
2. Equity-settled share-based payments
"□ Applicable" "√ Not applicable"
276 / 293
2023 Annual Report
3. Cash-settled share-based payments
"□ Applicable" "√ Not applicable"
4. Share-based payments in current period
"□ Applicable" "√ Not applicable"
5. Modification and termination of share-based payments
"□ Applicable" "√ Not applicable"
6. Others
"□ Applicable" "√ Not applicable"
XVI. Commitments and contingencies
1. Important commitments
"□ Applicable" "√ Not applicable"
2. Contingencies
(1). Important contingencies on balance sheet date
"√Applicable" "□ Not applicable"
Outward guarantees
As of December 31, 2023, the Company had the following outward guarantees:
1) Guarantees for customers who borrowed money from financial institutions:
Unit: 10,000 yuan Currency: CNY
Guarantee Balance of Post-date
Guarantee
Item commencement guaranteed repayment or
expiry date
date amount recovery
Tongwei Agricultural
Finance Guarantee Co., Ltd.
provided guarantees for September 15,
May 31, 2028 18,644.39 15,720.58
customers who borrowed 2017
money from financial
institutions
Total 18,644.39 15,720.58
Note: As of December 31, 2023, the balance of repayment made by Tongwei Agricultural Finance
Guarantee Co., Ltd. for behalf of guaranteed parties was 14,706,800 yuan. It is trying to recover the
balance.
2) The following guarantees provided for strategic partners:
Unit: 10,000 yuan Currency: CNY
Guarantee
Guarantee
Guaranteed Guarantee fulfilled
Guarantor Guaranteed party commencement
amount expiry date completely
date
or not
The
Guangdong Dajia Food Co., Ltd. 4,500.00 October 13, 2023 March 17, 2024 No
Company
The Jiangxi Junshanhu Ecologic
2,000.00 July 07, 2023 April 09, 2024 No
Company Agriculture Development Co., Ltd.
The Xishuangbanna Qiankun Aquatic
847.00 August 24, 2023 April 06, 2024 No
Company Technology Co., Ltd.
The Company had no important matters or continences other than the above-mentioned ones that required
disclosure as of December 31, 2023.
(2). Note on no important contingencies that require disclosure
"□ Applicable" "√ Not applicable"
277 / 293
2023 Annual Report
3. Others
"□ Applicable" "√ Not applicable"
XVII. Post balance sheet events
1. Important non-adjusting events
"□ Applicable" "√ Not applicable"
2. Profit distribution
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Proposed profit or dividend distribution 4,074,286,240.13
Declared profit or dividend /
The Company proposes to distribute a cash dividend of 9.05 yuan per 10 shares (including tax) to all
shareholders. As of December 31, 2023, the total share capital of the Company was 4,501,973,746 shares,
based on which the total cash dividend to be distributed is 4,074,286,240.13 yuan (including tax). If there
is any change in the total share capital before the record date, the dividend per share will remain unchanged
and the total dividend amount will be adjusted accordingly.
3. Sales return
"□ Applicable" "√ Not applicable"
4. Note on other post balance sheet events
"□ Applicable" "√ Not applicable"
XVIII. Other important matters
1. Prior error corrections
(1). Retrospective restatement
"□ Applicable" "√ Not applicable"
(2). Prospective application
"□ Applicable" "√ Not applicable"
2. Significant debt restructuring
"□ Applicable" "√ Not applicable"
3. Asset exchange
(1).Non-monetary exchange
"□ Applicable" "√ Not applicable"
(2). Other asset exchange
"□ Applicable" "√ Not applicable"
4. Annuity plan
"□ Applicable" "√ Not applicable"
5. Discontinued operations
"□ Applicable" "√ Not applicable"
6. Segments
(1). Basis for determining reporting segments and accounting policies applicable to reporting
segments
"√Applicable" "□ Not applicable"
278 / 293
2023 Annual Report
The Company classifies operating segments given its organizational structure, management
requirements and internal reporting policies. An operating segment is a component that meets the
following conditions: ①it can earn revenues and incur expenses in daily activities; ② its operating
results are reviewed regularly by the management to make decisions about resources to be allocated to the
component and assess its performance; ③ accounting information relating to financial position,
operating results and cash flow about the component are available to the Company through analysis. Two
or more operating segments that bear similar economic characteristics and meet certain conditions can be
combined into one operating segment.
The Company classifies reporting segments based on operating segments with operating revenue,
operating cost, assets and liabilities classified by the same type of operating entities.
(2). Financial information of reporting segments
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Management head Agriculture and Offset among
Item PV Total
office animal husbandry segments
Total assets 92,010,966,452.75 11,480,216,580.02 136,310,866,519.97 -75,438,888,093.08 164,363,161,459.66
Total
47,501,479,061.38 6,937,567,620.22 87,244,464,237.50 -51,149,733,945.85 90,533,776,973.25
liabilities
Operating
35,489,191,550.69 102,828,039,682.74 138,317,231,233.43
revenue
Operating
32,716,043,482.70 69,025,731,086.27 101,741,774,568.97
cost
(3). Note on reasons why the Company has no reporting segments or cannot disclose the total
assets and total liabilities of each reporting segment
"□ Applicable" "√ Not applicable"
(4). Other notes
"□ Applicable" "√ Not applicable"
7. Important transactions or events with influence on decisions of investors
"□ Applicable" "√ Not applicable"
8. Others
"√Applicable" "□ Not applicable"
(1) Pledge of the Company's shares held by the controlling shareholder:
As of December 31, 2023, Tongwei Group Co., Ltd. held 1,974,022,515 shares in the Company of
which, 348,100,000 were pledged for financing purpose.
(2) Impairment of fixed assets and technological renovation projects
The photovoltaic industry is developing rapidly, with technology, products, and market demand
evolving quickly. The profitability of PERC cells continues to decline, with significant uncertainty
regarding future profitability and viability, indicating impairment. Additionally, some photovoltaic power
stations with high construction costs show indications of impairment due to the impact of market-based
electricity pricing. Following impairment tests of relevant fixed assets and technological renovation
projects showing indications of impairment, the Company recognized an impairment provision of 4.73
billion yuan.
XIX. Notes to main items of parent's financial statements
1. Accounts receivable
(1). Disclosure by age
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance Opening book balance
Within 1 year
In which: Subitems within one year
279 / 293
2023 Annual Report
Within one year 30,796,438.61
Subtotal within one year 30,796,438.61
Total 30,796,438.61
280 / 293
2023 Annual Report
(2). Disclosure by how bad debt provision is created
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Carrying Carrying
Percent Provision Percent Provision
Amount Amount value Amount Amount value
(%) (%) (%) (%)
Individual bad debt
provision
Including:
Combined provision
30,796,438.61 100.00 1,539,821.93 5.00 29,256,616.68
for bad debts
Including:
Combination 4 30,796,438.61 100.00 1,539,821.93 5.00 29,256,616.68
Total 30,796,438.61 / 1,539,821.93 / 29,256,616.68 / /
281 / 293
2023 Annual Report
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"√Applicable" "□ Not applicable"
Combined provision: Combination 4
Unit: Yuan Currency: CNY
Closing balance
name
Accounts receivable Provision for bad debts Provision (%)
Within 1 year 30,796,438.61 1,539,821.93 5.00
Total 30,796,438.61 1,539,821.93 5.00
Notes on combined provision for bad debts:
"□ Applicable" "√ Not applicable"
Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Notes on significant changes in balances of accounts receivable for which their provisions were changed
in current period:
"□ Applicable" "√ Not applicable"
(3). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period
Opening Charged
Category Recovered Other Closing balance
balance Provision off or
or reversed changes
written off
Bad debt provision
for accounts 1,539,821.93 1,539,821.93
receivable
Total 1,539,821.93 1,539,821.93
Significant amounts recovered or reversed in current period:
"□ Applicable""√ Not applicable"
(4). Accounts receivable written off in current period
"□ Applicable""√ Not applicable"
Significant accounts receivable written off
"□ Applicable""√ Not applicable"
Note on write-off of accounts receivable:
"□ Applicable" "√ Not applicable"
(5). Top five debtor entities in accounts receivable and contract assets at the end of the current
period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent of total
closing
Closing Closing
Closing balance Closing balance of balance of
balance of balance of
Entity name of accounts accounts receivable accounts
contract provision for
receivable and contract assets receivable and
assets bad debts
contract assets
(%)
Entity 1 19,557,488.88 19,557,488.88 63.51 977,874.45
282 / 293
2023 Annual Report
Entity 2 9,822,232.69 9,822,232.69 31.89 491,111.63
Entity 3 1,367,908.80 1,367,908.80 4.44 68,395.44
Entity 4 48,808.24 48,808.24 0.16 2,440.41
Total 30,796,438.61 30,796,438.61 100.00 1,539,821.93
Other notes:
"□ Applicable""√ Not applicable"
2. Other receivables
(1) Presentation of items
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Closing balance Opening balance
Interest receivable
Dividend receivable
Other receivables 34,016,452,464.35 22,391,469,716.10
Total 34,016,452,464.35 22,391,469,716.10
Other notes:
"□ Applicable" "√ Not applicable"
Interest receivable
(1). Types of interest receivable
"□ Applicable" "√ Not applicable"
(2). Significant overdue interest
"□ Applicable" "√ Not applicable"
(3). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on creation of individual provision for bad debts:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Notes on significant changes in book balances of interest receivable for which their provisions were
changed in current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Interest receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant interest receivable written off:
"□ Applicable" "√ Not applicable"
Notes on the write-off:
"□ Applicable" "√ Not applicable"
283 / 293
2023 Annual Report
Other notes:
"□ Applicable" "√ Not applicable"
Dividend receivable
(1). Dividend receivable
"□ Applicable" "√ Not applicable"
(2). Significant interest receivable over 1 year
"□ Applicable" "√ Not applicable"
(3). Disclosure by how bad debt provision is created
"□ Applicable" "√ Not applicable"
Individual bad debt provision:
"□ Applicable" "√ Not applicable"
Note on individual bad debt provision:
"□ Applicable" "√ Not applicable"
Combined provision for bad debts:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts under the general model for expected credit loss
"□ Applicable" "√ Not applicable"
Notes on significant changes in book balances of dividends receivable for which their provisions were
changed in current period:
"□ Applicable" "√ Not applicable"
(5). Provision for bad debts
"□ Applicable" "√ Not applicable"
Significant amounts recovered or reversed in current period:
"□ Applicable" "√ Not applicable"
(6). Dividends receivable written off in current period
"□ Applicable" "√ Not applicable"
Significant dividends receivable written off:
"□ Applicable" "√ Not applicable"
Notes on the write-off:
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
Other receivables
(1). Disclosure by age
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Age Closing book balance Opening book balance
Within 1 year
In which: Subitems within one year
Within one year 34,842,404,091.06 23,202,309,572.09
Subtotal within one year 34,842,404,091.06 23,202,309,572.09
1- 2 years - 1,046,705.41
2- 3 years
Over 3 years 157,882.00 157,882.00
Total 34,842,561,973.06 23,203,514,159.50
284 / 293
2023 Annual Report
(2). Classification by nature of payment
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Payment type Closing book balance Opening book balance
Current accounts with related parties 34,839,618,360.74 23,201,234,084.93
Performance bond 1,506,982.00 1,403,687.41
Others 1,436,630.32 876,387.16
Total 34,842,561,973.06 23,203,514,159.50
(3). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Provision for bad 12-Month Lifetime expected Lifetime expected
Total
debts expected credit credit loss (without credit loss (with
loss credit impairment) credit impairment)
Balance on
812,044,443.40 812,044,443.40
January 01, 2023
The Jan 1, 2023
balance during
current period
-- converted into
stage II
-- converted into
stage III
-- reversed into
stage II
-- reversed into
stage I
Created in
14,061,165.31 3,900.00 14,065,065.31
current period
Reversed in
current period
Charged off in
current period
Written off in
current period
Other changes
Balance on
December 31, 826,105,608.71 3,900.00 826,109,508.71
2023
Stage criteria and bad debt provision rate
Refer to Notes V “financial instruments” and “other receivables”.
Note on significant changes in book balances of other receivables for which their provisions were changed
in current period:
"□ Applicable" "√ Not applicable"
Provisions for bad debts and basis for determining significant increases in credit risks of financial
instruments for the current period:
"□ Applicable" "√ Not applicable"
(4). Provision for bad debts
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
285 / 293
2023 Annual Report
Change in current period
Charged
Opening Recovered Closing
Category off or Other
balance Provision or balance
written changes
reversed
off
Other
812,044,443.40 14,065,065.31 826,109,508.71
receivables
Total 812,044,443.40 14,065,065.31 826,109,508.71
Significant amounts recovered or reversed in current period:
"√ Not applicable"
(5). Other receivables written off in current period
"□ Applicable""√ Not applicable"
Significant receivable written off:
"□ Applicable""√ Not applicable"
Note on write-off of other receivables:
"□ Applicable" "√ Not applicable"
(6). Top five entities in other receivables at the end of the current period
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Percent in the
Provision for
total other
bad debts
Entity name Closing balance receivables at Payment type Age
Closing
the end of the
balance
period (%)
Current
Tongwei Solar Co., Within 1
8,367,099,268.10 24.01 accounts with
Ltd. year
related parties
Current
Tongwei Solar (Hefei) Within 1
4,880,332,119.06 14.01 accounts with
Co., Ltd. year
related parties
Current
Tongwei Solar Within 1
2,900,187,329.95 8.32 accounts with 385,466,105.50
Technology Co., Ltd. year
related parties
Sichuan Yongxiang Current
Within 1
Energy Technology 1,964,885,959.86 5.64 accounts with
year
Co., Ltd. related parties
Current
Tongwei Solar Within 1
1,765,490,520.62 5.07 accounts with
(Chengdu) Co., Ltd. year
related parties
Total 19,877,995,197.59 57.05 / / 385,466,105.50
(7). Items presented in other receivables due to centralized management of funds
"□ Applicable" "√ Not applicable"
Other notes:
"□ Applicable" "√ Not applicable"
286 / 293
2023 Annual Report
3. Long-term equity investments
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Investments into subsidiaries 26,489,713,286.52 232,045,368.55 26,257,667,917.97 21,201,717,905.80 126,454,000.00 21,075,263,905.80
Investments into associates
93,947,580.92 93,947,580.92 106,166,812.24 106,166,812.24
and joint ventures
Total 26,583,660,867.44 232,045,368.55 26,351,615,498.89 21,307,884,718.04 126,454,000.00 21,181,430,718.04
(1). Investments into subsidiaries
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Impairment Closing balance of
Investee Opening balance Current increase Current decrease Closing balance provision in current impairment
period provision
Zaozhuang Tongwei Feed Co., Ltd. 18,987,038.58 18,987,038.58
Nanning Tongwei Feed Co., Ltd. 28,978,368.63 28,978,368.63
Panzhihua Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Qianxi Tongwei Feed Co., Ltd. 30,000,000.00 30,000,000.00
Foshan Tongwei Feed Co., Ltd. 30,095,100.00 30,095,100.00
Tongwei (Dafeng) Feed Co., Ltd. 49,900,133.00 49,900,133.00
Fuzhou Tongwei William Feed Co., Ltd. 32,500,000.00 32,500,000.00
Ningxia Yinchuan Tongwei Feed Co.,
30,000,000.00 30,000,000.00
Ltd.
Chengdu Tongwei Aquaculture
19,245,867.39 5,000,000.00 24,245,867.39
Technology Co., Ltd.
Foshan Nanhai Tongwei Aquatic
10,000,000.00 10,000,000.00 3,940,000.00
Products Technology Co., Ltd.
Zibo Tongwei Food Co., Ltd. 70,736,000.00 70,736,000.00
Sichuan Tongguang Construction
20,000,000.00 20,000,000.00
Engineering Co., Ltd.
Nanjing Tongwei Aquaculture 170,000,000.00 40,000,000.00 210,000,000.00
287 / 293
2023 Annual Report
Technology Co., Ltd.
Chengdu Tongwei Aquatic Seed Co.,
17,000,000.00 1,000,000.00 18,000,000.00
Ltd.
Qingyuan Tongwei Feed Co., Ltd. 5,000,000.00 31,000,000.00 36,000,000.00
Tongwei Food Co., Ltd. 64,000,000.00 6,000,000.00 70,000,000.00
Yongxiang Co., Ltd. 8,687,060,739.07 3,933,000,000.00 12,620,060,739.07
Tongwei Solar (Hefei) Co., Ltd. 2,884,624,940.43 1,606,472,481.11 3,245,326,014.58 1,245,771,406.96 15,220,627.42 15,220,627.42
Tianmen Tongwei Aquaculture
25,939,300.00 25,939,300.00
Technology Co., Ltd.
Sichuan Fusion Link Co., Ltd. 1,200,000.00 1,200,000.00
Tongwei New Energy Co., Ltd. 4,055,911,940.76 34,939,300.00 4,090,851,240.76
Zhejiang Tongwei Solar Energy Co., Ltd. 8,000,000.00 8,000,000.00
Sichuan Chunyuan Ecological Farming
15,146,640.74 15,146,640.74
Co., Ltd.
Shenyang Tongwei Biotechnology Co.,
46,000,000.00 46,000,000.00
Ltd.
Tongwei Agriculture Development Co.,
4,463,391,837.20 500,000,000.00 4,963,391,837.20
Ltd.
Tongwei Solar Technology Co., Ltd. 100,000,000.00 100,000,000.00
Hefei Tongwei Biotechnology Co., Ltd. 38,000,000.00 38,000,000.00
Shaoxing Tongwei Biotechnology Co.,
50,000,000.00 50,000,000.00
Ltd.
Huanggang Tongwei Biotechnology Co.,
30,000,000.00 30,000,000.00
Ltd.
Changde Tongwei Biotechnology Co.,
20,000,000.00 20,000,000.00
Ltd.
Huizhou Tongwei Biotechnology Co.,
80,000,000.00 80,000,000.00
Ltd.
Nanchang Tongwei Feed Co., Ltd. 20,000,000.00 20,000,000.00
Chengdu Tongwei Biotechnology Co.,
60,000,000.00 60,000,000.00
Ltd.
Tongwei Solar Co., Ltd. 3,245,326,014.58 3,245,326,014.58 102,790,741.13 212,884,741.13
Chengdu Tongwei Fishery-PV
1,000,000.00 1,000,000.00
Technology Co., Ltd.
Total 21,201,717,905.80 9,403,737,795.69 4,115,742,414.97 26,489,713,286.52 118,011,368.55 232,045,368.55
288 / 293
2023 Annual Report
(2). Investments into associates and joint ventures
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Change in current period Closing
balance
Adjustment of Declared
Investment Opening Investment gain or Other Closing of
Additional Decreased other cash Impairment
Unit balance loss under equity changes Others balance impairm
investments investments comprehensive dividend or provision
method in equity ent
income profit
provision
I. Joint ventures
Maoming Tongwei Jiuding Feed Co., Ltd. 5,276,085.47 5,276,085.47
Sub-total 5,276,085.47 5,276,085.47
II. Associates
Bohai Aquaculture Co., Ltd. 100,890,726.77 -6,751,271.86 -191,873.99 93,947,580.92
Sub-total 100,890,726.77 -6,751,271.86 -191,873.99 93,947,580.92
Total 106,166,812.24 5,276,085.47 -6,751,271.86 -191,873.99 93,947,580.92
(3). Impairment test of long-term equity investments
"√Applicable" "□ Not applicable"
Net recoverable amount determined as the fair value less cost of disposal
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Recoverable Impairment How to determine fair value and cost of Key
Item Carrying value determining key
amount amount disposal parameters
parameters
Asset group relating to The fair value is determined based on
Estimated
goodwill of the investment market quotations while disposal costs Fair value and
412,965,577.37 4,554,500.00 15,220,600.00 according to
in Tongwei Solar - impaired are determined based on tax rate and disposal cost
quotations
after test quotations of the Company.
Total 412,965,577.37 4,554,500.00 15,220,600.00 / / /
The recoverable amount is determined by the present value of expected future cash flow
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Basis for
Years of
Recoverable Impairment Key parameters for Key parameters determining key
Item Carrying value forecast
amount amount forecast period for stable period parameters for
period
stable period
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2023 Annual Report
Asset group relating to
Profit margin: - Not applicable, Not applicable, the
goodwill of the
7.0% to 14.2%, the whole cycle whole cycle
investment in Tongwei 5,711,855,931.05 4,759,637,700.00 102,790,768.55 1.5-5
discount rate: covered by covered by forecast
Solar - impaired after
9.46% to 10.76% forecast period period
test
Total 5,711,855,931.05 4,759,637,700.00 102,790,768.55 / / / /
Reason for the significant discrepancy between the foregoing information and the information used in impairment tests in previous years or external information
"□ Applicable" "√ Not applicable"
Reason for the significant discrepancy between the information used in impairment tests in previous years and the information about the current year
"□ Applicable" "√ Not applicable"
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2023 Annual Report
4. Operating revenue and operating cost
(1). Operating revenue and operating cost
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Current amount Prior amount
Item
Revenue Cost Revenue Cost
Main operating
643,141,289.78 627,389,617.57 3,346,595,726.56 2,972,307,955.86
activities
Other operating
10,432,819.05 2,540,531.00 20,614,932.76 8,876,652.28
activities
Total 653,574,108.83 629,930,148.57 3,367,210,659.32 2,981,184,608.14
(2). Breakdown of operating revenue and operating cost
"□ Applicable" "√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
(3). Note on performance obligations
"□ Applicable" "√ Not applicable"
(4). Note on allocation to remaining performance obligations
"□ Applicable" "√ Not applicable"
(5). Material contract changes or material adjustments of transaction prices
"□ Applicable" "√ Not applicable"
5. Investment gain
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Current amount Prior amount
Long-term equity investment gains under cost
19,782,000,000.00 10,781,212,600.00
method
Gain on long-term equity investment under equity
-6,751,271.86 1,006,754.59
method
Gain on disposal of long-term equity investment -38,280,035.72 45,402,735.74
Investment gain on held-for-trading financial
assets in the holding period
Dividend income on other equity investments in
the holding period
Interest income on debt investments in the holding
period
Interest income on other debt investments in the
holding period
Gain on disposal of held-for-trading financial
assets
Investment gain on disposal of other equity
investments
Investment gain on disposal of debt investments
Investment gain on disposal of other debt
investments
Debt restructuring gain
Gain on wealth management products purchased
89,025,440.92 89,935,380.67
from banks
Discount interest on receivable financing -72,489,317.26 -111,156,141.57
Gain on forward exchange settlement (not meeting
132,795.99
hedging accounting and hedging ineffectiveness)
291 / 293
2023 Annual Report
Total 19,753,637,612.07 10,806,401,329.43
6. Others
"□ Applicable" "√ Not applicable"
XX. Additional information
1. Current non-recurring gains and losses
"√Applicable" "□ Not applicable"
Unit: Yuan Currency: CNY
Item Amount Remarks
Gain or loss on from disposal of non-current assets,
including the reversal of previously recognized 28,747,409.32
impairment loss provision for assets
Government grants included in current profit or loss,
but excluding government grants that are closely
related to the normal operating activities of the
163,223,026.68
Company, have a lasting impact on the Company's
profit or loss, and to which the Company is entitled
under national policies and regulations.
In addition to the effective hedging business related to
the normal operating activities of the Company, the fair
value gain and loss from held-for-trading financial
17,273,678.45
assets and liabilities held by a non-financial company
as well as gain or loss on the disposal of financial assets
and liabilities
Charges for money occupation levied on non-financial
institutions recognized in current profit or loss
Gain or loss on assets invested or managed by
commissioned parties
Gain or loss on outward entrusted loans
Various losses on assets arising from force majeure
factors such as natural disaster
Reversal of impairment provision for accounts
receivable subject to individual impairment test
The profit when the investment cost of acquiring
subsidiaries, associates, and joint ventures by a
company is less than the fair value of the identifiable
1,551,526.45
net assets acquired at the time of investment
acquisition, which the investing entity is entitled to
receive
Net profit or loss from the beginning of the reporting
period to the consolidation date generated by
subsidiaries resulting from business combinations
under common control
Profit or loss on non-monetary exchange of assets
Profit or loss from debt restructuring
One-time expenses arising from discontinued
operations, such as expenditures related to employee
resettlement
One-time effect on current profit or loss of adjustments
to taxation and accounting laws and regulations
One-time recognition of share-based payments due to
the cancellation or modification of share incentive
plans
Gain or loss on change in fair value of employee
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2023 Annual Report
benefits payable after the exercise date regarding cash-
settled share-based payments
Gain or loss from fair value change of investment
properties subsequently measured at fair value
Gains arising from transactions with prices
significantly different from fair value
Gain or loss from contingencies not relating to normal
operating activities of the Company
Custody income from entrusted operations
Non-operating revenue and expenses other than
-240,774,570.85
aforementioned items
Other non-recurring gain and loss items
Less: Effects of income tax 921,933.88
Effects of minority interest (after tax) 8,504,533.74
Total -39,405,397.57
Where the Company defines an item and the item has a significant amount not listed in the Explanatory
Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 -
Non-Recurring Gain and Loss Items as a recurring gain and loss item, or defines an item listed in
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the
Public No.1 - Non-Recurring Gain and Loss Items as a recurring gain and loss items item, notes should
be provided.
"□ Applicable""√ Not applicable"
Other notes
"□ Applicable" "√ Not applicable"
2. Net yield on assets and earnings per share
"√Applicable" "□ Not applicable"
Earnings per share
Weighted average
Profit in reporting period Basic earnings Diluted earnings
return on net assets (%)
per share per share
Net profit attributable to common
22.59 3.0151 2.8737
shareholders of the Company
Net profit excluding non-recurring
profits and losses attributable to
22.66 3.0239 2.8818
common shareholders of the
Company
3. Differences between accounting data under domestic and foreign accounting standards
"□ Applicable" "√ Not applicable"
4. Others
"□ Applicable" "√ Not applicable"
Chair: Liu Shuqi
Submission date: April 28, 2024
Revision
"□ Applicable" "√ Not applicable"
293 / 293
